High –Performance work practices (HPWP) is a perspective which can hold that effective organizations incorporate several workplace practices that leverage the potential of human capital. According to John Tomer, the essential characteristics of HPWP are employee security, selective hiring of new personnel, self-managed teams and decentralization of decision making as basic principle of organization design, extensive training, reduced status distinctions and barriers across levels, and extensive sharing of financial and performance information throughout the organization.
There are five components of HPWP, which are self-managing work teams, employee involvement, integrated production technologies, organizational learning, and total quality management. Self-managing work teams are groups of employees that carry out interdependent work with high levels of autonomy and responsibilities. Employee involvement is the best practice used when low involvement or parallel involvement such as suggestion boxes, moderate involvement or participative management such as increased responsibilities for daily work decision, and high involvement or employee empowerment. Integrated production technologies are sets of tools used to enhance flexibility in production of services. Organizational learning is a practice that developed capabilities to adapt to their working environment and to gather information in order to anticipate future environmental change. Total quality management is a set of practices designed to make employees who assemble products or deliver services more responsible for the quality of those products and services.
The HPWP perspectives are starting with the idea that knowledge, skills and abilities which known as human capital that employees possess is a vital source of competitive benefit for an organizations (McShane, 2013). The opportunities or minimize threats in the external environment that will be realized by the organization with the help of