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“Do “High Performance Work Systems” Really Work?”

Critically assess the concept of “high performance work systems”

WORD COUNT: 2153

Critically assess the concept of “high performance work systems”

The relationship between employees and their managers is changing. This essay critically assesses high performance work systems (HPWS) and how it effects an organization. Before proceeding to critically assess high performance work systems it is necessary to clarify exactly what these systems consist of. After investigating the foundations of high performance work systems the essay will be extended to contrast the gains and the shortcomings, which arise as a result of these highly contemporary managerial systems. High performance work systems can be familiarly explained as an arrangement of human resource processes bunched together in order to increase a firm’s productivity and create an organizations’ competitive advantage. Whether or not these systems can create a sustainable competitive advantage is a vital question. This essay will also analyse external factors to validate their role in the success of these current work systems.

Firstly ‘high performance work systems’ can be analysed in terms of their contemporary entrance into the workplace. In order to evaluate the reasons for the introduction of high performance work systems, such as higher involvement (Lawler, 1992) and higher commitment (Arthur, 1992), it is important to recognize the previous system. Lawler (1992) suggests that over the past twenty years the ‘loyalty contract’ has been proved impractical and unattractive to the managerial world of today. This is a result of increased globalisation, technological advances and the massive increases in the requirement of more skilled workers. Lawler (1992) argues that it is important these days for managers to “utilize approaches to management that are advantageous to them and their employees and that lead to higher levels of performance and employee retention”, so that their employees do not look to...