Human Resource Strategy

Human Resource Strategy
The Importance of High Performance Work
Bundles

© Louise Boyce. All rights reserved. 2
Throughout history there has been an interest in examining whether or not certain
practices could be implemented to improve organisational performance. These
procedures are known as ‘High Performance Work Practices’ (HPWPs). As a result
of the unstable economic environment, organisations no longer have the luxury of
wasting resources. The most expensive cost a business has is their workforce. Every
manager and employee needs to be properly allocate and developed in a way that
increase their production and performance rates. Once this has been done
organisations should become more effective and efficient (CIPD, 2005).
It is important to note the HPWPs will be somewhat different depending on the sector
and industry an organisation resides in. This is because businesses have realised
that implementing work systems are about what jobs need completed, who will
complete them and the correct way in which the task should be accomplished (Boxall
and Purcell, 2008). For example, a technology company such as Apple will have
slightly different work practices compared to a car manufacture. Simply because one
organisation encourages innovation while the other focuses on skilled manual
labour.
Numerous academics have created a list of management practices that could be
used as an aid for generating high performance within the workforce. These
practices have been gathered into three distinct bundles. The first, High Employee
Involvement. This group of practices move away from the traditional view that the
owner had all the control and instead encourages empowerment. They have been
designed in order to oppose F.W. Taylor’s scientific management theory that work
should be simplified and standardised. The belief is that should employees be seen
as a valued resource and developed then their organisational commitment and
performance should improve (Alison M. Konrad, 2006).
Achieving high employee involvement can be accomplished with the use of various
methods. For example managers sharing information with employees or at least
giving them the option to access it. At times there can be a conflict about what
information managers should share with their employees. This will all depend on the
organisations culture. If the company is transparent, open and honest then they will
most likely share a great deal of information with their employees.
By sharing information the employees are able to understand what is happening
within the company and potential solve any problems or identify possible issues. As
well as this, there is a greater chance of keeping key employees. If the most talented
employees feel unvalued then they are more to leave their employment. This creates
numerous problem for the organisation. For example they will have to recruit and
select an applicant to fill the vacancy this wastes time, money and slows down
productivity. Not only this, but the former employee could possibly take the
knowledge they have learnt about the organisation to a competitor. This may cause
serious damage to the business if there are not any confidentiality agreements in
place (Connelly and Kelloway, 2003).
However at times there could be information so sensitive that only a select few will
have access to it, most likely senior managers. Some information could potential

make the organisation a great deal of money or increase their market share. They
will not want this information exposed to their competitors.
Organisations will have to decide if they are willing to build an information rich culture
as it can be incredibly challenging to do so. However it helps develop trust between
the employee and the employer. This trust can develop into commitment and in
times of economic difficulty having employees that will ‘go the extra mile’ is incredibly
valuable (Connelly and Kelloway, 2003).
Now that we know sharing information helps employees feel valued and committed
we need to look at more practical examples of employee involvement. For example
self-directed work teams. Work teams are used by organisations to correct day to
day problems. In order for work teams to be successful they must have the power to
plan, control and improve basic level operations. What potentially makes these
teams successful is not only do they carry out the work they are created for but they
also manage it as well. A task that was previously completed by line managers. This
allows the line manager to focus their time on other matters, such as planning for the
future.
Those involved in work teams are normally highly talented employees. When their
skills and knowledge are combined together, they can achieve common goals and
could potentially make fundamental changes. However one of the most challenging
aspects of a self-directed work team is the fact that all members must agree on how
they want to work together. This is crucial because the team as a whole will be
responsible for any successes or failures (Wendy S. Becker, 2012).
Teams that operate this way normally feel a sense of ownership and the motivation
to make the project a success. As the team are personally invested in their project,
job satisfaction levels seems to increase and absenteeism should be reduced.
However it seems as though meaningful bonds need to be created within the team. If
this does not happen then the chances of failure will increase. Various studies have
shown that the employees will not work to the best of their ability if they are not
happy and comfortable with those they work with and their sounding environment.
Finally organisations can make use of quality circles as a method to increase
employee involvement. Quality circles originated from the Japanese high
performance work system called Kaizen. After the Second World War their economy
was heavily damaged and they needed help to restore it. Two Americans designed a
new management system that heavily focused on continuous improvement in all
areas of business. It was a revolutionary new practice at the time and was later
adopted by the rest of the world. One of the founders William Edwards Deming
believed that if you improved the quality of outputs, expenses would be reduced and
productivity would increase (Bhuiyan and Baghel, 2005).
Quality circles are a highly simplified version of work teams. They have no official
responsibility or power. However much like work teams their function is to solve
operational problems. Normally these groups are small and will be led by a
supervisor who then take any suggestions to senior management.

However quality circles are a way for employees to get additional training and
development. If they volunteer to be a part of the circle they will be trained on
problem solving methods and advised to use them for the benefit of the company.
This not only actively encourages employee involvement it makes the volunteer
more experience and employable, especially for further promotion.
There are however a number of issues involved in quality circles. One of the main
problems is the concern that they are not listened to and given the resources
needed, this will depend on the culture of the organisation. If the company is serious
about using and benefitting from quality circles then they will give their members as
much resources as they can afford. However in some businesses quality circles are
not being given the attention they deserve and the employee’s skills and
recommendations are being wasted. If this happens, then it could send a negative
message to those that volunteer their time to help the company and could result in
them becoming demotivated (Richard Ennals, 2014).
Employee involvement is only one of the bundles created to help improve
organisational performance. The next is creating suitable Human Recourse
practices.
It could be argued that Human Resources are the most valuable asset of any
organisation. As a result of having highly skilled and motivated employees
productivity and the company’s competitive advantage should increase. That is why
there are several practices that have been created to recruit, select and retain key
personnel. Every business can tailor these practices to their own individual needs
however the main concept will stay the same regardless on the size, sector or
industry a business is in.
The recruitment and selection process is very delicate. The entire process is used to
identify individuals that will fit well within the company and adapt to its culture. It is an
expensive practice and one that needs to be completed correctly, otherwise mangers
can spend a great deal of time and money trying to rectify any mistakes made (Sue
Newell, 2009).
It is no longer an option to just hire employees that have the necessary ‘hard’ skills.
Applicants need to demonstrate that they are able to affectively use their ‘soft’ skills
as well. This is because the workplace environment has changed and working
together to achieve organisational goals is common. However employees need to
have the ability to listen, communicate and resolve conflict in order for this to
happen.
To help ensure the right recruits are getting hired companies should follow
sophisticated selection techniques when considering who to hire. One method used
by companies is testing. There are various examinations employers can integrate
into the selection process. Each trial is designed to generate results on a certain
area. A recent CIPD survey claimed that more than half of the company’s questioned
used testing for specific skills and under half use testing for literacy and numeracy
(CIPD, 2013).

There are various online challenges that the applicant can take to make sure they
are right for the job. The first type of test is personality testing. This examination is
usually in the form of multiple choice questions based on a theoretical situation. It is
used to identify personality traits such as the candidate’s social ability (Stephen
Taylor, 2010). Personality testing may help eliminate unsuitable individuals in the
future and this in hope should stop managers hiring those that are not suitable for
the job. However organisations should approach this with caution. As the tests have
no set time limit it allows the candidate to think about their answer. This can make it
less likely that the answer they give will be a true reflection of what they think.
Finally organisations can use psychometric testing as a method for eliminating
unsuitable candidates. This is where the candidate’s innate skills are tested such as
manual dexterity, these test are used to assess a candidates potential to do the job.
This exercise is designed to assume that everyone has strengths and weaknesses
and that they are inclined to either succeed or fail depending on certain areas
(Stephen Taylor, 2010). However one of the main criticism of this technique is that it
predicts the applicant’s ability for success by analysis their experiences. This can
possibly reflect badly on those that have no prior work experience and those that can
improve their skill set over time if given the necessary support.
Testing applicants has become more common in organisations and for the most part
are successful. However the recruitment and selection process is only the first stage
in designing practices that can improve organisational efficiency. Employers and
mangers should make it their aim to monitor employee performance and intervene
when there is a need for improvement. Organisations normally use appraisals as a
method to achieve this aim.
Performance appraisals are meetings that occur between an employee and their
manager. During this meeting both parties will discuss any successes the employee
has had and if there is any room for further improvement. As well as this collectively
they will set realistic future goals that the employee understands and has agree too.
This is crucial as in most cases employees will not attempt to reach their goals if they
feel they cannot achieve or understand them.
However the appraisal process can be quite uncomfortable because of the personal
nature. The manger may have to let their subordinate know that they are
underperforming and the employee needs to take this constructive criticism and
improve their work standards. However if the meeting is conducted in a relaxed
atmosphere and informally then both parties will gradually become more comfortable
as the process continues. How organisation and managers approach appraisals are
vital because they want to improve organisational efficiency and performance without
demotivating employee that are not meeting standards (Gary E. Roberts, 2003).
There seems to be a common format to the appraisal system however organisations
can tailor it to their own individual needs. Normally prior to the appraisal the
employee will receive a form that should be completed. This form will ask the
employee to rate their performance and knowledge about their job and the company.
This is used as a tool for the employee to self-reflect and as an indicator for the
manager to see if the employee views align with their own.

During the meeting the manger can give their subordinate a chance to further
elaborate on the answers they have given in the form. This can help aid the manger
in understanding their employees view point. Afterwards the appraiser will give their
own views on the employee’s performance and will explain their reasoning behind
this. Ideally organisations want their workface to have an accurate understanding of
the knowledge they have and their overall performance. However this is not always
the case and the manager has to take action and implement changes such as further
training to help develop their employee.
Appraisals are very effective methods used by organisations to monitor employee
performance but the process also allows for contusions improvement. This is
essential in reducing the wastage of resources and helping organisations have
superior organisational performance. It should be noted that the job an employee
was hired for is not always one they are best suited for and in fact they are capable
of handling greater responsibility and workload (Gary E. Roberts, 2003).
For personnel like this, work redesign can benefit them greatly and in turn help the
organisation they work for. This can be achieved by companies introducing job
enlargement, job enrichment and job rotation practices. This process allows
employees to complete the tasks associated with their job as well as additional ones.
Not only this they can become responsible for making decisions, checking the quality
of their work and setting their own deadlines. This practice once again opposes F.W
Taylors view that employees where lazy and needed micro managed.
It has been proven that for some individuals greater responsibility increases their
motivation and job satisfaction. Herzberg was one of the first theorist to understand
this. He created the motivation-hygiene theory which claimed that company polices
such as pay plans were not enough to generate performance improvements. Other
factors such as recognition and responsibility needed to be included into work
practices as well (J. Richard Hackman, 1980).
In theory this sounds to be a remarkable opportunity for organisations. However if
employers and managers carry out job redesigns incorrectly then the employee with
potential can actually become demotivated. When considering if an employee’s job
should be altered, managers need to carefully consider what skills the employee has
and what tasks they are capable of achieving. If this is not the case then employees
may be allocated tasks they simply do not have the skills for. This will reflect badly
on their performance. One other worrying factor of this practice is that if the
employee’s workload is not properly allocated and is too heavy then their stress
levels may increase.
When employees have a large volume of work to be completed by a certain time
they often feel under pressure and overwhelmed. In order to complete the delegated
workload, employees will spend a lot of time concentrating on their work instead of
their own needs. In most cases if the employee has not completed their work then it
prevents others from doing theirs, this affects the effectiveness and efficiency of the
business.

Work redesign if implemented correctly can encourage employee to work to the best
of the ability but it can also have serious implication if completed incorrectly. It is
important that organisations that use this method for improving organisational
performance find the correct balance. They need to get the most out of their
employees and not overwork them (J. Richard Hackman, 1980).
Human resource practices are responsible for recruiting, retaining and developing an
organisations human capital. They are fundamental to a company’s survival. It is
important that employers look after the wellbeing of their employees and that is why
a third bundle of practices where create in order to improve organisational
superiority. These practices focus on rewarding commitment.
Rewards and commitment practices are commonly used and it is important they are.
It has been established that organisations want the employee to be committed.
However this process is a two way relationship and that is why organisational
normally have incentives used to reward employees that have high performance
rates and to try and limit the amount of turnover they have.
One way in which this can be achieved is introducing family friendly policies such as
flexible working hours. These practice are normally very effective for employees that
have young families. Most parents struggle to manage both the personal and
professional lives. These policy’s help the company retain their employees in such
circumstance. As well as this they can also reduce stress level as the employee
does not have to decide which is more important, their career or their family.
However the company’s productivity may reduce that is why normally they try to
divide the work load with another employee or hire someone to cover the remaining
hours. It is a complex practice however it is effective in trying to keep key personnel
(CIPD, 2005).
Finally company’s normally reward employees with financial rewards. Normally
employee that have met or exceeded their targets will be given a bonus form their
employer. This incentive works well with those that work as a sales representative or
those in the manufacturing industry. However there are certain jobs where this
technique may not be as effective. For example, a carpenter that hand makes
products such as beds or tables. Normally in these trades the employee will spend a
great deal of time in perfecting their creation. These employees work because they
have a great deal of satisfaction in creating and finishing the end product. Pride in
their work is a motivator and financial rewards such as bonuses do very little to
increase their commitment (CIPD, 2005).
For rewards systems to be effective employers need to know what motivates their
subordinates. While some employees are motivated by money or material
possessions not everyone is. Organisations that have created these system normally
used the industry is a benchmark and this should allow them to decided which
practice will be effective. However motivation is a personal concept and although as
a whole an industry might value financial rewards certain employees may not. In this
case it then becomes the manager’s responsibility to try and find suitable motivation
even if that is just praising employees on their work.

It is no longer acceptable for employees to be treated as robots that need to have
tasks simplified for them to understand. As we learn more about businesses and
their practices we realise that employees are a company’s greatest cost but also
their most valued asset. They are not just important because they help make the
product or are the ones interacting with customers they can be the key to help solve
organisational problems if given the chance. By successfully using the bundles
created employees should be more motivate, committed and working to the best of
their ability. However it should be noted that in order to implement and integrate
these practices a great deal of time, communication and steady leadership are
needed. Nevertheless is has been proven that these bundles do lead to superior
organisational performance and are necessary to help insure long term stability.

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