The High Performance Work System
Every company must design a set of HR polices that make sense for its
own strategy and situation. The employee-testing program that works for hiring engi-
needs may not work for a retail store, for instance. And Ford Motor Corp. lost a pregi-
dent ( Jacques Nasser ) in part because he tried unsuccessfully to impose GE’s famous
“forced distribution” appraisal process on Ford’s managers. GE’s appraisal system didn’t
make sense for Ford.
However, research shows that the HR systems of high-performing companies do
have many things in common, and that they differ in measurable ways from those of
low-performing companies. Specifically, these HR systems are “ high-performance work
systems” (HPWS). HPWS generate more job applicants’ screen candidates more effect-
timely, provide more and better training, link pay more explicitly to performance, and
provide a safer work environment, among many other things. In terms of measurable
outcomes, these HPWS produce more qualified applicants per position, more employ-
ees hired based on validated selection tests, more hours of training for new employees,
and a higher percentage of employees receiving regular performance appraisals. The
general aim of the HPWS is to maximize the competencies and abilities of employees
throughout the organization. We will look more closely at the high-performing work
system in Chapter 3.