The question of whether the way people are managed and treated
at work contributes to the overall performance of the mterprise,
has bem much debated. The focus of this debate has tended to be
on formal processes and procedures within organisations. These
high performance working practices GPWPs) have bem the
zubject of a wide range of studies designed to test their impact
The literature has shown tliat such practices tend to be part and
parcel of an approach that emphasises high quality goods and
services, and mgaged and empowered workforces. Practices
studied indude those rdaed to training and skills, participatioO
empowerment, and cosrmunication and cornpensation. The
practices themselves are believed by some to be additive ie 'the
more the bettey' but by others to work more effectively in
combinatioru Some see these combinations as grouped into
coherent 'bundles' of practices eg practices that act together to
enhance eurployee skill or involvecrent, and others have
zuggested that practices need to 'fif with the business strategy of
the firm eg skill mhancernent practices are best considered in an
environmmt u/ith high skill derunds.
There is now considerable evidence across a wide range of studies
that adoption of these practices is associated with good business
performance. lnterpretation of the size of the effect is difficult as
di.fferent studies link different combinations of practices and
dilferent measures of perforrrance, but they zuggest that as much
as 20-40 per cent of productivity differences between firms may be
accounted for by differences in HR practices. Despite these strong
associations with perforrrancg estimates of uptake suggest that
less than a quarter of organisations adopt such practices to any
significant extent.
Discussions of impact suggest that HPWPs act to improve the selfconfidmce
and flexibility of the worKorce and contribute to
improved motivatiorl morale and commitment which in tum are
related to enhanced individual perforrrvmce.
High Performance Work Practlces
The question of whether the way people are managed and treated
at work contributes to the overall performance of the mterprise,
has bem much debated. The focus of this debate has tended to be
on formal processes and procedures within organisations. These
high performance working practices GPWPs) have bem the
zubject of a wide range of studies designed to test their impact
The literature has shown tliat such practices tend to be part and
parcel of an approach that emphasises high quality goods and
services, and mgaged and empowered workforces. Practices
studied indude those rdaed to training and skills, participatioO
empowerment, and cosrmunication and cornpensation. The
practices themselves are believed by some to be additive ie 'the
more the bettey' but by others to work more effectively in
combinatioru Some see these combinations as grouped into
coherent 'bundles' of practices eg practices that act together to
enhance eurployee skill or involvecrent, and others have
zuggested that practices need to 'fif with the business strategy of
the firm eg skill mhancernent practices are best considered in an
environmmt u/ith high skill derunds.
There is now considerable evidence across a wide range of studies
that adoption of these practices is associated with good business
performance. lnterpretation of the size of the effect is difficult as
di.fferent studies link different combinations of practices and
dilferent measures of perforrrance, but they zuggest that as much
as 20-40 per cent of productivity differences between firms may be
accounted for by differences in HR practices. Despite these strong
associations with perforrrancg estimates of uptake suggest that
less than a quarter of organisations adopt such practices to any
significant extent.
Discussions of impact suggest that HPWPs act to improve the selfconfidmce
and flexibility of the worKorce and contribute to
improved motivatiorl morale and commitment which in tum are
related to enhanced individual perforrrvmce.
High Performance Work Practlces
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