Best Instrument to Handle Globalization
While the advent of globalization has made the going tougher for companies, the significance of Human Resource Management (HRM) is now felt higher than ever, as it has proven itself a valuable tool for the companies to maintain a competitive advantage. Humans are now considered as the social and intellectual capital and HR paves the way for companies to utilize these capitals for their benefit through various strategies.
Through the prism of HR, modern employees are seen as the critical element in a firm’s success and the companies have started believing the fact that “the key to a firm’s economic success can be attributed to the effective management of its human resources” (Huselid, 1995). This ambience has automatically extended the scope of research on human resource, because the effectiveness of HRM has a strong bearing on the organizational effectiveness (Dolan et al, 2001).
Accordingly, HRM has ramified itself into several theories and strategies; each time casting fresh looks on its tributaries like human behavior or social situations. Therefore, this essay explores “High-Performance Work System” (HPWS), a specific branch of HRM, along with theories of human behavior, besides weighing the efficacy of HPWS and reaching its conclusion. HPWS in Brief High Performance Work System, popularly known as HPWS is a specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility (Bohlander, 2004).
It is understood that systems composed of many interrelated parts that complement one another to reach the goals of an organization, large or small. As for example, System design consists of Work Flow HRM Practices Support Technology These are fed with Linkages to Strategy and Principles of High Involvement. Then the process is implemented and the outcome is observed in Organizational and in Employee levels. In short, this package of strategy aims “create an environment within an organization where the employee has greater involvement and responsibility” (Brown, 2006).
According to the researchers, this new avatar of HRM started shaping up in the late twentieth century “amid the crunch period of United States manufacturing environment”, when it felt the heat of global competition and realized the need of rejuvenating their manufacturing process (Barnes, 2001). Thus, much in the mold of ‘necessity is the mother of inventions’, HPWS came into being with a set of fresh practicality based on the nuances of human behavior. Underlying Principles of HPWS HPWS started with three pillars at the outset, like involvement, training and incentives?
before adding the fourth, support technology; to take off as a full fledged system. Components of HPWS The first important component of HPWS, “Involvement”, stems from the idea of providing the employees an “increased opportunity to participate in decisions” (Barnes, 2001). This becomes possible by sharing information among the members of the organization. Thus HPWS emphasizes on creating a culture of information sharing, where the employees would share the information for the greater interest of the company.
Second component, “Training”, is visibly a thrust towards developing the knowledge and skill on the subjects employees deal with. Here HPWS prefers a culture of ‘on-site’ or ‘real-time’ training rather than theoretical knowledge, where the employees would be encouraged to apply new approaches or ideas and to enrich the knowledge bank itself. HPWS identifies that the jobs requiring little knowledge and skill are declining and the jobs requiring special skills or knowledge are increasing. This situation demands a constant flow of learning among the employees and HPWS advocates for that.
The third component of HPWS is “Rewards” or “Incentives”. HPWS points at the importance of aligning the goals of the employees with the goal of the organization by utilizing the reward system. It prescribes to connect the rewards to performance to make both the company and the employee mutually benefited. The combination of the three in a free flowing manner creates an egalitarian work environment that eliminates the status and power differences, which in turn enhances collaboration and teamwork.Sample Essay of PapersOwl.com