Understanding the association between high performance work systems andorganisational performance

Abstract

Understanding the relationship between high performance work systems (HPWS) and organisational performance is becoming increasingly important to gain and sustain a competitive advantage. In the current challenging economic climate, organisations are facing major challenges to do more with less. Thus, the investments in resources such as people are increasingly under scrutiny to provide returns on investment. HPWS have been positively associated with organisational performance, but organisations are not reaping the full benefits of HPWS. Both managers as well as HR professionals can gain from a deeper understanding of HPWS and the link to organisational performance. The research investigated HPWS through the use of semi-structured interviews. The ten respondents were all highly experienced, senior HR professionals who provided valuable insights and opinions into the complex relationship between HPWS and organisational performance. The valuable insights and experiences, shared by the respondents, allowed for the development of a management model of the organisational factors that influence the effectiveness of HPWS. The results of the research could contribute to managers and HR professionals in contributing to the management of HPWS.