Improving Organisational Performance
Human capital and its elements have become one of the most powerful tool in improving organisational performance, excluding cost cutting, business modeling and etc., being the only high value-added investments for the owners. (Huselid and Becker 54) The authors name this phenomenon as the certain "terms of art", revealing the significant value in high-performance work systems and HRM itself. Thus, the way of doing business constantly depends on human resources management competencies that the company acquires and strives to keep sustainable as competitive advantage.
A brief analysis of the concept and components of HPW.
High-performance work practices is considered to be the mechanism for increasing the work efficiency, productivity and effectiveness and for raising general economic performance (Belt and Giles 1).
The concept of HPW is based on a holistic approach that involves a variety of business practices; some of those practices are inapplicable to all businesses (Mr. Mark Burridge, Drs. William Green, Sandra Nolte, Daniela Rudloff 1). It means that some certain elements regarding the methods of training, compensation or appraisal may differ.
Tamkin emphasis on “engaged and empowered workforces”, and on “high quality goods and services” as a result of HPW (12). He notes that these methods ascertain whether businesses “have the skills needed to innovate” and match the changing market improving their “productivity and profitability and retain their competitive advantage in the market” (12). The author states the fact of meeting employees’ needs as essential not only for organisations, but public agencies that are responsible for sustaining the market (Tamkin 12). Regarding to this assumption, employers and public agencies are to create favorable working condition and inspiring atmosphere for the employees for the sake of mutual prosperity.
“High performance working practices consist of new ways of organizing work, rewarding performance and involving employees in the decision-making process in the workplace. Some of these practices, such as job rotation, performance-related pay and self-directed work teams, have been around for a number of decades. Others, such as 360-degree appraisal and personal development plans, are relatively recent innovations.” (Ashton and Sung 1).
All above mentioned approaches totally oppose the traditional Taylorist forms of work organization in the way they perceive employees’ effect on performance process neglecting their skills and highlighting the specific methods of organizing the production “of standardized goods for a mass market”. (Ashton and Sung 73)
According to the report by the EEF/CIPD HPW practices make up four key types namely:
a) “employee autonomy and involvement in decision making”;
b) “support for employee performance”;
c) “rewards for performance”;
d) “sharing of knowledge and information” (8).
Therefore, these tools demonstrate employees engagement in all learning and performing activities at the workplace using collaborative leadership model in management. It is based on the variety of recruitment innovations (as psychometric tests usage), induction trainings and extensive training for experienced employees, regular appraisals and individual performance-related pay. In addition, they experience work improvement and problem-solving teams for raising team-building environment and declare constant communication of …
