In the ever increasing globalization and the technological advancements, it is our need to improve the organizational processes & make them more efficient. To meet the future challenges of the growing businesses, it is necessary to ensure the growth & existence. As a result, the market begins to realize the importance of a high performance work system (HPWS). Market excellence can be achieved by maximising its revenue by reducing the waste or the probability of error; the conventional systems usually generates.
According to the Strategic Human Resources (SHRM) literature, the effective HPWS comprises highly integrated processes which can deliver the best performance or even the best outcome. In effective HPWS it is necessary that all the HR practices must be aligned with organizational objectives and strategies. Many researchers believe that to achieve competitive advantages, a firm’s HPWS plays a pivotal role. So a high-performance work system (HPWS) can be defined as a group of distinctive but unified human resource (HR) practices which are considered to improve employee’s services and strength.
During the period of 1990’s, attention shifted towards a high performance work system, and the concept of complementing a troop of HRM practices. In what was actually seen was a promptly emerging financial and governmental environment in the early 1990’s. Economical fairs of the important firms that projected quality, often resulted in market instability. Hence the creativity, problem-solving ability and ingenuity of employees gained more importance.
In the past two decades, the shift of process orientated HR to the bundle orientated HR practices was seen more common. In essence, they are asked to develop some strategic capabilities while at the same time managing it more effectively. Many Scholars have argued that in the current era of knowledge of economy, what is domineering for performance enhancement is relevant knowledge, skills and abilities, with the above competencies, competent leadership and proper management of the workforce.
Keeping in view with the above established facts, when an employee finds favourable environment they become keen to learn and perform at optimal level which ultimately enhances their job performance. Whereas the organizations where the employees' performance is not up to the mark or have a high conflict ratio; it was found that one of the prominent reasons was the lack of required attention paid to enhance their system and processes, which directly affected employee performance. As Bob Sutton says in his study, “The rule of crappy structure deciders the rule of crappy people.” Although HPWS that offers more participation of employees has an outsized impact on job satisfaction, on the other hand the systems which display proper infrastructure, desired training, provide job security brings out employee’s loyalty and ultimately enhances job satisfaction. By giving employees a sense of responsibility and ownership, job satisfaction is usually increased.
National Centre for partnership performance has published a book in 2008, named as, ‘New exemplary of high performance work system’ in that volume they clearly contended and proved that one of the most significant key roles for organizational success is the individuals.
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