How High-Performance Work Systems (HPWS) Related to Employee Productivity within an Organisational Context?

Abstract

High-performance work systems (HPWS) is a set of management practices that seek to create an environment that fosters greater employee responsibility and involvement. However, there is little understanding of how HPWS is related to employee productivity within an organisational context. Moreover, arguments were made in with regard the best tactic to HPWS practices, were some scholars proposed a universal 'best practice' approach to HPWS, whereas others argued for a contingency approach to HPWS that aligned HPWS practices with the organisational context and strategies. By conducting a systemic review of the current HPWS literature, this study was able to evaluate multilevel mediation relationships between HPWS and employee productivity in specific service and size contexts. Mainly, the study focused on firms from small-size to large-size in the private and public sectors. The results demonstrated that HPWS could positively impact a variety of employee outcomes as well as overall organisational performance similarly in the public and private sectors, and businesses could, therefore, benefit from introducing HPWS practices in their workplace. However, the strength of the relationship between HPWS and these mediators differed according to an organisation's sector, size and specific HPWS practices. Thus, the business's organisational structure can shape the effects of HPWS practices. The overall findings of our study argue against 'best practice' approach to HR practices and the assumption that HPWS is a monolith with universal effects, and instead suggest that HR and management departments should adopt a contingency approach in order to optimise and maximise HPWS outcomes.