Posted at 01.02.2019
Excellent staff it among the finest competitive advantages that hard to be imitated. Some organisation believe that personnel is the main element factor for an enterprise to achieve success or are unsuccessful and treat them because so many import assets of these company. These 'people-oriented' organisations possessed high loyalty personnel that has high degree of satisfaction is named 'high-commitment organizations'. While some companies that apply guidelines of technological management style, use methodical management to follow high efficiency.
This article uses evidence to illustrate the partnership between High Dedication Work Practices (HCWP) and company performance, and try to analysis why many UK companies like to keep up traditional management style by comparison HCWP and rules of scientific management.
Organisational performance refers to the actual productivity or results of organisation as assessed against its planned outputs (or goals and aims) (Wordiq, 2010).
'High Dedication Work Practices' is 'a term that gained currency in the 1990s that desired to web page link bundles of HR routines with effects in terms of increased worker commitment and performance which in turn boosts the firm's suffered competitive advantage, efficiency and success' (Ian et al. 2004). Edwards and Wright (2001) thought HCWP is that the organization kindly dealing with own member will promote staff work hard. Their satisfaction and dedication will be mobilized. Finally HCWP will improve the improvement of organisational performance.
On the basis of MacDuffie (1995) point of view, the human learning resource management practices system that can improve organizational performance, will need to have three elements:
Employees must have sufficient knowledge and skills;
Human resources management routines must have the ability to motivate staff to utilize knowledge and faucet skills;
Allow employees to help organizations achieve goals voluntarily.
According to Appelbaum (2000)'s 'AOM' Model, the framework of orgnisation performance is compose of worker ability, determination and opportunity to participate. Any organization want to improve their performance, should dwelling address themselves to the amelioration of above three elements. Therefore, the organization that has high company performance normally is rigid on recruitment and emphasizes training and development of staff in order to boost employee ability. The business cares about employee's vocational development and will to keep long-term romantic relationship with stuff, distributes according to contribution in order to motivate employee. In the meantime the organisation should have information communication shared mechanism and revise clubs' process timely to entice employee's participation. These is just the primary matter of HCWP.
For fine description, we apply the HCWP into an company and call the company as High Dedication Company (HCO).
In brief, the High Determination Organisation will pay much focus on 'common benefit', 'common cause' and 'complete relation'. 'Common advantage' means the initiative of employee that motivate by profit and material motivation. 'Common cause' means to motivate employee by promoting staff's Sense of quest, work dedication and value pursue. 'Broad relation' is the partnership of 'people to people' and 'people to businesses'. In comparison with traditional US organization (A) and traditional Japanese enterprise (J), we can see: (Desk 1)
Table 1: comparability of traditional All of us Organisation (A), High Commitment Company (HCO) and traditional Japanese Organisation (J)
(Source: South China Current economic climate, 2004)
As William Ouchi's stating, High Commitment Organisation is the merchandise of the mixture of American Organisation and Japanese Company.
In the column of common benefit, HCO bears the 'genes' of US's organisation, emphasizing the materials drive. Like American company, HCO bears out 'Performance Related Pay', performance examining system, goal management system, income sharing plan and worker share option ideas.
Relating to the normal cause, HCO has its own business culture; pieces forward prospect and short-term strategy and declare them on meetings and briefings, stocks honour and pity such as Japanese companies do. For instance, Sony's eye-sight is to market Japanese Culture and nationwide personal information; the Slogan of Lexus is "the relentless pursuit of perfection". They setup vision not only for the customers but also with their employees to rouse them to the sense of objective.
In the column of comprehensive relationship, HCO mainly inherits Japanese organization's gene, enhancing establishes comprehensively and equivalent friend relations between every people. HCO boosts the sense of owed by establishing golf clubs which encourage employee to talk to each other during the free time, rather than setting up the special car parking space and dining hall for the mature executive. In recent years lot of U. S. and European companies absorb Japanese business beliefs as well. Mrs. Hewlett, the better half of the creator of HP Company, will send the worker who is going to marry a gift and make a baby blanket for the every newborn of employees.
The research on the attribute of HCWP is meaningful as it could help people to learn how HCO success and study from it. By using a HCO as example to compare with American companies and Japanese companies, the feature of HCWP is posted in the following desk: (Desk 2)
Table 2: the attribute of different type organizations
Individual &Team Performance
This stand illustrates the following:
Business Culture: HCO has distinguishable 'personality' and actions, and stress it business culture that deeply affect their workers.
Common cause: HCO ideals vocational work very highly and snacks every employee as a friend but not the mercenary and machine of gaining money. Therefore, HCO models long-term potential customer, notifies personnel the brief and intermediate term strategy target and business performance to be able to bring all corporate and business participants mutually.
Comprehensive Connection: HCO advocates building thorough friendship between members not simply only the colleague relations or marriage between superior and subordinate. Every people in company are equal and respect to one another. The communication between customers is wide open and aboveboard.
Recruitment: the recruitment of HCO is dependant on the people's quality and aptitude. All of the staff is carefully selected from 3-4 time recruitment checks.
Employment: HCO provides job security to encourage the personnel to serve for long term for the company.
Leadership: HCO apply change leadership.
Training and Development: HCO significantly carries on the long-term investment to the staff. Staffs have complete training development program and termly training activities.
Promotion: when you can find job vacancy in HCO, the organisation will recruit from interior because HCO always wish to provide development chance to its employee. Besides, internal worker is more familiar with the Organisation.
Job Design: 1. both competition and co-operation are essential to encourage employees' enthusiasm and fervor. Too comfortable is adverse for development and too much competition may cause overpress. 2. For specific job, HCO wish to give the reins to its personnel and let staff make their decisions because of their own job. On the other handsHCO encourage staff to be a part of the collective decisions and activities.
Compensation Plan: in HCO, compensation of employees is decided by specific performance, team performance and organisation performance. In addition, HCO has employee share option intend to uphold staff to own the stock of organisation
Many scholars do a great deal of empirical research on the problem of HCWP and organizational performance. The following Stand 1 lists the primary research and relevant conclusions. (Stand 3)
Table 3: The researches on HCWP and company performance
Arthur(1994): Human source control mode review and commitment setting of Small flat iron and steel corporations survey
Performance measurement system;
Quantity of output
The different blend of plans and activities in individual resource can predict the performance and the turnover rate effectively. companies using HCWP system can get an increased productivity, lower small fraction defective and basic quantity of output
Lawler, Mohrman and Ledford (1995) three-time-range research on Lot of money 100.
Comprehensive quality control
Significant improvement in financial performance, integrity in HCWP system
Huselid (1995), 968 different North american Trading Company
Net sales per employee: earnings/market value
A statistically Significant improvement in online sales per staff and Organizational Performance
MacDuffie (1995): auto industries
Quality of output
The HR management practices innovation impact on the company successfully
Verma, Beatty, Schneier and Ulrich (1999): 39 different service company
Financial performance; Operation performance; Educational change in staff;
HR management tactics; Team development
Significant improvement in financial performance, no significant result in output
Berg (1999): Metallic Industry
Friendly romance between staff and management level increase personnel job satisfaction
Barnard and Rodgers(2000)
Stability of occupation; Manning level;
Development of staff;
Employee development and HCWP system have significant correlation
Guthrie (2000): 164 Singapore companies in various industries
HCWP, turnover rate and development rate positive correlation
(Source: Foreign Economics & Management, 2004)
The most influential study is the research on the personnel selection, personnel training and development and performance management's influence on company performance by Huselid and Becher (1996). The analysis discovered that, each increase of one standard deviation (SD) of HCWP system, each worker can increase $4, 000 dollars output value, which add up to $18, 000 dollars market value for the company on average. Inside the review on 968 U. S. commercial companies (Huselid, 1995), each increase of SD of HCWP system, every staff can increase $27, 044 dollars, which means 18, 641 us dollars for the organisation. In 2000, Barnard and Rodgers's analysis of 105 Singapore companies implies that staff development, like the development of performance evaluation, training inputs and organizational culture, were significantly related to HCWP. The conclusion of Arthur 1994's research is that People resource management procedures and activities can effectively predict performance and turnover rate; Powerful systems have higher productivity and lower scrap rates.
On the basis of above, it could be seen out of this that 'High determination' can incorporate effectively with organisation performance, the indications of HCWP have positive relationship with company performance, like the HCO's recruitment and worker ability, reimbursement and employee morale, employee human relationships and total performance are positive correlation. HCWP is effective in the improvement of the company performance.
UK's traditional management style is dependant on the ideas of clinical management. Through the midsection of the Eighteenth Century, European countries launched a great Industrial Revolution which had occurred in Britain first and promoted the introduction of capitalism. At that time, there are a few qualitative changes take place on the methods of production. The top machine industry got substituted the handicraft industry. Factories experienced more personnel and the division of labor is pronounced. In those days, business management was very backward, Orgnisation manage people is based on experience. Factories worked well long time hours with low efficiency, low wages, insufficient training of workers, labor relations strained, employers have no idea how to promote the labor efficiency. Labor productivity cannot reach the necessity of technology and technology degree of development at the time. Thus, the problem of how to effectively use technological advances to boost labor output became the extreme speculation. The problem also promoted the awareness of management attention. From this historical background, Taylor's Scientific Management made an appearance on the landscape to enhance production. The Scientific Management style has three features: methodical method of procedure; the parting of planning functions and executive functions; and the win-win between the company and employee
By long-time observing personnel in the working registered, Taylor found the reason of slack for work is that workers need to think for themselves the way to work and choice the task tools. But they have neither the time to take into account these issues nor the solution these problems. That's the reason workers "dawdle along" and out of efficiency. After repeated every work technique by himself, Taylor developed accurate methods and working procedures by removing unneeded wasting manpower and time. These methods greatly improved development efficiency, and promoted the introduction of production. The main points of clinical method of procedure are as following:
Selected the 'first-class employees' for the work. In Taylor seems, everyone has different gift ideas and skills, everyone can become a first-class personnel as long as the work is suited to him. After discovered, he considers that the key difference between people not wise, but the will. Some individuals suited for the job, while others are not suitable. First-class employees are hard staff and appropriate for their jobs. Therefore, workers in all industries ought to be the best suited for the job. Which is mirrored Taylor's "professional section of labor" ideology.
Implement the task quota system. Taylor feels in the old administrative system, neither personnel nor employers know evidently about how exactly much work an employee should do each day. The workload of the Staff, employers or professionals is determined empirically. That is lack of clinical basis. In his view, must determine the workload of the day for employees by scientific approach which is selecting appropriate and skilled personnel and do time research and motion review on them to be able to ascertain a "reasonable amount of work day. "
Development scientific ways of work. Using methodical solutions to make an acceptable match the of workers' operating methods, tools, labor hour and break time, while enhance the arrangements and businesses of machine and the operating environment By eliminate all unreasonable factors, the best mixture of factors would form a typical operating conditions. Only standardization is permit workers to utilize more effective tools and better ways of work, so as to achieve maximum productivity
Implementation of incentive wage system. It contains three parts:
Determine the "wage rate" by observation and research of labor hour.
Differential piece rate system: if the personnel meet or go beyond the quota, the work will be paid matching to a high wage rate as an encouragement; if staff did not meet production quotas, the worker will be paid at lower income rates, and given a yellow warning. The employee will be dismissed if she/he will not make better.
Pay remuneration on time. The remuneration must be granted immediately after the conclusion of the work. This production will be able to mobilize the enthusiasm of the personnel and to beat the happening of 'dawdle along'.
To cite a case, UPS uses 15 million people. There will be 9 million parcels have to be send across the USA and 180 countries every day. In order to achieve their purposes of 'the most efficient delivery in the postal industry', the managers of UPS use the work-hour research of Taylor's Scientific Management, and plan out a precise methods through research on and timing the delivery routes and the means of delivery. The rigid timetable seems rather cumbersome, but it brings a higher efficiency. Many experts of efficiency agree that, UPS is one of the most efficient companies on earth. To contrast with others, FedEx just choose and delivery 80 parcels per person per day, as the UPS transit 130 parcels per one each day. Accordingly, UPS will pay 18 dollars each hour to their rivers. In addition to the overtime income, a UPS deliver's average twelve-monthly income is more than 50, 000 U. S. us dollars. At the same time, management can gain high earnings as well.
In the traditions way, workers are responsible for all the development activities and do them regarding to their own practices and experiences. Individuals have to tolerate heavy responsibility when problems take place during the job. Taylor believes the issue should be fixed by using scientific methods. The method is to find standards, development of requirements, and product based on the standard. The technological management places a criterion through technological research and research, and practices the criteria. Split the planning functions and executive functions can organize individual people accountable for scheduling the work, and a professional people to implement those plans. Therefore, Taylor's system has professionals, event determination, professors, administrators and other responsibilities which the old system doesn't have. Through the practical distribution and inner communication, these new staff could promote efficiency and make an improved organisational performance.
Before Taylor's view, nearly every people think that under capitalist institutionthe romantic relationship between employers and employees is 'zero-sum game'. Their eye give attention to how to 'divide the cake'. However this small 'cake' could meet neither employers nor employees. Taylor propose a fresh romance between employers and employees which is often a "non-zero-sum game'. The management should ensure a higher degree of prosperity both to workers and employers. This view leads people to look from. "how to split the cake "to" how to make a bigger wedding cake", created by the hostile relationships between employers and employees into relationship, the change in labor relationships also promote production.
However, Taylor's clinical management increasingly shows some constraints after prevailed for two decades as weight reduction but neglect of individuals management.
The limits of medical management are that Taylor's view of staff is wrong. He is convinced that the main motive for the workers is the market. The personnel most concerned about is their income and exactly how to boost it, which stick to the 'economical man' hypothesis; Taylor's scientific management only concentrate on technological factors and does not add importance to sociable group factors. Taylor system" only solves the precise work of specific operating efficiency, but not how to solve the problem of how to manage and operator an enterprise as a whole orgnisation.
Due to Taylor's concept of technological management is recognized as insufficient impersonality, many modern managers make some advancements when they apply this theory into their organisation. Taking care of of the improvement is approximately job design.
Job design has two targets to meet: first is to meet the efficiency and quality objectives; the second is to make work safe, revitalizing and enabling personnel' satisfaction. Through the good job design can make people happy at the job, decreased tiredness and improve sense of self-realization. It'll be helpful to the overall goal of the enterprise. Through job design, can reach the purpose of improve productivity and quality improvement, lowering costs and shorten development cycle.
In traditional, when production and businesses management consider the impact on productivity relate to the human being factor, the primary concern is the operator's working environment, such as place of work layout, lighting intensity, ventilation, heat range, color and other areas of workplace factors but pay less attention to the mental health needs. Based on the cultural development and monetary development, after handling the basic survival issues, people increasingly emphasis on mental health needs. Tedious assembly-line employees are getting tired of the precise designed move of work. After the study, people discovered that a person repeated in a unitary work would make him loss of eagerness for work. To be able to maintain the eagerness of people, operator should changing job content and increase the attractiveness consistently Therefore, the present day production and functions management places great focus on the variety of work, enrichment of job content, using job rotation to keep staff's interest and enthusiasm for work.
Managers using Job enhancement, Job enrichment and job rotation to satiate people's subconscious demands. Job enlargement is the horizontal enlargement of the work, which widened the range of work or field in order to boost the content of the task and steer clear of the staff boring on the regime, repetitive work. Job enrichment Job enrichment refers to the vertical extension of the task, aiming at increasing employees' in participation in the task plan, decision making, process control and even the analysis of the content of bonuses to provide workers a feeling of achievement, responsibility and popularity. Job rotation means that staff is regularly rotated from one job to some other so that different employees have a better understanding of work. Meanwhile Job rotation can bring the feeling of freshness to workers so can ensure people's job passion.
As discussed earlier, HCWP is a HR management style predicated on determination, aiming at improving the employers' knowing of common traditions with staff, and accumulating the long-term romance and commitment. HCWP highly give attention to the staff development. It usually has many human being resource management tactics, like stringent recruitment process, many likelihood of internal development, vast selection of training programs, incentive pay system, the overall work security and self-managed work groups. The basic principle of medical management is control established, interacting with the needs of development mainly through the external labor market. They rarely educate even not training the existing staff.
Nonetheless, even though the HCWP can promote the company performance and competitiveness, traditional management style still using in many companies in the united kingdom. This may due to different view the have. Traditional HR function, when viewed as a cost centre, give attention to transactions, tactics and conformity; when this is replaced by a tactical HRM system it is viewed as an investment and concentrate on developing and maintaining a firm's proper infrastructure (Becker et al. , 1997). Since the industrial trend, Britain began to use the principles of methodical management. Comparatively speaking, HCWP developed lately. In another term, the effective of this method is not fully apparent. Many firms concerned about investing in reform cannot reach the objectives; even damage the existing right of management. Furthermore, changing the HR model has an extremely high cost, especially the HCWP using high security strategy, emphasizes workplace development, training and prizes, all of these would need a major expense. In the circumstance of financial meltdown and economic recession these days, it is the costs can be kept.
After comparability and research, this article indicates that HCWP can promote production, output per capita and sales so as to improve the organisation performance. However, many UK companies still prefer the traditional management style. The possible reason would be that the managers of this firm matter about the high costs of the HR reform and its degree of performance.
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