High-Performance Work Systems

What is a High-Performance Work System?

• It’s a strategic fit within a company’s business system, aligning various elements to maximize resource use and reach organizational goals.
• Combines people, technology, and structure to achieve organizational goals.
• Emphasizes a culture of high performance, where employees are engaged and HR practices facilitate high-performance.
• Differs from traditional practices where technology, structure, and HR are treated separately.

Elements of a High-Performance Work System

• Organizational goals are central.
• Information and reward systems support the goals.
• Organizational structure and task design align with the goals.
• Selection, training, and development of people are integral.
• Performance is the outcome of effectively managing these elements.

Outcomes of a High-Performance Work System

• It results in interesting jobs and satisfied, engaged workers.
• Absenteeism and turnover are low, leading to lower costs.
• Quality, customer satisfaction, sales, and profits are high.
• Innovation and knowledge sharing are promoted, boosting productivity.

HRM’s Contribution to High-Performance

• Job design involves creating appropriate, collaborative team-based roles.
• Recruitment and selection focus on attracting employees who thrive on creativity and knowledge sharing.
• Training, learning, and development include extensive team-building activities.
• Performance management emphasizes outcomes linked to customer needs.
• Compensation and rewards tie employee incentives to performance, with transparent financial information.
• Managing turnover involves addressing both involuntary and voluntary departures.
• Consistent and fair discipline is applied uniformly.

Employee Experience

• It’s employees' perceptions about their workplace interactions within the organization.
• HR plays a role in leading efforts to enhance employee experience.

Factors Linked to Positive Employee Experience

• Empowerment comes from giving employees responsibility and decision-making authority.
• Teamwork involves assigning work to groups with diverse skills.
• Knowledge sharing is fostered through a learning culture and continuous learning.
• Meaningful work connects roles and projects to worker values and offers opportunities to make a difference.
• ESG & ethics include integrating environmental, social, and governance factors and Ethical behavior.

Assessing Employee Experience

• Job satisfaction is evaluated through overall assessments and specific factors like supervision and pay
• Engagement measures the extent of an employee's involvement, including positive advocacy and dedication.
• Exit and stay interviews provide insights at different points in employment.
• The Net Promoter Score determines the likelihood of employees recommending their organization.

Measuring Employee Engagement

• Gallup’s 12 questions assess key employee expectations.
• These questions cover aspects from knowing job expectations to having a best friend at work.
• Employee expectations are aligned with the foundation of a strong feeling of engagement.

Employee Net Promoter Score (eNPS)

• It is calculated as the percentage of promoters minus the percentage of detractors.
• It’s detractors give a score from 0-6.
• Passives give a score between 7-8.
• Promoters give a score between 9-10.

Voluntary Turnover Rates

• Voluntary turnover rates apply only to regular employees.
• Numbers exclude early retirements and severances.
• In 2023, it’s reported at 8.4%.
• For 2024, the Q1+Q2+Q3 number for unionized employees is at 5.1%.
• For 2024, the Q1+Q2+Q3 number for non-unionized employees is at 3.9%.

Turnover Costs

• Involuntary and voluntary turnover share recruiting, selecting, and training costs.
• Both involve lost productivity costs.
• Involuntary turnover can lead to lawsuits and workplace violence.
• Voluntary turnover results in losing talented employees.

Principles of Justice

• Outcome Fairness: Consistent outcomes, knowledge of outcomes, and behaviours relative to outcomes.
• Procedural Justice: Consistent procedures, avoidance of bias, accurate information, way to correct mistakes, representation of all interests and ethical standards.
• Interactional Justice: Explanation of a decision, respectful treatment, consideration and empathy.

HRM Technologies

• Transaction processing and decision support systems are HRM applications.
• HR Information Systems (HRIS) include HR dashboards and E-HRM.
• Blockchain technology is used to enhance data security.
• Responsible AI development is implemented.

HRM Effectiveness and Impact

• HRM audit is used to do a formal review of the outcomes of HRM functions.
• It is based on identifying key HRM functions and associated metrics and measures relevant to organizational performance.
• HR impact refers to the beneficial effect on employees and the organization’s performance.

Competencies for HR Professionals

• Business competence
• Professional-technical knowledge
• Management of change processes
• Integration competencies

Responsibilities of the CHRO

• C-Suite Executive Partner is involved in growth, mergers, leadership transformation, crisis management, board governance, and executive strategy.
• Chief Operator of the HR Function designs HR, rewards, HR tech, and value-add programs to build skills and leadership.
• Chief Administrative Officer manages facilities security, labour relations, legal compliance, and often executive security.
• Chief Communication Officer acts as spokesperson on hiring, organizational changes, DEI, pay, and culture.