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HIGH PERFORMANCE WORK SYSTEM AND EMPLOYEE PRODUCTIVITY OF MANUFACTURING FIRMS
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
The goal of this investigation is to appraise the Impact of High Performance Work System (HPWS) on organizational identity, job engagement, creativity, and employee voice and its impact on organizational and workforce performance. High-Performance Work Systems (HPWS) are perceived to create value for an organization by reducing costs, improving productivity, as well as creating value for employees. However, measuring improved organizational performance, particularly in regards to human resource improvement is difficult and much of the research developed around HPWS often varying and lacking HR enhancement (Zhang, Fan & Zhug, 2014). Currently, there is no consensus on a definition for HPWS; however, typical definitions include “a focus on investment in people, employee empowerment, good communication systems, performance management, fairness in setting pay, promotion on the lines of merit, job security, and low status differentials” (Demirbag, Collings, Tatoglu, Mellahi, & Wood, 2014, p. 326). Some recognized HPWS practices include “selfmanaged teams, continuing education, employee involvement in organizational strategy, team performancebased pay and paying higher salaries” (Kroon, Voorde, & Timmers, 2013). Finally, HPWS is often used to “describe a system of horizontally and vertically aligned employment practices designed to affect both the ability and the motivation of employees” (Patel, Messersmith, & Lepak, 2013, p. 1421).
1.2 Statement of the problem
Lack of high performance systems, in organizations, reduces responsiveness to change and creates barriers for improvement and creativity, communication, job engagement, proactive behavior and most importantly employee involvement in organizational strategy.
1.3 Objectives of the study
The following objectives are noted in this research:
1: To identify the relationship between HPWS and job engagement.
2: To identify the relationship between job engagement and creativity.
3: To recognize the relationship between job engagement and voice of the employees.
4: To correlate between job engagement and proactive behaviors.
5: To ascertain the relationship between organization, identification, and creativity.
6: To enhance the relationship between HPWS, organizational identification and proactive behavior regarding organizational needs.
1.4 Research Questions
The researcher will evaluate the questions below to obtain the objectives listed above:
1: Based on available literature, how can HPWS are best defined including reasonable examples of best-practices?
2: What is the mechanism between HPWS and employee outcomes?
3: What is the relationship between Job Engagement and Creativity?
4: Can HPWS improve employees’ initiative performance, such as creativity, voice, and proactive behavior.
1.5 Research Hypothesis
H0: There is no relationship between high performance work system and employee productivity
H1: There is a relationship between high performance work system and employee productivity
H0: High performance work system does not have a strong and significant positive impact on employee productivity
H1: High performance work system have a strong and significant positive impact on employee productivity
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