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Strategic Human Resource Management

Contents

Introduction.

The rationale of the study.

Components of HPWS.

Extensive training and development

Variable pay and compensation.

Work-life balance program..

Decentralized decision making.

HPWS and its organizational significance.

Employee motivation for reduced absenteeism and turnover

Improved performance for competitive advantage.

HR Theories and Practice.

Maslow’s Hierarchy of Needs Theory.

Kurt Lewin’s Theory for Change.

Expected Outcomes.

Reduced Turnover

Internal and External Equity.

Increased Quality Standards.

Conclusion.

Recommendations.

References.

Introduction to HR Consultancy Proposal

According to Muduli et al. (2016), High Performance Work System (HPWS) as a principle and their implication in the organizational practice has an elemental effect in developing the organizational alignment in such a way to enhance the value-creation and superior working and performance criteria in the organizational context leading to maintenance of competitive edge within the industry.

High Performance Work System (HPWS) can be defined as a group of separate but interconnected practices usually related to human resource management that are employed in a workplace to enhance employee effectiveness and hence organizational performance as well (Tang et al., 2017).

The research elaborated identifies four key components namely extensive employee training and development, variable pay and compensation, work-life balance programs, and decentralization of decision-making in the High Performance Work System (HPWS) and their utility in the organizational effectiveness.

The rationale of the study

The study based on the concept of HPWS is purposed at propounding the HPWS components in relevance to its utilization and adoption at Health Reach and their outcomes predicted by inheritance of human resource theories and practices in the process development.

Components of HPWS

High Performance Work System (HPWS) can be achievable and targeted in any business premise, organization, and a workplace where a keen focus has been on the management and maintenance of efficient human resource and conditions of work. For the sake of the creation of employee sustainability, the research proposed identifies the following four key components in the catalysis of HPWS.

Extensive Training and Development

Training and development program in an organizational boundary for the enhancement of the high performance work system has a higher efficacy for the employee development and engagement that can further help in organizational success. Good skills training and development programs assist in the retention of the right kind of human resource to the right growth of operations in the business frames (Heffernan & Dundon, 2016).

Incorporation of employee skills training and development can assist in the HPWS program by enhancement of employee performance capabilities, the potential to addressing the weaknesses by use of trained skills, developing consistency in the workflows, and many more.

Variable Pay and Compensation

According to Diez (2017), pay and compensation acts as the vital player in the role of high performance work system (HPWS) and it approaches as a win-win work topology for both employers and employees as they have numerous benefits for both the entities. 

Fixed pay or part of the compensation is represented as the basic compensational receipt by the employer whereas the variable part of the pay has a higher linkage with the motivational and linking of employees with the organization.

Henceforth Health Reach must focus on the provision of an adequate and regular variable pay that constitutes distinct benefits for employee acts as the vital force in the formulation of high performance work system.

Work-Life Balance Program

In the current scenario of multilateralism and globalized workforce practice, work-life balance has been one of the most demanded workplace attributes for the concern of maintaining harmony and psychological stability in both the arenas of personal and professionalism (Andersen & Andersen, 2019).

The research study takes int consideration the concept of work-life balance as a component in the access of HPWS at Health Reach for effective employee attraction and retention as a result of balanced work-life ratios as each performer serviceable in any organization or workplace at each corner of the globe finds the need for having an equilibrium between the personal and professionalism for the effective and quality of life and success at both the areas.

Decentralized Decision Making

L’Influence et al. (2020) has stated that decentralization in the organizational processes refers to the form of organization where the top management delegates a few authorities among the subordinates. Decentralization of the decision-making process, in the alike ways, can assist in the high performance work system nurture in the Health Reach organization as it can serve the fruitful aspects like increased collaboration among teams and employees, ease of accessibility, decreased interpersonal dependency, and a lot.

HPWS and its Organizational Significance

Competent personnel and workforce are central to the deliverance of a high-quality outcome of the business practice, particularly in the healthcare industry, the target of the research study. Henceforth, employment of high performance work system (HPWS) has been proposed to be enforced in the HealthReach Community Health Center to construct well-qualified employee conduct and improved functioning within in following mentioned ways.

Employee Motivation for Reduced Absenteeism and Turnover

The institution of high performance work systems in the HealthReach center by the composition of the four key points can affect the behavioral and motivational aspects of human resources under the focus and may elevate their commitment levels within. By use of effective training and development, improved work-life balancing, delegating employees to decision making, etc. may lead the employees at HealthReach to grasp the sense of belongingness and identity in the organization that may elevate it to serve in a highly engaging and productive way leading to increased commitment, eventually assisting the framing of the workplace and interpersonal harmony (de Reuver et al., 2019).

Improved Performance for Competitive Advantage

Driving competitive advantage through the achievement of employee engagement and commitment of human resources at the workplace which is eventually the results-driven byways of employee development activities like training and development, increased compensational advantages, and a balanced work-life relation, and power of decision-making in the hands of the employees (Prince, 2019). HealthReach Community Health Center must inherit the effective components of a high performance work system (HPWS) to seek for the achievement of a competitive position in the industry. 

HR Theories and Practice

Certain human resource management theories and principles have been propounded by renowned leaders and managers that have paced up the platform of the fundamental human resource practices that can be actionable in the industries for betterment purposes (Procter, 2016). The research proposed seeks the incorporation of the following theories in practice at the HealthReach Community Health Center.

  • Maslow Hierarchy of Needs Theory of Employee Understandability and management
  • Kurt Lewin 3-Step Change Model for managing the changes for HPWS in the HealthReach Center.

Maslow’s Hierarchy of Needs Theory

The research proposed for the establishment of HPWS practices seems to induce in the Maslow Hierarchical Theory of Needs that demonstrates the fundamental understanding of the human resources needs and their fulfillment in the workplace for personal and professional development leading to workplace flourishment (Fallatah & Syed, 2018).

The basic level of needs i.e. physiological needs represents basic survival needs such as shelter, salary or pay, and basic employment for ease of survival.

Followed by the security needs, the employees and human resources seek to obtain a stable environment with benefits, safety, and hygiene at the workplace, etc. for the social and emotional connection with the place of work.

Needs of belongingness and love, being the third level of needs at the organization relates to social acceptance of employees and human resources by way of a friendly work environment, cooperative interrelations, and so on that upsurges the employee connectivity in the organization.

The next level of the needs hierarchy is the self-esteem needs that come from a sense of respect and recognition in the job in form of positive self-image, prestigious job assignment, rewards, recognition, etc.

Finally, the self-actualization needs as the most supreme needs of employee that dictates the involvement of workplace autonomy, status on the job, career succession opportunities, and many more.

HealthReach, for the sake of overall achievement of the proposed HPWS activities, must intake the Maslow Hierarchy of Needs theory for routine determination of the success and stepwise implementation of activities for the positive outcomes.

Kurt Lewin’s Theory for Change

 Kurt Lewin’s propounded model of change is a management model inclusive of three-stage of change management in the organization viz. unfreezing, changing, and refreezing. Much has been stated by Kaufman et al., (2019).

The initial step of unfreezing provides the rationale for change regarding what needs to be changed, its vitality and importance, and managing the process of change. For instance, the implication of HPWS at HealthReach involves the identification of the need for a change of HPWS as the unfreezing stage of change management (Desmond & Wilson, 2019).

Followed by the process of changing, the second stage involves the implementation of change by making actual shifts in the pattern and suspected proposed change requirements. In the HealthReach, the changing process could be the process of communicating the HPWS implication and management by way of components discussed.

Lastly, the process of refreezing anchors the changes made into the culture that acts as a way to sustain the change in the further duration by the implementation of new systems and policies for the control, conduct, and monitoring of the process of change and its reactive phases.

Expected Outcomes

To inhibit the high performance work system (HPWS) within the HealthReach Community Health Center’s human resource management practices can result in radical attainment of outcomes for the organization that can positively serve the organizational capacitance and hence leads it towards the competitive advantage in the healthcare industry.

The HealthReach organization seeks to achieve the following outcomes by the execution of high performance working system (HPWS).

Reduced Turnover

As supported by White & Bryson (2018), the enhanced employee focus and entertainment in the HealthReach Community Health Center seems to aid the employee management and motivation in the organizational system that is expected to provide the outcomes by way of reduced absenteeism and employee turnover in the center. This may lead to enhanced employee attraction and retention activities in the healthcare organization HealthReach.

Internal and External Equity

The provision of the adequate and most prompt structure of compensation to employees inclusive of a systematic variable pay and benefits may leverage the prospective outcomes and gains from the change process proposed (Mardiana, 2012). The execution of HPWS can benefit the organization in the management and maintenance of internal as well as external equity of compensation and pay, leading to a higher rate of retention for sake of enjoyment of well-structured compensation benefits.

Increased Quality Standards

Hong et al. (2017) has elaborated that keeping employees engaged and a team connected within the organization results in the higher and elevated quality standards in the areas of performance, management, productivity, and all other that are relatable in the context.

Conclusion on HR Consultancy Proposal

It can be concluded that the High Performance Work System (HPWS) can perform as a quality change in the practice of the HealthReach Community Health Center management and performance as proposed.

Keeping in focus, the employee skill training and development, providing employees with variable pays and compensational benefits, low workload and balance of work-life situation for employees, and authority for self- decision making, etc. acts as the variables involved in the process of organizational change towards HPWS for the achievement of competitive edge by catalysis of employee significant factors like motivation, commitment, reduced absenteeism, and performance improvement.

Recommendations

In addition to the proposed plan, the execution of high performance working system (HPWS) in view and control of management theories and principles like Maslow Hierarchy of Needs and Kurt Lewin model for change can serve as an evident product of the guidance to this change process.

References for HR Consultancy Proposal

Andersén, J., & Andersén, A. (2019). Are high-performance work systems (HPWS) appreciated by everyone? The role of management position and gender on the relationship between HPWS and affective commitment. Employee Relations: The International Journal, 41(5), 1046-1064. https://doi.org/10.1108/ER-03-2018-0080.

de Reuver, R., Van de Voorde, K., & Kilroy, S. (2019). When do bundles of high performance work systems reduce employee absenteeism? The moderating role of workload. The International Journal of Human Resource Management, 1-21. https://doi.org/10.1080/09585192.2019.1616594.

Desmond, J., & Wilson, F. (2019). Democracy and worker representation in the management of change: Lessons from Kurt Lewin and the Harwood studies. human relations72(11), 1805-1830. https://doi.org/10.1177%2F0018726718812168.

Diez, F. A. (2017). Pay for performance: What type of pay scheme is best for achieving business results? Dissertations and Theses Collection, 1-69. Retrieved from: https://link.library.smu.edu.sg/etd_coll_all/38.

Fallatah, R. H. M., & Syed, J. (2018). A critical review of Maslow’s hierarchy of needs. Employee Motivation in Saudi Arabia (pp. 19-59). Palgrave Macmillan, Cham.

Heffernan, M., & Dundon, T. (2016). Cross‐level effects of high‐performance work systems (HPWS) and employee well‐being: the mediating effect of organizational justice. Human Resource Management Journal26(2), 211-231. https://doi.org/10.1111/1748-8583.12095. 

Hong, Y., Jiang, Y., Liao, H., & Sturman, M. C. (2017). High performance work systems for service quality: Boundary conditions and influence processes. Human Resource Management56(5), 747-767. https://doi.org/10.1002/hrm.21801.

Kaufman, Bruce E., Michael Barry, Adrian Wilkinson, and Rafael Gomez. "Alternative balanced scorecards built from paradigm models in strategic HRM and employment/industrial relations and used to measure the state of employment relations and HR system performance across US workplaces." Human Resource Management Journal (2020). https://doi.org/10.1111/1748-8583.12271.

L’Influence, D. S. S. T., Alami, H., Chakor, A., & Lhalloubi, J. (2020). The influence of high performance work system (HPWS) on the individual performance of boundary spanners within traded companies in Morocco. Revue Internationale du Marketing et Management Strategique, 2(2), 23. https://doi.org/10.5281/zenodo.3873507.

Mardiana, T. (2012). The relationship pattern of high performance work system (HPWS), people equity, and intention to turnover. International Journal of Research in Management & Technology (IJRMT), 2(4).

Muduli, A., Verma, S., & Datta, S. K. (2016). High performance work system in India: Examining the role of employee engagement. Journal of Asia-Pacific Business17(2), 130-150. https://doi.org/10.1080/10599231.2016.1166021.

Prince, N. R. (2019). Competition, market commonality, and resource similarity: precursors to HPWS. Personnel Review, 48(7), 1830-1847. https://doi.org/10.1108/PR-09-2018-0356.

Procter, S. (2016). High-performance work systems. Encyclopedia of Human Resource Management. Edward Elgar Publishing Limited. https://doi.org/10.1007/978-3-319-67741-5_2.

Tang, G., Yu, B., Cooke, F. L., & Chen, Y. (2017). High-performance work system and employee creativity. Personnel Review, 46(7), 1318-1334. https://doi.org/10.1108/PR-09-2016-0235.

White, M. R., & Bryson, A. (2018). HPWS in the Public Sector: Are There Mutual Gains?. IZA Institue of Labor Economics. Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3301719.

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