Crafting an Organization’s success through a high-performance work system.

In today's competitive landscape, organizations are continually seeking practices to improve productivity, effectiveness, and overall performance, One effective approach is the development of a high-performance work system(HPWS). This system not only maximizes respective employee potential but similarly aligns organizational objectives with employee expertise and motivations. In this blog post, we'll explore into the important elements and strategies for developing an effective HPWS that drives success.

Is Implementing a High-Performance Work System Essential for Organizational Success?

The approach to the development of a high-performance work system is based on an understanding of what the goals are and how people can contribute to their achievement and assessing what type of performance culture is required as a basis for developing a high-performance work system.

A strategic review systematically assesses strategy requirements in the light of an analysis of present and future business and people needs. It answers:

•         Where are we now?         
•         Where do we want to be?
•         How are we getting there?
  
  
  

1.      Analyze the business strategy.

Need to find answers to the questions to analyze the business strategy.

•         What is the business strategy?
•       What are the strengths and weaknesses?
•       What threats and opportunities does the business face?
•       What are the implications of the above on the type of people required by the business, now and in the future?

2.      Define the desired performance culture of the business and the objectives of the exercise.
Use the list of characteristics and produce a list that is aligned to the culture and context of the business and a statement of the objectives of developing HPWS.

3.      Analyze the existing arrangements.

•       What is happening now in the form of practices, attitudes, and behaviors (what do you want people to do differently)
•          What should be happening?
•         What do people feel about it?

4.      Identify gaps between what is and what should be.

5.      Draw up a list of practices that need to be introduced or improved.

6.      Establish complementarities- identify the practices that can be linked to complement and support one another.

7.      Assess practicality- the idea list of practices or bundles of practices should be subjected to a reality check.

•         Is it worth doing? What contributions will it make to supporting the achievement of the strategic goals?
•         Can it be done?
•         Who does it?
•         Do we have the resources to do it?
•         How do we manage the change?

8.      Prioritize- priorities should be established by assessing.

•         Added value and the practice it will create.
•         Resource availability.
•         Anticipated problems.

9.      Define project objectives- develop the broad statements of objectives produced at stage 2 and define what is to be achieved and how.

10.  Get buy-in from top to bottom.

11.  Plan the implementation- it should cover.

•          Who takes the lead?
•          Who manages the project and who will be involved?
•          The timetable for development and introduction
•          Resources allocation
•          Communication

12.  Implement- 80% of time should be spent on implementation & 20% on planning with change management skills.

Watch and explore the elements of HPWS

Elements of a High-Performance Work System- Obenauer, W. (2020)

Conclusion

Developing a high-performance work system requires a systematic approach that involves analyzing the business strategy, defining the desired performance culture, analyzing existing arrangements, identifying gaps, drawing up a list of practices, establishing complementarities, assessing practicality, prioritizing, defining project objectives, getting buy-in, planning the implementation, and implementing with a focus on change management skills. This approach helps organizations align their human resource practices with their strategic goals and create a work environment that enables employees to perform at their best. By adopting a high-performance work system, organizations can improve productivity, innovation, customer satisfaction, and employee engagement, leading to sustainable competitive advantage.

Reference

•        Pavlova, O., 2022. The Impact of Innovative Human Resources Management Practices on Employee Behavior. Vilnius University Open Series, pp.57-63.
•          Almutawa, Z., Muenjohn, N., & Zhang, J. (2016). The effect of human resource management system on employees’ commitment: The mediating role of the AMO model. The Journal of Developing Areas, 50(6), 17-29. https://doi.org/10.1353/jda.2016.0147
•           Obenauer, W. (2020). Elements of a High-Performance Work System.[online] Available at: https://www.youtube.com/watch?v=olyhdr6z6sM.
•           Amstrong, M. (2009). A handbook of strategic Human Resource Management. (5th edition – p. 162- 166)
•       High Performance Work Systems. (2017).[ online]. Available at: https://www.youtube.com/watch?v=C-n3hyz-sSY.

The Integral Role of HR in Organizational Performance

 The Integral Role of HR in Organizational Performance

Let us discuss the SHRM's impact on organizational performance. 

Strategic Human Resource Management (SHRM) significantly impacts organizational performance by aligning HR practices with strategic goals. By initiating effective recruitment, training, and retention strategies, SHRM ensures that the right talent is in place to drive business objectives forward. Furthermore, SHRM plays a pivotal part in fostering a positive work culture, enhancing employee engagement, and promoting innovation and productivity. By strategically overseeing human capital, SHRM helps organizations shape changing market dynamics, maintain competitiveness, and win sustainable growth.

Watch this interesting video... Find out how to effectively leverage Performance Management within the organization. 👇👇👇

Guest et al (2000) Modelled the relationship between HRM and performance as shown. Although there are various stakeholders in an organization, the chief strategic goal of any business is higher financial performance or maximization of wealth for the shareholders. The performance of an organization depends to a large extent on effective operational performance. The operational performance of an organization is a function of people, processes, and technology. For effective interaction of people with technology and processes, the people in the organization must be competent enough, with the required knowledge, skills, and abilities. The competence of the individual is an important factor that decides operational effectiveness in terms of providing quality products and services within a short time. HRM practices such as selection, training, work environment, and performance appraisal may enhance the competence of employees for higher performance (Caliskan,2010).

Model of a link between HRM and performance- Amstrong, 2009

What are the HR Practices That Impact performance??

People are the organization’s key resources and organizational performance largely depends on them. All other resources could be acquired easily. If an appropriate range of HR policies and processes are developed and implemented effectively, HR will make a substantial impact on the firm’s performance.

HR Practices	Impact
Attracting, developing, and retaining high-quality people.	Matches people to the strategic and operational needs of the organization.
Talent Management.	Ensures that the talented and well-motivated people required by the organization to meet present and future needs are available.
Work environment.	Develops a clear vision and set of integrated values.
Job and work design.	Provides employees with stimulating and interesting work and gives them the autonomy and flexibility to perform theses jobs.
Learning and development	Enlarges the skill base and develops the levels of competence required in the workforce.
Managing knowledge and intellectual capital.	Focuses on both organizational and individual learning and provides learning opportunities to share knowledge in a systematic way.
Increasing engagement, Commitment, and motivation	Encourages people to identify themselves with an act upon core values of the organization and willingly contribute to the achievement of the organizational goals.
Cultural Change	Development of shared values, encouraging attitudes and behavior that are oriented toward performance.

Characteristics of HR practices that make an impact on performance.

·       The practice meets the business need.

·       How the practices meet the need is specified.

·       Success criteria have been established to measure the impact.

·       Steps taken to make the line managers and staff understand the need for the practice.

·       Practice can be put into action by the line manager.

The high-performance management approaches.

A simple approach to high-performance organization- TORBEN RICK

Characteristics of a high-performance culture.

·       Everyone understands why their work matters - Management defines the requirements of performance improvement, sets goals, and monitors performance.

·       Values are practiced throughout the company-Alternative work practices are adopted such as job redesign, autonomous work teams, improvement groups, team briefing, and flexibility.

·       All activities provide the ultimate value to the customer- Employees know what is expected of them.

·       Employees are empowered- Employees' tasks match their capabilities and specialty.

·       Strong leadership- Team grows without dependency on in

·       Promotes positive attitudes.

·       Performance management processes are aligned with business goals.

·       Pool of talent ensures a continuous supply of high performers in key roles.

·       Employees are involved in developing high performance.

Check out and enhance your understanding!👇👇👇

Conclusion

The role of HR in organizational transformation is critical for the success of any business. The HR practices, which include attracting, developing, and retaining high-quality people, talent management, work context, job, and work design, knowledge and development, managing knowledge and intellectual capital, accelerating engagement, commitment, and motivation, and cultural change, can have a significant impact on the performance of the association. HR practices that make an impact on performance are those that meet the business need, have established success criteria, are understood by line managers and staff, and can be put into action. To produce a high-performance culture, management needs to outline the demands of performance improvement, set goals, observe performance, adopt alternate work practices, empower employees, deliver strong leadership, promote positive attitudes, align performance management processes to business goals, ensure a continual supply of high performers in pivotal roles, and involve employees in developing high performance. By executing effective HR practices and creating a high-performance culture, organizations can enhance their operational performance and achieve advanced financial performance or wealth maximization for their shareholders.

References

·       mnestudies.com. (n.d.). Impact of HRM on Organizational Performance and Employee Performance | Monitoring and Evaluation Studies. [online] Available at: http://mnestudies.com/human-resource/impact-hrm-performance [Accessed 19 Apr. 2023].

·       ‌ AIHR - Academy to Innovate HR (2020). How to Make Impact with Strategic HRM | AIHR Learning Bite. YouTube. Available at: https://www.youtube.com/watch?v=jSh2dKHZpo4.

·       Armstrong, M., 2006. A handbook of human resource management practice. Kogan Page Publishers.

·       Torben Rick. (2014). A SIMPLE approach to high performance organization. [online] Available at: https://www.torbenrick.eu/blog/performance-management/infographic-simple-approach-to-high-performance-organization/ [Accessed 19 Apr. 2023].

 

Navigating the Strategic role of HR practitioners in contemporary Enterprises

Unlock the insights and explore the value of HR for all professionals...

HR professionals, especially at the highest level make a strategic contribution that ensures the organization has the quality of skilled and engaged people it needs. The role of HR practitioners varies widely according to the extent to which they are generalists or specialists the level at which they work and the needs of the organization. Therefore, HR practitioners play various roles in an organization.

How does The Strategic Business partner model work?👇👇👇

HR professionals as strategic business partners should work closely with management influencing the business strategy and contributing to its implementation. The recommended role for the HR function is that of a ‘strategic partner’. This role typically has 4 aspects.

·       Top HR executives cooperate with their line counterparts in formulating HR strategies.

·       Top HR executives fully participate in all business strategy sessions as equals to the CFO and other top executives.

·       HR executives work closely with line managers on an ongoing basis to ensure that all components of the business strategies are adequately implemented.

·       The HR function itself is managed strategically.

To become a strategic partner, they need a good working knowledge of the organization and its strategies. Hence, they should meet the following criteria.

·       Spend time with the customer and client diagnosing, discussing, and responding to needs.

·       Actively participate in business planning meetings and offer informed insights on strategic, technological, and financial capabilities.

·       Understand business conditions.

·       Demonstrate competencies in business knowledge, particularly customer relations, delivery of world-class management practices, and management of change.

Now, are you interested in being a great HR partner? Watch this!

Strategic role of HR professionals.

The Strategic role of HR professionals varies following their level or function as HR directors, HOHR functions, Business partners or HR advisers, etc...

Is it always beyond just hiring and firing… I trust you got the implications.
Let us explore deeper.

It is clear now that the strategic role of Human Resource Management(HRM) in associations is paramount, serving as the linchpin between organizational aims and effective human capital management. HRM plays a critical function in aligning HR practices with strategic ambitions, guaranteeing that the staff is equipped with the proficiency, knowledge, and capabilities necessary to drive organizational success. This involves activities similar to talent acquisition, performance management, training and development, and succession planning, all directed at maximizing employee benefactions to achieve competitive advantage and sustained growth. Moreover, HRM is necessary in fostering a positive organizational culture, enhancing employee engagement, and navigating organizational change, thereby greasing long-term success and adaptability in the present dynamic business landscape.

The strategic role of HR directors.

 The key roles are to develop and implement HR strategies that are integrated with the business strategy and ensure that a strategic approach is adopted which ensures that HR activities support the business and add value by taking into account the ethical dimensions.

·       Understand the strategic goals of the organization.

·       Appreciate the business imperatives and performance drivers relative to these goals.

·       Understand the business model.

·       Contribute to the development of the business strategy.

·       Ensure that the senior management understands the HR implications of its business strategy.

·       See the big picture including the broader context.

·       Think longer term.

·       Understand the kinds of employee behavior.

·       Embrace ethical considerations.

Strategic Role of Head of HR functions.

·       Understand the strategic goals of the organization.

·       Appreciate the business imperatives and performance drivers.

·       Help senior management to understand the implications of its strategy for the HR function.

·       Know how HR practices in the function can contribute to the achievement of goals.

·       Be capable of making a powerful business case for any proposals on the development of HR strategies for the function.

The strategic role of HR business partners

·       Understand the business and its competitive environment.

·       Understand the goals of their part of the business.

·       Ensure that their activities provide added value for the unit or function.

·       Build relationships with line management and employees.

·       Provide support to the strategic activities of colleagues.

·       Be proactive, identifying problems and producing innovative solutions.

Challenges of becoming a strategic partner

·       Avoid strategic plans on to shelf- Need to turn strategic statements into a set of organizational actions.

·       Create a balanced scorecard – be equally accountable for all segments of the balanced scorecards, and provide intellectual leadership on the people dimension.

·       Aling HR plans to business plans.

·       Watch out for quick fixes- HR professionals should understand the theory, research, and application of ideas in order to apply them appropriately in their business.

·       Create a capability focus within the firm- identify and improve capabilities both to implement strategy and to leverage new products.

Overcoming challenges.

·       Participation in business planning.

·       Understanding business issues.

·       Participation in business task forces.

·       Fostering system thinking.

·       Ensuring program management of workforce planning, skills assessments, succession planning, retraining, and diversity.

·       Providing support to group-wide or sector initiatives.

·       Championing the company's way and management practices.

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"The multiple-role model for HRM (Dave Ulrich’s Model)"

After so many years is this still valid???

‌HR roles in building a competitive organization (Ulrich,D. 1997)

1.      Strategic partner: The management of strategic HR, aligning HR & business strategy.

2.    Change agent: The management of transformation and change, creating a renewed organization.

        HR professionals as change agents

·       Catalysts/sponsor (dedicated employee body)

·       Facilitator

·       Designer (re-design HR system)

·       Demonstrator (demonstrate change within own functions)

3.      Administrative expert: Management of firm infrastructure, reengineering organization process.

4.     Employee champion: Management of employee contribution, increasing employee commitment and capability.

Get more clarity by watching this!

Sample activities related to HR Roles at Hewlett-Packard

Multiple Role Model of HR

Hewlett-Packard HR activities and (ii) Dave Ulrich (1997) "Multiple Role Model of HR"]

In addition to the above roles, HR management needs to undergo broad transformation under the following 4 areas.

Enabler: As the enabler, SHR practitioners must empower line managers to implement HR programs successfully. This will therefore lend support to various HR activities such as interviews, selection, induction, evaluation, reward, training, promotion, counseling, and dismissal.

Monitor: As the monitor, SHR practitioners must try to ensure that the policy implemented is fair and consistent.

Innovator: As the innovator, SHR practitioners must strive to be the benchmark. As Peter Drucker said they must be “doing the right thing” and “doing the thing right”. Therefore, the policies implemented must be assessed.

Adapter: As the adaptor, SHR practitioners need to remain open to new technologies, structures, processes, cultures, and procedures. There should be no fear of adapting concepts and ideas, which will improve the strategic effectiveness of the HR management function.

Coach: Coach Leaders about how they can build stronger organizations. Help leaders succeed by observing their behavior and providing feedback on how to make changes in their personal style.

Architect: Turn generic ideas into blueprints for organizational action. Help business leaders to identify choices not evident or known about how the organization might better be structured or governed.

Conclusion

HR professionals play a vital role in ensuring organizations have the skilled and engaged workforce needed to achieve business goals. The HR Business Partner Model recommends that HR practitioners work closely with management to influence and implement business strategy. The strategic role of HR professionals varies depending on their level and function within the organization, with HR directors, HOHR functions, and HR business partners all playing important roles. Becoming a strategic partner requires an understanding of the business and its goals, as well as the ability to provide added value and innovative solutions. Overcoming challenges requires participation in business planning, fostering system thinking, and providing support for initiatives such as workforce planning and diversity. By fulfilling these roles and responsibilities, HR professionals can make a significant contribution to the success of their organizations.
 The multiple-role model for HRM proposed by Dave Ulrich provides a comprehensive framework for managing human resources in organizations. The model identifies four key roles that HR professionals should play, including strategic partner, change agent, administrative expert, and employee champion. Additionally, HR practitioners need to act as enablers, monitors, innovators, adapters, coaches, and architects to empower line managers, ensure fair policies, strive for excellence, remain open to new technologies and ideas, coach leaders, and turn ideas into blueprints for organizational action. By adopting these roles, HR managers can build competitive organizations, create a renewed organization, and increase employee commitment and capability. The Hewlett-Packard HR activities illustrate the practical application of the multiple-role model of HR and its effectiveness in building a successful business. Overall, the multiple-role model of HR is a valuable tool for HR professionals seeking to align HR and business strategy and create a sustainable competitive advantage in today's dynamic business environment.

 References 

·       www.youtube.com. (n.d.). What is the HR Business Partner Model? [online] Available at: https://www.youtube.com/watch?v=eeVyY32qkmQ&t=66s [Accessed 15 Apr. 2023].

·       Armstong,M& Baron,A.(2005). A handbook of strategic human resource management. The key to improved business performance.

·       Mayhew, R. (2019). The Strategic Role of Human Resource Managers. [online] Chron.com. Available at: https://smallbusiness.chron.com/strategic-role-human-resource-managers-11782.html.

·       ‌ Fechter, J. (2023). What is the HR Business Partner Model? - HR University. HR University. [online] 2 Feb. Available at: https://hr.university/career/hr-business-partner/hr-business-partner-model/.

·       evelinadebora (2017). Peran HR Menurut Dave Ulrich. [online] Evelina Damanik_blog. Available at: https://evelinadamanik.wordpress.com/2017/12/10/peran-hrd-menurut-dave-ulrich/ [Accessed 15 Apr. 2023].

·       David Ulrich’s HR Model. (2019). YouTube. Available at: https://www.youtube.com/watch?v=YvuCFL-9F6A.

·       Liew, E. (2011). e-HRM Inc: The Multiple-Role Model of HRM. [online] e-HRM Inc. Available at: https://e-hrminc.blogspot.com/2011/04/multiple-role-model-of-hrm.html [Accessed 15 Apr. 2023].