High performance work systems, organisational culture and firm effectiveness 2000 words

High performance work systems, organisational culture and firm effectiveness



The article “High performance work systems, organisational culture and firm effectiveness” by Deanne N. Den Hartog, Robert M. Verburg explains the in-depth knowledge on organisational culture and firm effectiveness. Managing human resources in а TQ natural environment needs expanded vigilance to recruitment, vocation development; teaching, education; reimbursement, recognition; wellbeing, security, well-being; motivation; presentation appraisal; and assessing HRM effectiveness.

Compensation and acknowledgement refer to all facets of pay, encompassing advancements, bonuses, and both financial and non-monetary types of reward. (Langley 2004, p691-711) Extrinsic (trips, clothing) and inherent (time off or exceptional company-sponsored accolades and events) pay are significant to maintaining worker motivation. Team-based pay and increased and fairer distribution (an approach in which all workers share savings uniformly) are common in TQ associations, as are types of non-monetary acknowledgement approaches and methods ‘in kind’.


Brief summary

Johnson, Melin, and Whittington (2003, p3-22) express the thought that content method, and environmentally-based ideas and forms supply а hypothetical cornerstone for managerial leadership.  They go on to say that an organisational culture may have developed from several causes, and one of them is from the organisation’s creator. Motivation is an individual’s answer to а sensed need. А great many long-standing ideas of motivation have significant relevance in TQ associations, and require to be appreciated by all grades of managers. All enterprises, if they are large-scale or more modest in size and scope, start from а lone individual or an assembly of persons, as stated by Sutherland J and Canwell (2004) who start with the enterprise concept and apply it. As the proprietor is the foremost individual inside the association, he or she uses the strongest leverage on how the association manages its purposes, in concluding what activities are to be taken, and the main direction the association is heading in the current environment.


Literature and concept

Another source of organisational culture is the emblems, tales, champions, slogans, and observance affiliated with the organisation. Floyd and Lane (2000, p154-178) address this issue furthermore, the most expected clear-cut route to communicate with the general public, particularly for enterprise associations, because things like emblems and slogans could effortlessly be glimpsed on their goods or in their advertisements. For instance, Apple Computers, which makes Macintosh computers and а very easy and easy to use functioning scheme, has ‘Think Different’ as its catchphrase.

The motto urges its workers to be pioneering in conceiving their goods in order that they can compete in the market, which is dominated by their competitor, Microsoft, which itself has its own slogans and brand images, of course. As an outcome, the slogan has motivated inspiration, and is very much echoed in Apple’s characteristic lines of goods: for example, the colourful and cableless iMac computers, the handy iPod melodies players, and the iTunes melodies shop, where internet users are enabled to download initial pieces of music lawfully for much reduced prices.

Corporate achievement and distributed knowledge furthermore form organisational culture. (Langley 2004, p691-711) Past and present knowledge, if there are achievements or flops, can have far reaching consequences on an association as they supply the courses on what to do and what not to do, as well as the identity and history of an organisation.


Research method


The present study follows the idea of Anthony (2008) of moving beyond strategy, construction and systems to а frame built on principle, method and people. Investment in people and processes that are reasonable and evenhanded, and which build а clear operation, will advantage the firm. An aggressive marketplace and challenging labour markets might prompt firms to be more practical in their HR administration. Based on the current article, this might result in improved industry outcomes. А significant example is that, to achieve an enhanced picture of managerial processes, it is advantageous to discover а variety of features and dynamics. (Langley 2004, p691-711)The incorporation of these factors, rather than the trying of each one in isolation, might help to describe organizational processes and outcomes in the best possible way. The findings would seem positive, and the results of using such methods should produce important impact on the method organizations use to managed their people.


Results and implication

А number of limitations can be found in the current article. First, the study was written in one country only, and it is suggested that this research be empirically examined in other countries. However, the Netherlands background provides researchers and practitioners with а suitable laboratory for examining and analysing superior managerial practices in to the extent that it is а ‘Maduradam’ (microcosm) for the developed countries in Western Europe and North America. Thus, in this investigation а partial set of HR practices was analyzed in order to select detailed choice of HR practices for assessment. Whereas previous studies used a smaller number of practices, а wider set of these practices might illustrate а wider picture. Third, causality was not recognized, even if it is rational to presume from other studies that the course of control follows the lines conjectured. Finally, all the figures were self-reported by participating firms.

However, this insufficiency has been found in comparable studies explained in the literature. Furthermore, some experts assert that dependence on а single source of data can ground methodological difficulties, among them widespread technique discrepancy. Forray and Woodilla (2002, p899-916) assert that common technique discrepancy must not be considered а critical factor, and specified by data analysis that its impact is negligible. His argument was later supported by Balogun and Johnson (2005, p1573-1601). Prospective studies might deal with these limitations and scrutinize additional possible bias factors. Our expectation is that this article provides а starting point for wider research.


High performance work systems

Jarzabkowski (2004, p529-60) explain in his writing that similar to the issue above, but from an entirely distinct viewpoint, an organisational culture could furthermore be affected by ‘outsiders’ through amalgamations and acquisitions. Such co-operating and takeover events are rather commonplace nowadays, where intense competition demands that particularly large enterprises stay ahead, and can often proceed as а cost-cutting measure.

Stacey (2007) give example and states that recently, Comcast, а gigantic company in the United States focusing on expertise of provision, was described as having put forward an offer to amalgamate with Disney, an identically large amusement enterprise well renowned for its Mickey Mouse characters. Up to now, the amalgamation has not happened, but such amalgamation could have benefited Disney, particularly in the circulation and broadcasting localities where Comcast performs strongly. Disney has already merged with Pixar in its film-making business, so is no stranger to such arrangements.

On this Forray and Woodilla (2002, p899-916) identifying and comprehending the causes of organisational culture are of significance and often prerequisite to managerial achievement, as they supply very useful data for managers to increase performance and improve decision-making, particularly in undertaking difficulties associated with organisational culture matters. De Wit and Meyer (2004) express that these ideas for increasing performance can originate in associations in various ways, and the likelihood is that they will occur more in businesses whose workers feel empowered and are given autonomy and good working conditions by management, so they feel а sense of ownership is what they do and identify with the business they are part of.




Being aware of, and familiar with, such organisational culture assists the supervisor to completely assess the general presentation and wellbeing of the business itself. Hendry and Seidl (2003, p175-96) in their social culture research says that this is why businesses with powerful and reliable cultures are inclined to have а similarly impressive performance; and, as cited previously, it furthermore instils what Maslow calls in his well known, though perhaps rather simplistic and generalised, hierarchy of needs, ‘communal desires’, which is the sense of belonging in the direction of the organisation.

As Vaara, Kleymann, and Seristo argued (2004, p1-36), recognising organisational culture would furthermore permit the supervisor to reassess which culture or function of the association needs to be sustained or enhanced, and which ones can be altered or removed. Denis, Lamothe and Langley (2001, p809-37) note that nowadays, however, many organisations are keen to stress diversity in employment, and make workplaces more female-friendly; consequently, more women have risen up the management ranks in many businesses, and companies have profited from their abilities and talents, even in businesses where women have often been in а small minority.



The most significant cause of developing а new organisational culture is that it assists the supervisor in management diversification and multiculturalism. In short, as Stacey (2007) explains that diversification refers to the position inside an association when its constituents disagree from one another in one or more significant dimensions: for example, age, sex or customs; while multiculturalism is the reality of distinct culture, groups of standards, convictions, behaviours, culture, and mind-set, held by people. Managers are aware, however, that decisions need to be based on merit, first and foremost.



Balogun and Johnson (2005, p1573-1601) in their article on organsational change explain that the performance appraisal is а method for assessing and developing data about employees’ effectiveness at work. Customary presentation appraisal methods frequently are at odds with а TQ idea. Anthony (2008) in his book says that а lot of businesses are now using presentation appraisal with designing and development schemes that frequently focus on centre competencies and mastery descriptions.

Maznevski, and Chudoba (2000, p473-92) consider the linkages with schemes and to supply а base for enhancement, estimation of worker approval and HRM efficiency is essential. Typical assessments encompass conclusions: for example, productivity enhancement, defect decrease, worker revenue, and insights of behavioural performance; and method assessments; for example, proposal rates and problem-solving success. Employee insights are generally assessed through surveys.

Finally, the article concludes with а statement about technology and HRM practices; in the Internet Age one regularly needs employers to acquire non-traditional advancements to appeal and retain high-skilled employees. This might encompass exceptional perks, grades of reward and ownership early in an individual’s employment, and may result in changes precipitated by new technologies and new truths about working life in the 21st Century.


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Anthony Henry, “Understanding Strategic Management”, Oxford University Press, 2008

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Deanne N. Den Hartog, Erasmus University Rotterdam, Netherlands Robert M. Verburg, Delft University of Technology, Netherlands Human Resource Management Journal, Vol 14 no 1, 2004, pages 55-78.


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