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Performance Management Essay On High-Performance Work Systems


Task: Prepare a performance management essay defining and discussing the key components of High performance work systems. How might they benefit organizational performance management and what are some if the challenges in their application?


The concept of high-performance work systems illustrated in the performance management essay refers to the group of applications associated with human resources whether it is separate as well as interconnected. The applications and practices include training, an appraisal based on performance along with compensation as it helps in boosting the effectiveness of staff members. This performance management essay includes the description of high-performance work systems (HPWS) as well as discussion on the key components of HPWS. In addition to this, it also includes a demonstration of how high-performance work systems provide different pros to the performance of the business organization. Apart from this, it also includes the cons and challenges faced by the business organization after implementing the HPWS. The implementation of a high-performance work system helps in increasing the skills, knowledge, and involvement along with the commitment of staff members. In addition to this, it also assists in decentralizing decision making which is beneficial for a business organization.

According to the viewpoint of Jyoti & Rani (2017), it argued that a high-performance work system refers to the systematic approach related to the design of a business organization. It helps in aligning the structure, procedure along with the system of organization by utilizing the appropriate structure of the team in attaining the effectiveness of different operations, innovation along with the qualitative results for the consumers of the company. This system assists in determining and examining the needs and requirements of a business organization, which needs to be fulfilled accordingly. It also assists in identifying the staff members that help in filling the differences in their job and then employers examine the performance of staff members and accordingly compensate them so that employees stay with the company for a long time. A high-performance work system can also describe as a set of approaches associated with management within the company, which increases the responsibilities and involvement of employees. This system helps in setting the appropriate intentions of a business organization so that they can attain competitive advantage with the enhancement of individual performance within the company. The main principle associated to HPWS includes building blocks for managers by sharing the information, development of knowledge as well as performance.

According to the viewpoint of Brown (2020), it has been argued that while implementing this system, it is necessary to identify the attributes for every staff member who is working under a high-performance work system that is the decision-making process of employees. Additionally,how staff members of an organization can learn, and incentives of employees as well as technologies from which employees are familiar. There are different components of HPWS include the opportunity to participate, training and development, technology, as well as employee incentives. The first component is the opportunity to participate among the staff members as it creates the capability for staff members so that they can participate in the decision-making procedure. It provides permission to employees in making an appropriate and effective decision as it impact on the immediate environment and through this positive influence can generate among the whole business organization. Jonker (2019), stated that with this component, employees feel confident and more committed to the work. In the company, managers must understand the need and requirement of participation of staff members in the business organization so that they can easily manage the work,and it can be defined as a major task. The high involvement of staff member's impact high on the business organization. Another component of HPWS mentioned in the performance management essayis training as it offers the appropriate and essential skills to the staff members so that they can perform effectively and grab more opportunities to work with responsibility in the organization. Training offers the right path to the companies to deliver cross-training to staff members in diversified skills so that they can extend their knowledge and understand different roles within the company. Individuals who are working in a company having an aim for high leadership roles as staff members having a wide range of skills and that is not necessary for a single task but may engage in other duties so that they can enhance their performance level (Wirz, 2016). Additionally, the third component is incentives of employees, as a business organization needs to identify that staff members are giving an effective performance so that they can attain rewards and incentives accordingly and through this, the organization boosts their value in the competitive market. Incentives to the employees an offer in any type of form whether it is stock options or any type of equity plan, salary level may increase, offers bonuses to meet the targets related to performance and other rewards in terms of monetary. However, on the other side, incentives can offer in terms of non-monetary options that is to offer full-day leave, time off, flexible shift, group lunch as well as other benefits offered to staff members. By monitoring and examining the regular results because of performance, and through this they can easily appreciate the members without doing any type of partiality (Brown, 2020). The main need of the company is to remunerate the individuals with its performance, this will assist in boosting the motivation level, and this will help them in delivering effective performance. The last component is technology, as in the present time, the technology used everywhere and is considered an essential part of the development and growth of the business organization. By using the high-performance work systems, technology does not offer leading-edge solutions but it offers the infrastructure for the communication as well as transferring the information and data, which is essential to the business performance. From the technology, managers and staff members communicate effectively and can make effective decisions by using the communication infrastructure, which is necessary for the company. Any type of breakdown or problem in the conversation in business organization enhance the gap between the staff members and employers relationships (Wirz, 2016).

With regards to the case scenario of performance management essay, Shin and Konrad (2017), stated that the performance of business organization always become a major concern among the managers as well as owners of the business in the world. The managers and other members of the company need to do continuous change according to the requirements, which helps in maintaining a better and competitive performance. The high-performance work system helps in creating a significant approach to the change in a business organization. HPWS offers benefits to the business organization in terms of performance, along with the productivity of the company. It also offers profitability to organizations and employees by offering a better quality of work as well as the security of the job. In other words, the main benefit of implementing the HPWS is to enhance the productivity and efficiency of the business. According to the viewpoint of Caniëls and Veld (2019), it has been argued that the application of a high-performance work system provides permission to the company to build or develop the strong loyalty as well as brings the new individual so that they can deliver the new and innovative ideas to the company. Additionally, HPWS assists in decreasing the training costs as the company hire experienced employees. Freudenberg (2020), demonstrate that business organization gets many advantages from HPWS, which include enhancing productivity, decrease costs as well as effective responsiveness to the consumers, boost the flexibility along with the profitability. This work system assists in enhancing the value by establishing in enhancing efficiency, reduce the costs, and enhance the processes as well as offering the unique facilities to the consumers. It assists the business organization in developing, enhancing, and applying the skills, capabilities along with the knowledge that is not equally available to all the companies. Shin and Konrad (2017), describe that the high-performance work system helps in making effective teams along with the capabilities but it cannot be duplicated by opposing firms. A high-performance work system helps in combining the aptitudes of staff members as well as send them rapidly in various new tasks with the extreme adaptability. Additionally, the use of the HPW system helps in offering diversified advantages to staff members in attaining the goals and objectives. According to the viewpoint of Caniëls and Veld (2019), it has been argued that this system helps staff members in taking the risks, generating new ideas and making the mistakes in leading the new products, services along with the markets. By using the work system, employees can offer an effective contribution to the success of the company while fulfilling their personal job growth along with the needs associated with work satisfaction. With the use of HPWS, employees can share the information, which creates a feeling among them that they play an essential role in the company. According to the viewpoint of Freudenberg (2020) considered in this segment of performance management essay, it has been argued that by adopting the high-performance work system, employees can feel proud that the company values their suggestions and expertise. However, on the other side, this system also helps staff members in gaining and improving the skills as well as boost the capabilities, which will help in maintaining job security in the future and can become more marketable to other business organizations. Shin and Konrad (2017), stated that those staff members who have high qualifications can make an effective place in the company by using the correct and appropriate skills as well as capabilities. The high-performance work system helps in offering the appropriate employee contributions and can attain the organizational objectives. As per the Caniëls and Veld (2019), demonstrate that motivated, as well as well-trained employees want to work productively which will help in attaining the maximum benefit of the company. This will help in promoting productivity. Additionally, better-quality efficiency in terms of systems, procedures along with the different ways which help staff members in working an also boost any of the outdated practices which the company has. HPWS becomes most important as a source associated with a competitive advantage in the present type of business environment as it assists in developing the capabilities of the workforce of business organizations.

Hassan and Din (2019), stated that there are seven practices which are included in HPWS which implementation which include ensuring employee security, decision making should be decentralized in nature, selective hiring, decreased the barriers related to the status, key information should be shared, provide effective training with commitment, and offer the high result which is based on compensation. When the company implements the high-performance work system, then they may face many challenges, and issues such as the generation of an effective communication plan should build a business case for change. Additionally, some other challenges are involvement of staff members who are capable to work in this system, the establishment of formal commitment, need to manage the procedures as well as provide support to other key constituents. According to the viewpoint of Robineau, Ohana, and Swaton (2015), it has been argued that business organization should try to blend the essential challenges in the high competition that is adapting the changes to conduct the global business, need to make the variations in the technology according to the requirements, manage the changes as the per the decided goals. In addition to this, the company faces the issues related to offer the responses according to the consumer needs, the issue can occur in developing intellectual capital as well as decreasing costs. Apart from this, there are some challenges as identified in the present context of performance management essay, which may face by the employees of the company after implementing the high-performance work system that is the management of different staff members, may face difficulty in accepting the new work attitudes, recognizing the rights of employees, the stress in balancing work and in fulfilling the demands in attaining the competitive advantage. Shin and Konrad (2017), demonstrate that with the implementation and execution of a high-performance work system, a business organization can face some challenges or issues which include meeting the short-term goals whether it is related to business as well as financial. Additionally, should build the company, which will help in sustaining the competitive market for the long term. With the implementation of HPWS, payoffs can be increased by assimilating the different HR practices with the overall process of company related to strategic planning. From this system, a company can empower their staff members, by offering them authority related to decision-making as it may affect the morale of staff members if the business organization are unable to do so. This may have a strong influence on organizational performance (Showkat, Shajan, and Pathak, 2019). A high-performance work system influencing the group of staff members as employees face difficulty in working in this system and this affects morale and then it has a negative impact on organizational performance. According to the viewpoint of Jian, Sun and Wang (2019), it has been argued herein performance management essaythat HPWs has also a positive impact on the performance of the business organization as a company can make different variations such as appropriate staffing which help in attaining the effective result, and accordingly appraisal can be done. In addition to this, appropriate training regarding skills should be delivered, offer the best incentives according to performance. The practices related to HPWS assists the business organization in improving and enhancing the value and goodwill in the market with the uniqueness along with the inimitability of staff members with capabilities and knowledge, which boosts the positive behavior of staff members, as well as enhance the performance of the organization (Jian, Sun and Wang, 2019). However, on the other side, HPWs have two primary concerns, which create a negative impact on employees that is a disagreement of goals as well as the diversity of staff members. As the focus of this system is to enhance the capabilities of the company and attains the performance goals as HPWS impose the employee regulations, which creates the pressure on employees that they have to cope up with the workload, and this creates the negative impact on the ability of staff members to attain the goals. In the company, employees are working for the same goals but they have their different and unique values along with the diverse range and because of these different values, staff members interpret the aims differently (Jian, Sun and Wang, 2019).

After summing up the essay developed in this performance management essay, it has been concluded that a high-performance work system is an appropriate combination of individuals, technology along with the structure, which utilizes resources effectively in attaining the goals. HPWS has four components that are training, technology, incentives, and the opportunity to participate. When a company implements an HPWS system, then it provides benefits or advantages to both employees and the organization. It helps in attracting, retaining, and motivating the staff members of the company. It also assists in enhancing the profitability and productivity with the appropriate contribution of staff members and attains the objectives of the business organization. It has also been concluded herein performance management essay that when a company implements the high-performance work system, then it may face both positive and negative impacts on the business organization. Some positive impacts include effective staffing of employees may result in a boost in performance and according to that employees get an appraisal. Another side, negative impact includes divergence of pre-determined goals and multiplicity of staff members. ?

Brown, E. D 2020, ‘Implementing a High-Performance Work System’, viewed on August 28, 2006, .

Caniëls, M.C and Veld, M 2019, 'Employee ambidexterity, high-performance work systems, and innovative work behavior: How much balance do we need?’, The international journal of human resource management, vol. 30 no.4, pp.565-585.

Freudenberg, P 2020, ‘What are High-Performance Work Systems (HPWS)?’, viewed on January 23, 2020, .

Hassan, S. and Din, B 2019, ‘The mediating effect of knowledge sharing among intrinsic motivation, high-performance work system and authentic leadership on university faculty members’ creativity’,performance management essay Management Science Letters, vol. 9 no. 6, pp.887-898.

Jian, H. Sun, J and Wang, H 2019, ‘Do High-Performance Work Systems Generate Negative Effects?’, viewed on October 15, 2019, .

Jonker, F 2019, ‘Designing a High-Performance Personal Work system’, viewed on January 16, 2019, .

Jyoti, J and Rani, A 2017, ‘High-performance work system and organizational performance: Role of knowledge management', Personnel Review.

Robineau, A. Ohana, M and Swaton, S 2015, ‘The Challenges Of ImplementingHigh Performance Work PracticesIn The Nonprofit Sector’, The Journal of Applied Business Research, vol. 31 no. 1. Doi:
Shin, D and Konrad, A. M 2017, ‘Causality between high-performance work systems and organizational performance’, Journal of Management, vol. 43 no. 4, pp.973-997.

Showkat, S. Shajan, K and Pathak, V.K 2019, ‘STRATEGIC HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: MEDIATING ROLE OF EMPLOYEE WELL-BEING IN THE INDIAN IT INDUSTRY’, performance management essayJournal of Critical Reviews, vol. 6 no. 6, pp.75-83.

Wirz, C. R 2016, ‘The Four Components of a High-Performance Working System’, viewed on March 1, 2016,


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