Which Way to High Performance? Comparing Performance Effects of High-Performance Work System Components in Small- to Medium-Sized Establishments

Jeffrey B. Arthur, Andrew O. Herdman and Jaewan Yang

ILR Review, 2021, vol. 74, issue 2, 352-387

Abstract: The authors examine variation in firm choices to invest in HR practices. They identify three approaches: investments in high-involvement programs (such as employee participation and teams); in high-commitment practices (such as internal promotions and job security); and in ability-enhancing selection and training programs. The authors test the performance effect of these choices in a sample of 165 small- and medium-sized hotel establishments (SMEs). They also consider how job-level differences in skill requirements and customer contact affect the relative effectiveness of these three groups of high-performance work practices. Consistent with the authors’ predictions, findings show that, on average, the group of high-commitment practices has the strongest relationship with SME performance. However, the performance effect of high-involvement practices is significantly stronger for front desk jobs compared to housekeeping jobs.

Keywords: high-performance work system; high-performance work practices; organizational performance; human resource management practices; labor and employment policies; small firms; hotels (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:74:y:2021:i:2:p:352-387

DOI: 10.1177/0019793919893668

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