CHAPTER 16
IMPLEMENTING HR STRATEGY:
HIGH-PERFORMANCE WORK SYSTEMS
CHAPTER OUTLINE
16.1 Fundamental Principles
16.1b Shared Information and Trust
16.1d Performance-Reward Linkage
16.2 Designing High-Performance Work Systems
16.2a Work-Flow Design and Teamwork
16.2c Supportive Information Technologies
16.3 Strategic Alignment
16.3a Ensuring Horizontal Fit
16.3c Assessing Strategic Alignment: The HR Scorecard
16.4 Implementing the System
16.4a Building a Business Case for Change and Engaging Stakeholders
16.4c Evaluating and Sustaining the Success of the System
16.5 Outcomes of High-Performance Work Systems
16.5a Employee Outcomes and Quality of Work Life
16.5b Organizational Outcomes and Competitive Advantage
LEARNING OUTCOMES
After studying this chapter, students should be able to:
1. Discuss how a firm’s strategy can be achieved with a high-performance work system and
what its fundamental principles are.
2. Describe how a high-performance work system is designed, and explain how its
3. Recommend processes for implementing and evaluating a high-performance work system.
4. Discuss a high-performance work system’s potential outcomes for both employees and
the organization.
GENERATING INTEREST
Assign students to work in groups of 3–5 to complete the following.
Chapter 16: Implementing HR Strategy: High-Performance Work Systems 3
In the long run, employee-centered and organizational-centered outcomes have to support one
another. If employees do not get what they need, they cannot contribute effectively to the
organization. Alternatively, if strategic objectives are not met, the organization will cease to exist,
and employees will have to find work elsewhere.
A high-performance work system (HPWS) is a specific combination of HR practices,
work structures, and processes that maximizes knowledge, skill, commitment, flexibility,
and resilience of a firm’s employees.
Teaching Tip: Use Figure 16.1 to discuss the implementation of an HR strategy.
16.1 Fundamental Principles
Four fundamental principles underlie a high-performance work system:
• Egalitarianism and engagement
Teaching Tip: Use Figure 16.2 to discuss the principles of high-performance work systems. Consider
writing a definition of each element on the board.
Major findings were identified in 62 studies of high-performance work systems:
• The systems have a larger influence on the performance of organizations than
other highly visible governance practices.
• Because of their synergistic effects, the elements of the systems have a larger
16.1a Egalitarianism and Engagement
Status and power differences separate people. More egalitarian work
Chapter 16: Implementing HR Strategy: High-Performance Work Systems 5
EOC Discussion Question #1: Do you think the fundamental principles of getting employees
highly involved with their work provides an adequate context for designing high-performance
work systems? What other concerns or guidelines for developing high-performance work systems
would you suggest?
16.2 Designing High-Performance Work Systems
Because firms are different, their best practices are different. Some trends are similar.
Teaching Tip: In this section, use Figure 16.3 to discuss similarities in design aspects of high-
performance work systems.
16.2a Work-Flow Design and Teamwork
High-performance work systems begin with the way work is designed. Total
quality management (TQM), reengineering, Six Sigma, and similar programs
16.2b Complementary Human Resources Policies and Practices
Employee performance and satisfaction are much higher when organizations
Staffing Practices
Highly directive recruitment and selection practices help firms hire better
personnel who have the skills they need. To find the right employees, HR
executives should ask candidates behavioral questions.
Training and Development
6 Part 6: Expanding Human Resources Management Horizons
Compensation and Benefits
Because high-performance work systems ask for many different things from
employees, one single approach to pay does not work for everyone. When
decision making is pushed down to front-line roles, higher compensation is
Management Processes and Leadership
With fewer layers of management and a focus on team-based organization,
managers and supervisors are seen more as coaches. In a growing number of
cases, leadership is shared among team members.
Video Highlights #2: Section 16.2b: Complementary Human Resources Policies and Practices
VIDEO: Top 10 Cool Benefits at the Heavenly Google (2:29)
16.2c Supportive Information Technologies
High-performance work systems cannot succeed without timely and accurate
16.3 Strategic Alignment
High-performance work systems need to fit together.
Teaching Tip: Use Figure 16.4 to discuss horizontal and vertical fit when achieving strategic
alignment.
8 Part 6: Expanding Human Resources Management Horizons
Teaching Tip: Use Figure 16.5 to discuss how to implement a high-performance work system. Ask
students how the actions needed for success fit into the process.
EOC Discussion Question #3: This chapter emphasizes the processes required to implement a
high-performance work system. What are the most critical steps to successfully implementing
one?
16.4a Building a Business Case for Change and Engaging Stakeholders
It is important to build a bridge with the firm’s stakeholders such as its
employees, the unions it works with, and other groups when implementing a high-
16.4b Establishing a Communications Plan
Building support is easier if a top manager champions or promotes the system.
Employees should be confident that the CEO and senior managers are intimately
involved and committed to the change. Two-way communication is needed to
16.4c Evaluating and Sustaining the Success of the System
A process audit is determining whether the high-performance work system has
16.5 Outcomes of High-Performance Work Systems
Outcomes from high-performance work systems can be categorized as employee
concerns or competitive challenges.
Chapter 16: Implementing HR Strategy: High-Performance Work Systems 11
Case Study 2: Whole Foods Market Faces Whole New Challenge
1. Managers may resist HPWS because it appears to be a threat to their old ways (power
relationships, routines, and so on). But today’s organizational dynamics are changing and
2. Student answers will vary. This is an opinion question.
FLIP TIPS
Group Activity
Step 1: Read the sections on “Fundamental Principles” and “Outcomes of High–
Performance Work Systems” from the textbook and watch the following video before