Introduction
Organizational performance remains a major concern among managers and business owners around the world. As a result, there is a continuous change in the manner in which certain things are done by the management to maintain good and competitive performance. Nevertheless, it is argued that the creation of a high performance work system is undoubtedly a significant approach in augmenting organizational change.
Although various strategies have been adopted by different organizations around the world, it is double noting that there are effective components of high performance work system shared across companies and organizations. This research essay explores these effective components which have been applauded by scholars and business experts in defining organization performance.
To achieve this objective, a wide range of sources have been consulted including but not limited to authentic books, journals and online articles to have a wide spectrum of arguments. For better comprehension of the concept, the analysis draws some ideas and conclusions from the human resource management of Vodafone.
High Performance Work System
What is high performance work system? Many researchers agree that the concept of high performance work system can be viewed from a wider perspective, allowing several definitions. However, all these definitions narrow down to the involvement of employees in management and day-to-day running of the business.
High performance work system can therefore be defined as a set of management approaches within an organization which give employees higher responsibilities and involvement. According to Armstrong (2011, p. 155), high performance work system usually sets out the intentions of a company on the best ways to achieving a competitive advantage through the improvement of individuals’ performance within the organization.
Such a system further spells out the exact process of ensuring that the aspirations defined by the organizations are attained. Of importance however is the fact that all these efforts are geared towards augmenting employee knowledge, flexibility, commitment and skills.
This understanding is important in selection of effective components which would result into the creation of an environment which promotes employee participation and good performance (Armstrong, 2008, p. 116). As discussed below, a high performance work system comprises of:
- Participation of employees in decision making.
- Training.
- Employee motivation and incentives.
- Technological advancements.
- Respect.
- Creation of a goal-oriented environment among others.
Employee Participation
Employees play a major role in the overall performance of any organization in the world. As a result, many companies like Vodafone which have gained pinnacle global recognition put more emphasis on excellent human resource management. Moreover, the ability of a company to involve its employees in decision making is considered a major ingredient for not only good performance but also in promoting a high performance work system (Armstrong, 2008, p. 117).
According to researchers, employees who get involved in decision making by the management get motivated and develop a positive attitude towards work and remain focused on achieving set goals and objectives. It is also a source of empowerment to workers as they end up feeling part of the management (Armstrong, 2008, p. 117).
Although managers understand the need for employee involvement in organization management, implementation of this component remains a major task. The manner in which employees are involved in the process significantly determines its impact on the entire organization.
As a way of ensuring that employees remain part of organizational management, their involvement in parallel suggestion is highly considered. This involvement allows managers to incorporate the views of the entire workforce in making final decisions and strategies for better performance (Armstrong, 2011, p. 157). Additionally, allowing employees to participate in job-related processes motivates them, thus closing the leadership gap which may exist between the management and the workforce.
Training
For employees to perform their duties effectively, relevant knowledge and skills cannot be overlooked. Although this may seem obvious since companies assume that employees get hired when they are already competent, customized training is quite significant. Besides promoting effective performance of duties within an organization, training further imparts employees with technical skills which could give them a chance to take up other higher responsibilities within the organization.
Consequently, employees get inspired to aim for higher leadership roles by being in possession of required skills and expertise (Armstrong, 2011, p. 157). Through these training programs, employees are able to have a wider range of skills which are necessary for not only performing a single task but also to engage in other duties aimed at promoting good performance.
This understanding of organizational roles allows employees to deliver within the shortest time thus saving on resources like time. Lastly, training reduces the risk of employees from being involved in accidents emanating from lack of technical knowhow and skills. This is common in production firms where machines and chemical processes make the basis of production.
Rewards and Incentives
Another approach through which organizations promote high performance work system is through recognition of employee achievements and efforts. With existing variation in the productivity of employees, it is equally important for managers to identify individual and group efforts demonstrated by employees within the government.
By monitoring regular performance results, it would be easy but extremely useful to appreciate outstanding performance among employees without partiality. There is always need for organizations to associate its remuneration with performance in order to motivate their employers to focus on the realization of both organizations and individual benefits (Dubrin, 2011, p. 254).
Notably, there are countless incentives which could be considered as a way of creating a high performance work system depending on the nature of the organization. They may include stock options, sharing of company profits; pay hikes, bonuses in cases where performance targets have been achieved and money. It has been observed that a number of organizations like Vodafone employ such approaches in motivating their employees.
Equivalently, non-monetary options have been considered by other organizations as a way of promoting high performance work systems. These options include special employee benefits, time offs and flexible time (Dubrin, 2011, p. 255). It is clear that these efforts augment environmental flexibility for employees who may find time to attend to other personal issues when they are away from work.
This increases motivation among workers through self satisfaction and by feeling a sense of concern from managers. Free time could also be utilized by employees to advance their careers through part time studies.
Technology
With the advancement in technology, many organizations have considerably changed their operations in order to meet the demands of the market and promote efficiency among employees. Besides promotion of productivity, technology is viewed as a key component of high performance work system.
It is a major driving exercise which has led to summit performance among companies like Vodafone in recent years with its expansion taking the centre stage for most organizations in every part of the world. Among other ways in which technology transforms organizational performance is through facilitation of communication and sharing of information (Dubrin, 2011, p. 254).
Managers and employees are able to effectively communicate and make decisions promptly through a communication infrastructure that is necessary. A part from allowing smooth flow of information, it can further be argued that a well established communication infrastructure results into a high performance work system. How can an organization perform without good communication? Any breakdown in communication of an organization broadens the gap among employees and employee-employer relationships.
Based on the fundamental role played by technology, its integration in the daily operations of a company is quite essential. For organizations which may have complicated production processes and procedures, adoption of certain technological techniques could be important in promotion of employee efficiency and flexibility (Creating High-Performance Work Systems, n.d., p. 1).
As a result, managers are tasked to identify existing technological needs and address them in order to develop a competitive advantage within the market and motivate its employees. With the role played by technology being considered to be immense, there is no doubt that any management has to appreciate the challenges which arise. Technology comes with challenges and costs which have to be incurred by individual organizations before its integration is implemented (Creating High-Performance Work Systems,.d., p. 1).
Problem Solving
To achieve a high performance work system, there is every need for companies to establish mechanism to handle everyday challenges. Work problems are normal and part of the running of an organization. However, the manner in which such challenges are handled has a significant impact on the performance of the entire working environment.
A high performance work system therefore advocates for preparedness by having operating procedures which have to be followed in addressing particular issues (Ramsay, Scholarios & Harley, 2000, p. 505). It is further important to reiterate the incomparable role of good communication in problem solving. By establishing these channels, suggestions among stakeholders can easily be realized and communicated to employees before a situation gets out of hand.
Respect
An effective working environment comprises of managers and employees who hold and value respect for each other. Although many people focus on the respect between employees and managers alone, this recognition is equally significant among managers and employees.
Respect among employees allows each to see other’s responsibility as important as any other. It eliminates managers from despising junior employees of the organization by promoting mutual existence within the working system (Ramsay, Scholarios & Harley, 2000, p. 504).
Respect promotes the virtue of cooperation towards the realization of set goals and objectives. Many of the employees are able to embrace a sense of obligation to a given organization in enhancing a friendly working atmosphere necessary for intended successful results.
Based on the above analysis of the components of an effective high performance work system, it is more evident that the need to implement such a plan is inevitable especially in order to realize profitable performance within an organization.
Many of the major organizations like Vodafone have significantly implemented these plans, causing them to rise to globally recognized peak levels. With Vodafone as a model organization, it is important to understand how the company has worked towards promoting of a high performance work system in the telecommunication industry.
Vodafone
Vodafone is one of the leading telecommunication companies in not only the United Kingdom but also across the world. This is measured by its annual revenues and the total number of customers who place it at second position after China Mobile (Hill, 2011). With its operations extending in more than twenty countries around the world, Vodafone continues to thrive in the market due to several factors which favor it.
The company has for long remained committed to winning customers through their sustainable strategy which promotes ethical behavior, honesty and responsibility. Additionally, reduction of environmental effect drives its operation making it outstanding among other telecommunication companies. The achievement of credibility within a competitive market has been of great significance. Although these efforts have been mainly towards its success, the company has also promoted a high performance work system for its employees.
Ethical Environment
Vodafone employees operate in an honest working environment which has been nurtured by the company’s top leadership since its inception in the year 1982. By operating in this honest environment, employees are motivated to be devoted towards service delivery in an ethical and disciplined manner. This eliminates cases of unethical practices like bribery and corruption (Shetty, 2011). Upholding ethical business strategies further promotes respect among Vodafone employees and managers.
Managers have nurtured the art of respecting each other and leading other employees practically. Its honest history has also played a key role in winning customers through customer satisfaction through strategies which seek to establish better connection with its customers. Through surveys and feedback analysis from customers, the company prides in a massive loyalty of customers within the telecommunications industry.
Training of Vodafone Employees
Another important component of an effective high performance work system employed by Vodafone is training of its employees. The company holds high value for its employees, an approach which has led to the training of most of its employees in order to meet the challenges and demands of the telecommunications market.
This training further aims at ensuring that every employee achieves his or her full potential in terms of service delivery and efficient productivity (Shetty, 2011). Through continuous training programs, Vodafone Group has created a workforce that embraces diversity in skills and cultures to operate around the world. Training of employees has highly been enhanced by the establishment of a Learning Academy which offers instant solutions for learning and advancement solutions.
IT Incorporation
Besides an ethical environment and training of its employees, Vodafone has identified technology to be a major requirement for its global operations. Information Technology has helped the Group to gain a competitive advantage platform in the market through effective business operations which solely targets employee efficiency and customer satisfaction. This has been considered as one of the strategies of achieving set objectives.
IT capabilities within the company further allow employees to have access to learning services within the company’s intranet. With a variety of online courses for the employees, advancement within Vodafone workface is highly encouraged to meet the needs of employees in order to serve in other involving capacities. To address IT needs, the company has adopted cloud computing which is vital in sharing of data globally through wireless connection of personal computers.
Conclusion
Based on the above effective components of a high performance work system and the manner in which Vodafone Group has fully implemented these strategies, it suffices to say that a good working environment has far reaching benefits. As a matter of fact, the above effective components support the need to motivate employees in any given organization and environment (Jeffrey, 1995, p. 29).
Employees who are involved in decision making, well paid, trained for new tasks and equipped with technology to meet upcoming challenges get motivated to work productively for the success of the company. It is however important to appreciate the fact that every component can be adopted depending on the existing organizational demands.
It remains the role of managers to have strategies in place which should be implemented in order to achieve intended objectives. Of significance is the importance to have a harmonious relationship between the management and employees. Through a good communication and employee motivation approaches, there need not be a communication gap that may hinder company growth.
Nevertheless, recognition of employee should be emphasized through a scheme which gauges employee performance. Besides inspiring employees to have a positive attitude towards their job and perform better, employee incentives create performance competition within the company.
This competition is quite important in ensuring that employees give their best in terms of their abilities and skills. In addition, an understanding of the organizational culture is essential in adopting a list of components to be incorporated in the strategic plan (Armstrong, 2011, p. 165). As such, any high performance work system has to be inclined to the culture of the company.
References
Armstrong, M., 2008. Strategic Human Resource Management: A Guide to Action. London, UK: Kogan Page.
Armstrong, M., 2011. Armstrong’s Handbook of Strategic Human Resource Management. London, UK: Kogan Page.
Creating High-Performance Work Systems., n.d. Creating High-Performance Work Systems. Web.
Dubrin, A., 2011. Essentials of Management. New York, NY: Cengage Learning.
Hill, S., 2011. Vodafone case study. Web.
Jeffrey, K., 1995. High Performance Work Systems and Firm Performance. 118 Monthly Lab. Rev. 29.
Ramsay, H, Scholarios, D & Harley, B., 2000. Employees and High-Performance Work Systems: Testing inside the Black Box. British Journal of Industrial Relations. 38:4. pp. 501-531.
Shetty, N., 2011. Leadership Style at Vodafone. Web.