Critically analyse the effects of high performance work practices on employers and employees.
Critically analyse the effects of high performance work practices on employers and employees. The primary goal of most businesses is to maximize profits for the owners. High performance work practices (HPWPs) are a methodology used by various organizations to maximize workforce potential. HPWP is a combination of various theoretical models working alongside a receptive organizational climate and culture. This analysis will state the merits of HPWPs on employers and scrutinize its shortcoming on employees. The essay has been structured by introducing the concept of HPWPs as defined in available literature along with key findings. Thereafter the relevant theories pertaining to HPWP will be presented. Here the relevancy of the social
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It can be noted that some studies have contradicted the advantages of the social exchange theory on employees. At the focus of these drawbacks are the higher levels of strain and lower pay satisfaction that have been observed as a result of the increase of an employee's workload (Garcia-Chas et al. 2013, p. 4). Similarly the increasing workload or what is known as work intensification can affect an employee negatively as any resulting ill effects on the employees’ health and wellbeing will be felt on his/her family and the public health system (Burchell et al. 2009, p.3). Furthermore when looking at the expectancy theory it has also been noted that even if the desired attitudes and behaviours are observed in employees, there may not be an economic benefit to the organization. This is because some roles within the organization do not benefit from additional performance motivators as they are unimportant or don’t contribute much in terms of business strategy (Wang et al. 2011, p.2426) For the expectancy theory to be effective the job role must be first identified as being conducive for its application. Therefore it can be deduced that the organization wide application of the expectancy theory may not have the desired effect on financial performance. Similarly when the labour process theory is scrutinized it can be observed that while work intensification does give