High-Performance Working Environment - Hallo Food Company - Case Study Example

High Performance Working Environment al Affiliation: Executive summary Organizations operating in diverse sectors are currently faced by rapid competition level due to globalization. Ideal technological steps have been established to enhance through increased emphasis on fast change, and modernism. The organizations also face increased demand for quality and client service, and the issues and rewards of managing a wide workforce. Thereby, organizations are looking for means that would enable them gain competitive advantage in their markets. To manage or counter the highlighted challenges and sustain the competitive advantage, Human Resource practices must be combined with overall High Performance Work Systems (HPWS) that enhances employee inclusion and workforce. High Performance Work System is one of the mechanisms that have been able to gain rapid popularity within a vast number of organizations. This paper relays credible and in-depth information that appertains to effective management and leadership in organizations in enhancing performance and general administration of affairs. It covers key aspects and relevance of (HPWS) in sustaining competitiveness in diverse institutions. The initiative is paramount in ensuring that institutions are managed under best practices. Similarly, it covers central performance parameters that influence performance in Hallo Food Company. This paper mainly dwells is to find and identify key principles of High Performance Work Systems (HPWS) and its relation to an organization’s (Hallo Food Company) performance. This paper also tries to explore the benefits that an organization enjoys if it adopts the High performance work system. Introduction It is eminently true that any existing organization thrives to beat their competitors, go global, influence the government, persuade the customers, and increase shareholder values. These are a handful of pressures that majority of organizations face on every waking dawn. With the high-notched competition, staying on the forefront as the most successful in the already vast business segment could be daunting and challenging at the same time. The rising competition in both the local and international markets has necessitated many organizations to undergo significant transformations with an aim of improving their performance with respect to a great array of efficiency and quality indicators. Indeed, the organizations gaining an edge on their competitors in what seems to be a very competitive arena requires more than just creating a suitable image to the potential customers. It is with this profound reason that a vast number of organizations are constantly looking for the best means of increasing their performance and competitiveness. One of the many possible ways that an organization can flaunt its way to the top is having a stellar human resource management. The function of a stellar human resource management is greatly correlated with the high performance work systems, which plays a huge role in the organizational performance. HPWSs have often been regarded as the systems that help in promotion of employee loyalty and independence in planned human resource management (Dubrin, 2012). A wide majority of organizations adopting a high performance work systems are likely to produce high organizational performance in work places where the employees are highly motivated. The high performance work systems are known to incorporate practices such as high level of training, information sharing, group based rewards, internal-merit based promotions, grievance procedures, cross-functional and cross-trained teams, skill based pay among a few other practices (Sadler-Smith, 2006). The need for these practices has informed the reason why HPWSs has been conceptualized. The conceptualization is distinct but interrelated Human Resource Management practices that together select, develop, retain and motivate a workforce (Sadler-Smith, 2006). Therefore, this paper is written to further better individual’s comprehension on the great value that the high performance work system holds in assisting the organization to achieve its specialized goals and objectives. It seeks to equip diverse stakeholders in diverse institutions with pertinent information on how performance enhancement is achievable in this competitive environment. Managers are bound to get knowledgeable on the imperativeness of adopting best business practices, HR management systems, reward programs, training of staff, employee motivation and the effectiveness of HPWS. The information is to help them in decision making on matters that touches on the institutions growth that requires immense understanding. Literature review The sole role of HRM department in an organization is to provide requisite support in achieving set objectives by developing and implementing strategies that are integrated with the business strategy (Armstrong, 2010). In doing so, the HRM aids in the development of a high performance work system that would mutually create a positive employment relationship between the management and employees; which would eventually culminate to a climate of mutual trust within the organization structure. A majority of existing organizations have currently introduced and adopted the High Performance Working Systems with an aim of fostering high organizations performance. Becker and Huseid (1998), described HPWS as an internally consistent and coherent Human Resource Management (HRM) system that focuses in providing credible solutions to the operational problems in institutions. It also helps in the implementation of the firm’s competitive strategy (Armstrong, 2010). In simple terms, HPWS has been described as a specific combination of the human resource practices, and work structures. It also covers key processes that maximize employee’s knowledge, expertise, obligation, and flexibility. It embodies several mechanisms of analyzing the current performance of the organization including how the performances can be further honed and improved. David Nadler originally developed the notion pertaining to sky-scraping performance work system with a credible purpose. The reason was solemnly to capture an organization’s ‘architecture’ that integrates the technical and social aspects of work (Sadler-Smith, 2006). The High performance work systems entail more participatory work systems that are subdivided into several components such as; a work organization that allows the work force to participate in decisions, human resource practices that are aimed to increase workforce skills, compensation and promotion opportunities that provide motivation to the employees and proper information sharing and involvement mechanism. Providing an opportunity for the employees to take part in the process of making decisions affecting the organization is among the parcel that entails the central feature of a high performance work systems. High performance work systems decentralizes the gathering and processing of information to non-managerial employees, who thereafter use the information in solving problems and later on make operational decisions. The main idea of an organization adopting a high performance work system is to create an environment that is based on employees’ involvement, commitment and empowerment. Unlike during the heydays where employees were hired to perform narrowly specified jobs with clearly outlined duties, today’s organization arena allow the employees to venture into other venues that would have a positive effect in terms of the organizational goals and objectives. The current organizational world relies on employee plan and business know-how that helps them to react to rising problems and opportunities. For HPWs to be a success, it is vital for an organization to share information such as the business performance, plans and strategies with their employees. The scope for decision making by the employees in an HPWS would be invalid if the non-managerial employees lacked the chance to convey and communicate their suggestions with their fellow employees and the organization’s management team. This should be done for the main reason of empowering the employees with the necessary information that will enable them to make stellar suggestions for improving the business position. This information would also at one time be of great benefit as it enables the employees to cooperate during some of the organizational changes (Fisher, 2011). The principle of shared information typifies a change in the traditional way of management as it instills a new mentality away from the old mentality which entailed only command and control with little or no participation by the employees. Human beings usually tend to align their efforts in situations where they will benefit in return. This also happens with employees who would always feel motivated to achieve more if and only their efforts are recognized. Employees tend to pursue outcomes that are first beneficial to themselves without the necessity of the activities being beneficial to the organization at large (Fisher, 2011). As one of the components of the high performance work system, compensation, reward and promotion to the employees play the key role of providing motivation to the employees in a specific organization. Indeed, when the rewards and promotions are connected to the employees’ performance, they pursue outcomes that are equally beneficial to them and the company. (Armstrong, 2010). Apart from this, the act of rewarding or compensating the employees would create a positive image to the employees eyes as they would feel appreciated and motivated to do more for the success of the organization (Dubrin, 2012). This would result in employees doing more than what they would have done in an aim of ensuring that the organization reaches and surpasses its set goals and objectives. Linking rewards of corporate performance ensures fairness that would motivate other employees to hone their array of skills that would also eventually lead to their recognition. Workers in an HPWS do also need stellar array of skills and knowledge apart from the skills related to their elected routine duties. For efficiency purposes, a large percentage of employees should be endowed with the basic skills, technical skills, leadership and social skills. These skills may be gained through training, which plays an important function in a high performance system (Van & Schaffner, 2003). An organization is in a position to increase and hone its workforce skills by employing the aspect of training their employees in various fields that are within the organization. Emphasis on teamwork involvement requires the employees to develop a broader and deeper comprehension in regard to the work processes performed by their fellow employees in the different fields that comprise the organization. Some of the organizations known to use HPW includes; the Meritor Heavy Vehicle Braking Systems which incorporated the HPW system through skill enhancement. This is particularly management and inter-personal skills in line with ideal or genuine frameworks, team-work skills, and the level of experience used on improvement objects, linking learning involvement and performance management (Adams, 2002). Being part of the workforce group in Halo Foods has made me realize the importance and essence of high performance work system in the world of business. Discussion Halo Foods has remained an icon in production and marketing of Snack Bars in Europe. The organization has the capability of producing well in excess of 200m bars per annum (Van & Schaffner, 2003). Established approximately 25 years ago, Halo Foods Com. has been vastly known to offer specialized, ideal and delicious products to a wide range of clients across the markets. Halo Food company has employed over 250 employees for which am glad to be part of the thriving work force. For years, I have bore witnessed the highs and lows that the company has had to face over the past recent years. However, after the recent alteration of human resource management and after adopting the aspect of HPWS, the company is currently flourishing as it still aims to reach the peak of success. Some of the changes involve an organization employing new mechanisms some of which are part of the principles of High Performance Work System. Some of the recently installed principles of HPW that have seen the company thriving include; Training and development as one of the principles has been adopted by the Halo Foods organization in an attempt to hone the employees’ skills and instill them with the necessary knowledge. Training mainly focuses on ensuring that employees are endowed with the requisite skills necessary for higher performance/productivity (Van & Schaffner 2003). It has always been a tradition for employees to get class training usually held for a period of 5 days per year. Training is highly necessary for organizations that aspire to operate within the competitive arm beat. The corporation also has an apprenticeship program that facilitates mentoring of young and upcoming leaders who can offer best professional input for development (Dubrin 2012). Most of the training programs held by the Halo Food organization were meant to instill knowledge and skills that were inclusive of interpersonal skills, problem-solving mechanisms and technical skills. The trainings also do emphasize on teamwork and for this reason, a vast majority of Halo Foods employees are equipped with knowledge and skills in relation to other different departments housing the Halo Foods Company. This has been done mainly through cross training where by the employees are trained in areas close related to their departments. It is with the necessary training that the organization is able to effectively produce the finest of the finest products that, as it reaches and surpasses a vast majority of customers’ expectations. The whole process has proved ideal and relevant has seen the company climb in the ladder of success with a massive margin of profits. The Halo Foods Company has also incorporated high compensation contingent on performance as part of the framework for High Performance Work System. The compensation package has been linked with performance in such a way that high performance by the employees can never go unrecognized. This has been done through incentives such as gain sharing, profit-sharing and employee stock ownership plans. Halo Foods organization usually does compensation with the main intent of aligning the interests of workers with those of the company. High performance work systems generally increase the intrinsic rewards of work and thereby enhance the employees’ satisfaction and commitment. Incentive pay practices has proved to be of great positive effect as it motivates the employees to do all their level best in ensuring that the company attains its set goals and objectives (Dubrin 2012). Employee involvement and participation, worker voice is one of the principles of High performance work systems that have for long been utilized by the Halo Foods Company. This has further been made to effect as the organization shares some of its important information concerning the organization to their employees. The employees on the other hand are deemed to sign a contract of confidentiality since most of the shared information is meant to be under discretion. This has been done through the company developing an effective communication system through which the employees would share suggestions as well as air their views and grievances. Unlike back in the heydays where employees were not given any chance to air their views and suggestions, Halo Foods Company gives freedom to its employees who would give their suggestions in improving the position of the company and in solving certain problems faced by the company. Some of the information that Halo Food Company shares with its employees are information about the business performance, plans and strategies. It is with information that the employees are able to make ideal suggestions that improve the business model in organizational changes. Indeed, a vast majority would feel more needed and committed to new courses of action if they were allowed to partisans in the organization’s decision making process. The act of information sharing within an organization and employee involvement or inclusion in the decision-making process would automatically make the employees to be more committed in their work with an aim of attaining the set organization’s goals (Adams, 2002). Conclusion According to the information in the discussion, it is observed that good performance work system remains to be an essential tool and weapon necessary for a stellar organizational performance. High performance work practices have also been recognized to be among the specific ways by which the human resource management contributes to its business strategy. According to several done research work, it has been realized that an organization can increase its performance by 20% through implementing high performance work practices (Stahl et al, 2012). Some of the said principles or aspects of the high performance work systems that are known to increase employees’ knowledge, skills and ability include incentive compensation, employee participation, selective hiring and sophisticated selection, extensive training, learning and development, team working, work life balance and lastly is the performance review, appraisal and career development. High performance work system has been adopted by many organizations for the main purpose of increasing employees’ productivity by maximizing their competencies, motivation, commitment, communication, involvement and flexibility. HPW system thereby remains to act as part of an organizational strategy for managing the employment relationship. Implementation of High performance work system is eminently imperative due to the need of rapid economic development and the competitive business arena (Rayner, 2009). However, not all organizations, which have adopted HPWs, have been able to bear the fruit of success. Therefore, the success of the high performance work system for any organization depends on factors such as the quality of participation, collaborative effort and inclusive decision-making. Others include the level of flexibility in which a company operates, the effectiveness of individual skills, team relationship with internal and external customers, and the aptitude of the team members to adopt and adhere to new demands and objectives (Appleubam, 2001). Recommendations The main objective of a high performance work system is to create a good conducive working environment as developing the individual employees. High performance work systems provide means for creating a performance culture that assists an organization in coming up with ways and techniques that would improve the organizations performance (Appelbaum, 2001). Three major approaches are recommended in adopting a high performance work culture in an organization. These approaches are; The implementation of high performance working through a high performance work system, The use of rewards The use of systematic methods of managing performance Performance management systems The implementation process involves the following steps; Building a business case for change where by an organization must find a way of convincing the employees that the changes are necessary and beneficial (Rayner, 2009). This should be later followed by establishing a communication plan through which an organization must create a two-way communication channels so that both the management and the employees are able to share information. Thirdly, an organization must ensure that the employees understand the changes and see them as being beneficial to them and to the organization at large. This is thus followed by implementation of the HPWs into the organization. After the implementation of HPWs, an organization must continually evaluate the system (Buchanan & Mccalman, 2010). Evaluation should always ensure that the performance meets the need of the organization. If an organization meets all the needs of implementing the HPWs without forgetting the vital HPWs principles, they will have definitely outcast their competitors thereby excelling in terms of meeting their goals and objectives. References Armstrong, M., & Armstrong, M. (2010). Armstrongs handbook of reward management practice improving performance through reward. London, Kogan Page. http://site.ebrary.com/id/10393226. Dubrin, A. J. (2012). Essentials of management. Mason, Ohio, South-Western/Thomson Learning. Stahl, G. K., BjöRkman, I., & Morris, S. (2012). Handbook of research in international human resource management. Cheltenham, UK, Edward Elgar Pub Van Horn, C. E., & Schaffner, H. A. (2003). Work in America: an encyclopedia of history, policy, and society. Santa Barbara, Calif, ABC-CLIO. Appelbaum, E. (2001). Manufacturing advantage: why high-performance work systems pay off. Ithaca, ILR Press. Buchanan, D. A., & Mccalman, J. (2010). High performance work systems: the Digital experience. London, Routledge. Adams, C. P. (2002). Selection of "high performance work systems" in U.S. manufacturing. Washington, D.C., Bureau of Economics, U.S. Federal Trade Commission. http://purl.access.gpo.gov/GPO/LPS95238. Rayner, S. R. (2009). Recreating the workplace: the pathway to high performance work systems. Essex Junction, VT, O. Wight Publications. Fisher, K., & Fisher, M. D. (2011). The distributed mind: achieving high performance through the collective intelligence of knowledge work teams. New York, AMACOM. Sadler-Smith, E. (2006). Learning and development for manager’s perspectives from research and practice. Malden, MA, Blackwell Pub. Read More