An Insight into Effectiveness of High Performance Work System with Special Reference to Retail Sector

Abstract

Organizations today are facing increased competition more than ever before due to globalization, rapid technological advancements and demands for a higher quality and customer service. To meet these challenges and achieve a sustained competitive advantage, organizations must combine human resource practices into an overall High Performance Work Systems (HPWS) that enhances employee involvement and performance. Organizations that use HPWSs are associated with higher labor productivity and improved overall company performance. In order to be effective, work systems should achieve horizontal fit among various HR practices and achieve vertical fit between the HR practices and the organization's business strategy.

The first-line managers primarily play an important role in contributing to an effective HPWS. A growing body of research defines this group of managers as those who have direct supervisory responsibility for non-managerial employees, and are placed at the first-line level of the management hierarchy. They are a valuable asset for organizations as they spend more time than any other management level on leading and directing the subordinates in their day to day operations. Training first-line managers has become a task so mandatory that modern organizations should pay more attention to it today.

The majority of both current and past HPWS research findings available generally neglect the service sector as a stand-alone entity, so additional research is recommended to examine the effects and benefits of HPWSs in the new service economy, particularly in the Retail Sector.