30 Research and theory on high-performance

Researchandtheoryonhigh-performanceworksystems:progressingthehigh-involvementstreamPeterBoxall,DepartmentofManagement&InternationalBusiness,UniversityofAucklandKeithMacky,DepartmentofManagement,AucklandUniversityofTechnologyHumanResourceManagementJournal,Vol19,no1,2009,pages3–23Thenotionofahigh-performanceworksystem(HPWS)constitutesaclaimthatthereexistsasystemofworkpracticesforcoreworkersinanorganisationthatleadsinsomewaytosuperiorperformance.Inthisarticle,wedissectthisfuzzynotionandexamineitscompanionterminology:high-involvementworksystemsandhigh-commitmentmanagement.Wearguethatafocusonthehigh-involvementstreamusefullygroundsHPWSstudiesinanimportantareaofworkplacechangeinthecurrentcontextandtakesusawayfromeclecticandcontentiousselectionsof‘bestpractices’.Wereviewresearchmodelsandfindingsinthisstream.Thepathtobetterresearchliesinexaminingtheunderpinningprocessesexperiencedbyworkerswhenmanagementseekstopursuehigh-involvementsystems,andchartingtheirlinkstoemployeeandoperationaloutcomes.Contact:PeterBoxall,DepartmentofManagement&InternationalBusiness,UniversityofAuckland,PrivateBag92019,Auckland,NewZealand.Email:[e-mail]f‘high-performanceworksystems’(HPWSs)hassparkedwidespreadinterestoverthelast10–15years.CappelliandNeumark(2001)tracetheterm’spopularitytoaninfluentialpublicreport,America’sChoice:HighSkillsorLowWages!(CommissionontheSkillsoftheAmericanWorkforce,1990).Thisreport,concernedaboutthefateofUSjobsandhighlycriticalofTayloristworkorganisation,arguedthecaseforsubstantialinvestmentin‘high-performanceworkorganization’andhigherskills.Similarly,in1994,AppelbaumandBatt(1994)publishedTheNewAmericanWorkplace,arguingthatUSfirmsneededtofindtheirownversionofthesortofadvancedworksystemsseeninJapan(‘leanproduction’),Sweden(‘socio-technicalsystems’),Germany(‘diversifiedqualityproduction’)andItaly(‘flexiblespecialisation’).ThismessagewasreinforcedwiththepublicationofManufacturingAdvantagein2000inwhichAppelbaumetal.(2000)arguedthattechnologicaladvancescouldnotsavedomesticAmericanmanufacturing:reformstoworksystems,whilenotsufficientinthemselves,wouldalsobeneeded.Sincetheselandmarkpublications,concernabouttheabilityofadvancedindustrialisedcountries,generally,tosustaintheirdomesticmanufacturingHUMANRESOURCEMANAGEMENTJOURNAL,VOL19NO1,20093©2009TheAuthors.Journalcompilation©2009BlackwellPublishingLtd.capabilitiesinthefaceoffiercecompetitionfromChinaandotherlow-costmassproducershasonlyescalated(e.g.Konzelmannetal.,2004).Also,commentatorsnolongerrestricttheirconcernstomanufacturing:intheageoftheInternet,competitionforthelocationofserviceshasalsogrown.AttheBrookingsInstitutionTradeForumin2005ontheoffshoringofwhitecollarwork,JensenandKletzer(2005)reportedthatovertheperiodfrom2001to2003,70percentoftheUSworkersdisplacedbyglobalcompetitionworkedinservices,notmanufacturing.InterestinhowservicefirmsmightuseHPWSsasacompetitiveassetindifferentindustries,andacrossmarketsegmentswithinindustries,hasbeengrowing(e.g.Batt,2002;Boxall,2003).ThereisnowamajorbodyofacademicworkonHPWSs,traversingthefieldsoflaboureconomics,industrialrelations,strategicHRM,organisationalbehaviourandoperationsmanagement.WefindourselvesinthemidstofalivelydebateovertheimpactsofHPWSsonfirmsandworkers.Somescholarsseebenefitsforboth(e.g.Appelbaumetal.,2000)whileothersquestionthegainsforfirms(e.g.CappelliandNeumark,2001;Way,2002)orforworkers(e.g.Whiteetal.,2003),andsome,quiteproperly,questionthevalueforbothparties(e.g.Godard,2004).Wearealsoengagedinasignificantdegreeofsoul-searchingoverconceptualissuesandmethodologicalproblemsassociatedwiththeresearchstream(e.g.BeckerandGerhart,1996;Purcell,1999;Wood,1999;Godard,2004;WallandWood,2005;WoodandWall,2007).Ourparticularinterestliesinbringinggreaterfocustothisdiversebodyofliterature.OurobjectiveinthisarticleistoreviewthemainstrandsofHPWSresearchandlayoutanargumentforfutureresearchdevelopment.WebeginbyunpackingtheconceptofHPWSandexamineitsrelationshipwithitsmainconceptualcompanions:high-involvementworksystems(HIWSs)andhigh-commitmentmanagement(HCM).Wearguethatthehigh-involvementterminologyistheonebestconnectedtocriticalworkplacechangesinhigh-wagecountriesandtheonemostusefulforconstructingtheoreticalmodelsofHPWSs.Wethenlayoutaframeworkforfutureresearch,arguingthattheacidtestofchangeinHRsystemsturnsonhowemployeesexperiencethemajorthemesthatpermeatemanagementactions.Ourargumentisthatresearchneedstofocusontheactualprocessesexperiencedbyworkers–includinginvolvementandintensification–ifwearetounderstandhowHPWSsworktoinfluenceorganisationaloutcomesandhowtheycouldworkbetter.HPWS:WHATISINATERM?Logically,thenotionofHPWSconstitutesaclaimthatthereexistsasystemofworkpracticesthatleadsinsomewaytosuperiororganisationalperformance.Therearethreeconceptsexplicitlyembeddedinthisproposition:performance,workpracticesandsystemiceffects.TounderstandwhatismeantbyanHPWS,weneedtoexamineeachoftheseconceptsinturn.Letusbeginwiththelastoftheseelements:systemiceffects.ThesystemicnotionhasbeenreadilyidentifiedinanumberofHPWSliteraturerevie