Perceptual Effectiveness of High Performance Work Practices

 

Parveen Kumar

Assistant Professor, Department of Business Administration, Chaudhary Devi Lal University, Sirsa Haryana (India),

 

ABSTRACT:

Numerous theoretical and practical explorations have proved that perception of employees for any practice or phenomenon proves to be of paramount importance for its successful realization and facilitation. This becomes more vital and significant in the case of High Performance Work Practices, as institutionalization of HPWPs system marks with a high cost and time for the organization. When the employee perceives an activity positive and conducive for both organization and for them, then they will easily adapt them. Moreover optimistic view point about effectiveness of practices leads to collaborative synergy which will ultimately affect the individual and organizational performance in an affirmative way. The present paper tends to study employees’ perception regarding effectiveness of High Performance Work Practices in Indian insurance companies. Altogether, 35 HPWPs were accessed with the help of five-point rating scale.

 

 

 

INTRODUCTION:

Effectiveness is defined as the capability of producing a desired result within the constraints of the scared resources. Moreover when something is deemed to be effective, then it means that it is expected to have an intended or expected outcome, or produces a deep, vivid impression. Further efficacy, efficiency, and effectively are few terms that can be interchangeable or exchangeable with the term effectiveness. Elaborating the difference, the word effective is sometimes used in a quantitative way, "being very effective or not very effective".

 

However, neither effectiveness, nor effectively informs a user about the direction i.e. positive or negative. And hence the comparison to a standard cannot be done with ease. Efficacy, on the other hand, is the extent to which a desired affect is achieved. Further it elaborates the ability to produce a desired amount of the desired effect, or the success in achieving a given goal. Contrary to the term, efficiency, the focus of efficacy is the achievement as such, not the resources spent in achieving the desired effect. Therefore, what is effective is not necessarily efficacious, and what is efficacious is not necessarily efficient.

 

The present research paper discusses the perception of employees regarding effectiveness of thirty-five High Performance Work Practices which into consideration depending extensive literature review in the field of High Performance Paradigm and suitability and applicability in India insurance industry. These practices were subjected to five-point rating scale and numerical value ranging from 1 to 5 was assigned. Literature review highlighted the need of five-point scale, as effectiveness of any practice could not be accessed as effective and ineffective, as there could be many levels of effectiveness. Moreover different employees may see same level of effectiveness from different angles and may rate their effectiveness differently. So multiple rating scale is used further numerical value is assigned as 1 for Ineffective, 2 for partially effective, 3 for fairly effective, 4 for Effective and 5 for highly effective were assigned. HPWPs incorporates human asset pool of an association in work hones like ceaseless aptitude improvement and giving representatives a stage to draw in their belongingness for such an organization. So, path forward is to connect with employees with a thorough organization structure in building a solid dependable relationship among the worker and the organization. Additionally, HPWPs help to accomplish essential reliable system of collaborative and commonly win-win workplace in any association.

 

LITERATRE REVIEW:

High Performance Work Practices (HWPWs):

Abundant experimental and hypothetical proof of the positive impact of HPWS on efficiency and productivity of representatives is accessible (Kuhlmann et al., 2004). HPWPs have been observed to be decidedly connected with expanded authoritative readiness and creativity (Garg and Punia, 2017). Both nimbleness and creativity are additionally announced as key elements of execution magnificence (O'Regan, 2011). As indicated by Appelbaum et al. (2000) precise usage of a HPWS through rebuilding of the whole work framework is one of the productive strategies to accomplish more prominent work environment effectiveness. Numerous specialists have detailed that yield of representatives could be expanded through employment advancement. The mainstays of HPWS are established on three basic establishment stones: improving the activity, enabling the representatives and streamlining the work procedure. Hackman and Oldham's (1976) work attributes hypothesis gives hypothetical and test premise to enhancement endeavors of work profile. The hypothesis express that higher work execution and work inspiration could be accomplished through planning the activity in a way that augments expertise assortment, errand character, undertaking criticalness, self-sufficiency and input. HR specialists are required to concentrate on these precepts while outlining a vocation. Wood (1999) presumes that HPWSs focus on engaging and improving representatives through expanded data streams and devolution of choice making. In this way rehearses are regularly discovered decidedly related with expanded profitability what's more, dedication of the workers. Different researchers like Ichniowski et al. (1997), Arthur (1994), Huselid (1995), MacDuffie (1995), Garg (2015) and so forth have additionally alluded to positive relationship between HPWS and representative’s profitability and execution.

 

Analysts have likewise featured the positive collusion between execution of different human asset practices and engagement level of the workers which thusly expands execution of the representatives. Attributable to the solid connection between execution practices and worker engagement, these practices are otherwise called "high duty" or "high contribution" rehearses. Masroor and Fakir (2009) led an Indian protection industry contemplate on medical caretakers in Malaysia. The examination uncovered that with successful utilization of HRM rehearses, the level of expectations to leave the activity is impressively decreased. HRM rehearses are seen by representatives as a "customized" responsibility of association for them (social trade hypothesis).

 

This efficient hierarchical exertion for the advancement of workers is responded back to the association by representatives through inspirational states of mind and conduct (Hannah and Iverson, 2004). A definitive consequence of genius authoritative demeanor and conduct is execution streamlining. HPWS expands worker cooperation, group building and add up to quality administration that outcomes in bring down turnover expectations and expanded fulfillment and enhanced engagement of the representatives (Huselid, 1995; Pfeffer, 1998; Cho et al., 2006).

 

Employee Perception and High Performance Work Practices:

Yadav and Yadav (2013) reasoned that workers' observation and their readiness to adjust another work framework effectsly affect the achievement of a HPWS. Also, past investigations have featured the significance of workers' observation in various settings. A short dialog of such examinations has additionally featured the significance of worker's discernment for any execution administration framework. Workers' view of human asset administration has been every now and again examined among researchers. Takeuchi et al. (2007) expressed that representatives' discernment may influence work conduct and result, in this way enthusiasm for investigating representatives' discernment has expanded significantly lately. Besides, Collins and Smith (2006) found that examining workers' discernment encourages an association to comprehend representatives' conduct and desire in the association. Brushes et al. (2006) investigated representatives' discernment in awesome detail. They found a noteworthy connection between representatives' view of accomplishment toward continuous change exertion and saw feeling of skill. Further, Datta et al. (2005) inferred that worker maintenance, income, deals and benefits are corresponded with representative disposition and impression of work conditions. Nishii et al. (2009) likewise found a comparable kind of conclusion. They explained that the observation representatives have of HRM hones is connected to hierarchical result and efficiency. Assist numerous different investigations like Nishii and Wright (2008), Yadav and Yadav (2013), and so on., likewise demonstrate the significance of workers' observation. A gathering of representatives having positive and ideal observation for any hones is fundamental for improvement. This is especially significant on account of a HPWS as it comprises of a heap of practices.

 

RESEARCH METHODOLOGY:

The main objective of the present research study is to explore employees’ perception regarding effectiveness of HPWPs and to understand various distinct categories within HPWPs. The primary objectives of this study are as under:

• To examine employees’ perception regarding effectiveness of HPWPs.

• To explore segmentation of HPWPs through appropriate level of literature review and explore effectiveness level with the help of broader dimensions of HPWPs.

 

The present study is based upon exploratory-cum descriptive research design and is based on primary data. Random sampling has been used to collect data from insurance companies situated in Delhi-NCR region. Sample size is 250 respondents. Data has been collected through structured questionnaire comprising of 35 High Performance Work Practices as used by Punia and Garg (2012). The questionnaire used has been designed on a 5-point scale ranging from ‘Ineffective’ (1) to ‘Highly Effective’ (5). Further, while administering the survey, it has been ensured that data come from all categories like men, women, highly experienced to less experienced ones, and aged personnel to fresh recruits, etc. Reliability of data is checked with the help of Cronbach’s. Cronbach’s alpha of the present data is calculated as .81 and any value greater than 0.80 indicates significant reliability (Field, 2000). The same authors have reduced 35 HPWPs into nine broader factors with the help of factor analysis. Same nine dimensions are used for deep insight into prospects of HPWPs in Indian insurance companies.

 

RESULTS AND DISCUSSION:

Table-1: Employees’ Perception regarding Effectiveness of HPWPs

Source: Primary Data

 

Table-1 illustrates employees’ perception regarding effectiveness of HPWPs for all 35 High Performance Work Practices taken for research purpose. Here as per employees the most effective work practice is ‘Safe, healthy and happy work place with a mean value of 4.00 which lies in ‘Effective’ category of five-point rating scale. Moreover, High Performance Work Practices that are rated very close to the mean value of 4.00 are Quality circle (mean=3.82), Training and development (mean=3.82), Regular performance appraisal (mean=3.80), Team reward (mean=3.72), Incentive pay (mean=3.70), Job sharing (mean=3.20), Management By Objective (mean=3.90), Job enrichment (mean=3.70), Continuous improvement team (mean=3.76), Formal recruitment and interview procedure (mean=3.68), Flexi-timing (mean=3.68), Reward ceremony (mean=3.84) and Family insurance plan (mean=3.68). And none of the practice has been rated as ‘Highly effective’ by employees, as none of the practice has mean more than value of 4.00. Moreover most of the practices which are rated in ‘Effective’ category are part of traditional Human Resource work System. Further the table depicts that for two practices employees’ perception is rated in ‘Fairly Effective’ category of five-point scale. The above cited work practices are Counseling session with mean value of 2.94 only and Employee Stock Option Plan with mean value of 2.60 respectively. This is an interesting outcome as present time witnesses a lot of conflict and grievances. Moreover practices lead to physical, mental and psychological burden on all employees. In this background counseling sessions have become a necessary practice for all organizations. And ESOP has also been adopted around the world to empower employees through equity transfer. Thus the discussion highlights the need to implement Yoga and meditation and ESOP in Indian organizations. Hence employees have relatively less favorable perception regarding their effectiveness highlights the lacuna in practicing these practices as HPWPs.

 

Table-2: Employees’ Perception regarding Effectiveness of Nine Factors of HPWPs

Factor No.	FACTORS	Mean
F-1	Reward Oriented HPWPs- Incentive pay, Flexi timing, Team reward, Job  rotation, Job enrichment , Job sharing	3.52
F-2	Traditional HRM Practices- Regular performance appraisal, Competency and potential test, Post-retirement benefit plan, Training and development, Formal recruitment and interview	3.54
F-3	Value Creating HPWPs- Human resource audit, Human resource accounting, Yoga and meditation	3.16
F-4	Employee Engagement HPWPs- Attitude survey, Feedback mechanism, HRIS, Highlight best employee, Counseling session, Formal grievance redressal procedure	3.35
F-5	Team Oriented HPWPs - Problem-solving team, Continuous improvement team, Semi-autonomous team	3.39
F-6	Social and Safety Need driven HPWPs- Social gathering , Family insurance plan, Safe, healthy and happy workplace	3.71
F-7	Employee Empowerment HPWPs- ESOP, MBO, Quality Circle	3.44
F-8	Procedural Improvement HPWPs- Staff suggestion team, Team briefing	3.40
F-9	Psycho-Strengthening HPWPs- Surprise factor, CSR	3.26

Source- Factors are taken from Punia and Garg (2012), Availability data collected from structured questionnaire

 

Table-2 illustrates employees’ perception regarding effectiveness for nine factors extracted by Punia and Garg (2012). It depicts that employees’ perception is most positive for effectiveness of factor-6 i.e. Social and safety need driven HPWPs (mean= 3.71). HPWPs included in the factors are Social gathering, Family insurance scheme and Safe, healthy and happy workplace. It symbolizes the employees’ concern for informal and safety aspect of work life. Employees’ perception for effectiveness of factor-2 i.e. Traditional HRM practices and factor-1i.e. Reward oriented HPWPs come out be very close to each other. Their respective perceptual mean is 3.54 and 3.52. Here all factors are rated in ‘Effective’ category of five-point rating scale. Further employees perceive Value creating HPWPs i.e. factor-3 (mean=3.16) as least effective practice, thus organizations are required to publicize and institutionalize practices like Yoga and meditation, Human Resource Accounting, these high performance practices. So that employee can perceive real potential behind these high performance work practices. Further employees’ perception regarding effectiveness is adjudged across various parameter like gender, sector etc. Male employees rated factor-2 i.e. Traditional HRM Practices as most effective. The factor rated first with a mean value of 3.72.

 

Table-3: Variation in Employees’ Perception regarding Effectiveness of HPWPs

Source: Primary Data (Collected through a structured questionnaire),

* Significant at .05 level of Significance

 

Table-3 highlights variation and significance of variance in Employees’ Perception regarding Effectiveness HPWPs among life insurance & non-life insurance companies and also among public and private sector insurance companies. It is observed that Employees’ Perception regarding Effectiveness of HPWPs is higher in non-life insurance companies (mean=3.60) than that of life insurance companies (mean=3.37). But result of t-test states that difference in availability level among life and non-life insurance company is statistically insignificant. It is also reported that Employees’ Perception regarding Effectiveness of HPWPs is higher in private insurance companies (mean=3.68) than that of public sector insurance companies (mean=3.01). Further result of t-test states that difference in availability level among private and public sector insurance company is statistically significant. Thus, public sector insurance companies are required to institutionalize wide range of performance practices to elicit maximum level of performance from its available work force.

 

 

 

 

Table-4: Variation in Perception regarding Effectiveness for Nine Extracted Factors

Factor	Life	Non-Life	t-value	Public	Private	t-value
F-1	3.70	3.28	2.25*	3.31	3.71	5.06*
F-2	3.72	3.30	1.13	3.37	3.71	4.58*
F-3	3.16	3.15	0.35	2.86	2.46	0.48
F-4	3.44	3.23	2.56*	3.08	3.62	2.47*
F-5	3.50	3.24	1.57	3.14	3.64	2.16*
F-6	3.37	3.63	3.33*	3.61	3.81	1.43
F-7	3.47	3.40	1.59	3.21	3.66	1.02
F-8	3.67	3.03	0.40	3.20	3.60	7.35*
F-9	3.32	3.18	1.68	2.98	3.54	1.68

Source- Primary Data, * Significant at .05 level of Significance

 

Table-4 defines variations in Employees’ Perception regarding Effectiveness of HPWPs among nine extracted factors. It is observed that three factor out of nine extracted factors shows statistical significant difference in Employees’ Perception regarding Effectiveness of HPWPs among life and non-life insurance companies. The stated factors are ‘Reward Oriented HPWPs’, ‘Employee Engagement related HPWPs’ and ‘Social and Safety need driven High Performance Work Practices’. Further, five factors have statistical significant difference in employees’ perception regarding effectiveness of HPWPs among public and private sector insurance companies. The five factors are ‘Reward oriented HPWPs’, ‘Traditional HRM practices’, ‘Employee Engagement related HPWPs’, and ‘Procedural Improvement oriented HPWPs ’and ‘Team Oriented HPWPs’

 

CONCLUSION:

High Performance Work Practices positively influences organizational performance (Ichniowski et al., 1997; Barling et al., 2003; Van De Voorde et al., 2012). Other scholars have also provided empirical evidence favoring positive association between HPWPs and higher performance and productivity. The mutual gain perspective of High Performance Work Practices states that such HPWPs are beneficial for both employers and employees. Further, critical perspective argues that these systems benefit only employers and the impact on employees is still inconclusive. In both scenarios, HPWSs seem to have positive association with organizational outcome. In this conceptual background, the present paper has tried to explore employees’ perception regarding effectiveness of HPWPs.

 

The most essential duty of administrators is execution enhancement through compelling and profitable usage of HR hones. Likewise they ought to guarantee that a positive recognition for HR rehearses regarding support, trust, reasonableness and consistency are kept up among laborers. Positive view of workers prompts upgraded execution, diminished non-attendance and turnover. Administration could investigate different mindfulness building activities like courses, addresses, workshops, cross-industry preparing, and so on to fortify representatives' mindfulness for a training. This encourages change administration through unfreezing the old esteems and standards. The investigation has a couple of constraints. Initial, a bigger specimen size would have made the investigation more beneficial. Second, inferable from absence of past perceptions, the consequences of the investigation couldn't be thought about for progression or deviation. Facilitate the example was taken from just from four metropolitan zones, in this manner representativeness of test is additionally a matter of concern. Taking everything into account, sufficient interest in workers pushes the laws of the correspondence as foundations who have grasped and implanted this idea in their way of life will procure what they have sown.

 

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Received on 08.01.2018                Modified on 08.02.2018

Accepted on 21.03.2018           ©A&V Publications All right reserved