high performance management practices: definition and

BUITEMSQuality & Excellence in Education

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High Performance Management Practices: Definition and Measurement

Abdul Raziq

Faculty of Management Sciences, Balochistan University of Information TechnologyEngineering & Management Sciences Quetta, Pakistan

Abstract

The purpose of this study is to analyze the definition and measurement of High PerformanceManagement Practices (HPMP). The study analyze the definitions of HPMP that various authorshave used in their studies. This study employs four criteria to select the studies for assessingthe definitions of HPMP and identifying what practices constitute HPMP. The analyses indicatethat recruitment, selection, training, compensation, performance appraisal and employeeconsultation are the most frequently analyzed practices used in defining and measuring HPMP.Finally based on the analyses, the study concludes with its own working definition of HPMP.

Keywords: High Performance Management Practices;Recruitment; Selection; Training;Compensation; Performance Appraisal; Employee Consultation

Corresponding Author’s email: [email protected]

INTRODUCTIONThe recent literature has used the term HighPerformance Management Practices (HPMP)in various ways. For example, highinvolvement(Bryson et al. 2005; Gollan 2005;Guthrie et al., 2002), highcommitment(Whitener 2001), highperformance work systems (Beltrán-Martínet al. 2008; Chow 2005; Datta et al. 2005; DeKok & Hartog 2006; Drummond & Stone2007; Hartog & Verburg 2004; Murphy et al.2007; Takeuchi 2009; Tsai 2006; Way 2002),high performance work practices(Bae et al.2011; Connolly & McGing 2007; Huselid1995; Zhang & Li 2009) and highperformance management practices(Wiesneret al. 2007). Although various terms areemployed and they are usedinterchangeably, they all refer to the samephilosophy (Evans & Davis 2005; Pfeffer1998; Wiesner et al. 2007).

The objective of this study is to analyzedefinition of HPMP used in prior studies. Inthis regard, studies from 1995 to 2011 areanalyzed in the light of certain criteria suchas the use of HR practices/approaches;managerial practice ; HR outcomes/HRsustainability; firm performance/competitive

advantage. Moreover, this study alsofocuses on how HPMP is measured invarious studies. Studies from 2000 to 2011are analyzed by looking into the frequency ofHR practices used.

Defining HPMPVarious studies have been conducted acrossindustries, identifying a number of specificHRM bundles. The 1980s era wasrepresented by the collective use of specificpersonnel practices such as problem solvinggroups, job flexibility, team working andminimal status differences. The idea was thatthese variables would have a positive impacton sustainability outcomes (Wiesner et al.2007). The idea of HPMP became verycommon during the 1990s. Osterman(1994)conducted a national study of workorganizations in which he assessed theimplementation of four important practicesincluding TQM, quality circles, teams and jobrotation. Becker and Huselid (1998)suggested several guidelines including,careful recruitment and selection, rewardsystem and development strategies thatemphasis training and development.Moreover, Lawler, Mohrman and Ledford(1995) conducted a study of 279 top 1000


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Fortune manufacturing and servicecompanies and found that employeeinvolvement and TQM practices tend toimprove the firms’ performance.

The definitions that various authors haveused in defining HPMP is presented inTable 1. These definitions have been usedfirstly to determine the particular emphasisthat various scholars place in definingHPMP and to derive a working definition ofHPMP in this study.

Consistent with the criteria used by Walland Wood (2005), the researcher of thisstudy employed four criteria to select thestudies for assessing the definitions ofHPMP and identifying what practicesconstitute HPMP. Firstly, studies werechosen based on highly reputable journalsto ensure quality and frequency (highlycited) of studies (see for example Gollan2005; Huselid 1995; Wood & Menezes

1998). Secondly, the selection wasrestricted to studies from 1995 onwards,when research on High PerformanceManagement Practices initially started toemerge. Thirdly, only those studies wereincluded, that covered the concept of ‘HighPerformance Management System’ or‘High Involvement Management’ or ‘HighCommitment Management’ or ‘HighPerformance HR practices’, or ‘HighPerformance Management Practices’because the focus of this section is onassessing the definitions of HPMP andexamining what practices constitute HPMP.Studies focusing merely on strategichuman resource management or simplehuman resource management have beenexcluded. Finally, a focus of recent studieshas been emphasised in order to see thelatest views on the concept of HPMP. Theselected studies are presented in Table 1.

Table 1: Definitions of HPMP and the main themes in these definitions



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It is clear from Table 1 that four mainthemes emerged in the analysis of thedefinitions. These include the use of HRpractices/approaches; managerial practice(wider interpretation); HR outcomes/HRsustainability; firmperformance/competitive advantage. Forthe first theme, 21 out of 27 studies haveused HR practices in their definitions ofHPMP. This shows the importance of HRpractices/approaches in defining HPMP.For the second theme, only six studies haveused the concept of managerial practices.For the third theme, the majority of studies(22/27) used HR outcomes in definingHPMP. Finally, for the firm performancetheme, most of the research articles (21 outof 27) employed this concept.

Measuring HPMPThe discussion now turns to what particularHR practices and/or managerial practiceshave been identified as constituting HPMP

or what concepts have been used tomeasure HPMP. It is clear from Table 2that the HPMP research studies show alackof consistency in what HPMP practicesthey include in the measurement of theconcept. In other words they have useda diverse set of HPMP in their studies.However, there seems to be consensusregarding some specific sets of practicessuchas recruitment, selection,training anddevelopment, performance appraisal,compensation, and consultation. Thefrequency of individual components ofHPMPin prior research work (from 2000 to 2011)is presented in Table 2.

Table 2: Frequency of individual HPMP in prior research studies from 2000 to 2011



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It is evident from Table 2 that recruitment,selection, training, compensation,performance appraisal and employeeconsultation are the most frequently analyzedpractices in researchstudies.

CONCLUSIONThe objective of this study was to analyzethe definition and measurement of HPMPused in various prior studies. Within thecontext of definition of HPMP, studies from1995 to 2011 were analyzed in the light ofcertain criteria such as the use of HRpractices/approaches; managerial practice;HR outcomes/HR sustainability; firmperformance/competitive advantage. Thus,based on this analysis, it can be concludedthat researchers view HR practices; HRoutcomes and firm performance as themost important components of the conceptof HPMP while managerial practices areconsidered less important in researchstudies when defining HPMP. Moreover,this study also focused on how HPMP wasmeasured in various studies. Studies from2000 to 2011 were analyzed by looking intothe frequency of HR practices used. Theanalyses also found that most of authorshave used recruitment, selection, training,compensation, and performance appraisaland employee consultation as frequentlyanalyzed practices in defining andmeasuring HPMPs. Finally, the studyconcludes with the following workingdefinition of HPMP. HPMP is a set ofhuman resource management practices(Recruitment, Selection, Training,Remuneration, and Performance Appraisal)and managerial practices that enhanceemployee involvement and participation,which positively impact upon HR outcomesand organizational performance and/orcompetitive advantage.

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