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The effect of High Performance Work System on the Firm Performance

The High Performance Work System (HPWS) is the tool which can used to evaluate the performance of employees in any firm in different directions. The current study took the HPWS as an independent variable by taking this variable as a whole and not in parameters. The performance of the firm was measured by two parameters i.e. innovative performance and task performance while the mediating variable i.e. intellectual capital was measured by two proxies’ i.e. human capital and organization capital. The study used the mediating variable of intellectual capital among the high performance work system and firm performance. To get more precise findings for the intellectual capital the study measured the mediation by two proxies’ i.e. human capital and organization capital.The concept of HPWS (high performance work system) can be considered as the tool for the performance, competencies and employee motivation (Lawler et al, 2011). The concept of HPWS consists of different but related human resource practices which can be significant to enhance the selection process, high wage, compensation, performance appraisal system, merit following, competitiveness, job assignment and work empowerment (Messersmith and Lepak, 2013). Some of the studies argued that the concept of HPWS can lead to enhance the employee productivity as well (Guthrie, 2001), positive employee performance (Chen et al, 2007), low turnover (Gutherie, 2001) and enhanced firm performance (Huselid et al, 1997).

The concept of High Work Systems (HPWS) is an arrangement of interrelated HR strategies intended to upgrade firm employees: aptitudes, responsibility, and efficiency such that workers turn into a source of practical upper hand (Datta et al., 2005). Be that as it may, as there is no single concurred meaning of HPWS (Boxall and Purcell, 2003), distinct names have been utilized to portray these modern human asset rehearses, for example, high association work strategies (Guthrie, 2001), high duty performance (Wood and Albanese, 1995), superior work association strategies (Thompson and Heron, 2005), inventive HR strategies (Ichniowski, Shaw and Prennushi, 1997).

It has been generally acknowledged that individuals and performance of individuals are key components of upper hand (Boxall and Purcell, 2003; Pfeffer, 1998). Firms in this aggressive condition look to see how their HR can be overseen for upper hand. Research in this field progressively concentrates on the effect of groups of human asset performance strategies on firm execution. This varies from early looks into which stressed the impact of individual HR rehearses on execution. Significant examinations have discovered positive connections between alleged High work frameworks or key HRM and firm execution (Guest et al, 2003).

The role of human capital as a potential source of economical upper hand has as of late been the concentration of impressive enthusiasm for the scholastic and famous press. The present “terms of craftsmanship, for example, firm intellectual capital, learning work and laborers, and High work frameworks (HPWS) all mirror another enthusiasm for “individuals” as a source of upper hand, as opposed to a cost to be limited. By augmentation, firm intellectual resources and the authoritative frameworks that pull in, create, and hold them are developing as huge components in vital basic leadership. This development in the role of (HR) takes after specifically from the requests of quickly changing item showcases and the comparing decrease of summon and control firm structures. A gifted and persuaded workforce giving the speed and adaptability required by new market objectives has expanded the key significance of human asset performance (HRM) issues when conventional sources of upper hand (quality, innovation, economies of scale, and so on .) have turned out to be less demanding to mirror . Essentially, while the business sectors for different sources of upper hand turn out to be more proficient, the nuances encompassing the improvement of a High workforce remain a noteworthy hidden open door for some associations.

In the present economy the capacity to manufacture human capital and oversee learning is fundamental for accomplishment in any association. As indicated by Barney (1991), assets that give a source of supported upper hand for a firm are important, interesting, incomparable and non-substitutable. Human capital assets meet these criteria. Not exclusively does higher quality human capital offer some benefit for a firm, however excellent HR are uncommon and they are causally uncertain and socially mind boggling, making them hard to copy or substitute (Wright et al., 1994).

Human capital alludes to the aptitudes and capacities of people or the supply of information inside an association. While human capital is important for accomplishing an upper hand, the information held by people should likewise be passed along to others all together for its incentive to be appropriated and utilized. Subsequently, the compelling performance of information streams is essential for expanding the learning stocks that will maintain firm achievement.

The concept of High Work Systems (HPWS) has turned out to be exceptionally essential as a source of upper hand in the present focused business condition. Human asset performance capacities are critical for pulling in, choosing, holding, propelling and building up the workforce in an association. In the interim firm culture, considered as a type of authoritative capital may likewise be a driver for managed upper hand. Authoritative esteems, as the impression of association culture are attested to impact the key issues, for example, key change, performance basic leadership and furthermore shape representative responsibility and association’s communication with outside roleners. These two firm-roleicular assets may supplement each other and further utilizing firm execution. In thought with the asset based view, this paper tries to distinguish whether High human asset strategies are enunciated and freely upheld through authoritative esteems. The examination question of the investigation relates to whether chose associations consolidate segments of HPWS in their firm esteem proclamations (Ozcelik et al, 2016).

As per Chen et al, (2016), Extending from the point of view and writing of key human asset performance, this examination researched the conceivable connections among High work framework, mental adequacy, and representative results. This examination planned to see how High function framework influenced firm employees’ mental viability, and their worker results, including work fulfillment and undertaking execution. We found that superior work framework can enable firm employees to create higher level of mental viability, and in this way driving higher employment fulfillment and undertaking execution.

Tomer, (2001) underline that superior work framework (HPWS) utilizes an administrative way to deal with accomplish High through individuals, which in a general sense not the same as the customary various leveled or bureaucratic one. Way (2002) characterizes HPWS as a gathering of interconnected human asset rehearses that guide in evoking prevalent representative yields. Evans and Davis (2005) conceptualize HPWS as an incorporated arrangement of HR rehearses that are inside reliable (arrangement among HR strategies) and remotely fit (arrangement with firm technique).

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