High Performance Work Systems and Boundary Less Organizations High Performance Work Systems are sets of work

practices that work together to leverage employees ability to create value. It is defined by HPWSs are generally
defined to include selective hiring, extensive training, performance-based pay, workplace empowerment, reduced status differentials, and sharing organizational information with employees (Appelbaum and Batt 1994). They are said to foster a commitment-based organizational culture (e.g., Arthur 1994; Huselid 1995; Khatri 2000). Losing employees under these circumstances can significantly increase costs (Arthur 1994; Gutherie 2001).

Practices include selection, training, mentoring, incentives, knowledge sharing mechanisms (Horgan/Muhlau, 2006; Isom- Rodrigues, 2006) Most effective when practices are mutually supporting or complementary (MacDuffie, 1995; Dunlop/Weil, 1996; Ichniowski, et al, 1996; Batt, 1999; Cappelli/Neumark, 2001) HR practices can improve org performance by increasing knowledge and skills (Becker, 1975) Investments in human capital not as readily duplicated as other investments (Barney, 1991) Sustained performance advantages from leveraging employee knowledge (Evans/Davis, 2005) Human capital takes the form of firm specific idiosyncratic skills, resulting in Increased employee problem solving (Snell/Dean, 1992) Improved customization by workers (Batt, 2002) HPWS work by enhancing motivation and commitment of workers Requires involving and empowering employees (Whitener, 2001; Caspersz, 2006) HR practices can increase control and involvement (Tomer, 2001; Ichniowski, et al, 1996) Can thereby increase firm performance (Rosenberg/Rosenstein, 1980; Estrin, et al, 1987; Ichniowski, et The phrase boundaryless organization was an integrative theme coined by Jack Welch, then and still chief executive of General Electric, when this giant corporations transformation was initiated in 1988. How should HR strategize . . . management must first view the organization not as a set of functional boxes, but as a set of shared resources and competencies that collectively define the organizations range of activities. Only then can

management address the more fundamental question: How does the organization create processes to ensure that all its shared resources and competenciesarrayed across the horizontal spectrumcreate value for customers? (p. 126) High performance work systems What do you think you have to do? Where HR might intervene Condence those debates . symphasise that down to set of key issues, the difficulties of implementing these systems Problems for managers High performance Work systems Ulrich, D. The Boundaryless Organization: Breaking the Chains of Organizational Structure HPWS HR Intervention Challenges Faced by HR sweeping change in operations that is required for their implementation. Current public policy, coupled with todays market, is failing to offer organizations sufficient incentives for implementing HPWS HPWS commits an organization to a profound change, one that involves a transformation of the relationship between employer and employee.. It is almost impossible to successfully implement high performance or high commitment work practices in the absence of mutual trust and respect. But trust is missing in many employment relationships. 1) high initial training costs, 2) the difficulties involved in satisfying shortterm oriented investors, 3) managerial inertia and resistance due to their conservative instincts and values and due to their uncertainty about what is required, 4) the existing relationship and contracts with labor unions, and 5) other institutional barriers such as U.S. labour law (Appelbaum and Batt 1993, pp. 4859). According to Appelbaum and Batt (p. 42), the institutional framework It would, however, be a mistake to think that HPWS can be installed easily by simply imitating the best practices at other companies. Making successful organizational investments in HPWS creates intangible, unique, firm-specific organizational capabilities that are not easily replicated (Becker et al. 1997, p. 41 according to leading HRM professionals, when the different managerial practices are combined into an internally coherent system involving alignment with existing organizational features (internal fit) and alignment with operating and strategic objectives (external fit)