New Models of High Performance Work Systems - Equality Authority

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Executive SummaryThis report highlights the findings ofa detailed survey of medium to largecompanies in the manufacturing andservices industries in Ireland. The researchset out to examine the nature ofmanagement and workplace practices inIrish-based private sector companies, andto explore how such practices are relatedto business performance outcomes.The research was jointly commissioned bythe National Centre for Partnership andPerformance and the Equality Authority, andwas carried out during 2006 by a researchconsortium from University of Limerick andUniversity of Kansas. Detailed survey datawas gathered from a total of 132 companies,using two survey instruments targeting boththe CEO (or MD) and the HR director in thesample companies.The researchers conducted sophisticatedmultiple regression analyses on the data toexplore a number of alternative models of10 >Table 0.1Summary of Multivariate Modelling of High Performance Work SystemsMODEL 1u Strategic HRMMODEL 2u Strategic HRMu PartnershipLabour Productivityu Greater use of SHRM associated withincreased labour productivity. SHRMaccounts for 12.4% variance (p
executive summaryHigh Performance Work Systems (HPWS). Theinitial model explored the standard set offactors associated with HPWS, which relateto strategic human resource managementin the company. However, the researchersthen expanded their analysis to examinefactors beyond strategic HRM, includingworkplace partnership, diversity and equalitymanagement, and flexible working systems.The results of the initial model of HPWSreconfirm what previous research bythe NCPP and others has shown – thatstrategic human resource managementpractices are clearly associated withbusiness performance outcomes, includinglabour productivity, innovation levels, andemployee wellbeing. The more novel findingsrelate to the discovery that other factors,including diversity and equality systems, andworkplace partnership systems, are positivelyand synergistically associated with significantlyhigher levels of labour productivity,workforce innovation, and reduced employeeturnover.The key findings from four alternative modelsof HPWS are highlighted in Table 0.1 below.< 11MODEL 3u Diversity and Equality Systemsu Flexible Work SystemsMODEL 4u Strategic HRMu Partnershipu Diversity and Equality Systemsu Flexible Work Systemsu Diversity and Equality systemaccounted for 6.5% of variancein labour productivityu No significant associationbetween FWS and labourproductivityu Four elements together (SHRM, Partnership, DES,FWS) account for 14.8% of variance in labourproductivity. While only SHRM is significant, otherthree variables are in a positive direction. Totaleconomic value in this sample equates to e44,399 peremployee, or almost e12,000,000 in the median sizedcompany with 270 employees.u DES accounts for 7.9% ofvariance (p
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