New Models of High Performance Work Systems - Equality Authority

new models of high performancework systems20 >3.2 Strategic Human ResourceManagement (SHRM)3.2.1 OverviewThe first theme examined is strategic humanresource management (SHRM). This hasbeen the traditional focus of HPWS research,and in many instances the term SHRM isused interchangeably with HPWS. SHRMis generally understood as a set of interrelatedHR practices that include staffing,performance management and remuneration,training and development, communicationand participation. The common theme in theliterature on SHRM is a set of practices thatprovide employees with skills, information,motivation and latitude, resulting in aworkforce that is a source of competitiveadvantage. Huselid’s (1995) landmark studyexamined the relationship between theuse of high performance work systems andcompany performance. His main finding wasthat greater use of these types of SHRMpractices was associated with decreasedturnover and higher levels of productivityand profitability. Similarly, Flood et al. (2005)highlighted the economic benefits associatedwith high performance work practices inpeople management, employee involvement,and training and development. 103.2.2 Measuring SHRMIn measuring SHRM practices, researcherslooked separately at two categories ofemployees. Group A comprised production,maintenance, service and clerical employees,while Group B comprised executives,managers, supervisors and professional/technical employees.For this study, 18 survey items werecompiled to create a SHRM Index, 11 whichresulted in each company receiving a singleSHRM score on the index. The 18-itemSHRM Index incorporated practices in areasincluding staffing, performance managementand remuneration, training and development,and communication and employee participation.Using the number of employees ineach occupational group, a weighted averagefor each practice was computed. The SHRMIndex had a Cronbach’s alpha reliabilityrating of 0.85, giving confidence that theSHRM Index was a reliable indicator of theextent of its SHRM practices at the timeof the survey, and represents a state-ofthe-artprofile of SHRM in medium to largecompanies in Irish industry.Table 3.1 highlights the 18 items and theiraverage score for each occupational group.The SHRM Index yields an average scoreof 48.81% across all companies and bothoccupational groups.10 In their report, Flood et al. (2005) categorised the three main areas as four components in terms of staffing, performancemanagement and remuneration, training and development, and communication and participation.11 Based on methodology employed previously by Huselid (1995), Guthrie (2001), Datta et al. (2005), and Flood et al. (2005)