Research on the execution of performance related pay by the OECD, has discovered that mere higher pay does not motivate the majority of staff. Employees are motivated by holism job designing with High Performance Work Practices (HPWP), work which is competent with skill, novel ways of coordinating work, satisfying performance and better employee involvement in the decisions of the organisation. HPWP has the prospective for producing the personality of the employee and output of the organisation. These practices are established on the comprehension that employees are the key of an organisation and so they expect to be treated equitably.
Studies prove that the HR systems of high performing companies have several things in common. "High Performance Work Systems" (HPWS) create more job appliers, monitor candidates more efficiently, offer more and improved training, connect pay more openly to performance and provide a more dependable work environment. The vital challenge confronting human resources management is to make available a set of services that is logic in terms of the company's premeditated plan. A tactical plan is the company's sketch of how to match its inner strengths and weakness with outer opportunities and threats so as to uphold a competitive gain.
An organisation which has greater involvement and responsibility on the part of employees is said to have implemented a set of management practices of High Performance Work System (HPWS). Bohlander et al (2004, p. 690) defines HPWS as "a specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment and flexibility".
Barnes (2001, p. 2) states that the notion and thoughts for high performance work systems has conceived its roots from the late twentieth century. It was during this time that the manufacturing industry in America had recognised that global competition had got in and they wanted to reorganize the 'tried and true' manufacturing procedures.
Elements of High Performance Working:
Figure I showing Elements of a High Performance Work System (Ren Li Zi Yuan Guan Li Ji Chu, 2004)
The first element of HPWS is the notion of "increased opportunity to participate in decisions" (Barnes, p. 9) for employees. The capability for an employee to take part in the decision making process is believed to be one of the most important components of an HPWS as it permits the employee to make decisions that affect their instant environment and this in turn affects the whole organization. This contribution results in employees feeling more authorised and in turn leads to a more dedicated workforce, at least in theory.
The second element is training. Training helps employees to acquire the required skills to carry out their jobs in a more efficient manner and the chance to presume better responsibility inside an organisation.
The third element is employee incentives. Organisations will have to find a way to connect pay with performance. According to Bohlander & Snell (2004, p. 698), if an employee has to focus "on outcomes that are beneficial to themselves and the organization as a whole" then incentive should play an important role.
Technology is yet another element which in addition to the 3 elements of involvement, training and incentives, makes up yet another important constituent of modern day HPWS. According to Bohlander &, Snell, (2004, p. 699) "technology does not have to be leading edge technology solutions, but it does