The Effect of Human Resource Management High Performance Work Practices on Organisational Outcomes: A Sri Lankan Perspective

Abstract

High performance work practices (HPWPs) in human resource management (HRM) are practices considered to contribute to higher levels of employee performance and organisational productivity. They may be implemented through a best practice (universalistic), best fit (contingent) or integrated bundling (configurational) strategy. This study explores the extent to which the level of adoption of HPWPs in HRM  in Sri Lankan organisations influences selected measures of performance outcomes covering a broad spectrum of divisions, hierarchical levels and processes, including those reflecting the effectiveness of the HRM strategy. In addition, the relationship between seven groups of HPWPs and the selected performance outcomes are researched. The findings add support to existing research in a number of countries linking HPWP adoption with improved levels of performance outcomes. Although HPWPs influence some outcomes positively they also may have negative effects upon others. The results have indicated which practices most significantly impact upon different outcomes thereby providing organisational decision makers with a guide as to how HPWPs can be employed most effectively to achieve organisational objectives.

Key Words: High Performance Work Practices, Employee Performance, Organisational Productivity, Best Practice, Human Resource Management