Aligning High Performance Work Systems with Internal Organizational Context: Case Studies from Sri Lankan IT Companies

Abstract

High performance work systems (HPWS) gained much interest in recent years as a human resource (HR) system contributing towardsorganizational performance. However, studies on HPWS and organizational performance have reported mixed results. While some found that HPWS result in improved organizational performance, later research revealed that HPWS do not always result in positive outcomes. This necessitates understanding on effective implementation of HPWS to achieve the desired outcomes. However, there is lack of research on how HPWS strength shapes the implementation of HPWS. Hence, we aim to bridge this gap by examining the implications of HPWS strength on the performance of Sri LankanInformation Technology (IT)companies. For this purpose, we deployed a case study approach selecting two companies. Interviews were carried out among 13 key informants representing senior management, HR personnel and non-managerial employees. Document review and direct observations were used to further collaborate the evidence from interviews. The findings supported the research proposition that to yield positive outcomes on organizational performance, there should be a strong HPWS,resulting in a positive attitudinal climate among employees.

Impact of High Performance Work System on Organizational Performance: A Study from Sri Lankan Cable Manufacturing Industry

“…However, additional efforts may be witnessed from the studies of Jayarathne and Shermila (2018), Saravanabawan (2017), Siriwardane and Silva (2013), Dayarathne (2014), Jayantha (2014), Cooray and Dayarathne (2017), Gamage (2013), Wernan (2016), Wickramasinghe and Liyanage (2013) and Iddagoda and Opatha (2018). Nevertheless, there is still an empirical gap, along with the need to conduct applied research on the impact of HPWS on organizational performance in the Sri Lankan context.…”

To Customize or Not? Contextual Factors and High Performance Work Systems: A Literature Review

“…Both the Sri Lankan government and private sector organizations have recognized the importance of the role HRM plays in the nation's growth and in achieving a sustainable competitive advantage in the global marketplace (Chandrakumara and Budhwar, 2005). However, the scarcity of research on HRM practices in Sri Lankan organizations limits the ability to see the big picture on the contribution of HRM practices on organizational performance in the Sri Lankan context (Cooray and Dayarathna, 2017;Opatha, 2009;Wickramasinghe and Gamage, 2011). To date, there has been little discussion about how HPWS is understood, interpreted, and implemented in Sri Lankan organizations (e.g., Caspersz, 2006;Wickramasinghe and Gamage, 2011).…”

Impact of Strategic Human Resource Management on Organizational Performance of the Cable Industry in Sri Lanka

“…Even though human resource is termed as the most valuable asset among other assets of an organization in the company mission statement and the annual report, whether human capital drive the business success is debatable since measurement of its outcome and output is often disregarded (Schuler, 1992). Specifically, in the Sri Lankan business context, Human Resource Management is yet a back seat role and a supportive function owing to play an inactive partnership with the overall corporate strategy (Cooray and Dayarathna, 2017). However, with the turbulent market conditions and inability for technology and innovation to sustain increased organizational results, utilizing human resource as the key source of competitive advantage through strategic alignment is of paramount importance (Storey, 2001).…”

“…Despite the increasing importance of SHRM, there is still a paucity of empirical evidences from the emerging nations like Sri Lanka, which have not been empirically tested (Cooray and Dayarathna, 2017). Therefore, this research focuses on exploring and studying the relationship between strategic human resource management and organizational performance, which is fueled by the argument that access to capital and technology are becoming less effective as they can be imitated by competitors and have limited improvisations.…”