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Which Way to High Performance? Comparing Performance Effects of High-Performance Work System Components in Small- to Medium-Sized Establishments

Author

Listed:
  • Jeffrey B. Arthur
  • Andrew O. Herdman
  • Jaewan Yang

Abstract

The authors examine variation in firm choices to invest in HR practices. They identify three approaches: investments in high-involvement programs (such as employee participation and teams); in high-commitment practices (such as internal promotions and job security); and in ability-enhancing selection and training programs. The authors test the performance effect of these choices in a sample of 165 small- and medium-sized hotel establishments (SMEs). They also consider how job-level differences in skill requirements and customer contact affect the relative effectiveness of these three groups of high-performance work practices. Consistent with the authors’ predictions, findings show that, on average, the group of high-commitment practices has the strongest relationship with SME performance. However, the performance effect of high-involvement practices is significantly stronger for front desk jobs compared to housekeeping jobs.

Suggested Citation

  • Jeffrey B. Arthur & Andrew O. Herdman & Jaewan Yang, 2021. "Which Way to High Performance? Comparing Performance Effects of High-Performance Work System Components in Small- to Medium-Sized Establishments," ILR Review, Cornell University, ILR School, vol. 74(2), pages 352-387, March.
    • Handle: RePEc:sae:ilrrev:v:74:y:2021:i:2:p:352-387
    DOI: 10.1177/0019793919893668
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    References listed on IDEAS

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    Cited by:

    1. Paul Osterman, 2023. "Contract Employment: Measurement and Implications for Employer–Employee Relationships," ILR Review, Cornell University, ILR School, vol. 76(2), pages 320-356, March.
    2. Tor Eriksson & Jaime Ortega, 2025. "Organizational structure and high-performance work practices," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 34(3), pages 502-530.

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