7/28/2019 High Commitment HRM Rosa

1/12

High-Commitment HRM

Chapter 9

Strategic Human Resources

Baron & Kreps

7/28/2019 High Commitment HRM Rosa

2/12

What is High-Commitment HRM?

A general catch-phrase for an ensembleof HR practices that aim at getting more

from workers by giving more to them

7/28/2019 High Commitment HRM Rosa

3/12

Goals of high-commitment HRM

Employees work for the best interests ofthe organization

Employees are flexible and willing totake on different assignments

Employees work with their brains as well

as with their hands.

7/28/2019 High Commitment HRM Rosa

4/12

4

The Means of High-CommitmentHRM

Employment guarantees

Egalitarianism in word and deed

Emphasis on self-managing teams andteam production

Job enlargement and enrichment

Premium compensation

Incentive compensation based on team,unit, or firm-wide performance

7/28/2019 High Commitment HRM Rosa

5/12

5

The Means of High-CommitmentHRM (Contd)

Extensive socialization and training

Extensive job rotation

Open information

Open channels of communication

A strong culture Extensive screening

Strong emphasis on ownership

7/28/2019 High Commitment HRM Rosa

6/12

6

Connecting the goals and themeans

Four concrete steps:

1. Recruit employees who are capable andinclined to provide consummate effort

2. Train employees to fill in skill gaps, towork in teams, and to give necessarybackground about organization

3. Enable employees by giving information,opportunity, and authority required

4. Motivate employees to be flexible and to

use their heads and hands

7/28/2019 High Commitment HRM Rosa

7/127

Three flavors of High-commitmentHRM

Total Quality Management, TQM

Open-Book Management, OBM

The Traditional Top-Tier JapaneseOrganizations: High- Commitment ILM

7/28/2019 High Commitment HRM Rosa

8/128

One Size Does Not Fit All: Is high-commitment HRM for you?

High-commitment HRM: a very well-integrated system of highly

complementary individual HR practices,leading to an ideal workforce

The cost may be substantial

Difficult to change from standard formsof HRM to high-commitment HRM

7/28/2019 High Commitment HRM Rosa

9/129

Maintaining High-Commitment HRM

High costdoes your company compete oncost or quality?

Cost benefit ratio also depend on the externalenvironment on workforce demographics

Giving employees autonomy may also bring

inefficiency to the firm

7/28/2019 High Commitment HRM Rosa

10/1210

Moving to high-commitment HRM from moretraditional approaches involves

changing expectations and attitudes

Significant costs

Sources of potential resistance

Sources of potential resistance

Increased employee pressure & stress

Dont know or misuse the autonomy given

Resistance from first-line supervisors, middle

managers, unions, labor lawyers

Achieving High-Commitment HRM

7/28/2019 High Commitment HRM Rosa

11/1211

Achieving High-Commitment HRM(Contd)

Recommendation to help overcomeresistance --

Profit sharing

Simplicity and consistency in messagescommunicated through HR practices

Flattering stories in the business press

Promise of greater autonomy, security,training, information or other benefits toline employees.

7/28/2019 High Commitment HRM Rosa

12/1212

The Bottom Line

Evidence shows that the high-commitment HRM is beneficial to firms

High-commitment HR is an investment,and as with all investments, the paybackdoesnt come instantaneously or for free

It isnt for everybody or for everyorganization