Printer Friendly

Applying the high performance work system(HPWS) method to optimally manage human resources in small organizations.


Those organizations could claim that individuals are considered for them as competitive benefits, whether as technical technicians, or specialized professionals which offers appropriate services to customers or high--vision managers and etc. the current era, the human resources could contrarily be as a factor for success or failure of all organizations.

Researchers of management science believe that change and development in human labor is basic for all organization successes.

Since the most important factor of success and growth of organizations and finally whole society is the human forces. There is not any doubt that prosperity of any society lies in the human resources and for this reason, organization authorities specially concentrate on the staff training through the help of behavioral and human resources experts. because human force propose the solution, and deal with solving problems, achieve the productivity and generate efficiency and effectiveness of the organization. the human forces must have incentive and well be motivated to provide the favorable behavior and oriented with organization's goals.

Federal and non--federal organizations encounter with so many distinct management challenges which includes the being easy affected by new employees, difficulty in acquiring and maintaining skills, key talents, lack of legitimacy as organization's employer, not flexibility in staffing, not develop sustainable policies of human resources, persistence against organizational changes, .... It is especially important and vital how to manage human forces for newly--formed and emerging organizations, but importance and priority of them has not been realized for those research which have only dealt with studying large organizations, it needs to review and investigate these in small organizations. [2]

Because managing the human resources and small organizations vary clearly from larger ones in lagers organizations, numerous researchers have studied about human resources in small organizations, results of which indicate that organizational procedures for managing human resources, staffing, services compensation, training and development, performance evaluation, organizational change, wok relations, etc. have a deep effect on the organization's capability to coping with challenges and eliminating the needs and shortcomings and so the efficiency and Survivability of organizations depend on them.

One other benefit of being small, high flexibility and quick responsibility to economic conditions are not predictive.

In one review paper about human resources's management, Baron argue that the management field more benefits from more precise studying it in small and new organization and he proposes that small organizations which have established by the entrepreneurs, provide a potential and valuable and distinct business concept for examining principles and theories of human resources's management. human capital has been considered in small organizations as fundamental for them in any time.

A small and intermediate organizations attract extensive attention in east and southeast Asia and they were quite flexible and adaptable in turbulent and dense environments.

the year 1997, Asia financial crisis affected on those countries which one of the features is having large firms. The issue of miniaturization and restructuring is ongoing in many Asian corporations. The other mechanism which might give much flexibility to them by institutions, is to invent high performance and working systems method (HPWSs). our recognition of key challenges and needs in organizations are limited including establishing the organization, identification, legal registration, acquiring skills and vital capabilities, maintaining flexibility and developing activities.

Currently organizations seek to obtain better control over their business. Recognizing technological changes continual in technology, in order to satisfy or eliminate the needs and effectiveness demands in business future is considered as the biggest challenge for any organization and Corporation that it is long--standing wants. Correct selection and implementing these technologies is a key driver which will undoubtedly be lead to success [10].

Given to above--mentioned discussions and due to optimal human resources's management, it is necessary to look at many models of human resources's management in first stage and then we would provide the context of utilizing human resources ability in organization through designing one performance evaluation model based on the mood and atmosphere dominated on the organization. However the paper aims to mention firstly those proposed in terms of factors influential in human resource management, required infrastructures for developing and extending human resources's management, management models, performance evaluation infrastructures and usefulness, performance evaluation models and measures and etc. and finally the model of high--performance working system(HPWS) have been studied and reviewed as the logical method in Asian small organizations.

Performance evaluation:

Institutions and organization and executive organs with any commission, prospective, goal, and vision ultimately act in national and or international domain and they must response to customers, Clients and shareholders so that one Corporation that aim of which is profitability and customer satisfaction and organization set out the it's goal to fully and precisely implement obligations and help to realize development goals and proceeding of the country, must be responsive.

So investigating the result of performance, is considered as one important strategic process. Quality and effectiveness of management and its performance is the undermining of critical factors for development plan and social well--being accomplishment. Providing numerous services and producing much many goods and funding the costs from sources has been generated sufficient sensitivity for investigating goals accomplishment, persistently quality improvement, customer and civilians satisfaction enhancement, organization, manager and employee performance. If the pharmacy regulation is carried out correctly and persistently and from process viewpoints, then in federal section it will lead to enhancing and becoming responsive of executive organs and public trust to organization performance and efficiency and effectiveness of government. In nonfederal section also it would cause to enhance resources management, contributing international development, generating new capabilities, sustaining and enhancing world--class of Corporations and Institutions.

Performance evaluation definitions:

there has been different definitions about term "performance evaluation". In order to understand correctly any phenomenon or material it is necessary to define it so that it yields a common interpretation and understanding. The subject of performance evaluation also holds true under this rule. It should noted that by considering to relative similarity, the concept of evaluation must be defined in employee dimension, then at resource and facilities applying dimension, finally at organizational form.

Werder and Davis believed that the performance evaluation is a process with which the practitioner performance is measured and when is carried out correctly then employees, supervisors, managers and finally organization have benefited from it.

Casio defines the performance evaluation as systematic describtion of strength and weakness of individual or group in respect of committed tasks implementation.

The performance evaluation is described in a dimension that how to use the resources and facilities in the form of efficiency measures. If in the simplest definition, we assume the data to output ratio as efficiency, then the performance evaluation's system really a will measure the amount of efficiency about managerial decisions in respect of optimal use of resources and facilities.

The performance evaluation at organization dimension usually equals with activities effectiveness. Our intent from effectiveness is the amount of achievement to goals and plans with the feature of being efficient of activities and operation [16].

Generally, the performance evaluation refers to the process of assessing and measuring the performance of systems in significant periods such that the judged expectations and measures for evaluated system is clear and have been predefined [17].

The importance and necessity of performance evaluation:

consistently improving organization performance, creates the great power of synergy which these forces could support from the growth and development plan and generating the opportunities of the organizational eminency. Governments and organization and institutions attempt to proceed in these regards. Without investigating and knowing about the amount of progress and achieving to goals and without recognizing future challenges for organization and receiving the feedback and informing about the amount of implementation of set out policies and identify those cases which need serious improvement, consistent improvement of performance will not be occurred. All mentioned cases is not possible without measurement and evaluation.

Lord Kelvin as British physicist states about the necessity of measuring:

when ever we could measure what we talk about it and express in the form of figures and numbers, then we would claim that we know about discussed subject. Otherwise our knowledge and perception was incomplete and never will reach to the maturity stage [16].

Evaluation and measurement provide the performance of required feedback the following cases:

1--through tracking the amount of proceeding for sake of defined goals, it is revealed that the set out policies have been implemented successfully or no?

2--Through measuring the expected results of organization and also evaluating and measuring the satisfaction of employees and customers, it is revealed that have policies been correctly prepared or no?

3--Assessing and measuring the performance allow to identify the contexts which managers should consider more than ago, and contribute to identify the opportunities and limitations.

4--Assessing the performance will be caused to generate information for managers in managerial decisions because great part of the required information are provided for managerial decision makings via measuring and assessing the performance system.

Any attempt which has been carried out to reach success, should have a framework and the organization performance improvement should be based on process knowledge which is called performance cycle. Every plan of organizational performance improvements should start from performance measurement and then performance evaluation [5].

Performance evaluation process:

Every process includes a set of the activities and actions sequentially and in significant logical and objective order. In the process of performance evaluation, any model and trend are selected, during stages and meeting the following discipline and sequence must be made:

1--collecting the measures and dimensions and related trends and determining the measurement unit of them.

The Measures define the way of the organization's movement for achieving to goals. First look in collecting measures corresponds to the vision, mission, macro goals, long run and short run strategies and operational programs and also to main activities [16].

2--Determining the weight of measures, in terms of their importance and related score ceiling.

This means that how much is the importance of any of the dimensions and trend of measures? Have the measures the same importance or different importance? Which measure is most important and which measure is least important? For determining the coefficients and weights of measures, we could name many procedures such as Likert technique, Nominal group technique(NGT), Borda technique, expert choice method and Analytic Hierarchy Process (AHP) technique.

3--Standardizing and determining the desirable status of every measure

Determining the measure of performance and the amount of measure accomplishment on derived and obtained quantitatively and qualitatively and the performance growth rate in previous years averagely and moving average for two or several years ago with regarding to the special defined goals for that period and the concepts effective on the its accomplishment procedure. In determining the desirable status of measure's performance, we must act realistically and unambitiously and attract consensus of those units which are responsible for doing tasks and actions to that measure.

4--Noticing and warning the expectations and measures to the evaluated people:

in common methods of performance evaluation usually the evaluated people have been noticed from evaluation measures, they are suddenly encountered with scores and judges of evaluation. If we consider the main aim of the valuation as to grow and develop evaluated people, then it will be necessary to notice to staff before starting the period of evaluating our expectations in the form of measures until they could plan, organize, appropriately communicate and do other expected performance processes.

5--Assessing and measuring through comparing the really performance at the end of the evaluation period, with the good predefined standard.

In this stage the activities and consequences of organization employees will be assessed in respect of any measure. Also for any measure, we compare the real performance using the set of significant current reality and appropriate performance standards and then the required investigations should be carried out in respect to the goal achievement of that measure. In this Stage strength and weakness, opportunities and the organization treats will be identified in order to achieve our goals.

Driving and analyzing results:

Finally the required analysis was done and if possible, it should define the corrective actions for improving their performance of that measure. One note that in the performance results usually the dominant procedure and viewpoint is especially considered in performance evaluation.

Models and trends of performance evaluation system new trends of performance evaluation, quantitative model such as productivity with the added value procedure, efficiency criteria with effectiveness and efficiency procedure and profitability criteria with procedure of performance auditing ; and qualitative models such as descriptive and value criteria with procedure of organizational commitment and Morale and some many other criteria have been applied. At least there are seven measures for evaluating performance of one organization which are not necessarily distinctive from each other. These measures include: effectiveness, profit and profitability, interest and productivity, work life quality, innovation and creativity and quality. In continue, we will point out to most important and most common patterns and models of implementing the process of performance evaluation:

AHP pattern (Analytic hierarchy process):

the basic principles of this method includes:

A) Principle of drawing hierarchical tree,

B) Principle of compiling and determining priorities

C) Principle of logical consistency of judgments

decision--making based on AHP method includes various benefits such as understandable unit pattern, process iteration, aggregating and integrating judgments, interaction between option--forming agents, combining option utility, analytical and systemic procedure, not persist on linear thought, hierarchy structure and unknown measurement in compiling and determining the priorities [16].

quality management code: Iso:

a quality management code is strictly not introduced as one system for integrated assessment. This code discusses about how to manage the processes affecting on quality and define the requirements for this issue which all requirements and requisites should be satisfied for certificating it as appropriate. One of requirements which was highly emphasized in Iso edition 2000, is to measure the efficiency and the effectiveness of processes. Based on this standard, it should systematically recognize all exist processes in an organization and should measure the effectiveness and efficiency of them, and finally their analysis should have been caused to process improvement [7].

Performance pyramid:

one of the any system related to performance evaluation is the presence of one clear Association between performance measures in different hierarchy levels of an organization such that every one of units attempt to achieve to same goals. one of models which involve the circumstances of producing this Association is performance pyramid.

the goal of any performance pyramid is to communicate between organization strategy and its operation. This system of performance evaluation constitutes four levels of goals which are indicative of organization effectiveness and its internal efficiency. In effect, this framework reveals the difference between those measures which consider groups outside organization such as customer satisfaction, quality, timely deliver and the internal business measures such as productivity, time cycle and losses.

Balanced Score card (B.Sc.) code:

one of the most popular and known models of performance evaluation is Balanced Score card model which had been established by Kaplan and Norton and then developed and improved. This model suggests that in order to evaluate the performance of any organization, one must use a series of balanced measures until high--class managers could have a general vision in terms of four main organizational aspects. this different aspects will allow for response to four main questions [11].

Business process:

The described frameworks until now are of hierarchies type. There are other frameworks which encourage managers to take more account of horizontal flows of materials and information among organization. for example,one could name business processes which have been suggested by K.W. Bourne in 1996. This framework is very appropriate and applicable. based on this model in one organization, the inputs, outputs and results for determining measures and evaluating the performance includes :

The inputs: the skilled and motivated personals, customer needs, raw materials, capital and etc. processing system: products certificate, goods production, products delivering,.

Outputs: products, services, financial consequences, ...

Results: eliminating the customer needs, satisfying customers, etc.

Medori and Steeple framework:

This model is one of the comprehensive and integrated frameworks for auditing and enhancing performance evaluation systems. This procedure includes six interlinked stages. Like most other frameworks the start point of this model is also to define the organization strategy and success factors (as stage 1).

In the next stage, the organization strategic requirement with six competitive priorities includes: quality, cost, flexibility, time, timely delivery and future growth will be accommodated (Stage 2)

Then selecting appropriate measures using one checklist include 105 measures having complete definitions (Stage 3).

After that the performance evaluation system is audited to recognize the used current measures of firm (Stage 4).

in next stage, it deal with how to apply really measures and every measure has been described through eight components which includes : goal, pattern, equation, frequency, information source, responsibility and improvement.(Stage 5)

The final stage considers alternating revising the organization performance evaluation system as the form feedback. (Stage 6)

Contrary to so many other frameworks, this model goes further compared to simple guides and in practice could be utilized by the performance evaluation users. the most important advantage of this model is that it could be applied both as a tool for designing performance evaluation system and also for upgrading the system. Also in this model, a distinctive definition is given on how to understand performance measures. But the main limitation of this model occurs in the second stage, which the evaluation network constitutes six competitive priorities because as in the other models had been proved the performance measures must consider other various issues.

Shareholder analysis method:

Designing the performance evaluation system starts with recognizing the goals and strategies of the organization and for this reason the balanced score card model starts to design the performance evaluation system with this question : what are the wants of our shareholders? In really balanced score card models implicitly assume that only shareholders affect on the organization goals and other shareholders do not have any role in goals--determining. on the other hand, this model has neglected the effect of shareholders on the organization. neglecting the affecting differences of various shareholders in different environments is one of the main causes of failing some large firms to utilize this model. This model which has been proposed by Dr Lee, categorize the shareholders to two classes : key shareholders and not key shareholders. the key shareholders have direct control on the organization and their wants have been reflected in organization goals such as not key shareholders and shareholders from outside mechanisms such as market and culture for maintaining the own benefits and do not have any effect on the goals--setting (i.e. customers)

The management system by objective (MBO):

The philosophy of Mbo and the context of its emergence is based on this principle that at individuals evaluations instead their significant and behavioral features, their performance will be evaluated which has been determined based on the goals achievements.

In MBO firstly the macro goals of the organization are defined and then these macro goals will be transformed into micro goals through discussing and negotiating of various levels managers and finally employees and at the end they will pass to the same organization. finally individuals have been selected based on the micro goals achievement and are evaluated without regarding how to accomplish them.

Total quality management system(TQM):

TQM is considered as a specific philosophy and theory based on which the concept of quality and attaining customer satisfaction is circulated in whole organization. TQM constitutes the traditional flowchart instruments SPS, histogram, Pareto diagram, cause and effect diagram, shivrat control diagram and distribution diagram and this is true that Seven new TQM tools have been established based on the conceptual and logical thought. these seven diagrams including dependency diagram, relationship diagram, systemic diagram, matrix diagram, data analysis matrix diagram, predict diagram, are the main defects in the process determining and sampling.

The Malcolm Baldrige Criteria:

The Baldrige method is really one framework that contributes in implementing TQM concepts. in this method 7 criteria and the TQM implementation method are proposed. every organization which gains high score in auditing the Baldrige institution, Mocolm Baldrige award will be given to that organization. in effect the evaluations which are carried out in this method, aim to determine the amount of implementing Baldrige criteria which are the same TQM concepts. This evaluation could be carried out by the organizations as self--evaluation but for receiving the award, the auditors subordinated by the Baldrige institute should evaluate the organization. Seven criteria includes: leadership, business process management, financial consequences, applying the analysis information, strategic planning, human resources and focus on the customer satisfaction.

EFQM Excellence Model:

One other measured frameworks which have been widely used, is the EFQM excellence model. the EFQM model is a non--prescribed model which is consisted of nine criteria. the first five components of it are enablers and four components of it are called the results.

Human resources management in world arena:

The competitive environment of businesses is increasingly and quickly become globalized. every day more firms will enter to international markets through exporting their products and building plant in other countries and forming cooperation and participation with foreign firms. the Managers of large corporations (those corporations which have ten thousand or more employees) expressed that during several recent years they had been entered into the international markets. currently export consists 11 percent of GDP of US. since 1987 afterwards, this export has grown 12 percent annually. most of the organizations now operate in world economics. for those corporations which operate at less then full capacity, these countries can be a medium for increasing their sales and profit. secondly these corporations could benefit the no expensive labor forces in these countries. utilizing low price inputs and raw materials, extending the product life, etc are other causes which the corporations use to enter into the world markets for achieving them. According to carried out polls (3000) from line managers and the human resources manager from 12 different countries, international competition is the most significant factor affecting on the human resources's management. In this poll, globalizing the business structures and economics globalization are followed in 4th and 5th order respectively.

However, it is very difficult to make decision about when should we enter into the international markets and when should we build plant and other facilities in other country and human resources encountered with much problems.

The factors affecting on the human resources's management:

Those corporations which enter into the world markets, should become familiar with this reality that these markets have not characteristics similar to that of national markets. the countries vary with each other in different terms and this affects on the attractiing direct foreign investment in any country. These differences are determining factors of economic efficiency of trade activities in a foreign country and undeniably affect on the human resources's management involved in these activities. the international researchers have identified some factors affecting on the human resources's management in world markets.

Four main factors which are agreed by so many theorists include: culture, human capital, political legal system, economic system.


One of the most important factors affecting on the human resources's management in international level is national culture which a firm move towards it. culture includes a set of assumptions which are shared between the members of a society in that, these assumptions form beliefs about the universe, how functioning of it and valuable ideals. culture is important due to 2 causes for human resources's management. because culture frequently defines the effectiveness of various actions and activities of human resources's management. the cultural characteristics affect on the way of treating managers with subordinates and way of selecting appropriate activities of human resources's management. our culture could affect on the service compensation system. cultural differences affect on the communication processes and the organization coordination. Collectivistic Cultures acknowledge the group decisions and Participative management actions more than individualist cultures. generally betwen four above--mentioned factors, culture has the highest effect on the human resources's management in world area.

2--Human capital:

The amount of a firm to identify and maintain the qualified and authorized labor is one of considerable factors in making--decision in order to world markets entrance. Thus the human capital quality of one country is vital issue in human resources's management. Human capital refers to efficient and helpful abilities and capabilities which these abilities and capabilities consist of knowledge, skills and experiences that are valuable.

The countries have various levels of human capital. the quantity and quality of human capital of one country seriously affect on the decision of one corporation based on the entering to that country.Those countries having high human capital are considered as attracted places for foreign direct investment. Those investments create careers that need high skills.

3--Political--legal system:

The acted rules and legislation by the legislative system of one country could severely affect on the human resources's management. Political--legal system frequently introduces requirements to actions specific for human resources's management, such as education, service compensation, hires and fires. At broaden levels, legislator is the consequence and the product of one culture which exist in that (it result from that society's culture). So the current legislations in a specific country is frequently reflective of existing social norms about what is forming the legal and legitimate behavior.

4--Economic system:

The economic system of one country affects on the human resources's management in different ways. as it is remembered before, the one country's culture is closely related to the economic system of that country and these two systems sufficiently motivated for human capital development. in socialistic economic systems, because of the free educational system, there are abundant opportunities for human capital development. however in these systems, because monetary and financial awards are not granted for enhancing human capital, low motivation remain for human capital development. the health and being sound of the system critically affect on the human resources's management. those developing countries having high levels of health and hygiene, have higher labor costs than developed countries. also economic system has a direct effect on the human resources's management through taxes levied on the wages and salaries of individuals. in socialistic systems, the purpose is wealth distribution, so they take higher percentage income tax from better situation peoples. but capitalism systems allow individuals to possess more percentage from own income and thus this motivate the individuals. Shortly the countries vary in terms of culture, human capital, legislation system and economic system. these differences will directly affect on the type of human resources's management used in these countries.

The general framework for human resources development:

The career contexts of human resources development and human resources's management have been significantly increased at previous decade due to results for experimental learning and response to environmental change factors which is affecting, overshadow those things that occur inside the organizations. The terms of human resources development and human resources's management differently have been applied, however, in order to explain one domain of different philosophies and practices with people in the organizations, at first it should shortly be noted that how these terms must have been used to prevent confusion. the human resources development associates to learning and developing human activities in organizations and it help us to create special cultural conditions in which employees achieve to potential capacity in order to benefit the individuals and organization.

In this mode, human resources development find itself as very close to organization development in same align. promoters of human resources development have defined these notes in definitions related to human resources development as cultural development and processes which cause to encourage and integrate the organization and develop individual for attaining the organizational goals. we must seek the general mission of organization and the strategy of human resources development is related to it ; the main program in organization should be measured regarding to available human skills for implementing it and related solutions for determining that skills; the individuals at all levels in the organization hierarchy (organizational chain) should be contributed in responsibility and responsibility for human resources development; there should be a general and formal and systematic planning process for the organization and personnel department and human resources development.

The human resources's management as its name indicates, generally dealt with people management. Human resources's management includes all managerial decision--makings and those actions which are affecting on the nature of relations among organization and employees or human resources. human resources's management naturally has served as a field of personnel management which is rooted in the work of social reformers, managers of welfare offices, agreement among negotiators and human resources analysts. Fuller has emphasized on the real difference between human resources's management and traditional management. the holistic modern procedures and viewpoints are affecting on the human resources's management and state that so many people management tasks have been undertaken by the department of personnel experts and is now administered by the line managers as part of their regular affair. the personnel tasks are widely being complemented for supporting internal technical advice and this has been made concurrently with advancement in tasks of line managers. in effect the human resources's management is a conceptual subject between these two. in recent years, the strategic dimensions discussed in human resources's management include the followings:

1--Using planning

2--One continuous procedure for designing and managing the personnel system based on the employing policies and upon human resources strategy which has been validated by most theorists.

3--Combing the human resources activities and its policies in some business strategies

4--Taking account of organization employees as a strategic resource for achieving to competitive advantage of strategic aspects is critical because some great problems which have recently been found by the organization are the products of complexity and sudden and turbulent changes of those settings in which they work. In this situation, organizations must train how to work and how organize themselves.

The models of human resource management:

In the world and international organizations, the various models of human resources's management will be generated which include:

Ethno centrism model:

This model concentrates on keeping the group homogeneity until it could guarantee its performance and improve it. This model consists following those standards which have been used by parent corporation and therefore it makes foreign members of the group coordinated with its standards. such procedure has been long used by American corporations Appling which has been made through format regulations; (for example, McDonalds, Coca--Cola). in this plan, human resource's administration has decentralized existezce and their functions is only to control and execute. the advantages of this model include:

a) Expanding integrated and coherent organizational culture

b) Coordinating and unifying the organizational role--players But the limitations of this model include:

a) This model does not involve social--cultural features of various nations

b) This model cause to decrease diversity and consequently involves decreasing innovation

Polycentric model:

The main aim of this model is to use policies of human resource for local needs. So according to this model, decentralized units of human resource have been benefited from management autonomy. this popular slogan is the best example of this model. " think internationally, act locally ". Such model has been formed based on the mutual conversation among autonomous firms and it has been accumulated around one central office. Information exists in central organization and it legally evaluates and measures the activities of autonomous firms. Also central organization is responsible for expanding innovative ways.

advantages of this model include :

a) The human resources managers have relative autonomy

b) It consists multi--cultural work environment And the limitations of this model include :

a) It has not coherent policies in human resources. because decentralized departments of human resources have various wants and this cause to create conflicts between them and central administration.

b) It is exposed at risk of coherent organizational culture decay

Geo Centric model:

In this model, the firm is found as a network and is assumed as a structure. the firm has very numerous other firms which have equal rights. They join each other via financial, human and information flows. Those firms use this model, will apply the global strategies and have cosmopolitan employees. in this model, the competency idea has been emphasized. this idea is the main factor of internal promotion. The limitation of this model include:

a) Labor mobility reduction due to despair and hopelessness

b) Cultural differences hinder the conversation among members

c) Carrying out the evaluation and fair selection become difficult.

In order to apply this system, the human resources managers should provide contexts for mobility, homogenous evaluation approaches and standard learning programs.

Regiocentric model:

In this model, proportional to strategy and management, the world is divided into local homogenous regions which operate around autonomous local central offices. Local office of human resource is a connector among central offices and their members. This model and previous model have common features.

Human resources system in the world economics:

Human resources systems in east Asia and southeast Asia tend to have a hierarchy and being non participatory. Collectivisms as the dominant cultural issue has promoted a tendency for going to the stream and expressing conformity with labor sector and reluctance to take initiation in solving the problems and firms shifting toward new route. such the systems seek that become regulated with those corporations which are lowcost producers of most known products in where the efficiency is more important than flexibility (Laurel et al 2000).

However, shifting to flexible system which authorize the staff, is considered as the cultural issue and this approach may be required for ensuring competition in quick changes of the world market.

Globalization clearly involves increasing the competition so that those firms which have fixed and much share of the national market, they internationally compete for acquiring high performance, even though they leave own traditional market, new competitors from everywhere of the world will enter into their market. Quick response was a main factor for success of the organization and this issue lead the decision--making effectiveness level to low level.

So it is necessary to use many methods for managing human resources which reduce centralization and provide the context for more staff participation and it should attempt to yield acceptable approaches for optimal management of human resources via focus on the practice and the relationship between human resources's management and the organization performance. One of the most important of the approaches is the same high performance work system(HPWS) which it provides contexts for the organization flexibility via authorizing the human forces involved in the organization and also cause to increase the innovation and creativity that are basic frameworks of enhancing organization performance level.

In previous years, practical studies of much effectiveness had carried out on the human resources systems results of which cause to produce three following viewpoints on analyzing the human resources systems consequences over the performance by experts :


2--Contingency perspectives

3--and Combined perspectives

The globalization perspectives state that one could define the one status series of best performance which is utilized in any organization. this paper could draw a picture by authors such as Pefer who supports the decisive recruiting approach including job route, wide education, poll from laborers, collective participation in high levels of the organization performance.

The contingency perspective believes that effectiveness of recruitment approaches specially the organization business strategies are proportional to external factors. The combined perspective believes what is really important, is mutual effect of one series of human resources's management and synergy created by that approach which produce money for that corporation.

Finally, researchers seek the combined perspective of human resources's management approach's effect as whole on the corporations performance. This is sometimes described as internal competencies.

In contrast to the globalization perspective, the contingency perspective explains the external competency requirement. actually the combined perspective is consistent with both perspectives of globalization and contingency.

The Contingency perspective has an attractive and noticeable theory in western literature and it dealt with organization designing and management. About human resources systems, Schoeller in 1998 supposed and designed one behavioral series which is governed by the strategic organization requirement. Indeed these will be obtained through selecting human resources approaches such as employment, evaluation, training and development and wages and salary areas. Begin supposed a similar framework in 1997. Here we find one multirow series of system outputs which create staff competency and financial flexibility, ultimately all of that bring about efficient performance of selecting human resources system components. Despite logical research for a generated powerful framework, an optimal place among human resources system and organization system is a driver, rather written nowadays things are questions about the contingency perspective validity. high activities in global market require flexibility and outrival of other issues such as external competency which all of these research have recognized the HPWS applicability in order to enhance appropriate organizational performance.

The main causes of using HPWS method:

* HPWS enhance the competition and staff commitment and prepare them for continuous changes

* HPWS create the perspective various and complex ways in the world so more staff could realize the changes and appropriately respond to it.

* HPWS puts the firms in a place which have a reconstruction process and they adopt themselves with turbulent environment

* HPWS make employees more motivated to work because of effective compensation for their services due to their attempt and work.

* HPWS help to attract new staff and main qualified employees which are autonomous.

* HPWS increase the flexibility of available systems

* HPWS is served as a tool for firms effectiveness thus it will lead to improve economics and more growth

* Utilizing HPWS in lower layers of employees (except managers) increase the firm performance

* Any relation among HPWS and firm performance is balanced by firm business strategy

* In HPWS system, the organizations could better accommodate themselves with various strategies

* HPWS is a effective way for decentralizing in coordination and control sectors


Human resources could contradictorily be a factor for success or failure of all organizations. Effective management of human resources is one of the most important problems of small corporations which they have been encountered with it. Human resources in the organizations are considered as competitive advantage. Today situation implicates such that corporations have no other safe margin in its provenance and its survival is not guaranteed. Business competitors from other countries have ambushed for national markets and they wait until in first made opportunity they could grasp share of the market from national firms and broaden their dominance on these markets. organizations should put the continuous improvement principle as main agenda and activities until they attempt to survive and know themselves needed to presence in international and national arenas. this principle will not be achieved, unless one provide context for achieving to it via improving performance management. these improvements could be generated through receiving required feedback from internal and surrounding environment and through analyzing the strengths and weaknesses and opportunities and treats of the organization, responsibility and attracting customer satisfaction via creating and Appling performance evaluation system with the appropriate template. one of the most important ways to achieve the desirable performance is to use HPWS approach because one could provide context for prospering and optimal using individual's talents as a best way and through considering system flexibility which will be created, it increases performance level of the organizations.


Article history:

Received 5 May 2014

Received in revised form 20 May 2014

Accepted 25 May 2014

Available online 5 June 2014


[1] Adeli, Alireza, 2004. "evaluating the performance of police of Iran on establishing the discipline and security of Bam town " M.Sc. thesis, police university.

[2] Butler, J.E. and T.W. Lee, 2003. "Regional recovery and development: the role of HRM in East and Southeast Asia", Human Resource Management Review, 13: 367--72.

[3] De Cieri, H., R. Kramar, R.A. Noe, J. Hollenbeck, B. Gerhart and P. Wright, 2008. Human Resource Management in Australia. Strategy/People/Performance, 3rd ed., McGraw--Hill Irwin, Sydney.

[4] Dessler, G., 2007. Human Resource Management, 11th ed., Prentice--Hall, Englewood Cliffs, NJ.

[5] Ellahi, Shaban, 1999."organizational performance triangle", the series of papers of second festival of Shaheed Rejaeei; evaluating the performance of executive national organizations, Tehran, the administration and recruitment organization of Iran.

[6] Ghalayini, A.M., J.S. Noble and T.J. Crowe, 1997. "An Integrated Dynamic performance Measurement system for Improving Manufacturing competitiveness", International Journal of Production Economics, 48: 207--25.

[7] Gholami, Hussein and NoorAlizadeh, Hamidreza, 2002. " interaction and contrast " B.Sc., EFQM, the series of papers of first conference of national performance management, Tehran, Jahad university, Tehran university, management faculty.

[8] Intan Osman, Theresa C.F. Ho and Maria Carmen Galang, 2011. The relationship between human resource practices and firm performance: an empirical assessment of firms in Malaysia, Q Emerald Group Publishing Limited, ISSN 1751--5637 12(1): 41--48.

[9] Jones, F.F., M.H. Morris, & W. Rockmore, 1995. HR practices that promote entrepreneurship. HRMagazine, 40(5): 86.

[10] Kakouris, A.P. and G. Polychronopoulos, 2005. "Enterprise Resource Planning (ERP) System: An Effective Tool for Production Management", Management Research News, Emerald publications, 28(6): 66--79.

[11] Kaplan, R.S. and D.P. Norton, 1992. "The Balanced scorecard: Measures that Drive performance", Harvard Business Review, January--February, pp: 71--9.

[12] Katz, J.A., & T.M. Welbourne, 2002. Managing people in entrepreneurial organizations. Amsterdam: JAI Press.

[13] Lawler, J.J., S. Chen & J. Bae, 2000. Scale of Operations, Human Resource Systems and Firm Performance in East and Southeast Asia, Research and Practice in Human Resource Management, 8(1): 3--20.

[14] Melissa S. Cardon, Christopher E. Stevens, 2004."Managing human resources in small organizations : what do we know?", Small business and entrepreneurship., 4: 155--185.

[15] Najmi, Manoochehr and Zarei, Hussein, 2002. "interaction and contrast", B.Sc., EFQM, the series of papers of first conference of national performance management, Tehran, university Jahad, Tehran university, management faculty.

[16] Rahimi, Ghafoor, 2006. "evaluating the performance and continuous organization improvement", Tadbir mag, n 173.

[17] Tabarsa, Gholam Reza, 1999. "evaluating and determining the role of strategic contingencies on selecting the pattern of evaluating performance of public organizations ",the series of papers of second festival of Shaheed Rejaeei; evaluating the performance of executive national organizations.

(1) Ali Najjar zadeh Sharif Abad and (2) Sayed Ali Davoodi

(1) Ms.c Student of management, AzadIslamic university (Mashhad), Iran.

(2) Ms.c student of public management, Azad Islamic university (Zahedan), Iran.

Corresponding Author: Ali Najjar zadeh Sharif Abad, Ms.c Student of management, Azad Islamic university, Mashhad, Iran.

+98 9153116616, E--mail:
COPYRIGHT 2014 American-Eurasian Network for Scientific Information
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2014 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Abad, Ali Najjar zadeh Sharif; Davoodi, Sayed Ali
Publication:Advances in Environmental Biology
Article Type:Report
Geographic Code:7IRAN
Date:May 1, 2014
Previous Article:Investigating the relation of readiness to adopt organizational development and redesigning the organizational structure and process.
Next Article:Prioritizing suppliers of a petrochemical unit considering fuzzy approach (case study: Mobin petrochemical unit).

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters