HIGH COMMITMENT

High Commitment Human Resource System

Table of Content

Introduction1

Discussion2

High Commitment Human Resource System2

HRM Practices and Organisational Commitment4

Implications of High Commitment Human Resource Strategies6

Training7

Work Design and Empowerment9

Incentives at Work10

The Link between Commitment HR Systems and Firm Performance12

Conclusion15

References17

High Commitment Human Resource System

Introduction

Over the past two decades, research in strategic human resource management (SHRM) has demonstrated a positive the relationship between commitment human resource (HR) systems and firm performance (Singh, Bhagat and Mohanty 2011, 37). Commitment HR systems are used to elicit an employee's long-term commitment to the firm through the creation of employer-employee relationships that are relational as opposed to transactional in nature. This employment relationship entails some degree of open-ended and long-term investment in each other by both the employee and employer. In general, these HR systems are associated with such organisational outcomes as lower employee turnover, higher levels of productivity, improved customer satisfaction, and greater financial performance for firms in both manufacturing and service-oriented industries (Singh, Bhagat and Mohanty 2011, 37).

In spite of these findings, many firms appear to be reluctant to commit to employees over the long-term. SHRM scholars have observed that the spread of commitment HR systems has been slower than originally anticipated (Singh, Bhagat and Mohanty 2011, 37). In fact, firms are increasingly making myopic decisions with regards to managing its workforces. For example, downsizing or restructuring has become commonplace as a key cost-cutting move regardless of the firm's financial health. Yet, research has shown that layoffs lead to increased voluntary turnover and lower levels of organisational commitment, job satisfaction, and workgroup trust among surviving employees (Singh, Bhagat and Mohanty 2011, 37). Therefore, attention should be given to investigating those factors that both enable and constrain the use of commitment HR systems (Singh, Bhagat and Mohanty 2011, 37).

Discussion

Starbucks Corporation is a company that deals in coffee retail with an approximate 16,850 coffee shops spread in 40 countries. Its stores specialize in offering drinks, food coffee and tea as well as roasted beans. In the UK, the company runs shops that are owned while other shops are spread in airports and shopping centres owned as franchises constituting 8,000 of their units. The mission statement entails a goal to become the best coffee stores in the world through observation of various guidelines including appreciating diversity, social responsibility and suitable work environment. The company is also geared towards customer satisfaction profitability and excellence in service and product delivery.

High Commitment Human Resource System

During the 1970s, commitment HR systems came about as a result of employee disenchantment with the control-oriented approaches to workforce management stemming from Taylorism and increased competition from abroad (Andolsek & Stebe 2004, 181). These systems were based on the underlying philosophy that eliciting employee commitment would lead to enhanced performance. This represented a clear change in managing human resources in that commitment HR systems viewed employees as being integral to the success of the firm as opposed to being replaceable parts. Thus, these systems represented a paradigm shift with regards to workforce management (Andolsek & Stebe 2004, ...