High-performance work practices

Semester 3 Exam

Paper is taken to be reviewed:

The effects of high-performance work systems in employees’ service-oriented OCB by
Panagiotis V. Kloutsiniotis*, Dimitrios M. Mihail

Critical Synthesis

Research Objective
The objective of this research was to investigate the effect of HPWS On the employees’ work
engagement and service-oriented organizational citizenship behavior OCB with the creation
of a social climate and justice climate (Panagiotis V. Kloutsiniotis, 2020). Data collected for
this research was from the employees of Greek hotels who are in direct contact with the
customers that are the frontline workers.
This research was conducted on the Greek hotel industry mainly because the tourism industry
in Greek has a major contribution to the economy of Greek. The working conditions in Greek
were hampered due to the economic crises and these labor market changes can act as a barrier
to the implementation of HPWS so to find out whether HPWS is the best practice for the
Greek hotel. This research will provide valuable insights for hotel managers as the HPWS has
a positive effect on the well-being of employees and productivity and performance.
High-performance work practices refer to the bundle of HR practices that adds to the
employee’s skills and performance. It adds to the sustainable competitive advantage as the
employees become more motivated and they acknowledge the practices implemented by the
management and respond positively. HPWS has an impact on the attitude of the employees
which increases productivity, and they respond with the extra roles which help in the overall
organizational growth. The human resource management system has 3 components: the HRM
content, process, and climate. The climate plays an important role as it ensures that the
employees will develop the desired behavior for which the policies have been implemented.
The justice climate which refers to the climate in which all the employees are treated equally
is very important in the hospitality industry for staff motivation. It Builds the trust of
employees in the organization which has a positive effect on their performance. The service
climate of an organization affects the hotel’s competitive advantage. Service climate refers to
the rewards Because of the behaviors and procedures by which they provide service to the
customer. When employees are motivated and rewarded according to their performance, they
tend to show positive behaviors toward the customers. The other thing is organizational
citizenship behavior which is the extra roles played by the employees which affect the overall
organizational growth Like the extra efforts taken to satisfy the customers. These employees
build the image of the organization by taking extra initiatives for service delivery. HPWS
system Recognises the efforts put in by the employees and the employees reciprocate this
recognition through their positive behaviors and the extra rules for the overall organizational
development. It also affects the employee’s job satisfaction and commitment to their job.
Employees are more engaged they have clear system rewards and the effect of positive
behaviors, also they have better solutions for their customer complaints which increases
productivity.
Based on the above explanation the following hypothesis was made:
 The HPWS Perception of hotel employees Will be positively related to justice
climate, service-oriented OCB, and service climate
 Justice climate and service climate are directly related to service-oriented OCB
 Service climate and justice climate act as a mediator for the service-oriented OCB
 Work engagement acts as a mediator between the justice climate, service climate, and
the service-oriented OCB

Methodology (Sample and Technique)

In this research, the data was collected from hotels in Greek in 2019. A total of 10 hotels
were taken into the account, the HR managers were contacted and a questionnaire was
circulated. The questionnaire was to be filled by the employees who were indirect customer
contact. Hotel 809 questionnaires were circulated, and the response rate was 55%. The
employees were provided a 5-point Likert scale. As shown in the diagram the 5 things that
are HPWS, justice climate, service climate, work engagement, and service-oriented were the
main points of the hypothesis. Partial Least Squares Structural Equation Modeling (PLS-
SEM)” was used via “smartpls 3.2 to analyze the data (Panagiotis V. Kloutsiniotis, 2020).

Insights on results and findings

Results concluded that the employee’s perceptions of high-performance work systems were
directly related to the justice climate and service climate and service-oriented, hence
supporting hypothesis 1, hypotheses 2, 3, and 4 were also supported. The research shows that
the bundle of practices that are abilities motivation and opportunities have a significant
contribution to the development of justice and service climate. It was further discovered that
HPWS act as an indicator for the employees of the efforts of hotel management like fair
treatment for all the employees and the recognition of quality service behaviors. This
develops a positive work attitude and superior service quality and customer satisfaction
(Panagiotis V. Kloutsiniotis, 2020). The black-box issue investigates employee attitudes'
mediating role in the relationship between HPWS and potential outcomes (Panagiotis V.
Kloutsiniotis, 2020). The findings support the premise that HPWS has the power to build a
"trusting" work climate between employees and employers (Panagiotis V. Kloutsiniotis,
2020). As a consequence, HPWS not only encourages employees to go above and beyond
their job responsibilities but also enhances employees' impressions of the justice and service
atmosphere in their company (Panagiotis V. Kloutsiniotis, 2020).
Limitations of the research

There are a few limitations in the study, the first one is the cross-sectional nature, the study
was conducted on the data which was collected in spring 2019 so the issue of causality was
not examined. Secondly, the study was done from the data collected from the frontline
employees only. As an organization implements different HRM policies on various employee
groups so it becomes a limitation as the study goes only focusing the employees having direct
contact with the customers. A multi-level approach can avoid this limitation and can light
upon the actual contribution of HPWS in organizations (Panagiotis V. Kloutsiniotis, 2020).
Lastly, the study was focusing only the Greek hotels. HPWS can negatively impact the
employee’s health by putting undesired pressure and over productivity.

Reflection on the managerial implication

In the hospitality industry, the implementation of high-performance work systems is

necessary as it influences organizational citizenship behavior. Firstly, a just and service
climate is built through the different HR policies which have a positive influence on the
employees that add to their performance as they prioritize the service quality and the
satisfaction of consumers. They trust the organization And further reciprocate 8 through their
loyalty. So organizations should provide clear roles end directions about the work behaviors
required and emphasize the work environment which is just. The study indicates the 3
bundles of HRM that are abilities motivation and opportunities. Abilities can include
recruitment and selection, training and development which help the employee to fulfill the
demand of a job, and training increase the human capital. Motivation can include the security
of the job, performance management and incentives and rewards, disk and garages the
employees to perform better and come up with different solutions on the job. Job clarity and
decision-making will provide opportunities to become more engaged in their work. So this
AMO approach will contribute to favorable outcomes for the organization.

AMO is also useful in implementing a performance management system. Implementing

performance management systems is more successful when line managers have the (1) ability
and (2) motivation to carry out the tasks included in performance management, and (3) do not
encounter role conflict, which may interfere with their opportunity to apply performance
management (Decramer, 2018). Rigorous training, performance-based awards, and job
security all have a substantial impact on managerial trust. Trust in management mediates the
relationship between HPWS (extensive training, performance-based rewards, and job
security) and employee performance (creativity and innovation) (A. Jalali, 18 November
2021).
The Hospitality industry should emphasize the importance of incentive compensation by
increasing extrinsic job satisfaction and offering extensive service training to improve service
employees' intrinsic satisfaction and deep acting, resulting in favorable customer outcomes
(Pei-Chi Chen, 20 May 2021). Employee engagement is not adequate on its own; thus, a
suitable atmosphere that fosters employee participation should be developed. One of the most
prominent things is to maintain a high-quality connection between the employee and the
leader, as well as the employee and the team (Al-Tit, 2020). Enriching a healthy working
environment promotes and activates employee outcomes such as creative idea
generation. Favorable social benefits combine with management effects and, as a result,
enhance the implementation of organizational strategies and creative techniques to attain
organizational goals. Positive social benefits include increased workplace engagement,
organizational trust, and organizational collaboration, which reduces work stress and conflict
and allows employees to develop and advance (Pei-Chi Chen, 20 May 2021).

Bibliography
A. Jalali, M. J. (18 November 2021). The indirect effect of high-performance work practices on
employees’ performance through trust in management. Journal of Facilities Management.

Al-Tit, A. A. (2020). The impact of AMO-HR systems on proactive employee behavior: The mediating
contribution of leader-member and team-member exchange.

Decramer, T. V. (2018). Line managers’ AMO to manage employees’ performance: the route to
effective and satisfying performance management. The International Journal of Human
Resource Management.

Panagiotis V. Kloutsiniotis, D. M. (2020). The effects of high performance work systems in

employees’ service-oriented. International Journal of Hospitality Management.

Pei-Chi Chen, N.‐W. C. (20 May 2021). Service-oriented human resource practices and customer
outcomes: the service-profit chain perspective.