Organisational issues
Organisational issues
Appelbaum and Batt (1994) in their review of various surveys of work practices showed that many organisations are failing to recognize the importance of HR practices. Many firms implemented a few innovative work practices but these practices were not widespread throughout the organisation.
Ichniowski et al. (1996) identified some barriers to diffusion such as; labour-management distrust and restrictive institutional and public policy. In addition, Appelbaum and Batt (1994) argue their is the dilemmas facing firms and managers; union and worker resistance and institutional barriers. However, these are merely suggestions as these academics did not undertake any systematic investigation of these barriers to diffusion of the HPWS.
There is also an issue with the relationship between the effectiveness of HPWS and organisational resources. Orlando and Johnson (2001) argue that firms with higher performance may simply have more resources to devote to their HR practices, despite any positive correlation between SHRM effectiveness and performance. In addition, some cross-sectional studies have identified a reverse causality with higher performing organisations implementing more effective HP practices and systems through changes in employee attitudes (Schneider et al 2003).
Also, the organisational strategy will influence the effectiveness of HPWS. Guthrie et al (2002) show that organisations which pursue a differentiation strategy, will benefit much more leading to increased levels of productivity. This is congruent with the research of Whitfield and Poole (1997) who state that organisational structure and culture can create problems, for example, HIWP in highly bureaucratic and formal organisations will be particularly problematic due to the resistant and rigid nature of change.
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