Theory HR alignment with the corporate strategy High performance work Systems (HPWS) requires three important elements 1. Workplace opportunities for employees participation in decision making 2. HR practices that support and enhance workers skills 3. The incentive for employees to participate
AMO
Conceptual background and
Theory Research found that the clusters of HR practices have large effects on productivity. HPWS were associated with significantly lower turnover rates, greater employee productivity (sales per employee), and measures of financial corporate performance. For example, Huselid found that a one-standard-deviation increase in such practices is associated with a relative 7.05 percent decrease in turnover and, on a per employee basis, $27,044 more in sales and $18,641 and $3,814 more in market value and profits, respectively.