Which Way to High Performance? Comparing Performance Effects of High-Performance Work System Components in Small- to Medium-Sized Establishments

Abstract

The authors examine variation in firm choices to invest in HR practices. They identify three approaches: investments in high-involvement programs (such as employee participation and teams); in high-commitment practices (such as internal promotions and job security); and in ability-enhancing selection and training programs. The authors test the performance effect of these choices in a sample of 165 small- and medium-sized hotel establishments (SMEs). They also consider how job-level differences in skill requirements and customer contact affect the relative effectiveness of these three groups of high-performance work practices. Consistent with the authors’ predictions, findings show that, on average, the group of high-commitment practices has the strongest relationship with SME performance. However, the performance effect of high-involvement practices is significantly stronger for front desk jobs compared to housekeeping jobs.