Sustainable HRM: The synthesis effect of high performance work systems on organisational performance and employee harm

Purpose – The purpose of this paper is to examine sustainable human resource management (HRM) based on the synthesis and simultaneous effects of high-performance work systems (HPWS) on organisational performance and employee harm in five Asia Pacific countries.

Design/methodology/approach – Data collected using the CRANET survey instrument was analysed using two canonical correlation analyses.

Findings – This study found flexible high-performance work arrangements (FHPWA), such as tele-working and compressed working week could have a negative effect on organisational performance. However, it also found that employee benefits and trade union influence have a moderating effect on the impact of FHPWA resulting in improved organisational profitability and reduction of employee harm.

Research limitations/implications – Limitations include the aggregation of the data from the five countries and consequently the neglect of national institutional factors on the impact of HPWS on outcomes. A limited number of factors were used as indicators of HPWS, organisational performance and employee wellbeing/employee harm.

Practical implications – This study indicates particular HRM policies considered as part of a HPWS have different impacts on organisational profitability and employee wellbeing. There is a need for further research to determine the impact of particular policies and to also examine the interaction and moderating effects of high-performance work practices and trade unions.

Originality/value – This study contributes to the growing body of knowledge on sustainable HRM by examining the impact of HPWS on organisational performance and employee wellbeing. It is the first time this has been examined in Asian pacific countries.