value can be obtained by treating people as strategic assets in the sense that
they perform activities that create advantage in particular markets. This is in
accord with the fundamental principle of economics that wealth is created
when assets are moved from lower-value to higher-value uses.
The high-commitment management approach
The high-commitment management as originally described by Walton (1985)
is based on the assumption that higher levels of performance from people,
and a belief that the organization is worth working for, are more likely when
employees are not tightly controlled. Instead, they should be given broader
responsibilities, encouraged to contribute and helped to achieve satisfaction in
their work.
This approach involves treating employees as partners in the enterprise,
whose interests are respected, who have a voice on matters that concern
them and whose opinions are sought and listened to. It is concerned with
communication and involvement. It creates a climate in which a continuing
dialogue between managers and the members of their teams takes place to
define expectations and share information on the organization's mission,
values and objectives. This establishes mutual understanding of what is to be
achieved and a framework for managing and developing people to ensure that
it will be achieved.
The high-performance management approach
The high-performance management aims to raise the performance of the
organization through its people. High-performance management practices
involve the development of resourcing, employee development, performance
management and reward processes that focus on the delivery of added value.
The best practice approach
This approach is based on the questionable assumption that there is a set of
best HRM practices and that adopting them will inevitably lead to superior
organizational performance. Most commentators agree that best fit is more
important than best practice, but when formulating HR strategies, many