Question 14 Aresearch study finds a strong correlation between high-performance work systems (HPWS) and employee productivity. The study highlights features like employee decision-making power, access to financial information, and relevant training as key contributors. How does an Hipws lead to increased employee productivity? Increased decision-making power fosters a sense of ownership and accountability, motivating employees to perform better. Access to financial information creates competition among employees, driving them to outperform each other. Hpws features are expensive to implement, leading to pressure on employees to justify the investment. Shortiterm incentives dive workers to perform at a high level.

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To analyze how high-performance work systems (HPWS) lead to increased employee productivity, we can break down the key features mentioned in the study and their impacts on employee behavior and performance.

1. **Increased Decision-Making Power**:
   - When employees have the authority to make decisions, they feel a greater sense of ownership over their work. This empowerment can lead to higher motivation and engagement, as employees are more likely to take initiative and responsibility for their tasks. 
   - **Impact**: This sense of ownership can result in improved performance, as employees are motivated to achieve better outcomes and contribute positively to the organization.

2. **Access to Financial Information**:
   - Providing employees with access to financial information can create a competitive environment. When employees understand how their performance impacts the company's financial success, they may be driven to outperform their peers.
   - **Impact**: This competition can lead to increased productivity, as employees strive to meet or exceed performance benchmarks to enhance their standing within the organization.

3. **Relevant Training**:
   - HPWS often includes comprehensive training programs that equip employees with the necessary skills and knowledge to perform their jobs effectively. This training can enhance employees' capabilities and confidence in their roles.
   - **Impact**: Well-trained employees are typically more efficient and effective in their work, leading to higher productivity levels.

4. **Pressure to Justify Investment**:
   - The implementation of HPWS features can be costly, which may create pressure on employees to demonstrate that these investments are worthwhile. This pressure can motivate employees to work harder to show that they are delivering value.
   - **Impact**: While this pressure can lead to increased productivity, it is essential to balance it with support and resources to avoid burnout.

5. **Short-Term Incentives**:
   - HPWS may include performance-based incentives that reward employees for achieving specific goals or targets. These short-term incentives can drive employees to focus on immediate performance improvements.
   - **Impact**: When employees are rewarded for their efforts, they are likely to be more productive in the short term, as they work towards achieving these incentives.

In summary, HPWS leads to increased employee productivity through a combination of empowerment, competition, skill development, accountability, and incentives. Each of these factors contributes to a work environment that encourages employees to perform at their best.
HPWS increases employee productivity by giving workers more decision-making power, which makes them feel responsible and motivated. Access to financial information creates competition, driving employees to perform better. Relevant training helps them do their jobs more effectively. The cost of implementing these systems puts pressure on employees to show they're valuable, and short-term incentives encourage them to work harder in the short term.

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