(Solution) 7C002 Question 8: High Performance Work Practices Benefit Employers and Employees

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High Performance Work Practices; Importance to Organisations

In different published literature, high performance work practices (HPWP) is defined as holistic state of mental, emotional and physical health (Tuzovic & Kabadayi, 2021; Pradhan & Hati, 2022; and Yan et al., 2020). In supporting these definitions, CIPD (2023b) factsheet identified the HPWP as assisting in increasing resilience level, appropriate staff engagement, lowering sickness absenteeism, high performance and productivity.  This is achieved since HPWP is integrated in organisation purpose of championing better working and working lives. The outcome of this include delivering mutual benefits to individuals, organisations, economies and communities. The benefit of this include what Rasool et al. (2021) identify as creation of an environment that harness a state of contentment and mutual benefit to employees and organisations. For example, in Saudi Aramco, Post COVID-19 pandemic, multiple HPWP initiatives were implemented. The outcome of this was reduced number of employees absenteeism, burnouts and overall engagement levels in their assigned roles. As supported by CIPD (2023c) report, these have been achieved by the organisation being in a position of using a range of approaches including the employees assistance programs, mental health first aid training, wellbeing champions and promotion of flexible working options.

HPWP strategies; benefit to stakeholders (Employers and Employees)

There is no one-size-fits-all strategy of enhancing the HPWP. Nevertheless, the selected strategy should be influenced by the uniqueness of needs to be met and characteristics of the organisation and its workforce (CIPD, 2023b). The examples of applicable strategies include;

Flexible Working Hours and Employee Assistance Programs

Adopting the definition of CIPD (2023d), flexible working is a form of work arrangement which offer employees with a substantial scope of flexibility in terms of how long, where, when and what times they are involved in working. Currently, an upward of 51% or more than half of the employees note that flexible working arrangement is appropriate in their role with the numbers increasing. In past 6 months, more than third of organisations at 40% have recorded an increase in requests made for flexible working.

Adopting the definition of CIPD HR-Inform (2023), the Employee Assistance Programs (EAPs) are a set of initiatives which are set for assisting staff with individualised, work-linked, concerns and issues which impact their job performance/wellbeing. In Shalton (2023) report focusing on global EAP, it hypothesis that as of 2022, the sector was worth $7,000 and projected to increase with 5.5.3% by 2023 to be approximately $9,500 million by 2027.  In Saudi Aramco, through EAP, a healthy working environment is developed with a capacity for attracting and retaining best and talented people. This is since as noted in AIHR (2023) a successful EAP lead to improved empathy, support system, understanding hence an increase in workplace morale and positive overall working environment.

Considering an organisation such as Saudi Aramco, to identify the impact of this strategy on stakeholders, Mendelow Matrix can be used to analyse the stakeholders.

 

Figure 1:Mendelow Matrix Analysis of Stakeholders

In category A, Saudi Aramco an employer’s end-users of their services can be classified here. In terms of the flexible working and EAP as HPWP strategies, they have a limited power of influencing organisation strategy for HPWP. Nevertheless, employers benefits indirectly as Gallup (2023) hypothesis that with employees feeling HPWP is harnessed, they improve in terms of customers engagement.  Also, Gallup (2022) noted that with through flexible working and EAPs, the employees commitment with their employers would be increased. This means they would be willing to serve their customers better by providing high-level quality services. Similarly, for the EAPs, they offer support to HPWP to offer them with an opportunity of focusing on their work roles. The best customers are attracted and also retained since the employees retention is harnessed.

In Category B, this include the employees stakeholders. They possess a high level of interest but a low level of power over their organisation. In regard to the two identified well-being strategies, HBR (2023) report hypothesised that for organisations offering flexible working opportunity and EAPs, they have a high-level positivity in their mental health as their issues are also shared and holistically discussed to be resolved. The rationale of this is that EAPs are appropriate for addressing the different issues through an improved work-life balance and while leading to substantial support HPWP. This is with 80% of the employees noting an improved work-life balance which has a direct implication on their overall quality of life. In Saudi Aramco, through flexible working strategy and EAPs, their employees are assisted in finding a balance, prioritising on their feeling of being cared for hence an overall increase in their productivity in HPWP. It is in this regard that Shalton (2023 argued that 81% of employees are loyal to organisations offering them with flexibility in their working. The outcome of this is the employees turnover reduced and overall quality of life.

Category C include the stakeholders who are the employers with high degree of power for influencing wellbeing strategy with low level of interest on their strategies. This category include the board of directors and management representing employer. The administration is concerned with ensuring that they initiate programs intended to improve their health and well-being. According to Kolomitro et al. (2020) unhealthy workplaces in terms of lack of appropriate wellbeing is projected to cost approximately $12.80 billion annually in terms of absenteeism, lowered productivity and staff compensation for physical health claims. For Saudi Aramco, their operations is informed by Adham and Hammer (2021) legislation requiring employees to pursue part-time working in a fixed-term contract arrangement. The outcome of this has been staff supplementing their income and protection of rights of staff and employers from the appropriate support offered through EAPs.

For category D, the stakeholders have high interest and high degree of power of influencing operations. These can include the investors in the organisation and government authorities. The role of government in flexible working and employee assistance programs is what is identified in Arab News (2023) that 78% of organisations lack measures for their staff. This is with 82% of them having no budgeted resources for implementing mental health services. Hence, by enhancing flexible working and EAPs, employees would be supported and facilitated to improve their wellbeing. Having the productive employees would also imply increased revenues which is passed to the government…….

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