High-involvement work systems : their effect on employee turnover and organisational performance in New Zealand organisations

Abstract

Organisations can create a competitive advantage through the way they design their human resource systems. High involvement work systems are considered to be a way to increase organisational performance and decrease employee turnover. However, the components involved are difficult and complex to define, and the synergy amongst the different components hard to evaluate. The literature suggests that the research is not uniform in its approach, and most research does not clearly define the variables involved or agree on the expected results of such systems. This research looks at high involvement work systems in the New Zealand organisational context, and relating these systems to employee turnover and organisational performance. The results of the study suggest that there does not appear to be a relationship between high involvement work systems, and employee turnover and organisational performance; but high involvement systems may contribute to increased labour productivity in New Zealand organisations.