Knowledge clip - HRM and labor productivity: does industry matter?
3 important questions on Knowledge clip - HRM and labor productivity: does industry matter?
Explain why industry capital intensity moderates the relationship between high-performance work systems and labor productivity and why this relationship is stronger in industries having a low capital intensity.
Capital intensity is associated with increasing employee skill levels (human capital). It is beneficial in organization with a low capital intensity because there is much to improve. In organization with a high capital intensity, it's less beneficial, because it's expensive and it creates an inflexible strategy
Explain why industry growth moderates the relationship between HPWS and labor productivity and why this relationships is stronger in high-growth industries.
High-growth industries are innovative, which asks for a different set of HPWS, such as a broad job description, more flexibility, decision-making and freedom to innovate and experiment which lead to a higher labor productivity.
Explain why industry product differentiation moderates the relationship between HPWS and labor productivity and why this relationship is stronger in industries having a higher product differentiation.
The set of HPWS will be different because there is a lot of innovation needed. By doing this employees are stimulated to improve and innovate, which is motivating and this lead to a higher productivity
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