The Effects of Mutual Trustworthiness between Labour and Management in Adopting High Performance Work Systems

Abstract

In this study, we examine the role of mutual trustworthiness between labour representatives and management and its relationship with the adoption of High Performance Work Systems (HPWS) in the Korean employment relations context. We argue that trustworthiness is a feature of the parties to the exchange, as opposed to trust, which explains the nature of exchange relationships. We follow existing literature on trustworthiness and agree that it is composed of three variables, i.e., ability, integrity, and benevolence. We test the effects of these three variables as important antecedents for the adoption of HPWS at the workplace level. Using the National Establishment Survey 2009 conducted by Statistics Korea as a sample frame, we survey a representative sample of Korean establishments. These data consist of 1,353 paired responses from labour representatives and managers. Our results show that labour-management mutual ability trustworthiness (MAT) has a positive and significant relationship with the adoption of high performance work systems ( Hypothesis 1 ); mutual benevolence trustworthiness (MBT) has a positive and significant relationship with the adoption of high performance work systems ( Hypothesis 2 ); and mutual integrity trustworthiness (MIT) has a positive and significant relationship with the adoption of high performance work systems ( Hypothesis 3 ). These results show that mutual trustworthiness in Korean employment relations is an important antecedent for the adoption of HPWS and can enable Korean industry to improve its position in the global economy. In the final analysis, it is implied that employment relations actors pursuing cooperative employment practices should ensure the development of a virtuous cycle of mutual trustworthiness.

Do union strategic influence, job security and the industrial relations climate matter for the adoption of high performance work systems?

“…This can be seen as a measure of the quality of the relationship between trade unions and managers (Dastmalchian, 2008). A positive industrial relations climate has been found to improve organisational performance in a range of studies of HPWS (Deery and Iverson, 2005;Valizade et al, 2016;Yoon-Ho et al, 2015). A positive industrial relations climate may help to foster norms of reciprocity and discretionary behaviour (Gill, 2009;Pyman et al, 2010), forged by union and management predispositions to respond favourably to the intentions of their counterparts (Mowbray et al, 2021;Wilkinson et al, 2014).…”

“…A positive industrial relations climate has been found to improve organisational performance in a range of studies of HPWS (Deery and Iverson, 2005; Valizade et al. , 2016; Yoon-Ho et al. , 2015).…”

HPWSs and employee performance in KIBS companies: a mediating–moderating analysis

“…A more general recommendation for top managers pertains to planning to implement HPWSs; in order to achieve positive results, it is important to secure the support of the HPWSs and employee performance in KIBS companies managerial staff as well as employee trust (Yoon-Ho et al, 2015). It is also crucial to remember that employees' sense of well-being and their outcomes rely on the significance that they attach to HPWSs (Van De Voorde and Beijer, 2015).…”