The Effect of High Performance Work System(HPWS) on Corporate Performance

Does labor relations environment help vitalize high performance work system(HPWS)? Using “Workplace Panel Survey(WPS)” carried out by Korea Labor Institute(KLI) in 2007, this study investigates the effect of labor relations’s environmental factors on the vitalization of HPWS. The result of the research shows as follows. First, HPWS has positive effect on improving corporate performance, especially when there is a moderating effect that the more favorable labor relations climate is, the greater the effect is. Second, the labor relations climate is influenced by union’s and management’s strategic choice. Third, the motive of labor relations climate is the management's view of labor-management relations. Those results present the basis that the company should manage the labor relations climate and that union’s and management’s strategic choice should be changed into more corporative labor relations climate.