For any nation, business growth through higher productivity and enhanced competitiveness is critical for economic recovery and future prosperity.
There is a considerable body of evidence indicating that wider adoption of high performance work practices (HPWPs) can improve a company’s performance and contribute to growth.
One of the most influential and useful HPWP systems is the AMO model, which was formulated by Appelbaum et al (2000).
According to the AMO model, for an organisation to achieve the highest level of performance and efficiency its employees should have three attributes: Ability (A), motivation (M), and opportunity (O).
Ability can be nurtured and influenced through selective hiring and sophisticated selection processes, which will enable the organisation to hire employees with appropriate knowledge and skill. Effective recruitment will help employees understand the tasks assigned to them, enable them to apply their skills and knowledge properly while performing their duties, and improve their performance. This will, in turn, increase harmony and consistency between various departments within the organisation, enable them to carry out their responsibilities to the fullest, and achieve the highest levels of productivity.
Motivation can be achieved through two ways: Extrinsic (for example, financial), and intrinsic (for instance, interesting work). In any organisation, the workforce must be motivated to achieve their goals, which encompass performance, career development and job security, and work-life balance.
Opportunity can be created through employee involvement and participation. Sharing organisational information and objectives with employees, helping them understand their roles and responsibilities, and giving them freedom and discretion to perform their job results in effective participation and has a direct influence on decision-making and business performance.
One of the strengths of the AMO model is its focus on comprehensive knowledge, and through motivation and opportunity of specific HPWPs. Moreover, the model is flexible enough to allow for the implementation of alternative methods depending on conditions prevailing within the organisation. The AMO model proposes that HPWPs can help develop the skills and abilities of employees and provide them greater opportunities to fully utilise their skills and knowledge.
HPWPs have become an urgent and important requirement for all organisations. If Omani organisations implement the AMO model, integrating it with appropriate human resource polices and regulations, they can help improve employee performance, which will, in turn, enhance productivity and help achieve the desired organisational goals. - Exclusive to Times of Oman
Isehaq Ahmed Al Balushi is Head of Finance at Oman Olympic Committee