ABSTRACT

14 High Performance Work Practices have been identified and conventionally classified into three categories: ability-related practices; motivation-related practices; and opportunity-enhancing practices. The levels of enactment of the three sets of practices are not independent across organizations. Well-managed organizations tend to attend to all three causal dimensions. Hence, when examining organizational practices and performance data across organizations, it is difficult to isolate the exclusive effects of each set of practices. Excessive employee turnover can create four types of costs which can be classified as related to separation, replacement, training, and lost productivity or business. Separation costs include those associated with exit interviews; the administrative tasks associated with termination, possible separation payments; and increases in unemployment taxes. Replacement costs include costs associated with communicating job availability, processing applications, conducting interviews, holding staff meetings, testing or other assessment procedures, post-hiring administrative activities, and possible medical examinations. Patagonia is primarily an outdoor clothing and equipment company headquartered in Ventura, Calif.