Competitive pressure on companies to boost productivity and performance has intensifi ed in the last two or three decades due to a confl uence of events, such as global integration of markets, a more fi nance-driven business environment, and industry deregulation and privatization. The ripple effects spread across all functional areas of business, affect all stakeholders, and can have positive or negative social consequences. Certainly employees and the human resource function are a case in point. Companies may react to greater competitive pressure by taking the low road through labour commodifi cation, cost cutting, and worker disempowerment or the high road through investment in human capital, high-involvement work practices, and mutual-gain compensation.