"A firm is profitable if the value it commands exceeds the costs involved in creating the product. Creating value for buyers that exceeds the cost of doing so is the goal of any generic strategy. Value, instead of cost, must be used in analyzing competitive position" (Porter, 1985, p 38). This article specifically a combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment and flexibility. Analysing the underlying principles that guide the development of high-performance work systems and potential benefits that can occur as a result. This outlines the various components of the system, the work-flow, design, HR practices, management processes and supporting technologies. In addition to these it also focus on the processes organizations use to implement competitive strategy systems as well as the outcomes that benefit both the employee and the organization as a whole.