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High Performance Work Systems and Organizational Performance: An Empirical Study on Manufacturing and Service Organizations in Pakistan

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  • Safa Riaz

    (Muhammad Ali Jinnah University)

Abstract

A two level analysis was conducted to examine the impact of High Performance Work Systems (HPWS) on organizational performance by investigating four most prevailing theories in HPWS literature i.e., human capital (Resource based view), social exchange, relational coordination, employee attitudes and behaviours. It was proposed that HPWS predicts improved organizational performance and this relationship can be strengthened through intervention of human capital development, degree of social exchange among organizations and its members and productive relationships among employees. It was further argued that HPWS results into employee motivation, job satisfaction and organizational citizenship behaviours, which ultimately results into better organizational performance. Results from 17 manufacturing and service organizations confirmed the significance of association of implemented and perceived HPWS with managerial and employee rated organizational performance. Mediation analysis confirmed the contribution of human capital, social exchange, relational coordination and OCB towards organizational performance but no influence was found for employee attitudes on HPWS-performance linkage.

Suggested Citation

  • Safa Riaz, 2016. "High Performance Work Systems and Organizational Performance: An Empirical Study on Manufacturing and Service Organizations in Pakistan," Public Organization Review, Springer, vol. 16(4), pages 421-442, December.
    • Handle: RePEc:kap:porgrv:v:16:y:2016:i:4:d:10.1007_s11115-015-0315-1
    DOI: 10.1007/s11115-015-0315-1
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    Cited by:

    1. Emilio Ruiz & Jesús David Sánchez de Pablo & Rosa M. Mu?oz & Isidro Pe?a, 2019. "Do high performance work systems enhance business performance? Examining the mediating influence of total quality management," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(1), pages 235-258.
    2. Ahsan Khan & Danish Ahmed Siddiqui, 2018. "Impact of Vision Based Recruitment on Organization’s Performance in Pakistan," International Journal of Human Resource Studies, Macrothink Institute, vol. 8(4), pages 188207-1882, December.

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