Exploring the Relationship between High-Performance Work Systems, Employee Commitment, and Firm Performance (A Multi Mediation Model)

Abstract

The study explored the effects of High-Performance Work System practices (HPWS - AMO model) on the employee and organizational performance and mediating role of employee commitments between these two. Hypotheses were tested with a sample of 205 employee-supervisor dyads working in public sector banks and insurance companies of Sargodha and Lahore. The proposed direct and indirect relationships among study variables were tested using structural equation modeling (SEM). Results showed that ability and opportunity enhancing HPWS practices had a positive effect on the employee and organizational performance. Affective, continuance and occupational commitment are partially mediated between ability and opportunity enhancing HPWS practices and performance. In contrast, normative commitment did not show meditation on the relationship between HPWS practices and employee performance; however, it partially mediated the link between ability and motivation, enhancing HPWS practices and subjective organizational performance. This study suggests that developing a system of HPWS practices in the organizations will not only help the organizations to flourish and stay competitive but will also help in eliciting the right employee attitudes by enhancing employee commitment.