The effect of high performance work system strength on organizational effectiveness

Abstract

Purpose This paper aims to examine the implications of high performance work system (HPWS) strength from a managerial perspective and the impact of economic, cultural, political, legal and technological factors on the operationalization of HPWSs in the banking industry in Sri Lanka. Design/methodology/approach The data for this study were collected from three licensed commercial banks in Sri Lanka. This research used a case study approach for data collection with archival analysis of records and semi-structured interviews with the CEO, head of HR, two board members and three focus groups (top, middle and lower level managers across various functional areas) in each bank which altogether covers 66 key informants. Findings The findings supported the research proposition that to gain positive outcomes on organizational effectiveness, there should be a strong HPWS, resulting in a positive attitudinal climate among employees. Further, the findings provide evidence of the global applicability of HPWSs, although more research is needed to clearly specify the contextual boundaries of HPWS effectiveness. Originality/value Contemporary research provides ample evidence to endorse the contribution of high performance work systems toward organizational effectiveness. However, there is a dearth of literature on how high performance work systems are operationalized across the management hierarchy and support the achievement of organizational effectiveness. Few studies have been conducted on high performance work system strength and organizational effectiveness in emerging economies.

Employees Perceptions of Human Resource Management System and Practices Impact on Affective Commitment: Considering Mediating Role of Line Manager

“…Previous study has shown a positive effect of work practices on employee, for example Alkhazali et al, (2020) found positive relationship between empowerment, HRM practices and employee outcomes in Jordanian banks. Similarly, Dayarathna, (2019) examine the impact of HPWS on employees effectiveness in Srilankan's banks and found positive correlation. Moreover, Ahmed & Shin, (2019), argued that performance appraisal, selection and recruitment, and compensation HRM practices are positively related with indivdual employee outcomes, in Bangladeshi Banks.…”

An Assessment of High-Performance Work System Theory towards Academic Development, Work Environment and Promotion in Higher Education: A Thailand and International Comparison

“…Strong HPWS practice enhances organizational performance (Shih et al, 2006;Zhai and Tian, 2020) and positive outcomes for the organization (economic, cultural, politi-cal, legal, and technological) (Dayarathna et al, 2020) and employees (Abugre and Nasere, 2020). On the other hand, HPWS results in work intensification, increased health harm, and challenges to workplace well-being (Chillakuri and Vanka, 2021).…”

Entrepreneurship in Turkey and other Balkan countries: are there opportunities for mutual co-operation through internationalisation?

“…Understanding entrepreneurship today necessitates the consideration of non-material variables, such as human resources, culture, social networks and social capital, along with material factors (Dayarathna et al, 2019). In this study, the entrepreneurship performance and potential of Turkey and 10 Balkan countries were evaluated in connection with material factors such as technology and competition as well as social characteristics such as culture and human resources.…”