Effects of High Performance Work Systems on Organizational Performance: A case of Banking Sector of Pakistan
PhD, Assistant Professor Institute of Management Sciences Peshawar
This study sets out to determine the effects of high performance work systems (HPWS) and on organizational performance. Previous research in the field of HRM has mainly supported the view that properly designed high performance work systems can enhance organizational performance. This study has been conducted in the banking sector of Pakistan. Primary data was gathered in the form of managers’ and employees’ perceptions about the extent of HPWS and organizational performance in 340 sample branches. Results have shown that HPWS was significantly related to performance in terms of branch deposits, advances, and overall profitability. The findings from this study contribute to the literature on HPWS and performance, showing how HPWS can affect the performance of banks at unit level. The implications of this study suggest that as important stakeholders, managers, employees and HR function should be engaged in the design of HPWS and the plans for achieving higher levels of performance.
Keywords: High performance work systems, resource based view, AMO framework, and Organizational performance.