Impact of High-Performance Work System on Employee Performance Through Psychological Empowerment

Abstract

The purpose of this examination is to examine the impact of high performance work system (HPWS) on employee performance (EP). Along with this, the study also evaluated the mediation role of psychological empowerment in afore mentioned relationship. According to this examination HPWS is considered as an important factor in enhancing EP. However, there were limited studies on HPWS in Pakistani context and especially on Banks. The implementation of PE is important because if employees are psychologically healthy and relax they pick things more easily and the results of HPWS will give more effective results. This study fills this literature and empirical gap. Populations of current study were managers and employees of two Banks (National Bank of Pakistan and Habib Bank Limited). Data was collected from more than 500 employees of banks using standardized scales. Data was collected through self-administered questionnaires adapted from previous studies. Obtained results proves that HPWS has positive and significant relationship with EP, and PE plays significant role in between HPWS and EP. This research has multiple theoretical and managerial implications. This research outcomes were found beneficial for practicing managers to obtain better results from their employees working in banking sectors. PE helps employees to reduce work stress and improve work competencies. By effective utilization of combination of both these factors HPWS and PE managers can enhance employee performance.