HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH...

21
http://iaeme.com/Home/journal/IJM 387 [email protected] International Journal of Management (IJM) Volume 11, Issue 9, September 2020, pp. 387-407, Article ID: IJM_11_09_037 Available online at http://iaeme.com/Home/issue/IJM?Volume=11&Issue=9 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI 10.34218/IJM.11.9.2020.037 : © IAEME Publication Indexed Scopus HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF ORGANIZATIONAL CITIZENSHIP BEHAVIOUR Shagufta Ashraf PhD Scholar, Department of Public Administration, University of Kotli Azad Jammu and Kashmir, Pakistan. Dr. Iftikhar Hussain Supervisor and Dean, Faculty of Computing and Engineering, University of Kotli Azad Jammu and Kashmir, Pakistan. ABSTRACT The main objective of research paper is to assess the “Impact of High Performance Work System (HPWS) on Organizational Performance (OP) in Banking Sector of Azad Jammu and Kashmir”. It has been well proven from existing body of knowledge that a well devised HPWS is one of the factors which can enhance the performance level in organizations. The present research work will investigate the linkage between HPWS and OP through mediating role of OCB in banking sector of Azad Jammu and Kashmir. Seven HPWS practices i-e Performance Based Rewards, Result Oriented Appraisal, Clear Job Design, High Levels of Training, Internal Mobility and Rigorous Hiring processes have been taken for the study. The adopted indicators of organizational performance constructed on cumulative performance level. Study is exploratory in nature because its main focus is on either HPWS OP relationship will be mediated by OCB or not. Data has collected from employees of cadre Grade 1, Grade 2, and Grade 3 officers of the banks through structured questionnaires. The hypotheses have been tested by correlation and multiple regression analysis. Two steps multiple hierarchal regression is applied to test mediation. Cronbach’s alpha is used to test the validity and reliability of the measured constructs. Similarly, correlation and regression estimates point out that all the variables under study ed were positively related to each other. Outcomes of the study also exhibited positive and direct relationship between HPWS-OP relationships. Furthermore, it has also inveterate that OCB mediated the association between HPWS and OP. The research paper presented insights that rigorous hiring processes, high level of training and performance based rewards of HPWS practices appears as a strongest forecaster of OP and are most effective practices to determine the volumes of OP in the culture of

Transcript of HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH...

Page 1: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

http://iaeme.com/Home/journal/IJM 387 [email protected]

International Journal of Management (IJM) Volume 11, Issue 9, September 2020, pp. 387-407, Article ID: IJM_11_09_037 Available online at http://iaeme.com/Home/issue/IJM?Volume=11&Issue=9 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI 10.34218/IJM.11.9.2020.037 :

© IAEME Publication Indexed Scopus

HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF ORGANIZATIONAL

CITIZENSHIP BEHAVIOUR Shagufta Ashraf

PhD Scholar, Department of Public Administration, University of Kotli Azad Jammu and Kashmir, Pakistan.

Dr. Iftikhar Hussain Supervisor and Dean, Faculty of Computing and Engineering,

University of Kotli Azad Jammu and Kashmir, Pakistan.

ABSTRACT The main objective of research paper is to assess the “Impact of High

Performance Work System (HPWS) on Organizational Performance (OP) in Banking Sector of Azad Jammu and Kashmir”. It has been well proven from existing body of

knowledge that a well devised HPWS is one of the factors which can enhance the performance level in organizations. The present research work will investigate the

linkage between HPWS and OP through mediating role of OCB in banking sector of Azad Jammu and Kashmir. Seven HPWS practices i-e Performance Based Rewards,

Result Oriented Appraisal, Clear Job Design, High Levels of Training, Internal Mobility and Rigorous Hiring processes have been taken for the study. The adopted

indicators of organizational performance constructed on cumulative performance level. Study is exploratory in nature because its main focus is on either HPWS OP –relationship will be mediated by OCB or not. Data has collected from employees of

cadre Grade 1, Grade 2, and Grade 3 officers of the banks through structured questionnaires.

The hypotheses have been tested by correlation and multiple regression analysis. Two steps multiple hierarchal regression is applied to test mediation. Cronbach’s

alpha is used to test the validity and reliability of the measured constructs. Similarly, correlation and regression estimates point out that all the variables under study ed

were positively related to each other. Outcomes of the study also exhibited positive and direct relationship between HPWS-OP relationships. Furthermore, it has also inveterate that OCB mediated the association between HPWS and OP. The research

paper presented insights that rigorous hiring processes, high level of training and performance based rewards of HPWS practices appears as a strongest forecaster of OP and are most effective practices to determine the volumes of OP in the culture of

Page 2: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 388 [email protected]

banking sector of AJ&K. Therefore, it has proven that if high performance human resource management practices are designed prudently and subsequently executed in such a way that it becomes challenging for the potential competitors to reproduce then only organizations upshots competitive edge. JEL Code: M12, Personnel Management, Executives; Executive Compensation Key words: Human Resource Management, High Performance Work System, Organizational Performance, Organizational Culture, Banking Industry, Azad Jammu and Kashmir.

Cite this Article: Shagufta Ashraf and Iftikhar Hussain, High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational

Citizenship Behaviour, International Journal of Management, 11(9), 2020, pp. 387-407. http://iaeme.com/Home/issue/IJM?Volume=11&Issue=9

1. INTRODUCTION Financial sector is one of the very important parts of services sector of Pakistan. Country‟s

economic growth is determined by the rapid pace of activities nested in the financial sector. The financial sector of Pakistan has been witnessing high growth since the last two decades, reflected by increased advances, deposits, and securities investment (State bank of Pakistan, 2016). Due to increase of branch network, competition among banks has increased. In this

intense competition, banks can only survive by providing superior services through innovation and continuous improvements. According to Matzler & Renzl, (2007), employee

performance is indispensable for improving the services sector of any country. The high performance work practices (HPWPs) give positive signals to the employees that organization

is concerned about them in order to improve the quality and productivity of the work of employees (Tang and Tang, 2012). These positive signals result into the high employee

output, and resultantly organizational performance is also improved Tregaskis, Daniels, Glover, Butler & Meyer, 2013.

Globally, as well as in Pakistan, there is growing realization that increasing focus on employees can enhance the performance of an organization. Human Resources departments are trying to prove that they add value to the organization‟s performance. They are battling to

justify the reasons for their existence in organizations. However, perhaps one of the reasons that HR has not been more successful in communicating the importance of what they do is because they have tended not to express it in economic terms. Researchers like MacDuffie (1995), Delery and Doty (1996), Boselie, Dietz, & Boon (2005), Danford et al (2008), Guthrie

et al (2009), Fabling and Grimes (2010) have worked hard to establish the empirical relationship between human resource management and organizational performance.

The influences of HRM practices on OP have become a foremost research subject in the concerned field. Maximum research in the field of HRM and OP in literature is organized around various research approaches. System and strategic approaches on HRM are considered

to be two major perspectives in the field of HRM-OP relationship. According to system approach described by Becker and Huselid 1998; Boxall and Macky, 2007; Mihail &

Kloutsiniotis, 2016; Karetape et al., 2015 it has mainly focused on the over set of HR practices and their impact on OP. Whereas, strategic approach is based on the conception that

HR practices must be bring into line horizontally towards organizational goals and must accompaniment each other to accomplish organization‟s strategy Wright and Snell, 1991.

Together these two standpoints provide fundamentals to explore how HR practices and their

Page 3: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 389 [email protected]

impact on employee characteristics can lead to desired performance at organizational level , Bowen and Ostroff, (2004).

Keeping above arguments in consideration, the aim of the present research work is to investigate the linkage between HPWS and OP in banking sector of Azad Jammu and

Kashmir. Seven HPWS practices i-e Performance Based Rewards, Result Oriented Appraisal, Clear Job Design, High Levels of Training, Internal Mobility and Rigorous Hiring processes

has been taken for the study following Huselid (1995). The adopted indicators of organizational performance are financial and non-financial. The quantitative outcomes of the present study are constructed on cumulative performance level. For the scale of Organization Citizenship Behavior (OCB) chosen antecedents measures are conscientiousness, civic virtue and altruism specific for Asian culture.

Prior studies have revealed that employees with better skills, knowledge and high motivation alone will be unable to engage talent properly in absence of fitting and appropriate organizational structure that delivers them with opportunities and scope in such a manner that they can exert best of their talent to perform their jobs, Huselid, 1995; Combs et al., 2006. A

recent study by Lee and Kim (2010) instituted that employee‟s perception of commitment

based HRM is positively correlated to OCB and interacted HRM practices are significant predictor of all types of OCB. Gong et al., (2010), Oyemomi (2016), Starbuck (2017),

Siddique and Qammar, (2019) introduced through empirical evidence the relationship between HPWS and collective OCB from social exchange perspective.

This literature still leaves room for improvement. There are many research studies on this subject but with respect to Pakistani organizations, particularly Pakistani banks the research efforts are at the shallow end of the research pool. To the best of our knowledge an empirical study is not available in literature that could explore the indirect and direct effects of HPWS on OP through mediating variable (OCB) as a relational perspective. This situation creates

opportunity for the current study. The relational perspective designed for present study is unique in nature as there is no other such study examined in Asian culture generally and in

Azad Jammu and Kashmir Pakistan particularly. Therefore, there was a need to study the relationship between high performance work practices and employee performance in the

Pakistani context. Therefore, such scenario led to the development of following research questions:

What is the impact of HPWS on OP in the banking industry of AJ&K?

What is the relationship between HPWS and OCB (Service Oriented)?

Does OCB mediate relationship between HPWS and OP in banking industry of AJ&K?

2. LITERATURE REVIEW AND DEVELOPMENT OF RESEARCH HYPOTHESES 2.1. Banking Sector in Pakistan a Overview n Around the globe generally and in Pakistan particularly, the researchers have started to explain that in order to have better organizational performance the focus should be shifted to

employees. It has been tried by human resource departments to establish that the human resources play an essential role in OP.

The departments are putting their utmost efforts to justify that why they should be the part of firms. Human Resources have not been efficient in communicating their worth because

they have not been able to convey this in term a financial benefit to the organizations. The

Page 4: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 390 [email protected]

empirical linkage between HRM and OP have been established by various researchers includes Huselid, (1995), MacDuffie (1995), Delery and Doty (1996), Boselie, Dietz &

Boone (2005), Danford et al (2008), Guthrie et al (2009), Fabling and Grimes (2010). There is margin of enhancement in literature is available. There are numerous studies on the record but in context of Pakistani organization and more specifically organizations in Azad Jammu and Kashmir and particularly banking sector in AJ&K there is a huge gap in the research. These circumstances afford scope for the current study.

In order to carry out current research work, research has been done on the banking industry of AJ&K Pakistan. Before laying out the objectives of the study and questionnaire,

an overview of banking sector has been discussed. The banking industry in Pakistan has evolved significantly since the time it was established. To date the banking industry has been contributing substantial part in the economy of country. There are 25 private banks which are local, public sector has four banks and the number of banks operated by foreigners are seven

out of which four are meant for special purpose. The total number of branches operating across the country are 9087 (State Bank of Pakistan‟s report 2010). As per the report

published by SBP (2010) the banking sector made astonishing progress in last decade. In early 90s the government started to privatize the banks by using several modes of

privatization. Muslim Commercial Bank (MCB) was purchased by a local Pakistani. The share of ABL

(Allied Bank Limited) were sold to its employees. The shares of UBL AND HBL were sold to foreigner investors. Some shares of NBP were sold to local public. There was an increase in the profit earned between 2000 and 2007, a decrease has been seen in past few years (SBP 2010). An increase in inflation and bad economic situation reducing the capacity of locals to

pay back loans to bank. It has been playing a major role in bad debts. The continuous proliferation in banking industry operating in Pakistan clearly depicts that the banks still can

profit from the market. The increasing number of banks in Pakistan increasing the competition among them.

With increased number of banks in market, the banks have to shift their focus, to have more reliance on internal resources (SBP report 2010). To get competitive edge from other banks in competition, the banks must have to focus on their human resource by implementing HPWS.

2.2. Organizational Performance Some of the imminent scholars of the field have different opinions about the performance of the organization and this dissent has been an important issue in the field. The performance

was elaborated by three Es include Economy, Effectiveness and Efficiency (Javier, 2002). The research statistics of the Richard et al., (2009) reflect that the performance of the

organization which reinforcing the three specific aspects of the outcomes of the firm, the performance of the financial institutions such as profits, return on the investments, the

performance of the product market which include the sales the share of market., the return of shareholder the economic value which is added to the performance. The OP is main driving

force of organization, which is mainly aimed to achieve the goals by utilizing the main resources in the efficient as well as effective manner (Daft, 2000).

There are number of techniques and methods available to measure the OP. The most significant method to measure the OP is what has been achieved and this method is being used in many researches. The key indicators of performance (KPIs) are referred by mainly looking at financial results such as profitably and productivity. The broader concept of the

performance, which is relied on both which has been accomplished and how it has been

Page 5: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 391 [email protected]

accomplished. OP is the most significant factor to have the in depth view of the effectiveness and the efficiency which in turn are related to organizational objectives, Al-Tit & Hunitie, 2015, HO,2008. There are number of methods being proposed to measure the OP which are broadly divided into two main types. One of them is considering financial indicators and the

other is by considering non-financial indicators. Sharabati, Jawad and Bonis (2010) used productivity of organization, profitability of organization and organization market valuation in order to have in depth understanding of performance of a pharmaceutical company in Jordan. Chong et al. (2011) analyzed the linkage between performance of the corporations and supply chain using various parameters which includes how many items were returned, how much sold, consumer feedback whether positive or negative to calculate OP. Lee and Yu (2004) measured OP of industrial sector. The parameter chosen to assess OP was how much profit

made, how much was the sale in industry. The parameters used to measure the OP of insurance companies were the growth rate and investment return. The parameters to measure the OP of hospitals include how long patient remained admitted in hospital and how much beds in hospital are occupied.

2.3. HPWS and OP, Theoretical Relation with Empirical Evidence Numbers of studies have established that HPHRP are directly related to OP, as Zhang & Jia, 2010, Subramony, 2009, Zhang & Ma, 2008, Datta et al., 2005. On the way to define HPHRP is a group of distinct but interconnected HR practices planned to improve worker‟s knowledge „skills and efforts, Takeuchi et al., 2007, P, 1069. With ever increasing competition and world

is turning into the global village it is imperative to have a properly designed HR system Osman et al., 2011.

This has been an important subject for research over the years that how HR practices effect and contribute in achieving the organizational goals and to keep them ahead of others in

competition Chen & Huang, 2009, Combs et al., 2006, Montoro et al., 2011; Subramony, 2009, Zhang & Jia, 2010. A lot of research has been done in HRM field to reach a conclusion that which will be the characteristics of HRM system which will keep an organization ahead of others in competition. HPHRP is the set of HR Practices that inculcate skills in employees, give them confidence to involve themselves in decision making Sun, Aryee, & Law, 2007.

Still the theorists are unable to establish that how the firm performance can be directly linked to HPWS. Becker & Huselid, 2006; Chadwick & Dabu, 2009. In other words, they believe that HPWS can affect OP but how it effects it is still unclear. These are not the HRPs but because of these practices the efforts put by the employees have impact on OP (Way, 2002). Therefore, HPWS has positive impact on workforce and persuade them to contribute in OP using optimal of their capabilities. Numerous researches have proven empirically HRM-OP relationship and delivered a base for generation of the hypothesis which states that HRM practices predict OP significantly. Amin, Ismail at el., 2014; Chan & Mak, 2012 Chan &

Katou, 2007, Ho & Galang, 2011.Therefore, based upon above mentioned literature the researcher developed following hypotheses that either HPWS has link with OP H1, whereas H2 is trying to explore that either HPWS and such correlation is positively related to OP or not.

H1: HPWS is positively associated with organizational performance in banking sector of Pakistan or HPWS predicts OP

Page 6: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 392 [email protected]

2.4. HPWS and Service Oriented OCB, Theoretical Linkage 2.4.1. Organizational Citizenship Behavior The initial literature about OCB can be found in the work by Barnard (1938) and Kartz (1964) who considered “willingness to cooperate” and “innovative and spontaneous behavior” for an

organization to function successfully little important. The scholars and researchers started their work on this topic after the Organ and his mates (Bateman & Organ; Smith, organ,

&Near, 1983) coined the term OCB in 1980s that define “willingness to cooperate” and “innovative and spontaneous behavior”. OCB is well-defined by Organ (1988) as the

motivation of employees which has nothing to do with their job description and they are not paid for those but that motivation has significant effect on organizational performance.

In some studies, conducted by researchers they argued that OCB is the part of employee job description and it is binding on them to keep this motivation (Lam et al., 1999, Morrison, 1994). As per the suggestion of Organ (1997:88), while explaining OCB if it was possible it must not be taken as extra role of employees apart from their regular duties. There are number studies establishing the fact that OCB furnish positive results on employee‟s job satisfaction

(Bateman & Organ, 1983) and increases their performance (Mackenzie, Possakoff, & Fetter, 1991) and furthermore have positive impact on performance of group (Podaskoff, Ahearne, & Mackenzie, 1997). Finally, it increases the efficiency of an organization as it provides better service to customers (Dunlop & Lee, 2004) and as the result it makes the organization better profit earning organization (Koys, 2001). A meta-analysis carried out further established the fact that OCB is very significant to predict organizational outcomes (Podsakoff et al., 2009). As OCB has widely accepted significance a lot of work has been done to figure out variables

that effects citizenship performance of employees (Chiaburu et al, 2011). This study considers three major dimensions that are most likely associated with HPWS and Asian

culture. In modern day age and in current competitive environment an employee must be capable

enough and must be given chances and opportunities to show Organization Citizenship Behavior. In the study carried out by Messersmith, (2011) and her team, they pointed out an important argument which is when someone try to establish the linkage between HPWS and Performance of an organization mediated by OCB and he considers discretionary role of an employee as only parameter to keep organization ahead of others is competition then there is gap in literature. Another issue remained unsettled which is whether HPWS can encourage

and keep OCB for too long. Many single and individual practices when grouped together form HPHR system which then in turn has effect on performance of organization. High

Performance Human Resource Practices have been providing to employees job security, providing them training to enhance their skills, providing them promotions based on their

performance and appropriately defined career paths. H2: HPWS is positively associated with OCB in banking sector of AJK

H3: OCB mediates the relationship between HPWS and organizational Performance in banking sector of AJK or H3: OCB governs and mediates the association between HPWS and OP

Page 7: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 393 [email protected]

Conceptual Model

Figure 1 Conceptual Model

4. RESEARCH METHODOLOGY 4.1. Research Sample and Data Collection The data has been gathered through self-completion structured questionnaires, the responses of the respondents have been acquired. Selected population of the present study for which

data has been collected for further statistical interpretations to support “Generalization” hall mark of science is banking sector of Azad Jammu and Kashmir. In this regard Grade 1,2 and 3

are most appropriate respondents as they fulfill the criterion of affiliating to the clearly defined group of managerial level. A self-managed questionnaire was embraced for the

present study which was constituted by six distinct instruments. 800 questionnaires were distributed by hand to all banks branches available in Azad Jammu and Kashmir. Codes were given to the filled returned questionnaires and then the raw data was entered into Microsoft Excel for further processing. The received questionnaires were 500 with response rate 62.5% which were used for further analysis.

Page 8: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 394 [email protected]

4.2. Measurements To measure the HPWS, twenty-eight (28) items scales were embraced from the work of

Lepak and Snell (2002). This scale best fits in Asian culture and have already been used in recent study conducted in Japanese culture context, Takeuchi et al., 2007. For developing

appropriate scale of HPWS more items were adopted from Sun et.al. 2007, in China which was originally developed by Snell and Dean 1992 to ensure more reliability. Seven HPWS practices i-e Performance Based Rewards, Result Oriented Appraisal, Clear Job Design, High Levels of Training, Internal Mobility and Rigorous Hiring processes has been taken for the

study. Multiple item scale was employed with 5-point Likert type anchors ranging from 1 (strongly disagreed) to 5 (strongly agreed).

In order to measure selected antecedents of OCB i-e Civic Virtue, Altruism and Conscientiousness fourteen items scale were adopted from relevant sections of organization Citizenship Behavior scale. Podsakoff and MacKenzie (1994) were originally developed this scale. Minor modifications were made in questionnaire to suit study‟s plenty Kamran (2015).

The word “Organization” is replaced by the word “Bank”. For self-ratings of OCB items, the word “Bank Employees” is added to each item with the response scale ranging 1 (Strongly

Disagreed) to 5 (Strongly Agreed). Financial and non-financial indicators are adopted for the performance of firm. All the

questions in the questionnaire are having closed ended format in which multiple options have been given. From the given options respondents are asked to tick most suitable option. Results revealed from the study are constructed on the cumulative performance level. Organization

performance is the dependent variable of the study. Several control variables were also included in the analyses to eliminate alternative explanations of the findings. For analysis, the

study controlled for age, qualification, experience, gender, and length of service in bank. These variables were considered important for the reason that they might influence the

perceptions of employees about the level of HPWS and in turn influence firm performance (Wood, 1999; Chang, 2005; Boselie ., 2005). et al

5 DATA ANALYSIS AND RESULTS . 5.1. Validity and Reliability

Following Tit & Nakhleh, (2014), comparative fit index (CFI) and square error of approximation (RMSEA) applied to check the validity of the constructs and fit indices such as χ

2/ (Al-df ). Cronbach‟s alpha coefficient (α) used to test the reliability of the constructs and

the results of above-mentioned analysis showed significant and reliable estimates, with χ2/df

< 2, CFI above 0.92, RMSEA < 0.081 and α = 0.873.

5.2. Characteristics of the Research Respondents As discussed earlier 500 questionnaires were filled from Grade 1, 2 and 3 officers of banking

sector of AJ&K. As majority of the banks were in approach of an author so maximum response (results) were gathered candid. At the analysis level it was found that males were dominating. Among respondents, majority are male respondents (n=419) constituting 83.8% of sample size. Whereas females constitute 16.2 % of the sample (n=81). Table-1 echoes the state of numeric data.

Page 9: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 395 [email protected]

Table 1 Gender, Age, Education and Marital Status

Gender Frequency Percent Males 419 83.8 Females 81 16.2 Age (Years) 20- 30 284 56.8 31-40 168 33.6 41-50 42 8.4 51-60 6 1.2 61 ≥ 0 Marital Status Single 144 28.8 Married 356 71.2 Level of Education HSSC 6 1.2 Graduation 122 24.4 M.A/ Masters 256 51.2 Diploma Holders 10 2 Others 6 1.2

5.3. Correlation Analysis The objective of this study was to find the relationship between High performance work

practices and employee performance with a mediating role of OCB. The estimated results reported in Table-2 and 3 shows that independent, dependent and mediating variables have positive and significant correlation with each other. The application of correlation was done to catch the dyad wise relationship among variables i-e HPWS, OCB, and OP.

Table 2 Correlations among HPWS and OP Rigorous

Hiring Processes

Internal Mobility

Clear Job

Design

High Levels of Training

Empowerment and

Participation

Result Oriented Appraisal

Performance Based Rewards Perf.

RHP 1 IM .635 ** 1 CJD .538 ** .601** 1 HLT .568 ** .563** .624** 1 EAP .429 ** .479** .440** .459** 1 ROA .425 ** .595** .526** .570** .513 ** 1 PBR .433 ** .516** .517** .409** .604 ** .575 ** 1 Perf .502 ** .527** .505** .526** .438 ** .491 ** .487** 1

**Correlation is significant at the 0.01 level (2-tailed). Table-2 indicates that the factors RHP, IM, CJD, HLT, EP, ROA and PBR are

independently and positively correlated with Organizational Performance (OP) and it is also highly significant at 1% levels Resultantly, Hypothesis 1and 2 of this study was

acknowledged. It is noticeable that the maximum correlation (r =.527) is existed between IM and OP, which is trailed by the association (r =.526) between HLT and OP, (r=.505) between CJT and OP and (r=.502) between RHP and OP. The feeble correlation (r.491) is departed between ROA and OP, (r= .487) between PBR and OP and (r =.438) between EP and OP. Likewise, RHP practices are dyad wise correlated positively with one another. They are also significant statistically at P- value 0.000. Amongst the four HR practices, the relationship (r =.635) between RHP and IM is the highest, followed by the link (r =.601) between CJD and IM.

Page 10: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 396 [email protected]

Table 3 Correlations among OCB and OP

Performance Altruism Conscientiousness

Civic Virtue

Performance 1 Altruism .559** 1 Conscientiousness .505** .428** 1 Civic Virtue .557** .506** .447** 1

**. Correlation is significant at the 0.01 level (2-tailed) Table-3 exhibits the correlations among the Organizational Citizenship Behavior variables

with their coefficients. Significant correlation among all Organizational Citizenship Behavior variables has been found. The Altruism is strongly and significantly correlated with power

Civic Virtue but has weak correlation with Conscientiousness. Likewise, Civic Virtue also possesses positive and significant correlation with Conscientiousness but correlation between these two variables has not been found significant.

5.4. Multiple Regression Analysis Multiple regression analysis has been used to explore the correlation between multiple

independent or predictor variables and a dependent variable also termed as criterion variable Pearson (1908). For the study least square linear regression has been executed to find out following relationships.

Organizational Performance (OP) = function (7 HPWS) Organizational Citizenship Behavior (OCB) = function (07 HPWS)

The hypothesized correlation between independent variables i-e seven HPWS practices and dependent variables OP may be presented in the form of regression equations as follows:

OP =f (Con. Var. , RHP, IM, CJD, HLT, EP, ROA, PBR)

- 1

OCB =f (Con. Var. , RHP, IM, CJD, HLT, EP, ROA, PBR)

- 2

Whereas: α = a constant

β,Ω,Ø = the effect in independent variable on dependent variable, hypothesized to be

positive; and ε = the “noise” term reflecting other factors that influence dependent variable. Covariance are Controlled Variables e.g. Gender, Age, Marital status and Qualification of the respondents.

RHP= Rigorous Hiring Processes, IM= Internal Mobility, CJD= Clear Job Design, HLP= High Levels of Training, EP= Empowerment and Participation, ROA= Result Oriented

Appraisal, PBR= Performance Based Rewards, OP in this study is taken as first dependent variable presenting organizational performance for first regression analysis model. In the

Page 11: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 397 [email protected]

second multiple regression analysis dependent variables OCB is substituted with OP representing Organizational Citizenship Behavior.

To estimate the effect of HPWS on OP, we estimated the equation 1 and results are exhibited in the table- 4 which demonstrate the standardize regression coefficient ( ) and β

under standardized regression coefficients ( ) and model intercept. All the demographic βvariables (Age, Gender, Marital Status and Qualification) are statistically significant and have positive contribution to organizational performance. Similarly, high performance work system

practices are appeared to be significantly affecting organizational performance (OP). Only one practice Clear Job Design (CJD) is significant at marginal rate. Performance Based

Rewards (PBR), High Levels of Training (HLT) and Rigorous Hiring Processes (RHP) are most effective practices to determine the volumes of OP. The value of R2 (.421) depicts that 42% of the deviation in the model described by the explanatory variables.

Table 4 Regression Analysis, Direct Impact of HPWS, Results of Regression Analysis with (HPWS) as Predictors of OP

Variables Unstandardized

Coefficients B

B Std. Error

Standardized Coefficients

Beta t-statistics Sig.

Age 0.053 0.014 0.058 2.321 0.007 Gender 0.013 0.14 0.016 1.981 0.031 Marital Status 0.02 0.021 0.019 2.013 0.002 Education 0.011 0.015 0.013 3.023 0.003 Rigorous Hiring Processes (RHP) 0.109 0.04 0.148 2.751 0.006 Internal Mobility(IM) 0.08 0.041 0.116 1.967 0.050 Clear Job Design (CJD) 0.057 0.035 0.091 1.635 0.103 High Levels of Training(HLT) 0.125 0.039 0.179 3.179 0.002 Empowerment and Participation(EP) 0.046 0.043 0.056 1.084 0.279 Result Oriented Appraisal(ROA) 0.07 0.043 0.091 1.636 0.103 Performance Based Rewards(PBR) 0.121 0.042 0.157 2.877 0.004 Constant 1.324 0.13 10.194 R2 0.421 Adj R2 0.41 Model F 40.643 0 Durbin-Watson 1.552

In order to examine the impact of HPWS on organizational citizenship behavior (OCB), we estimated equation no. 2 and results are illustrated in table-5. The results showed that the demographic factor age and education have positive and significant impact of OCB whereas

other two demographic factors are insignificant but have positive beta sign. As a result, HPWS dimensions are concerned with six out of seven practices with positive expected beta

coefficients. Only one practice surfaced non-significant that is “Internal Mobility” and it is

not surprising because there are poor internal mobility practices exists in banking sector of AJ&K. The entire model illuminates 42.4% of the variance (R2 = .424).

Page 12: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 398 [email protected]

Table 4 (1) Results of Regression Analysis with HPWS as Predictor of OCB

Variables B Beta Age 0.054** .058* Gender 0.014 .015* Marital Status 0.02 0.019 Education .013** 0.016 Rigorous Hiring Processes (RHP) 0.107*** .159*** Internal Mobility(IM) 0.02 0.029 Clear Job Design (CJD) 0.037** .057** High Levels of Training(HLT) 0.028* .048* Empowerment and Participation(EP) 0.118*** .166*** Result Oriented Appraisal(ROA) 0.057*** .087*** Performance Based Rewards(PBR) 0.125*** .176*** Constant 1.012*** R2 0.424 Adj R2 0.418 Model F 72.92*** Durbin-Watson 2.013

* p<05 **p<.01 ** p<.001

5.5. Impact of OCB Dimensions on OP To estimate the impact of OCB dimension on OP, we developed the following model.

Organizational Performance =f (Altruism Conscientiousness, Civic Virtue) ,

3- - 3

For empirical analysis we estimated equation 3 and results are reported in table-5 below.

Table 5 Results of Regression Analysis with OCB as Predictors of OP

Variables Unstandardized Coefficients B

B Std. Error

Standardized Coefficients

Beta t-stat Sig.

(Constant) 1.324 0.117 11.359 0.000 Altruism 0.216 0.031 0.306 6.891 0.000 Conscientiousness 0.168 0.03 0.243 5.675 0.000 Civic Virtue 0.225 0.034 0.294 6.538 0.000 R Square 0.458 Adjusted R Square 0.453 Model F 111.36 0.000 Durbin-Watson 1.695 The results represented in all three variables were found to be statistically significant

predictors of organizational performance. These variable are Altruism, Conscientiousness and Civic Virtue has positive effects on OP. Estimated model has adjusted R2 = 0.453, which

designates that the model accounts for 45.3% of the variance in Altruism measures as significant at (ρ= 0.000) =.306 powerful and statistically significant OP. Conscientiousness B( = .243, .000) and Civic Virtue ( = . 294, β ρ= β ρ= .000).

Page 13: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 399 [email protected]

5.6. Mediation, OCB as Mediator between HPWS and OP The subsequent phase is to examine the hypothesis related to OCB as mediator between

HPWS and OP measures. The crucial notion of mediation is elucidated in Figure 2. The mediating part of OCB has been evaluated and established on multiple regressions that had been recommended by Baron and Kenny (1986).

Figure 2 Mediating Role of OCB between HPWS and OP

In the present study one of the hypotheses is to check whether the relationship between HPWS (X) and OP (Y) is mediated by OCB (C). Table-6 exhibits that OP estimates and

HPWS succeed in first step of the mediation. The results show that the second condition has been recommended by Baron and Kenny (1986), that the regression results between

independent variable and mediating variables (X and C) mandatory to be statistically momentous in order to gear up for third step to test the mediation. Third state is also

satisfactory. The results revealed of the relationship among HPWS and mediator variable OCB indicate the statistically significant impact of the dependent variables as five out of seven practices appeared as significant with positive expected sign. As mentioned earlier,

table -6 shows that the results of OCB mediation. In this context, in step 1, HPWS are regressed with OP. Six practices out of seven practices emerged as significant. Then in step 2, HPWS was regressed with OCB perceived as mediator in theoretical model. The results show 5 practices appeared as significant out of seven practices. Thus the condition for mediation has been proved.

Table 6 In Between HPWS-OP Relationship OCB Mediates

Step 1

R R.

Square

Adjusted R

Square

Std. Error of

the Estimate

Change Statistics R.

Square Change

F. Change df1 df2

Sig. F Change

.648a 0.421 0.41 0.44741 0.421 40.643 7 392 0

Page 14: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 400 [email protected]

Estimated Coefficients

Model 1

Unstandardized Coefficients

Standardized Coefficients t Sig.

Collinearity Statistics

B Std. Error Beta Tolerance VIF

(Constant) 1.324 0.13 10.194 0 Rigorous Hiring Processes 0.109 0.04 0.148 2.751 0.006 0.512 1.96 Internal Mobility 0.08 0.041 0.116 1.967 0.05 0.427 2.34 Clear Job Design 0.057 0.035 0.091 1.735 0.1 0.478 2.09 High Levels of Training 0.125 0.039 0.179 3.179 0.002 0.467 2.14 Empowerment and Participation 0.046 0.043 0.056 1.084 0.279 0.56 1.78 Result Oriented Appraisal 0.07 0.043 0.091 1.636 0.103 0.481 2.08 Performance Based Rewards 0.121 0.042 0.157 2.877 0.004 0.497 2.01

a. Dependent Variable: OP

Step 2

R R Square

Adjusted R Square

Std. Error of the

estimate

Change Statistics R

square change

F Change df1 df2 Sig.F

change

.695a 0.483 0.473 0.46945 0.483 52.217 7 392 0 Estimated Coefficientsa

Model 2 Unstandardized Coefficients

Standardized coefficients t Sig.

Collinearity Statistics

B Std. Error Beta Tolerance VIF

(Constant) 1.038 0.136 7.617 0.000 Rigorous Hiring Processes 0.234 0.042 0.285 5.609 0.000 0.512 1.955 Internal Mobility 0.102 0.043 0.133 2.391 0.017 0.427 2.342 Clear Job Design 0.143 0.037 0.205 3.894 0.000 0.478 2.093 High Levels of Training -0.019 0.041 -0.024 -0.454 0.650 0.467 2.142 Empowerment and Participation 0.013 0.045 0.014 0.285 0.776 0.56 1.784 Result Oriented Appraisal 0.078 0.045 0.091 1.732 0.084 0.481 2.081 Performance Based Rewards 0.143 0.044 0.167 3.249 0.001 0.497 2.013 a. Dependent Variable: OCB

Page 15: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 401 [email protected]

Step 3

R R Square

Adjusted R

Square

Std.Error of the

estimate

Change Statistics R

Square Change

F Change df1 df2

Sig.F Change

.648a 0.421 0.41 0.44741 0.421 40.643 7 392 0

Estimated Coefficientsa

Model 3

Unstandardized Coefficients

Standardized Coefficients t Sig

Collinearity Statistics

B Std. Error Beta Tolerance VIF

Constant 1.244 0.15 8.531 0.000 Rigorous Hiring Processes 0.087 0.04 0.118 0.454 0.650 0.49 2.04 Internal Mobility 0.07 0.04 0.101 1.63 0.104 0.386 2.589 Clear Job Design 0.041 0.04 0.066 1.126 0.261 0.432 2.313 High Levels of Training 0.127 0.04 0.182 3.251 0.001 0.474 2.11 Empowerment and Participation 0.045 0.04 0.054 1.056 0.291 0.558 1.791 Performance Based Rewards 0.108 0.05 0.14 0.385 0.756 0.437 2.289 Mediator (OCBHPWS) 0.077 0.05 0.145 1.969 0.047 0.189 5.293 a. Dependent Variable: OP Step 3 exhibits that the HPWS dimensions which has been appeared as significant in step

1, most of the practices happened to be insignificant in third step which reproduces full mediation of organizational citizen behavior between HPWS and OP.

Table 7 Summary of the Results

The tested hypothesis to address the research questions with finding are presented in table 7 below for convenient of the reader.

Hypothesis Tested Correlation Results

Regression Results

H1: HPWS is positively associated with organizational performance in banking sector of Pakistan, HPWS predicts OR OP

Accepted Accepted

H2: HPWS is positively associated with OCB in banking sector of Pakistan.

Accepted Accepted

H3: OCB governs and mediates the association between HPWS and OP

Accepted Accepted

Page 16: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 402 [email protected]

The above-mentioned variables HPWS demonstrated increase in organizational performance through enhancing RHP, IM, HLT and Performance Based Rewards of the

employee. Only Empowerment and Result Oriented Appraisal are such HPWS practices which are failed to show powerful and positive impact on OP. Moreover, results of research

indicate that if a firm may acquire the best Rigorous Hiring Processes, provide the opportunities of High Levels of Training as well as allow its workers to participate in the

decisional processes and empower its employees by involving them then outcomes will be substantial. In addition, providing compulsory skills as well as well implemented feedback processes resulting advanced level of OP. Current study exhibits that the five practices have positive impact on the level of OP that is very satisfactory indication for the current study. Hence hypotheses 3 of the current study are accepted i-e OCB mediates between HPWS and OP.

6. FINDINGS, CONCLUSION AND DISCUSSIONS The main objective of the current study has been served substantially, that was to explore the impact of high performance work system which covers the modern trends and conceptual road map to the high performance of organizations in the occurrence of HPWS practices as well as absence of HPWS. In broader spectrum of relational perspective attempt was made to explore mediating part of OCB between HPWS and OP carefully according to specific concentration to highlight the eminent possible role of performance in banking sector of AJ&K Pakistan.

It has been viewed that HPWS is the major source of competitive advantage for an organization and can improve the performance at individual and organizational-level. The

objective of this study was to investigate the impact of HPWS on the organizational performance, while the mediating effect of OCB was also examined HPWS and OP of banking sector of AJK Pakistan.

The results confirmed that there was significant positive relationship between HPWS; organizational performance HPWS practices predict OP, either directly or indirectly through OCB. Thus estimated results supported hypotheses (H1, H2, H3,) of the study. These finding are consistent with the previous studies from other cultures (e.g. Cooke et al. 2016; Kehoe and

Wright 2013; Karatepe 2013; Snape and Redman 2010). Similarly, mediation analysis revealed that OCB fully mediated the relationship of HPWS and organizational performance.

Thus, results supports hypothesis H3 related with mediation of OCB in HPWS and OP relationships. Regarding the positive impact of HPWS practices on OP found in this study, similar results have been revealed in the literature (e.g. Amin et al., 2014; Chan &Mak, 2012;

Chand & Katou, 2007; Moideenkutty et al., 2011; Osman et al., 2011; Theriou and Chatzoglou (2014); Shehata (2015).

This study proposes that HPWS significantly marls OP with or without the mediation process of OCB. The contribution of the predictor‟s value may be improved if the scope of the research may increase in order to take account of possession structure, economic conditions, size and share in the market of KSE registered profitable banks because of the fact that they are unwaveringly related with monetary presentation commonly and explicitly bank recital.

Decisive management of banking industry should initiate to utilize these HRM practices as a bundle i-e HPWS to make HR function strategically proactive as recommended by

Brockbank,(1999). A worthwhile management of HPWP system will generate and withstand competitive advantage resulting improvement in OP. Furthermore, OCB will create deeper

impact on relationship between HPWS and OP. Therefore, it is imperative for banking industry of AJ&K to make it guarantee that investment on their human resources and HRM practices (HPWS). It will recruit and retain competent human capital.

Page 17: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 403 [email protected]

REFERENCES [1] Arefin, M. S., & Islam, N. (2019). A study on the motivation to transfer training in the

banking industry of Bangladesh. South Asian Journal of Human Resources Management, 6(1), 45 72. doi:10.1177/ 2322093718803210 –

[2] Akhavan, P., Sanjaghi, M., Rezaeenour, J., & Ojaghi, H. (2017). Examining the Relationships between Organizational Culture, Knowledge Management and Environmental Responsiveness Capability. The Journal of Information and Knowledge Management Systems, 44(2), 228-248. http://dx.doi.org/10.1108/VINE-07-2012-0026

[3] Alshawi, M.T.S. (2015), "The impact of knowledge management processes on organisational performance", Journal of Enterprise Information Management, Vol. 28 No. 2, pp. 167-185.

[4] Amin, M., Ismail, W., Rasid, S., & Selemani, R. (2016). The Impact of Human Resource Management Practices on Performance. The TQM Journal, 26(2), 125-142.

http://dx.doi.org/10.1108/TQM-10-2011-0062 [5] -Tit, Ahmad, A. (2014, 2016). Integration of Human Resources Management Practices and Al

Operations Management and Its Impact on the Productivity and Profitability of Jordanian Manufacturing Companies (Quantitative Approach). Unpublished Ph.D Dissertation,

Lebanon: Jinan University. http://dx.doi.org/10.13140/RG.2.1.2027.5047 [6] Baron and Kenny (1986). Baron, R. M., & Kenny, D. A. (1986). The moderator mediator –

variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology 51, (6), 1173.

[7] Bateman, T. S., & Organ, D. W. (1983). Job satisfaction and the good soldier: The relationship between affect and employee “citizenship.” Academy of Management Journal,

26(4), 587 595. –

[8] Barnard, C. (1938). The functions of the executive. Cambridge, MA: Harvard University Press.

[9] Becker, B.E. and Huselid, M.A. (2006), "Strategic human resources management: Where do we go from here?", Journal of Management, Vol. 32 No. 6, pp. 898-925.

[10] Becker , B.E. and Huselid, M.A. (1998) „High performance work systems and firm performance: A synthesis of research and managerial implications‟, Research in Personnel and

Human Resources Management, 16, pp.53-101. [11] Boselie, P., Dietz, G. and Boone, C. (2005) „Commonalities and Contradictions in HRM and

Performance Research‟, Human Resource Management Journal,15(3), pp. 67-94 [12] -firm performance linkages: The role Bowen, d.e. and Ostroff, C. (2004) „Understanding HRM

of the strength of the HRM system‟, Academy of Management Review, 29(2), pp. 203-212 [13] Boxall, P., & Purcell, J. (2007). Strategy and human resource management. Basingstoke,

U.K.: Palgrave Macmillan. [14] Chadwick, C., & Dabu, A. (2009). Human resources, human resource management and

competitive advantage of firms: Towards a more comprehensive model of linkages. Organization Science, 20(1), 253−272.

[15] Chang, 2005; Chang, W. J., & Chun Huang, T. (2005). Relationship between strategic human resource management and firm performance: a contingency perspective. International Journal of Manpower, 26(5), 434 449. –

[16] Chamberlin, M., Newton, D. W., & LePine, J. A. (2018). A meta-analysis of empowerment and voice as transmitters of high-performance managerial practices to job performance.

Journal of Organizational Behavior, 39(10), 1296 1313, doi:10.1002/job. v39.10 –

[17] Castro, G.M.D. (2015), "Knowledge management and innovation in knowledge-based and high-tech industrial markets: The role of openness and absorptive capacity", Industrial Marketing Management, Vol. 47, pp. 143-

146.http://dx.doi.org/10.1016/j.indmarman.2015.02.032

Page 18: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 404 [email protected]

[18] Cooke et al. 2016; Cooke, F. L., Cooper, B., Bartram, T., Wang, J., & Mei, H. (2016). Mapping the relationships between high-performance work systems, employee resilience and engagement: A study of the banking industry in China. The International Journal of Human Resource Management, 30(8): 1 22. –

[19] Combs, J., Yongmei, L., Hall, A. and Ketchen, D. (2006) „How much do high-performance work practices matter? A meta-analysis of their effects on organizational performance‟,

Personnel Psychology, 59(3), pp.501-528 [20] Chen, S.-H., Wang, H.-H. and Yang, K.- J. (2009), “Establishment and application of

performance measure indicators for universities”, The TQM Journal, Vol. 21 No. 3, pp. 220-235.

[21] Chan, S., & Mak, W. (2014). High Performance Human Resource Practices and Organizational Performance: The Mediating Role of Occupational Safety and Health. Journal

of Chinese Human Resources Management, 3(2), 136-150. http://dx.doi.org/10.1108/20408001211279238

[22] Chand, M., & Katou, A. (2007). The impact of HRM Practices on Organizational Performance in the Indian Hotel Industry. Employee Relations, 29(6), 576-594.

http://dx.doi.org/10.1108/01425450710826096 [23] Chang, C., & Lin, T. (2015). The Role of Organizational Culture in the Knowledge

Management Process. Journal of Knowledge Management, 19(3), 433-455. http://dx.doi.org/10.1108/JKM-08-2014-0353

[24] Chiang, H., Han, T., & Chuang, J. (2011). The Relationship between High-Commitment HRM and Knowledge-Sharing Behavior and Its Mediators. International Journal of Manpower, 32(5/6), 604-622. http://dx.doi.org/10.1108/01437721111158224

[25] Danford, A., Richardson, M., Stewart, P., Tailby, S. and Upchurch, M. (2008) „Partnership,

High Performance Work Systems and Quality of Working Life‟, New Technology, Work and Employment 23(3): 51 166. –

[26] Daft, R.L. (2000) Organisation Theory and Design. (7th ed.) South-Western College Publishing, Thompson Learning. U.S.A

[27] Dunlop, P., & Lee, K. (2004). Workplace deviance, organizational citizenship behavior, and business unit performance: The bad apples do spoil the whole barrel. Journal of

Organizational Behavior, 80(1), 67 80. –

[28] Datta, D. K., Guthrie, J. P., & Wright, P. M. 2005. Human resource management and labor productivity: Does industry matter. Academy of Management Journal, 48: 135 145. –

[29] Delery, J.E. and Doty, H.D. (1996), “Modes of theorizing in strategic human resource management: tests of universalistic, contingency, and configurational performance

predictions”, Academy of Management Journal, Vol. 39 No. 4, pp. 802-835. [30] Fabling, R. and Grimes, A. (2010) „HR practices and New Zealand firm performance: what

matters and who does it‟, The International Journal of Human Resource Management, vol. 21, no. 4, pp. 488 508. –

[31] Guthrie J.P., Flood P. C., Liuc W., MacCurtain S. (2009). “High performance work systems in Ireland: human resource and organizational outcomes.” The International Journal of Human

Resource Management. 20(1): 112 125 –

[32] Gong, Y., Chang, S., & Cheung, S.-Y. (2010). High performance work system and collective OCB: A collective social exchange perspective. Human Resource Management Journal, 20(2), 119 137. –

[33] Gupta, M. (2017). Corporate social responsibility, employee Company identification, and –

organizational commitment: Mediation by employee engagement. Current Psychology, 36(1), 101 109. doi:10.1007/s12144-015-9389-8 –

Page 19: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 405 [email protected]

[34] Gupta, M., Ravindranath, S., & Kumar, Y. L. N. (2018, April). Voicing concerns for greater engagement: Does a supervisor‟s job insecurity and organizational culture matter? In M.

Gupta & M. Shaheen (Eds.), Evidence-based HRM: A global forum for empirical scholarship (Vol. 6, 1, pp. 54 65). United Kingdom: Emerald Publishing Limited. –

[35] Gupta, M., & Shukla, K. (2018). An empirical clarification on the assessment of engagement at work. Advances in Developing Human Resources, 20(1), 44 57. –

doi:10.1177/1523422317741692 [36] Huang, Y., Ma, Z., &Meng, Y. (2018). High-performance work systems and employee

engagement: Empirical evidence from China. Asia Pacific Journal of Human Resources, 56(3), 341 359. doi:10.1111/aphr.2018.56. issue-3 –

[37] HO,2008. Ho, L. (2008). What Affects Organizational Performance? : The Linking of Learning and Knowledge Management. Industrial Management & Data Systems,

108(9),1234-1254. http://dx.doi.org/10.1108/02635570810914919 [38] Huselid, M.A. (1995) „The impact of human resource management practices on turnover,

productivity, and corporate financial performance‟, Academy of Management Journal, 38(3),

pp. 635-672 [39] Javier (2002). A Review Paper On Organisational Culture And Organisational Performance.

www.ijbssnet.com/journals [40] Khan, Z., Rao-Nicholson, R., Akhtar, P., Tarba, S. Y., Ahamad, M. F., & Vorley, T. (2017).

The role of HR practices in developing employee resilience: A case study from the Pakistani telecommunications sector. The International Journal of Human Resource Management.

https://doi.org/10.1080/09585192.2017.1316759. [41] Koys, D. (2001). The effects of employee satisfaction, organizational citizenship behavior,

and turnover on organizational effectiveness: A unit‐level, longitudinal study. Personnel Psychology, 54(1), 101 114. –

[42] Kehoe, R. R., & Wright, P. M. (2013). The impact of high-performance human resource practices on employees‟ attitudes and behaviors. Journal of Management, 39(2), 366–391.

[43] Katz, D. (1964). The motivational basis of organizational behavior. Behavioral Science, 9, 131 146. –

[44] Karatepe 2013; Karatepe, O. M. (2013). High-performance work practices and hotel employee performance: The mediation of work engagement. International Journal of Hospitality

Management 32, , 132-140. [45] Karetape et al., 2015 Karatepe, O. M., & Olugbade, O. A. (2016). The mediating role of work

engagement in the relationship between high-performance work practices and job outcomes of employees in Nigeria. International Journal of Contemporary Hospitality Management,

28(10), 2350-2371. [46] Lam, S. S. K., Hui, C., & Law, K. S. (1999). Organizational citizenship behavior: Comparing

perspectives of supervisors and subordinates across four international samples. Journal of Applied Psychology, 84(4), 594 601. –

[47] Lee and Kim (2010) The Effects of Commitment-Based Human Resource Management on Organizational Citizenship Behaviors: The Mediating Role of the Psychological Contract.

World Journal of Management., 2(1), 130-147. [48] Lee and Yu (2004 Lee, S. K. J., & Yu, K. (2004).Corporate culture and organizational

performance.Journal of Managerial Psychology, 19(4), 340-359. [49] Lepak, D. P., & Snell, S. A. (2002). Examining the human resource architecture: The

relationships among human capital, employment, and human resource configurations. Journal of Management, 28, 517 543. –

[50] Muduli, A, Verma, S, & Datta, S. K. (2016). High performance work system in India: examining the role of employee engagement. Journal of Asia-pacific Business, 17(2), 130–

150.

Page 20: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour

http://iaeme.com/Home/journal/IJM 406 [email protected]

[51] Messersmith, J. G., Patel, P. C., & Lepak, D. P. (2011). Unlocking the black box: Exploring the link between high-performance work

[52] MacKenzie, S. B., Podsakoff, P. M., & Fetter, R. (1991). Organizational citizenship behavior and objective productivity as determinants of managerial evaluations of salespersons‟

performance. Organizational Behavior and Human Decision Processes, 50(1), 123 150. –

[53] Matzler & Renzl, (2007), Matzler, K., & Renzl, B. (2007). Assessing asymmetric effects in the formation of employee satisfaction. Tourism Management 28, (4), 1093-1103.

[54] Morrison, E. W. (1994). Role definitions and organizational citizenship behavior: The importance of the employee‟s perspective. Academy of Management Journal, 37(6), 1543–

1567. [55] Maheshwari, S., & Vohra, V. (2015). Identifying Critical HR Practices Impacting Employee

Perception and Commitment During Organizational Change. Journal of Organizational Change Management, 28(5), 872-894. http://dx.doi.org/10.1108/JOCM-03-2014-0066

[56] Moideenkutty, U., Al-Lamki, A., & Murthy, Y. (2011). HRM Practices and Organizational Performance in Oman. Personnel Review, 40(2), 239-251.

http://dx.doi.org/10.1108/00483481111106101 [57] Mihail, D.M. and Kloutsiniotis, P. V. (2016), " The effects of high-performance work systems

on hospital employees' work-related well-being: Evidence from Greece", European Management Journal, pp. 1-15. http://dx.doi.org/10.1016/j.emj.2016.01.005.

[58] MacDuffie, J. P. 1995. Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto

[59] Osman, I., Ho, T. C. F., & Galang, M. C. (2011). The relationship between human resource practices and firm performance: An empirical assessment of firms in Malaysia. Business

Strategy Series, 12(1), 41−48. [60] Organ, D. W. (1988). Organizational citizenship behavior: The good soldier syndrome.

Lexington, MA: Lexington Books. [61] Organ, D. W. (1997). Organizational citizenship behavior: It‟s construct clean-up time.

Human Performance, 10(2), 85 97. –

[62] Podsakoff, P. M., & MacKenzie, S. B. (1994). The impact of organizational citizenship behavior on sales unit effectiveness. Journal of Marketing Research 3, :351 363. –

[63] Podsakoff, P. M., & Mackenzie, S. B. (1997). Impact of organizational citizenship behavior on organizational performance: A review and suggestions for future research. Human

Performance, 10(2), 133 151. –

[64] Podsakoff, N. P., Whiting, S. W., Podsakoff, P. M., & Blume, B. D. (2009). Individual- and organizational-level consequences of organizational citizenship behaviors: A meta-analysis.

Journal of Applied Psychology, 94(1), 122 141. –

[65] Richard et al. (2009) Measuring Organisational Performance: Towards Methodological Best Practice. Journal of Management.

[66] Shin, D., & Konrad, A. M. (2017). Causality between high-performance work systems and organizational performance. Journal of Management, 43(4), 973 997. –

[67] Sharabati, Jawad and Bonis (2010) Sharabati, A., Jawad, S.,& Bontis, N. (2010). Intellectual Capital and Business Performance in the Pharmaceutical Sector of Jordan. Management

Decision, 48(1), 105-131.http://dx.doi.org/10.1108/00251741011014481. [68] Shehata, G. (2015). Leveraging Organizational Performance Via Knowledge Management

Systems Platforms in Emerging Economies: Evidence from the Egyptian Information and Communication Technology (ICT) Industry. VINE, 45(2), 239-278.

http://dx.doi.org/10.1108/VINE-06-2014-0045

Page 21: HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE… · 2020. 9. 29. · HIGH PERFORMANCE WORK SYSTEMS AND ORGANIZATIONAL PERFORMANCE: THE ... Seven HPWS practices i-e

Shagufta Ashraf and Iftikhar Hussain

http://iaeme.com/Home/journal/IJM 407 [email protected]

[69] Sun, L. Y., Aryee, S., & Law, K. S. (2007). High-performance human resource practices, citizenship behavior, and organizational performance: A relational perspective. Academy of Management Journal, 50(3), 558−577.

[70] Snape, E., & Redman, T. (2010). HRM practices, organizational citizenship behaviour, and performance: A multi-level analysis. Journal of Management Studies, 47(7), 1219 1247. –

[71] Snell, S.A. & Dean, J.W. (1992). Integrated manufacturing and human resource management: A human capital perspective. Academy of Management Journal 35, (3): 467-504.

[72] State bank of Pakistan, 2016 State Bank of Pakistan, (2016). Quarterly compendium: Statistics of the banking system. Retrieved from http://www.sbp.org.pk/ecodata/fsi/qc/2016/Mar.pdf.

[73] Tang, T. W., & Tang, Y. Y. (2012). Promoting service-oriented organizational citizenship behaviors in hotels: The role of high-performance human resource practices and

organizational social climates. International Journal of Hospitality Management, (3), 885-31895.

[74] Theriou, G., & Chatzoglou, P. (2014). The Impact of Best HRM Practices on Performance- Identifying Enabling Factors. Employee Relations, 36 (5), 535-561.

http://dx.doi.org/10.1108/ER-02-2013-0025 [75] Takeuchi, R., Lepak, D. P., Wang, H., & Takeuchi, K. (2007). An empirical examination of

the mechanisms mediating between high-performance work systems and the performance of Japanese organizations. Journal of Applied Psychology, 92(4), 1069 1083. –

[76] Tregaskis, O., Daniels, K., Glover, L., Butler, P., & Meyer, M. (2013). High performance work practices and firm performance: A longitudinal case study. British Journal of

Management 24, (2), 225-244. [77] Way, S. (2002), "High performance work systems and intermediate indicators of firm

performance within the US small business sector", Journal of Management, Vol. 28 No. 6, pp. 765-785.

[78] Wood, S. (1999) „Human resource management and performance‟, International Journal of

Management Reviews, 1(4), pp.367-413. [79] Wright, P. M., & Nishii, L. H. (2012). Strategic human resource management and

organizational behaviour: Exploring variance as an integrating framework. International Journal of Paauwe, 4 (2), 97 110. –

[80] Zhang, B. and Morris, J.L. (2014), "High-performance work systems and organizational performance: Testing the mediation role of employee outcomes using evidence from PR

China", The International Journal of Human Resource Management, Vol. 25 No. 1, pp. 68-90. [81] Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure,

strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research 63, (7), 763-771.

[82] Zhang, M., Di Fan, D., & Zhu, C. J. (2014). High-Performance Work Systems, Corporate Social Performance and Employee Outcomes: Exploring the Missing Links. Journal of

Business Ethics, 120(3), 423-435