Decades of empirical research have given rise to an innovative paradigm of performance excellence through the institutionalization of appropriate work performance models. There is a wealth of empirical and theoretical evidence for the positive impact of high performance work systems on employees' productivity and profitability, where high performance work systems are associated with key elements of performance excellence. Sri Lankan companies have begun to participate in high performance work systems as a performance enhancement tool and have launched the institutionalization of innovative work systems at work. Nonetheless, XYZ Cables PLC, one of the leading cable manufacturers in Sri Lanka, is concerned about the most difficult obstacles to reaching its heights and maintaining a competitive edge, resulting in higher production costs and lower employee engagement, leading to lower profitability due to dynamic market conditions and ineffective people management. Therefore, the main objective of this study was to evaluate the impact of the high performance work methodology on the firm performance of XYZ Cables PLC using the AMO model developed by Jiang, Lepak, Han, Hong, Kim, and Winkler (2012) to formalize a high performance work culture that enhances organizational performance through three layers that present employees' abilities, motivation and opportunities. A case study approach was utilized via quantitative and qualitative data analysis tools for a focused vision using a structured questionnaire and focused group discussions.

The financial year of 2017 and 2018 marked drastic changes to the cable industry in Sri Lanka due to unexpected and unfavorable economic and external trends. As a result, the cable industry underwent a huge transition in terms of diminishing profits, losing the existing competitive edge and facing difficulties in sustaining in the market. Therefore, as a long term solution, the cable industry shifted their management focus from managing imitable resources to managing people for better results for their long term sustainability. Hence this research is an attempt to explore the impact of Strategic Human Resource Management (SHRM) on Organizational Performance of the Cable Industry in Sri Lanka and the mediating role played by Organizational Climate. Accordingly, three variables were conceptualized; Strategic Human Resource Management as the independent variable; organizational performance as the dependent variable; and organizational climate as the mediating variable. For the purpose of the study 126 respondents of the managerial staff of the cable industry was selected using systematic random sampling to obtain their views. Questionnaires were distributed to the respondents personally via email and data were collected which were analyzed using inferential and descriptive statistics. The research findings revealed that there is a positive linear relationship between SHRM and organizational performance, SHRM and organizational climate and organizational climate and organizational performance and that there is a mediating effect of organizational climate on the relationship between SHRM and organizational performance.