Impact of High Performance Work System on Organizational Performance: A Study from Sri Lankan Cable Manufacturing Industry

Abstract

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.

Relationship Between High-Performance Work Practices (Hpwps) And Achieving Organizational Excellence

“…In a distinct corporate setting, HR practices build organizational value. In a nutshell, the viewpoint affirms that, regardless of corporate principles, HR practices are always advantageous to the organization (Karunarathna, 2021). Integrationists stated that when HR practices are applied in a complementing package, the benefits to the business are multiplied.…”

“…Various conceptual methods have been used to investigate the relationship (Al-Taweel, 2021). Resource-based view, expectancy theory, ability-motivation-opportunity model, social exchange theory, behavioral theory, resource dependency theory, labor process theory, human capital theory, strategic management, and so on are examples of these frameworks (Grobler, & De Bruyn, 2018;Chaturvedi, & Vats, 2018;Odiaka, & Chang, 2019;Karunarathna, 2021). The theories primarily relate HPWPs to both firm-and employee-level results (Brinck, et al, 2019) by influencing employees' skills, knowledge, values, ability, opportunities, motivation, communication, involvement, relevance, and flexibility (Garg, 2019).…”

Pengaruh Green Marketing Mix Terhadap Green Product Purchase Intention Pada Produk Love Beauty And Planet Di Surabaya

“…Dengan kualitas yang baik, desain yang inovatif dan ramah lingkungan juga akan membuat konsumen berniat untuk membeli produk ramah lingkungan untuk produk Love, Beauty and Planet. Hasil penelitian ini didukung oleh penelitian yang telah dilakukan oleh (Karunarathna et al, 2020) menyimpulkan bahwa green price memiliki pengaruh yang signifikan terhadap green product purchase intention.…”