Do High-Performance Work Systems Have Financial Impact On Orgamizational Performance

Abstract

The main idea of this research is to examine the financial impact of  high-performance work systems (HPWS) on organizational performance of the banking sector of Pakistan. This study is conducted in two phases concerning data collection and analysis. In the first phase, cross-sectional data were collected from the staff of the banking sector through a questionnaire. In the second phase, the financial data of the banks were collected for the same financial year in which primary data was collected. The analysis was performed using SmartPLS. Primary data on employees' perceptions about the extent of high-performance work system was collected from 392 bank employees. In addition, performance measures were obtained from the banks' annual reports. Results have shown that HPWS is significantly related to organizational performance in terms of return on equity, return on assets, and earnings per share.