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

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 pointed out that all the variables under study 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 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