The Impact of High-Performance Work Systems (HPWS) on employee’s commitment: The Mediating Role of Psychological Empowerment in banking Sector of Khairpur Mir’s, Sindh, Pakistan

Abstract

This study investigates the influence of High-Performance Work Systems (HPWS) on employee commitment and Psychological Empowerment is used as a mediating variable in banking sector of Khairpur Mir's, Sindh, Pakistan. The survey design was quantitative cross sectional with random sampling method to choose the samples, which consisted of 250 employees from different banks, which were provided a questionnaire of 15 items using the 5-point Likert scale to collect the data of the components of HPWS, psychological empowerment and employee commitment. The hypothesized relationships were tested by means of three different analyses: reliability analysis, correlation analysis, and regression analysis using Hayes' PROCESS macro (Model 4) implemented through SPSS version 27. The findings indicated that the internal consistency of the items was excellent (Cronbach's α = 0.941) and the correlation among all the variables in the study showed strong positive values. HPWS highly predicted psychological empowerment (β = 0.8722, p < 0.001) and employee commitment (β = 0.3869, p < 0.001), psychological empowerment highly predicted employee commitment (β = 0.5669, p < 0.001). The indirect effect of HPWS on employee commitment through psychological empowerment was significant (β = 0.4944, 95% CI [0.3128, 0.8041]), and accounted for about 56% of the total effect, suggesting that psychological empowerment is an important mediating mechanism between HPWS practices and employee commitment outcomes. This study extends the theory of HPWS to the less studied semi-urban banking context of Khairpur Mir's, Pakistan, and provides empirical evidence of the key mediating role of psychological empowerment, and it also provides valuable insights for HR practitioners and policy makers on how to effectively implement strategic HR practices to improve employees' commitment in developing country banking sectors.

Keywords: High-Performance Work Systems, Psychological Empowerment, Employee Commitment, Banking Sector, Khairpur Mir's