High Performance Work System, Service Climate and Service Performance: The Role of Job Stress

Abstract

This study examines the relationship betweenHPWS (High performance work system) and service performance along with the mediating effects of service climate and the moderating role of job stress. Even though, researchers have confirmed the positive connection between HPWS and firm performance but previous studies were criticized by scholarsfor being management-centric.This research adds significant value in the literature by studying employee perspective of HPWS, how it shapes the attitudes of the employees and generates the service climate which acts as a mediating role between HPWS and in achieving Service Performance of the organization. For the purpose of this study, data was collected through 21 different public and private banks of 50 branches of selected cities of Punjab i.e. Multan, Bahawalpur, Lahore, Islamabad and Dera Nawab. Study results revealed that HPWS was significantly related to service performance. Further,the service climatepartially mediated the direct relationships between HPWS and service performance. Empirical findings of this study implied that positively perceived HPWS by front line employees can influence the service-related behaviors and produce service climate in the organization and its positive impact on service performance. This researchalso contributes by studying job stress as a moderator and the risk of the negative influence of HPWS associated with it.