Impact of High-Performance Work Systems on Employee Performance and Employee Engagement: The Mediation of Organizational Resilience.

This study examines the relationship between high-performance work systems (HPWS), employee performance(EP), and engagement (EE) in the Indian service sector. We also examined the mediating effect of organizationalresilience (OR) on the relationship between high-performance work systems, employee performance, and engagement.We collected data using an online questionnaire from 341 Junior, middle, and upper-level managers from IT, Software,consulting, and other service organizations. We analyzed the data using confirmatory factor analysis and tested themodel with structural equation modeling and mediation analysis. The results suggest that HPWS positively affectedemployees’ performance and engagement. The findings also demonstrate that OR mediated the relationship betweenHPWS and EP, HPWS and EE. Implementing HPWS would enable service organizations to become more resilient andfoster engagement and performance among managers. India's service sector must adopt high-performance work systemsto adapt to challenging times. Organizations must invest in human capital to develop their capabilities, enabling them tocope with challenges, thrive in uncertainty, and create a resilient organization. It validates the notion that the servicesector can build and deploy valuable human capital to reduce or absorb market turbulence/ uncertainty with theincreased capability of organizations, provided they adopt high-performance work systems.