IMPACT OF HIGH PERFORMANCE WORK SYSTEM ON JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT: EVIDENCE FROM MICROFINANCE COMPANY

Abstract

The concept of High-Performance Work System (HPWS) has attracted the attention of researchers due to its possible benefits in organizations. HPWS involves a set of interconnected human resource practices which are designed to promote employees’ satisfaction, commitment, productivity and other work behaviours. The objective of the current study is to identify the influence of HPWS on employees’ job satisfaction and organizational commitment in a microfinance company in Colombo. A sample of 90 staff working in the company was selected for the study using simple random sampling method. The study is explanatory and a cross sectional survey method was employed. Data were analyzed using SPSS and regression analysis was performed to test the hypotheses of the study. The results revealed that HPWS positively influences the job satisfaction and organizational commitment. The study gives an insight that the firms that look for higher employee satisfaction and commitment among the employees should focus on HPWS and should take action to invest in HPWS. Future studies may consider longitudinal study to find the association among the constructs. Further, future research could be extended to the other microfinance institutions in Sri Lanka.