The Impact of High Performance Work Systems on Organizational Performance A Study of the Fast Moving Consumer Goods Sector in Sri Lanka

Abstract

Area of the Study This study seeks to explore the relationship between high performance work systems (HPWS) and organizational performance (OP) in the Fast Moving Consumer Goods (FMCG) Sector in Sri Lanka. Problem of the Study Empirical and theoretical knowledge gap of the impact of HPWS practices on OP (employee commitment) in the FMCG Sector in Sri Lanka. Method of the Study The data for the present study was collected from 50 respondents (25 respondents (50%) are managerial consisting of both managers and executives and the remaining respondents are nonmanagerial) in the FMCG sector by administrating a structured questionnaire, which consisted of 41 questions/statements with a 5 point scale. The data analysis included the univariate, bivariate, and multivariate analysis method conducted using SPSS (version 16.0). Findings of the Study The finding of the study was that HPWS of the organization is positively and strongly correlated with employee commitment in the FMCG sector in Sri Lanka. As per the multiple regression analysis, 63.7% of the variance in the employee commitment has been accounted or influenced by the HPWS. Conclusion of the Study It is clearly concluded in this study that HPWS should be considered by the organizations to enhance the employee commitment in the FMCG sector in Sri Lanka since 63.7% of the variance in the employee commitment has been accounted by the HPWS.