The impact of high performance work systems on retention of employees and performance in higher educational institutions: A case of selected business schools in Pakistan

Abstract

This study examines the impact of High Performance Work Systems (HPWS) on faculty level in Business Schools and their performance. This includes the examination of usage of HPWS on the employee’s innovative work behaviours, individual level performance. It also checks the role of the moderating variable ‘’Employee Turnover’’ on HPWS and performance. The study uses data collected from 17 universities in Islamabad and Rawalpindi. This included 251 faculty members from the 17 selected Business Schools of Pakistan. This study shows that an extensive application of HPWS is associated with an increase in employee’s innovative behaviours, individual-level performance and increased employee retention. The study examined employee’s perceptions of the HPWS practices and their impact on individual level performance and employee’s innovative work behaviours. Specifically, the study also measures whether job demands and tenure intensions moderate the relationship between HPWS practices and performance. In total 251 employees were surveyed. Overall, employee-level findings suggest that high performance work systems are associated with employee’s innovative work behaviours and individual level performance. This study uses average method to examine the impact of HPWS utilisation on employee-level. It also uses correlation and linear regression as well as ANOVA methods to test the results. Overall, findings suggest that greater use of HPWS is associated with increase in employee performance, and employee retention.