Walk or Talk? The Effect of High Performance Work System Strength on Organizational Effectiveness in Selected Banks in Sri Lanka

Abstract

The purpose of this paper is to examine the implications of High Performance Work System (HPWS) strength for Organizational Effectiveness (OE) from the managerial perspective in the banking industry in Sri Lanka. The author used a case study approach for data collection with archival analysis of records and semi- structured interviews with the CEO, Head of HR, two board members and three focus groups (top, middle, and lower level managers across various functional areas) in each bank which altogether covers 44 key informants. The findings support the proposition that the importance of a strong commitment by all the managers across the managerial hierarchy to transmit relevant, consistent and valid Human Resource Management (HRM) messages and information across the organization leads to more effective organizational effectiveness. Case study informants reported links between HPWS strength and OE. Key Words: High Performance Work Systems, High Performance Work System Strength, Organizational Effectiveness, Banking Industry, Sri Lanka