High-Performance Work Systems on Organizational Performance in the Banking Sector of District Khairpur: The Mediating Role of Psychological Empowerment.

Authors

  • Khaleeque Rahman Banbhan Ph.D. Scholar at Institute of Public Administration, Shah Abdul Latif University, Khairpur
  • Dr Muneer Ahmed Shah Professor at Institute of Public Administration, Shah Abdul Latif University, Khairpur
  • Syed Hassan Mehdi Ph.D. Scholar at Institute of Public Administration, Shah Abdul Latif University, Khairpur
  • Mughal Aziz ur Rahman Ph.D. Scholar at Institute of Public Administration, Shah Abdul Latif University, Khairpur
  • Nazia Saleem M.S in Marketing from Business Administration, Sukkur IBA University.

Abstract

For many companies in today's competitive business landscape, there is never a moment to rest on their laurels when it comes to improving performance and maintaining a competitive edge. This research aims to investigate the relationship between High Performance Work Systems (HPWS) and Organizational Performance in banking sector of District Khairpur Pakistan by considering the mediating role of Psychological Empowerment. The study used the quantitative cross-sectional survey design and 220 employees were selected from different banks of District Khairpur and data was collected using a structured questionnaire containing 15 items on 5-point Likert scale. The data analysis was done with SPSS version 27, reliability analysis, correlation analysis, regression analysis and PROCESS macro for mediation analysis. The results indicated that the items possessed good internal consistency (Cronbach's Alpha = .938), high positive correlations between all the items with HPWS significantly and highly correlated with Organizational Performance (r = .887) and Psychological Empowerment (r = .861), respectively. The results of regression analysis revealed that HPWS significantly predicted Organizational Performance (β = .4187, p < .001) and Psychological Empowerment (β = .8589, p < .001). Indirect effect of HPWS on Organizational Performance via Psychological Empowerment was significant (Effect = .4511, BootLLCI = .2568, BootULCI = .7681), which was consistent with the partial mediation model. The study finds that HPWS not only has a direct positive effect on organizational performance, but also an indirect effect through the mediation of psychological empowerment. Findings add to the body of literature of strategic HRM by resolving the "black box" problem and adding empirical evidence from an under-researched environment such as District Khairpur.

Keywords: High-Performance Work Systems, Psychological Empowerment, Organizational Performance, Banking Sector, District Khairpur.

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Published

2026-01-15

How to Cite

Khaleeque Rahman Banbhan, Dr Muneer Ahmed Shah, Syed Hassan Mehdi, Mughal Aziz ur Rahman, & Nazia Saleem. (2026). High-Performance Work Systems on Organizational Performance in the Banking Sector of District Khairpur: The Mediating Role of Psychological Empowerment. `, 5(01), 3878–3890. Retrieved from https://www.assajournal.com/index.php/36/article/view/1949

Issue

Vol. 5 No. 01 (2026): Advance Social Science Archive Journal

Section

Articles

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