High Performance Work Systems To Increase Organizational Sustainability: Evidence From the Non-Life Insurance Industry In Thailand
Keywords:
organizational sustainability,, high-performance work systems, strategic human resources management,, organizational performanceAbstract
This study was conducted to determine how strategic human resources management (HRM) can contribute to organizational performance and sustainability. The research was undertaken as a mixed-methods study. For the qualitative component, interviews and a focus group were held with managers serving Thailand’s Non-Life insurance sector to gain insights into the factors that contribute to high-performance work system (HPWS) implementation, and how HPWSs contribute to organizational performance and sustainability. A model for HPWS implementation, performance, and sustainability was developed based on a review of the literature and refined after analyzing the qualitative data. A quantitative survey was then administered to managers of Thailand-based insurance companies and structural equation modelling (SEM) was conducted to test proposed relationships among the antecedents to HPWS implementation, non-financial performance outcomes, and organizational sustainability. The results indicated that organizational culture and HRM practices designed to enhance employee abilities, motivation, and opportunities contributed significantly to HPWS implementation, which in turn predicted the full range of performance outcomes included in the research model (technology adoption, innovation, knowledge management, organizational learning capacity, leadership effectiveness, job satisfaction, and other worker outcomes). There was also a statistically significant relationship between performance indicators and organizational sustainability.
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