The link between perceived high-performance work practices, employee attitudes and service quality

Abstract

Purpose – The purpose of this paper is to focus on the Greek banking sector and examine the indirect effects of high-performance work systems (HPWS) on service quality. Specifically, this study examines the effects of employees’ perceptions of HPWS on their trust toward their managers, as well as on service quality, through the mediating role of employee outcomes (measured by job satisfaction and affective commitment). In addition, trust is also tested for its role as a potential mediator and moderator in the relationship between HPWS and employee outcomes. Design/methodology/approach – Partial least squares structural equation modeling was used on a sample of 350 front-line employees working in the Greek banking sector. Findings – The findings showed that employee outcomes mediated the relationship between HPWS and service quality. On the other hand, although trust mediated the relationship between HPWS and employee outcomes, no support was found for its moderating effect. Finally, although not included in the initial analysis, trust was found to play a mediating and moderating role in the relationship between HPWS and service quality. Practical implications – This study highlights the vital role that a “trusting” work environment has to play on employee attitudes and outcomes. As this study shows, the positive employee behaviors along with their willingness to accept and support organizational goals influence their level of productivity. Originality/value – This study sheds lights on the mediating and moderating role of trust in the relationship between HPWS, employee outcomes, and service quality. Finally, implications are drawn for organizations, managers, and practitioners.