An Empirical Analysis of the Relationship between High Performance Work Systems, Job Satisfaction and Employee Loyalty
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Date
2019-03
Authors
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Journal ISSN
Volume Title
Publisher
UMT.Lahore
Abstract
Employee loyalty can be described as employees being devoted to the organization’s
success and have faith in that working for this company is their best choice. The major
aim of the research was to find out the mediating role of job satisfaction between High
Performance Work Systems (HPWS) and employee loyalty in banking industry of
Lahore, Pakistan. The researcher uses social exchange theory (SET) to support the
relationship between high performance work systems and employee loyalty and job
satisfaction. The researcher adopts quantitative research method and survey based study
is used as a research strategy. The researcher uses a questionnaire as a research tool to
collect the data for the research. The targeted population of the study are middle and
upper level officers of the banking sector in Lahore, Pakistan. A sample size of 260 is
selected and 260 questionnaires are circulated among the employees of different banks
of Lahore, Pakistan. SPSS 21.0 is used to conduct the analysis of the data. The tests
include descriptive analysis, reliability analysis, factor analysis, regression analysis and
mediation analysis. After surveying the employees of the banks, the research shows the
casual yet significant positive relationship between High Performance Work Systems
(HPWS), employee loyalty and job satisfaction. Research helped banks to devise
strategies to improve employee loyalty towards banks. Research also suggested that
asking about employee’s opinion creates a sense of belonging towards the organization
resulting in creation of Loyalty, employees should be engaged in job environment instead
of just imposing orders on them they should be involved in the betterment of the
organization.