The role of relational coordination in the relationship between high-performance work systems (HPWS) and organizational performance

Purpose The purpose of this paper is to look at the role relational coordination might play in understanding the relationship between high-performance work systems (HPWS) and organizational performance. Design/methodology/approach Research was conducted in a large financial services provider in Pakistan. Across 120 branches of the bank, data on relational coordination and on the practices making up HPWS were obtained from employees by means of a questionnaire survey. Data on branch-level performance were obtained independently of this, from the bank itself. Findings Analysis shows relational coordination to be a mediating variable between HPWS and branch performance. Relational coordination is also a mediating variable for each of the three component parts of HPWS: ability-enhancing, motivation-enhancing and opportunity-enhancing HR practices. Originality/value This suggests that the ability-motivation-opportunity model needs to place greater emphasis on opportunity, and also that more account needs to be taken of the structural aspect of work - in particular, the degree of interdependence.