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. Practical implications These results have important implications from two points of view. From the point of view of relational coordination, they show how the concept might apply in a previously under-researched sector, and also how relational coordination might act as a mediator for HR practices other than those aimed directly at enhancing employee opportunities. Breaking down HPWS into its component parts suggests that individual employee ability and motivation might also play a role. 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.