The rapid diffusion of high performance work organizations (HPWO) has attracted the attention of many scholars in sociology and psychology over the last three decades. One area in which ongoing debates and evidence are inconclusive is the linkage between HPWO and the ‘psychological functioning’ of employees, specifically the issues of job satisfaction and job stress. This study examines, and thereby extends our understanding of, associations between workplace restructuring — adopting an ‘internalization strategy’ within HPWO — with job satisfaction and job stress. The findings reveal that the implementation of an internalization strategy has raised job satisfaction both directly and indirectly, through affecting job characteristics — while indirectly increasing job stress as well. The latter occurred because an internalization strategy speeds up work pace, develops conflicting demands and intensifies conflicts between work and family. The article concludes with a short discussion on the theoretical significance of the findings and their policy implications for human resource management.
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