Multiple theoretical linkages are developed for High Performance Work System (HPWS). This model explores the HR system, its links with performance and performance outcomes based on the direction given by Guest (1997). This article attempts to provide three pathways for effect of HPWS on performance—first through direct effect on employee’s skill and ability, second through system effect produced by creation of organizational climate through internal fit, and lastly, interaction effect produced by strategic context through external fit. Further performance of organization is considered as employee level outcomes, organizational level outcomes and financial level outcomes.
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