The Performance Effect of HPWS and Relational Coordination on Branch Efficiency: A Data Envelopment Analysis Approach

Abstract

This study is set to analyse the role of high-performance work systems which is mainly aimed to boost knowledge, skills, and abilities of human resources in the form of effective communication and better coordination termed as relational coordination and subsequently improving performance. Using the theory of relational coordination that explains the relational aspects of coordination along with effective communication to influence performance outcomes, the study obtained data from 218 branches through survey focusing on employees’ perspectives regarding high-performance work system in anticipating relational coordination among employees in performing focal work process of branch banking functions. The data obtained from officers was analysed through the Data Envelopment Analysis approach to identify efficient bank branches pivotal in formulating optimal policy measures. Results indicated that high-performance work systems envisaged relational coordination via the intervention of deposits and profitability. The findings contribute to the literature of high-performance work systems by indicating what interventions in high-performance work systems and the relational coordination may lead to bringing down operations cost or making improvements in the delivery of banking services. The study also implies that compared with managerial perspectives in the field, employees’ perspectives provide significant insights about the relational process in explaining how a well-coordinated approach towards HR systems establish the social context for better HRM practices, enhancing.