The Effect of High-Performance Work System Perception on Employee Engagement and Employee Performance
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Abstract
This study examines the relationship between the effect of high-performance work system perception on employee engagement and employee performance using Structural Equation Model (SEM) to analyze the data from a sample of 265 employees at the operational level of a tool manufacturer. The result shows that employees’ perception of the high-performance work system does not have a direct effect on employee performance, but it has an indirect effect on employee performance through employee engagement. In other words, employees’ perception of the high-performance work system results in employees being more engaged in their work; causing employees to be more determined to perform their jobs to achieve high performance results as well as being prepared to perform assigned tasks with high performances. The results of this study provide recommendations for management teams in formulating resource management policies so that the organization can achieve high performance through good employee performances.
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