Human Resource Practices and Operational Effectiveness in a Managerial Sample

Anchored in an integration of social exchange and contingency theories, we propose and examine a moderated mediation model of processes linking a high-commitment HR system to operational effectiveness. Time-lagged data were obtained from a sample of managerial level respondents (N=320) drawn from 112 establishments in Sri Lanka. Our findings show that high-commitment HR system relates to operational effectiveness but indirectly through a serial mediation involving psychological need satisfaction and gratitude toward the organization. Furthermore, organizational structure interacts with a high-commitment HR system to influence psychological need satisfaction such that the serial mediation to operational effectiveness is stronger when organization structure is high (organic) but not low (mechanistic). We interpret these findings in terms of their implications for the effective implementation of a high-commitment HR system and the resulting employee-based resources to create sustained competitive advantage.