Abstract
For an extended period of time, high-performance work systems (HPWS) were debated by scholars whether they indeed enhance employees’ workplace well-being at the individual level. While some scholars proposed that HPWS create a mutually reciprocal relationship between the employees and the firm and thereby enhance employee well-being, other scholars have countered the idea suggesting that HPWS intensify the work expectancy of the employees and, in turn, impair employee well-being. Underpinned by signaling theory, I reconcile the two contradicting perspectives toward HPWS and explore how two distinct organizational climates (i.e., climate of unity and performance) emerge from using HPWS and influence employee workplace well-being. Moreover, I also investigate how union density act as a boundary condition that strengthens the relationship between HPWS and climate of unity, while weakening the relationship between HPWS and climate of performance. Using a South Korean dataset comprised of 422 firms and 9,538 employees, I found that HPWS elicit the two organizational climates. Further, I also found that climate of unity was more saliently derived from HPWS when union density was high. Overall, this study provides nuanced theoretical and empirical accounts that reconcile the conflicting theories of prior HPWS studies. This study also offers practical implications regarding what factors need to be considered to gain intended employee-level outcomes from HPWS.
Published Version
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