The effect of high involvement work systems on organisational performance and employee well‐being in a Spanish industrial context

Abstract

AbstractThis study investigates whether employee perceptions of High Involvement Work Systems (HIWS) mediate the positive relationship between implemented‐HIWS and the parallel outcomes of employee well‐being and organisational performance. To test these relationships, data was collected from 20,646 employees and 2066 managers in 198 organisations from Spanish industrial companies (mainly small and medium enterprises, SMEs). Results from a 2‐1‐2 multilevel structural equation modelling analysis showed that implemented‐HIWS are positively related to perceived‐HIWS, which in turn, are positively associated with both financial performance and the well‐being outcomes of job satisfaction and positive affect while being negatively associated with the well‐being outcome of negative affect. Finally, the study also showed a direct negative effect of implemented‐HIWS on job satisfaction suggesting that the source from which HIWS are rated matters for their consequences on some well‐being outcomes. We discuss the implications of these results for theory and practice.