The Effects of High Performance Work Systems and Leader-Member Exchange Quality on Employee Engagement: Evidence from a Brazilian Non-Profit Organization

Abstract

Abstract The field of strategic human resource management (SHRM) is mainly concerned with the development of HRM systems that create value to the organization and its internal customers. In this paper, we evaluate the effects of high performance work systems (HPWS) and leader-member exchange (LMX) quality on employee engagement, and also the relationship between employee engagement and turnover intention. The research involved 189 employees of a nonprofit Brazilian organization. Results from hierarchical multiple regression analyses showed that HPWS and LMX quality have a positive and significant effect on employee engagement. It was also shown that engagement has a negative and significant effect on employees’ turnover intention. Implications of these findings are discussed.