High-performance work systems and employee outcomes in Indian call centres: a mediation approach

• Published in: Personnel review 2018-05, Vol.47 (4), p.931-950
• Main Authors: Ananthram, Subramaniam, Xerri, Matthew J, Teo, Stephen T.T, Connell, Julia
• Format: Article
• Language: English
• Subjects: Call centers; Developing countries; Employee attitude; Employee involvement; Employee retention; Employment; Flexibility; High performance systems; Human resources; Influence; Job satisfaction; LDCs; Mediation; Skills; Socialization; Studies; Workers; Workloads
• ISSN: 0048-3486; 1758-6933
• DOI: 10.1108/PR-09-2016-0239

Purpose The purpose of this paper is to empirically examine the relationships between high-performance work systems (HPWSs) and four employee outcomes – job satisfaction, employee engagement, presenteeism and well-being – in Indian call centres. Design/methodology/approach A path model is developed to investigate the direct and mediation effects between the assessed variables. The study utilised a survey of 250 call centre employees working in five business process management firms based in India. Findings The findings indicate that HPWSs have a positive relationship with job satisfaction, engagement and well-being. Job satisfaction also had a positive relationship with engagement and presenteeism, and engagement was positively related to presenteeism and well-being. However, there was no significant direct effect of HPWS on presenteeism. Mediation analysis showed that HPWS has an indirect effect on well-being via engagement and also via job satisfaction and engagement combined. Research limitations/implications HPWS significantly increases job satisfaction and employee engagement and indirectly influences employee well-being via these outcomes. However, job satisfaction and employee engagement was also found to increase presenteeism, which, in turn, can reduce employee well-being. These findings contribute to the HPWS theory and the literature on employee well-being, and have implications for HR personnel and call centre management. Originality/value Given the well-established challenges with employee retention in Indian call centre environments, one solution may be the adoption of a more strategic approach to HRM using HPWS. Such an approach may enhance employees’ perceptions that HPWS practices would have a positive influence on job satisfaction, employee engagement and employee well-being.