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High Performance Work Systems

and Employee Turnover Intentions:


Moderating Effect of Psychological Attachment

Ophelia Delali Dogbe Zungbey(&), Noble Osei Bonsu,


Michael Akomeah Ofori Ntow, and Evans Sokro

Department of Human Resource Management,


Central Business School, Central University, P.O. Box 2305, Tema, Ghana
{odzungbey,nosei.bonsu}@central.edu.gh, ntow.
michael@gmail.com, evanssokro@gmail.com

Abstract. In the world of business today, consolidating human resource poli-


cies and practices into High-Performance Work System has become crucial not
only for employees and organisational success, but also for achieving compet-
itive advantage. Accordingly, extant literature argues that high-performance
work systems has a direct effect on individuals behaviour rather than been
influenced by other variables. The aim of this paper is twofold. First, to examine
the relationship between high-performance work systems and employee turn-
over intention. Second, to test the moderating effect of psychological attachment
on high performance work systems and turnover intention. For the purpose of
achieving the objectives of this study, the research adopted a cross-sectional and
correlating survey design. A multi-staged sampling technique was used to
sample two hundred and twenty-four (224) employees from the Ghanaian
banking sector. Both correlation and regression analysis were used to test
relationship and predictability of outcome variable by the predictor while
Hayes PROCESS was used to test for moderation. Results revealed that there
was a negative relationship between high-performance work systems and psy-
chological attachment. It was also found that a negative relationship exist
between high-performance work systems and employee turnover intention.
Additionally, psychological attachment is found to moderate the relationship
between high-performance work systems and turnover intention. It is however
argued that employees will seek other opportunities elsewhere if human resource
policies and practices does not lead to commitment or being psychologically
attached to the organisation.

Keywords: High-performance work systems  Psychological attachment 


Turnover intention

1 Introduction

High performance work systems are key invention of recent management; and have
had modern important effect on individual and organizational performance. The idea of
high-performance work system was based on the assumption that there exist systems of

© Springer Nature Switzerland AG 2020


J. I. Kantola and S. Nazir (Eds.): AHFE 2019, AISC 961, pp. 240–250, 2020.
https://doi.org/10.1007/978-3-030-20154-8_23
High Performance Work Systems and Employee Turnover Intentions 241

work practices for workers in an organization that somehow leads to higher perfor-
mance. [1] explained high performance work system as a system that is being imple-
mented in an organization to enhance the employees’ performance and productivity.
High performance work system has proven to be particularly valuable. According to
[2], high performance work systems have been attributed to higher individual perfor-
mance and lower employee turnover intention. High performance work systems rep-
resent a systematic and integrated approach of managing human resources that align
human resource functions to the achievement of firms’ strategy [3]. As argued by [4]
high performance work systems comprise some fundamental human resource practices
such as; careful selection procedures, internal merit based promotions, grievance
procedures, cross-functional and cross trained teams, high level of training information
sharing, participatory mechanism and skilled-based pay. Implementing HRM practices
in an effective way has contributed to the development of a skilled workforce [5]. This
expectation has led to a significant research stream aimed at testing for performance
gains and comparing research on the potential effects employee turnover has been rare
until recently [6] but such studies are important in their own right, as policies that can
decrease employees turnover are essential to the industrial landscape, at most because
there is strong evidence that stress at work extends to general health and negative
perceptions [7–9].
Existing literature on high performance work systems has examined its effects on
employee work-related outcomes such as job satisfaction, organisational commitment
and turnover intention. However, there paucity of information regarding the modera-
tion effect psychological attachment in the relationship between high-performance
work systems and employee turnover intention. Psychological attachment refers to a
deep and enduring emotional bond that connects one person to another across time and
space [10, 11]. This attachment is characterized with: a safe heaven, a secure base,
proximity maintenance and separation distress [11]. Attachment can also be perceived
as a behavioural system where a feeling of security and actual condition of safety are
significantly associated. The fundamental goal of the system is to regulate behaviours
designed to maintain proximity to and contact with those that are regarded as attach-
ment figures [12]. Bretherton suggests further that attachment behaviours tends to be
noticeable when the attached person is frightened, fatigued, or sick and is assuaged
when the attached figure provides comfort, protection and assistance.
Few studies have examined how human resource (HR) practices influence
employee’s intention to leave [13] and fewer have examined the psychological
attachment of employees to the job. Although there is increasing research on HPWS
and its effect on performance, many unanswered questions remain in this field as to
whether it influences employees decisions to leave or to be attached [14–16]. It is of no
doubt that research on high performance work systems has received considerable
criticism in recent years for its “highly management –centric standpoint”, which places
much emphasis on management goals over employee well-being [17]. Also, earlier
studies on high performance work systems either disregard employee outcomes or treat
employee’s outcomes only as mediating variable that links mechanisms between
HPWS and organizational effectiveness, with the goal of enhancing performance [18–
20]. As the debate of linking high performance work systems to organizational and
behavioural outcomes continues, scholars such as [21–25] all argue that a carefully
242 O. D. D. Zungbey et al.

planned and executed HR practices has greater chances of affecting work outcomes
such as employee turnover and counter-productive work behaviours. Consequently,
[26] suggests that equal attention should be paid to managerial activities as well as
involvement and well-being of employees. The intention is to avoid the marginalization
of employee outcomes regarding HPWS research. In line with this assertion, [27]
advanced that an industry which lacks participation is likely to experience high
counter-productive work behaviour such as turnover intention which is eminent in the
Ghanaian banking sector. The study further opined the lack of commitment in the
sector because employees have alternative job opportunities. The need to establishing
the moderating role of psychological attachment is critical as current literature has
made it clear that the relationship between high performance work systems and turn-
over intention seems not direct. The aim of the study is to investigate the relationship
between high performance work systems and employee turnover and also the moder-
ating role of psychological attachment.

2 Research Hypotheses

Hypotheses are derived from objectives;


H1: High performance work systems relate negatively with employee turnover.
H2: Psychological attachment relates negatively with employee turnover.
H3: High performance work systems relate positively with psychological attachment.
H4: Psychological attachment will statistically moderate the relationship between
high performance work system and employee turnover.

3 Methodology

3.1 Procedure
The study used a cross-sectional, descriptive, and correlational survey design in
examining the moderating effect of psychological attachment in the relationship
between high-performance work systems and turnover intention. The Population
consisted of eighteen (18) financial institutions listed in the Ghana Club 100 Com-
panies. Convenient sampling technique was used to select these banks based on their
willingness to participate in the study as well as proximity. Secondly, almost all the
banks have their headquarters in Accra and considered as center of all banking oper-
ations. Purposive sampling technique was then used to sample two hundred and twenty
respondents. In order to adhere to international standards and ethics in research,
organisations and participants were served with consent letters. This research imple-
ments a number of statistical techniques and procedures that help to analyze research
hypotheses. These techniques include reliability and validity test, frequency analysis,
descriptive statistics, correlation matrix and multiple regressions. All statistical pro-
cedures were estimated using Statistical Package for Social Sciences (SPSS). The
researchers also employed the use of Process for SPSS 2.16.3 by Andrew Hayes for the
analysis.
High Performance Work Systems and Employee Turnover Intentions 243

3.2 Instrumentation
High Performance Work System
The high performance work system scale was adapted from [28], the 20 item was
divided into seven (7) different part which was scored on a likert scale with a range of
1–5 where 1 = strongly disagree, 2 = disagree, 3 = uncertain, 4 = agree, 5 = strongly
agree. The instrument was piloted to determine its reliability and validity. A Cronbach
alpha of .751 was recorded.

Psychological Attachment
The 12 item psychological attachment scale used in this study was developed by [29].
The item scale was scored on a Likert scale with a range of 1–5, where 1 = strongly
disagree, 2 = disagree, 3 = uncertain, 4 = agree, 5 = strongly agree. The instrument
was piloted to determine its reliability and validity. A Cronbach’s alpha of .842 was
recorded.

Turnover Intention
[30] 10 item scale was used to measure the turnover intentions of the respondents. This
10 item scale was scored on a likert scale with a range of 1-5, where 1 = strongly
disagree, 2 = disagree, 3 = uncertain, 4 = agree, 5 = strongly agree. The instrument
was piloted to determine the reliability and validity of the scale. The Cronbach’s alpha
of .853 was recorded.

3.3 Results
To test the hypothesis that employee turnover problems are a function of multiple risk
factors, and more specifically whether psychological attachment moderates the rela-
tionship between high performance work system and employee turnover, Pearson
product moment correlation coefficient and hierarchical multiple regression analysis
was conducted. Hypothesis 1 revealed that a negative relationship exists between high
performance work system and employee turnover (r = −0.232, P < .000). Hypothesis 2
also found that there was a negative relationship between psychological Attachment
and turnover intention (r = −.173, P < .000). In Hypotheses 3, the correlation coeffi-
cient proved that a positive relationship exists between high performance work system
and psychological attachment (r = 0.380, P < 0.00) as seen in Table 1.

Table 1. Correlational analysis of high-performance work system, psychological attachment


and turnover intention.
Variable Mean SD 1 2 3
1. HPWS 3.4998 0.56978 1
2. Psychological attachment 3.5945 0.72309 0.380 1
3. Turnover intention 2.741 0.8366 −0.232 −0.173 1
Note: *Correlation is significant at the 0.05 level (2-tailed)
**Correlation is significant at the 0.01 level (2-tailed)
244 O. D. D. Zungbey et al.

As showed in Table 2, Andrew Hayes PROCESS was employed to test this three-
step moderation analysis in hypothesis 4. As depicted in the analysis, when High-
Performance work systems (Predictor) was entered into the model the outcome was
statistically significant. Secondly when the moderator (Psychological Attachment) was
added to the model in step 2, the outcome was also found to be significant. In step 3, to
avoid potentially problematic high multicollinearity with the interaction term, the
variables were centered and an interaction term between psychological attachment and
high performance work system was created [31]. When the interaction (High-
performance work system x Psychological Attachment) was added to the model, the
outcome was not significant. The interaction term recorded a beta coefficient of −.2225
and explained a significant incremental in variance in turnover due to the interaction
(DR2 = .0132). Figure 1 depicts that psychological attachment moderated the rela-
tionship between high-performance work systems and turnover intention. As shown on
the interaction plot, an increasing effect of psychological attachment on high perfor-
mance work systems decreases turnover intention. Thus, an organization can adopt
high performance work systems but if these systems do not enhance employee’s
attachment, then turnover intention is likely to occur (Fig. 2).

Table 2. Process results for moderation analysis among high-performance work system,
psychological attachment and turnover intention
Model 1. Outcome variable: Turnover Intention
Summary: R R-sq MSE F df1 df2 p
.2842 .0807 .6523 5.7347 3.0000 218.0000 .0009

Variables ß se t p LLCI ULCI


Constant 2.7596 .0576 47.9508 .0000 2.6461 2.8730
Psychological Attachment -.1198 .0502 -2.3865 .0179 -.2188 -.0209
High-Performance Work Systems -.3270 .1072 -3.0489 .0026 -.5383 -.1156
Interaction term (HPWS x Psychol Att) -.2225 .1436 -1.5495 .1227 -.5055 .0605

R-square increase due to interaction(s): R2-chng F df1 df2 p


HPWS x Psychol Att .0132 2.4009 1.0000 218.0000 .1227

Conditional indirect effects of X on Y: Psychol Att. Effect BootSE BootLLCI BootULCI t p


HPWS -> Psychol Att -> TI -1.3506 -.0265 .2002 -.4210 .3680 -.1322 .8950
.0000 -.3270 .1072 -.5383 -.1156 -3.0489 .0026
1.3506 -.6275 .2411 -1.1027 -.1522 -2.6019 .0099

Note: N = 224. p is significant at .05; ß denotes beta coefficient, LLCI, lover limit confidence interval, ULCI, upper limit confidence interval, Psychol Att,
Psychological Attachment, TI, Turnover Intention, HPWS, High-Performance Work System
High Performance Work Systems and Employee Turnover Intentions 245

3.5

3
T
u 2.5
r
2
n low
o 1.5
moderaƟon
v
e 1 high
r
0.5

0
low mod high
High performance

Fig. 1. Moderation effect of psychological attachment

High-Performance Work
Turnover Intention
System

Psychological Attachment

Fig. 2. Authors framework of moderating analysis

4 Discussion

In relation to the relationship between high performance work systems and turnover
intention, the findings from this paper is consistent with the works of [32, 33], who
proposed that high performance work systems are approaches to labor management
characterized by participated forms of work, skills enhancement mechanisms to
motivate employees. Therefore, if these propositions are not adopted organisations will
246 O. D. D. Zungbey et al.

experience an increasing turnover intention. Additionally, [34] posit that, the intention
to leave becomes eminent if elements of high-performance work systems do not
encourage the autonomy of making one’s own decision and motivation. High perfor-
mance work systems generally give rise to positive impacts on employees by increasing
job satisfaction and commitment [35]. Poor hiring practices, managerial style, lack of
recognition, lack of competitive compensation system in the organization and toxic
workplace environment may account for employee turnover [36]. Based on our find-
ings, it can be concluded that an organization could experience high turnover when
there is low performance work system. [37] advanced that for employees to reduce
turnover intent they must to fully attached both emotionally and psychological which is
likely to spur greater motivation to uphold its values and speed the achievement of its
objectives. Extant literature on high performance work systems indicates that it indeed
predicts employee’s psychological attachment level. [1, 35, 38] maintain that high
performance work systems positively impact on employees by increasing their com-
mitment at workplace. This in other words, means that if there is high performance
work system in an organization where human resource practices are effectively exe-
cuted to the satisfaction of employees and thereby increasing employee’s psychological
attachment to the organisation. Also, [39] stated that organizations that invest in high
performance work systems programs will have more proficient employees, more par-
ticipation and devoted to achieving organizational goals, which simply indicate that
employees will be psychologically attached if high performance work systems are
adapted. Training and development practices, which are also high performance sys-
tems, have a positive impact on employee [40] Training and development are under-
taken in order to train employees to work more effectively, improve their technical
skills, interpersonal skills, teamwork confidence and motivation to work, which will
enable employees’ commitment hence their attachment. As postulated by [41], both the
organisation and employee benefit from training and development. Employees may
share their acquisition of knowledge, skills and abilities needed to perform required
jobs and also to be ready to any development. On the side of the organisation, there is
increase in productivity, employee loyal, commitment and decline in turnover inten-
tion. [42] mentioned that training and development helps organization to improve
retention and reduce turnover. Therefore it is important to adopt significant systems that
best fit for the employees and the organization as a whole to enhance commitment and
reduce turnover.
The moderation analysis explains the effect of psychological attachment on turn-
over intention. As shown in the finding, the hypothesis that psychological attachment
will moderate the relationship between high-performance work system and turnover
intention is supported. The feeling of being psychologically attached to an organisation
will reduce the turnover intent of those workers. Human resource strategies must
provide employees with some level of job satisfaction and attachment [43, 44]. The
availability of psychological attachment as a result of high performance work systems
will however predict turnover intention in the Ghanaian banking sector.
The study has implications for management. Several decades ago, a new model was
discussed by [45] to attract employees commitment and ultimately to increase orga-
nizational performance, known as the High Performance Work Systems. managers
must be of the view that a true contribution of HRM is to motivate employees to work
High Performance Work Systems and Employee Turnover Intentions 247

harder and them bring them to stay within the organization as well. However, the
message of HPWS lost it very reason because of fixation on financial performance
among others. Findings from our study indicate the relevance of HPWS and its rela-
tionship with turnover intention. That high performance work systems must be seen as
approaches to effective labor management largely underpin by participated work,
discretionary decision making and mechanisms to enhance employees skills, which
will greatly reduce turnover intentions. Apparently, Psychological attachment has a
moderating ability to influence turnover, hence a strong employees attachment prac-
tices must be endorsed in order to achieve a perfect attachment to the organizations
thereby reducing turnover intentions and increasing commitment. This in other words,
means that if there is high performance work system in an organization, to the satis-
faction of employees, consequently there will be an increase in psychological attach-
ment to the organization. Thus managers must resolve to execute HPWS practices that
sought to boost morale, have participatory employees interested in achieving organi-
zational goals.

5 Conclusion

Even though the third model was not significant after the introduction of the interaction
term, the model had greater and wider proportion of variance in employee turnover as
compared with previous model without the inclusion of the interaction term. One
important observation was an increment in the beta co-efficient after including the
interaction into the model. An indication that HPWS standing alone will not be enough
to have that greater influence in employee turnover intention but an experience of
psychological attachment as a result of HPWS will eventually reduce turnover intent
among employees.
The paper argues that the practice of HPWS should be moved from management-
centered and attention should rather be on how it impact on employees and attitudes.
As argued by [14] one of the major antecedents of employee’s behavioural outcome is
the management of HPWS in organisations. Management development of HPWS as a
business strategy is not enough but rather add intrinsic value to psychology of
employees who collectively or individually contribute to organisation. Human resource
policies and practices must encourage participation so that individuals can be com-
mitted which will eventually lead to being psychologically attached to their respective
organisations. The cost of losing employees is a big blow to organisations that seeks to
again competitive advantage. Understanding the importance of this psychological
attachment concept is critical for organisational success, employee development and
competitive advantage strategy. Additional, Harvard model of human resource man-
agement stresses the need for linking human resource practices to the overall organi-
sational strategy. The model posit that the efficiency and effectiveness of employees
commitment is directly linked to how human resource policies like HPWS are executed
for the benefit of employees. These systems or practices are developed to win the heart
and mind of employees and also for the realization of their relative worth in the
organisation.
248 O. D. D. Zungbey et al.

Linking HPWS to psychological attachment is critical as [43] argue that poor


execution of HPWS has consequential effect on employees’ work attitudes. HPWS as a
component of SHRM includes provision of intensive training, information, motivation,
employee involvement, establishing internal promotions based on merit as well as
performance-based pay [4]. As suggested by the AMO theory, there are three inde-
pendent work systems that shape employees behaviour and contribution to work. These
systems are: (a) developing employee skills and competencies, (b) increasing moti-
vation and (c) providing an avenue where those skills obtained can be put into full use
and also ensuring some level of autonomy. Base on the AMO theory, the probability
that an individual will be psychologically attached to an organisation is high when they
are given intensive training, high level of autonomy and put learned skills into use. This
however contribute to work attitude like job satisfaction, task performance and
commitment.

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