Does HPWS amplify employees' change readiness for digital transformation? A study through the “work-from-anywhere” prism

ABSTRACT

PurposeThis study intends to advance the research on the relationship between high-performance work systems (HPWS) and change readiness by examining the mediating role of positive employee outcomes. Therefore, the streams of strategic human resource management (SHRM) and change management are studied in the context of digital transformation in the post-COVID-19 pandemic scenario.Design/methodology/approachPrimary responses from 409 Information Technology (IT) employees were analysed to investigate the mediating relationship between HPWS, positive employee outcomes and employee readiness to change. Researchers used statistical techniques to analyse the data, such as confirmatory factor analysis, correlations, regression and bootstrapping. In addition, sequential mediation was examined using "PROCESS Macro" and syntax for SPSS.FindingsResults of the study revealed that implementation of HPWS through extensive training and development, performance-based appraisal and compensation, participation in decision-making, flexible work arrangements and rigorous recruitment and staffing results in enhanced employee-level outcomes. Thereby conclusively impacting their readiness to change for digital transformations.Practical implicationsThis study revisits the elements of HPWS in the post-pandemic work-from-anywhere (WFA) scenario. Thus, it provides adequate indications that investment in designing bundles of change-oriented human resource (HR) practices amplifies the chances of success of a change initiative by creating a favourable mindset and attitude among IT employees in India.Originality/valueThis study is among the earliest to link two major streams of SHRM and change management by establishing HPWS as an essential antecedent of a change-related outcome by introducing multiple mediators in the sequence. This sequence provides new insights for enhancing the probability of organisational change directives succeeding.