The Two Faces of HPWS : How Does HPWS Improve Organisational Performance? An Application of Regulatory Focus Theory with Longitudinal

In this study, we empirically examine the two faces of HPWS on organisational performance. Drawing from regulatory focus theory, we propose that HPWS improves organisational performance on one hand through employees’ competency and opportunity (promotion foci), and the other hand through performance pressure and role overload to employees (prevention foci). We tested the hypothesized relationships with longitudinal analysis using panel survey data from South Korea. The results of hierarchical regression analysis showed that HPWS positively influenced the organisational performance not only through employees’ competency and opportunity but through performance pressure to employees. Implications, limitations, and future research directions are also discussed.