Frontline employees play a pivotal role in shaping customer experiences and driving organisational performance within the hospitality industry, where service encounters are highly interpersonal and emotionally demanding. Recognising this, the present study develops a comprehensive multilevel framework that explains how high-performance work systems (HPWS) influence employee performance, customer satisfaction and organisational financial outcomes. Grounded in the Ability–Motivation–Opportunity (AMO) framework, the model explicitly distinguishes between organisational-level and individual-level mechanisms through which HPWS exert their effects.

At the organisational level, HPWS are proposed to foster a positive service climate and a supportive display rules climate. These climates create shared perceptions among employees regarding service quality expectations and emotional expression norms, which subsequently influence aggregated employee service performance, overall customer satisfaction and financial performance outcomes. By shaping collective attitudes and behaviours, HPWS contribute to sustained service excellence and competitive advantage.

At the individual level, HPWS enhances employees’ abilities through training and skill development, strengthens motivation via rewards and recognition, and expands opportunities by promoting autonomy and participation. These mechanisms lead to improved service performance and more effective emotional regulation during customer interactions, while also positively affecting employee well-being. By integrating individual and organisational outcomes into a single multilevel framework, this study contributes to both human resource management (HRM) and service management literature. It offers a theoretically grounded model that clarifies cross-level linkages and provides a foundation for future empirical research, as well as actionable insights for hospitality practitioners seeking to optimise workforce and service outcomes.

Customer satisfaction, employee performance, high-performance work systems, hospitality industry, service climate

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