The study investigated the effect of psychological empowerment (PE) in between the High Performance Work System (HPWS) and Service Employees Performance (SEP) in the Automotive Retail Industry of Malaysia. We developed and examined a mediation model linking perceived-HPWS to SEP and PE plays as a mediator. From the self-determination theory, defined motivation as being intrinsic and extrinsic, whether PE enables the employees meeting the performance expectation. The proposed model can be substantiated wide data collection and data analysis. The research data are collected from a sample of 72 employees through a questionnaire. The findings suggest that the PE is a significant influence on SEP. It is expected that the findings of this study will guide Human Resource (HR) Practitioners to establish appropriate policies and procedures for effective HR practices to be deployed in the organization especially in the service industry environment.

This paper focuses on the impact of strategic leadership on operational strategy and organizational performance of the automobile industry in Malaysia with a particular focus on Proton (Perusahaan Otomobil Malaysia). Since the mid-1980s a growing body of research on leadership has focused on strategic leadership, in contrast to managerial and visionary leadership. It has focused on how lead-ers make decisions in the short term that guarantees long-term viability of the organization. Senior leaders also have the ability to align human resources in an effective way directly to the business strategy. This article focuses on how national car manufacturer, Proton, exercises strategic leadership to influence its operational strategy and performance. It examines both dependent and inde-pendent variables that influence on strategic leadership with implications for future research.