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.