LEAN OPERATIONS, WORKLOAD STRESS, AND EMPLOYEE PRODUCTIVITY: A MODERATED MEDIATION ANALYSIS OF EMPLOYEE ENGAGEMENT IN PAKISTAN'S AUTOMOTIVE SECTOR

Abstract

Lean production systems have spread across automotive manufacturing worldwide, yet their effect on the people who operate them remains contested. some studies find that standardized work clarifies tasks, while others find that it intensifies job demands. This study tests whether employee engagement resolves that inconsistency by mediating the effects of lean operations and workload stress on employee productivity and whether workload stress moderates the direct lean operations productivity relationship. Grounded in Job Demand Resources theory and Conservation of Resources theory survey data were collected from production employees at Honda Atlas Cars Pakistan Limited and analyzed using partial least squares structural equation modeling in SmartPLS 4. Employee engagement mediated the relationship between lean operations and productivity and workload stress significantly moderated the lean operations productivity relationship. The results suggest that the productivity returns to lean implementation depend on whether it builds employee engagement with direct implications for how automotive manufacturers in emerging markets sequence lean rollout alongside employee wellbeing.