The empirical analysis investigates the interrelationships between multiple independent and dependent variables that exist in the relationship between the perceived system of HRM practices and organisational performance. The study also intend to test the Resource Based View (RBV) and Social Exchange Theory at the higher education sector, by examining the level of human capital and employee commitment as mediating mechanisms through which a system of HRM practices affects university performance. To analyse the data and test the proposed hypotheses, Multivariate Analysis of Variance (MANOVA) and Structural Equation Modelling (SEM) were employed. Goodness-of-fit measures were utilised to assess the structural fit of the overall model. As the aim of the study was to test and investigate the structural model that explains the relationship between the five constructs, standardised path coefficients and the significance of the hypothesised relationships were utilised to test the postulated hypotheses in a causal diagrammatic form.