The present study aims to chart out the linkages between high-performance HR practices, psychological climate, their effect on employees work engagement and citizenship behavior at work place, and ultimately the enhancement of organizational effectiveness. It is a study of IT organizations which have been keen to focus on strategic HR interventions and are willing to incorporate employees perceptions of their work environments in order to better understand the conditions that augment work engagement and positive work behaviors. Data were collected from 250 IT professionals. The results indicate that, while high-performance HR practices indeed play a leading role in augmenting organizational effectiveness, organizations need to focus upon individuals psychological processes and aspirations at work. In the context of IT organizations, the study reveals that human resource managers should also take into account employees psychological well-being at workplace while formulating HR policies and practices that can enhance organizational performance outcomes and effectiveness.