ROLE OF HUMAN RESOURCE PRACTICES IN EMPLOYEE PERFORMANCE AND JOB SATISFACTION WITH MEDIATING EFFECT OF EMPLOYEE ENGAGEMENT

This study attempts to examine the impact of Human Resource (HR) practices on employees’ satisfaction and performance through mediating role of employees’ engagement. The study collects data from 181 employees of three leading banks of Multan city (Pakistan) namely: Habib Bank, Faysal Bank, and Allied Bank. The findings of the present study reveal that training and empowerment of the workers contributes more in employees’ work performance and their job satisfaction than that of rewards/incentives. However, rewards/incentives are significantly (P 0.01) related with the employees’ engagement in organizational activities. Overall, HR practices (training, rewards and empowerment) are significantly (P 0.01) related with employees’ engagement and confirm the assumptions of Baron and Kenny (1986) for mediation analysis. The results of the study are gleaned by using the direct path way and multiple regression to investigate the impact of HR practices on mediating variable (employees’ engagement) and mediating variable on both dependent variables (employees’ satisfaction and employees’ performance). The results of the study confirm that proposed hypotheses are statistically significant (P 0.01) and indicate that employees’ engagement partially mediates the relationship between HR practices and both employees’ satisfaction and employees’ performance outcomes.