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Mediating Role of Employee Motivation in Relationship to Post-Selection HRM Practices and Organizational Performance

Author

Listed:
  • Aftab Tariq Dar

    (Department of Business Administration, Government College University, Faisalabad, Pakistan)

  • Mohsin Bashir

    (Department of Business Administration, Government College University, Faisalabad, Pakistan)

  • Faheem Ghazanfar

    (Department of Public Administration, University of Management Sciences and Information Technology, Kotli, Azad Kashmir)

  • Muhammad Abrar

    (Department of Business Administration, National Textile University, Faisalabad, Pakistan)

Abstract

The purpose of this cross-sectional study was to explore the meditating role ofemployee motivation in the relationship between post-selection Human Resource Management (HRM) practices and perceived performance of Islamic Banks operating in Pakistan. This study was based onprimary data collected from 200-employees of different Islamic banks in Pakistan by distributing structured and reliable questionnaires. The demographic profile of respondents was diversified in terms of their grade, age, experience and education. Results of correlation analysis revealed that training & development(r = .829), performance evaluation system (r = .752), career development system (r = .666), extrinsic rewards (r = .921),intrinsic rewards (r = .852) and employee motivation (r=.722) have strong positive association with perceived performance of Islamic banks in Pakistan. Results of hierarchical regression analysis supported that post-selection HRM practices have positive impact on perceived organizational performance and employee motivation acts as mediator in the relationship between post-selection HRM practices and perceived organizational performance. Proper implementation of post-selection HRM practices makes employee motivated that resulted in improved organizational performance. Management of Islamic banks desiring optimum performance should pay special attention to need-based training programs, merit-based performance appraisal system, development of progressive career paths, performance-based extrinsic and intrinsic rewards management. While making HRM policies, employee motivation should be given paramount importance as the results of contemporary studies supported that it is the major contributing factor of higher organizational performance.

Suggested Citation

  • Aftab Tariq Dar & Mohsin Bashir & Faheem Ghazanfar & Muhammad Abrar, 2014. "Mediating Role of Employee Motivation in Relationship to Post-Selection HRM Practices and Organizational Performance," International Review of Management and Marketing, Econjournals, vol. 4(3), pages 224-238.
    • Handle: RePEc:eco:journ3:2014-03-06
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    References listed on IDEAS

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    1. Frank Bau & Michael Dowling, 2007. "An Empirical Study of Reward and Incentive Systems in German Entrepreneurial Firms," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 59(2), pages 160-175, April.
    2. Katou, Anastasia A. & Budhwar, Pawan S., 2010. "Causal relationship between HRM policies and organisational performance: Evidence from the Greek manufacturing sector," European Management Journal, Elsevier, vol. 28(1), pages 25-39, February.
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    Cited by:

    1. Yusuf, Yunana Pindar & Dr. Kusa Nanfa Danjuma & Nanven Jephthah Gambo, 2022. "Non- Financial Incentive, Commitment and Employee Performance; a Study of Non-Academic Staff of The University of Jos," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 896-906, November.
    2. Ekaterina A. Strizhova, 2017. "Measures of Motivation in Financial Sector Business Leaders," HSE Working papers WP BRP 74/PSY/2017, National Research University Higher School of Economics.
    3. Olga Ponisciakova & Zuzana Rosnerova & Eva Kicova, 2023. "Motivation as an Element of Managerial Decision Making in Manufacturing Companies: The Case of the Slovak Republic," Sustainability, MDPI, vol. 15(12), pages 1-21, June.

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    More about this item

    Keywords

    Post-Selection Human Resource Management Practices; Employee Motivation; Perceived Organizational Performance; Islamic Banking Sector of Pakistan;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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