The purpose of this cross-sectional study was to explore the meditating role of employee motivation in the relationship between post-selection Human Resource Management (HRM) practices (training & development, performance evaluation system, career development system, extrinsic and intrinsic rewards) and perceived performance of Islamic Banks operating in Pakistan. This study was based on primary 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, education. Pearson correlation statistical technique was applied on collected data and results 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. The proper implementation of post-selection HRM practices makes employee motivated that resulted in improved organizational performance. Management of Islamic banks desiring optimum return and performance should pay special attention to need-based training programs, fair and 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.
Aftab Tariq Dar
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