Human Resource Management Practices and Employee Performance in the Banking Sector of Pakistan: The Role of Islamic Work Ethic

Abstract

Purpose: The present study aims to investigate the relationship between human resource management practices (recruitment and selection, training and development and performance appraisal) and employee’s performance. Further, this study examines the moderating role of Islamic Work Ethics in the direct link mentioned above in the banking sector of Pakistan. Design/Methodology/Approach: The data were collected from 256 employees working in the banking sector of Pakistan. To test the hypothesized relationships, multiple regression analysis was conducted.  Findings: The findings indicated the significant impact of human resource management practices (recruitment and selection, training and development and performance appraisal) on employee performance. Moreover, the moderating role of Islamic Work Ethics was also supported. This study found the Islamic Work Ethics strengthens the relationship between human resource management practices (recruitment and selection, training and development and performance appraisal), employee’s performance. Implications/Originality/Value This concludes that human resource management practices are essential for every organization that enhance the Employee’s Performance. Further it is revealed Islamic Work Ethics moderates the relationship between human resource management practices and Employees Performance. Implications and future research for practice and directions are discussed.