Effect of Transformational Leadership, Job Design, and Human Resource Practices on Job Satisfaction of Banking Staff in Pakistan

Abstract

Employee job satisfaction has been one of the crucial factors behind an organization’s success. Review of literature in the field of management, leadership, and organization behavior regarding antecedents of job satisfaction indicates that job design, transformational leadership, and human resource management practices are essential antecedents of job satisfaction as accounted by a variety of researches. However, there have been limited researches that study impact of job design, transformational leadership, and HR practices on job satisfaction in one research outline. Further, literature review indicates that such research is warranted in Pakistan because there is extremely limited research on this topic in Pakistani context. To fulfil this research gap, this study took data from banking sector as this sector is considered to be essential one contributing to Pakistan economy; and job satisfaction among bank staff has always been an important concern. The study utilized final response of 170 questionnaires from various private banks in Southern Punjab, and relied on SmartPLS3.0 for analyses of data. The study suggests that job satisfaction is affected positively by HR practices and transformational leadership, whereas job design does not affect job satisfaction in the banking context. This study makes invaluable contribution to transformational leadership theory, organization behavior, and dynamic capabilities perspective through its hypotheses testing. The study recommends banks’ management to improve quality of HR practices as well as concentrate on promoting transformational leadership style in their banks.