HR Practices and Organizational Performance: What Role Does Employee Satisfaction Play?

Abstract
Maintaining employee safety and satisfaction can result in increased sales, lower costs, and a stronger bottom line. Employees often support the company's mission and work hard to help it achieve its goals when they believe the company has its best interest at heart. Hence, the study aims to examine the role of employee satisfaction between HR practices and organizational performance. A quantitative research methodology and a deductive research approach are used to assess the relationship between variables. HR practices, such as selection, training, compensation, performance evaluation, and employee engagement, were used as independent variables, and their effect on organizational performance, the dependent variable, was measured, with employee satisfaction as a mediating variable. The primary data was obtained from Pakistani bank employees using a 5-point Likert scale questionnaire, and the data was analyzed using smart PLS. According to the results of this study, HR practices are found to be substantially and positively linked to organizational success. In the present study organizational performance and employee satisfaction and have been assessed as unidirectional measures in the context of the impact of HR practices on the performance of the banking industry. In the future, the addition of secondary data will add value to the findings of the present study. The study's findings would also act as effective guidance for other organizations in terms of the value of HR practices that result in profit maximization. Keywords: HR Practices, Banking Industry, Employee Job Satisfaction, and Organizational Performance.