The impact of HR Practices on Organization Citizenship Behavior and Employee Engagement: Mediating Role of Psychological Empowerment

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Purpose: This study aims to investigate the influence of HR practices on Organizational Citizenship Behavior (OCB) and Employee Engagement (EE) in the banking sector of Gujranwala. It introduces Psychological Empowerment as a mediating factor, an unexplored combination in prior research. Design/Methodology/Approach: Data for this study were collected through 500 questionnaires distributed to individual banking employees in Gujranwala. A total of 450 responses were received and analyzed. Correlation analysis was conducted to examine the relationships among HR practices, Psychological Empowerment, OCB, and EE. Stepwise multiple regression analysis was employed to reveal the direct impact of HR practices on OCB and EE, with Psychological Empowerment as a mediator. Findings: The results confirm significant relationships among HR practices, Psychological Empowerment, OCB, and EE. The regression analysis unveiled HR practices' direct impact on OCB and EE, while Psychological Empowerment emerged as a significant mediator, altering the results significantly for banking employees. Psychological Empowerment was found to be a partially significant mediator in HR OCB, HR-EE, HR-PE, HR-PE-OCB, and HR-PE-EE relationships. Originality/Value: This study makes a distinct contribution by offering a holistic examination of HR practices, Psychological Empowerment, OCB, and EE dynamics in Gujranwala's banking sector. It sheds light on the interplay between these factors, providing valuable insights for both academia and practitioners in the field of human resource management.