DO ORGANIZATIONAL CLIMATE AND ORGANIZATIONAL PERFORMANCE ENHANCES JOB SATISFACTION: A STUDY OF ISLAMIC BANKS IN PAKISTAN

Mahmood Shah Khan

Department of Banking and Finance, University of Management and Technology, Lahore, Pakistan. mahmoodshah@umt.edu.pk

Rozeen Shaukat

Office of Research Innovation and Commercialization, University of Management and Technology, Lahore, Pakistan, rozeen.shaukat@umt.edu.pk

Dr. Rubeena Tashfeen

Associate Professor, Faculty of Management Sciences University of Central Punjab, Lahore, Pakistan,

Muhammad Zain ul Abidin

Lahore Business School, The University of Lahore

Abstract

The study examined the organizational climate and organizational performance of the banking sector of Pakistan with the mediating role of employee job satisfaction. The data was collected through a survey method from 327 Islamic bankers working in the Islamic banks of Lahore, Pakistan. The collected information was analyzed through Statistical Package for Social Sciences (SPSS) and Partial Least Square Structural Equation Modeling (PLS-SEM) to test the hypothesized relationships. The results indicated a significant positive association exists in hypothesized relationships except for organizational performance with reward and incentive, risk and conflict, and support and commitment. While employee satisfaction has an insignificant relationship with risk and conflict, and structure. Furthermore, organizational climate and organizational performance positively appeared to be mediated by employee job satisfaction. A significant role of organizational climate to enhance employees’ productivity and organizational performance is concluded.

Keywords: Organization climate, employee satisfaction, organizational performance, Islamic banks, Pakistan.