Relationship Amongst Opportunity-Enhancing HR Practices Emotional Intelligence And Customer Satisfaction: Empirical Evidence From Banking Sector

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Sarah Azhar , Muhammad Aleem , Abid Ahmad , Naveed Tariq

Abstract

This study defines and expound the relationship between opportunity-enhancing HR practices (O-HRM) and customer satisfaction (CS) through the mediating role of emotional intelligence (EI). This study illustrates the relationship between opportunity-enhancing HR practices (O-HRM) and customer satisfaction (CS). Opportunity-enhancing HR practices embrace job involvement (JI) and job design (JD). The mediating role of emotional intelligence (EI) is tested within the relationship of opportunity-enhancing HR practices (O-HRM) and customer satisfaction (CS). The study was conducted on a group of 467 employees and same number of customers from 126 banks branches operating in Punjab, Pakistan. Structural equation modeling (SEM) was used in the process of statistical analysis. The research confirmed a significant statistical relationship between all studied variables i.e., O-HRM, EI and CS. It was concluded, based on the analysis, using SEM, that opportunity-enhancing HR practices (O-HRM) have direct impact on customer satisfaction (CS), and indirect influence through emotional intelligence (EI). Cross-sectional design and use of self-reported questionnaire data are limitations of this study. The results of this research extend the knowledge in the area of customer service outcomes, with aspects of HR practices and emotional intelligence at workplace settings in the organizations in banking sector. In the light of results discussed above, there is sufficient evidence that the cluster of HRM practices working in bundles within the banking sector can play a decisive role for enhancing the EI of banking employees. This study further signifies the importance and usefulness of EI by empirical evidence of its link with outcome of CS in banking sector. The results of this research extend the knowledge in the area of customer service outcomes, with aspects of HR practices and emotional intelligence at workplace settings in the organizations in banking sector.

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