DefinePK

Abstract

Organizations in the corporate sector face stiff international competition which drives them to constantly develop methods for better employee performance combined with productivity preservation. This study investigates perceived HR practices together with diversity management practices which contribute to performance enhancement by retaining employees through work engagement as the mediator. The research bases its hypothesis construction on Social Exchange Theory. The investigation includes perceived HR practices together with training and diversity management as independent variables that affect task performance and organizational citizenship behavior which constitute the dependent variables. A structured questionnaire obtained data from 325 employees who work in both private sector and public sector banks within Karachi Pakistan. The research analysis using SPSS and Smart-PLS demonstrates that employees who perceive favorable HR practices and receive proper training and experience diverse management show higher work engagement levels. Workers who display work engagement show superior performance both in assigned duties and civic duties related to organizational tasks. The results reveal partial mediation between employee practices and employee performance levels which proves that engaged workers demonstrate superior outcomes. Evidence demonstrates that work engagement functions as a partial intervening factor between the relationship between diversity management and employee performance. The research provides essential information for banking sector HR managers to demonstrate the significance of work engagement because it shows that effective HR policies and employee training together with diversity management improve both work engagement and employee performance.