Effect of Job Satisfaction on the Relationship Between Human Resource Management Practices and Organizational Performance in the Banking Sector

This study aimed to explore the mediating role of job satisfaction in the relationship between HRM practices and organizational performance in the banking sector. The study adopted a descriptive-analytical approach and was applied to a simple random sample of 100 bank employees. The research instrument consisted of three main sections: HRM practices (25 items), job satisfaction (25 items), and organizational performance (35 items), with high levels of validity and reliability (overall Cronbach’s alpha = 0.886). The findings revealed that the level of HRM practices in the banking sector was high, with a mean of 3.56 and a relative importance of 71.2%. The incentive system dimension ranked first among the HRM practice dimensions. Job satisfaction was at a moderate level, with a mean of 3.39 and a relative importance of 67.8%. Satisfaction with the nature of work ranked first, followed by satisfaction with pay and incentives. The study also revealed a statistically significant positive correlation between HRM practices and OOP (r = 0.716). JS played a partial mediating role in traditional and Islamic banks and a full mediating role in digital banks. Structural equation modeling indicated a statistically significant indirect effect was statistically significant (p = 0.008). The study recommended enhancing employees’ job satisfaction by improving the work environment, incentive systems, and performance appraisal processes and adopting HRM practices appropriate to each bank type