Impact of Organizational Rewards on Employee Engagement with mediating role of Leader Member Exchange: Evidence from Banking Sector of Pakistan

Authors

  • Syed Jaleel Abbas Institute of Banking and Finance, Bahauddin Zakariya University, Multan, Pakistan.
  • Huma Ali Institute of Banking and Finance, Bahauddin Zakariya University

DOI:

https://doi.org/10.52700/assap.v5i1.364

Abstract

The main objective of this study is to check the relationship of organizational rewards, leader member exchange (LMX) and employee engagement. Organizational rewards play a vital role to motivate the employees to be engaged in their work. This relationship is based on the principle of reciprocity. Managers motivate the employee by facilitating them with organizational rewards and reciprocally employees show enhanced engagement in their work. The relationship of manager with employees is of significant value. A manager acts as a mediator between the implementation of organizational rewards and employee engagement. Through the structural equation modelling (SEM), the relationship of organizational rewards, employee engagement and leader member exchange has been checked. The data was taken from the banking sector of Pakistan. The results reveal that organizational rewards significantly enhance employee engagement and this relationship remains persistent when mediated with LMX. This study is of unique significance because it discusses organizational rewards and their impact on employee engagement and also checks the relationship of organizational rewards and employee engagement with mediation of leader member exchange.

Published

2024-06-30