Effectiveness of Decentralization on Employee Job Performance in Banking Sector of Pakistan with Mediating Impact of Employee Creativity

Abstract

This study examines the impact of decentralization on employee job performance in the banking sector of Pakistan, with a focus on the mediating role of employee creativity. Employee job performance is a critical aspect of organizational success, particularly in the competitive banking industry, where efficiency and effectiveness are paramount. This study seeks to determine how decentralization strategies affect employee job performance and if this connection is mediated by employee inventiveness. The research looked at five essential dimensions: organized workload, lowered role conflict, reduced job ambiguity, supportive leadership, and employee empowerment. A sample of 250 bank workers from Islamabad and Rawalpindi took part in this study, submitting data using structured questionnaires. The replies were measured using a Likert scale, which ranged from strongly disagree to strongly agree. Data was collected via google forms and analyze the data of statistical tool SPSS software version 23.The findings of study reflect that there is a strong association between decentralization and employee job performance. As per the results of hypothesis independent variables has significant impact on dependent variable and mediator significantly show its relationship.In practice, the findings give useful insights for bank managers and regulators, implying that deploying decentralized arrangements might lead to increased job performance among employees. The study is quite useful for the management of the banking sector. It is equally beneficial for other sectors of the service industry. Scholars, practitioners, and academia may also benefit from the findings of this study.