THE EFFECT OF ORGANIZATIONAL TRUST ON WORK ENGAGEMENT: MEDIATING ROLE OF PSYCHOLOGICAL EMPOWERMENT IN THE BANKING SECTOR OF KARACHI

Abstract

Purpose: The aim of this research is to find out the impact of Organizational Trust on Work Engagement and mediating effect of Psychological Empowerment on Organizational Trust and Work Engagement in banking sector of Karachi. Methodology & Design: This research follows the quantitative approach. The research was an explanatory in nature. The quantitative data was collected using a well-structured questionnaire. Non-probability sampling technique was used as a sampling technique. The sample size of this research is 384. Data is collected from the employees working in the banking sector of Karachi only. The study uses mediation analysis to test the hypothesis in the sample of 384 respondents. Findings: The outcomes of this research discloses that Organizational Trust is the main predictor of Work Engagement and also Psychological Empowerment mediates the relationship between Organizational Trust and Work Engagement. Implications: The outcomes of this research will provide implications for many human resource management professionals who want to improve human resource system which stimulates Work Engagement of employees. This study will provide accurate inquiries about Work Engagement of employees that how it will be effected by Psychological Empowerment and Organizational Trust.