TQM Soft Practices and Job Satisfaction; Mediating Role of Relational Psychological Contract

The present study examines the direct and indirect effect of total quality management (TQM) soft practices on job satisfaction within the context of Pakistan banking industry. Relational psychological contract (RPC) mediates the relationship between TQM soft practices and job satisfaction. A questionnaire was designed and distributed to 400 employees of different management cadres. The useful response rate was 74% (236 employees). The data were analyzed through SEM-PLS technique. The main findings are: (1) Three TQM soft practices (Teamwork, Rewards & Recognition and Education & Training) have direct and indirect significant effect on job satisfaction. Organization culture (OC) does not have a direct effect on job satisfaction; however, RPC significantly mediates the indirect effect of OC on job satisfaction. This is one of the few papers that have successfully integrated the four exogenous constructs and one mediator into a single framework to investigate their effects on employees' job satisfaction in the context of Pakistan banking industry.