Mediating role of psychological well-being in the effect of human resources practices on employee performance: The case of participation banks

This study aims to reveal the view of participation banks employees towards human resources practices, the relationship between their psychological well-being and their work performance. In the study, a survey was conducted with employees of 6 different participation banks that are active in Turkey. With the data obtained; reliability analysis, exploratory/exploratory factor analysis, descriptive analysis, normal distribution tests, correlation analysis, regression analysis, t-test and anova analysis, confirmatory factor analysis and structural equation modeling were performed. As a result of the analyzes, it was seen that the most important dimension representing human resources practices was rewarding, and the most important dimension representing psychological well-being was positive relationships. The participants' perceptions of human resources practices, their psychological well-being and work performance differ according to the department they work for, their titles, the duration of work in the institution, the activity limit and field of activity of the institution, their gender and marital status. Human resources practices are an important predictor of psychological well-being and employee performance. Psychological well-being predicts employee performance. When the factors obtained in the study are handled within a model, psychological well-being mediates the effect of human resources practices on employee performance. Employees attach importance to communication with employees. However, the attitudes of the institutions they work with towards communication with them are at the level of indecision. Human resources practices should be built on mutual gain, plans and policies for employees should not only focus on improving their performance, and the psychological comfort of employees should be considered in the policies implemented.