J. Basic. Appl. Sci. Res., 4(12)71-85, 2014 © 2014, TextRoad Publication ISSN 2090-4304 Journal of Basic and Applied Scientific Research www.textroad.com *Corresponding Author: Mubashir Ahmad, Lecturer in Northern University Nowshera Pakistan. Email: urmubasherahmad@yahoo.com High Involvement Management and Employees Performance Mediating Role of Job Satisfaction Mubashir Ahmad 1 , Naveed Shahzad 2 , Abdul Waheed 3 , Muddassar Khan 4 1,3,4 Lecturer in Northern University Nowshera Pakistan 2 Ms. Student in Northern University Nowshera Pakistan Received: September 16, 2014 Accepted: November 14, 2014 ABSTRACT The purpose of this study was to augment the existing literature on the relationship between high involvement management and Employee job performance with the mediating effect of job satisfaction in the banking sector. Based on the available literature a conceptual framework was designed to study the relationship. The conceptual framework is composed on independent variable high involvement management practices, dependent variable employee performance and the mediating variable job satisfaction. Adopted questionnaires for measuring High Involvement Management, Job Satisfaction and Individual Employee Job Performance respectively were used to collect the data. Overall the response rate was 71.3%. Correlation analysis, simple linear regression and step wise regression were used to test out the hypotheses. Results obtained were consistent with the previous research studies conducted i.e. there was a strong association of high involvement management with employees performance and similarly job satisfaction was having significant relationship with employee performance. Similarly from the regression analysis the effect of independent variable was found significant on mediator as well as dependent variable. Moreover full mediation was predicted from stepwise regression. The study has investigated the relationship as well as the level of employees performance, job satisfaction and high involvement management practices was calculated which shows the current performance of the organization, hence this research study can be used as a guide, for the management of the banking sector, to utilize its findings in order to stress the problems of employees and increase their productivity. KEY WORDS: performance management, job satisfaction, High involvement management 1. INTRODUCTION In current era of globalization business environment become more complex and competitive for survival. This complication is due to the rapid change in technology, high competition, demand from potential customer for innovative products and services. The present business ecosphere of prompt changes and innovation has enhanced the importance of Human resource in organizations. This innovative environment forced much organization to gauge how human resources (HR) add value to their effectiveness. In the resource-based view of the firm, investment in high-performance or high-involvement work practices are thought to develop distinct capabilities in employees, leading to superior firm performance (Barney, 1991; Barney & Wright, 1998; Lawler, 1992; Pfeiffer, 1998). High involvement work practice or employee engagement a critical success factors for the organizations from last decades. Many academicians and researchers are concerned to analyze the characteristics of “High involvement management” and its impact on the employee performance. High involvement practice or employee engagement is an emergent concept in Strategic Human Resource Management (SHRM) and originated in 19 th century. Lean production model and total quality management (TQM) are the most important management philosophies, burn the concept of High involvement or employee engagement and its significance on the employee performance and then organizational overall performance. The philosophy of involvement is empowerment and autonomy of employees. High involvement is a set of innovative practices usually includes, job rotation, self-managed teams, highly encouraged in problem solving and decision making, information sharing, open discussion between employee and employer, active involvement in decision making and reward system. Recent literature suggests that positive beliefs and attitude can be developed by high-involvement work practice, and it directly associated with employee engagement. The employee engagement contains three interrelated components: a cognitive, emotional and behavioral component. The cognitive approach of employee engagement defines employee’s beliefs about the organizations, its higher management and working environment. Emotional components focused the employee’s perceptions about the three factors, whether they have positive or negative 71