Impact of HRM Practices on Organizational and Employee Performance: The Mediating Role of Employee Satisfaction Dr. Umasankar M.*, Dr. Sundharesalingam P.** *Department of Management Studies, Kongu Engineering College, Perundurai, Erode, Tamilnadu, India **Department of Management Studies, Kongu Engineering College, Perundurai, Erode, Tamilnadu, India Online published on 5 April, 2016. Abstract The purpose of this study was to explore the impact of different Human Resource practices on Organizational Performance and Employee Performance and to explore the mediating role satisfaction between Human Resource Practices and Perceived Organizational Performance and Perceived Employee Performance. The study was conducted targeting the employees working in commercial banks. A proposed conceptual model containing HRM Practices as Independent variable, Satisfaction as Mediating variable, organizational and employee performance were treated as dependent variable and demographic variables were used to identify the different dimensions of the outcome. To identify the in depth linkage and mediating effects posted in the conceptual model path analysis and Structural Equation Model is tested. Path analysis showed that few Human Resources Practice variables do not have any direct influence over both the independent variables. It also suggests the mediating variable Satisfaction has full and partial mediation between independent variables and dependent variables. The fit indices also support the structural model and the data are aptly fitted into the model. Top Keywords HR practice, Employee performance, Organizational Performance, Employee satisfaction, Structural Equation Model, Mediation testing. Top |