The impact of employee empowerment on organizational performance: A mediating role of employee engagement and organisational citizenship behaviour

Abstract

Purpose:The aim of the study is to assess the mediating role of employee engagement and organisational citizenship behaviour on the relationship between employee empowerment (structural, psychological) and organisational performance in non-commercial banks in Ghana.

Design/Methodology/ approach: SEM (EQS) was used to test the proposed hypothesis based on 304 employees selected from eight non-commercial banks in the Bono Region, Ghana.

Findings: Organisational citizenship behaviour was a significant mediator on the relationship between employee empowerment (structural and psychological) and organisational performance. However, employee engagement showed no positive effect on the relationship between employee empowerment (structural, psychological) and organisational performance.

Research limitations/Implications: This study assists managers and leaders to understand how employee empowerment influences organisational performance in the current business environment. The study was conducted in a particular area; Ghana, making it difficult to generalise the results across other countries.

Practical implication: The study provides practical knowledge to managers and leaders on the role of organisational citizenship behaviour and employee engagement on the relationship between employee empowerment (structural, psychological) and organisational performance that facilitates the decision-making process.

Originality and value: The originality of the present study relays on the interaction among structural and psychological empowerment, organisational citizenship behaviour, employee engagement and organisational performance in a developing economy where this research has not been done before.