THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON LEADERSHIP STYLES: THE MEDIATING ROLE OF EMPLOYEE TRUST

Abstract

The objective of this research was to explore the relationship of Human Resource Management
practices and Leadership styles with mediating effect of employee trust. Literary gap was identified
where the relationship of HRM practices and leadership styles was not previously explored and
empirically tested. Data was collected from a sample of 589 managerial level employees of 132
private sector companies listed on Pakistan Stock Exchange. The two stage methodology of Structural
Equation Modeling (SEM) in AMOS was employed to test the proposed relationships. The findings
revealed a significant positive association between HRM practices and leadership styles. Employee
trust only partially mediated the relationship of HRM practices and Leadership styles. HRM and
Leadership have the potential to counterbalance each other and will ensure that the organization has
an adequate supply of management and leadership competence at every level of the organization.