Impact of Human Resource Management Practices on Job Satisfaction among the Employees of Private Banks

Abstract

Human resources are considered to be a critical organizational resource that facilitates an organization to sustain its effectiveness and value. Banking sector in India is facing furious competition as far as human resources is concerned. In such a competitive business environment retaining of productive employees is complicated tasks when competitors are struggling for attract human resources from other organizations by providing attractive compensation and promotional plans. In order to retain productive employees it should be ensured that they are satisfied from the human resource practices prevailing in the concerned organization. The purpose of present study is to analyze and achieve a better understanding of the impact of human resource practices on job satisfaction among the employees of private sector banking. In the present study, the multiple linear regression model was applied and revealed the phenomenon by investigating empirical justification in this regard and considering the Training, Employee participation and Compensation as main contributory factors towards employees' job satisfaction. On the contrary performance appraisal and team work has no significant impact on job satisfaction of the employees of private banks. The regression results revealed that overall fit of regression is statistically significant at 5% level of significance. The study revealed that none of the HRM practices variables have no high correlation or presence of multi-collinearity. The results from correlation analysis indicated that job satisfaction of employees is positively correlated with HRM practices like training, performance appraisal, team work, employee participation and compensation. The individual regression coefficient of independent variables like training, employee participation and compensation are statistically significant at 5% level of significant whereas the coefficient of independent variables like employee participation and compensation are statistically insignificant.

Keywords: Compensation, Employee participation, Job Satisfaction, Performance appraisal, Training and Team work