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Impact of HR Practices on Job Satisfaction

The document discusses analyzing the relationship between human resource management practices and job satisfaction. It finds that training and development as well as rewards are positively correlated with job satisfaction, but recognition is not significantly correlated. Specifically: 1) Training and development had a moderate positive correlation with job satisfaction, while recognition did not have a significant relationship. 2) Regression analysis found that 50.4% of the variation in job satisfaction could be explained by the independent variables. 3) The hypotheses that training/development and rewards are positively related to job satisfaction were accepted, but the hypothesis for recognition was rejected.

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0% found this document useful (0 votes)
8 views5 pages

Impact of HR Practices on Job Satisfaction

The document discusses analyzing the relationship between human resource management practices and job satisfaction. It finds that training and development as well as rewards are positively correlated with job satisfaction, but recognition is not significantly correlated. Specifically: 1) Training and development had a moderate positive correlation with job satisfaction, while recognition did not have a significant relationship. 2) Regression analysis found that 50.4% of the variation in job satisfaction could be explained by the independent variables. 3) The hypotheses that training/development and rewards are positively related to job satisfaction were accepted, but the hypothesis for recognition was rejected.

Uploaded by

asif taj
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© All Rights Reserved
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Chapter 4

Data Integration & Analysis

4.1 Test of Reliability:


Cronbach alpha is the tool used to check the reliability of any scale. According to the statistical
analysis the value of Cronbach alpha ranges between 0.698-0.847. Normally 0.6 is the minimum
acceptable range for Cronbach alpha. The overall reliability of scale items is found to be 0.992.
the detailed description of the value of Cronbach alpha is given in table 4.1.

Table: 4.1 Cronbach Alpha of Scale Items

Construct/variable Number of Cronbach


items alpha
Job satisfaction 3 0.698

Training and development 6 0.824

Recognition 4 0.760

Rewards 4 0.847

4.2 Correlation:
Correlation analysis has been carried out to check the extent to which two quantitative variables
vary together, including the strength and direction of their relationship. The strength of the
relationship refers to the extent, to which one variable predicts the other; it can be observed in
table 4.2.

Table: 4.2 Correlations

Satisfaction Training Recognition Reward


Job Satisfaction Correlation 1

Training & dev Correlation .469(**) 1

Recognition Correlation .650(**) .550(**) 1

Reward Correlation .684(**) .615(**) .952(**) 1


As shown in the above table, training and development, recognition and rewards all are found to
be positively correlated with dependent variable job satisfaction. The value (r= .469) suggests
that training and development is positively correlated with job satisfaction, (r= .650) shows that
recognition is also positively correlated with job satisfaction and (r= .684) shows that rewards
are also positively correlated with job satisfaction. Correlation analysis showed that there is
positive relationship between job satisfaction and independent variables.

Table: 4.3 Regression analyses

Mode R R Square Adjusted R Square Std. Error of the Estimate


l
1 .710(a) .504 .493 .26238

Table: 4.4 coefficients

Standardized

Variables Unstandardized Coefficients Coefficients t Sig.

B Std. Error Beta

(Constant) . .343 2.696 .008


925
Training . .085 .243 3.145 .002
266
Recognition . .205 .086 .430 .668
088
Reward . .206 .453 2.147 .034
443

As shown in the above table of coefficients (a), training and development is positively affecting
the dependent variable job satisfaction as the beta value is (.266). It is shown in the table that
recognition also has a positive effect on the job satisfaction, represented by beta value (.088) and
rewards also have positive effect on the job satisfaction, represented by beta value (.443).
Independent variables, training and development and rewards are having a positive and
significant relationship with the dependent variable, but recognition is not having a significant
relationship. The value of R square is .504 which means that 50.4% variation in dependent
variable can be explained by independent variables.

Based on above analysis, hypotheses 1 and 3 are accepted but hypothesis 2 has been
rejected. Previous researches had shown the same results.
Table: 6 Hypotheses Testing

Hypotheses Results

H1: Training and development is significantly and positively related with Accepted
employee job satisfaction.

H2: Recognition is significantly and positively related with employee job Rejected
satisfaction.

H3: Rewards are significantly and positively related to employee job satisfaction Accepted
Chapter 5

Conclusion & Future Recommendations

5.1 Conclusion:

This study is an attempt to examine and analyze the impact of human resource management
practices on job satisfaction of private sector industry in Pakistan. In the present study, the
estimated correlation model identified that the HRM practices like Training, Performance
Appraisal, Teamwork, rewards and recognitions has significant impact on job satisfaction and
job performances of the organization. We have tried our outmost to show the result of how the
HR elements impacts of job performance. Where Motivation is more, the performance level is
also high. On the other hand, Employee Participation and playing an active role in business area
has a great significant impact on job satisfaction of the employees of public sector.

The findings of this research can be implemented in different ways in public sector
organizations of Pakistan. First of all, Training and development has a weak correlation with
employee job satisfaction which clearly indicates that training and development is not a strong
driver of job satisfaction in public sector organizations of Pakistan. Therefore, serious amount of
consideration should be given to this aspect. Before allocating any sort of training activities to
employees training need analysis should be conducted so that managers should exactly know that
which kind of training should be given to employee. If employee will feel training to be
interesting and is according to the need of an employee than employees will actively participate
in trainings and that training will be much more productive and source of satisfaction for
employees. Employees will not only learn more, but they will also exhibit the learned skills at
the workplace as well which will enhance the employee performance and that will lead towards
enhancement of organizational performance and then organizations will have satisfied
employees.
Rewards and recognition are both strongly correlated with employee’s job satisfaction which n
indication how important employees perceive rewards and recognition for them in the public
sector of Pakistan. Rewards and recognition are both very useful and recognized tool of
employee job satisfaction, but both these variables act other way around if there is no equity. So,
it is very important for managers in public sector organization to eliminate discrimination while
giving rewards and recognition.

Pakistan is a developing country and employees of public sector organizations love to get
rewards as compared to recognition, monitory rewards are of great importance because past
researches show that monitory benefits for employees of public sector organizations of
developing countries have great significance towards job satisfaction and this study also supports
this particular argument. This is why the analysis of data shows that rewards are extremely
significant, but recognition is not.

5.2 Future Recommendations:


Employee participation is the essential issue in the recent year and such a competitive world to
survive in the business. A business & businessmen have to ensure the employee participation in
management and administration. In management there is a proverb that “Esprit De Crops” that
means unity is strength. Harmonious and teamwork is always effective and efficient for the
business success. When the workers and employees are encouraged to take part in the
management and decision making that means they are contributing to the organization. The
research suggestion is, there might be a need for future studies to present a meaningful
explanation of HR practices as performance appraisal, job recognition & job approval,
teamwork, employee participation, training and development in the development of an
organization.

5.3 References:

Ahmad, I., Khalil, M. I., (2007). Human resource planning in the banking sector

of Bangladesh: A comparative study between public & private bank. Journal of

Business Administration, 33, (3).23-42.

Ali, R., & Ahmed, M. S. (2009). The impact of reward and recognition programs

on employee’s motivation and satisfaction: an empirical study. International

Review of Business Research Papers, 5(4), 270-279.

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