Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
Measurement of Employees’ Job Satisfaction on HRM
Practices of Commercial Banks in Bangladesh
Mohammad Jamal Uddin* and Md. Mizanur Rahman**
Human element in an organization is the core competency that makes a viable
difference among different organizations. So, proper guidance, policies and practices
need to be developed to handle and direct organizational human resources to ensure
employee job satisfaction. The main objective of the study is to measure the level of
employee job satisfaction on different HR practices. A survey was conducted on 150
employees of different public, private and specialized commercial banks from Sylhet
City through a structured questionnaire. The result of the study shows that among the
19 HR practices employee job satisfaction is positively associated with the attitude of
top management, promotional opportunity and benefits and services.
Key Words: HR Practices, Job Satisfaction, Organizational Performance, Commercial
Banks, Multiple Correlations.
JEL Codes: M12 and M16
1. Introduction
Historically Bangladesh is a developing country and majority of the people are Muslims.
The number of banks operating in the country is fairly enough under different ownership
system and the banking system is further categorized as either traditional banking or
Islamic banking or specialized banking.
In Bangladesh, there are about 56 Banks (State Owned -04, Local Private Commercial30, Islamic Commercial- 08, Foreign Private Commercial -09, and Specialized 05)
totally. Almost all banks serve their operations through branch banking system. Virtually,
we know that a bank is a labor intensive service organization. Banking is a highly
competitive sector all over the world and the situation is not an exception in
Bangladesh. Banking sector has witnessed a rapid growth in the last decade and
because of this growth, the demand for experienced and skilled human resources has
increased in manifold (Mizan, et. al., 2013). To maintain efficiency and competitive
service, banks must retain experienced and capable personnel. Attracting new
competent people and retention of existing personnel may come from sound
administrative policy, consistent HR practices, employee job satisfaction and
organizational commitment (Ahmad & Schroeder 2003; Khera 2010; Sarker 2011;
Mahammod 2004; Mizan et. al., 2013). The success and failure of a banking
organization as a service sector to a large extent depend on the employees‟ ability,
integrity and commitment. So every bank should concentrate on employees‟ motivation
and job satisfaction. Different literatures show that job satisfaction is possible through
* Mr. Mohammad Jamal Uddin , Assistant Professor, Department of Business Administration,
Metropolitan University, Sylhet, muddin@metrouni.du.bd, mobile. 01680-264028, Management Studies
** Mr. Md. Mizanur Rahman, Assistant Professor, Department of Business Administration, Metropolitan
University, Sylhet, mizanmgt@gmail.com , mobile. 01719-070981, Management Studies
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
proper HR practices of an organization. Most usable human resource practices in the
organization might be the human resource planning, recruitment and selection,
socialization, job evaluation, job design, training and development, empowerment and
participation, performance management, employee reward system, succession
planning, motivational program and industrial relations (Absar et. al., 2010; Aswathappa
2008; Ghankar 1997; Huselid 1995). Authorities of the concern banks should emphasis
on maintaining timely and consistent HR practices which can ensure employee job
satisfaction and bring some benefits for the organization. Gürbüz (2009) stated that
Human Resource (HR) practices and employee job satisfaction have many significant
benefits for organizations like their survival and holding competitive positions. To ensure
efficiency and retain competitive advantages, banks need to design effective HR
practices over which employees have satisfaction and confidence. In this study,
researchers have used nineteen important common HR factors to know their effect on
employee job satisfaction in the concerned organization.
2. Literature Review
2.1 HR Practices
Human Resource Management (HRM) is a critical organizational resource that is
essential for conducting any organization especially service providing organization
smoothly and effectively. HRM at present is a philosophy of utilizing people in
organization to get maximum output by satisfying both the employers and employees.
According to the Institute of Personnel Management in UK, “HRM is the part of the
management process concerned with recruiting and selecting people; training and
developing them for their work; ensuring their payment and conditions of employment
are appropriate; where necessary negotiation such terms of employment with trade
unions; the organization of people at work and the encouragement of relations between
management and work people” (Ghankar 1997). HRM is that part of management which
is concerned with the human dimensions in the organization especially the matters
followed by HR planning, job analysis, recruitment, selection, orientation, compensation,
performance appraisal, training and development and labor relations (Dessler 2013).
According to Qureshi et al (2007), HRM is connected with all the managerial functions
engaged in planning for rewarding, utilizing, developing, selecting, recruiting, and
maximizing the potential of the human resources in an organization.
2.2 Job Satisfaction
Employee job satisfaction is an inter-disciplinary term that has been paying attention of
the researchers and practitioners from different disciplines such as psychology, human
resource management, organizational behavior, TQM and so forth. In literature, there
are a large number of studies that analyze the term from many different perspectives
and its relationship with various organizational variables (Lund 2003). But there is no
universal definition of employee satisfaction that exposes all these dimensions at the
same time. Most of the definitions emphasize the importance of employees‟ job-related
perceptions that link their expectations and what they receive in return. Locke et. Al
(1969) describes job satisfaction as a pleasurable or positive emotional state resulting
from the appraisal of one's job and job experiences. Robbins (2010) in his book said job
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
satisfaction is a general attitude of employees either favorable or unfavorable towards
job.
2.3 HR Practices and Job Satisfaction
HR practices and job satisfaction are studied widely in different parts of the world. It is
assumed that HR practices are closely associated with job satisfaction (Ting 1997).
Because many scholars and practitioners believe that sound HR practices result in
better level of job satisfaction which ultimately improves organizational performance
(Appelbaum, Bailey, Berg & Kalleberg 2000). Steijn (2004) found that HRM practices
had positive effect on job satisfaction of the employees of Dutch public sector whereas
individual characteristics such as age, gender, and education had insignificant effect on
job satisfaction. Aswathappa (2008) argued that an organization should have better HR
plans to motivate its employees. Sound HR planning can enhance job satisfaction of the
employees by providing opportunities for the employees to participate in planning their
own careers (Weeratunga 2003). S. Gürbüz (2009) proposed some HR practices, which
were participation, empowerment, job rotation, self-directed work teams, and contingent
compensation were positively correlated with employee job satisfaction. He conducted
hierarchical regression analysis in his study which reveals except contingent
compensation the all other practices (participation, empowerment, job rotation, and self
directed work teams) account for unique variances in job satisfaction of the surveyed
firm‟s employees. From the above literature reviews, it is found that there is significant
relation of employee job satisfaction and productivity with human resource practices
including selection, employee benefits, compensation, training and staffing practices.
HRM has some influential factors which are directly and indirectly related with employee
job satisfaction and dissatisfaction. Organization especially service oriented ones such
as banking organizations should focus on proper HR practices to gain competitive
advantages from their rival organizations. In modern business world, employees are
considered resources and core competences. So it is extremely vital to focus on
employee job satisfaction.
3. Research Gap
A number of scholastic researches have been done on the relationship between HR
practices and job satisfaction and main focus of those researches were the developed
countries. Although some HRM researches have done in developing countries like
Bangladesh but their concerns were the availability of HR practices and organizational
performance relevant. Rab (1991) studied 24 small enterprises and Moyeen & Haq
(2001) studied 92 large and medium enterprises on the availability of HR practices and
their effectiveness. Taher (1992) studied Khulna Hard Board Mills on overall personnel
management practices. Mohiuddin and Mahmood (2001) studied on how personnel
management gets transformed into human resource management. Ahmed (2001) has
tried to find out the linkage between HR practices and corporate strategy. Shelly (1994)
examined the role of human resources on infrastructure and industrialization in
Bangladesh. Mahammod (2004) has tried to find out the practices that had significant
influence on the development of HR practices in Bangladesh. (Mizan &Jamal 2013)
found a strong linkage between HR practices and organizational commitment in the
context of Bangladesh (Haque & Azim, 2008). Hossain & Ullah (2009) did a
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
comparative study in the employee job satisfaction of public and private banks located
in Dhaka city. Islam and Haque (2013) studied HRM as status and challenge in the
banking sector of Bangladesh. The above literature reviews show that a lot of research
has been done around the world focusing on HR practices and employee job
satisfaction but the measurement of job satisfaction on HR practices as an area of
research yet has received proper attention in Bangladesh. Some indigenous
researchers studied HRM as a new organizational practice and have tried to find their
acceptability. So the study is therefore, a step to fill the existing research gap.
4. Objectives of the Study
The main objective of the study is to measure the level of employee job satisfaction on
different HR variables of commercial banks in Bangladesh. In order to achieve this
objective, the following specific objectives were considered:
 To indicate the degree of association of HR practices with overall employee job
satisfaction.
 To suggest some measures in order to improve the HRM practices of the
selected banks.
5. Methodology of the Study
The research of the measurement of employee job satisfaction on HR practices is an
empirical and exploratory type of study which requires collecting data from desired field.
The population of this research was the employees of banking sectors in Bangladesh.
To collect data a survey was conducted at several public, private and specialized banks
located in Sylhet divisions. A highly structured but self-administered questionnaire was
used to conduct the survey in this research. The questionnaire was tailored on the basis
of two parts (i) General information on HR variables and (ii) Bank employees‟
Satisfaction level on selected HR practices and their respective job. Primary data
related to general information on HR practices included 19 factors and five-point “Likert
type” scale was applied to transform qualitative measure into quantitative measure for
each practice. The five-point scale indicated different values (5= strongly satisfied, 4=
satisfied, 3=neutral position, 2=dissatisfied, and 1=strongly dissatisfied). The
questionnaire was pre-tested on the employees of some selected banks in Sylhet
Metropolitan area. And finally, questionnaire administered to 170 respondents of three
categories of banks but complete data were collected from 150 employees. In the
research, HR related factors were taken as independent variables which are associated
with job satisfaction and employee job satisfaction was taken as dependent variables.
To satisfy research objectives one descriptive analysis and different hypotheses were
developed and tested by multiple correlation and regression analysis. The researchers
also used secondary data like Books, journals and related web pages to construct
literature review and other theoretical base as required.
6. Research Hypothesis
In this research study following hypotheses are designed to arrive at the decision:
a. Hypothesis, Ho1: Employee job satisfaction has no association with HR
practices (19 HR practices).
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
b. Hypothesis, Ho2: There is no linear relationship between HR practices and
employee job satisfaction.
c. Hypothesis, Ho3: HR practices (19 HR practices) do not affect employee job
satisfaction.
7. Theoretical Framework of the study:
Figure: HR Practices and Employee Job Satisfaction
Employee Job Satisfaction
Recruitment and Selection
Organizational Structure
Training and Development
Compensation management
Motivation
Employee Productivity
Job security
Performance Management
Employee Accountability
Planning
Analysis
Findings Manpower
Participationand
in decision
Promotional Opportunity
Creativity and Innovation
Descriptive
Analysis Working Hour
Reward System
Discipline
Benefits and Services
Working Environment
8. Empirical AnalysisAttitude
and Discussion
of top Management
Organizational
Climate and
Internal Practices
HR Practices
Employee Satisfaction
on HR Practices
The study is an empirical one which needs to develop a theoretical framework where
organizational practices considered independent variables and employee job
satisfaction on the other hand taken as dependent variable. By following these
organizational internal climate and practices, moderating variables and employee
satisfaction on HR practices are taken as intervening variables shown in the following
figure:
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
8. Empirical Analysis and Discussion
8.1. Descriptive Analysis (Table: 01)
HR practices
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Recruitment and Selection process
Training and Development
Motivation
Job security
Employee Accountability
Participation in decision making
Creativity and Innovation
Reward System
Benefits and Services
Discipline
Compensation management
Employee Productivity
Performance Management
Manpower Planning
Promotional Opportunity
Working Hour
Attitude of top management.
Working Environment.
Organizational Structure.
Public
Private
Specialized
Banks
Banks
Banks
Mean
SD Mean
SD Mean
SD
2.90
1.13 4.18 0.98 2.90
1.10
3.84
0.91 4.14 0.70 4.10
0.80
3.94
0.68 3.96 0.67 4.10
0.80
4.00
1.09 2.82 1.21 4.30
0.60
4.18
0.75 4.06 0.98 4.04
0.97
3.86
0.81 3.96 0.81 4.04
0.88
2.32
0.98 2.20 0.95 2.02
0.79
4.12
0.85 4.28 0.57 4.40
0.61
4.40
0.67 4.24 0.63 4.30
0.61
3.98
0.55 4.14 0.90 4.20
0.70
4.34
0.59 4.30 0.58 4.34
0.59
3.96
0.49 4.02 0.86 4.30
0.67
4.20
0.67 4.20 0.67 4.02
0.77
2.96
1.21 3.96 1.01 2.82
1.22
4.30
0.76 4.12 0.72 4.22
0.71
4.02
0.80 3.92 0.80 4.32
0.55
4.00
0.65 3.16 0.77 4.14
0.56
3.80
0.81 3.60 1.05 4.20
0.86
4.24
0.66 4.32 0.59 4.23
0.77
All Banks
Mean
3.33
4.01
3.99
3.71
4.09
3.95
2.18
4.27
4.31
4.11
4.33
4.09
4.14
3.25
4.21
4.09
3.76
3.87
4.26
SD
1.23
0.81
0.72
1.18
0.90
0.83
0.91
0.69
0.64
0.73
0.59
0.71
0.71
1.25
0.73
0.74
0.66
0.94
0.67
Table (01) states the descriptive statistical information (mean and standard deviation) of
the indicators of job satisfaction of bank employees relating to HRM. The value 03 of the
above table indicates the employees are neither satisfied nor dissatisfied so if the mean
values are more than 03 and standard deviations are comparatively less, then we can
say employees are satisfied (vice-versa). In this condition, banking employees are more
satisfied regarding their compensation management following the benefits and services,
reward system, organizational structure, promotional opportunity, performance
management etc. Out of 19 HR practices, banking employees are satisfied almost all of
the indicators except creativity and innovation. That means as a bank employee, s(he)
has to perform as the daily routine work. Actually they do not get any time to think or
create innovative things.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
8.2 Multiple Correlation Analysis of all three banks (Table: 02)
Independent Variables ( Indicators of Job
Satisfaction)
Recruitment and
Selection process
Training and
Development
Motivation
Job Security
Employee
Accountability
Participation in
decision making
Creativity and
Innovation
Reward System
Benefits and Services
Discipline
Compensation
Management
Employee Productivity
Performance
Management
Manpower Planning
Promotional
Opportunity
Working Hour
Attitude of Top
Management.
Working Environment
Organizational
Structure
Job Satisfaction ( Dependent Variables)
Private
Banks
0.112
0.437
.367(**)
0.009
0.065
0.652
0.05
0.731
0.003
0.985
0.096
0.505
0.094
0.518
0.062
0.669
.291(*)
0.041
0.208
0.146
0.141
0.328
0.014
0.922
0.132
0.359
0.009
0.948
0.008
0.958
-0.019
0.898
0.128
Specialized
Banks
0.063
0.663
-0.056
0.701
0.092
0.526
0.01
0.942
-0.093
0.522
-0.102
0.481
0.057
0.693
0.072
0.621
0.112
0.44
0.083
0.568
0.087
0.55
-0.059
0.686
0.012
0.933
-0.128
0.375
.503(**)
0
0.01
0.942
.352(*)
All Banks
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Public
Banks
0.16
0.268
0.02
0.891
0.01
0.946
0.104
0.474
-0.178
0.216
0.054
0.707
-0.152
0.291
.283(*)
0.046
0.059
0.685
-0.149
0.302
-0.017
0.906
0.066
0.647
0.05
0.728
.423(**)
0.002
0.067
0.646
0.068
0.639
0.209
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
0.145
0.098
0.5
-0.144
0.319
0.374
0.091
0.53
-0.072
0.619
0.012
0.11
0.448
-0.182
0.206
.007
.000
1.000
.042
.607
.040
.626
.133
.106
-.062
.449
-.003
.969
.010
.907
.121
.139
.168(*)
.040
.026
.750
.067
.417
-.021
.795
.069
.399
.046
.574
.193(*)
.018
.018
.822
.219(**)
.092
.265
-.120
.143
* Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).
The researchers tried to establish relationships between employee job satisfaction and
the indicators of HR practices either for individual bank or for all banks together through
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
the multiple regression analysis (table- 02). From the table, it is found that there are
mentionable variability in the opinions of employees regarding the association of job
satisfaction and HR practices. In case of total scenario, employee job satisfaction is
comparatively more positively associated with attitude of top management (r=21.9%),
promotional opportunity (r=19.3%) and benefits and services(r=16.81%). And there are
negative association between job satisfaction and only four HR practices namely
organizational structure (r =-12%), employee productivity (r=-2.1%), participation in
decision making (r=-.03%) and employee accountability (r=-6.2%). The remaining HR
practices have positive associated with job satisfaction at a very low degree. The table
also shows the correlation statistics for every individual bank regarding the association
of job satisfaction and HR practices.
8.3 Hypothesis testing
In the study, the first hypothesis is “employee job satisfaction has no association with 19
HR practices”. The following table is derived from correlation matrix analysis by using
SPSS 11.5 version to satisfy the hypothesis.
H0 1.4(a):
H0 1.5(a):
H0 1.6(a):
H0 1.7(a):
H0
1.10(a):
H0
1.11(a):
H0
1.12(a):
H0
1.13(a):
S
t
u
d
i
e
d
H0 1.9(a):
Studied Variable: Job
Satisfaction
H0 1.8(a):
.000
Association
Remarks**
No / very little association
1.000
.042
Positive
.607
.040
Positive
.626
.133
Positive
.106
-.062
Negative
.449
-.003
Negative
.969
.010
Positive
.907
.121
Positive
.139
.168(*)
Positive
Significant
.040
.026
Positive
.750
.067
Positive
.417
-.021
Negative
.795
.069
.399
Positive
S
a
t
i
s
f
a
c
t
i
o
n
H0 1.3(a):
Correlation
Statistics
J
o
b
H0 1.2(a):
Independent Variables ( HR Practices
for Job Satisfaction)
Recruitment and
Pearson Correlation
Selection
Sig. (2-tailed)
process
Pearson
Correlation
Training and
Development
Sig. (2-tailed)
Pearson Correlation
Motivation
Sig. (2-tailed)
Pearson Correlation
Job Security
Sig. (2-tailed)
Pearson Correlation
Employee
Accountability
Sig. (2-tailed)
Pearson
Correlation
Participation in
decision making
Sig. (2-tailed)
Pearson Correlation
Creativity and
Innovation
Sig. (2-tailed)
Pearson Correlation
Reward System
Sig. (2-tailed)
Pearson
Correlation
Benefits and
Services
Sig. (2-tailed)
Pearson Correlation
Discipline
Sig. (2-tailed)
Pearson
Correlation
Compensation
Management
Sig. (2-tailed)
Pearson Correlation
Employee
Productivity
Sig. (2-tailed)
Pearson
Correlation
Performance
Management
Sig. (2-tailed)
V
a
r
i
a
b
l
e
:
H0 1.1(a):
Studied Variable: Job Satisfaction
Correlation Matrix (Table no. 3)
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
H0
1.14(a):
H0
1.15(a):
H0
1.16(a):
H0
1.17(a):
H0
1.18(a):
H0
1.19(a):
Manpower
Planning
Promotional
Opportunity
Working Hour
Attitude of Top
Management.
Working
Environment
Organizational
Structure
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed)
.046
Positive
.574
.193(*)
Positive
Significant
.018
.018
Positive
.822
.219(*)
Positive
Significant
.007
.092
Positive
.265
-.120
Negative
.143
* Correlation is significant at the 0.05 level (2-tailed) i.e. H0 is rejected if p≤.05.
** Blank cells indicate that results are not statistically significant.
Table no. 03 shows that job satisfaction has either positively or negatively correlated
with organizational HR practices and all the null hypotheses [{H0 1.2(a) - H0 1.19(a)}
except H0 1.1(a)}] are rejected because there are some relationships between 18 HR
practices and employee job satisfaction. Based on p value (less than 0.05), among
those the positive correlations benefits and services, promotional opportunity and
attitude of top management are statistically significant (5% level of significance at 2tailed test) that is, these variables have significant association with employee job
satisfaction. And all other positive and negative associations are not statistically
significant.
8.4 Multiple Regression Analysis
Multiple regression analysis evaluates the simultaneous effect of all the independent
variables on the dependent variable. In the present study for measuring level of
employee job satisfaction on HR practices, the researchers fit the following multiple
regression model based on Ordinary Least Squares (OLS) method. For this purpose, 19
HR practices are taken as independent variables and employee job satisfaction is taken
as dependent variable. So the regression model is given below
JOB_SAT= β0+ β1(REC_SLC)+ β2(TRA_DEV)+ β3(MOT)+ β4(JOB_SEC)+ β5(EMP_ACC)+ β6(PAR_DEC)+
β7(CRE_INV)+v β8(REW_SYS)+ β9(BEN_SER)+ β10(DIS)+ β11(COM_MGT)+ β12(EMP_PRO)+ β13(PER_MGT)+
β14(MAN_PLA)+ β15(PRO_OPP)+ β16(WOR_HOR)+ β17(ATT_TMGT)+ β18(WOR_ENV)+ β19(ORG_STR).
Where β0, β1, β2,β3, β4, β5………….. β19 are the regression co-efficient.
To get the value of the model and testing hypotheses Ho2 and Ho3, the researchers
have calculated the following multiple table by using SPSS 11.5 version.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
Table No. 4: Multiple Regression Analysis
Multiple Regression Model Summary
Table No. 4 (A)
Multiple R
R Square
2
Adjusted R
Std. Error
.443(a)
.196
.079
.62967
ANOVA(b)
Table No. 4 (B)
Model
1
Sum of
Squares
df
Mean Square
F
Sig.
Regression
12.596
19
.663
1.672
.049(a)
Residual
51.544
130
.396
Total
64.140
149
Coefficients(a)
Table No. 4 (C)
Unstandardized
Coefficients
Standardized
Coefficients
Model Summary
B
Std. Error
Hypothesis
(Constant)
2.246
.924
H0 3.1(c):
REC_SLC
.029
.051
H0 3.2(c):
TRA_DEV
.029
H0 3.3(c):
MOT
H0 3.4(c):
JOB_SEC
H0 3.5(c):
EMP_ACC
H0 3.6(c):
PAR_DEC
H0 3.7(c):
Beta
t
Sig.
2.432
.016
.054
.564
.573
.072
.036
.408
.684
.037
.077
.040
.480
.632
.086
.055
.154
1.555
.122
-.067
.066
-.092
-1.022
.309
-.024
.067
-.030
-.354
.724
CRE_INV
-.033
.065
-.045
-.503
.616
H0 3.8(c):
REW_SYS
.125
.080
.132
1.566
.120
H0 3.9(c):
BEN_SER
.116
.086
.112
1.345
.181
H0 3.10(c):
DIS
.000
.082
.000
-.004
.997
H0 3.11(c):
COM_MGT
.010
.105
.009
.095
.925
H0 3.12(c):
EMP_PRO
-.141
.085
-.152
-1.659
.100
H0 3.13(c):
PER_MGT
.066
.082
.071
.807
.421
H0 3.14(c):
MAN_PLA
.007
.046
.014
.153
.878
H0 3.15(c):
PRO_OPP
.249
.087
.276
2.874
.005**
H0 3.16(c):
WOR_HOR
-.138
.080
-.156
-1.718
.088
H0 3.17(c):
ATT_TMGT
.216
.089
.218
2.416
.017**
H0 3.18(c):
WOR_ENV
.001
.067
.001
.011
.991
H0 3.19(c):
ORG_STR
-.201
.090
-.207
-2.245
.026**
** Result is significant at 5% level
a. Predictors: (Constant), ORG_STR, TRA_DEV, DIS, EMP_PRO, REW_SYS, PAR_DEC, MOT,
BEN_SER, ATT_TMGT, REC_SLC, WOR_ENV, MAN_PLA, WOR_HOR,
PER_MGT, EMP_ACC, COM_MGT, JOB_SEC, CRE_INV, PRO_OPP
b. Dependent Variable: JOB_SAT
The HR practices in the above model reveal their ability to predict job satisfaction. The
value of R2 from the above table (4A) indicates that 19.6 % of variance in employee job
satisfaction can be explained by these 19 HR practices. The remaining 80.40% of
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
variance is not explained by these variables which mean that the rest 80.40% of the
variation of employee job satisfaction is related to other variables which are depicted in
the model. The F value from the above table (4B) at 5% level of significant and 19 &130
degree of freedom is 1.672 which is more than the table value 1.570 (Gupta and Gupta
2013); so the null hypothesis (H02) is rejected which reflects that there is a linear
relationship between HR practices and employee job satisfaction. But from the p value
(P= .049) in the table of ANOVA test, it is observed that the value is very close to 0.05,
which means the model is not significant enough. It means that though there is liner
relationship between HR practices and Job satisfaction but statistically this linear
relationship is not enough significant here.
The strengths of influence of each independent variable has on the dependent variable
is determined by the use of multiple regression coefficients of the independent
variables. The influence of each independent variable is shown in table no. 4 (C). As
shown in the above table, out of 19 HR practices, only three practices which have most
significant impact on employees job satisfaction which are promotional opportunity
(t=2.874, Standardized beta .276 and p=.005), attitude of top management (t=2.416,
Standardized beta .218 and p=.017) and organizational structure (t=-2.245,
Standardized beta -.207 and p=.026). Thus we reject the null hypothesis number H0
3.15(b), H0 3.17(b) and H0 3.19(b) because the calculated value of t at 2-tail test and
130 df is more the table value ± 1.6567. This means that promotional opportunity,
attitude of top management and organizational structure have significant impact on
overall employees job satisfaction, and the remaining null hypotheses are accepted,
and these factors statistically having no impact on employee job satisfaction. The other
independent variables have also some positive or negative effect on the employee job
satisfaction but their effects are not statistically worth mentionable.
9. Policy Implementation
This research is important for both bank authorities and academic researchers. Based
on the empirical analysis the following policy measures are recommended:
I.
Banking organizations should practice sound HRM to their internal
organizational system because HR practices have association and impact
on employees‟ overall job satisfaction.
II. Human needs are enormous and evolving over the time (Maslow 1943), so
bank authorities need to develop and implement new and timely HR
practices to get employee satisfaction.
III. All HR practices are not equally important for employee satisfaction;
Promotional opportunity, attitude of top management and benefits and
services are important for motivation but remaining HR practices are also
important for maintaining employees.
IV. The academic researchers will get help from this empirical study in
designing literature review and research gap.
Proceedings of 11th Asian Business Research Conference
26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9
1. Conclusion and Recommendation
Human Resource Management practices are common in all banks but their implications
vary from bank to bank; consequently employee satisfaction on those HR practices and
their jobs also varies. Moreover, organizational climate and internal systems also
mediate HR practices and employee job satisfaction. Employee job satisfaction
depends on a number of individual and organizational factors; HR practice is one of
them. In this study, it is found that respondents of these three categories of banks are
consistent in their perception on maximum HR practices and their understanding varies
on few variables like recruitment and selection, manpower planning and job security.
Employees in all banks expressed their satisfaction with all HR practices except
opportunity for creativity and innovation. Promotional opportunity, attitude of top
management and benefits and services have significant and positive association with
employee job satisfaction. All the designed 19 HR practices have no linear relationship
with job satisfaction because only three practices showed statistically significant positive
associations. Furthermore, three variables such as promotional opportunity, attitude of
top management and organizational structure have significant impact on overall
employee job satisfaction and the studied HR practices have the ability to explain only
19.6% of employee job satisfaction. Authorities of the concerned banks, however,
should lay more stress on exhibiting a caring attitude by top management, ensuring fair
promotional opportunity and benefits & services to the employees for their job
satisfaction.
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