International Journal of Human Resource Studies

ISSN 2162-3058
2015, Vol. 5, No. 2

A comparative research on job satisfaction and HRM

practices: Empirical investigation of few commercial
bank employees in Bangladesh
Riaz Uddin Ahmed
Lecturer, School of Business
Britannia University, Bangladesh
Email: riaz017@yahoo.com

Doi:10.5296/ ijhrs.v5i2.7765

URL: http://dx.doi.org/10.5296/ ijhrs.v5i2.7765

Abstract
This research study was focused on the effect of HRM practices namely recruitment &
selection, training & development, salary & benefits, job security, reward and supervisory
role on job satisfaction of few commercial bank employees of Bangladesh. A sample of 50
respondents were selected randomly from ONE Bank Ltd, The City Bank Ltd, ICB Islamic
bank Ltd, Prime Bank Ltd and Eastern Bank Ltd using purposive sampling method. A survey
was carried out with a self-designed structured closed ended questionnaire with five point
Likert scale and the data were analyzed with descriptive statistics, Pearson correlation and
multiple linear regression. The findings revealed that recruitment & selection, training &
development, salary & benefits, and reward have positive effect on employees job
satisfaction whereas supervisory role and job security has adverse effect. It was
recommended to the authorities of said banks that they should emphasize more on these two
HRM practices to ensure sustainable growth and development of their organization.
Keywords: Commercial bank Bangladesh, HRM practice, Job satisfaction, Recruitment and
Selection, Salary and Benefits, Job Security, Reward, Supervisory role

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2015, Vol. 5, No. 2

1.

Introduction

In todays cutthroat business environment, organizations are confronted with rising

challenges to attain and optimize one of the sustainable competitive advantages named
Human Resource (HR). Though it is considered to be the most important asset of an
organization, very few organizations can successfully exploit its potentials (Ahmed &
Schroeder 2002). Organizations success relies on various factors; however employee or HR
is regarded as the most crucial factor which directly affects the overall performance of the
organization. They can achieve the goal without any obstacles if they are provided with a
satisfied workforce. The management of HR (HRM) thus encounter different practices
focusing on optimal utilization and management of their human resource in order to achieve
maximum output and a unique competitive advantage (Price, 2004).
To maintain competitive advantage and achieve the ultimate goal of the organization, it is
obvious that HRM practices have great significances. HRM practices are referred to a set of
policies and practices which boost up the firms human capital to contribute in the
achievement of business objectives (Grbz, 2009). Studies (Syed and Yah, 2012; Grbz,
2009 and Price, 2004) have shown that efficient use of human resources management (HRM)
practices are crucial to accomplish both long and short term objectives. HRM practices thus
involve organizational investments in individual employees training, decision-making,
participation, promotion, and the use of performance contingent rewards and open
communication to build up satisfaction among employees toward their job (Meyer & Allen,
1997; Delaney & Huselid, 1996).
Job satisfaction is an attitude which is derived from a harmonizing and summation of
numerous precise likes and dislikes with the job (Shrivastava & Gupta, 2015). Robbins (2012)
also defined job satisfaction as an individual's general attitude regarding his or her job. This
attitude defines the level of satisfaction an employee has for his job and act as a single crucial
indicator of how employees feel and how contented they are with their job. HRM practices
are mostly oriented to develop and allocate human capital in the best possible ways while
providing good environments and benefits to reach the long term goal of the organization
(Bogdanova et al. 2008). These in turn furnish employees an adequate level of job
satisfaction and motivation. Numerous research (Price, 2004; Igbal, Malik and Ghafoor, 2013;
Javed et al, 2012 and Syed & Yah, 2012) were carried out regarding the impact of HRM
practices on job satisfaction among employees in developing and developed countries,
however only a handful of them focused on the commercial banking sector of Bangladesh.
2.

Research Objectives

The primary objective of this study is to examine the impact of different HRM practices on
job satisfaction. Other specific objectives are:
1. To explore the relationships between dependent and independent variables.
2. To identify variables which have most significant effect on job satisfaction.
3. To come up with recommendations for HR policy makers to improve all HR
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ISSN 2162-3058
2015, Vol. 5, No. 2

initiatives as well as employees job satisfaction.

3.

Literature Review

It has already been revealed by a large number of researchers that human resources
management practices play a significant role in organization to increase employees job
satisfaction that in turn increases work performance and help organization to achieve its goal
successfully. A study was conducted by Katou (2008) to assess the relationship between
HRM practices (resourcing and development, compensation and incentives, involvement and
job design) and organizational performance in the manufacturing sector of Greece. The
outcome suggested that organizational performance is influenced by HRM practices and
business strategies through improving HRM outcomes (skills, attitude, behavior etc). Delaney
and Huselid (1996) agreed that best HRM practices are aimed to improve the overall
performance of employees within the organization which ultimately results in an increased
organizational performance through job satisfaction. They studied eleven practices - selection,
training, performance appraisal, compensation, information sharing, job design, labour
management participation, empower of decision, attitude assessment, recruitment efforts and
promotion and all were found to have significant effect on job satisfaction. According to the
examination of Syed and Yah (2012) in china, high performance HRM practices have impact
on employee job satisfaction. Their findings revealed that job satisfaction is positively
correlated with empowerment, grievance handling procedures, job rotation, merit-based
promotion, employee participation and performance-based pay. With data gathered from 480
blue collar employees of the 35 large firms of Istanbul, Grbz (2009) did experiment the
impact of HRM on job satisfaction. He used different variables in his study e.g.
empowerment, Job rotation, team work, participation and contingent compensation. However,
the result showed that dominant variable for the job satisfaction of employees is participation
of the employees in decision making. Another interesting investigation was carried out by
Javed et al, (2012) on the public sector of Pakistan. They tried to measure the impact of
reward, recognition and training on job satisfaction and their findings indicated that
recognition and training are most crucial than reward. Similar study was carried out by Iqbal
et al (2013) on HRM practices adopted by corporate sector of Punjab, Pakistan. The findings
of that study suggested that supervisory role possess high positive effect on job satisfaction
while compensation policy and participation in decision making have no significant effect on
job satisfaction. Asta and Zivile (2011) researched on the link of HRM with organizational
commitment and job satisfaction. Empirical result unveiled that HRM practices such as skill
enhancing, motivation enhancing and engagement enhancing have a positive relation with
effective human resource reaction like job satisfaction. A single research carried out by
Majumder (2012) has provided a deep insight on HRM practices and job satisfaction of
employees in different private banks of Bangladesh. His finding suggests that most of the
employees are dissatisfied with compensation package followed by reward and motivation,
career growth, training and development, management style, job design and responsibilities.
Masoodul et al, (2013) used three HRM practices (compensation, empowerment and
appraisal system) and their impact on employee's job satisfaction and loyalty. His
investigation was carried out on several government owned banks, and the finding indicates
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2015, Vol. 5, No. 2

that compensation is most crucial for developing employee's job satisfaction; meanwhile
empowerment can be considered as a significant factor for employee's loyalty. A study on job
satisfaction of private bank employees was conducted by Jeet & Sayeeduzzafar (2014) in
India. Out of all HRM practices, their empirical output suggests that training, performance
appraisal, team work and compensation have significant impact on job satisfaction, while
participation has no significant impact on job satisfaction of the employees. Similar research
was carried out by Oyeniyi et al, (2014) on the staffs of Nigerian banks. They used
compensation, promotion, training, performance evaluation and supervisory role as
influential HRM practices of employees job satisfaction for their study. The finding revealed
that all these practices are positively related to employees' job satisfaction except supervisory
role. According to his finding, supervisory role has negative effect on employee's job
satisfaction and this clearly contradicts the finding of Iqbal et al (2013). In relation to this
contradiction, it should also be noted that Javed et al, (2012) prioritized reward over
employee recognition and training. Therefore, this research was focused on finding the real
fact related to job satisfaction of Bangladeshi commercial bank employees and included six
HRM practices namely recruitment and selection (RS), training & development (TD), salary
& benefits (SB), job security (JS), reward (R), and supervisory role (SR) to draw a solid
conclusion.
4.

Research Methodology

The study of this research was conducted with a self-designed structured closed ended
questionnaire with five point Likert scale, where 1 = strongly disagree, 2 = disagree, 3 =
neutral, 4 = agree and 5 = strongly agree. Using purposive sampling method, questionnaires
were distributed to a sample size of 50 respondents who were chosen randomly from different
branches of five commercial banks: ONE Bank Ltd, The City Bank Ltd, ICB Islamic bank
Ltd, Prime Bank Ltd and Eastern Bank Ltd. Though the researcher considered reaching a
large size of sample, due to busy time schedules of bank employees and their engagement in
various activities the number of respondents was restricted to 50. Data collected from
dependant and independent variables were assessed, analysed and interpreted with descriptive
statistics, Pearson correlation matrix and multiple regression. All these statistical methods
were applied with the aid of a well renowned statistical tool SPSS (Statistical Product and
Service Solution).
5.

Hypothesis

The study of this research therefore develops and frames the following hypotheses to
accomplish research objectives:
H1: Recruitment & selection is positively related with employees job satisfaction.
H2: Training & development is positively related with employees job satisfaction.
H3: Salary & benefits are positively related with employees job satisfaction.
H4: Job security is positively related with employees job satisfaction.
H5: Reward is positively related with employees job satisfaction.
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H6: Supervisory role is positively related with employees job satisfaction.

6.

Relationship framework model of variables

For the better conceptual understanding of the underlying link between dependant and
independent variables, a model of relationship framework can be formulated and developed
based on the findings of literature review.

7.

Model Specification

For further analysis of the relationship between dependent variable (job satisfaction) and
independent variables (recruitment & selection, training & development, salary & benefits,
job security, reward, and supervisory role), a multiple linear regression model has been
developed to find out the significance level of influence the independent variables impart on
dependent variables. With the use of SPSS, the model can be depicted as:

Y = 0 + 1*X1 + 2*X2 + 3*X3 + 4*X4 + 5*X5 + 6*X6 +

In this equation, Y represents dependent variable that is job satisfaction and X1, X2, X3, X4,
X5 and X6 refers to independent variables which are recruitment and selection, training &
development, salary & benefits, job security, reward, and supervisory role respectively. While
1, 2, 3, 4, 5 & 6 constitutes coefficient of variables with 0 constant value, denotes
the residual error of regression.

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8.

Data analysis, interpretation & discussion

[Table-A]
Descriptive Statistics
N

Minimum Maximum Sum

Mean

Std. Deviation

50

165

3.30

1.111

50

210

4.20

.606

50

190

3.80

.606

Salary and Benefits

50

235

4.70

.463

Job Security

50

230

4.60

.495

Reward

50

210

4.20

.606

Supervisory Role

50

135

2.70

.789

Valid N (listwise)

50

Job Satisfaction
Recruitment
Selection

and

Training
Development

and

Table-A with descriptive statistics of dependant and independent variables suggest that
employees on average are satisfied with their job (mean value 3.30). This is further supported
with the individual mean value of recruitment and selection, training and development, salary
and benefits, job security and reward. However, supervisory role scored the lowest mean
value and indicate that there might not be enough link between employees' job satisfaction
and any supervisory role that their job comes with.

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[Table-B]
Pearson Correlation Coefficients, N = 50
Recruitment
Salary
Job
Training and
Job
Supervisory
and
and
Reward
Satisfaction
Development
Security
Role
Selection
Benefits
Job
Satisfaction

Recruitment
and
Selection

0.212

Training and
0.242
Development

0.111

Salary and
0.575**
Benefits

0.218

-0.218

Job Security

0.408**

0.272

-0.272

0.802**

Reward

0.364**

-0.389

-0.167

-0.145

-0.068

Supervisory
Role

-0.012

-0.085

0.512**

0.028

0.209

-0.299

Table-B with the result of coefficient correlation reveals that with exception of supervisory
role all the correlations are positive and highly significant. As the values of these correlations
are high, H1, H2, H3, H4 & H5 can be accepted in support of the statement that HRM
practices (recruitment and selection, training & development, salary & benefits, job security
and reward) are positively related with job satisfaction.
In a narrow analysis of correlations, salary & benefit was found to be highly and significantly
related with job satisfaction (0.575, <.01). It unveils that the more emphasis management
lend on this HRM practice the more increased job satisfaction get in time. Therefore, H3 can
be accepted and it can be suggested that salary and benefit should receive the first priority for
increasing employees job satisfaction. Moreover, when it comes to the development of
sustainable growth of organization, employees increased job satisfaction is highly important.
Furthermore, job security proved to have the second highest and significant correlation (0.408,
<.01) with job satisfaction. Thus, H4 is supported and it is suggested that if the management
focus more on this practice, employees job satisfaction will be higher accordingly. The
reason behind this could be due to the higher competition in job market and the scarcity of
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available job with a rising rate of unemployment in Bangladesh.

HRM practice of reward manifested a higher degree of correlation (0.364, <.01) with
employees job satisfaction, thus H5 can be accepted. It should be noted that if management
highlight this practice with proper investment then job satisfaction of employees will be
improved. Employees opportunity of training and development have (0.242, <.01) fairly high
degree of correlation with job satisfaction and advise that H2 can be accepted. This
correlation also indicates that management focus on this HRM practice will do more to
improve employees satisfaction toward their job. Training and development perceived to be
an escape from workload and thereby bring motivation to work resulting an increased
workability and knowledge. Meanwhile, recruitment and selection practice of HRM
demonstrated relatively lower but positive correlation (0.212, <.01) leaving the H1 be
accepted. Thus, it is evident that if this practice gets focused by the management it will still
make the overall job satisfaction higher. A fair recruitment and selection transmit a vibe of
fairness to employees, and this in turn results in an increased level satisfaction at the job.
However, supervisory role depicted to be insignificant and negatively related (-0.012) with
employees job satisfaction. It implies that if employees were offered any additional
supervisory role, it would lead them to a reduced satisfaction at job. Therefore, H6 is rejected.
This may be as a result of poor mentoring relationship that employees encounter in their
working life.

[Table-C1]
Model Summary

Model R
1

.911a

Adjusted
R Square Square
.830

.807

R Std. Error of
the Estimate
.488

a. Predictors: (Constant), Supervisory Role, Salary and

Benefits, Recruitment and Selection, Reward, Training and
Development, Job Security
[Table-C2]
ANOVAa
Sum
Squares

Model
1

Regression

50.244

of
df

Mean Square F

Sig.

8.374

.000b

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Residual

10.256

43

Total

60.500

49

.239

a. Dependent Variable: Job Satisfaction

b. Predictors: (Constant), Supervisory Role, Salary and Benefits, Recruitment and
Selection, Reward, Training and Development, Job Security

[Table-D]
Coefficientsa
Unstandardized
Coefficients

Standardized
Coefficients

Std. Error

Beta

-14.878

1.323

.500

.154

.865

Salary and Benefits

Model
1

Sig.

-11.248

.000

.273

3.237

.002

.171

.472

5.051

.000

2.045

.283

.852

7.224

.000

Job Security

-.385

.318

-.171

-1.211

.233

Reward

1.199

.146

.654

8.193

.000

Supervisory Role

-.032

.146

-.023

-.219

.828

(Constant)
Recruitment
Selection

and

Training
Development

and

a. Dependent Variable: Job Satisfaction

In a quest for further analysis and interpretation, all of the HRM practices were placed in a
multiple linear regression test in SPSS to explore their level of prediction with job
satisfaction. Table-C1 and Table-C2 reveals that predictor variables namely recruitment &
selection, training & development, salary & benefits, job security, reward and supervisory
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role were found to be significant joint predictors of employees job satisfaction [F(6,43) =
35.108; R2 = 0.83; P<.01]. Which means 83% of the variability of employees job
satisfaction in selected banks is accounted for by the variables in the model. Therefore, it can
be agreed that HRM practices are essential tools to enhance employees job satisfaction.
Table-D shows that recruitment & selection ( = 0.500, t = 3.237, P<0.01), training &
development ( = 0.865, t = 5.051, P<0.01), salary & benefits ( = 2.045, t = 7.224, P<0.01)
and reward ( = 1.199, t = 8.193, P<0.01) are significant and positively related with job
satisfaction. However, job security ( = -0.385, t = -1.211, P>0.01) and supervisory role ( =
-0.032, t = -0.219, P>0.01) were found to be insignificant and negatively related with job
satisfaction.
9.

Conclusion and Recommendation

In line with most of the previous research on job satisfaction, this research also finds the
existence of significant relationship between employees job satisfaction and HRM practices.
The study of this research suggests that among six practices of HRM; recruitment & selection,
training & development, salary & benefits, and reward were significant indicators that affect
employees job satisfaction of the mentioned banks. However, job security and supervisory
role did not demonstrate enough effect on employees job satisfaction. Therefore, it is
recommended that management should allocate substantial fund to invest on practices
associated with employees job security and supervisory role, and overcome any discrepancy
that are imparted on employees job satisfaction.
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