Management Science Letters 7 (2017) 225–232

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Management Science Letters

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Impact of H.R practices on employee’s job satisfaction: A case study from fertilizer industry of
Pakistan

Afzal Ahmeda, Yaser Zamana* and Attique Khattakb

Master Scholar, University of Haripur, Pakistan

a

bLecture,
University of Haripur, Pakistan
CHRONICLE ABSTRACT

Article history: This study investigates the impact of human resources (HR) practices, recruitment and selection,
Received: October 1, 2016 training and development, compensation and benefits, on employee’s job satisfaction in ferti-
Received in revised format: No- lizer sector of Pakistan. A pre-tested questionnaire was distributed and two hundred respondents
vember 16, 2016
provided useable information. The result of the study shows a positive relationship between HR
Accepted: February 15, 2017
Available online: practices and job performance, which indicates fair recruitment and selection, better training
February 15, 2017 and development opportunities and attractive compensation and benefit packages increase the
Keywords: level of satisfaction of employees.
Employee’s job satisfaction
HR practices
Training and development
Recruitment and selection
Compensation and benefit
© 2017 Growing Science Ltd. All rights reserved.

1. Introduction

Organizations must adjust themselves to different human resources management practices to attain
their key objectives. A company’s human resource management practices must create employee’s
knowledge, skills, and inspiration (Dessler, 2007). Different models of human resource oversaw econ-
omy need and has been produced starting with some chances on occasion. All these models bring
some knowledge and the human resource expert will adequately deal with those human resource
knowledge. The Harvard model Beer et al. (1984) meets expectations concerning concept and these
are a key guide on aid all supervisors on their relations for workers and condensed on the human or
delicate perspective about HRM. It strives toward worker promise which is not controlled. It meets
expectations that employees required will make congruent, skillful and cosset compelling. The Mich-
igan model Fombrun et al. (1984) concentrates with respect to diligent HRM. It holds individuals if
we figured out how much a viable resource that acquired cheaply, utilized sparingly, produced and
* Corresponding author.
E-mail address: yaser.zaman004@gmail.com (Y. Zaman)

© 2017 Growing Science Ltd. All rights reserved.

doi: 10.5267/j.msl.2017.2.004
226

misused fully. The influence from the practices of human resource management (HRM) prominently
known as HR practices (Delaney & Huselid, 1996; Katou & Budhwar, 2007). There are a number of
factors that impact satisfaction of the employees both informed and creating nations. Researcher need
to analyze that relationship of satisfaction between with pay, promotion, border benefits, working
condition, help for research, disappointments and outrage on his/her staff assessment and appraisal
system. This study is a focus to raise a seeing in regards the ‘’effect of HRM practices on employee’s
job satisfaction" around Pakistani worker in the fertilizer sector.

2. Literature review

HRM have been formed as a management idea which lays stress on the singular specialist and requires
on treat individuals likewise stakes as opposed expense (Wilkinson 1990). If it might have been gen-
erally acknowledged as a new administration practice, the idea remains unclear similarly as it will be
connected in distinctive routes. Guest (1987) identifies three primary methodologies to HRM: firstly,
Human Resource Management is another label to workforce management, pointing that organizations
rename their workforce division without fundamentally evolving practices, Secondly, Human Re-
source Management Concerning concept an approach for re-conceptualizing and reorganizing staff
parts and describing the worth of effort about faculty department, Thirdly HRM Similarly as a com-
pletely new methodology to management for a uniqueness which lies in the joining from human re-
source under key management and the accentuation with respect to full and certain use for these re-
sources.

2.1. Recruitment and selection

This includes two interrelated courses, recruitment is the procedures for generating a pool from claim-
ing fit individuals to apply to work with an organization whiles Selection is the transformation by
which particular instruments would utilize to look over a pool of applicants suitableness for the work
bringing under attention management objectives and lawful necessities (Bratton & Gold, 2012). Arm-
strong (2001) categories recruitment and Selection under three stages: characterizing requirement,
attracting hopefuls and selecting hopefuls. Those recruitment and Selection procedure may be a stand-
out amongst the vital HRM capacities concerning concept it will be those side of the point for entrance
under the vast majority organizations and the place practically organizations initiate talents that drive
their objectives and enthusiasm. It reflects the necessities and rationality of the organization as re-
flected in the bore from claiming people picked for that occupation. Organization’s strategy and the
dream of the organization could make acknowledged as a pointer of the endeavors of the recruitment
and it is a sample of the inward variables (Nel et al., 2008). Concerning concept, a professional HR
manager, it is indispensable will bring that competency and capability with select fit workers and put
them for suitableness worth of effort position (Morques, 2007).

2.2. Training and development

Training is the formal and precise adjustment of conduct through taking in which concerning concept
an after effect of education, instruction, improvement and arranged experience is shared (Armstrong,
2001). Training could be at work alternately off the work contingent upon the compelling reason being
referred to proper training may be needed to different necessities. A thorough examine led toward
Koch and McGrath (1996) showed that organizations that captivate a deliberate training for their
workforce need aid less averse should delight in those remunerates of that's only the tip of the iceberg
profitable workforce. The discoveries of Armstrong, (2001) uncover that training impacts authorita-
tive commitment, member information and organization-based respect toward oneself. Similarly, Bar-
tel (1994) found that venture to training supports employee resolve and builds employees trust and
improve performance. In general, training and development policies permits workers will get more
 L. Prayogo et al. / Management Science Letters 7 (2017) 227

excellent competencies that would necessary on performing their occupations proficiently and suc-
cessfully (Harrel & Tzafrir, 1999).

2.3. Compensation and Benefits

Compensation and benefit may be a precise procedure on assessing the performance of a worker fol-
lowing a sure time (Leonard, 1990). Compensation and benefit additionally impact other HR practices,
and employee relations (Fulmer et. al., 2003). Compensation is the bonuses submitted to the worker
to provide them some financial benefits and compensation procedure could a chance to be isolated
with immediate money related compensation and backhanded payment if it monetary alternately non-
financial. Caruth & Handlogten (2001) stated that employees need inspiration when there would mon-
etary remunerates straightforwardly tied with their performance. Leonard & Jonathan (1990) ex-
pressed that when those organization adopts long haul want about incentives, it will get and build a
greater amount in a row over those organizations that didn't would. Altarawneh and Al-Kilani (2010)
state that “employees are persuaded when there would monetary remunerates straightforwardly tied
on their performance. Compensation may be a vital strategy in the organization, the place it could
influence on the employer's plausibility on lure new applicants, get employee's devotion and guarantee
the most extreme level from claiming performance with help that organization objective and target
starting with those (Caruth & Handlogten, 2001)

2.4. Job Satisfaction

A large portion alluded definition of job satisfaction and the best have been advertised toward Locke
(1976) who characterized job satisfaction as concerning concept, a pleasing alternately sure enthusi-
astic state coming about or after of the assessment of a person’s particular occupation. Employment
satisfaction may be additionally characterized as individual’s general state of mind in regards as much
alternately her particular occupation (Robbins, 1999). An employee job satisfaction implies that the
level from which employee feel happy and pleasure as stated by occupation and the satisfaction level
about employees likewise connected with increment yield of the company, low truancy of the employ-
ees and low turnover (Hackman & Oldham, 1975). Robbins (1999) said that inspiration may be nearly
identified with particular job satisfaction. Particular job satisfaction needs a noteworthy impact ahead
employee’s authoritative commitment, turnover, absenteeism, tardiness, accidents, and grievances
(Byars & Rue, 1997; Moorhead & Griffin, 1999)

2.5. HR practices and Job satisfaction

HR practices particular job satisfaction are examined generally in distinctive parts of the globe. It may
be accepted that HR practices need aid nearly connected with job satisfaction (Ting, 1997). On a large
number of researcher and professionals trust that HR practices bring about finer level about job satis-
faction which enhances authoritative performance. Yu and Egri (2005) demonstrated the effects of
HR practices on job satisfaction and find out there sustain a positive relationship between them. The
point of recruitment and selection move forward and fit in the middle of employees and the organiza-
tion, teams, fill in requirements, and thus, should make a superior organization in earth (Tzafrir, 2006).
Complex publicizing recruitment and selection framework might guarantee a preferred fit between the
individual’s abilities and the organization’s prerequisite and then make the employees love their work
(Fernandez, 1992). Katou and Budhwar (2007) clinched alongside an investigation on the Greek man-
ufacturing organizations found that recruitment and selection have been decidedly identified with the
greater part authoritative performance variables and make employees satisfied. Training and develop-
ment allude all and at whatever exert should move forward current about future employee’s skills,
abilities, and learning and make them feel happy about their role (Aswathappa, 2013). Training and
development need a noteworthy sure sway around employees job satisfaction (García, 2005). Thang
and Buyens (2008) stated that training and development prompt unrivaled knowledge, skills, abilities,
228

attitudes, and conduct technique from claiming employees that eventually improve phenomenal
money related and non-fiscal performance of the organization. Compensation and benefits allude with
every last bit from the pay or remunerates setting the employees and emerging starting with their
employment (Dessler, 2008). Compensation and benefit will be a whole lot critical to workers on it
may be a standout amongst the principal purposes behind which individuals fill in and employee’s
existing status in the society, satisfaction, loyalty, and benefit are likewise impacted by that payment
(Aswathappa, 2013). Ting (1997) on an investigation on the employees from claiming US government
discovered that compensation and benefit might have been a standout amongst the vast majority crit-
ical determinants of particular job satisfaction. Better compensation and benefits relations make a
suitable environment for all workers that eventually impacts job satisfaction (Khan & Taher, 2008).

3. Research Methodology

The objective of the research is to check that is there any Impact of H.R Practices on Employee Job
Satisfaction. The Methodology provides the detail of the methods and procedures to be used for gath-
ering data, how it will be analyzed, interpreted and how its results/conclusions will be drawn. Data
was collected through questionnaires which were adopted from previous studies of Absar et al. (2010),
Brayfield and Rothe (1951), Hazara Phosphate and Fauji fertilizer were selected for sampling and 200
respondent provide useable information.

3.1. Hypotheses

H1: There is a significant relationship between Recruitment & Selection and Job Satisfaction.

H2: There is a significant relationship between employee Training & development and Job Satisfaction.

H3: There is a significant relationship between Compensation & Benefits and Job Satisfaction

3.2. Conceptual framework

Recruitment
& Selection
HR Practices

Employee’s Job
Training &
Satisfaction
Development

Compensation
& Benefits

4. Data analysis and results

4.1. Descriptive analysis

Two descriptive variables are considered in this study which is gender and age. As the data for this
research was collected from two fertilizer companies where the majority of the workers are male and
the sample of this study contained 100%, male respondent. Age of respondents is divided into three
categories, in the first slab the age limit is Below 25, in the second category the age limit is from 25
to 30, in the third category the age limit is from 31 to 40. So according to this below the age of 25 are
15%, from 25 to 30 respondents are 74%, in the third category that is 31 to 40 age limit there are
only11%.
 L. Prayogo et al. / Management Science Letters 7 (2017) 229

4.2. Correlation analysis

Correlation analysis measures the power of the relationship between independents and Dependent
variable. The utmost commonly used correlation coefficient, called the Pearson correlation coefficient,
measures the strength of the independent variables and dependent variable.

Table 1
Correlation analysis
Job Training And De- Compensation And Ben- Recruitment And Se-
Satisfaction velopment efit lection
Pearson Correlation 1
Job satisfaction
Sig. (2-tailed)
Pearson Correlation .486** 1
Training and development
Sig. (2-tailed) .000
Pearson Correlation .340** .240** 1
Compensation and benefit
Sig. (2-tailed) .000 .008
Pearson Correlation .497** .269** .197** 1
Recruitment and selection Sig. (2-tailed) .001 .007 .003
N 100 100 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

4.3. Regression analysis

Two techniques of regression analysis are applied in this study which is Model summary and coeffi-
cient. The model summary shows the overall fitness of the model and it giving specific consideration
to the value of R. To determine the statistically significant unique contribution of each variable to the
equation will check the value in the table of the coefficient. If the Sig value is less than .05 (.01, .0001
etc.) then the variable is making a significant unique contribution to the prediction of the dependent
variable. If greater than .05 then can conclude that variable is not making a significant unique contri-
bution to the prediction of the dependent variable. In this case, all the variable making a unique con-
tribution having significant values which are .000, .001 and .002.

Table 2
Model summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .491 .341 .317 .59692
a. Predictors: (Constant), Recruitment and selection, Compensation and benefit, Training and development

Table 3
Coefficient
Model B Std. error T Sig.
Training and development .465 .086 2.303 .000
Compensation and benefit .276 .078 0.894 .002
Recruitment and selection .374 .097 1.075 .001
Dependent Variable: Job satisfaction

H1: There is a significance relationship between recruitment & selection and employee’s job satis-
faction.

For the first hypothesis in Table 1 of correlation and Table, 3 of the coefficient two variables which
are Employee Job Satisfaction and Training and Development are correlated. As the statistics are r =
0.486, B= 0.465 and sig. = 0.000 means there is statistically significant relationship between Employee
230

Job Satisfaction and Training and Development. That concludes when any organization gives their
employees training and work for the development of their skills then employees become satisfied with
their jobs. So our first hypothesis is accepted. Dessler , (2007) concluded the same results.

H2: There is a significance relationship between training and development and employee’s job satis-
faction.

For the second hypothesis in Table 1 of correlation and Table, 3 of the coefficient, the two variables,
Employee Job Satisfaction and Compensation and Benefits are correlated. As the statistics are R =
0.340, B= 0.276 and sig. = 0.000 which means there is statistically significant and the considerable
relationship between Employee Job Satisfaction and Compensation and Benefits. That concludes that
fair compensation and benefits lead to employee job satisfaction, our second hypothesis is accepted,
Armstrong, (2001) concluded the same results.

H3: There is a significance relationship between compensation and benefits and employee’s job sat-
isfaction.

For the third hypothesis in Table 1 of the correlation and Table, 3 of the coefficient, two variables,
Employee Job Satisfaction and Recruitment and Selection are correlated. As the statistics are R =
0.497, B= 0.374 and sig = 0.001 means there is statistically significant and the considerable relation-
ship between Employee Job Satisfaction and Recruitment and Selection. This means that when any
organization does fair Recruitment and Selection this will lead towards Employee Job Satisfaction,
hence our third hypothesis is accepted, Ghebregiorgis and Karstan (2007) concluded the same results.

5. Discussion and conclusion

This study is designed to investigate the impact of Human Resource Management practices on the
satisfaction of the employees. There are many HR practices like recruitment and selection, training,
performance appraisal, career path, compensation, job definition etc. Only three practices (recruitment
and selection, training and development, compensation and benefits) were taken to understand the
impact on the job satisfaction of the employees. The findings of these questions showed that there was
a good relationship between the employee satisfaction and the HRM practices. The frequencies relat-
ing to the working environment and career development opportunities were showing the higher values.
So to improve the employee’s satisfaction towards their job and organization the management should
focus to improve the HRM practices and their qualities. It is concluded that recruitment and selection,
training and development, compensation and benefits play a vital role for the satisfaction of the em-
ployees.

5.1. Recommendation

In today’s environment, the human resources are as important as the financial assets and technologies,
etc. So organizations have to consider the human resource because these are very important for the
betterment of the organization. And as the results of this research shows that the better recruitment
and selection, career development opportunities and rewards are more important factors that affect the
job satisfaction of employees with the organization. They should be focused and try to improve them.
This study provides additional information for the management, the influence of HRM practices to-
ward employee’s job satisfaction. The result of the study is the determinant toward making more reli-
able decision and planning process. The approach of hiring staff into various position should be con-
sidered. The administrator should conduct a proper job analysis and evaluation of positions to be filled.
Human resources accepting applications when job vacancies have not been posted and it should be
reviewed. Effective recruitment and selection attract the right quality and quantity of people to further
 L. Prayogo et al. / Management Science Letters 7 (2017) 231

improve the system of MSI, modern technology should be utilized for strategically recruit and selec-
tion. Moreover, a recruitment and selection program should be implemented to enhance the capabili-
ties of employees. Training and development enhance the skills of the employees and make them
effective and efficient for their job and organization. Related training opportunity and development
policies make the employees loyal and beneficial for the organization. Compensation and benefits full
filled the financial needs of the employees and make them happy toward their jobs, this may lead to
stitch them with their organization and decrease turnover ratios.

5.2. Limitations and feature research direction

 There are many other factors which may affect the level of employee job satisfaction but due
to time constraint, other factors are not taken for research,
 The sample size of the study was also limited.
 In this study, no intervening or moderating variables are considered.
 This study considers only three human resource practices (recruitment and selection, training
and development, compensation and benefits) while other practices should also be used to get
more clear picture of the employee’s job satisfaction.
 The Sample consists of only the middle classes and only male respondent of fertilizer industry
while other employees can be part of the study.

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