International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue XII, December 2022|ISSN 2454-6186

The Impact of Human Resource Management (HRM) Practices on Job Satisfaction: An Empirical Study on selected Small & Medium sized Enterprises in Bangladesh

 Jahir Rayhan
Lecturer, Department of Business Administration, Ishakha International University, Bangladesh.

Abstract: Human resource is known as an important part and parcel of an organization. In today’s world of wide spread industrialization and increasing demand on the organization to enhance the competitive position of workforce is a pervasive concern for employers and the employees too. Human Resource Management (HRM) function seeks to encapsulate and evaluate those factors exigently which is prevalent in the internal environment of organization affecting the degree of level of satisfaction and their commitment towards job. The aim of this paper is to study the impact of HR practices on job satisfaction in the context of small and medium sized manufacturing industry in Bangladesh. A total of 210 responses from 18 small and medium sized manufacturing firms were collected and analyzed objectively. It was found that HR practices have a significant association with job satisfaction. In addition, human resource planning were found to have positive impact on job satisfaction. It was also found that training and development has the greatest impact on job satisfaction. But, recruitment and selection, performance appraisals, compensation and rewards have very negligible impact on job satisfaction as their respective statistics are insignificant. Academicians, researchers, policy-makers, practitioners, students, local and foreign entrepreneurs of Bangladesh and other similar countries could benefit from this paper by exploring the association between HR practices and employee job satisfaction. The paper is divided into the following sections in order to fulfill the goal. The literature review and research gap are presented first, based on previous investigations. The research methods used in the study are then described. The analysis, results and discussions are reported in the paper’s third section. Finally, findings & recommendations with limitations, direction for the further study and conclusion are represented.

Key words: HRM, HR practices, job satisfaction, small & medium enterprises, Bangladesh.

I. INTRODUCTION

Employee work satisfaction is considered to be one of the key factors in an organization’s success. In organizational studies, there is a huge focus on job satisfaction. The purpose of the article is to evaluate how various human resource management strategies affect job satisfaction of the employees of SMEs in Bangladesh. The key components of job happiness in the small and medium enterprises in Bangladesh are also covered. Bangladesh’s national economy is mostly driven by the small and medium-sized company (SME) sector. Cottage, Micro, Small, and Medium-sized businesses make up the