Human Resources Management Practices and Job Satisfaction in Critical Economy: An Empirical Study of Private Banking Sector of Saudi Arabia

Human resources are considered to be a critical organizational resource that facilitates an organization to sustain its effectiveness and value. Banking sector in Saudi Arabia is facing furious competition, economic crisis and Saudization as far as human resources are concerned. In such a competitive business environment getting and retaining productive employees is complicated tasks when competitors are struggling for attract human resources from other organizations by providing attractive compensation and promotional plans. In order to retain productive employees it should be ensured that they are satisfied from the human resource practices prevailing in the concerned organization. The purpose of present study is to analyze and achieve a better understanding of the impact of human resource practices on job satisfaction among the employees of private sector banking in Saudi Arabia. The present study was conducted on 146 employees of private banking sector and the multiple linear regression models is applied to assess the influence of HRM practice such as training, performance appraisal, team work, employee participation and compensation on job satisfaction of the employees. The analytical results of the study revealed that training has no significant influence on job satisfaction whereas, other HRM practices like performance appraisal, team work, employee participation and compensation have positive and significant influence on the job satisfaction.