Impact of Human Resources Management Practice and Perceived Organizational Support on Job Satisfaction: Evidence from Yanbu Industrial City, KSA

By AlZalabani, Abdulmonem; Modi, Rajesh S. | IUP Journal of Organizational Behavior, July 2014 | Go to article overview

Impact of Human Resources Management Practice and Perceived Organizational Support on Job Satisfaction: Evidence from Yanbu Industrial City, KSA


AlZalabani, Abdulmonem, Modi, Rajesh S., IUP Journal of Organizational Behavior


Introduction

Human capital is the most important strategic resource for any organization. Retaining the best talent and keeping employees satisfied lead to strengthening of the corporate strategies and also to better organizations, dynamic work groups, sustainable survival and development in the increasingly competitive global environment.

It is neither easy to retain the best talent nor easy to keep them happy or satisfied. Many organizations in Saudi Arabia are still implementing old management approaches and practices. In fact, they still cannot differentiate between an HR department and a Personnel department (Tariq Al-Sulimani, 2006).

Human Resource Management Practice (HRMP) has changed dramaticallyduring the last two decades owing to globalization, liberalization, privatization and also the growing need to retain the human resource.

Many research studies have revealed that job satisfaction depends on the HRMP and Perceived Organizational Support (POS). The relationship between HRMP, such as sufficient opportunity fortraining and development, job profile, teamwork, recruitment and selection process and POS, like positive feedback, taking care of employees, recognizing the contribution of employees, etc., have been widely analyzed.

In order to study the impact of HRMP and POS in the context of Saudi Arabia, we have selected Yanbu Industrial City because Yanbu represents the majority of industries of the Kingdom of Saudi Arabia (KSA). It covers an area of 1,850 ha for industries and 2,749 ha for residents, and it is still growing. There are currently 33 primary and secondary petrochemical-based industries and 49 light and support industries in Yanbu. This industrial town is throbbing with commercial activities and exporting over 3 million barrels of petroleum per day. Yanbu has already proven its strategic value to the Kingdom by contributing SR77+B (US20.5B) to the Gross Domestic Product (GDP).

Literature Review and Formulation of Hypothesis

Human Resource Management Practice

HRMP refers to the policies and practices involved in carrying out the Human Resource (HR) aspects of a management position, including human resource planning, job analysis, recruitment, selection, orientation, compensation, performance appraisal, training and development and labor relations (Dessler, 2007).

According to Takeuchi and Takeuchi (2013), the effects of HRMP and employees' behavioral outcomes are neither direct nor unconditional. However, employees' evaluation oftheirfitand commitment to their organization play an important role in perceiving HRMP positively, but factors like employees' fit and their involvement in job do not create positive perception towards HRMP.

Dependent Variable

Job Satisfaction (JS)

The term 'job satisfaction' means everything from "making all aspects of a job easy for employees" to "making the job meaningful, significant and challenging" (Scheid, 2008). It has multifaceted dimensions and it cuts across the subjects like psychology, organizational behavior, sociology, etc.

A satisfied workforce can increase the productivity of an organization through less distraction which is caused by absenteeism or turnover, a few incidences of destructive behavior and low medical costs.

Job satisfaction is considered as a strong predictor of overall individual wellbeing and a good predictor of intentions or decisions of employees to leave a job (Gazioglu and Tansel, 2002). The positive impact on HRM activities and the organizational climate makes a significant contribution to job satisfaction (Nihat et al., 2010).

Independent Variables: HRMP

The present study selected the following crucial areas of HRMP and POS as independent variables.

Physical Working Condition

Interesting job makes the employees'attitude positive and favorable towards the job. Poor physical working condition is considered to be the hygiene factor which creates job dissatisfaction. …

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