An insight into the influence of HRM practices on employees’ satisfaction in the manufacturing company

The manufacturing industry has been and continues to be the bedrock of the Malaysian economy. A business that integrates a harmonious employer-employee relationship leads to an ideal path, driving a successful and profitable venture. Principal role of a company’s management is to develop and manage the human capital element, taking care of employees’ welfare, considering their resourcefulness in terms of knowledge and skills for effectively contributing to the organisational’s objectives. There are several attributes that link and influence employees with job satisfaction. The objective of this research study is to examine the link and influence of human resource management (HRM) practices, such as training, compensation, safety & health, and performance appraisal, on job satisfaction among employees in a manufacturing company located in Kulim, Kedah. A total of 328 employee-respondents took part in this research study and the questionnaires were distributed through their HRM office. Data collection was received online with the aid of Google forms. The research analyses were performed by using Statistical Package for Social Sciences (SPSS), version 22. Results indicated that performance appraisal created the most significant influence on employees’ satisfaction (β=0.278, t=3.668, p<0.05), followed by compensation (β=0.229, t=3.741, p=0.000), and lastly safety & health (β=0.180, t=2.756, p<0.05). We did not observe any significant influence with regards to the link between training and employee satisfaction (β=0.089, t=1.431, p>0.05). Finally, in the conclusion section, few suggestions to increase the level of employees’ satisfaction based on this study have been highlighted.