Human resource managment practices and worker´s job

saticfactionNathalie Recasens

Sayra SandovalRaymond LouÁngel Olguin

Maximilian Dohse

1Int. Human Resource Managment

Source

• Article:„Human resource managment practices and worker

´s job satisfaction“By

Alina Ileana PetrescuAnd

Rob Simmons

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Agenda

• Introduction• Data and methodology • The effect of pay practices• Union vs. non Union differences in impact of HRM

practices• The effect of pay inequality on job satisfaction• Conclusion• Discussion

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Introduction

• Purpose– Investigate the relationship between HRM practices and job

satisfaction

• Objectives– HRM practices substitute for unionization?– impact on the job satisfaction of union members/ non union

members– analyze the impact of the perceived pay inequality on worker´s

job satisfaction

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IntroductionTheories and Literature– 2 souces of satisfaction

• Intrinsic• Extrinsic

– Evolution of the theories

– Relationship betwenn pay and job satisfaction

– The wider literature about the effects of new pay practices

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Data and Methodology

• Datasets– CERS– WERS

• Collection Method– Interview– Self Completion Survey

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CERS vs. WERS

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Overall Satisfaction

7 Point Scale (84%)

CERS

Satisfaction with Pay

5 Point Scale (35.3%)

WERS

The Formula

• S=β1X + β2HRM + β3INEQUALITY + μ– X= Vector of worker, job, and firm characteristics– HRM= Human resource management– INEQUALITY= worker’s perception of the pay

distribution in within the firm

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Figure 1

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The effect of pay practices

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Pay based on tenure

• have a significant positive effect on job satisfaction, because this kind of payment was designed to maximize the effort from the firm’s perspective while minimizing the risk for the worker.

Pay related to individual performance

• Workers are more satisfied with new practices. This type of compensation system rewards to individual performance by comparing their achievement to goals set previously.

Team and company performance-related pay practices

• have no significant effect on overall job satisfaction.

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Where workers perceive their own pay to be relatively low this

reduce their overall job satisfaction.

Workers prefer systems when work can be visually assessed and

differentiated by co-workers.

Workers agree with the principle of relating effort to rewards but

suffer disutility from effort.

Union VS Non-union in the impact of HRM practices

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“The role of unions within the workplace has been replaced by the introduction of HRM

practices”

Job satisfaction and Satisfaction with pay is higher when

• The employee can express their views via meetings, independent of unionization.

• Skill development and training are encouraged by the firm.

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General ConclusionThe main effects on job

satisfaction in Areas with HRM practices are:

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The main effects on job satisfaction in

Areas with interaction of Union membership are:

Positive and statistically significant Negative or Insignificant.

Effect of pay inequality on job satisfaction

• Little evidence in literature

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Conclusion• Profits in satisfaction

– On-going learning– Job autonomy– Giving workers a „voice“

• Meetings with employees

– Little evidence on union/nonunion members– Pay structure

• Easy structure• Incentive systems• Improvment in information flow

– Assessment on performance• Losses in satisfaction

– Close supervision

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Discussion-Q1

• Do you think satisfaction is linked to pay in your own respective countries?

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Discussion-Q2

• Do you think the same factors that affect satisfaction in the research have the same effects on your personal job satisfaction?

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Discussion-Q3

• What is the role of unionization in your perspective countries?

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Thank you for your attention!

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