HHI

1. Human Resource Management Practices and Employees’ Satisfaction
Towards Private Banking Sector in Yemen:
Name/Muntaser Abdullah Abdulwasaa Almaamari
PHD Student, Management Science
College Dr. Babasaheb Ambedkar Marathwada University, Aurangabad, (MS)-India
Phone No.00917709995918
Email / almaamari2015@gmail.com
Home Address: plot-No.81, flat No.101,1st floor, Sunshine Residency. P&T Colony,
Suncity, Bandaged jagir, R.R Dist. T.S. Hyderabad.
Pincode:(500008)
______________________________________________________________
ABSTRACT: Dramatic developments in ICT, shifting labor mixes and
employee personal values, a knowledge-based economy evolving and global
rivalry have created tremendous challenges for organizations. Human resources
have been considered one of the most critical considerations in today's hyper-
competitive marketplace to deal effectively with the challenges. The goal of this
study is to gain insight into current HRM practices and their effect on employee
satisfaction in the private banking sector in Yemen. In order to carry out this
study, 100 bank employees are chosen from the selected banks and 88 of these
workers respond properly. The rate of response is 88%. The questionnaire
consists of nine HRM dimensions, such as recruitment and selection processes,
compensation packages, employment stability, career growth, education and
development, style of management, job design and assignments, incentive and
motivation and the work environment. A five-point Likert scale was used to
construct the questionnaire. In this study, several statistical methods are applied
to determine employee satisfaction, such as the Z-test, the mean and proportion
analysis. The study revealed that the employees are not happy with all the HRM
dimensions in the Yemen private banking sector. Most workers are unhappy with
the reward package and encouragement, career growth, training and development,
management style, work design and responsibilities. Thus, to increase the success
of the bank, these HRM dimensions should be increased in consistency.
Keywords: Human Resource Management; Employees Satisfaction; Private Bank;
Z-test.
1.INTRODUCTION: The dramatic advances in ICT, changing mixes and
workforce personal values, emergence of the knowledge economy and the
growing global competition have brought organizations tremendous challenges.
Human resources are one of the key factors in today's hypercompetitive markets
to deal with the challenges efficiently. In a development economic context such
as Yemen where capital training is pressing, where industrial and banking

2. development is dynamic and where there are frequent financial crises associated
with economic growth, the challenges posed by HRM are great. HRM and
exploring the potential for the use of HRM becomes, as a sequence, an
extremely important area for investigation and research. Beerdwell et al. (1984)
have defined HRM as a strategic approach to human resources management that
includes all decisions and actions of management that impact the relationship
between the organization and staff. The philosophy, politics, processes and
practices of the HRM within an organization is regarded by beardwell et al.
(2004). Senyucel's (2009) views HRM as a combination of human resources
management practices which recognizes employees as a property and aims to
build and maintain skilled and committed employees. For the attainment of
organizational objectives. HRM is a distinguishing approach to the management
of employment that seeks to achieve competitiveness through the strategic
development of a highly committed and capable employees through integrated
human resource management (HRM) and private banking practices in Yemen
(Storey, 2001). Measurement of human resources is about assessing the people's
contribution to an organization’s success and the term human capital describes
the contribution to the production of goods made by the human capacity and
knowledge. Services and services (Becker, 1993). These definitions show that
effective HRM methods are evident Factor inevitable to determine any
organization's growth and prospects. Human resources human resources most
valuable asset and sensitive production factor. In this dynamic environment,
professional employees need to be maintained by successful HRM activities in
the company. The operations of each company are assisted by the human
resources, which includes top administrators, managers, supervisors and other
employees. Any organization's overall success depends on how efficiently
human resources are used. Highlighting the importance of organisation workers,
Khera (1999) claimed that very few organisations today understand that their
highest value is for their employees as they are obsessed with Total Quality
Management (TQM) to keep ahead of competition. Because of the lack of
successful HRM procedures, workers' satisfaction with their company decreases
and eventually affects their organizational engagement.
2.OBJECTIVES OF THE STUDY:
The objectives of the study are to measure employees’ satisfaction on the
HRM practices ofprivate banking sector in Yemen. To that end, the specific
objectives are:
 To provide an overview and analysis of HRM practices;
 To focus the dimensions of HRM practices;
 To propose a test for measuring employee’s satisfaction by HRM practices;
 To examine weak points of HRM practices which affects employees’
satisfaction;
 To provide some suggestions for improving HRM practices and employee’s
satisfaction.

3. 3.LITERATURE REVIEW:
The management of human resources (HRM) is considered a key organizational
resource which contributes to the effectiveness of an organisation. It is an
important area that affects many people's behaviors such as the desire to leave, the
satisfaction of their employment and the commitment of the organisation (Lee &
Heard, 2000). Pfeffer (1998) proposed that soft and high-level human resources
management activities generate employee trust, and these practices include
empowerment of workers and involvement in decision-making; comprehensive
consultation on employee service work and performance; preparation for employee
skills and growth of employees; selective hiring; The empirical literature takes a
causal relation from HRM practice to organizational success through employee
responses according to Macky & Boxall (2007). Organizations that do not pay
equally in comparison with others can lose the compensation package for their
employees (Adams, 1965). The relationship between organisations and their
workers has reached a new age according to Lawler (2005). In a modern century,
people are the principal source of competitive advantage, and the manner in which
workers are handled defines their organizational success and sustainability. The
"human" element of the HRM is the relationship between employers and workers,
and the definition of high commitment work practices established by the human
relations movement (Walton, 1985). Recruitment and selection, socialization,
design, training, communication / engagement, career growth, performance
management, employee compensation and occupational protection are the best
practices in human resources (Huselid, 1995). When workers consider the
organisation, in particular in terms of availability and frequency of promotional
chances, adequacy of wages and good management, to be reasonable and
supportive, positive feelings of goodness will be established which will promote
reciprocal treatment by increasing their loyalty to the organisation and reducing
their turnover (Nasurdin et. al., 2001). The incentive and opportunity concentrated
human resource activities positively on affective commitment and on turnover
(Gardner et. al., 2007). The Wayne and. al. (1997) suggested higher levels of
affective organizational commitment to HRM practices which reflect the
organization's purpose to invest in employees (such as training and training
experiences). Personnel activities like wage, benefit and training contribute
negatively to revenue as they promote and "lock" workers into work (Lazear,
1986; Madrian, 1994; Gruber & Madrian, 1994). The unintentional turnover of
staffing (recruitments and selection processes) and personnel monitoring activities
was influenced by Shaw et al. (1968) (performance appraisal). DeCenzo and
Robbins (1996) feel that training for workers is becoming more and more relevant
as career growth and technological developments are affecting it. Bernardin and
Russel (1993) think that the training of workers and management in a company has
become increasingly common over the years as an HR tool. Nine HRMs were
described by Buck and Watson (2002). Practices like decentralization,
compensation and involvement, training, growth, safety at work, social interaction,
management style, communication and evaluation of success. Klaus et al. (2003)
say that workers can demonstrate greater dedication and achieve enhanced work
performance through better job assignment or design. Based on the literary review,
the study considered the following aspects of the HRM practices to affect the
employee's satisfaction with organisations such as recruiting processes and
selection systems, reward and motivation, employment protection, job growth,

4. education and development, management style, and work climate.
4.METHODOLOGY OF THE STUDY:
Both primary and secondary data are based on this article. Primary data were
collected through a standardized questionnaire that was personally administered to
the bank workers. The employee interview was performed using convenient
sample techniques. The study aimed at employees in the city of Dhaka who serve
as banker to various private banks. The study included only 20 private commercial
banks among different banks. 100 bank staff are drawn from the banks selected to
perform this research and the reaction rate of 88 staff is 88 percent. The survey
consists of a number of questions on nine dimensions, such as recruitment and
selection processes, compensation package, work security, career growth,
education and development, management style, nature of jobs and responsibilities.
The questionnaire was built on a five-point Likert scale, while one was unhappy, 2
was unhappy, 3 was satisfactory, 4 was mixed, 5 was highly met. However, certain
secondary data in the analysis were used. Secondary data from related papers,
books, journals, the internet, and others have been collected in the research. Some
statistical methods such as Z-test, mean and proportional analysis are used in this
study to assess employee satisfaction.
5.HYPOTHESES DEVELOPMENT:
On the basis of the various factors affecting on HRM practices, the following
hypotheses aredeveloped for the study: -
H1: Employees’ are satisfied on “Recruitment and
selection systems”.
H2: Employees’ are satisfied on “Compensation
package”.
H3: Employees’ are satisfied on “Job
security”.
H4: Employees’ are satisfied on
“Career growth”.
H5: Employees’ are satisfied on “Training and
development”.
H6: Employees’ are satisfied on “Management
style”.
H7: Employees’ are satisfied on “Job design and
responsibilities”.
H8: Employees’ are satisfied on “Reward and
motivation”.
H9: Employees’ are satisfied on “Working environment

5. 6.ANALYSIS AND FINDINGS:
6.1H1: Employees’ are satisfied on “Recruitment and selection systems”:
It is assumed from the hypothesis that employees are satisfied on the current
recruitment and selection systems of their bank i.e., the recruitment system is fair
and appropriate for the appointment to the job.
Table 1 shows that at 0.05 level of significance (two tailed test), table value (1.96)
is greater than
calculated value (Z = 0.55). So, the null hypothesis is accepted and hence, we
conclude that employees are satisfied on recruitment and selection systems of their
bank.
Table 1. Computation of Z value
Employees
Satisfaction
Dimensions
N Mean Standar
d
Deviatio
n
Standar
dError
Z Value
(Calculate
d
value)
Mea
n
Ran
k
Recruitment and Selection
Systems
88 3.06 0.99 0.11 0.55 01
Compensation Package 88 2.03 0.99 0.11 8.82 09
Job Security 88 3.03 1.17 0.12 0.25 02
Career Growth 88 2.13 0.98 0.10 8.7 07
Training and Development 88 2.30 1.03 0.11 6.36 06
Management Style 88 2.49 1.03 0.11 4.64 05
Job Design and
Responsibilities
88 2.54 1.00 0.11 4.18 04
Reward and Motivation 88 2.10 1.03 0.11 8.18 08
Working Environment 88 3.02 1.13 0.12 0.17 03
6.2 H2: "Compensation plan" is fulfilled by employees:
The assumption shows that the current wage, the method of increase in the
allocation and other compensation systems are met by the employees. Table 1
indicates that the table value (1.96) is less than the estimated value at 0.05 stage
(two tailed tests) (Z=8.82). The null hypothesis is therefore dismissed and we
conclude that workers are not happy with their bank's compensation package.
6.3 H3: "Health of work" for employees
This hypothesis suggests that workers are happy with their safety at work. Table 1
indicates that the table value (1.96) is higher than the estimated value at the 0.05
level of significance (two tailed tests). So, we accept the null hypothesis and then
conclude that workers are pleased with their bank's safety at work.
6.4 H4: "Career development" satisfies employees.
This hypothesis shows that workers have ample room to expand their careers.
Table 1 provides that the value (Z = 8.7) of the table is less than the value
measured at 0.05 (two tailed tests) amount (1.96). The null hypothesis is thus
dismissed, and therefore we conclude that employees are not happy with their
bank's career growth.
6.5 H5: "Learning and growth" workers are happy.
This hypothesis suggests that the bank provides a training and development
programmed and that workers are pleased with it. Table 1 indicates that the table

6. value (1.96) is less than the estimated value at a sense of 0.05 (two tailed tests)
(Z=6.36). Therefore, we deny the zero hypothesis and therefore infer that the
employees are not happy with their bank's training and growth.
6.6 H6: "Management style" workers are happy.
This theory suggests that the management style of workers and managers are
very versatile. Table 1 suggests that the value of table (1.96) is less than the
estimated value at 0.05 (two tailed tests) level (Z = 4.64). Therefore, we deny the
zero-thesis and therefore conclude that the management style of their bank does
not satisfy our employees.
6.7 H7: "Work design and obligations" is pleased with the workforce.
The presumption is that work is well structured and that workers are quickly done.
Employees are treated equally, are respected and are supervised overall by the
manager. Table 1 Table 1
Shows that the meaning amounts at 0.05 (two tailed tests) is below the value of the
table (1.96) (Z = 4.18). Therefore, we dismiss the zero hypothesis and therefore
infer that workers are not happy on their bank's work configuration and
transparency.
6.8H8 "Reward and motivation" satisfies workers.
The presumption implies that a variety of financial and non-financial awards and
incentive mechanisms are present in your bank. Table 1 indicates that the table
value (1.96) is less than the estimated value at 0.05 (two tailed tests) (Z =8.18).
Therefore, we deny the null hypothesis, and therefore conclude that the reward
and incentive of their banks do not satisfy employees.
6.9H9: The "working climate" satisfies employees
This hypothesis suggests that the physical working environment is extremely
rewarding in general. Table 1 indicates a value greater than the estimated value
(Z=0.17) of 0.05 (two tailed tests) in the table value (1.96). Table 1. Thus, we
support the null hypothesis, so we infer that the workers are pleased with their
bank's working climate.
The testing of the above demonstrate that workers in some areas of HRM
activities such as recruiting and selection processes (mean grade 1), workplace
safety (mean grade 02) and work environment have been fulfilled (mean rank-
03). The examination also indicates that workers are not employees Satisfied
with some factors such as task planning and management (mean grade 04), style
(mean 05), preparation (mean 06) and proficiency growth (mean 07) Motivation
and reward plan (mean rank-08) (mean rank-09). It is obvious, therefore, that
workers do not meet all dimensions equally. Table 2, which tests workers are
extremely pleased or unsatisfied, is also very straightforward.

7. Table 2. Percentage of employees on different levels of Satisfaction of HRM
dimensions
RSS1
CP2
JS3
CG4
TD5
MS6
JDR7
RM8
WE9
1 = Dissatisfied 7.95 32.95 9.09 30.68 22.73 13.64 11.36 31.82 9.09
2 = Some how
Satisfied
17.05 40.91 19.32 37.5 42.05 45.45 43.18 38.64 22.73
3 = Satisfied 43.18 19.32 39.77 22.73 22.73 25 29.55 20.45 36.36
4 = Moderately
Satisfied
25 3.41 22.73 6.82 7.95 10.23 11.36 5.68 20.45
5 = Highly
Satisfied
6.82 3.41 9.09 2.27 4.55 5.68 4.55 3.41 11.36
Totals 100 100 100 100 100 100 100 100 100
RSS1
= Recruitment and Selection
SystemsCP2
= Compensation
Package
JS3
= Job
Security CG4
=
Career Growth
TD5
= Training and
DevelopmentMS6
=
Management Style
JDR7
= Job Design and Responsibilities
RM8
= Reward and Motivation
WE9
= Working Environment
Table 2 illustrates the percentage of workers at various levels of HRM
Satisfaction. The table reveals that the highest 43.18% of workers are pleased
with recruiting processes, followed by 39.77% for job security, 36.36% for
workplaces, 29.5% on job preparation and accountability, 25% for management,
22.73% for career growth, training and development, 20.45% for compensation
and opportunity, and the low level of motivation for recruitment and selection.
Table 2 reveals that the highest 11.36% are highly satisfied with working
conditions and the lowest 2.27% are highly satisfied with job development. The
report also indicates that the maximum 32.95% of workers are unhappy with pay
package followed by the 31.82% for benefits and bonuses, 30.68% for job
growth, 22.73% for training and development, 13.64% for management, 11.36%
for job design, 9.09% for work safety and for the working environment and the
low level of employment. The study thus indicates that workers in their bank's
HRM dimensions are not completely satisfied. Thus, for the betterment of bank
success, the HRM dimensions should be improved.

8. 7.CONCLUSION AND RECOMMENDATIONS:
The study revealed the link between the happiness of employees and the
different aspects of HRM practice. In this study, nine key factors representing
most human resources management practices followed by various private banks
were considered. The study showed that the employees are not happy with any
HRM dimension exercised in the private banking sector in Yemen. A
compensation plan of benefits and bonuses, career growth, training and
development, management style, and role design and responsibilities are
unfulfilled in the majority of workers. It is evident that HRM practices have not
been completely developed in Yemen's private banking sector and it is urgent to
employ HR experts, consultants and researchers to form and establish new
directions to provide successful and productive human resource practices. For the
best HRM practices in the Yemen private banking sector, we recommend the
following: Based on their results, the bank should offer workers different financial
and non-financial benefits. That makes them more committed to their work and
will probably make them more happy.
 The economy in Yemen allows new technology to be imported to improve
HRM, but education is still a little bit sluggish, which encourages expatriates
to deal with this.
 Collaboration between management and employees should be established
because it is necessary for an organization to work efficiently and effectively.
 The workers should be awarded an attractive pay package.
 Administration should set a consistent career progression course.
Finally, in this document, the Bank should review current pay practices to provide
equal pay, to provide demanding and productive work and to promote constructive
collaborations to achieve good working conditions.
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