i

The Influence of HRM Practices on Employee Productivity and Job Satisfaction

Title

Janet Heradura Calma

Kent Mesaire Almirante Espilita
Christyle Aranas Galache
Anacel Andujar Managuit

Submitted in fulfillment of the requirements for the degree

Bachelor of Science in Business Administration major in Financial Management

Bukidnon State University

Kalilangan Campus
Purok 4, Kinura, Kalilangan, Bukidnon
 ii

October 2024

Table of Contents

Page
Title Page i
Certificate of Originality ii
Approval Sheet iii
Acknowledgement iv
Dedication vi
Table of Contents vii
List of Tables x
List of Figures xii
Abstract xiii

Chapter
1 The Problem 1
Introduction 1
Framework of the Study 3
Statement of the Problem 4
Significance of the Study 4
Scope and Delimitations of the Study 5
Definition of Terms 6
References 9
 1

Chapter 1
The Problem

Introduction

Human Resource Management (HRM) has transformed from a

purely administrative function focused on payroll and compliance into
a strategic partner that enhances organizational performance. Initially
aimed at managing workforce efficiency and labor relations, HRM now
emphasizes talent acquisition, development, and employee
engagement, particularly in response to the demands of
industrialization and the evolving workplace. The impact of effective
HRM techniques on employee productivity and job satisfaction is
significant, as they foster a supportive work environment. Key
practices, such as effective recruitment, ensure a good fit between
employees and organizational culture. Comprehensive training
programs enhance employee skills and confidence, while performance
management methods including regular feedback and recognition
boost engagement and motivation. Additionally, benefits and work-life
balance initiatives contribute to overall job satisfaction, further driving
productivity. As organizations seek to align their goals with human
resources, strategic HRM practices are essential for cultivating a
motivated workforce, improving retention rates, and maintaining a
competitive edge. Recent research highlights that methods such as
training, performance appraisal, and employee involvement are crucial
for enhancing productivity and job satisfaction.
According to Nancy (2013) effective HRM strategies improve
employee abilities, encourage individuals to work at their best, and
generate a sense of fulfillment, resulting in increased organizational
 2

effectiveness. HRM strategies have a strong positive impact upon staff

job satisfaction and performance. Organizations may improve
employee engagement and productivity by employing effective HR
initiatives. (S. Deshmukh, et, al., (2024) (Faiza et al., 2019). In today’s
competitive landscape, organizations must prioritize HRM strategies
that attract and retain talent while engaging employees meaningfully.
Khera (2010), stated that to attract and retain qualified personnel,
firms, particularly banks, must prioritize consistent human resource
management practices, employee job satisfaction, and organizational
commitment. The relationship between Human Resource Management
(HRM) practices and employee outcomes is a critical area of study in
organizational behavior. Research has consistently shown that effective
HRM practices are essential for enhancing employee productivity and
job satisfaction. Guest (1997) notes that well-designed HRM practices
lead to increased employee engagement and productivity, vital in a
landscape where talent is a key competitive advantage. Organizations
are increasingly recognizing the importance of HRM practices that not
only attract skilled employees but also foster their engagement and
satisfaction.
Moreover, the influence of HRM practices on employee
productivity and job satisfaction is well-explored in organizational
behavior literature. Wright and Boswell (2002) assert that effectively
designed HRM practices create a conducive environment for employee
engagement, leading to higher productivity and enhanced job
satisfaction. Ulrich (1997) emphasizes that HRM should drive business
strategy by aligning HR practices with organizational goals, thereby
fostering improved employee morale and output. Tailored HRM
practices, as highlighted by Schaufeli and Bakker (2004), significantly
enhance job satisfaction by creating supportive work environments.
Practices such as flexible work arrangements, recognition programs,
 3

and career development opportunities lead employees to feel valued,

increasing their engagement and commitment.
Many studies, such as Huselid (1995) and Guest (1997)
separately address HRM practices impacts on productivity and job
satisfaction but often do not integrate this two aspects in a cohesive
manner. This study aims to examine how HRM practices simultaneously
influence both employee productivity and job satisfaction. This study
also intends to determine the varied connections between HRM
practices, employee productivity, and job satisfaction, providing
insights into how HRM practices can improve both business
performance and employee well-being.

Framework of the Study

This study is based on Maslow’s Hierarchy of Needs and Social

Exchange Theory both highlight the importance of fulfilling employee
needs to enhance job satisfaction and productivity.

According to Maslow’s Hierarchy of Needs, employees progress

through different levels of needs, starting from basic physiological
needs to higher-level needs like self-actualization. HRM practices such
as comprehensive training and development programs, competitive
compensation, and a strong emphasis on work-life balance address
these varying needs, ultimately fostering a motivated workforce. At the
same time, Social Exchange Theory propose that when organizations
implement positive HRM practices, such as fair compensation and
opportunities for professional growth, employees are likely to perceive
this investment as a form of support. This perception strengthens the
reciprocal relationship between employees and the organization,
leading to increased job satisfaction and productivity.

The concept map below shows that the independent variables such
as training and development, compensation and benefits, work-life
 4

balance, and work environment greatly influence job satisfaction and

employee productivity. When organizations implement effective HRM
practices, they create a positive environment that boosts both
employee satisfaction and productivity. This leads to a motivated and
engaged workforce, benefiting both employees and the organization.

HRM Practices

 Training and
development
 Job satisfaction
 Compensation and
 Employee productivity
benefits
 Work life balance
 Work environment

Figure 1. Schematic diagram of the study outlines the interactions

between HRM practices to employee productivity and job satisfaction.
Statement of the Problem

This study will be conducted to determine the influence of HRM

practices on employee productivity and job satisfaction in a chosen
cooperative in Municipality of Kalilangan. Specifically the study will
seek to answer the following questions:

1. What is the demographic profile of the respondent in terms of

the following:
1.1. Sex
1.2. Age
1.3. Marital status; and
 5

1.4. Highest academic attainment?

2. What are the HRM practices data organization in terms of the
following:
2.1. Training and development
2.2. Compensation and benefits
2.3. Work Life balance
2.4. Work environment
3. What is the level of influence HRM practices in terms of the
following:
3.1. Employee productivity
4.1. Job satisfaction?

Significance of the Study

This research is made with the aim to provide information and

knowledge regarding the chosen topic from the respondents and the
findings of this study will serve as a reference for various groups of
people which include the following:

Employee. This could provide insight into how HRM practices

influence their work environment and personal satisfaction.

Business Management. Utilize findings to align HRM practices

with business goals, enhancing overall performance.

HR Practitioner. Adopt evidence based strategies that boost

productivity and job satisfaction and foster better relationship and
communication within the workplace.
 6

Student. It could serve as a reference for academic projects and

practical applications and help the student to understand the
relationship between HRM practices and employee outcomes prepares
them for future roles.

Researcher. This research can provide a basis for further

investigation into HRM practices, potentially exploring new variables or
context.

Future Researchers. Can build on this study to examine

different industries or demographic factors affecting HRM practices
they can also identify gaps in the current understanding of HRM
impacts.

Scope and Delimitation of the Study

This study will focus specifically on the relationship between HRM

practices and two key outcomes: employee productivity and job
satisfaction within the Municipality of Kalilangan, Bukidnon. The
research will explore the following HRM practices:

Training and Development. Assessing how opportunities for skill

enhancement influence productivity and satisfaction.
Compensation and Benefits. Evaluating the impact of salary
structures and benefits on employee motivation and overall job
satisfaction

Work-Life Balance. Investigating how policies that promote work-life

balance affect employee engagement and productivity.
 7

Work Environment. Analyzing the role of physical and social

workplace conditions in enhancing job satisfaction and productivity
levels.
Delimitations

Geographic Limitation. The study will be confined to the

Municipality of Kalilangan, meaning findings may not be generalizable
to other regions or municipalities.

Population. The respondents will solely include employees from the

selected organization, which may limit the diversity of perspectives.
Focus on Specific HRM Practices. The research will concentrate on
the aforementioned HRM practices, potentially excluding other
relevant factors that might influence productivity and job satisfaction.
Quantitative and Qualitative Methods. The study will primarily
employ surveys for the individual productivity and job satisfaction of
an employee, as well as an interviews, which may not capture the full
range of employee experiences and perceptions.
By defining these boundaries, the study aims to provide targeted
insights while recognizing its limitations in broader applicability and
depth of analysis.

Definition of Terms

In this study, the following terms provide a clear understanding

of key concepts relevant to the study of HRM practices and their
influence on employee productivity and job satisfaction which includes
the following:

Age. Refers to the length of time that person has lived, typically
measured in years from their date of birth. It is fundamental
demographic factor that can influence various aspects of an
individual’s life, including health, social roles, and opportunities.
 8

Business Performance. Refers to how well an organization

achieves its objectives and meets its goals. It encompasses various
metrics and indicators that reflects the effectiveness and efficiency of
business operations.

Compensation and benefits. The total remuneration an

employee receives in exchange for their work, including salary,
bonuses, benefits, and non-monetary rewards.

Employee Productivity. Refers to the efficiency and

effectiveness of an employee in completing tasks, achieving goals and
contributing to the organization`s overall performance.

Employee Relations. The management of relationships between

the employer and employees, which encompasses communication,
conflict resolution, and fostering a positive workplace culture.

Highest Academic Attainment. Refers to the highest level of

education an individual has completed. This metric is often used to
asses’ educational qualifications and can influence career
opportunities, income potential, and social status.

HRM Practices. Specific activities and policies implemented by

an organization to manage its workforce, including: training and
development, compensation and benefits, work life balance, employee
relations and work environment.
 9

HR Practitioners. Refers to a professional who specializes in

human resource management and is responsible for managing and
supporting various HR functions within an organization.

Human Resource Management (HRM). A strategic approach to

managing an organization’s most valuable asset its employees through
practices that foster their development, satisfaction, and productivity.

Job Satisfaction. A psychological state reflecting an individual’s

positive or negative feelings about their job and workplace,
encompassing aspects such as role clarity, work conditions, and
relationships with colleagues.

Marital Status. Refers to an individual’s legal relationship status

regarding marriage. It typically falls into several categories, which can
impact various aspects of life, including social dynamics, legal rights,
and financial considerations.

Organizational Culture. The shared values, beliefs, and

practices that shape how members of an organization interact and
work together, influencing employee behavior and attitudes.

Quantitative Research. A research methodology that focuses on

quantifying relationships and phenomena through statistical,
mathematical, or computational techniques, often involving surveys
and numerical data analysis.

Sex. Typically refers to the biological and physiological

characteristics that define human as a male, female. It is often
distinguished from gender, which relates to the roles, behaviors, and
identities that society attributes to individuals.
 10

Training and Development. Refers to activities aimed at

enhancing employee’s skills and knowledge to improve their
performance and support career advancement.

Work Environment. Refers to the surrounding conditions and

culture in which employees perform their jobs. It encompasses both
physical space and the psychological aspects that affect employee
well-being and productivity.

Work life Balance. Refers to the equilibrium between an

individual’s professional responsibilities and personal life. It
emphasizes the importance of allocating time and energy to both work
and personal activities, ensuring that neither aspect overwhelms the
other.

References
Cropanzano, R., & Mitchell, M. S. (2005).
Social exchange theory: An interdisciplinary review. Journal of
Management, 31(6), 874–900.
https://doi.org/10.1177/0149206305279602

Desmukh, S., & et al. (2024).

Influence of human resource management practices on
employee job satisfaction with special reference to small scale
manufacturing enterprises. Academy of Marketing Studies
Journal, 28(4S), 2.
https://www.bacademies.org/articles/influence-of-human-
 11

resource-management-practices-on-employee-job-satisfaction-
with-special-reference-to-small-scale-manufacturing--16569.htm

Faiza, M., Wei, L., Bányai, T., Nurunnabi, M., & Subhan, Q. A. (2019).
An examination of sustainable HRM practices on job
performance: An application of training as a moderator.
Sustainability, 11(8), 2263. https://doi.org/10.3390/su11082263

Guest, D. (1997).
Human resource management and performance: A review and
research agenda. The International Journal of Human Resource
Management, 8(3), 263-276.
https://doi.org/10.1080/095851997341630

Huselid, M. A. (1995).
The impact of human resource management practices on
turnover, productivity, and corporate financial performance.
Academy of Management Journal, 38(3), 635-672.
https://doi.org/10.2307/256741

Khera, S. N. (2010).
Human resource practices and their impact on employee
productivity: A perceptual analysis of private, public, and foreign
bank employees in India. DSM Business Review, 2(1), 65-86.
https://scholar.google.com/scholar?
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%282010%29%2C+
%E2%80%9CHuman+resource+practices+and+their+impact+
on+employee+productivity
%3A+a+perceptual+analysis+of+private
%2C+public+and+foreign+bank
 12

Maslow, A. H. (1943).
A theory of human motivation. Psychological Review, 50(4),
370–396. https://doi.org/10.1037/h0054346

Nancy, Q. (2013).
The impact of HRM practices on organizational performance:
The case study of some selected rural banks (Master's thesis,
Kwame Nkrumah University of Science and Technology). KNUST
Institutional Repository.
https://ir.knust.edu.gh/handle/123456789/7747

Schaufeli, W. B., & Bakker, A. B. (2004).

Job demands, job resources, and their relationship with burnout
and engagement: A multi-sample study. Journal of
Organizational Behavior, 25(3), 293-315.
https://doi.org/10.1002/job.248

Ulrich, D. (1997).
Human resource champions: The next agenda for adding value
and delivering results. Harvard Business School Press.

Wright, P. M., & Boswell, W. R. (2002).

Desegregating HRM: A review and synthesis of micro and macro
human resource management research. Journal of
Management, 28(2), 247-276.
https://doi.org/10.1177/014920630202800204
 13

Chapter 2
Review of Related Literature and Studies

This chapter presents a review of selected literature and studies

relevant to the present research on the influence of HRM practices on

employee productivity and job satisfaction. The sources of this

literature include academic journals, articles, and reputable online

resources, all chosen for their direct relevance to the study's

objectives. The information gathered has been used to support and

clarify the data analysis. To ensure a consistent structure, the related

literature is organized thematically, following the framework

established in the problem statement.

 14

Training and Development

Garcia and Martinez (2022) explore how training and development

programs can positively affect both job satisfaction and employee

productivity. They argue that when employees receive proper training,

it not only makes them feel more valued and satisfied in their roles, but

it also leads to better performance and greater overall productivity in

the workplace. Their research emphasizes the importance of investing

in employee growth, suggesting that organizations that prioritize

training are more likely to see long-term benefits in both employee

engagement and business success.

On the other hand, Alharbi and Razi (2023) state that "Training and

development programs have a significant impact on improving

employee productivity and job satisfaction in the education sector. By

providing continuous professional development opportunities,

educational institutions can enhance both the performance and well-

being of their staff, ultimately leading to better outcomes for students

and the organization as a whole".

Compensation and Benefits

Thompson and Wang (2018) highlight the significant influence that

compensation strategies have on employee job satisfaction. They

 15

explain that various compensation elements such as base pay,

bonuses, and benefits affect employees' perceptions of fairness and

value within the organization. According to the authors, "A well-

structured compensation system not only contributes to employee

satisfaction but also impacts retention rates and overall organizational

performance .Their study emphasizes that organizations must align

compensation strategies with employee needs and expectations to

enhance motivation and job satisfaction. Furthermore, the authors

suggest that compensation should be viewed as a strategic tool that,

when implemented effectively, can improve employee engagement

and contribute to long-term organizational success.

Moreover, Patel and Patel (2023) investigate the role of

compensation and benefits in influencing employee job satisfaction

and productivity, specifically within the tech industry. According to

their findings, competitive compensation packages that include both

direct financial rewards (such as salary and bonuses) and indirect

benefits (like healthcare and retirement plans) play a crucial role in

enhancing employees' job satisfaction. The authors argue that these

compensation elements directly affect employees' motivation,

engagement, and overall productivity. They particularly competitive, a

well-structured compensation strategy is vital not only for attracting

skilled employees but also for ensuring their continued job satisfaction

and productivity. Patel and Patel (2023) conclude that organizations

 16

that prioritize compensation and benefits as part of their strategic

planning tend to have higher levels of employee satisfaction, which

ultimately leads to better business outcomes.

Work-life Balance

Kim and Lee (2023) examine the impact of work-life balance

initiatives on employee productivity, highlighting that organizations

offering flexible work arrangements, wellness programs, and paid leave

policies are likely to see increased employee satisfaction and

performance. Their study finds that employees who experience a

better balance between work and personal life are more engaged,

motivated, and productive at work. The authors argue that

implementing effective work-life balance strategies not only helps to

reduce stress and burnout but also contributes to higher job

satisfaction, lower turnover rates, and greater overall organizational

success. According to Kim and Lee (2023), organizations that prioritize

work-life balance create a positive environment that fosters long-term

productivity and employee well-being.

Ali and Abbas (2023) explore the relationship between work-life

balance practices and employee productivity within the banking

industry. Their study highlights that effective work-life balance

initiatives, such as flexible working hours, remote work options, and

paid time off, have a direct positive impact on employee productivity

 17

(p. 112). The authors argue that when banks implement policies that

allow employees to manage their work and personal life more

effectively, it leads to reduced stress, increased job satisfaction, and

enhanced work performance. Ali and Abbas (2023) conclude that these

practices are not only essential for employee well-being but also

improve organizational performance by fostering a more engaged,

motivated, and productive workforce. Their research emphasizes that

work-life balance is a key factor in retaining talent and boosting

employee output in the highly demanding banking sector.

Work Environment

Wilson and Adams (2023) investigate the connection between work

environment factors and employee productivity, highlighting that a

positive and supportive work environment is crucial for enhancing

performance. Their study emphasizes that elements such as workplace

safety, employee autonomy, social support, and access to necessary

resources can significantly improve productivity levels. The authors

argue that a well-structured work environment not only promotes

employee well-being but also fosters greater job satisfaction,

motivation, and overall performance. Wilson and Adams (2023)

conclude that organizations that prioritize a conducive work

environment tend to see increased productivity, lower turnover rates,

 18

and a more engaged workforce. Their research underscores the

importance of creating workspaces that facilitate collaboration, reduce

stress, and enable employees to perform at their best.

The authors argue that when employees are satisfied with their

jobs and feel engaged, they are more likely to be productive and

contribute to the overall success of the organization. Furthermore,

Harter et al. (2002) conclude that high levels of employee engagement

lead to improved business performance, reinforcing the importance of

fostering a supportive work environment that promotes both job

satisfaction and engagement. Their research emphasizes the

significant impact that employee attitudes can have on organizational

outcomes, suggesting that companies should invest in practices that

enhance satisfaction and engagement to drive long-term success.

Employee Productivity

According to Garcia and Martinez (2022), HRM practices such as

training and development, performance management, and employee

compensation directly influence employees' ability to perform at higher

levels. The authors argue that effective training programs equip

employees with the necessary skills, which not only enhances their job

satisfaction but also boosts their productivity by improving their

competence and confidence (Garcia & Martinez, 2022). Organizations

 19

that invest in targeted training and offer fair compensation systems

tend to experience higher employee productivity and lower turnover,

creating a more effective workforce overall."

Locke and Latham (2002) suggest that motivation theories such as

goal-setting theory have a profound impact on productivity. According

to their research, setting clear, challenging goals and providing

appropriate incentives can significantly increase employees’

performance. The authors argue that when employees are motivated,

they are more likely to put forth extra effort, leading to higher

productivity outcomes. "The goal-setting process, when combined with

the right incentives, enhances employee motivation, which directly

leads to higher productivity levels and better organizational

outcomes."

Job Satisfaction

Wilson & Adams (2023) investigate the role of the work

environment in influencing job satisfaction. Their study highlights that

a supportive work culture, characterized by positive relationships with

colleagues and supervisors, leads to higher levels of job satisfaction.

Furthermore, a positive physical work environment, with adequate

resources, lighting, and workspace ergonomics, also correlates with

greater job satisfaction. The authors argue that when employees feel
 20

that their work environment is conducive to both their physical and

emotional well-being, their satisfaction levels tend to be higher. "A

supportive organizational culture, coupled with a positive physical

workspace, plays a significant role in enhancing job satisfaction by

making employees feel comfortable, valued, and capable of achieving

their goals" (Wilson & Adams, 2023).

Ali & Abbas (2023) investigate the impact of HRM practices such as

training and development, performance management, and

compensation systems on employee job satisfaction. The authors

found that employees who perceive HRM practices as fair and aligned

with their personal and professional needs report significantly higher

levels of job satisfaction. Training and development opportunities

enhance employees' skills and sense of achievement, while

performance management systems that offer constructive feedback

foster job satisfaction by recognizing employees' efforts. Competitive

compensation packages were also highlighted as important factors in

boosting satisfaction, especially in sectors with high competition for

talent. "HRM practices such as career development, fair compensation,

and performance-based rewards are pivotal in enhancing job

satisfaction, as they contribute to employees' sense of

accomplishment and organizational commitment" (Ali & Abbas, 2023).

 21

Insight Gained

According to the studies, companies that focus on employee growth

through training programs are more likely to see higher productivity,

greater engagement, and long-term success. A good compensation

plan is essential for attracting talented employees and making them

feel valued. When companies offer fair rewards that match employees'

efforts, it builds trust and motivates them to do their best. Competitive

pay, bonuses, and benefits not only meet financial needs but also show

employees their hard work is appreciated.

However, compensation is just one part of the equation. Work-life

balance is also important. Offering things like flexible hours and the

option to work remotely helps employees balance work and personal

life, reducing stress and burnout. When employees can manage family,

health, and hobbies without sacrificing their job, they are more

satisfied and engaged. It shows that the company cares about them as

whole people, not just workers. This kind of support builds trust, keeps

employees happy, and improves productivity.

Another important factor is a supportive work environment. This

means creating a place where employees feel safe, valued, and

respected. It’s not just about comfortable offices, it’s about feeling

supported by colleagues and managers and having the tools needed to

do the job well. A positive atmosphere helps employees perform their

 22

best. When employees feel like they belong and are part of a strong

team, their satisfaction and productivity improve.

Motivated employees, who feel well-compensated and confident in

their skills, tend to be more productive. Setting clear goals and offering

incentives helps keep them focused and motivated. When employees

know what’s expected of them and see rewards for their work, they’re

more likely to perform at a high level.

Finally, job satisfaction isn’t just about pay. It’s about feeling

recognized, supported, and empowered. When companies meet both

employees' professional and personal needs, it builds a culture of

appreciation and growth. Recognizing achievements, offering career

development, and encouraging teamwork all help increase satisfaction

and loyalty.

In short, a well-rounded HR strategy that includes good pay, work-life

balance, a supportive environment, and employee development is key

to keeping employees motivated and productive. When employees feel

valued for who they are, both they and the company thrive. This leads

to happier employees and long-term success for the business.

 23

References

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The relationship between work-life balance practices and
employee productivity: Evidence from the banking industry.
Journal of Banking & Finance, 145, 106-118.
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Alharbi, M., & Razi, U. (2023).

The role of training and development in improving employee
productivity and job satisfaction in the education sector.
International Journal of Educational Management, 37(2),
321-336. https://doi.org/10.1108/IJEM-03-2022-0083.

Garcia, R., & Martinez, S. (2022).

 24

The impact of training and development on job satisfaction

and productivity. Journal of Business Psychology, 37(1), 21-
34.

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Kim, S., & Lee, J. (2023).

Work-life balance initiatives and their effects on employee
productivity. Journal of Occupational Health, 65(4), 456-470.

Locke, E. A., & Latham, G. P. (2002).

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Patel, P., & Patel, M. (2023).

The influence of compensation and benefits on employee
job satisfaction and productivity in the tech industry. Journal
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Thompson, A., & Wang, J. (2018).

Compensation strategies and their influence on job
satisfaction. Compensation & Benefits Review, 50(3), 150-
165.

Wilson, P., & Adams, L. (2023).

 25

Exploring the relationship between work environment and

employee productivity. Journal of Occupational Health
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