Impact of HRM Practices on Job Satisfaction of Employees in Serbian Banking Sector

Research Question: The study aims to identify the level of effectiveness in Human Resource Management (HRM) and its impact on employees’ satisfaction in the banking sector of Serbia. Motivation:The aim of this research is to measure the satisfaction of employees in the banking sector of Serbia. In addition to the overall goal of this study, it is necessary to list some specific objectives: ​​to provide human resource management (HRM) analysis, to focus on the main dimensions of HRM in practice, to present a test for measuring employee satisfaction in practice, to identify weaknesses in management that affect employee satisfaction and to propose measures to improve employee satisfaction and increase motivation. The research attempts to point out the basic driving factors for better work and effects, as common motives for all workers, such as salary, job interest, the opportunity of further progress, the degree of autonomy in the performance of tasks, and the possibility of personal affirmation. The challenge that puts the management of human resources and its application into practice becomes a very relevant field of inquiry. It is important to know the answer to the research question in order to arrive at a response to whether or not to comply with Pareto optimum: “When we know where and why we are headed, little things can point us to the right direction” (Debreu, 1954). The novelty in the study is that some aspects (career improvement and job security) bring employees a greater degree of satisfaction, while others (salary and business climate) are rated as bringing significantly lower levels of satisfaction. The work is based on the applied Kruger study (Kruger et al., 2008). It is used for research, because in this specific case it makes it possible to collect the results of mortgage execution on a sample of employees of 10 banks, whose results would be useful at the level of the banking sector in Serbia. Idea: The basic idea of this paper is to evaluate different levels of employee satisfaction with different dimensions of quality of work in banking institutions. The study involves analyzing the level of satisfaction from the aspect of selection and selection of employees, job security, employee salaries, career advancement, professional training and professional development, management style, job responsibilities, awards and recognitions and, finally, business climate as key dependent variables. The key independent variables are gender, age, education and length of service, as demographic characteristics of the respondents. Data: The analysis was carried out through a questionnaire sent to the employees of the bank. The target population is employed in the banking sector on the territory of Serbia. Among the different banks, this study takes into account ten banks. 93 questionnaires were available for statistical analysis. Tools: Statistical analysis of all collected data (Z-test, correlation analysis) were used to draw conclusions about relationships between variables, specifically what employees start  in the organization. With the help of the Pierson correlation coefficient, statistical significance is determined, which shows motivational effects in the behavior of employees. Findings: The findings revealed a high level of effectiveness of all HRM practices. A strong positive relationship has been identified between the effectiveness of HRM and employees’ satisfaction. The study recommended improving financial compensation system of banks, which would positively increase the level of employees’ satisfaction. Contribution: This  paper  expands  the existing  research  related  to  the  developing employee motivation in the banking sector and formulates practical suggestions for increasing motivation and avoiding its relativization. Promoting transparency and publicity and an effective system of rewards, compensation and salaries according to merit and contribution to work tasks should be promoted. It is possible to achieve a business climate by respecting the individuality and dignity of each employee, and thus to build trust among employees and loyalty to the institution.