Employee Satisfaction and Performance of E-HRM System in Malaysia Banking Sector

The rapid development of the Internet and information and communication technology has enhanced the use of the Electronic Human Resource Management (E-HRM) system which alters the human resource functions and affects employee satisfaction and job performance. Thus, this research was aims to identify the level of satisfaction and job performance of the employee towards the E-HRM system and determine the relationship between employee satisfaction and employee job performance towards the E-HRM system. The research was conducted at Islamic banks located in Batu Pahat, Johor. Moreover, the UTAUT model and Viswesvaran model were used to measure employee satisfaction and employee job performance correspondingly. A quantitative research method was applied to collect the data from the respondents through an online survey questionnaire and a stratified sampling method was employed. The number of employees was 76 from different Islamic banks with different positions had become the respondents in this study. Descriptive statistics analysis and Spearman correlation were used to analyze the data to achieve the objectives. The main finding of this research showed that employee satisfaction and job performance were at a high and moderate level and there is a significant, positive, and strong relationship between the E-HRM system and employee satisfaction as well as employee job performance which is 0.695 and 0.642 respectively. The findings of this study help to aware of the human resources management of banking industries to provide appropriate training, information, or instruction to their employees before the E-HRM system had been implemented.