Hard and Soft Human Resource Management Compensation Practices on Employee Job Satisfaction

Abstract

This study applied a theoretical framework based on expectancy and discrepancy theories to examine how Human Resource Compensation function, practiced through the Hard and Soft management variants, might influence employee Job Satisfaction. Samples of 299 employees from private work organisations in Tanzania were studied. The relationship between the Human Resource Compensation function through the Hard and Soft management variants were analysed by using Structural Equation Modelling with AMOS version 7.0. It was concluded that the Soft Human Resource Management (HRM)Compensation practice has a positive relationship with employee JobSatisfaction attitude and the Hard HRM Compensation practice hasa negative relationship with employee Job Satisfaction attitude.