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

Abstract

This study applied a theoretical framework based on expectancy anddiscrepancy theories to examine how Human Resource Compensationfunction, practiced through the Hard and Soft management variants,might influence employee Job Satisfaction. Samples of 299 employeesfrom private work organisations in Tanzania were studied. Therelationship between the Human Resource Compensation functionthrough the Hard and Soft management variants were analysed byusing Structural Equation Modelling with AMOS version 7.0. It wasconcluded 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.