How do HRM practices improve employee satisfaction?

Abstract

Using employer–employee data, this article studies the relationships between the bundle of human resource management (HRM) practices and job satisfaction. By simultaneously integrating employee HRM exposure and HRM perception, which remains scarce in the literature, the authors find that a high HRM exposure is not sufficient to improve job satisfaction when employee HRM perception is taken into account. Moreover, the study highlights that differences in the level of employee HRM perception, contrary to the level of exposure, influence the way employees react to their personal, job and workplace characteristics. The results suggest a role for managers to strengthen employee positive HRM perception to improve job satisfaction.