The Influence Of Human Resource Policy On Job Satisfaction In Predicting Organizational Commitment

Abstract

Purpose: This research aims to explore the relationship among human resource policy, job satisfaction and organizational commitment through the perception of employees working in small and medium enterprises in Vietnam.
 
 Theoretical framework: The human resource functions and related distinct processes that help attract, develop, and retain a company's human resources. They involve employees and guide them to help carry out activities aimed at achieving organizational goals employees (Jahanian et al., 2012). Business leaders are always cautious when reviewing existing human resource policies and constantly improving to make employees satisfied with their jobs, thereby helping them improve their productivity and commitment to the organization. 
 
 Design/methodology/approach: The qualitative method is based on an overview of previous studies, the research team builds the first scale, then the questionnaire is sent to the experts and conducts a trial survey with 30 employees to control the survey, edit and complete the concepts of the questionnaire. For the quantitative research, data was collected using convenience sampling method from a total of 400 employees and managers who are working at SMEs in Viet Nam. The method of and Confirmatory Factor Analysis (CFA), Structural Equation Modeling (SEM) were carried out to measure the influence of latent variables on organizational commitment.
 
 Findings: The research results show that employees' perceptions of HR policies include selection and recruitment; training and improvement; evaluation of employees’ tasks; stability and promotion in work, remuneration and reward, and encouragement of participation and innovation. These HR policies have a direct positive impact on job satisfaction and commitment to the organization. In addition, job satisfaction has a significant positive effect on organizational commitment. Therefore, it is necessary to improve the implementation of HR policies to promote employee job satisfaction, which helps to increase commitment to the organization. 
 
 Research, Practical & Social implications: We recommend future research that expands on other components for a comprehensive assessment of HR policies. In addition, it is necessary to analyze in detail the components of organizational commitment such as affective commitment, Continuance commitment, Normative commitment.
 
 Originality/value: The results of standardized estimation of the parameters of the research model show that the relationship between the concepts in the formal research model is statistically significant (p<0.05). HR policies have been shown to have the most positive impact on job satisfaction in SMEs.