The perception of HRM, trust between employees, and organizational satisfaction in public institutions: The case of Korea

Abstract

This study examined the factors influencing the organizational satisfaction of employees in public institutions. In the case of public institutions that must provide stable public services on behalf of the government, the organizational satisfaction of employees will be more important. In this regard, this study includes the perception of HRM and trust between employees as affecting factors, and the perception of HRM consisted of sub-components such as fairness of evaluation and excellence of education and training. Moreover, this study considered trust between employees as a mediator. In more specific, online surveys were conducted with 705 employees of public institutions in Korea, and the Structural Equation Model (SEM) was performed. The results indicated that the perception of HRM affected organizational satisfaction directly or indirectly. In addition, trust between employees mediated between all sub-components of perception of HRM and organizational satisfaction. Particularly, trust between employees has been verified to increase the influence of the perception HRM. Meanwhile, in the case of Korea, there are more public institutions than other countries, and many other countries are showing high interest in Korea’s public institution operation system. In this respect, dealing with Korean public institutions as examples provides important international implications.