Author(s): Hilda Ghaleb Madanat, Anis S KhasawnehThe study aims to identify the level of effectiveness in Human Resource Management (HRM) and its impact on employees’ satisfaction in the banking sector of Jordan. A questionnaire was developed and administered to 540 employees in the banking sector of Jordan out of which 406 were returned to test research hypotheses. The findings revealed a high level of effectiveness of all HRM practices combined and for four individual practices (HR planning, staffing, training & development and performance appraisal); while, a medium level of compensation effectiveness was yielded. It has been found that employees’ satisfaction level was medium. A strong positive relationship has been identified between the effectiveness of HRM and employees’ satisfaction. The study recommended improving financial compensation system of banks, which would positively increase the level of employees’ satisfaction. On the other hand, comparative studies between Islamic banks and commercial banks are highly suggested.