Author(s): Hilda Ghaleb Madanat, Anis S Khasawneh
The 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.