Impact of Human Resource Management Practices on Employee Satisfaction: A Comparative Study of Public and Private Healthcare Organizations in Pakistan

Abstract

Employee satisfaction has become a determining factor of organizational effectiveness especially in the healthcare context where it is the workforce that directly impacts patient outcomes. This research project examines how Human Resource Management (HRM) practices, namely, compensation, leadership, and training, relate to employee satisfaction in both, public and private, healthcare institutions in Pakistan. Quantitative cross-sectional design was adopted and 50 healthcare professionals (doctors and nurses) working in tertiary hospitals in Karachi were used as primary data collection instruments. The data were analyzed by means of SPSS (Version 23), which included descriptive statistics, reliability analysis, correlation, and multiple regression modeling and allowed to determine relationships between variables.

The results demonstrate that all three HRM practices substantially affect the level of employee satisfaction with compensation being the most significant predictor ( 0.41, p < 0.01), and then leadership ( 0.35, p < 0.01), and training ( 0.29, p < 0.05). The regression model had a high explanatory power as it accounted 62% of variance in employee satisfaction. Surprisingly, there was no statistically significant difference between the employees of the public and the private sector (p > 0.05), which implies that the structure of the sector is similar between the two sectors.

The research will add value to the existing literature in the field of HRM because it will provide empirical data in a developing country setting and the significance of HR strategic interventions in healthcare organizations. It offers practical information to policymakers and hospital administrators to improve workforce satisfaction and retention by implementing the best HR practices.