The effect of HRM practices and leadership on job satisfaction among employees in Malaysian islamic zakat institution

The ongoing changes in the global labour market have increased the increased competition between organisations and companies, which has raised the importance of the different dimensions of work. Effective human resource practices are necessary for any organisation to build a satisfied, productive and effective workforce. This study examines the job satisfaction of employees of Zakat institutions in Penang by assessing the impact of training and development as well as compensation and benefits, and leadership. A self-administered questionnaire was distributed to the staff of Zakat institutions and analyzed for further data analysis. A total of 90 staffs participated in the study. The findings of the study found out that there is a significant relationship between the training and development, compensation and benefit on job satisfaction. In this study, leadership becomes a mediating variable to the relationship between HRM practices and job satisfaction. Based on the result, there is no significant relationship between training and development, compensation and benefit and leadership. However, there is no significant relationship between leadership and job satisfaction. The result also shows that there is no significant mediating effect of leadership between training and development, compensation and benefit and job satisfaction.