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The Impact of Human Resource Management Practices and Employee Job Satisfaction on Organizational Commitment in IT Companies
Abstract
Purpose – The purpose of this paper was to examine the role of human resource management practices such as recruitment and selection, training and development, performance management, reward and recognition, compensation and benefit, and employee job satisfaction on organizational commitment, with a focus on employees of the IT companies in Kathmandu Valley of Nepal.
Design/methodology/approach – The research paper used a quantitative approach and descriptive and causal research design to achieve the research objectives. Data collection was based on purposive sampling technique. The response was taken from 310 respondents through online survey. The variables under study were measured in a five-point Likert scale. Data were further evaluated using SPSS software version 26.0 and AMOS graphics.
Findings – The results illustrate that rewards and recognition, compensation & benefits, and performance management positively affect organizational commitment, while recruitment and selection have a smaller coefficient but has significant. Training and development does not significantly influence OC. Mediation analysis shows that job satisfaction partially mediates the effect of recruitment and selection and performance management on OC, while compensation and benefits effect on OC is fully mediated by job satisfaction.
Conclusion – The paper identified that the rewards and recognition and compensation and benefits are the strongest drivers of organizational commitment in IT companies in Kathmandu Valley. Performance management also plays a key role in enhancing OC, while recruitment and selection has a smaller, though still important, impact. Training and development did not show a significant direct effect on OC. The study further advocates that job satisfaction acts as an important mediator, strengthening the impact of HRM practices on OC, particularly in the case of compensation and benefits.
Implications – This paper advocates the role of HRM practices such as rewards, compensation, and performance management in fostering employee commitment through social exchange theory. It shows that job satisfaction plays a key role in mediating the impact of these practices on organizational commitment. Managers, especially in Nepal's competitive IT sector, can focus on fair reward systems, equitable compensation, and strong performance management which can improve job satisfaction and commitment.
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Although there are several definitions of job satisfaction or employee satisfaction, we may generally define them as a person's level of contentment with their job. Because they leave the company less frequently and stay longer, content employees help the business grow. Additionally, a positive work atmosphere attracts talent and boosts productivity by encouraging job satisfaction. The information technology (IT) industry has gained traction on the global scale and has taken centre stage in both our society and the world as a whole. The booming Indian economy has contributed to the ability of the IT industry to remain competitive in the international market. This study aimed to evaluate the degree of job satisfaction among IT professionals and identify the factors affecting that satisfaction. To highlight the factors affecting positive job satisfaction among IT industry employees, we included variables such as rewards and recognition, working conditions, fairness, job security, relationships with coworkers and employee satisfaction. After the data were cleaned, 100 responses were collected. The data were analysed using SPSS statistical software, and the findings showed that the job satisfaction of IT employees is strongly correlated with a number of factors connected to the workplace.
This study examines the impact of human resource practices on employee satisfaction in Nepalese commercial banks. Employee satisfaction is a dependent variable. The independent variables are recruitment and selection, training and development, compensation policy, and performance appraisal. Research is conducted using primary data collecting opinions of 389 respondents from Kathmandu city. Structured questionnaires were used for the survey comprising a five-point Likert scale withcross-sectional data. The correlation and regression were used to identify the association and impact of an independent variable on employee satisfaction. The result shows that recruitment and selection, training and development, compensation policy, and performance appraisal found a positive correlation with employee satisfaction. This study and its results would be helpful for executives of commercial banking institutions while making the decision and it provides the foundation to project and mitigate the issues associated with employees. So, this study provides deeper insight into the existing scenario of human resource practices and their relations with employees' satisfaction. Future research can be conducted comprising the further variables of human resource practices and even with the accumulation of more data to assess the further consequences and impact. Thus, the linkage of demographic variables as moderating effects can be examined in future studies.
This theoretical basic research paper was written in order to accomplish three research objectives: (1) to perform a brief description of selected popular models of Human Resource Management (HRM) developed by various scholars or authors; (2) to revisit and review the model of HRM developed by me in 2009; and (3) to introduce a generic model of HRM with an adequate theoretical base. It revealed that at least five popular models exist in the literature of HRM and they were briefly reviewed. The relevant review done with regard to the model developed locally as the first model of HRM in 2009 revealed that it is an internally focused but comprehensive and distinct model with a necessity of incorporating forces which exist in internal and external environments. Finally, a generic model of HRM which is composed of seven interrelated components such as internal environment, external environment, HRM fields and functions, HRM outcomes, organizational outcomes, HRM academic and professional factor, and feedback through evaluation was developed and presented by using several common theories, perspectives, arguments and logical beliefs. Hopefully the generic model will be a significant value addition to the existing local as well as international body of knowledge of HRM which is a highly recognized academic discipline and an established practice.
Human Resource Management (HRM) has the capacity of influencing the organizational behavior of the employees, thereby ensuring achievement of the corporate objectives. HRM positively influences firm performance which leads to Organizational Commitment. This study proposed to assess the relationship of HR practices & Organizational Commitment. It is also intended to test job satisfaction as a mediator, between HR practices and Organizational Commitment among the employees of the telecommunication sector of Pakistan. The data were gathered from 218 individuals employed at various telecommunication companies located in Lahore. PLS, SEM was performed on the data, using the SmartPLS 3 software. “Recruitment and Selection”, “Performance Appraisal Satisfaction”, “Rewards and Recognition” & “Work Environment” result in statistically significant variation in “Organizational Commitment”. Relationship of “Recruitment and Selection”, “Training” and “Work Environment” is complementarily mediated by “Job Satisfaction. Relationship of “Performance Appraisal Satisfaction” is Indirect-only mediated by “Job Satisfaction”. The relationship of “Reward and Recognition” and “Organizational Commitment” is not mediated by “Job Satisfaction”. Our findings contribute to the existing body of literature of how the different facets of Job Satisfaction can mediate the relationships among the HR practices adopted by firms & Organizational Commitment. Telecom companies should improvise extra attention over HR practices that contribute positively toward the performance of employees eventually accentuating employees’ level of satisfaction and consequently the quality of services rendered to customers.
This study attempts to examine the role of sustainable Human Resource Management (HRM) practices on job performance and encompasses training as a moderator variable to further evaluate the association among HRM practices and employee’s job performance.The study seeks to measure the effect of selection, participation, and employee empowerment on job performance in the publicly owned universities of Pakistan. The descriptive survey research design was utilized for this study. The target population was the entire teaching staff of two publicly owned universities (namely “The University of Agriculture Peshawar” and “Hazara University Mansehra” Pakistan). By using a convenient sampling technique, 130 sample participants were selected from the target population. The reliability scales were tallied by using Cronbach’s Alpha. The findings of the study are gleaned by using regression to investigate the role of HRM practices in job performance and whether training moderated the association between HRM practices and employee performance. Through Statistical Package of Social Science (SPSS), Hayes process was used regarding the moderation effect of training between HRM practices and job performance. The main results of regression analysis validate that HRM practices, such as selection, participation, and employee empowerment, have a significant and positive effect on employee job performance. Specifically, the study suggests that training significantly moderates the effect of HRM practices on the performance of employees and that sustainability of HRM practices has a great impact on job performance. Based on the outcomes the study confirms that the proposed hypotheses are statistically significant. Furthermore, directions for future research are offered.
Intention is a human behavior. Measurement of intention in terms of entrepreneurial mindset is becoming a researchable topic. During the past years, the factors namely lack of fund, lack of raw materials, unskilled employees etc. were mostly considered to be the deterrents of initiation and development of entrepreneurial activities. But, with the various development provisions are made by the concern authorities, it leads to the emergence of entrepreneurial intention as an important factor. The present paper is a humble effort to develop a research model of the relationship between entrepreneurial intention, job satisfaction and organisation commitment.
A synthesis of existing Industry 4.0 literature depicts that knowledge management and
decision making strategies are crucial factors for organizations. This article highlights the
need and develops a framework for knowledge management and decision-making style by
reviewing existing management literature. This research proposes a framework that supports
the relationship between knowledge management enabling factors (i.e., organizational
member’s collaboration, T-shaped skills, learning and IT-support) and organizational performance,
and mediating effect of knowledge creation process. The article also propose that
decision-making style (i.e., intuitive and/or rational) will moderate the relationship between
knowledge creation process and organizational performance. A set of propositions that represent
an empirically-driven research agenda, and also describe the relationships between
the focal variables are presented to enhance audience’s understanding within a business
context.
This study investigated the impact of Human Resource Management (HRM) practices on organizational commitment among pharmacists working in chain pharmacies in Jordan. The study was conducted across pharmacists of different levels in two chain pharmacies in Jordan. A questionnaire was designed and distributed to pharmacist working in two chain pharmacies in Jordan. Results found that training and development and reward system were positively and significantly impacted affective commitment; as well as both recruitment and selection and reward system were positively and significantly affected continuance commitment. However, no significant impact found between normative commitment and any of the suggested human recourse management practices. The results showed that the majority of the variables confirmed previous studies and the remaining minority did not support these studies due to factors such as culture, values, and the nature of health care practice. The results have a great implication for the pharmacy business sector in Jordan.
As Information and Technology (IT) industry is vital to the country’s economic
growth, it is important to ensure the smoothness in its operations so that long term
growth and development can be achieved with fewer obstacles. Hence, a constant
availability of a large pool of talented and experienced people is crucial to carry out
these functions. However, employee turnover issue is a critical phenomenon within
IT industry globally and locally. To curb this issue, academic attentions have
diverted the focus upon the implementation of talent management practices on both
employee engagement and employee retention. This study seeks to determine the
relationships between talent management practices (managerial support, employee
career development and rewards and recognitions), employee engagement and
employee retention within IT organizations in Malaysia. A quantitative study was
deployed. The research instrument involved comprised of a self-administered
questionnaire. A convenience sampling technique was used for this research. A total
of 581 respondents responded valid questionnaires and it gives an average response
rate of 77 % for the study. Data gathered were initially analysed using SPSS version
20.0. The findings of based on Pearson correlation analysis indicate talent
management practices (managerial support, employee career development and
rewards and recognitions) have positive correlation with employee engagement. It
was also found that employee engagement has positive correlation with employee
retention. The results of hierarchical regression analysis on determining the
mediating effect of a mediator (employee engagement) indicate employee
engagement mediated the relationship between talent management practice
(employee career development and rewards and recognition) and employee
retention individually.
Purpose
– Employee engagement has become a hot topic in recent years among consulting firms and in the popular business press. However, employee engagement has rarely been studied in the academic literature and relatively little is known about its antecedents and consequences. The purpose of this study was to test a model of the antecedents and consequences of job and organization engagements based on social exchange theory.
Design/methodology/approach
– A survey was completed by 102 employees working in a variety of jobs and organizations. The average age was 34 and 60 percent were female. Participants had been in their current job for an average of four years, in their organization an average of five years, and had on average 12 years of work experience. The survey included measures of job and organization engagement as well as the antecedents and consequences of engagement.
Findings
– Results indicate that there is a meaningful difference between job and organization engagements and that perceived organizational support predicts both job and organization engagement; job characteristics predicts job engagement; and procedural justice predicts organization engagement. In addition, job and organization engagement mediated the relationships between the antecedents and job satisfaction, organizational commitment, intentions to quit, and organizational citizenship behavior.
Originality/value
– This is the first study to make a distinction between job and organization engagement and to measure a variety of antecedents and consequences of job and organization engagement. As a result, this study addresses concerns about that lack of academic research on employee engagement and speculation that it might just be the latest management fad.
The purpose of this study is to explore the role of human resource management (HRM) practices, job satisfaction and organizational commitment intentions of employees working in Turkish private organizations. A total of 200 employees participated in the study. The results indicate that there is a positive relationship between HRM practices(recruitment and selection, training and development, compensation and benefits, performance appraisals) and job satisfaction and organizational commitment. The sub factor compensation and benefitsare the most importantfactors which affect the job satisfaction and organizational commitment.
A plethora of studies have reported on the negative relationship between Psychological Contract Breach (PCB) and work attitudes such as Job Satisfaction (JS) and Organizational Commitment (OC). Prior research has examined and elaborated the aforementioned relationships through the spectrum of social exchange and equity theory, which suggest that individuals search for fair and balanced exchange relationships. This study aims to provide empirical evidence on the role of PCB and JS as predictors of OC of bank employees in Greece. PCB is conceptualized by six dimensions: (a) benefits, (b) pay, (c) advancement opportunities, (d) the work itself, (e) resource support, and (f) a good employment relationship.Drawing from a sample of 262 bank employees, this study confirms the mediating role of JS on association between specific PCB aspects and OC, elevating the importance of their role in the organizational context of the banking sector.
Despite considerable interest in the study of job satisfaction and dissatisfaction, our understanding of these phenomena has not advanced at a pace commensurate with research efforts. It is argued that a major reason for this lack of progress is the implicit conception of causality accepted by most psychologists. It is called the policy of “correlation without explanation.” The present approach to the topic of job attitudes emphasizes a more conceptual approach to the problem. Using Rand's theory of emotions as a starting point, the concepts of satisfaction, dissatisfaction, value, emotion, and appraisal, and their interrelationships are discussed. The present theory of job satisfaction is contrasted with previous theories. Data illustrating an approach to satisfaction based on the present theory are given. Other issues discussed are: value hierarchies; the dynamic character of values; overall job satisfaction; the Herzberg two-factor theory; the measurement of satisfaction and values; and rational vs. irrational values.
This study aimed at exploring the impact of HR practices on job satisfaction in the context of Bangladesh. A total 60 responses from 20 manufacturing firms were collected and analyzed objectively. It was found that HR practices have significant association with job satisfaction (JS). In addition, human resource planning (HRP), and training and development (TND) were found to have positive impact on job satisfaction (JS). It was also found that TND has the greatest impact on JS. This study would benefit the academicians, researchers, policy-makers, practitioners, students, local and foreign entrepreneurs of Bangladesh and other similar countries through exploring the association between HR practices and job satisfaction.
Human resources are the most important among all the resources an organization own. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable. The present study is an attempt to find out the major factors that motivate employees and what is the relationship among reward, recognition and motivation while working within an organization. The data was collected from employees of diverse type of organizations to gain wide representation of sectoral composition. In all, 250 self administered questionnaires were distributed among the employees of different sectors and they returned 220 completed useable questionnaires for response rate of 88%. The participation in survey was voluntary and confidentiality of responses was ensured. The statistical analysis showed that different dimensions of work motivation and satisfaction are significantly correlated and reward and recognition have great impact on motivation of the employees. Implications of the study for managers and policy makers in the context of human resource practices have been discussed. Limitations and guidelines for future research are also provided.
Drawing hypotheses from Selective Optimization with Compensation theory (SOC), we explored the degree to which employee age moderates the relationship between employees’ satisfaction with high-commitment human resource practices (HCHRPs; e.g., providing training, work–life balance) and organizational commitment. Customer-facing employees (N = 6,360) from an international transportation company completed the Organizational Commitment Questionnaire (OCQ) and rated their satisfaction with various HCHRPs offered by their organization. Results show that although there was a strong overall correlation between organizational commitment and satisfaction with various HCHRPs (r = .66), employee age was a significant moderator of only the relationships between organizational commitment and maintenance-related HCHRPs (e.g., work–life balance) and not of development-related HCHRPs (e.g., training opportunities). Furthermore, moderation effects had small effect sizes, suggesting that employee age is not a characteristic organizations need to consider when making strategic decisions about HCHRPs.
Purpose
The main purpose of this study is to examine the mediating role of organizational commitment on the relationship between HRM practices and employee engagement among banking employees in the context of an emerging economy namely Bangladesh.
Design/methodology/approach
The survey data includes 383 employees from 30 private commercial banks in Bangladesh. For analyzing the data, structural equation modeling (SEM) is employed with bootstrapping method.
Findings
This study finds that HRM practices such as career advancement, employee participation, job security, performance feedback, rewards & recognition, training & development are the significant predictors of employee engagement. Results also identify OC as a partial mediator on HRM practices and employee engagement relationship which suggest that direct relationship of predictors and criterion variables are stronger than indirect association. More interestingly, findings indicate that the mechanism of black-box stage is not always work on the relationship between HRM practices and employee performance.
Originality/value
Exploring the role of OC on the relationship between HRM practices and employees’ behavioral outcome i.e., employee engagement is appeared as an initial effort in the academic literature. Furthermore, empirical research that examine the association of different organizational factors with employee engagement through OC is rarely been investigated. Thus, the findings of this study act as a strategic tool for the bank managers to design their organizational policies in such a way that foster their employee’ level of engagement.
The Pharmaceutical sector plays a vital role in underpinning the economic development of a country. This study attempts to evaluate job satisfaction of employees in different pharmaceutical companies. It focuses on the relative importance of job satisfaction factors and their impacts on the overall job satisfaction of employees. It also investigates the impacts of pharmaceutical type, work experience, age, and sex differences on the attitudes toward job Satisfaction. The result shows that salary, efficiency in work, fringe supervision, and co-worker relation are the most important factors contributing to job satisfaction. The overall job satisfaction of the employees in pharmaceutical sector is at the positive level. The nature of business operation, the work culture and the level of job satisfaction have undergone sea change for the pharmaceutical companies. As a business proposition initiated huge investment whereas majority of their stocks is going down bringing a high level of apprehension related to job security among its employees. This research paper highlights some of these problems and presents a picture of level of job satisfaction among employees of pharmaceutical companies. It also identifies unique issues of job satisfaction in the companies. Pharmaceuticals Companies are selected for the research because they are currently undergoing continued expansion. In order to gain competitive advantage and adapt to the dramatic changing environment, it is important for them to achieve management efficiency by increasing employee satisfaction in the organisation. Hence this research was mainly undertaken to investigate on the significance of factors such as working conditions, pay and promotion, job security, fairness, relationship with co-workers and supervisors in affecting the job satisfaction. This paper presents a comprehensive diagnosis of job satisfaction indices of pharmaceutical business, the factors causing the dissatisfaction & suggestions to improve them.
Purpose
– Prior research in the area of organizational change highlights the critical role played by HR practices during organizational change as it may require altering employee behavior to support the change direction. human resource (HR) function is considered to be well positioned to influence employee behavior by institutionalizing HR practices that support change. Further there is a significant body of literature that suggests that employee behavior is significantly influenced by the perceptions of HR practices during change. HR practices which create positive employee perceptions increase employee commitment to change. The purpose of this paper is to provide a conceptual framework that identifies critical HR practices that support organizational change and examines their impact on employee perception and commitment to change.
Design/methodology/approach
– First, an extensive literature review on organizational change at macro level has been done to identify critical practices desired from key organizational members during organizational change. Second, a case for importance of HR function as a key organizational member during change is presented. Further literature on effectiveness of HR practices adopted by HR professionals during organizational change is examined to find out the gap areas. Third, literature on employee perception and commitment to change is examined to find out possible linkages to HR practices during organizational change. Finally, eight propositions are presented to build an integrated conceptual framework identifying critical HR practices during organizational change and their impact on employee perception and commitment to change.
Findings
– The study suggests that HR practices undertaken in the area of culture, leadership, cross functional integration, training, communication and technology if introduced and implemented will positively influence employee perception reducing resistance and increasing commitment to change. Therefore assessing employee perception about critical HR practices at different stages of change initiation, implementation and consolidation can enable understanding about employee commitment to change. This would also help HR professionals understand how effective the HR practices implemented during change have been.
Originality/value
– This framework can be used by the researchers and practitioners to study, guide, frame and model empirical research into the area of studying critical HR practices during organizational change. So far literature provides a generic view of desired organizational practices during change. Moreover there are few studies available on employee perception about HR practices implemented during organizational change and its impact on employee commitment to change. The framework presented in this paper would help explore the effectiveness of specific HR practices implemented during change by evaluating its impact on employee perception and commitment to change.
The tendency of HRM writers to act as prescriptive advisors and legitimators to corporate management needs to be balanced if not replaced by critical-analytical and social scientific research. The notion of the sociological imagination provides inspiration and valuable guidelines for a type of realist research which, in addition to informing people directly implicated in human resourcing activities, has the potential to inform democratic processes as opposed to furthering the particular interests of one segment of society. To do this, it is helpful to adopt a realist and a philosophically pragmatist style of thinking. In line with pragmatist principles, it is argued that we are better placed to get to grips with the realities of human resourcing principles and practices if we conceptualise ‘HRM’ in terms of labour or employment management generally rather than treat it as just one variant of employment management. It is also important to appreciate the vital connection between HRM and bureaucracy. As a ‘vignette’ from research on HR processes in a small-to-medium enterprise (SME) illustrates, pragmatism also provides a methodological base for theory development and research on HRM processes, working in the sociological-imagination tradition. Pragmatic realism also has implications for how HRM scholars engage with the world outside the university.
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