CHAPTER - II

REVIEW OF LITERATURE

2.0 Introduction

The study concentrates on assessing the various

Human Resource Management Practices of Chennai based

Engineering companies in the Automobile sector and

the impact of such policies on the employees’

organizational commitment. This chapter begins with a

review on the concepts related to various key HRM

practices and employees’ organizational commitment

followed by previous studies conducted in this area

by various research scholars across the globe on the

basis of which this research study has been designed.

2.1 The concepts of HRM Practices and Employees’

Commitment

2.1.1 Evolution of HRM Practices in India1

The Personnel/HRM as a discipline has its origin

dating back to 1800 B.C. The minimum wage rate and

incentive plans were included in the Babylonian Code

of Hammurabi at around 1800 B.C. The principle of

division of labour has its origin from China as early

as 1650 B.C.Kautilya of India in his book

‘Arthsastra’ made reference to various concepts like

job analysis, selection procedures, training,

incentive plans and performance review. The early

roots of HRM in India could be traced to the

beginning of 19th century. The Royal commission on

labour in 1931 suggested the appointment of labour

officers to protect the workers’ interests and to act

as spokespersons of workers

During the 1960s the scope of personnel function

expanded a bit covering labour welfare, participative

management, industrial harmony etc. In this period,

the human relations movement of the west had its

influence on Indian organizations, slowly giving way

for harmonious industrial relations and good HR

practices. In 1970s the HR professionals focused more

on the developmental aspects of human resources by

giving thrust on harmonious industrial relations and

good HR practices.

During the 1990s, organizational restructuring and

cost cutting efforts assumed greater importance on

account of liberalization, privatization and

globalization forcing organizations to focus more on

employee capability, product quality, speedy

response, customer satisfaction etc. The rapidly

changing demographics and increasing shortages of

workers with requisite knowledge, skills and ability

etc led to greater importance on the issue of work

force diversity.

2.1.2 Functional Areas of Human Resources

Management

The human relations management consists of several

interrelated functions such as Human resources

planning, Recruitment and Selection, Training and

Development, Career development and Mentoring,

Compensation management, Industrial relations,

Performance appraisal etc. In the Globalized business

environment ,these HR functions need to be handled

with utmost care in order to ensure that the human

resources deliver peak performance. A brief review of

these functional areas is given below.

2.1.3 Human Resources Planning

According to Kempner2Human resource planning is the

process by which a management determines as to how an

organization should move from the current man-power

position to its desired man-power position in a given

time frame. Through the planning a management strives

to have the right numbers of right kind of people at

right place at right time to do things which result

in both the organization and the individual deriving

maximum long range benefit. There are four steps to

human resources planning:

Assessing the needs of the organization

Evaluating the current human resources

Analyzing the future availability

Preparing recruitment and development plans

Kamat3 views Human Resource Planning as a staff

function performed to ensure the availability of the

right numbers and right types of personnel to be

appointed to the right jobs at right time so that the

organizational objectives are achieved within the

maximum efficiency

Singh and Suri4 describe Human Resource Planning as a

pragmatic approach to an imaginative question,viz.,

the projection of past and present trends, current

situation and future requirements in order to

determine how many men, at what levels of skill and

knowledge are required. It is based on an

acknowledged assumption that manpower is an important

asset that can really be

planned,obtained,allocated,budgeted and controlled by

the undertaking

Robert and John5 have pointed out that Human Resource

Planning is an attempt to forecast the future supply

and demand of human resources needed by the

organization. The factors to be considered include

the current level of skilled personnel in an

organization and expected vacancies that might arise

owing to retirements, promotions, transfers,

dismissals or other reasons. Human resource planners

also try to foresee any possible increase or decrease

in operation and technological changes that may

affect the organization

Rao6 in his research observes that Human Resource

Planning is essentially the process of getting the

right number of qualified people in to the right job

at the right time.

According to Bulla and scott7,it is the process for

ensuring that the human resource requirements of an

organization are identified and plans are made for

satisfying those requirements

Vetter John8 in his research viewed Human Resource

Planning as a process by which an organization should

move from its current manpower position to its

desired manpower position. Through the Human Resource

Planning the management strives to have the right

number and right kind of people at the right place

and at the right time which will in the long run

bring maximum benefit to both the organization and

the individual

The basic purpose of having a human resource plan is

to have an accurate estimate of the number of

employees required, with the identified skills to

meet the organizational objectives. It would also

give an indication of the lead time that is available

to select and train the required number of additional

manpower

2.1.4 Recruitment and Selection

According to Stephen9 recruitment is a process to

discover the sources of manpower to meet the

requirements of the staffing schedule and to employ

effective measures for attracting that manpower in

adequate numbers to facilitate effective selection of

an efficient workforce

Selection is the process of determining which people

in the pool of talent that has been found through

recruitment process will be able to perform the

available jobs. The decision to whom to offer the job

is based on predictors of performance. Tests,

interviews, reviews of background and experience are

all applied to assess how well a person will be able

to do the job

Venkatraman and Srivastava10 observe that recruitments

refer to the process of bringing together prospective

employees and employer with a view to stimulate and

encourage the former to apply for a job with the

later. The purpose of recruitment is to prepare an

inventory of people who meet the criteria laid down

in job specification so that the organization may

choose those who are found to most suitable for the

vacant position.

David and Stephen11 have pointed out that the term

recruitment refers to the process of discovering

potential candidates for actual or anticipated

organizational vacancies

As observed by Jucius12 the selection procedure is the

system of functions and devices adopted in a given

organization for the purpose of ascertaining whether

or not a candidate possesses the qualifications

demanded for a job

Thus the overall aim of the recruitment and selection

process is to obtain at minimum cost the number and

quality of employees required to satisfy the human

resource needs of the company.

2.1.5 Training and Development

Training and Development makes a major contribution

to the successful attainment of the organization’s

objectives and the investment in this area benefits

all the stakeholders.

According to Jeff and Harris13, it is used to build

skills and competencies that the employees need now

or in the future. Training normally concentrates on

the improvement of either co-operative skills,

interpersonal skills, decision making skills or a

combination of all these

Latif14states that the training is an essential

remedial programme designed to meet the deficiencies

of faculty recruitment as well as to make the

employees more effective, productive and constructive

not only in their present jobs but also in their

higher positions in future. It plays an important

role in job efficiency and job satisfaction.

Dwivedi15 observes that the economic development

cannot be accomplished in developing countries unless

they have well educated ,trained, highly motivated

and properly developed human resource

2.1.6 Salary Administration

Compensation to employees is a vital issue in HRM.

Compensation consists of basic pay and supplementary

remuneration. No organization can expect to attract

and retain qualified and motivated employees unless a

fair compensation package is in place

Flippo16 defines compensation as an adequate and

equitable remuneration of personnel for their

contribution to the achievement of organizational

objectives.The employee compensation programme is

designed to serve three purposes:

To attract capable employees to the organization

To motivate the employees towards superior

performance and

To retain the service of the employees over an

extended period of time. The compensation given

to employees for the services rendered on a

weekly, monthly or annual basis is called salary

Bewath and Rands17 describe salary administration as

the application of systematic approach ensuring

payment in a logical, equitable and fair manner.

Wage/Salary administration involves formulation and

implementation of policies and programmes relation to

wages, salaries and other forms of employee

compensation. The process of wage/salary

determination involves, job analysis, job evaluation,

salary/wage survey, emerging salary structure,

organization’s policy and performance appraisal of

employees

2.1.7 Performance Appraisal

According to Heyel18, performance appraisal is the

process of evaluating the performance and

qualifications of the employees in terms of the

requirements of the job for which they are employed,

for the purposes of administration including

placement, selection for promotions, providing

financial rewards and other actions which require

differential treatment among the members of a group

as distinguished from actions affecting all members

equally

Flippo19 defines performance appraisal as a systematic

and so far as humanly possible, an impartial rating

of employees ‘excellence in matters pertaining to his

present job and to his potentialities for a better

job

2.1.8 Promotion

Promotion brings about positive change in the status,

responsibility and monetary benefits of an employee

Dwivedi20 defined it as a reassignment of the

individual to a job of higher rank usually involving

an increase in responsibility and accompanying pay,

privileges, prestige, status and authority.

Pigors and Myres21 define promotion as an advancement

of an employee to a better job, better in terms of

greater responsibilities, more prestige or status,

greater skill and especially increased rate of pay or

salary. Dale Yorde22r defines promotion as a movement

to a position in which responsibilities and prestige

is increased. Thus promotion provides an employee

better status, responsibility, pay and working

environment

2.1.9 Transfer

Transfer is the movement of an employee from one job

to another job on the same occupational level and at

about same level of wages or salary. No increase or

decrease in duties and responsibilities is involved

although there may be a change in the working

condition. In other words it involves little or no

change in status, responsibility.

According to Dalton23 a transfer is a change of

assignment in which the individual moves to another

job approximately at the same level of

responsibility, demanding about the same level of

pay. Michael24defines transfer as changes in which the

pay, status and job conditions of the new positions

are approximately the same as that of the previous

one

2.1.10 Employee Relations

Michael25 views human relations as the cordial

atmosphere in an organization in which people

practice the art of living in such a way that they

communicate, act, interact and transact in a cordial

manner recognizing each other needs, views, values

and temperaments, so that every interaction or

transaction that takes place in an organization will

have a concern for people at all levels in the

organization as a result of such relationship of

mutual concern, individual needs will be satisfied

and people will have a sense of belonging to the

organization leading to better morale and

productivity

According to Scott26 human relations are a process of

an effective motivation of individuals in a given

situation to achieve a balance of objectives which

will yield greater human satisfaction and help to

accomplish goals of the organization. It is an area

of management practice for the integration of people

in work situation in a way that motivates them to

work together productively,co-operatively and with

economic,psychological and social satisfaction

Farland27 describes human relations as the study and

practice of utilizing attitudes, sentiments and

interrelationships of people at work

2.1.11 Employees’ Organizational Commitment

Organizational Commitment is the relative strength

of the individual’s identification with, and

involvement in, a particular organization. It

consists of three factors:

A strong desire to remain a member of the

organization;

A strong belief in, and acceptance of, the

values and goals of the organization,

A readiness to exert considerable effort on

behalf of the organization

According to Salancik28 commitment is a state of being

in which an individual becomes bound by his actions

and beliefs that sustain his activities and his own

involvement. Three features of behaviour are

important in binding individuals to their acts: the

visibility of the acts, the extent to which the

outcomes are irrevocable and the degree to which the

person undertakes the action voluntarily. Commitment

according to Salancik, can be increased and harnessed

to obtain support for organizational ends and

interests through such ploys as participation in

decisions about action

Allen & Meyer29 define Employee Commitment as a

psychological condition that relates the criteria of

the employee relationship in the organization and the

implications on the decision to remain in the

organization.

According to Porter, Mowday & Boulian30,

Organizational commitment is the identification with

an organization and acceptance of its Goals and

Values as One’s own.

Hunt and Morgan31 define it as an employee’s strong

belief in and acceptance of an organization’s goals

and values, effort on behalf of the organization to

reach these goals and objectives and strong desire to

maintain membership in the organization

According to Moorehead and Griffin32, Northcrat and

Neale33, organizational commitment points to the

attitudes of employees concerning commitment towards

the organizations they work for.

Meyer and Allen34, Karadal35 ,Baker36 divided

commitment in to three dimensions: Affective,

Continuance and Normative commitment: Affective

commitment is defined as the extent to which an

individual identifies with, is involved in, and

enjoys membership in an organization: Continuance

commitment is defined as an attachment to an

organization based on an employee’s awareness of the

costs associated with discontinuing membership in an

organization: Normative commitment is defined as the

totality of internalized normative pressure to act in

a way which meets organizational goals and interests.

It pertains to employees staying in an organization

as a sense of obligation. In the views of Meyer,

Herscovitch and Topolnytsky37, it differs from

affective commitment because it reflects a sense of

moral duty rather than an emotional attachment.

2.2 Review of Related Research Studies

This Research study concentrates on examining the

influence of HRM Practices on the Employees’

Organizational Commitment in Auto Industry and hence

the researcher reviews the various studies done in

this area across the world broadly grouping them in

to three categories

2.2.1 Research studies done in Western Countries:

John P. Meyer and Catherine A. Smith38of the

University of Western Ontario conducted a survey

amongst the employees (N=281) of five organizations

in the manufacturing sector in Canada to find out the

influence of HRM practices on employees’

organizational commitment. Their study has largely

supported the previous claims that HRM practices such

as performance appraisal are valuable tools in the

establishment and maintenance of employees’

organizational commitment

In a study conducted by Wilbert D. Hawkins39 among the

High School Principals(N=202) of Virginia State, USA

to find out the impact of demographic variables on

employees’ commitment , it has been found that, while

employees’ tenure had a direct relationship with

employees’ organizational commitment, the age and

gender did not have any significant influence.

The study conducted by Karim Sanders of University of

Twente and Luc Dorenbosch40 of University of

Tilburg,Netherlands, from among the employees (N=748)

of four hospitals in Tilburg, Netherlands revealed

that consistent HRM practices created good perception

about the organization leading to positive impact on

the employees’ affective commitment

Carole Parkes, Judy Scully, Michael West and Jeremy

Dawson41of Alston Business School, UK carried out a

study among the employees(N=5564) of Primary Care

Trusts thro questionnaire and interview methods to

find out the impact of empowerment and involvement

strategies on employees’ commitment to the

organization. The study has revealed that the

empowerment and involvement strategies have greatly

influenced the staff to be more committed to the

organization.

In a survey conducted in 14 banks in the banking

sector of Nigeria by Danlami Sani Abdulkadir, Sulu

Babaita and Salami Issac42 of Nigeria ,they have found

that HRM Practices such as having a sound Performance

appraisal system, Career planning system and

Employees involvement in decision making were

significant factors in influencing employees’

organizational commitment.

In a survey organized by Frederick J slack, John and

Fried P Anderson43 among 900 employees of a high tech

organization in the U S, it has been found that there

is a strong correlation between employees perceived

organizational commitment to the Vision and

employees’Job satisfaction.

A study conducted by Biljana Dordevic44, University of

Nis Serbia and Montenegro revealed that the

organizational commitment of employees decreased

during the period of radical changes in the

organization, caused due to job insecurity, decreased

morale and motivation and increased stress. They

observed that the organizations need to take the

employees in to confidence and involve then in the

change process inorder to engage them in‘extra role’

behaviors such as creativeness and innovativeness.

Cagri Bulut and Osman Culha45 of Turkey, conducted a

study to find out the impact of training on

employees’ organizational commitment. Organizational

training was conceptualized within the

multidimensional frame work consisting of motivation

for training, access to training, benefits from

training and support for training.The results

revealed that all dimensions of training positively

affected employees’ commitment

David A Foote,Scott J Seipel,Nancy B Johnson and

Michelle K Duffy46 conducted a survey in the U.S to

find out the relationship between organizational HR

policies and employees’ commitment to policy as well

as the influence of policy commitment on citizenship

behavior. The study considered a sample size of 148

workers in a rural manufacturing plant in the U.S and

used Structural Equation Modeling (SEM). SEM revealed

that attitudes and role clarity positively influenced

policy commitment and the policy commitment

positively influenced conscientiousness and civil

virtue

James W Westerman and Bret L Simmons47 of U.S did a

study to find out the Effects of Work Environment on

the Personality-Performance Relationship. They

considered a sample of 115 employees in working in

various organizations in the Western United States.

They explored the potential mediating effects of work

environment preferences on relationships between Big

five personality dimensions and employee performance

and commitment. The findings of the study suggested

that the work environment could play a predominant

role in employee performance and commitment.

Mary Bambacas,Maraget Patrickson48,UK did a study to

determine the interpersonal communication skills that

enhance organizational commitment, by interviewing 32

HR Senior managers in organizations with over 100

staff members. The study has revealed that HR

managers have expected other managers to be effective

in interpersonal communications focusing mainly on

clarity and frequency of communications with

listening and collaborative skills in order to

promote employees’ organizational commitment. However

the study has found that most managers lack in these

skills.

A study done by David McGuire and Lauren McLaren49

amongst 65 frontline call centre employees in UK, to

understand the impact of physical environment on

employee commitment in call centres, confirms that

the employee well being mediates the relationship

between physical environment and employee commitment.

According to the study, the call centre industry

needs to make employees more autonomous by reducing

the level of scripting, encouraging greater

involvement and participation in work systems and

setting targets and the organization of regular team

events.

Ian O Williamson, Meredith F Burnett and Kathryn M

Bartol50 did a study to examine how the cultural

dimension of collectivism interacted with work place

attributes to influence organizational commitment.

This is studied by using a longidutional survey to

examine the development of affective organizational

commitment by a racially diverse set of young

professionals in the USA. The results showed a

significant two-way interaction between the cultural

dimension of collectivism and organizational rewards

on employees’ commitment. The findings suggest that

organization may increase existing employees’

commitment by strategically managing the types of

rewards they provide to employees with different

cultural values. Thus this study provides initial

evidence on the interactive effect of culture and

rewards on the formation of employee commitment.

Ian R Gellatly, Karen H Hunter, Luanne G Gurrie and P

Gregory Irving51(2009) did a study to examine how

employee perceptions of development-oriented,

stability-oriented and reward-oriented human resource

management(HRM)practices affected the likely good of

affective and continuance commitment profile

membership. Drawing from self determination theory,we

described the nature of psychological states believed

to underlie the specific profiles under

investigation, then tested a series of theoretical

predictions concerning the link between HRM practices

and the likely good of profile membership. Predictor

and criterion data for this study were collected from

317 respondents working in various Canadian

organizations. The findings suggest that

organizations can use HRM practices strategically to

help shape the nature of overall employee commitment.

Knowledge of the pay system has been identified as

one of the key elements affecting the success of the

reward system. Christina Sweins and Panu Kalmi52(2008)

of Finland did a study to find out how communication,

performance feedback and membership length are

related to profit sharing knowledge and how profit

sharing knowledge is related profit sharing

satisfaction and organizational commitment. The data

has been collected from 753 employees in 30 companies

managing Finnish personnel funds which are deferred

profit sharing schemes..The study has found strong

evidence that better profit sharing communication and

higher membership length increase profit sharing

knowledge. Evidence has also been found that the

relationship from profit sharing knowledge to

commitment is mediated by profit sharing

satisfaction.

2.2.2 Research studies done in Asian countries

excluding India

Normala and Daud53, Faculty of Business Management,

University of Technologi MARA, Malaysia conducted a

survey to determine the relationship between HRM

variables like Career Growth, Training and

Development, Participation, Physical Environment, Pay

and Benefits on employees’ organizational commitment.

Carefully prepared and validated questionnaires were

distributed to 500 employees belonging to 50

different organizations. The results showed that

these HRM variables have a significant positive

relationship with employees’ organizational

commitment and provided insights on how the

Malaysian firms could improve upon their employees’

commitment to improve the performance of the

organizations.

Moha Asri Abdullah, Munir Shuib, Zikri Muhammad,

Hassan Naziri Khalid, Norizan Md Nor and Junaimah54

conducted a study amongst the employees of SMEs in

Malaysia to find out the relationship between

demographic variables and organizational commitment.

The findings revealed that the factors like

demographic variables and pay could influence the

organizational commitment of the employees.

A study was conducted by Tuang Chang Huang55 to

distinguish well performing firms with those of

poorly performing ones on the basis of the HRM

practices, concluded that the organizations giving

strategic importance for HRM Practices have been

functioning very efficiently registering low employee

turnover and high degree of commitment to the

organizations receiving worldwide importance and

attention.

Samiana Nawab, Khuram Shafi and Jawahar Ahmed56 of

Pakistan did a survey by taking a sample of 210

employees from 4 organizations to study if the

organizational culture(participative environment and

flexibility) acts as a determinant of employees’

organizational commitment. Their study has revealed

that the Organizational culture strongly affects the

commitment of employees with the organization. While

Good organizational culture bound the employees

strongly with their organization resulting in

decrease in employee turnover, the unhealthy culture

loosely bound the employees leading to high employee

turnover. The study has also revealed that the

participative environment has more impact on

employees, commitment than flexibility.

An investigative study was done by Tsung-Hsien

Kuo,Li-An Ho,Chinho Lin and Kuei-kuei Lai of Taiwan57

among 428 IT professionals of 40 high-tech IT

companies located in and around of Taipei to assess

the impact of HR variables like job design and

empowerment on the commitment of an employee.The

study has found that both the variables-work redesign

and empowerment generate positive and direct

influence on employees’ commitment.

Yin Teng Chew and Sai Kong Wong58(2008) did a study in

the hotel industry in Malaysia to examine the effects

of received career mentoring(CM) and perceived

organizational support(POS) on hotel workers’

organizational commitment. The study revealed that

the career mentoring was moderately correlated

with the intention to leave, but it did not

significantly predict the turnover intention. Instead

it was perceived organizational support that had a

significant relationship with the workers commitment.

Yuanqiong He, Kin Keung Lai,Yagang Lu59 carried out

survey in the hotel industry of China to assess the

influence of HR variables like managerial support and

job design.The study revealed that the managerial

support had stronger relationship with the commitment

of the employees that job design.

Sut I Wong Humborstad60 of Norwegian School of

Management, Oslo and Chad Perry of Gibaran Graduate

School of Business, Adelaide carried out a survey

amongst the employees of 4/5 star hotels in Hongkong

region of China to find the relationship between

empowerment and employee’s commitment. They

administered 290 . The study has revealed that, while

the perceived empowerment has a positive impact on

the intention of the employee to leave , it has a

minimal impact on the employee’s service effort.

Nighat G Ansari61 of Pakistan conducted a survey among

the officer employees of the banks in the Lahore

region to analyze impact of HRM practices like

Selection and Induction, Performance appraisal,

Training and Development, Work Environment and

Compensation benefits on employees’ organizational

commitment. He administered questionnaires to 163

officers, selected at random. The study revealed the

prevailing poor HRM practices in the banking sector

of Pakistan leading to lack employees’ organizational

commitment resulting higher employee turnover and

poor customer satisfaction and poor operating

performance.

Unnikammu Moideenkutty, Asya Al-Lamki andY. Sree Rama Murthy62

of Sultan Qaboos University, Al Khod, Oman carried out a study in the Muscat

Securities Market to find out the impact HRM practices like selection and

Induction, performance appraisal, empowerment and training and development

on employees’ organizational commitment and hence the performance of the

Organizations. Questionnaires were distributed to 10% of employees of

Companies with staff strength of more than 100. The study revealed that

High involvement human resource management practicessuch as were positively

related to employees’ organizational commitment and hence the organizational

Performance.

Michel Zaitouni, Nabeel N. Sawalha and Adil E l Sharif 63of College of

Business Administration, Gulf University for Science and Technology did a

study among the employees of the banking industry in Kuwait to analyze

the impact HRM practices like rewards, recognition and competency

development by distributing questionnaires to 460 permanent employees of

various banks .Their study revealed that ,while rewards and competency

development were positively related to all the threetypes of commitment,

recognition did not positively related to continuancecommitment.

Gantasala V. Prabhakar and Padmakumar Ram64, Faculty School of

Management, New York Institute of Technology, Jordanconducted a study to

understand the implication of HR variables like selection ,performance

oriented pay, participation in decision making on employees’ commitment by

administering 188 questionnaires to the employees of XYZ LLC.The study has

revealed the existence of a strong positive relationship between the HR

variables and employees’ organizational commitment.

Imran, Asma, Ahmed and Mehboob65 of Pakistan conductedstudy to find

out the influence of HRM practices like training, career development,

participation in decision making and empowerment on employees’

commitment. They administered 600 questionnaires to the employees of

various units in service sector. The study found a positive a relationship

between these variables and the employees’ organizational commitment.

Fathi Mohamed Abduljlil ALDamoe,Dr.Mohamd Yaznan and Dr.Kamal Bin Ahmd66 of College of business, Universiti Utara, Malaysia did a study titled ‘The mediating effect of HRM outcomes (employee retention) on the relationship between HRM practices and organizationalperformance’ by collecting data from 484 HR managers working in various government

organizations having HR set up. The study has revealed that HRM practices

like Training and Development, Compensation Package,Performance

Appraisal, Recruitment and Selection have great impact on Employee Retention and hence the organizational performance.

Vatsala Wickramasinghe&Anuradha Gamage67 of departmentof

management technology,University of Moratuwa conducted a study among the

Quality and HR managers of 34 manufacturing firms to find out if there was

any relationship between High involvement work practices, quality of

performance and the HR function.The findings revealedthat the performance

appraisal and training and development had great impact on the performance of the employees.

Warren C.K.Chiu and Caherine W.Ng 68of Hong Kong Polytechnic

University, China, carried out a study to find the relationship between Women

friendly HR policies of the organizations and employees’ organizational

commitment.The study was done among 300 employees comprising 100 men

and 200 women working in various small and mid size organizations in Hong

Kong.The study has revealed that the women friendly HR policies did have a

positive impact on the their organizational commitment without having any

negative influence on men employees.

Mary Bambacas and Prashant Bordia69 of International graduate school of

business ,University of South Australia conducted a study to find out the

difference in perception among two categories of employees-one category was

given focused support for their career development while the other one gave

necessary inputs to the employees for them to take care of their career

development.The study was conducted among 196 managers working in

different organizations.The study has revealed that the employees of

organizations where the organizations take care of their career development

perceived the organizations more positively leading to better organizational

commitment.

Takeuchi, Chen, Norihiko, Wakabayashi, Misuru and Ziquang70 carried

out a study to find out the prevailing HRM configuration in Japanese

companies operating in Mainland China and Taiwan andits impact on

enhancing the Competitive advantage of these companies. The results provided

basic support for the untested relationships betweenhigh commitment work

practices (HCWPs)such as performance appraisal, career planning, compensation management, working environment ,rewards /incentives etc and high performance work systems (HPWSs) from a Japanese management perspective.

Jorder, Mohd H R,Shariff and Mohmad Yaznam71 of Bangladesh

conducted a study to assess the turnover intentions of the faculty members

working in the private universities of Bangladesh. . A total of 317 faculty

members of different private universities located in Dhaka Metropolitan Area

participated in the survey. The study found faculty compensation, supervisory

support and job security as statistically significantpredictors of faculty

turnover intention. Therefore, private university management should pay much

attention to this area of human resource practices (compensation, supervisory

support, job security) to retain the potential faculty, thus reducing turnover

intention.

2.2.3 Research studies done in India

C.Balaji 72 a research scholar at IIM Ahmedabad conducted a survey to find

out the impact of age, experience and position of theemployees on the

employees’ organizational commitment. The study has revealed that there was

a positive relationship between age, experience and levels of the employees on

their organizational commitment.

S.Kaliamoorthy and R.Mohan Kumar73 of Alagappa

University conducted a study among a group of 30

employees and 20 executives selected from various

Public Limited Companies to find out the relationship

between organizational climate and employees

commitment. The study revealed that the

organizational climate had a positive as well as

negative implications, indicating that a positive

enhanced climate would lead to employees’ commitment

and hence the enhanced performance of the

organization

S.Viramani and Bhiloda74 conducted a study in Gujarat Electricity board to

assess the impact of the incentive/reward schemes on the employees’

motivation and hence their organizational commitment.The study revealed the

perception of the employees that the majority of the employees would not earn

the incentive amount due to the scheme conditions. They felt that the scheme

was not employee friendly and hence the result of thescheme was unhappiness

amongst the employees and hence and demotivation

Dr.Anuradha.R75 ,faculty T.A.Pai Institute of

management,Manipal did a study on the HRD program

offered to the entire workforce of a development

organization operating in Karnataka ,enabling the

individuals and the groups to learn through process

mode,internalize the need for changing the

style,skill,behaviour and mind set through

training.The study concluded that the organizational

effectiveness depended upon the individual

effectiveness. It is the responsibility of the

organizations to identify and provide the required

training inputs on a continuous basis which would

make the individual employees to commit for the

organizational goal.

A.K.Paul and R.N.Anantharaman 76conducted a study on

influence of HRM Practices on Organizational

Commitment of employees in the Software Sector in

India.Validated questionnaires were used to collect

data from 370 professional covering 34 companies.The

study showed that HRM practices such as Value based

induction, Total approach to compensation, Career

development, Employee friendly environment,

Development oriented approach, Comprehensive

training, Value added incentives, Team based job

design and Rigorous selection process had a

significant positive relationship with organizational

commitment. They also suggest that HR practioners

need to develop commitment oriented organizational

policies

M.K.Patel and Bhuvanam.K.Iyer77 carried out a study

on HRD general practices in pharmaceutical industry

in Gujarat by collecting data from 125 respondents in

8 pharmaceutical companies. The study revealed that

most of the companies had good HRD practices which

helped the employees to learn new skills, build team

spirit and cooperation among employees .The study

also found that the companies give lots of importance

for quality of work life(QWL)

Tanuja Agarwala78 did a study to find out the impact

of innovative HR Practices on employees’

organizational commitment in the IT/ITES industry.

The data were collected from 272 employees. Analysis

revealed that the employees working in organizations

practicing innovative and contemporary HR practices

showed a higher level of organizational commitment

and hence organizational performance

Mahal and Prabhjot Kaur79 carried out a study to find

out the impact of HR Practices on employee Retention

by conducting an interview with 100 employees

belonging to various organizations in India. Their

study has revealed that a good salary package coupled

with appropriate job design in line with the

employee’s skill and competencies and good a working

environment would influence the employees to look for

longer innings in an organization there by reducing

the attrition rate

In a study conducted by Sam Gnanakkan and Samson80

titled “Mediating Role of Organizational Commitment

on HR Practices and Turnover Intention among 849 ICT

Professionals (Information and communication

professionals) they have found that the compensation

package and training and development activities

influence the employees more committed to the

organization there by minimizing their intention to

leave the organization.

Prof Jyotsna Bhatnagar81 did a study to assess the

power of Psychological empowerment as an antecedent

to employees’ organizational commitment. The data was

collected from 604 managers from various companies in

India for analysis. The study has clearly revealed

that there is a strong relationship between

Psychological empowerment and employees’ affective

and normative commitment

Aradhana Khandekar and Anuradha Sharma82 of department

of humanities and social sciences, Indian Institute

of Technology ,Delhi conducted a study to find out

if there is a relationship between Strategic HRM and

Organizational Learning. The data was collected from

300 Line/HR managers working in Indian as well as

Foreign MNCs in organizations functioning in and

around Delhi. The study has revealed that strategic

HR Practices like training and development and

performance appraisal play a key role in making the

organization as a learning organization.

Prof Jyotsana Bhatnagar83 conducted a study to assess

the role played by strategic HR inpredicting the

employees’ organizational commitment. The sample size

consisted of 640 Indian managers drawn from various

Industry.The analysis of the data revealed that there

is a positive relationship between the various

strategic HR Practices and the employees’

organizational commitment

Ajay K Jain, Sabir I.Giga and Cary L.Cooper84 did a

study to find the relationship between employee well

being and organizational commitment. The study was

conducted amongst the middle level executives from

motor-cycle manufacturing organizations based in

North India. The results of the study suggested that

the well being was negatively related to conditional

continuance commitment, whereby employees consider

the advantages associated with continued

participation and costs associated with leaving and

normative commitment, whereby employees feel that

they have moral obligations to remain with the

organization.

A study was conducted by Chand, Mohinder, Katou and

Anastasia85 to find out the impact of HRM practices on

employees’ commitment and hence the performance in

the Indian hotel industry. A total 439 hotels and

resorts in 3-star and above category were considered

for the study. The study has revealed that the HRM

practices like manpower planning, recruitment and

selection, job design, performance appraisal and

training and development have a positive correlation

with the employees’ organizational commitment and

hence the performance of the employees

Kundu, Subhash C, Malhan and Divya 86conducted a studyto compare the

HRM Practices prevailing in the Indian and Multinational Insurance

companies operating in India. Primary data based on 218 respondents from four

insurance companies (two multinational-7 branches andtwo Indian-7 branches)

were analyzed to assess HR practices being practiced by insurance companies

in India. The results showed that Indian companies did not practice workforce

diversity. Compensation practices were found to be more competitive or

performance based in Multinational insurance companies than in Indian ones.

Interactive effects were significant in Multinational Insurance companies on

account of workforce diversity and contemporary issues, training and

development ,employee benefits, recruitment and selection, and selection and

socialization of employees.

The survey study done by Sambhaji V.Mane87 of Maharastra by collecting

responses from 225 respondents in 80 milk processing organizations around

Pune-Nasik belt concluded that the respondents felt that HR practices like

performance appraisal, reward/incentive, training anddevelopment, working

environment etc would facilitate the employees to bemore committed to the

organizations. The study also revealed that these milk processing units did not

have these high performance HR practices

GiriRaj and Mohanty R.P88 did a study in the Indian Oil and Gas

and Exploration Sector to assess the impact of HRM Practices on the affective

commitment of the employees in various organizations in the sector .The study

revealed that there was a significant relationship between the Strategic

HRM Practices and the Affective commitment of the employees having an

impact on the Turnover Intentions of the employees

Pandey,Prachi,Bhattacharyya and Sanghamitra89 did a study to establish

the importance of human resource practices in achieving high levels of supply

chain integration through effective on time information sharing by enhancing

the quality of communication. Data collected from 60 automobile components

manufacturing organizations indicate that the timely sharing of information

has a significant effect on Supply Chain Integration.The study has also found

that this integration is positively moderated by training and reward alignment.

Discussion:

While each and every HRM practice has a role in motivating the employees

for higher performance, practices like Empowerment and Participation in

Decision making(Carole 2007,Tsung-Hsien2010 and Sut IWong 2011) do

play a significant role in enhancing the employees organizational commitment.

Performance appraisal,Career planning and Training and

Development(Meyer2000,Vatsala 2011,Mary Barbacas 2009AK

Paul2004,Chand 2007,Aradhana 2005,Anuradha 2003 Vatsala

2011,Normala 2010) are the other important practiceshaving a bearing on the

employees’ organizational commitment. Working Environment(Normala

2010,Samiana2010,Kaliamoorthy 2007,AK Paul2004,MK Patel2004) do

play a major role in the employees’ commitment towards the organizational

goals. Compensation Management including

Rewards/Incentives(Nighat2011,Jorder2011,Sam Gnakkan2010,Virmgami

2002,Asri2007 Ian Gelatly2008,Ian Williamson2009) influence the

employees for superior performance.

The degree of importance that these HRM Practices could undergo a change

depending on the country,industry,period and the values and beliefs of the

organizations.However it is well understood that human resources are the most

important of all the resources and HRM should constantly look for innovative

practices to ensure that the employees are motivated and committed to align

themselves with the organization for Superior performance

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