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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