Perceived human resource management practices on organisational commitment mediated by a perceived psychological contract

Abstract

Perception of human resource management practices (HRMP) is widely believed to affect employee’s commitment to their respective organization. Although there are some extensive evidences to highlight that HRM practices are associated with organizational level outcomes, it is unclear whether these practices lead to individual desirable outcome. This study has developed a model of coherence of contingency theory, institutional theory, and social exchange theory. This study was conducted to examine the role of psychological contract in examining relationship between perceived HRM practices and organizational commitment. This study further examines the role of ethical climate in influencing relationship between perceived psychological contract and organizational commitment. Data are elicited through questionnaires from 360 employees working in the banking sector in Republic of Guinea to understand their perceptions toward HRM practices in the organization they work for. Survey include measures of (a) perception of HRM practices pertaining to employee hiring, training and development, performance management, and pay remuneration; (b) perception of psychological contract; (c) organizational commitment pertaining to affective commitment and normative commitment; and (d) ethical climate. Researcher hypothesized that perceived human resource management practices are positively related to perceived psychological contract, in turn, this will lead to organizational commitment. Furthermore, the result is consistent with the hypotheses of the study that organizational commitment is higher when ethical climate is high, therefore, the study establishes that the association between organizational commitment and psychological contract was more effective when ethical climate is higher. Data analysis is performed by using the Statistical Package for the Social Sciences (SPSS); and structural equation modelling using Analysis of Moment Structures. Findings from this study clearly support the notion that employees’ perceptions provide a broader view of evaluating HRM practices. From practical point of view, the study shows some important consideration specially for those who try to improve individual level outcome via human resource management practices by creating some form of communication to employees that shows the company valued them. Findings enable the researcher to unveil lapses inherent in institutional, contingency, and social exchange theories that can, in turn, lead to create an ideal and positive organizational climate in terms of HRM practices, thereby enhancing employees’ commitment in the banking sector.

Perception of human resource management practices (HRMP) is widely believed to affect employee’s commitment to their respective organization. Although there are some extensive evidences to highlight that HRM practices are associated with organizational level outcomes, it is unclear whether these practices lead to individual desirable outcome. This study has developed a model of coherence of contingency theory, institutional theory, and social exchange theory. This study was conducted to examine the role of psychological contract in examining relationship between perceived HRM practices and organizational commitment. This study further examines the role of ethical climate in influencing relationship between perceived psychological contract and organizational commitment. Data are elicited through questionnaires from 360 employees working in the banking sector in Republic of Guinea to understand their perceptions toward HRM practices in the organization they work for. Survey include measures of (a) perception of HRM practices pertaining to employee hiring, training and development, performance management, and pay remuneration; (b) perception of psychological contract; (c) organizational commitment pertaining to affective commitment and normative commitment; and (d) ethical climate. Researcher hypothesized that perceived human resource management practices are positively related to perceived psychological contract, in turn, this will lead to organizational commitment. Furthermore, the result is consistent with the hypotheses of the study that organizational commitment is higher when ethical climate is high, therefore, the study establishes that the association between organizational commitment and psychological contract was more effective when ethical climate is higher. Data analysis is performed by using the Statistical Package for the Social Sciences (SPSS); and structural equation modelling using Analysis of Moment Structures. Findings from this study clearly support the notion that employees’ perceptions provide a broader view of evaluating HRM practices. From practical point of view, the study shows some important consideration specially for those who try to improve individual level outcome via human resource management practices by creating some form of communication to employees that shows the company valued them. Findings enable the researcher to unveil lapses inherent in institutional, contingency, and social exchange theories that can, in turn, lead to create an ideal and positive organizational climate in terms of HRM practices, thereby enhancing employees’ commitment in the banking sector.