THE IMPACT OF HRM PRACTICES ON EMPLOYEE COMMITMENT IN BANKING SECTOR OF KARACHI, PAKISTAN

Abstract

Purpose: The main purpose of this particular research study was to discover the impact of HRM practices on employee commitment. Methodology and Design: This research study used explanatory research as its approach, it was based on deductive reasoning, and hence, is quantitative in nature which carried out cross-sectional collection of data for the research. The target population of the study were employees working in banking sector of Karachi, Pakistan, whereas, total population of this particular study was not known and is assumed to be greater than 1 million hence the sample size was taken N=400 according to the generalized rule of selecting sample by Morgan (1970) i.e. if population is equal or above 1 million then ideal sample for selection is N=384. A self-administered questionnaire was used for collecting data from N=400 people working at banks, and used to collect the data. Statistical tools usedconvenience-based sampling technique Cronbach Alpha, Pearson Correlation and Multiple Linear Regression (MLR) operated was were through SPSS program version 20.0. Findings: Finding of the study indicated that existing HRM practices (employee training, employee development, performance management, and compensation and benefits) were having impact the employee commitment. Out of the four HRM practices selected for this study, three have been found to have significant impact on employee commitment whereas impact of one HRM practice i.e. employee training was found to be insignificant. Implications: This study is considered quite useful for the management of banking sector in determining the effectiveness of existing HRM practices. The study is equally beneficial for other financial institution and even for organization of other industries.