The role of HRM practices on organizational commitment

Abstract

The aim of the study was to examine the influence of HRM practices (such as selection, training and development, performance appraisal, performance-related reward, communication, and empowerment) on organizational commitment. The quantitative approach was used in this study. The population has considered 2,251 (two thousand two hundred fifty-one) officer-level employees of Nepalese public financial institutions. Purposive sampling was used to select officer-level employees. Sample size was 340 officer-level employees. Structural equation model was used to analyze the data. The results disclosed that organizational commitment was positively and significantly impacted by HRM practices. Training and development and performance appraisal had a positive and significant effect on organizational commitment. Selection, performance-related reward, communication, and empowerment insignificantly influenced organizational commitment. HRM practices are satisfactorily used in Nepalese public financial institutions, thus improving organizational commitment.