Examining the Influence of Human Resource Development Practices on Organizational Commitment of Small and Medium Scale Enterprises

Abstract

Purpose: Human resource development (HRD) practices are linked to greater corporate commitment. This paper aims to investigate how human resource development practices influence organizational commitment. Design/Method/Approach: Data were collected from 65 SMEs of which 30 were small-sized enterprises while 35 were medium-sized enterprises. A standardized questionnaire was used. SEM was employed in testing the model and hypothesis. Findings: The findings show that the levels of affective commitment were significantly influenced by HRD practices. A significant influence of HRD practices on the levels of continuance commitment was observed. A non-significant influence of HRD practices on the levels of normative commitment was reported. Theoretical Implications: The study lends credence to the contention of enhancing organizational commitment and makes a case for additional research on the relationship between HRD practices and organizational commitment. Practical Implications: The study will aid SMEs in developing workplace strategies, policies and practices that can immensely improve employee loyalty, fulfillment and satisfaction and inordinately enhance organizational sustainability, retention and productivity. Originality/Value: This study extends the literature by demonstrating empirically that HRD practices influence organizational commitment. Research Limitations/Future Research: The study was conducted in small and medium-scale enterprises, and the analysis was based on cross-sectional data that could not be applied to a wider variety of industries. Paper Type: Empirical JEL Classification: O14, O15, P13