Relationship between HRM Practices and Organizational Commitment of Employees: An Empirical Study of Textile Sector in Pakistan

Abstract

The objective of this study is to examine the relationship between HRM practices and organizational commitment of employees in various sectors in Pakistan. In this era, organizations are striving hard to attract and retain the talented employees to achieve competitive advantage in order to survive in the challenging global market. A survey consisted of 60 employees was conducted. Statistical tool of Pearson correlation and regression is used to investigate the relationship between HRM practices and organizational commitment of employees. The result of this study revealed that HRM practices positively influence the organizational commitment of employees. 1. Introduction Organizations are facing challenging, rapidly changing and competitive environment in this era due to globalization, advanced technology, rapidly changing customer demands, diverse work force etc. Organizations need to attract and retain talented employees in order to succeed in global market. Huselid (1995) argued that organizations can use HRM practices to shape the attitude and behavior of employees. In this way, management can use HRM practices to motivate the employees in order to accomplish the organizational objectives. A review of the literature revealed that most of the researchers conducted the research to determine the impact of HRM practices on employee's performance and organizational performance. A research to examine the association between HRM practices and organizational commitment of employees has been considered less important than it deserves (Meyer and Smith, 2000). Human Resources have become a significant factor for the organizations to gain a competitive advantage especially to survive in this era of globalization. Before employees were searching for a better firm but in this era companies are striving hard to attract and retain talented employees. HRM practices played an important role in increasing the organizational commitment of employees. Human Resource management needs to implement the HR practices effectively in order to align the employee's objectives with organizational objectives. Due to diversity, globalization and job dissatisfaction, employee's turnover rate is increasing day by day. Organizations need to pay much more attention on HR practices in order to be competitive in this global market. This study is conducted to observe the relationship between HRM practices and organizational commitment of employees. Furthermore it will help the organizations to manage their human resources in an effective way in order to succeed in the global market by gaining the competitive advantage. Organizations can make it possible by increasing the organizational commitment of employees. This research is significant in understanding the importance of HRM practices and its implementation in increasing the organizational commitment of employees. This study further contributed in achieving the organizational goals by retaining the best work force.