The Efficacy of Human Resource Management Practices in Building Organizational Commitment of Employees: Evidence from Pharmaceutical Sector of Pakistan

Abstract

This study aimed to investigate the adoption level of standardized HRM practices (compensation, performance evaluation, and promotion) by local and multinational pharmaceutical companies in Pakistan. Furthermore, the study also attempted to analyze the impact of these practices on organizational commitment of employees in the investigated firms. Using random sampling technique, data was collected from 503 sales representatives of various pharmaceutical companies operating in the country. Results of one-sample t test presented that multinational companies have a higher level of adoption of standardized HRM practices than local companies. Similarly, multiple regression analyses demonstrated that compensation, performance evaluation and promotion practices significantly influence employees' organizational commitment. These findings provide support for the contingency approach to HRM. The study's practical implications suggest that the manufacturing companies should adopt standardized HRM practices to increase organizational commitment among their employees.