RELATIONSHIP BETWEEN HRM PRACTICES AND PERCEIVED ORGANISATIONAL PERFORMANCE THROUGH THE LENS OF WORK ATTITUDES: EVIDENCE FROM RURAL BANKS
Keywords:
Human Resource Management (HRM) Practices, Work Attitudes (Job Involvement & Organisational Commitment), Perceived Organisational Performance (POP), Rural BanksAbstract
Purpose: The purpose of this paper is to understand the relationship between HRM practices and Perceived Organisational Performance (POP) and also examine the role of employee work attitudes as mediator in influencing such relationship. Design/Methodology/Approach: Following a descriptive research design, an empirical investigation was carried out by approaching 300 respondents from regional rural banks in India to collect data through online survey forms as well as physical questionnaires. The research instruments was developed using five-point Likert-type scale and items for the construct in the study were taken based on literature review. The SPSS 21.0 and AMOS 21.0 were used for data analysis and hypothesis testing. Findings: It was found that HRM practices are positively related with organisational performance. In addition to this it was also revealed that work attitudes partially mediate the HRM-OP relationship. Originality/Value: The study is original in the sense that it provides insights into HRM practices and Organisational Performance relationship through the lens of work attitudes in regional rural banks. Implication: The study would be helpful for the concerned authorities in understanding HRM-PERFORMANCE mechanism, redesign HRM policies as employee centric, focus on social exchange relationship in an organisation to improve organisational performance. Management could think of providing department wise training so that employees could focus towards their specific department.
References
Abdullah, Z., Ahsan, N., & Alam, S.S. (2009). The Effect of Human Resource Management Practices on Business Performance among Private Companies in Malaysia. International Journal of Business Management, 4(6), 65-72.
Abutayeh, B., & Qatawneh, M. A. (2012). The Effects of Human Resource Management Practices on Job Involvement in selected Private Companies in Jordan. Canadian Social Science, 8(2), 50-57. 3. Afzal, F., Mehmood, K., Sherazi, R. S. M., Sajid, M., & Hassan, M. (2013). Effect of Human Resource Planning on organisational Performance of Telecom Sector. Information and Knowledge Management, 3(2), 173-182.
Ahmed, Z., Dost, K.B., Shafi, N., & Shaheen, W. A. (2011). Impact of Employee Commitment on Organizational Performance. Arabian Journal of Business and Management Review, 1(3), 87-98. 5. Al-maaitah, D.A., Mutalib, M.A., Zumrah, A.R., & Al-maaitah. (2015). A Conceptual Approach of Human Resource Management Practices towards Organization Performance: An Evidence from the private universities in Jordan. International Journal of Economics, Commerce and Management, 3(8), 426-434. 6. Baron, R.M., & Kenny, D.A (1986). The moderator–mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173.
Bartel, A.P. (1991). Productivity gains from the implementation of Employee Training Programs. Journal of Industrial Relations, 33, 411-125.
Beh, L.S., & Loo, L.H. (2013). Human Resource Management Best Practices and Firm Performance: A Universalistic Perspective Approach. Serbian Journal of Management, 8(2), 155-167. 9. Benjamin, A., & David, I. (2012). Human Resource Development Climate and Employee Commitment in Recapitalized Nigerian Banks. International Journal of Business and Management, 7(5), 91. 10. Bowen, D.E., & Ostroff, C. (2004). Understanding HRM-FIRM Performance Linkages: The Role of the Strength of the HRM System. Academy of Management Review, 29(2), 203-221. 11. Chang, E. (2005). Employees’ overall perception of HRM effectiveness. Human Relations, 58(4), 523-544.
Darwish, T.K., Singh, S., & Wood, G. (2015). The Impact of Human Resource Practices on Actual and Perceived Organizational Performance in Middle-Eastern emerging markets. Human Resource Management, 54(S1), 1-21.
Diefendroff, J. M., Brown, D. J., Kamin, A. M., & Lord, R. G. (2002). Examining the roles of job involvement and work centrality in predicting organizational citizenship behaviors and job performance. Journal of Organizational Behavior, 23(1), 93-108. doi: 10.1002/job.123.
Esfahani, P.G., & Tamini, B.K. (2015). The Relationship between Job Involvement, Job Satisfaction and Organisational Productivity. International Research Journal of Applied and Basic Sciences, 9(7), 1127-1131. 15. Gerhart, B. (2005). Human Resources and Business Performance: Findings, Unanswered Questions, and an Alternative Approach. Management Revue, 16(2), 174-185.
Hashim, M., Rafi, S., Ullah, M., & Kee, D.M.H. (2017). Impact of Human Resource Practices on Perceived Performance: A Study of Teaching Faculty in Private Universities of Peshawar, Pakistan. City University Research Journal, (Special Issue), 120-129.
Hilsop, D. (2003). The complex relations between communities of practice and the implementation of technological innovations. International Journal of Innovation Management, 7(2), 163-188. 18. Horgan, J., & Mohalu, P. (2006). Human Resource System and Employee Performance in Ireland and the Netherlands: A test of the Complementarity Hypothesis. International Journal of Human Resource Management, 17(3), 414-439.
Hossain, G.S., & Hossen, N. (2017). The Relationship between Human Resource Management Practices and Employee Selected Outcomes within the Organization: Empirical Evidence from Cement Manufacturing Company Limited in Bangladesh Perspective. European Journal of Business and Management, 9(36), 67-77. 20. Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis:
Conventional criteria versus new alternatives. Structural Equation Modeling, 6, 1-55. 21. Imran R., Majeed, M., & Ayub, A. (2015). Enhancing Performance: Examining the Role Played by High Performance Work System. International Journal of Economics and Financial Issues, 5, 379-384. 22. Irefin, P., & Mechanic, M.A. (2014). Effect of Employee Commitment on Organisational Performance in Coca Cola Nigeria Limited Maiduguri, Borno State. IOSR Journal of Humanities and Social Science, 19(3), 33-41.
Jain, R., & Premkumar, R. (2011). HRD Practices in Indian Organizations and Their Impact on “Productivity” of Human Resources: An Empirical Study. Management and Labour Studies, 36(1), 5-30. 24. Jery, H., & Souai, S. (2014). Strategic Human Resource Management and Performance: The Contingency
Approach Case of Tunisia. International Journal of Humanities and Social Science, 4(6), 282-291. 25. Kanfer, R. (1992). Work motivation: new directions in theory and research’, International Review of Industrial and Organizational Psychology, 7, 1–53.
Kanungo, R. (1982). Measurement of Job and Work Involvement. Journal of Applied Psychology, 67, 341–349.
Kehoe, R., & Wright, P. (2010). The Impact of High Performance Human Resource Practices on Employees’ Attitudes and Behaviours. Journal of Management, 366 – 391.
Rohmetra, N., & Bhasin, J. (2010). Human Resource Systems and Organizational Effectiveness: The Case of Indian Rural Banking. International Journal of Research in Commerce and Management, 1(4), 33-55. 44. Sagwa, E.V., Obonyo, P.K., & Ogutu, M. (2015). Mediation Effect of Employee Outcomes in the Relationship between Human Resource Management Practices and Performance of Firms Listed on the Nairobi Securities Exchange. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 6(4), 237-244.
Savaneviciene, A., & Stankeviciute, Z. (2011). Human resource management practices linkage with organizational commitment and job satisfaction. Economics & Management, 16. 46. Shitsama, B.M. (2011). The Influence of Human Resource Management Practices on Firm Performance in the Kenyan banking Industry. (Master Thesis), Strathmore University, Nairobi, Kenya. 47. Singh, K. (2004). Impact of HR practices on perceived firm performance in India. Asia Pacific Journal of Human Resources, 42(3), 301-317.
Suresh, P., & Reddy, T.N. (2017). Impact of Hrm Practices On Employee Satisfaction in Banking Sector in Chittoor District. International Journal of Engineering Technologies and Management Research, 4(12), 43-48.
Waiganjo, E.W., & Mukulu, E., & Kahiri, J. (2012). Relationship between Strategic Human Resource Management and Firm Performance of Kenya’s Corporate Organizations. International Journal of Humanities and Social Science, 2(10), 62-70.
Wan Afthanorhan, W.M.A.B., Ahmad, S., & Mamat, I. (2014). Pooled Confirmatory factor analysis (PCFA) Using Structural Equation Modelling on Volunteerism Program: A step by step Approach. International Journal of Asian Social Science, 4(5), 642-653.
Whitener, E.M. (2001). Do “high commitment” human resource practices affect employee commitment? A cross-level analysis using hierarchical linear modeling. Journal of Management, 27, 515-535.. 52. Wright, P.M., Gardner, T.M., & Moynihan, L.M. (2003). The impact of HR practices on the performance of business. Human Resource Management Journal, 13(3), 21-36.
