The Effect of Human Resource Practices on Employee Loyalty: A Study of Banking Sector

Authors

  • Rajendra K Khatik Sr. Assistant Professor, School of Commerce & Business Studies, Jiwaji University, Gwalior (M.P.) Author
  • Parul Garg Research Scholar, School of Management, Jiwaji University, Gwalior (M.P.) Author
  • Ankit Goel Assistant Professor, IMS Ghaziabad, Ghaziabad Author

Keywords:

HRM Practices, Employee Loyalty

Abstract

The main purpose of this study is to evaluate the effect of human resource practices (HRM}  namely compensation, workplace, value & ethics, training, empowerment and leadership on  employee loyalty in banking sector organization of Mathura Region. This study was conducted  using self-administered questionnaire. Using a cross-sectional study, a valid questionnaire of  total l 00 employees of banking organization was collected using convenience sampling method.  The study has been conducted from the period of April 2018 to July 2018. Regression indicates  a significant and positive association of these practices with employee loyalty. The findings revealed  that these practices are highly influencing the employee loyalty and thereby enhancing the internal  efficiency.  

References

Alexandros Psychogios, Leslie Thomas Szamosi, Rea Prouska, Christopher Brewster, (2016) "A three-fold framework for understanding HRM practices in South-Eastern European SMEs", Employee Relations, Vol. 38 Issue: 3, pp.310-331.

Anastassova, L. and Purcell, K (2007), "Human resource management in the Bulgarian hotel industry: from command to empowerment?", International Journal of Hospitality Management, Vol. 14 No. 2, pp. 171-85.

Armstrong, M. (2006). "Competition in two sided markets. The RAND Journal of Economics", Vol. 37 No.3, pp. 668-691.

Arunprasad P., (2017) "Inevitable knowledge strategy: A paradigm shift in strategic HRM practices to augment firm's performance", Employee Relations, Vol. 39 Issue: 5, pp.753-774,

Bae, j. AND Lawler,J.J. (2000), "Organisational and HRMstrategies in Korea: impact on firm performance in an emerging economy", Academy of Management Journal, Vol. 43, pp. 502-17.

Bard Kuvaas (2007),"the study of HRM practices "The impact of HRM practices on linkages between perception of employee outcomes", Journal of management studies.

Becker, B. and Gerhart, B. (1996), "The impact of human resource management on organizational performance: progress and prospectors", Academy of Management Journal, Vol. 39 No. 4, pp. 779-801. 8. Becker, B.E., Huselid, M.A 2011 direct estimates of SD and the implications of utility analysis. Journal of applied psychology, Vol.77:22 pp.7-233.

Bierly, P. and Chakrabarti, A (1996), "Generic knowledge strategies in the U.S. pharmaceutical industry", Strategic Management Journal, Vol. 17 No. 2, pp.123-135.

Bijlsma, K and Koopman, P. (2003), "Introduction: trust within organisations", Personnel Review, Vol. 32, pp. 543-55.

Bondarouk, T.V. and Ruel, H.J. (2013), "The strategic value of e-HRM: results from an exploratory study in a governmental organization", Incernarional Journal of Human Resource Management, Vol. 24 No. 2, pp. 391-414.

Boselie, P., Dietz, G. and Boon, C. (2005), "Commonalities and contradictions in HRM and performance research", Human Resource Management Journal, Vol. 15 No. 3, pp. 67-94.

Cathy Sheehan, Brian K. Cooper, (2011) "HRM outsourcing: the impact of organisational size and HRM strategic involvement", Personnel Review, Vol. 40, pp.742-760.

Cho, S., Wood, R.H. and Mayer, K.J. (2005), "Examining the impact of human resources management on organizational performance", paper presented at the Annual Meeting of the Academy of Management, Honolulu, HI.

Choi, J.H. and Lee, K.P. (2013), "Effects of employees' perceptions on the relationship between HR practices and firm performance for Korean firms", Personnel Review, Vol. 42 No. 5, pp. 573-594.

Delery, J.E. and Doty, D.H. (1996), "Modes of theorizing in strategic human resource management: test of universalistic, contingency and configuracional performance predictions", Academy of Management Journal, Vol. 39, pp. 802-35. .

Dyer, L. and Reeves, T. (1995) 'Human Resource Strategies and Firm Performance: What Do We Know and Where Do We Need to Go?', Internacional Journal of Human Resource Management, Vol. 6(3): pp. 656- 70.

Edgar, F. and Geare, A. (2005), "HRM practice and employee attitudes: different measures-different results", Personnel Review, Vol. 34 No. 5, pp. 534-49.

Elise Marescaux, Sophie De Winne, Luc Sels, (2012) "HR practices and HRM outcomes: the role of basic need satisfaction", Personnel Review, Vol. 42 pp.4- 27.

Ellemers, N., de Gilder, D. and Haslam, S.A. (2004), "Motivating individuals and groups at work: a social identity perspective", Academy ofManagementReview, Vol. 29 No. 3, pp. 459-478.

Fanelli, J.M., and Medhora, R. (1998). "Financial reform in developing coumries: An overview. In Financial Reform in Developing Countries" pp. 3-28. Palgrave Macmillan UK.

Fiona Edgar, Alan Geare, (2005) "HRM practice and employee attitudes: different measures - different results", Personnel Review, Vol. 34 Issue: 5, pp.534-549.

Folger, R. and M. A. Konovsky. 1989. "Effects of Procedural and Distributive Justice on Reactions to Pay Raise Decisions." Academy of Management Journal 32:115-130.

Fu, N., Flood, P.C., Bosak, J. Morris, T. (2015),"How do high performance work systems influence organisational innovation in professional service firms", Employee Relations Vol.37 No. 2, pp 209-231. 25. Fuller, J.B., Hester, K., Barnett, T., Frey, L., Relyea, C. and Beu, D. (2006), "Perceived external prestige and

internal respect: new insights into the organizational identification process", Human Relations, Vol. 59 No. 6, pp. 815-846.

Gomez, C.F. and Rodriguez, J.K. (2006), "Four Approximations to Chilean culture: Authoritarianism, Legalism, Fatalism and Compadrazgo", Asian Journal of Latin American Studies, Vol. 19 No. 3, pp. 43-65.

Gould-Williams, J. (2007), "HR practices, organizational climate and employee outcomes: evaluation social exchange relationships in local government", International Journal of Human Resource Management, Vol. 18 No. 9, pp. 1627-47.

Guest, D. (1997) 'Human Resource Management and Performance: A Review and Research Agenda', International Journal of Human Resource Management, 8(3): pp.263-76.

Guest, D .E. (2002), "Human resource management, corporate performance and employee wellbeing: building the worker into HRM", Journal oflndustrial Relations, Vol. 44 No. 3, pp. 335-58.

Hanisch, K.A. and Hulin, C.L. (1990), "Job attitudes and organizational withdrawal: an examination of retirement and other voluntary behaviors", Journal ofVocational Behavior, Vol. 37, pp. 60-78. 31. Hennekarn, S. and Herrbach, 0. (2013), "HRM practices and low occupational status older workers", Employee Relations, Vol. 35 No. 3, pp. 339-355.

Ian R Gellatly, Karen H.hunter, "HRM practices and organisational commitments profiles", The international journal of management, Vol.20, No.4,pp.869-884.

Jiang, K., Lepak, D.P., Han, K., Hong, Y., Kim, A. and Winkler, A. (2012), "Clarifying the construct of human resource systems: relating human resource management to employee performance", Human Resource Management Review, Vol. 22 No. 2, pp. 73-85.

Jimenez, D.J. and Valle, R.S. (2005), "Innovation and human resource management fit: an empirical study", International Journal of Manpower, Vol. 26 No. 4, pp. 364-381.

5. Julian Gould -Williams (2017)," the importance of HR practices -and workplace trust in achieving superior performance: a study of public-sector organisations", the international journal of human resource management. 36. Keerthana, K.and Krishnamoorthy,D.V.(2018), 'Examining the Influence of Human Resource Practices on Employee Loyalty'. IJRCM, Vol.8 Issue: 6, pp. 26-33.

Klaas, B.S., McClendon, J. and Gainey, T.W (1999), "HR outsourcing and its impact: the role of transaction costs", Personnel Psychology, Vol. 52 No. 1, pp. 113-36.

Lado, A.A. and Wilson, M.C. (1994), "Human resource systems and sustained competitive advantage: a competency-based perspective", Academy of Management Review, Vol. 19 No. 4, pp. 699-727. 39. Larry WHoward" the influence of human resource practices on empowerment and employee perceptions of management commitment to quality", journal of quality management, vol.4, No.l,PP.5-22 40. Lepak, D.P. and Snell, S.A. (1999), "The human resource architecture: toward a theory of human capital allocation and development", Academy of Management Journal, Vol. 13, pp. 31-48. 41. Lilly, J.D., Gray, D.A. and Virick, M. (2005), "Outsourcing the human resource function: environmental and organizational characteristics that affect HR performance", Journal of Business Strategies, Vol. 22 No. 1, pp. 55-73.

MacNeil, C.M. (2003), "Line managers: facilitators of knowledge sharing in teams", Employee Relations, Vol. 25 No. 3, pp. 294--308.

Mika Vanhala, RiikkaAhteela, (2011) "The effect ofHRM practices on impersonal organizational trust", Management Research Review, Vol. 34 pp.869-888

Mo··Uering, G., Bachmann, R. and Lee, S.H. (2004), "Introduction: understanding organizational trust - foundations, constellations, and issues of operationalisation", Journal of Managerial Psychology, Vol. 19, pp. 556-70.

Mohinder Chand, Anastasia A. Katou, (2007) "The impact ofHRM practices on organisational performance in the Indian hotel industry", Employee Relations, Vol. 29 Issue: 6, pp.576-594.

Parkington, J. J., & Schneider, B. (1979). "Some correlates of experienced job stress: A boundary role study. Academy of Management Journal", Vol. 22 No.2, pp.270-281.

Pfeffer, J. (1999) 'Putting People First for Organisational Success', The Academy of Management Executive, 13(2):pp. 37-48.

Richardson, R. and Thompson, M. (1999) The Impact of People Management Practices on Business Performance: A Literature Review. London: Institute of Personnel and Development. 49. Saunders, M.N.K., Lewis, P. and Thornhill, A. (2012), Research Methods for Business Students, 6th ed., Prentice Hall, Essex.

Schappe, S.P. (2015), "Bridging the gap between procedural knowledge and positive employee attitudes", Group and Organisation Management, Vol. 21 No. 3, pp. 337-65.

Schuler, R.S. (1988) 'Human Resource Management Practice Choices'. In Schuler, R.S., Youngblood, S.A. and Huber, V.L. (eds) Readings in Personnel and Human Resource Management, 3rd edn. St. Paul, MN: West Publishing

2. Schuler, R.S. and Jackson, S.E. (1999), Strategic Human Resource Management: A Reader, Blackwell, London. 5 3. Schuler, RS., Dolan, S .L. and Jackson, S. (2001 ), "Trends and emerging issues in human resource management: global and trans cultural perspectives- introduction", International Journal of Manpower, Vol. 22 No. 3, pp. 195-7.

Shatha M. Obeidat, (2017) "An examination of rhe moderating effect of elecuonic-HRM on highperformance work practices and organisational performance link", Evidence-based HRM: a Global Forum for Empirical Scholarship, Vol. 5 pp.222-241

Sheehan, C. and Scafidi, A. (2005), "The strategic role of HR managers in Australian organisations: cues from organisational recruitment sources", Journal of rhe Australian and New Zealand Academy of Management, Vol. 11 No. 1, pp. 41-56.

Sherine Farouk, Hossam M. Abu Elanain, Shatha M. Obeidat, Moza Al-Nahyan, (2016) "HRM practices and organizational performance in the UAE banking sector: The mediating role of organizational innovation", International Journal of Productivity and Performance Management, Vol. 65 Issue: 6, pp.773-791.

Snell, S.A. and Dean, J.A. Jr (1992), "Integrated manufacturing and human resource management: a human capital perspective", Academy of Management Journal, Vol.35, pp.467-504.

Trung, D.B. (2014),' Factors on Employee Loyalty in Hoang Phuc Company' Bachelor's rhesis. 59. Tzafrir, S.S., Harel, G.H., Baruch, Y. and Dolan, S.L. (2004), "The consequences of emerging HRM practices for employees' trust in rheir managers", Personnel Review, Vol. 33, pp. 628-47.

Unnikarnmu Moideenkutty, AsyaAl-Lamki, Y. Sree Rama Murrhy, (2011) "HRM practices and organizational performance in Oman", Personnel Review, Vol. 40 pp.239-251

Vathsala Wickramasinghe, Melanie Samaratunga, (2016) "HRM practices and post-promotion managerial performance: Subordinates' perspective", Evidence- based HRM: a Global Forum for Empirical Scholarship, Vol. 4 Issue: 2, pp.144-161,

Whitener, E. M. 1997. Patterns of Social Exchange: The Relationship between Perceptions of Human Resource Practices and Employee Attitudes. Paper presented at rhe Academy of Management Meeting, (August), Boston, MA.

Whitener, E.M. (1997), "The impact of human resource activities on employee trust", Human Resource Management Review, Vol. 7, pp. 389-404.

Whyman, P.B. and Petrescu, A.I. (2014), "Partnership, flexible workplace practices and realization of mutual gains: evidence from rhe British WERS 2004 dataset", International Journal of Human Resource Management, Vol. 25 No. 6, pp. 829-851.

Wood, S. (1999) 'Getting rhe Measure of rhe Transformed High-performance Organisation', British Journal oflndustrial Relations, Vol.37 (3): pp.391--417.

Wright, P. M. and Boswell, W. R. (2002), 'Desegregating HRM: a review and synrhesis of micro and macro human resource management research'. Journal of Management, Vol.28, pp.247-76.

Published

2019-01-30

How to Cite

The Effect of Human Resource Practices on Employee Loyalty: A Study of Banking Sector . (2019). IITM JOURNAL OF BUSINESS STUDIES (JBS), 5(1), 23–36. Retrieved from https://acspublisher.com/journals/index.php/jbs/article/view/16917