The Impact of Human Resource Practices on Employees’ Intention to Stay and Organisational Commitment in the IT Firms

Author Name(s): Amir H. Khan, Shravan J. Chandak, Param Agrawal
Author Email: khanah@rknec.edu

Abstract

The growing body of knowledge is supporting the impact of human resource (HR) practices on employees’ intention to stay and organizational commitment. The purpose of the study is to contribute in the existing knowledge by analysing the HR practices of the IT sector. The existing literature is reviewed in the light of this topic to identify key factors affecting employees’ intention to stay and their organisational commitment. Factors were identified such as employees’ fit to the organisation, remuneration, training and career development practices, appraisal, reward and motivation to test the impact on employees’ intention to stay and their organisational commitment. The study was conducted in different phases using quantitative methods. Snow ball and convenience sampling were used to collect the data from IT sector employees. The present study has identified several empirically developed dimensions and also ensures the validity and reliability of these dimensions. After applying regression analysis, the impact of selected components was tested on employees’ intention to stay and their commitment level towards the organisation.

Keywords Commitment, HR Practices, Intention, Loyalty

Introduction

An immense literature has been published highlighting the association of human resource practices in commitment level and intentions of employees to stay in the organization. MacDuffie (1995) emphasized on three conditions with respect to the contribution of innovative human resource practices in the economic performance of the organization: Skills and knowledge possessed by the employee; motivation of the employees to execute this skill and knowledge with freedom; Productivity can only be achieved with such discretionary work. David E. Guest, 1997).Every organization expects outcomes from human resource practices in terms of highly committed, flexible and skilful employees (David E. Guest, 1997). The commitment level of employees towards the organization can be measured with the help of the definition proposed by Porter and Steers (1982) mentioning that the major indicators of commitment of employees are desire to belong and willingness to do things for the organization. (David E. Guest, 1997).Therefore, it is necessary to measure impact of HR practices on employees’ commitment level and intention to stay.

Conclusion

The result of the study has validated the concept that effective human resource practices are major influencer among IT employees’ belongingness towards their organisations. The study has shown that employees are more satisfied towards recruitment & selection practices of IT organisations compared to other practices which need significant attention and refinement. The employees’ intention to stay and commitment are largely dependent on the values and recognition given by the organisation to their employees. The study signifies that human resource practices should be given attention as strategic planner in the organisation as it contributes major part in the employees’ intention to stay and commitment towards the organisation. The study also contributes in the current literature of human resource practices.

313 total views, 1 views today

Download PDF File

About the author: admin