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Abstract
This research investigates the relationship between Human Resource Management Practices and Organizational Commitment (A survey of selected manufacturing firms in Port-Harcourt.). The study utilized a survey research design in which population which consists of all employees of selected manufacturing firms in Port-Harcourt, a total of 120 workers. The sample was driven from the population using Taro Yamene formula for sample size determination with 5% confidence level in which a total of 92 employees was driven out of the population and questionnaires administered according to the sample. The questionnaire addressed the extent to which Human Resource Management Practices influence Organizational Commitment of selected manufacturing firms in Port-Harcourt. Data collected were presented using tables and analyzed using simple percentage. The study found that, for Organizational Commitment, recruitment and selection, training and development, and compensation and employee benefits were suitable tools to enhance organizational Commitment and have great impact on it. The study therefore requires that managers should put in place all these factors in order to improve organizational Commitment.
TABLE OF CONTENTS
TITLE PAGE – – – – – – – – – I
ABSTRACT – – – – – – – – – II
CERTIFICATION – – – – – – – – III
DEDICATION – – – – – – – – IV
ACKNOWLEDGEMENTS – – – – – – – V
TABLE OF CONTENT – – – – – – – VI
CHAPTER 1: INTRODUCTION
1.1 Background of the Study – – – – – – – 1
1.2 Statement of the Problem . – – – – – 6
1.3 Objectives of the Study – – – – – – 8
1.4 Research Questions – – – – – – – 8
1.5 Significance of the Study . – – – – – 8
1.6 Scope of the Study . – – – – – – 9
1.7 Limitation of the Study – – – – – – 10
1.8 Definition of Terms – – – – – – 10
CHAPTER 2
LITERATURE REVIEW
2.1 Conceptual Framework – – – – – – 12
2.2 Theoretical Framework – – – – – – – 31
2.3 Empirical Review Of Related Literature – – – 34
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design – – – – – – – 38
3.2 Population OfThe Study – – – – – – 38
3.3 Sample And Sampling Technique – – – – 39
3.4 Questionnaire Design – – – – – – 40
3.4 Method Of Data Collection – – – – – – 40
3.6 Method Of Data Analysis – – – – – 41
CHAPTER 4
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation – – – – – – – 42
4.2 Data Analysis – – – – – – – 46
4.3 Discussion of Findings – – – – – – 48
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary – – – – – – – – 51
5.2 Conclusion – – – – – – – – 51
5.3 Recommendations – – – – – – – 52
References – – – – – – – – – 53
Appendix I – – – – – – – – – 57
Appendix II . – – – – – – – – 58
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organizational Commitment is a voluntary dynamic issue which has a mutual relationship with the human resources management practices for the purpose of achieving definite outcomes (Ghabamosi, 2003). Cascio (1992) suggests that today’s organizations must gain competitive advantage through the effective utilization of their human resources. Palmer (2006) stressed the fact that the practices of the human resources management do influence organizational commitment.
Organizational commitment predicts the attitude of the individual towards the organization. It also forms the basis for the individual’s love of work, and indicates his/her loyalty towards the organization. Also, this commitment is a desirable behavior favored by managers especially when it is translated into actual behavior. The concept of organizational commitment has attracted considerable attention over recent years, and has become a central objective of human resource management (Al-Hawary&Alajmi, 2017).
There is an increasing trend whereby organizations are developing an interest in promoting commitment among employees so as to benefit from the resulting boost in employee performance as well as reduction of employee turnover. Organizational commitment (OC) is one of the measures or a standard that affirms whether the HR practices in companies can cultivate mental connections amongst firms and the objectives of the employees (Sendogdu, Kocabacak, &Guven, 2013). The strategies of the organization should be aligned with the HR practices and are represented by strategic HRM (Tang, Wei, Snape, & Ng, 2015). Bresciani, Ferraris and Giudice (2018) proclaimed that in today’s era the organizations are being affected by the technology and “Internet of Things” in order to secure the value in businesses.
The multidimensionality of Human Resource (HR) practice allows organizations to accomplish the corporate and personal objectives and therefore the approach of the Human Resource Management (HRM) plays a pivotal role in the success of the company. In order to establish a competitive advantage, organizations have a paramount need to create an edge or a dominance that can be sustained over a long period of time (Noe, Hollenbeck, Gerhart, & Wright, 2007). HRM has the capacity of influencing the organizational behavior of the employees, and by the means of which, it ensures the achievement of the corporate objectives (Nishii & Wright, 2007). In line with the company objectives, HRM focuses on improving and optimizing the performance of the various strategic business units. Fundamentally, HRM not only strives to mentor the employees but also determines the need for skill acquisition; thereby empowering these individuals for a long-term organizational commitment (OC) (Storey, 2007). Diversity at work place has posited a challenge for both multinational companies (MNCs) and local large-scale firms as they strive to implement diverse administrative methodologies and systems (Dupuis, 2014; Savaneviciene&Kersiene, 2015). With the growing concerns of international business and global competition, complexities within the organization and other various malady have led the MNCs and local large-scale firms to validate HRM practices throughout the firm.
HR practices are critical in execution of effective training to the employees, enhancing their inspiration through compelling reward strategies and reinforcing the enrollment and determination process. Global competition has compelled the convincing powers behind organizations to embrace HR practices. Academic researchers have demonstrated that HRM positively influences firm performance which leads to OC (Naz, Aftab, &Awais, 2016; Stavrou& Brewster, 2005).
The current business environment is characterized by dense uncertainty, instability, as well as radical change in the presentation of various challenges (Masa’deh et al., 2015, Orozco et al., 2015). Increased globalization, tremendous technological revolution (Shannak et al., 2010; Masa’deh, 2013), and the rapid growth of the need for qualified employees and improvement of performance are some of the environmental factors affecting the operation of organizations (Masa’deh et al., 2016; Obeidat et al., 2016). It is for this reason that organizations stretch to its limits to utilize the resources at their disposal so as to gain a competitive advantage in such environment (Al-Azmi et al., 2012; Alshurideh et al., 2012; Altamony et al., 2016; Almajali et al. 2016), exploiting their knowledge management systems (Kanaan et al., 2013; El-Masri et al., 2015; Masa’deh et al., 2017) and encouraging exceptional customer services and innovation practices (Hajir et al., 2015; Obeidat et al., 2016).
HRM as a function of management has come a long way. The traditional version of HRM, Personnel management (PM) is a concept that can be conveniently related to the old model of organization, is bureaucratic in nature, with less flexibility, and higher degree of centralization and formalization, i.e., adherence to rules and regulation. HRM, on the other hand, is compatible with the organic design of new organization. Such organizations have cross-functional and cross hierarchical teams. They are decentralized and flexible, with low formalization and somewhat looser control. The new look HRM focuses more oncommitment than on mere compliance. With the high costs involved in employee selection and recruitment, companies are increasingly concerned with retaining employees. Generating employee commitment is an important consideration for large and small organizations. Commitment is one of the factors of HRM policy for an effective organization. Many major reviews of commitment theory and research are available (Mathieu &Zajac, 1990; Meyer & Allen, 1991, Meyer &Herscovitch, 2001). Meyer and Allen(1991, 1997) compiled a list of definitions and analyzed the similarities and differences. Thesimilarities served as the basis for a definition of what they considered the “core essence” of commitment: “Commitment is a force that binds an individual to a course of action that is of relevance to a particular target”.Meyer and Allen (1997) proposed a three-component model of organizationalcommitment – affective, continuance, andnormative commitment. This model has beensubjected to the greatest empirical scrutiny andhas arguably received the greatest support.(Meyer & Allen, 1997; Meyer, Stanley,Herscovitz&Topolnyutsky, 2002,). Affectivecommitment describes an alignment thatemployees feel between their organization andtheir personal value systems and desires. Thecontinuous commitment refers to a statewhereby employees are bound to theirorganization to the extent they “have to be”due to the benefits associated with stayingversus the personal costs associated withleaving. Finally, the normative componentrefers to commitment based on a moral beliefor obligation that “it is the right and moral thing”to remain with the organization. Each type ofcommitment ties the individual to theorganization in different ways and willdifferently affect the manner in which theemployee conducts him/herself in theworkplace (Meyer et al., 2002).
It has been found that three dimensions ofcommitment are related significantly tomany work-related outcomes. According to Allen &Meyer (1996) it is only affective and normativecommitment, which is found to be positivelyrelated with job performance and organizationcitizenship behavior (Organ & Ryan, 1995) andnegatively correlated with W-F and F-Wconflicts (Casper et al.,2002). On the otherhand, continuance commitment is negativelyrelated with performance and other work-related outcomes (Meyer & Allen, 1997).
Human resources are among the most valuable assets that organizations can ever have to work towards achieving a competitive advantage. Othman (2009) argues that organizations can overcome the challenges that they face by using human resources in strategic manner. Therefore, it goes without saying that organizations have a huge role to play in managing the human resources they have. Different practices are essential in the management of human resources; such practices aim at creating and sustaining performance desired by the organizations as they are influential in determining the attitudes and employees’ behavior (Armstrong, 2013). Furthermore, organizations look forward to developing a committed workforce as well as retaining their employees. The behavior of an organization can be improved by working on such areas as the commitment of staff members, their competency as well as the organization’s human resource management flexibility. Studies suggest that human resource management practices have a significant role to play in determining the commitment of employees (Alkalha et al, 2012; Vratskikh et al., 2016). Such practices are: selection, recruitment, training and development, appraisal of performance, development of teamwork, as well as compensation and reward.
1.2 STATEMENT OF THE PROBLEM
Nyambegera et al.,(2014) asserts that by matching human resource management with strategy, the critical human resource skills, attitudes, behaviours‟ andperformance that are needed to successfully implement strategies can be acquired, developed and motivated and effective and thus contribute to the organizations bottom line.
Disorganized change and turbulence is one of the main cases of among manufacturing firms in Port-Harcourt. Workers turnovers symbolize one of the critical problems ofmanufacturing firms in Port-Harcourt in term of loss the talented employees, furthermore high training cost and selection cost.
The cost a turnover put in a huge sum of money into an organization expenses. Well including productivity loss, hiring and cost of training.
Current organizational issue faced by the bosses include draw out commitment in the employees and team retention, the companies higher cost for the selection and recruitment, the productivity loss and log during assimilation period time (Davies, 2002).
According the theory of organizational support employee shape totally beliefs regarding extent of the company values by their own contribution and care their happiness. The only way the employees might approach in to convince in this indebtedness are through better emotional commitment to the company and better efforts to help thecompany.The problem targeted in this study is to observe whether there are relationships between human resource management practices and organizational commitment (OC).
1.3 OBJECTIVES OF THE STUDY
The objective of the study is to examine the relationship that exists between Human Resources Management practices and organizational commitment. Other specific objectives include:
1. To examine the impact of recruitment and selection on organizational commitment.
2. To ascertain the effect of training and development on organizational commitment.
3. To determine the impact of compensation and employee benefits on organizational commitment.
1.4 RESEARCH QUESTIONS
1. To what extent does recruitment and selection affect organizational commitment?
2. To what extent does training and development affect organizational commitment?
3. To what extent do compensation and employee benefits affect organizational commitment?
1.5 SIGNIFICANCE OF THE STUDY
The importance of human resource management in an organization cannot be overemphasized due to the fact that human beings are the driving force behind any organization. In this respect, the findings of this study will help manufacturing companies in Port-Harcourt articulate strategies‟ and to implement well-planned and well-thought out human resource ideas that will be implemented to coordinate and channel the human capital into increased employee commitment which will result in organizational productivity.
As a strategic business partner, human resources management can justify adequate funding for human resources activities. Funding for training, employee development, and competitive salaries and benefits packages strengthens the company’s position and competitiveness in attracting and retaining valuable talent and expertise.
This study will also act as a useful resource for those who will be undertaking research on issues related to human resource management practices and organizational performance of manufacturing firms in Port-Harcourt. The study is also a source for literature for future researchers.
1.6 SCOPE OF THE STUDY
(a) Content Scope: The research study is restricted to evaluate Human Resource Management practices and organizational commitment of manufacturing firms in Port-Harcourt.
(b) Geographical Scope: A survey study of these companies in respect to Human Resource Management practices and organizational commitment was specifically conducted in selected manufacturing companies in Port-Harcourt.
1.7 LIMITATIONS OF THE STUDY
In every research work, there must be challenges that the researcher must face, this study is not an exemption of that. The limitations of this study includes:
Short time frame: The major limitations that we faced in the course of carrying out this research study was the short time frame which prevented a very comprehensive study.
Tight academic time table:tight academic time table was another challenge as it was difficult balance between lecture time and research time.
Lack of adequate funds: was also a major limitation to the study as funds was not always available to us at the time it is needed and therefore caused a slowdown in the process.
Limited materials:Another limitation encountered by the researcher was the difficulties in obtaining enough materials and information relating to the topic under study as materials was few.
1.8 DEFINITIONS OF TERMS
HRM PRACTICES:Is a set of internally consistent policies and practices designed and implemented to ensure that a firm’s human capital contribute effectively to the achievement of its objectives.
RECRUITMENT: refers to the entire process or attracting a pool of candidates for job opening.
SELECTION:The Selection is the process of choosing the most suitable candidate for the vacant position in the organization. In other words, selection means weeding out unsuitable applicants and selecting those individuals with prerequisite qualifications and capabilities to fill the jobs in the organization.
TRAINING AND DEVELOPMENT:Training and development refers to educational activities within a company created to enhance the knowledge and skills of employees while providing information and instruction on how to better perform specific tasks.Training is for lower level staff while development is for higher level staff.
COMPENSATION AND EMPLOYEE BENEFITS: Compensation and benefits refer to the benefits a firm provides to its employees in exchange for their labor. Compensation refers to the monetary payments in form of wages or salary that the organization offers to their staff for job done. While employee benefits cover indirect pay. This can be health insurance, stock options, etc.
ORGANIZATIONAL COMMITMENT:Organizational commitment refers to the connection or bond employees have with their employer (the organization). Organizational commitment plays a pivotal role in determining whether an employee will stay with the organization for a longer period of time and work passionately towards achieving the organization’s goal.