Submitted By:Amit Narayan ShresthaMBAApex College

HRM PRACTICES AND EMPLOYEE COMMITMENT IN NEPALESE COMMERCIAL BANKS

- A Graduate Research Project

BACKGROUND

Human resource management (HRM) refers to the policies and practices involved in carrying out the ‘human resource (HR)’ aspects of a management position including human resource planning, job analysis, recruitment, selection, orientation, compensation, performance appraisal, training and development, and labor relations. (Dessler, 2007).

Employee commitment can be interpreted as the employee’s long-term relationship and intention to stay in the workplace along with an unshakable belief in the goals and objectives of his/her organization, followed by a devoted effort to reach these goals (Steers, 1977).

OBJECTIVE OF THE STUDY

To identify the HRM practices those are used in commercial banks in Nepal.

To examine the relationship between HRM practices and employee commitment of Nepalese commercial banks;

To explore the impact of HRM practices on employee commitment of Nepalese commercial banks;

To suggest some measures in order to enhance the HR practices of the commercial banks.

RESEARCH HYPOTHESIS

H1: There is a significant relationship between recruitment and selection and employee commitment.

H2: There is a significant relationship between training and development and employee commitment.

H3: There is a significant relationship between motivation and employee commitment.

H4: There is a significant relationship between compensation and employee commitment.

H5: There is a significant relationship between performance evaluation and employee commitment.

H6: There is a significant relationship between information sharing and employee commitment.

H7: There is a significant relationship between career development and employee commitment.

THEORETICAL FRAMEWORK

Recruitment and Selection

Career Development

Performance Evaluation

Information Sharing

Compensation

Training and Development

Motivation

Employee Commitment

Independent Variables Dependent Variables

RESEARCH METHODOLOGY AND DESIGN

Research design

Descriptive Research

Quantitative Research Technique

Population

Employees of Nepalese Commercial Banks

Sampling

Convenience Sampling

120 sample

106 respondents

RESEARCH METHODOLOGY AND DESIGN

Instrumentation:

Self – administered Questionnaire

5 Point Likert Scale

Google Docs for online questionnaire

Data Collection Procedure:

Online via email

Drop and Collect

RESEARCH METHODOLOGY AND DESIGN

Analysis of data:

Statistical Package for Social Science (SPSS) software

Descriptive Statistics

Frequencies

Percentages

Bivariate Statistics

Mean

Standard Deviation

Correlation Analysis

Pearson Correlation Test

RESULTS AND DISCUSSION

Respondent’s Profile:

Gender wise participation of the respondents

Age wise participation of the respondents

Marital status of the respondents

Educational Qualification of the respondents

Male – 52% Female – 48%

20-30 – 60% 30-40 – 33% 40-50 – 7%

Single – 54% Married – 46%

Intermediate – 1% Bachelor – 50% Master – 49%

RESULTS AND DISCUSSION

Designation of the respondents

No. of years in current bank of the respondents

Executive – 29% Non- Executive – 71%

1-5 – 61% 5-10 – 30% 10-15 – 9%

RESULTS AND DISCUSSION

Descriptive Analysis:

Descriptive Variable Mean Value

Recruitment and Selection 3.2956

Training and Development 3.4214

Motivation 3.5000

Compensation 3.3208

Performance Evaluation 3.5220

Information Sharing 3.3113

Career Development 3.4308

RESULTS AND DISCUSSION

Correlation Analysis:

Level of significance – 0.01 (2–tailed test)Hypothesized Relationship Correlation P-value Conclusion

H1: RnS EC 0.348 0.000 Accepted

H2: TnD EC 0.415 0.000 Accepted

H3: Mot EC 0.366 0.000 Accepted

H4: Com EC 0.295 0.002 Accepted

H5: PE EC 0.343 0.000 Accepted

H6: IS EC 0.386 0.000 Accepted

H7: CD EC 0.404 0.000 Accepted

CONCLUSION

Employee perceive that HRM practices have significant relationship with employee commitment towards their organization.

All the variables have positive impact on employee commitment.

The most influential variables:

Performance Evaluation

Motivation

IMPLICATION OF THE STUDY

This study crafts a new literature by testing the most important variables that influences employee commitment.

Human Resource Department of Nepalese Commercial Banks would be benefitted from the finding of this study.

Researchers and other academic scholars would also be benefitted from the findings of the study.

SUGGESTIONS FOR FUTURE RESEARCH

Other HRM practices that affect employee commitment such as grievance handling, HR planning, labour relationship, employee security, team activities, etc. could be used to assess the employee attitude (in form of employee commitment).

Similar research could be conducted for other sectors (NGO/INGOs, Industrial sector, etc. )

THANK YOU