Mediation of Perceived Organizational Support in the

Mediation of Perceived Organizational Support in

the relationship of HRM-Practices &

Organizational Commitment of Bankers in Khyber

Pakhtunkhwa (Pakistan)

Ph.D

Dissertation

Submitted by

Zia ur Rehman

Ph.D Scholar in Management Sciences

Supervisor

Prof. Dr. Allah Nawaz

Department of Management Sciences, Qurtuba University of

Science & Information Technology (QUSIT), Dera Ismail

Khan, Khyber Pakhtunkhwa, Pakistan

2018

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Pakhtunkhwa (Pakistan)

Ph.D

Dissertation

Submitted by

Zia ur Rehman

Ph.D Scholar in Management Sciences

Supervisor

Prof. Dr. Allah Nawaz

A Dissertation Submitted to the Department of Management

Sciences, Qurtuba University of Science & Information

Technology (QUSIT), Dera Ismail Khan, in Partial Fulfillment

of the Requirements for the Degree of Doctor of Philosophy in

Management Sciences

2018

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iv

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ABSTRACT

This study aims to investigate the mediating role of perceived organizational support

between HRM practices (recruitment & selection, training & development, performance

appraisal, career planning and compensation), and organizational commitment. The topic

was selected after preliminary study of the existing literature with a view to extract the

broader theoretical model of issue. From this mini-research, a conceptual model was

initially extracted to represent the issue with leading variables of human resource

management practices, perceived organizational support and organizational commitment.

Both secondary and primary data was used to explore the topic and examine the

relationships between different research variables. The secondary data was collected from

the existing research on the issue while field survey using questionnaire was applied to

collect primary data for the testing of research model. The data were collected from

employees of the selected six public/private sector banks in southern region of Khyber

Pakhtunkhwa, Pakistan. In total 225 questionnaires were distributed into the respondents

and 218 questionnaires were returned. The study has used a number of different statistical

techniques such as factor analysis, correlation analysis, mediation regression analysis, one

way ANOVA and t-test for analyzing the data. The results show that all human resource

management practices and perceived organizational support were positively and

significantly correlated with organizational commitment. Both of these variables also

predict the organizational commitment verifying the cause and effect relationship between

independent and dependent variables. In addition, perceived organizational support when

treated as mediator showed partial mediation between (recruitment & selection, training &

development, career planning, compensation) and organizational commitment. Full

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mediation has been established between performance appraisal and organizational

commitment. The demographic variables, designation, qualification, experience, gender

and marital status were also tested for examining mean differences among the groups. The

findings of this study have multiple implications for the banks, policy makers and future

researchers based on the results.

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ACKNOWLEDGMENT

A research project of PhD level is neither an individual effort nor accomplished without the

assistance, guidance and cooperation of others. These others include the parents, family,

supervisors, teachers, fellow researchers, respondents and many friends. This project is also

the product of collective efforts of several individuals and departments. Taking this

opportunity of documentation, I prefer to acknowledge the scholarly, psychological and

physical contributions of all concerned one by one.

I owe a huge debt of gratitude to the Almighty Allah, who created me with intellectual and

physical powers to live and learn in this world. God makes everything possible. Likewise,

parents deserve acknowledgements for many things, particularly, for their prayers for the

off-springs, which protect the kids from the odds. My family (parents and wife) have also

suffered a lot in the duration of this research project. They deserve appreciation for their

continuous support across the research project. God may bless all of them with the happiness

in this and the life hereafter.

The role of my supervisor (Professor Dr. Allah Nawaz) is unforgettable across the research

project. His academic guidelines, timely supervision and expert opinion consistently

supported me throughout the research process right from its inception to the final completion

and documentation of the findings into thesis. His skillful contributions made this research

technically possible and implemented according to the plans.

Besides the supervisor, all of my teachers (Prof. Dr. Rashid Rehman, Dr. Zubir and Dr.

Saifuddin) my fellow-researchers including Muhammad Adil, Mehran Saeed, Muhammad

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Tariq and my brothers Khalid Rehman and Sajid Rehman Babar made countless

contributions to the project of the researcher. During the process, I had to contact every

person to seek guidance at different stages of the research proceedings. Every person has

certain special knowledge and skills therefore researchers can capitalize on them as and

when required across the research. I also, document my special thanks to Dr. Faheem Khan,

Dr. Yasir Hayat, Dr. Abdul Waheed & Dr. Sajid Khattak, for their academic guidelines and

brotherly cooperation.

The major findings of this study consist of the empirical data, which was collected from 218

respondents (Bankers) whose relentless cooperation made it possible to assemble primary or

firsthand and fresh data on the topic. I appreciate their attitude for sparing time and taking

pain in filling a long and tedious questionnaire.

Zia ur Rehman

PhD Scholar in Management Sciences

Department of Management Sciences QUSIT, DIK, KPK, Pakistan

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ABBREVIATION

1. NBP: National Bank of Pakistan

2. BOK: Bank of Khyber

3. ABL: Allied Bank Limited

4. UBL: United Bank Limited

5. HBL: Habib Bank Limited

6. MCB: Muslim Commercial Bank

7. SBP: State Bank of Pakistan

8. OG-III: Officer Grade III

9. OG-II: Officer Grade II

10. OG-I: Officer Grade I

11. AVP: Assistant Vice President

12. KPK: Khyber Pakhtunkhwa

13. HRM: Human Resource Management

14. HRMP: Human Resource Management Practices

15. RS: Recruitment & Selection

16. TD: Training & Development

17. PA: Performance Appraisal

18. CP: Career Planning

19. COM: Compensation

20. OC: Organizational Commitment

21. NRC: Normative Commitment

22. AFC: Affective Commitment

23. CNC: Continuous commitment

24. POS: Perceived Organizational Support

25. DSG: Designation

26. QUA: Qualification

27. EXP: Experience

28. GDR: Gender

29. MS: Marital Status

30. IV: Independent Variable

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31. MV: Mediating Variable

32. DV: Dependent Variable

33. OP: Organizational Performance

34. EP: Employee Performance

35. TOS: Test of Significance

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TABLE OF THE CONTENTS

Chapter 1 INTRODUCTION ............................................................................................ 1

1.1 Statement of the Problem ........................................................................................... 3

1.2 Objectives of the Study .............................................................................................. 4

1.3 Research Questions .................................................................................................... 4

1.4 Significance of the Study ........................................................................................... 5

1.5 Research Hypotheses .................................................................................................. 5

1.6 Delimitations of the Study .......................................................................................... 6

1.8 Researh Contribution .................................................................................................. 6

Chapter 2 LITERATURE REVIEW ................................................................................ 8

2.1 Human Resource Management (HRM): Definitions .................................................. 8

2.2 Theoretical Overview of Human Resource Management ……….….……….………9

2. 3 HRM Practices ......................................................................................................... 10

2.3.1 Recruitment & Selection .................................................................................. 11

2.3.2 Training & Development ................................................................................. 12

2.3.3 Performance Appraisal .................................................................................... 14

2.3.4 Career Planning ............................................................................................... 16

2.3.5 Compensation .................................................................................................. 18

2.4 Organizational Commitment ................................................................................... 19

2.4.1 Affective Commitment .................................................................................... 21

2.4.2 Continuance Commitment ............................................................................... 22

2.4.3 Normative Commitment .................................................................................. 23

2.5 Perceived Organizational Support ........................................................................... 24

2.6 HRM Practices and Organizational Commitment .................................................. 26

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2.7 HRM Practices and Perceived Organizational Support .......................................... 27

2.8 Perceived Organizational Support and Organizational Commitment .................... 28

2.9 Demographic Impact .............................................................................................. 29

2.9.1 Designation……….……………………………………………..……….… ..29

2.9.2 Qualification…...………………..……..………………………………....... ..29

2.9.3 Experience…… ………………………..…………………………..…….......30

2.9.4 Gender……...………..……………………………..………………………...30

2.9.5 Marital Status..…………….………………………………………...……... ..30

2.10 List of the Working Concepts ............................................................................... 32

2.11 Conceptual Framework ......................................................................................... 34

Chapter 3 RESEARCH METHODOLOGY.................................................................. 36

3.1 Survey Approach .................................................................................................... 36

3.2 Population & Sample .............................................................................................. 36

3.2.1 Population .......................................................................................................... 36

3.2.2 Sample & Sampling ........................................................................................... 37

3.3 Measurement Scale ................................................................................................. 38

3.4 Data Collection Methods ........................................................................................ 39

3.4.1 Literature Survey ............................................................................................... 39

3.4.2 Field Survey....................................................................................................... 40

3.5 Consideration of Research Ethics ........................................................................... 40

3.6 Data Analysis Techniques ...................................................................................... 41

3.6.1 Descriptive Analysis…………………………………………………..……… 41

3.6.2 Inferential Analysis (Testing of hypothesis)………………………………..…42

a. Factor Analysis……...………………...…..………………..……………..……42

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b. Pearson Correlation………………………...………..…………………………42

c. Mediation Analysis ............................................................................................. 42

d. Test of Significance………………………...…………………………..………44

3.7 Operationalization of the Concepts ........................................................................ 46

Chapter 4 DATA ANALYSIS AND DISCUSSION ...................................................... 47

4.1 Demographic Information ...................................................................................... 47

4.2 Descriptive Statistics .............................................................................................. 53

4.3 Data Normality Statistics ........................................................................................ 54

4.4 Reliability of Questionnaire .................................................................................... 55

4.5 Exploratory Factor Analysis ................................................................................... 56

4.6 Testing of Hypotheses ............................................................................................ 63

4.6.1 Correlation Analysis (H1) .................................................................................... 63

4.7 Mediation Regression Analysis .............................................................................. 65

4.7.1 POS mediates the relationship b/w RS & OC (H2) .......................................... 65

4.7.2 POS mediates the relationship b/w TD & OC (H3) .......................................... 70

4.7.3 POS mediates the relationship b/w PA & OC (H4) .......................................... 74

4.7.4 POS mediates the relationship b/w CP & OC (H5) .......................................... 78

4.7.5 POS mediates the relationship b/w COM & OC (H6) ...................................... 82

4.8 Test of Significance ............................................................................................... 86

4.8.1 To find out the Mean Difference of research variables across DSG (H7) ........ 86

4.8.2 To find out the Mean Difference of research variables across QUA (H8) ....... 88

4.8.3 To find out the Mean Difference of research variables across EXP (H9) ........ 90

4.8.4 To find out the Mean Difference of research variables across Gender (H10) ... 92

4.8.5 To find out the Mean Difference of research variables across MS (H11) ......... 93

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Chapter 5 SUMMARY, CONCLUSION & RECOMMENDATION….………...…...94

5.1 Summary of the Study…………...……..………..…………...………....…...……..94

5.1.1 Discussion ........................................................................................................ 95

5.2 Conclusion…....……..…………...…………..……………..……………..……......99

5.2.1 Implication for Management ….……...……………………………..………100

5.3 Limitations of the study….…………...………...….………………….….…….…101

5.4 Recommendation for Future Research………………..…….……..………..….…102

References .................................................................................................................... 103

Annexure # 1 Questionnaire ......................................................................................... 134

Annexure # 2 Mediation Results .................................................................................. 138

Annexure # 3 Tables of Mean Differences .................................................................. 148

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LIST OF TABLES/FIGURES

Table 2.1 Definitions of the Working Concepts (Variables)............................................... 32

Table 2.2 Demographic Variables....................................................................................... 33

Figure 2.1 Schematic Diagram of the Conceptual Framework........................................... 35

Table 3.1 Population Framework…………… ……………… .......................................... 37

Table 3.2 The detailed description of Sample is given below ……………. ……….......... 38

Table 3.3 Response rate…………………………………….. …………… ………........... 40

Figure 3.1 Mediation Model (Source: Baron & Kenny, 1986)............................................ 43

Table 3.4 Operationalized Working Concepts ……………… ........................................... 46

Figure 4.1 Designation………………………………………............................................ 47

Table 4.1 Designation………………………. ……………… ........................................... 48

Figure 4.2 Qualification………………………………………...........................................48

Table 4.2 Qualification……………………… ……………… .......................................... 49

Figure 4.3 Experience...………………………………………........................................... 49

Table 4.3 Experience.............................................................….......................................... 50

Figure 4.4 Gender…….………………………………………........................................... 50

Table 4.4 Gender……………………………. ……………… .......................................... 51

Figure 4.5 Marital Status ………………………….…………........................................... 51

Table 4.5 Marital Status…………………….. ……………… .......................................... 52

Table 4.6 Descriptive Statistics……………… ……………….......................................... 53

Table 4.7 Data Normality Statistics…………. ………………........................................... 54

Table 4.8 Reliability………………………… ………………........................................... 55

Table 4.9 KMO & Bartlett’s test for HRM Practices …………….…................................ 56

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Table 4.10 Components Matrix of HRM Practices Items……….........................................57

Figure 4.6 Scree plot showing factor analysis for HRM practices…………………..........58

Table 4.11 KMO & Bartlett’s test for OC…………. ……………… ................................. 59

Table 4.12 Components Matrix of OC Items…...................................................................59

Figure 4.7 Scree plot showing factor analysis for OC……………………….................... 60

Table 4.13 KMO & Bartlett’s test for POS.………. ……………… .................................. 61

Table 4.14 Components Matrix of POS Items….……..…..….............................................61

Figure 4.8 Scree plot showing factor analysis for POS…………………….........................62

Table 4.15 Showing correlation between the research variables ..........................................63

Table 4.16 Model Summary………………….……………… .......................................... 66

Table 4.17 Coefficients…................................................................................................... 66




Table 4.21 Coefficients….................................................................................................... 68

Table 4.22 Sobel test or Normal Theory test...……………… ........................................... 69

Table 4.23 Model Summary………………….……………… ........................................... 70






Table 4.29 Sobel test or Normal Theory test...……………… .......................................... 73

Table 4.30 Model Summary………………….……………….......................................... 74

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Table 4.33 Coefficients…....................................................................................................76

Table 4.34 Model Summary………………….……………................................................76


Table 4.36 Sobel test or Normal Theory test...………………............................................. 77

Table 4.37 Model Summary………………….……………… ...........................................78


Table 4.39 Model Summary………………….……………… ...........................................79


Table 4.41 Model Summary………………….……………............................................... 80


Table 4.43 Sobel test or Normal Theory test...………………..............................................81

Table 4.44 Model Summary………………….…………….…...........................................82


Table 4.46 Model Summary………………….………………............................................83


Table 4.48 Model Summary………………….…………….…...........................................84


Table 4.50 Sobel test or Normal Theory test...……………..................................................85

Table 4.51 ANOVA…………………………………………….….………. ......................86

Table 4.52 Tukey HSD…………………………………………….………........................86

Table 4.53 ANOVA ……………………………………………………….........................88

Table 4.54 Tukey HSD .………………………………………...….….……......................88

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Table 4.55 ANOVA………………………………………… …….………........................90

Table 4.56 Tukey HSD…………………………………………….………........................90

Table 4.57 to check mean difference on Gender (t-test). …….............................................92

Table 4.58 to check mean difference on Marital Status (t-test)............................................93

1

Chapter 1 INTRODUCTION

Chapter one presents the introduction of the study by explaining the, statement of the

problem and research objectives, research questions and importance, research

hypotheses, delimitations of the study and research contribution.

The key objective of Human Resource Management (HRM) is to make sure the

organizational success through skilled and competent work force. To achieve this objective,

there is a need of hard and fast procedural of HRM practices may be followed such as

recruitment and selection, training and development, performance appraisal, career

planning system, employee participation and compensation system (Masood, 2010). The

basic purpose of HRM practices are to develop the employee’s behaviors, their attitude and

views to improve organizational effectiveness and desired results (Chew, 2004; Juhdi,

2011). Though, it is taken to the account that HRM practices are not same in every

organization, it is vary from organization to organization (Tiwari & Saxena, 2012).

In an organization, employees as a part of human resources are viewed as valuable asset that

lead the organization towards the accomplishment of its best performance (Wheelen &

Hunger, 2013). The workable management of an organization’s human resources has the

capacity to improve learning, motivation, team work and commitment, resultant in a source

of continued competitive advantage for the organization (Harter, Schmidt & Hayes, 2002).

Though, it is argued that controlling human resources is comparatively more challenging

than controlling technology (Tiwari & Saxena, 2012). HRM is utilized as a part of a

worldwide setting which comprises (a) particular human resource practices for example

recruitment, selection and appraisal (b) formal human resource strategies, which direct and

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partially constrain the advancement of particular practices and (c) key human resource

philosophies, which indicate the qualities that advise an organization's approaches and

practices (Gilley, Eggland and Gilley, 2002).

One of the purpose of HRM practices is to managing the pool of human resources in the

organization and make sure that the resources are utilized effectively towards the

accomplishment of organizational objectives (Schuler & Jackson, 1987). The term HRM

practices may be expressed as a set of consistent policies and practices that are designed and

executed to make sure that organization’s human capital contributes to the accomplishment

of objectives (Delery & Doty, 1996). An individual’s perception in HRM practice is the

degree of implementation of strategies and plans employed to motivate, develop interest,

reward and attract the best individuals to get the organizational goals (Dittmer, 2002).

According to Monody and Noe (2005) HRM practices are policies and strategies executed

by an organization to make sure employees work efficiently to achieve the organizational

goals.

Organizational commitment leads a worker to recognize himself with the organization. This

sort of mentality is the level of readiness of employee to keep working with organization. It

is likewise the level of conviction of workers which he or she tries to endeavors to achieve

the organizational objectives (Singh & Pandey, 2004). An assortment of definitions and

processes are accessible to get the commitment of the employee. It is taken as the

willingness to stay with an organization, readiness to contribute all activities for

organization, and faith in the organizational esteems, its central goal and culture which

created in the organization (Tella, Ayeni & Popoola, 2007). There are three types of

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organizational commitment including affective (the mental inclination and connection of a

representative to remain in the working environment socially and organizationally),

continuance (the cost-benefit assessment of whether to stay or leave), and normative (the

emotion of being obliged to remain in the organization because of good reasons) (Meyer &

Allen, 1997).

The term Perceived organizational support refer to the general perceptions of the employees

regarding the how much organization reward the efforts of employees and takes their

welfare seriously which based on a social exchange framework (Eisenberger, Huntington,

Hutchison & Sowa, 1986). The relationship between employees and organization is also a

sign of perceived organizational support because it examine the belief of the employees

regarding how much organization appreciate the employee’s efforts. Consequently, when

workers perceive that their efforts are fairly valued, the more they are committed to their

organization, which enable the organization to prevail upon the intended objectives

(Eisenberger et al., 1986).

1.1 Statement of the Problem

HRM Practices “determine the level of Organizational Commitment” however this

relationship is not straightforward rather mediated (explained) by several other

independent variables like “Perceived Organizational Support” to the employees.

This study explore this mediation happening among the workforce working in the

Banking Sector of Khyber Pakhtunkhwa, Pakistan.

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1.2 Objectives of the Study

The present study based on following objectives:-

1. To explore the relationship between HRM practices, perceived organizational

support and organizational commitment in the banking sector of KPK, Pakistan.

2. To test the mediating role of perceived organizational support between HRM

practices and organizational commitment.

3. To test whether differences across different demographic attributes of bankers

(designation, qualification, experience, gender and marital Status) are significant

or not.

1.3 Research Questions

1. Are the independent variable (HRMP: RS, TD, PA, CP, COM) and mediating

variable POS significantly correlated with dependent variable OC?

2. Is perceived organizational support mediate amongst the relationship of different

HRMP and OC?

3. Is there any significant difference in research variables across different demographic

attributes?

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1.4 Significance of the Study

The present study have great significance in banking sector particularly in Pakistani

Context. The quality of this research is to study the effect of HRM practices as a vital device

to make the workers more committed to their organization (Banks), which in turn would

influence employee goal to stay or leave the organization. This study also highlight the

importance of HRM practices and perceived organizational support and how HRM practices

and perceived organizational support influence employees commitment to the organization.

The present study is helpful for the Bank’s Mangers that organizational support and

effective HRM practices enhance the employee commitment to the organization and lead to

the organizational effectiveness. The present study is helpful for the Apex body to identify

which HRM practices is more effective for banking sector. This study is give basic data

about those HRM practices which effect worker recognitions. There are very little studies

has been conducted regarding impact of HRM practices on organizational commitment in

banking sectors in Pakistan. Thus, the result of the current studies is generated new

conclusion in Pakistan banking perspective.

1.5 Research Hypotheses

Following are the research hypotheses drawn from the research questions:-

1. Independent variable (HRMP: RS, TD, PA, CP, COM) and mediating variable

POS are significantly correlated with criterion variable OC. H1

2. Perceived organizational support significantly mediates the relationship amongst

(HRMP: RS, TD, PA, CP, COM) and organizational commitment. H2-H6

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3. There is statistically significant mean difference in research variables across

different demographic attributes. H7-H11

1.6 Delimitations of the study

The present study was delimited to:-

1. Those banks were selected for the present study whom located in southern districts

of Khyber Pakhtunkhwa.

2. Both public and private sector banks were included in the study.

3. Officers having designation OG-III, OG-II, OG-I and AVP were included in the

current study.

4. The study was delimited to five HRM practices included (RS, TD, PA, CP and

COM).

5. There are many ways to collect data in social sciences research, therefore

researcher was collected data through questionnaire.

1.7 Research Contribution

The current study has great contribution in filling the knowledge gape. Most of the studies

has been conducted in education sector. This study provide implicit knowledge in the field

of corporate and banking sector. There have been numerous researches studying the

relationship between (1) HRM practices and organizational commitment, (2) perceived

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organizational support and organizational commitment; there has also been a few research

on (3) HRM practices and perceived organizational support, but the question arises that how

does perceived organizational support play a mediation role. To seek the answer of these

questions, it was found that POS act as mediator between the HRMP and OC. This study is

an addition to the previous research studies in understanding the relationship between HRM

practices and OC. The study provides new dimensions in the research of management by

opening a debate on the importance of HRM practices, perceived organizational support and

organizational commitment. Besides HRM Practices, perceived organization support also

play a significant role in enhancing the employee’s commitment to the organization.

Perceived organization support strengthen the belief regarding employee’s commitment.

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Chapter 2 LITERATURE REVIEW

Chapter two reviews the literature on human resource management (HRM), theoretical

overview of HRM, HRM practices, organizational commitment (OC), perceived

organizational support (POS), relationship between the main research variables,

demographic attributes, the list of extracted variables and their framework is presented.

2.1 Human Resource Management: Definitions

Neo, Hollenbeck, Gerhat and Wright (2003) characterize HRM as the strategy, practices and

framework that effect the conduct, state of mind, and execution of staff; along these lines,

every single human resources practices must continue based on the stabilize strategies of the

whole organization’s performance. Heathfield (2000) defines HRM as the organizational

job that deals with issues connected with individuals for example remuneration, employing,

performing supervision, organization improvement, security, wellbeing, benefits, worker

inspiration, correspondence, direction and preparation. Also, Bratton and Gold (2003)

illustrate HRM as the key way to deal with employment relations which underlines that

utilizing individual’s ability is basic to accomplishing supportable competitive advantage.

As indicated by Armstrong (2006) the general reason for HRM is to guarantee that the

organization can make progress through individuals. Armstrong (2012) characterizes HRM

as a management tool, incorporated and reasonable way to deal with the business,

advancement and prosperity of the general population working in an organization. Mathis

and Jackson (2003) define HRM as the outline of formal frameworks in an organization to

guarantee the successful and proficient utilization of human ability to accomplish

organizational objectives. Senyucel (2009) define HRM as a combination of organization

practices that perceives workers as resources and adapted to making and keeping up right

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and devoted workforce for accomplishing organizational aims. Beardwell, Holden and

Claydon (2004) depict HRM as the philosophy, strategies, techniques and practices

connected with the managing of individuals inside an organization. Monody and Noe (2005)

basically consider HRM to be the usage of workers to accomplish organizational objectives.

2.2 Theoretical Overview of Human Resource Management

Previously, personnel departments have just regulated the business and removal of

organizational staff and completed wage strategies and controls over the welfare designs of

organizations (Dessler, 2001). With the rising significance of labor force, organization starts

to confront the part of human resource management inside an organization and grow its

business range to recruitment, settlement, training and development. Indeed, even today,

the part of human resource management has been transforming from the assessment of

learners to the creating of aggressive methodologies; they collaborate in the focused system

of the organization and end up one of the imperative elements to enhance organization

performance (Wang, Hwang & Lin, 2006).

According to Aldamoe, Yazam and Ahmid (2012) HRM play a significant role and hold

vital position in the organization. Good performance of the organization through its

employees is one of the key quality of HRM. The competitive prospect is continually being

changed and has been requesting new models of intensity which in turn require

organizational abilities that will empower the organizations to better serve their clients and

recognize them from their challengers (Ulrich, Halbrook, Meder, Stuchlik & Thorpe, 1991).

According to Bohlander and Snell (2009) the redefinition and redistribution of HRM

practices and function creates organizational abilities. Additionally, employees working in

the organization are assets and thus both coherent and cohesive theories in line with

10

organizational strategies are properly maintain HRM. From the point of view of Strategic

Human Resource Management (SHRM), strategies and practices can be commonly

implement and generate a solid effect on organizational objectives (Morris & Snell, 2010).

One of the unique and more well-known theoretical models utilized as a part of the SHRM

literature is the Behavioral Perspective. As they clarified, this theory concentrations on the

mediator impact on the association amongst strategy and organizational performance.

Moreover, another arrangement of well-known theoretical models being connected to

SHRM research is the utilization of cybernetic systems models. An agency/transaction cost

theory approach to investigate the issues of human swap are situated in the fields of finance

and economics (Wright & Mcmahan, 1992). The best practice way to deal with handling

individuals depends on Universalist principles that accept some HRM practices are suitable

for all organizations (Armstrong, 2009). Organizations should utilize their assets, including

intangible resources for example human resources to support their whole model and to be

superior to their competitor’s (Purcell, 1999).

According to Barney (1991) effective HRM practices is necessary for the organization in

order to survive in the market. Therefore, organization must use human resource effectively

to achieve their objectives within specific time to get maximum profit. Furthermore, HRM

is a key element that would validate the competitive advantage of organizations (Beauvallet

& Houy, 2010).

2.3 Human Resource Management Practices

According to Tiwari and Saxena (2012) HRM practices may be describe as all activities

which are performed in the organization directed at the managing the pool of human

resource and ensuring that all the resources are effectively utilized to achieve organizational

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goals. There are many HRM practices that organization effectively utilized. It start from the

bottom such as recruitment & selection, training & development and performance appraisal

which may be consistent, unified and consciously engaged. The organization first developed

long term employee commitment to the organization. For the present study, only five HRMP

(RS, TD, PA, CP and COM) were chosen. The reason for selecting these particular practices

was based on their relevance to the Pakistani public/private banks and having a very specific

link with organizational commitment.

2.3.1 Recruitment & Selection

The basic purpose of recruitment is to select qualified employees for the organization to

meet the satisfaction level of human resource of the organization (Fong et al., 2011).

According to Soliman and Spooner (2000) recruitment is necessary and hold a key position

in any Human Resource Management and its failure leads towards organizational

performance and negative effects on the organizational success and levels of employee’s

skills (Soliman & Spooner, 2000). There are different types of recruitment procedures such

as employee’s referrals, advertisement for jobs in newspapers, asking direct applications,

walk and interview, etc. (Rynes, 1991). To become a successful organization, they require

to select best people for the organization through core recruitment activities (Darrag et al.,

2010).

Organization using different methods while selecting candidate for the purpose of suitability

of particular position. These methods comprise face to face interview, penal interviews and

selection boards. The major purpose of those assessment method is to get information about

required skills related to the particular position from the candidate and suitability for the

particular position (Gerhart, 1999). One of the main objective of systematic recruitment

12

procedure is to identify or select the right person with required competencies to perform the

job effectively for accomplishing organizational goals (Pfeffer, 1994). The reason of poor

performance of any organization is the poor recruitment procedure. On the other hand,

systematic and transparent selection procedure identify the better and fit person for the job

in the organization (Fernandez, 1992).

As per Monody and Noe (2005) recruitment is a procedure of attracting people on a

convenient premise, in adequate numbers and with proper qualifications, building up their

attention for an organization and urging them to apply for job inside it. This shows obviously

that recruitment practices are not led lasting through the year but rather at an assigned time

when the need emerges. The need emerges because of empty positions made by the

individuals who left the service because of their retirement, withdrawal from the service or

different reasons. Through this procedure, efforts are made to notify the candidates

completely about the selection criteria of the required capabilities that will prompt valuable

performance, as well as career opportunities the organization can provide the employee.

Clear information of the job causes the potential workers to put in their best when utilized

on the grounds that it is just when you realize what you will do that you can understand how

to do it as well as how to do it best. The recruitment and selection process can be determined

through job analysis. A complete set of information about candidate for the suitability of

certain position through recruitment and selection process. These mechanisms help

committee member to pinpoint required aptitudes, state of mind, physical and mental

attributes that applicants must have (Terpstra & Rozell, 1993).

2.3.20Training0&0Development

The purpose of the training of the employees working in the organization is enhance their

13

skills and competences so that they perform their work effectively to achieve organizational

objectives (Fong, Ooi, Tan, Lee & Chong, 2011). Training is the main source of employee’s

development to improve their skills in the organization (Nordhaug, 1989; Gritz, 1993).

Every employee in the organization need training to perform effectively particularly

managerial positions (Baldwin & Padgett, 1994). Additionally, research confirmed that

training can enhance the competencies of the employees and increase their commitment

which results in improving the performance of the organization (Vlachos, 2009).

The training programs are conducted under the competent trainers who hired from inside

the organization or training agencies. There is no cost on internal trainer but it is not sure

that the objectives of the training will be achieved and it does not ensure that the delivery

of knowledge will be successful. On the other hand, hiring a trainer from agencies is costly

but it is ensures that knowledge will effectively deliver (Lim & Ling, 2012). The term

training is not simply means to train people in specific skills which they required but it also

to develop employee commitment to the organization and work (Storey & Sisson, 1993).

An effective training plays positive role to enhance employees’ retention because it

develops sense of responsibilities and strong organizational commitment (Kyndt, Dochy,

Michielsen & Moeyaert, 2009; Visser, 2001).

According to Liu (2004) training and development enhance one’s ability, and help workers

to accomplishment career development and improve work capability. Similarly, Chang

(1999) discussed that when organization provide adequate training programs employee will

be more satisfied and committed with the organization. Previous study done by Chughtai

and Zafar (2006) found that training and development have imperative correlation with

14

organizational commitment. This suggests that more training programs provided by

organization to their employees the more it helps to enhance the employee commitment

level. Likewise Chung (2013) also showed that the association between training and

organizational commitment is imperative. The findings also concluded that training

increases the employee satisfaction and commitment level.

According to Ahmad and Bakar (2003) training can be depicted as an arranged and effective

exertion of workers to accomplish successful performance in a movement or scope of

exercises. Then again Noe et al. (2003) communicated that development makes workers for

various places in the organization and constructs their ability to move into employments

later on. Subsequently, development is for the most part about arranging and getting ready

for the adjustments in the future in connection to new occupations, prerequisites and duties.

Concerning Lamba and Choudhary (2013) development is a viable workout of examining

and advancement by which administrative staff gain and utilize information, aptitudes,

mentalities and bits of knowledge to deal with their work productively and successfully. It

is basic for the administrative staff as a push to adapt up to the unpredictability of

organization and technological. The development likewise perceives their social and public

obligations.

2.3.3 Performance Appraisal

Performance Appraisal system is one of the most essential element between HRM practices.

Every organization develops appraisal mechanism to monitor the desired attitude and

behavior of the employee. On the basis of appraisal information, organization use the

information to change the selection and training practices in order to select and develop

employees with required attitude and behavior (Singh, 2004). Performance Appraisal One

15

of the important components that evaluate the employees’ performance and organizational

productivity in relationship to pre-determined objectives of the organization (Manasa &

Reddy, 2009). Main focus of HRM professional and managers of departments in the

organization is Performance Appraisal. The main purpose of performance appraisal is to

assess the individual and even the organization (Ebrahim, Robert & Terry, 2005).

Performance Appraisal possibly disturbs organization’s competence and execution. It has

been used as a tool for enhancing employee’s performance, distributing rewards and

enhance competencies (Ikramullah, Shah, Hassan, Zaman & Khan, 2011). It is one of the

old fashion of management that includes systematic procedures employed in the

organization to evaluate employees’ performance (Tripathi, 2001).

Performance appraisal develops the basis for various HR functions, setting of appropriate

standards of recruiting procedures and hiring, evaluating and promoting candidate through

those standards (Gibson, Harvey & Harris, 2007). Difference techniques are used to

measure the performance of the organization according to its culture. Every organization

set some standards to measure the employee performance. All stakeholders in the

organization such as administrative, subordinates and even clients are included in the

assessment procedure. Sometime performance appraisal is not conducted accurately

(Ebrahim et al., 2005).

According to Shahnawaz and Juyal (2006) performance appraisal help to enhance the

commitment level of employee. When employees are evaluated properly and fairly against

their work they feel satisfied and it enhances their commitment level. Similarly, another

study by Jehad and Farzana (2011) also showed that performance appraisal play significant

16

part in increasing employee commitment. The results also determined that fair performance

appraisal is necessary and play important part in the enhancing organizational commitment.

In addition, several studies support the notion that perception of fairness of performance

appraisal is closely related to employee’s commitment to their organization (Getnet, Jebena

& Tsegaye, 2014).

2.3.4 Career Planning

Career Planning considered as engaged way to become mindful of self, unique and

interchange decisions, results, desires and openings, distinguishing proof of career goals,

instruction, work and related formative experience to give the bearing, timing and

succession of ventures to accomplish a particular professional objectives (Hall & partners,

1986). Career planning is not a one-time activity but it is the continues process link with

human resource management structure of the organization (Leibowitz, Farren & Kaye,

1986).

Organizations can conduct workshops or instruments of career planning to assist employees

through which counseling strategies, workbooks can use to guide the employees to perform

career assessment, examine their career opportunities and preferences. Employees explores

their career aims and objectives and describe their execution plans in such kind of workshop

(Aelbaum, Ayre & Shapiro, 2002). Career planning must connection individual necessities

and objectives with organizational requirements and openings, assessing, guiding and

educating its staff on career planning, individual advancement efforts with training and

development programs. Regularly this match is not done, the organizations giving careful

consideration to its workers, career planning of the superior people with more noteworthy

17

open doors for advancement and not considering the execution potential workers (Popescu

Neveanu, 2003).

Career planning refers to the describing career objectives and to find the ways to achieve

them. It is the process of arranging the work of the individual. It is a tool used to motivate

employees to the work for the success of the organization (Wright & Snell, 1998). The

Career planning focuses on motivating employees towards the accomplishment employees

desired matched between employee’s objectives and organizational objectives. In other

words, career planning is the process of developing HR in order to improve the

organizational performance (Leibowitz et al., 1986). It is helpful to recognize the aptitude

and experience of the employees and then allocating them a job accordingly. People wants

to start their jobs in those organization where they have enough opportunities to follow their

professional objectives (Gardner, Wright & Moynihan, 2011). Its acts as a tool to motivate

employees towards work and the accomplishment of organizational objectives. It is a

cognitive process for allowing opportunities to employees in order to improve their skills

and to achieve both professional and organization (Snell, 1992).

In HRM, profession career planning to recognize necessities, provide opportunities for

individuals and to develop HR projects in order to help that profession. It is continues

process through which an individual develop his ideas and exposure because the aptitudes,

needs and aspiration of an individual frame his esteem. Career planning is observed an

effective process of concentrating on the development of employee’s aptitude and self-

assessment. The Career planning process includes both the organizational and the individual

obligations. Hence, the people must distinguish their desires and capacities through

18

appraisal and advising to comprehend their requirements of preparing and advancement; the

organization needs to recognize its needs and openings to design its workers and to

guarantee its staff the important data and proper training for career development

(Manolescu, 2003).

2.3.5 Compensation

Compensation is a critical sub framework in HRM. No other issue is more significant and

urgent to any worker than his or her monetary compensation. In developing countries of the

world, money is viewed as an inspiration and a motivation to building devoted, faithful and

committed workforce (Adeniji & Osibanjo, 2012). Many organization reward their

employees according to performance (Collins & Clark, 2003). In other words, Performance-

based compensation has positive affect the performance of the employees (Brown, Sturman

& Simmering, 2003). A successful HRM techniques is to incorporate performance and

compensation system that increase worker's will to work adequately and effectively

(Wright, 2003). Compensation can best be explained as including immediate and circuitous

pay people get in an organization in addition to different parts of the lovely workplaces that

fill in as passage their sense of pride and regard e.g. arrangement of auto stopping offices,

sound approaches, able supervision, open to working conditions, adaptable time, work

sharing, cafeteria and so forth (Adeniji & Osibanjo, 2012). Furthermore, study conducted

by Yaseen (2013) also showed that there is significant influence of compensation on job

satisfaction and organizational commitment. When employee feels that they are receiving

sufficient compensation, they stay longer in the organization.

Parker and Wright (2001) takes note of that in spite of the fact that compensation practices

are essential in inspiring and holding workers, they are as critical in drawing in futures

19

ability other than coordinate money related compensations, organizations need to stress

other much esteemed advantages, for example, family responsive advantages that

incorporate for instance adaptable working hours and day mind help.

Similarly, Barton (2002) showed that remuneration play significant role in attracting,

retaining and enhancing organizational commitment. Employees show positive attitude

toward organization when they receive satisfactory compensation. In the same way Saeed,

Nayyab, Lodhi, Baqir, Rehman and Mussawar (2013); Igbaria and Greenhaus (1992) stated

that compensation is positively associated with organizational commitment. When

employees receive adequate money from the organization, this leads to higher

organizational commitment. Another study by Eliyana, Yusuf and Prabowo (2012) also

revealed that compensation have important effect on enhancing organizational commitment.

When employees are not receiving sufficient money, they may have negative attitude

toward the organization. Thus, employee commitment will be stronger if they are satisfied

with the compensation.

2.4 Organizational Commitment

Every Organization has great concern in the developing of the employee’s commitment

because there are various advantages of the organization link with the employee’s

performance and decrease the ratio of employee turnover (Yew, 2013). Different schools of

thoughts give different definitions of organizational commitment. Imran and Ahamd (2012)

viewed organizational commitment as the strength of the identification of the employee and

his participation with a particular organization. In the light of numerous definitions

extracted from the related literature, organizational commitment can be explicated as a

20

worker’s bond with an organization and the firm conviction about the aims and endeavors

to achieve that aims as part of the organization (Zaitouni, Sawalha & Elsherif, 2011).

The term organizational commitment refers to individual affiliation towards work and

organization. It is the belief of readiness towards work in the interest of organizational

(Miller & Lee, 2001). According to Cohen (2003) commitment is employees’ feeling which

energies individual towards the accomplishment of objectives. Arnold (2005) viewed

organizational commitment level of employee participation and affiliation to the

organization. Mill (2003) describe that individual dedicate his effort to the work and to

accomplishment of organizational objectives.

The termed organizational commitment is viewed as continuous phenomenon about

employee feelings and attitude towards organization. It brings consistency and stability

which associated with achievements of organizational goals due to its broader consequences

(Perryer, Jordan, Firns & Travaglione, 2010). Persistent activities, which continually guide

the organizations towards accomplishment, are only workable when employees are

dedicated to their organization. Employee’s commitment is an emotional association of an

employee with the organization that joints around the amount of worker’s drive,

involvement, sincerity, and faith in the ideals and standards of the organization (Qaisar,

Rehman & Suffyan, 2012). Organizational commitment is widely explained in the

administrative and social sciences as a core issue in the link between workers and

organizations. The staff remains in the organization and they devotedly wish to maintain

their confident relationship with the organization and offer positive efforts to attain the

organizational objectives (Rehman, Shareef, Mahmood & Ishaque, 2012).

21

Many studies had been conducted regarding organizational commitment in different ways.

According to Mathieu and Zajac (1990) organizational commitment was comprised of two

elements which included attitudinal and behavioral element. The term affective

commitment comprise of values and belief which related to the organization whereas

behavioral commitment comprise of individual affiliation to the organization no matter what

the consequences. Additionally, there are three elements that comprise the organizational

commitment which involve belief of individual, value acceptance and organization

objectives. Though, one of the most important study conduct by Allen and Meyer (1990)

they identified that there are three (3) main components of organizational commitment

which include: 1) Affective commitment 2) Continuance commitment 3) Normative

commitment (Cistulli, Snyder & Jacobs, 2012).

2.4.1 Affective Commitment

Affective commitment is regarded to be the utmost studied constituent because of its

benefits linked with it as outstanding job performance (Newman & Sheikh, 2012). The term

affective commitment may be defined as emotional attachment of an individual because

individual desired to stay in the organization (Cho & Huang, 2012). The employee who

shows high level of affective commitment has also high rate of expectancy to stay in their

organization. If an employee have little attachment with organization then he/she also have

little emotionally involvement in the organization. In the event that an employee does not

have any feelings of having a place with the organization then they have somewhat

inclination to be candidly engaged with the organization. Affective commitment is the

positive connection of the workers with the organization. A committed employee identifies

the organizational objectives and desired to stay in the organization (Marmaya, Zawawi,

22

Hitam & Jody, 2011). Those employees who are committed to their organization have also

paly an effective contribution in the organization and active member of particular

organization. Emotionally committed employees feel happier in the organization because

they want to continue their services for the organization. They will mostly like to continue

their work for the organization when they have the same outlook as the organizational goals

(Choong, Wong & Lau, 2012).

2.4.2 Continuance Commitment

The term continuance commitment may be defined that employees knows about the

advantages and disadvantages of leaving the organization and as results, employee desire to

stay in the organization (Suma & Lesha, 2013). Though, if workers have experience the cost

of leaving an organization but unaware, then there is no continuance commitment exist

(Jaros, 2007). Continuance commitment developed apparent cost means gain again loss and

there is a need that employees should be aware about these gains and losses. Continuance

commitment refer to the willingness of worker to stay in the organization for the reason that

employee investment in the organization in the form of nontransferable and transferable

investment such as safe and healthy relationship with colleagues, compensations after

retirement, career opportunities and obtained work abilities which are distinctive to a

particular organization. Furthermore, period of employment that employee spent in the

organization, employee participation in the society extra benefits that makes difficult to one

leaving the organization and seek another (Adekola, 2012). Continuance commitment has

an important impact among all three type of organizational commitment on the performance

of an employee (Riaz & Farooq, 2010). Continuance commitment is the result of the notion

of benefit, connected by means of remaining in and the notion of cost allied by leaving an

23

organization. If an employee differentiates that the cost of leaving is much more than the

benefits of continuation in the organization, then the individual will plan to stay rather than

to resign. Continuance commitment is the substantial benefits gained from being with the

organization (Akintayo, 2010).

2.4.3 Normative Commitment

Normative commitment is acknowledged when workers think that they have to work for

organization on the basis of ethics and the thoughts of deserting the organization does not

appeal to them (Sayğan, 2011). Several researchers in the field of social sciences have

defined normative commitment likewise as a feeling of moral commitment to be the part of

an organization (Zaitouni et al., 2011; Cho & Huang, 2012; Saxon, 2012). Moreover,

normative commitment originates when workers are satisfied that they should perform the

particular job (Qaisar et al., 2012). Normative commitment refers to the sense of

responsibility to stay in the organization. The workers in the organization working with the

sense of responsibility. The workers focuses on and stays with an organization because of

feelings of commitment. For instance, the organization may have financed capital in

readiness of a worker who at that point feels an obligation to advance and use vitality in the

work and stretch out with the organization to reward the commitment. It shows the sign of

an individual inward standard which creates in the start of a worker activity in an

organization in the course of a group of other course of socialize activity that one might be

honest to his organization (Saifuddin & Nawaz, 2012). The decision to leave or stay in the

job is actually depends upon the individual employee’s belief of the precise and moral thing

to do for the advancement of an organization. If an employee thinks that one should be

24

sincere with one’s host organization then one should stay in that particular organization

(Choong et al., 2012).

2.5 Perceived Organizational Support

Perceived organizational support has developed an interest among scholars in field of

psychology and management (Rhodes & Eisenberger, 2002). POS is described that

organization is support and cares the employees about their well-being (Eisenberger et al.,

1986). It is also defined as how much organization gives values to employee’s effort and

care of their welfare (Allen, Armstrong, Reid & Riemenschneider, 2008). The major aim of

the POS is to provide supportive environment and constructive outlook in order to enhance

the employee’s commitment to the organization. It is the system of reward, supervisory care

and positive work environment shows the strong relationship to the perceived organizational

support (Rhoades & Eisenberger, 2002).

Additionally, strong the perceived organizational support is leads towards the maximum

success in the achievement of the objectives (Eisenberger et al., 1986). In the view point of

organizational support theory, high level of organizational support, employees shows their

effort to assist their organization to achieve its objectives because organizational support

has great effect on the job satisfaction and organizational commitment (Edmondson &

Hansen, 2009).

According to Shore and Wayne (1993) high level of organizational support has positively

effect on the employee’s commitment to the organization. If employee received continuous

organizational support, it has positive result on the organizational performance and

commitment of employees to the organization (Eisenberger et al., 1990). If workers

25

perceived that organization has no interest in their well-being, then it’s negatively effect on

the employee’s commitment (Whitener, 2001). When organization appreciate and recognize

the employee’s efforts and provide supportive environment which positively related to

organizational performance and enhance the commitment of the employees to the

organization (Allen, Shore & Griffeth, 2003).

Organizational support theory professes that workers has the opinion during their job that

how much organization values their services to the organization and in the same way how

much organization cares their welfare. Moreover, employees perceived that how much

organization honor their contribution and prompt response to their social and emotional

needs. For example, when employees get proper training and an appropriate pay for their

assistances, employees will perceive a higher degree of organizational obligation for it will

develop positive approach in employees towards their organization as it decently treated

them (DeConninck & Johnson, 2009). It is opined that employees get assurance of the fair

dealings after the organization undertakes intentional constructive actions to enhance

professed organizational backing, and employees’ professed organizational support secures

their organizational commitment (Loi et al., 2006).

According to Allen et al. (2003) workers with high level of perceived organization support

shows high rate of attendance, work execution, OCB, job satisfaction, and affective

commitment to an organization. Furthermore, those workers show high performance and

response with positive attitude like trust on organization who treated fairly by the

organization. Employees who perceived organizational support have high sense of

belongingness and they desire to stay in the organization (Meyer & Allen, 1991). There are

26

many several studies treated POS as mediator variable (Nasurdin, Hemdi & Guat, 2008;

Hemdi, 2009; Guchait, 2007; Meyer & Smith, 2000; Tan, 2008; Dinc, 2015).

2.6 HRM Practices and Organizational Commitment

Effectual HRM gets quality workers, inspires them to expand performance and helps to

meet their psychological and communal desires. This prompts long heave associations with

talented and cheerful representatives (Stewart & Brown, 2011). HRM centers on individuals

in organizations. Individuals are a noteworthy segment of any organizations so

organizations with more profitable workers have a tendency to be more effective. Worker

output rises when organizations appoint and encourage workers successfully. In addition,

good HR practices make more fulfilled workers (Stewart & Brown, 2011). It is basic that

administration holds its best workers and keeps them focused on the organization with a

specific goal to draw in other quality worker's (Zaitouni et al., 2011). With the high budgets

involved in a worker recruitment and selection, organizations are progressively worried

about holding workers. Creating worker commitment is a vital thought for vast and little

organizations. Commitment is one of the components of HRM approach for a successful

organization (Shahnawaz & Juyal, 2006). The commitment and inspiration build through

very much outlined HR practices can lead high performance of workers. Particularly

creative HR practices increment the commitment of workers and help them to accomplish

the objectives of the organization. The satisfaction of workers with HR practices produces

the commitment of workers towards the organization (Kumar & Krishnaveni, 2008).

Moreover, Guest (2002) found that employee’s high level of commitment to the

organization is positively correlated with appropriate HRM practices. Organizational

commitment is the outcome of appropriate HRM practices. Appropriate HRM practices and

27

policies results the high level of employee commitment and organizational performance.

Ulrich (1997) found that there is positive and significant correlation between HRM practices

and organizational commitment. According to Rao (1999) good HRM Practices improves

the three Cs (Competencies, Commitment and, Culture). He further pointed out that one of

the function of the manager is to keep touch with employees of his organization and aware

about the HRM system, its tools and different intervention ways to uplift the motivation and

commitment of the employees. Past studies also found positive and significant association

between HRM practices and organizational commitment (Ming-Kuen Wang & Hwang,

2012; Imran & Ahmed, 2012; Warsame, 2015; Suifan, 2015).

2.7 HRM Practices and Perceived Organizational Support

Eisenberger et al. (1986) proposed that perceived organizational support may be enhance

through different ways such as pay, imputes and other different approaches. Supportive

HRM practices and POS positively impact on the employee’s commitment (Wayne, Shore

& Liden, 1997). If favorable and supportive condition are set for the employee which reflect

high level of employee involvement that strengthened the POS (Rhoades, Eisenberger &

Armeli, 2001). At the point when an organization favors workers involvements and support

workers, positive connections exist among advancement, created understanding and

perceived organizational support (Allen et al., 2003). When organization recognize and

appreciate the efforts of employees which leads towards the high commitment of employee

to the organization. There is no doubt that employees don’t aware about the organizational

objectives, so it is necessary for the organizational to develop sense of HRMP (Whitener,

2001; Allen et al., 2003). Organization may accept a high-commitment procedure including

business practices, evaluation, intensity, reasonable remuneration and complete preparing

28

and improvement keeping in mind the end goal to influence workers to have high

commitment and inspiration (Whitener, 2001). Previous research Meyer and Smith (2000);

Wayne et al. (1997) have found positive relationship between selected HRM practices and

perceived organizational support. Additionally, there is statistically positive relationship

between HRMP and POS (Nasurdin et al., 2008). According to Allen et al. (2003) high POS

is resulted high rate of involvement effective work implementation, work fulfillment and

sense of belongingness to the organization. Another viewpoint given by Hemdi (2009) that

there is a strong positive relationship between HRMP and POS.

2.8 Perceived Organizational Support and Organizational Commitment

Employee global belief related to organization values their efforts and contributions and

care their needs refer as perceived organizational support (Eisenberger et al., 1986).

Additionally POS viewed as common perception of employees related to organization cares

their welfare and support their well beings (Eisenberger et al., 1990). According to social

exchange theory POS is an originator of organizational commitment. In this manner

representatives tend to look for an adjust in their exchange associations with their

organizations, by having their state of mind and practices in view of their manager's

responsibility regarding them independently (Eisenberger et al., 1990). As per Rhoades et

al. (2001) when workers observed that they are being honored and appreciated about by the

organization, they are probably going to feel pleased with their participation in the

organization. Accordingly they are probably going to understand the organizations gain or

losses as their own, and will probably assume the qualities and standards of the organization.

Workers self-personality would be incorporated with the organization. Hence, workers

confronting high sums of perceived organizational support would be all the more eager to

29

dedicate more exertion in the interest of the organization (as reflected in organizational

commitment). Additionally, since perceived organizational support mirrors a workers

assessment of one's status inside the organization, the degree to which that status satisfies

one's social and enthusiastic needs will make a commitment to the organization as well as

a feeling of solidarity with the organization, including the joining of organizational

participation. Subsequently, worker's want to stay with the organization (emotional

connection) will be upgraded (Rhoades et al., 2001).

2.9 Demographic Impact

In this study, following demographic features of the Bankers were documented and used to

test the hypotheses of their possible impacts with different Designations, Qualification,

Experience, Gender and Marital Status.

2.9.1 Designation

Designation is a position hold by the employee in the organization. There are different

designation in the organization which means higher designation refer higher position with

huge salary and facilities and particularly control over the human and non-human resources

(Nerison, 1999; Linz, 2003; Eliason, 2006). It is a fact as well that the folks on high positions

demonstrate more obligations to their organization instead of those who are serving in low

ranks. The organizations must communicate such strategies towards their low rank workers

which may enhance them in many respects to improve their organizational commitment

(Nawaz & Kundi, 2010).

2.9.2 Qualification

A worth or achievement that makes an individual fit for a specific job or task is called

qualifications. The literature indicates that highly qualified people are considered more

30

dedicated as compared to those who are low qualified (Akintayo, 2010). If workers thinks

that his profession matches to his qualification, and skills then definitely he is satisfied.

Therefore, organization may appoint employees according to their required qualification and

skills so organizational objectives easily be achieved (Bajpai & Srivastava, 2004).

2.9.3 Experience

It is generally understood that senior workers are more satisfied than the younger ones

because of the reason that senior workers get develop as far as adjust with the work and

workplaces (Sokoya, 2000). The evidence depicts that experience and age are valued for the

promotion, benefits and rewards in the organization. In Pakistan, promotion, benefits and

rewards and upper wages are directly proportional to the seniority. This proportionality can

be linked with the employee satisfaction by applying this behavior in the practical field

(Tirmizi, Malik & Mahmood-ul-Hasan, 2008).

2.9.4 Gender

One of the most widely and frequent demographic variable used in social research is gender.

Numerous studies examined the effects of gender on the organizational commitment, job

contentment, efficiency, absenteeism and plan to quit the job (Balay & Ipek, 2010). As

conventional organizations are man oriented, women serving in the organizations are

considered to be less dedicated. Alternatively if female and male work together in the

organizations, the level of performance and production are boosted. Similarly, the graph of

organizational commitment also outshines. Some of the reasons behind it, are the sense of

competition, high feedback due to higher attendance and better proficiency (Kargar, 2012).

2.9.5 Marital Status

The state of being married or unmarried is refer as marital status of both sexes. Married

people are more faithful to their organization than bachelor. Married people have more

31

family responsibilities and need more determination and security about their works. Hence,

they are likely to be more faithful to their organization; they are working in, as compare to

their bachelor (Ahmed, Nawaz & Iqbal, 2010).

32

2.10 List of the Working Concepts

Table 2.1 Definitions of the Working Concepts (Variables)

Variables Definitions Code

1 Recruitment &

Selection

The process of attracting and choosing candidates

for employment. RS

2 Training &

Development

Training & development is a program that enables

workers to learn particular information or abilities

to enhance performance in their present parts.

TD

3 Performance

Appraisal

A formal system of appraising, assessing and

impacting a worker's occupation related to their

traits, attitude and behavior and output.

PA

4 Career Planning

Career Planning is the progressing procedure where

you: Explore your interests and capacities;

Strategically design your profession objectives; and.

Make your future work accomplishment by

planning learning and activity intends to enable you

to accomplish your objectives.

CP

5 Compensation An advantage or profit gained from something. COM

6 Organizational

Commitment

The extent of disposition to utilize one’s effort for

the organization goals. ORC

7 Normative

Commitment

The feeling of being obliged to remain in the

organization in view of good factors. NRC

8 Affective

Commitment

The psychological feeling and connection of a

worker to remain in the work environment socially

and organizationally.

AFC

9 Continuance

Commitment

The cost-benefit assessment of whether to remain or

leave. CNC

10

Perceived

Organizational

support

How much organization reward the efforts of

employees. POS

33

Table 2.2 List of Demographic Variables

Variables Attributes Code

1 Designation OG-III, OG-II, OG-I, AVP DSG

2 Qualification Graduate, Master, MS/MPhil QUA

3 Experience (Yrs) 1-5 6-10 11-15 16-20 above 20 EXP

4 Gender Male & Female GDR

5 Marital Status Married & Unmarried MS

34

2.11 Conceptual Framework

In this study conceptual framework is generated from the existing literature regarding

mediating variable (POS) in the relationship between independent variable HRMP and

dependent variable (OC).

HRM practices and its relationship with organizational commitment have been extensively

studied in the literature. Many various studies depicts that positive relationship between the

HRMP and organizational commitment. Five HRMP have been studied in the current study

namely (RS, TD, PA, CP and COM). All those five practices is positively correlated with

employee commitment.

Another aspect of this study, POS act as mediating variable in the relationship between

HRMP and OC. Literature evidence depicts that supportive conditions and organizational

care play a dynamic role in enhancing employee commitment to the organization. There

are little studies are conducted in which POS act as mediating variable in the relationship

between HRM practices and OC particularly in banking sector.

Designation, Qualification, Experience, Gender and Marital Status also act as demographic

variable in the current study. There is significant difference in the organizational

commitment, POS and HRM practices across above demographic variables. From the

previous discussion, following conceptual framework is developed for the present study:-

35

Figure 2.1 Conceptual Framework of the present study

36

Chapter 3 RESEARCH METHODOLOGY

This chapter deals with research methodology of the present study. The chapter comprised

of survey approach, research philosophy, population, sample size, sampling techniques,

measurement scale, data collection, research ethics and statistical techniques which was

employed by the researcher for data analysis.

3.1 Survey Approach

A survey is an approach for gathering data from or about individuals to explain, compare or

clarify their information, mentalities and conduct. The overview approach incorporates

setting goals for information accumulation, outlining the examination, setting up a

dependable and substantial review instrument, directing the study, overseeing and breaking

down study information, and announcing the outcomes (Fink, 2003). In social research

methodologies, researcher gathered primary data through different instruments such as

questionnaire and interviews from the people regarding their attitude and views. According

to Babbie (1993) survey research approach is the most frequent use in the field of social

sciences. It enable the researcher to collect primary data to seek the answer of the research

questions (Yin, 1994). Survey approach is one of the best way to measure the attitude of

people towards some phenomenon (Sekaran, 2003). Therefore, on the basis of above

directions, researcher was used survey approach for this study.

3.2 Population & Sample

3.2.1 Population

As indicated by Huysamen (1994) population is "the aggregate gathering of all individuals,

cases or components about which the researcher wishes to draw conclusions." According to

Sekaran (2003) Population is the whole gathering of individuals, components under

37

examination, occasions or things of premium that the researcher wishes to examine. The

population of this study consists of all the employees (512) of both public/private sector

banks (National Bank of Pakistan, Bank of Khyber, Allied Bank Limited, United Bank

Limited, Habib Bank Limited, Muslim Commercial Bank) in southern region districts (Dera

Ismail Khan, Tank, Bannu, Lakki Marwat, Karak) of Khyber Pakhtunkhwa, Pakistan.

Table 3.1 Population Framework

Name of the Banks No. of Branches in 5

Districts

Total No. of

Employees

in 5 Districts

National Bank of

Pakistan 32 175

Bank of Khyber 07 56

Allied Bank Limited 10 68

United Bank Limited 10 66

Habib Bank Limited 17 92

Muslim Commercial

Bank 09 55

Sources: State Bank of Pakistan and concerned Bank

3.2.2 Sample & Sampling

According to Sekaran (2003) sample is comprise of people that study intended to

investigate. It is a sub part of the population. Sampling is an essential part of research

because it is usually not possible to study entire population. Sampling is method through

which an appropriate sample size is chosen for the study. In the present study sample of 225

employees (OG-III, OG-II, OG-I, AVP) of both public/private sector banks were selected

through stratified sampling technique. The sample were selected from Six Banks (Strata)

38

through stratified random technique. A random sample from each stratum is taken in a

number proportional to the stratum’s size when compared to the total population. For this

purpose, equal proportion of sample was selected from each stratum (44% from each

stratum). To compute the sample size using Yamane (1967) formula for selecting a sample

from a “Finite Population”:

𝑛 =𝑁

1 + 𝑁𝑒2

N = Population (512); Level of Significance “e” = 0.05 & n = Sample size;

𝑛 =512

1 + 512(0.05)2

𝑛 = 225

Table 3.2 The detailed description of Sample is given below

Name of the Banks No. of Branches in 5

Districts

No. of Selected

Employees

in 5 Districts

National Bank of

Pakistan 32 77

Bank of Khyber 07 25

Allied Bank Limited 10 30

United Bank Limited 10 29

Habib Bank Limited 17 40

Muslim Commercial

Bank 09 24

Total 6 85 225

3.3 Measurement Scale

The following instrument were used in a survey to measure the variables in the study. The

predictor HRM practices were measured with 25 items (RS-5, TD-5, PA-5, CP-5 and COM-

39

5) taken from (Tahir Masood, 2010) used in his PhD study (Capital University of Science

& Technology, Islamabad) titled “Impact of HRMP on OP: A Mediating Role of EP”. All

the responses were made on 5-point scale 1=SD (Strongly Disagree) to 5=SA (Strongly

Agree). The criterion variable organizational commitment were measured with 10 items

developed by Meyer & Allen (1997). All the responses were made on 5-point scale 1=SD

(Strongly Disagree) to 5=SA (Strongly Agree). The mediator perceived organizational

support was measured with 10 items developed by Eisenberger et al. (1986), modified by

Stassen & Ursel (2009). All the responses were made on 5-point scale 1=SD (Strongly

Disagree) to 5=SA (Strongly Agree).

3.4 Data Collection Methods

All possible sources was used by the researcher while collecting primary and secondary data.

For primary data collection, researcher administered questionnaire to get first-hand

information about the variables from the respondents. While for the collection of secondary

data, researcher review the existing literature about the research.

3.4.1 Literature Survey

A study may address a debate, test a theory, provide new knowledge, or contribution to

practice, but whatever it does, it will relate some literatures in a specific way. Thus, before

designing, researcher conduct a literature review in order to find out exactly what has been

studies and proposed with respect to a research topic (Springer, 2010). In the current study,

researcher review the existing literature to explore the relationships among variables. It helps

the researcher in adopting appropriate methodology. Researcher mostly reviews the

published articles in recognize journal to developed conceptual framework.

40

3.4.2 Field Survey

An adapted questionnaire was used, based on the above-mentioned three instruments. In the

initial version of the questionnaire there were 110 questions. This questionnaire was made

reliable and valid through experts view. The final version of the questionnaire consists of

50 questions. The first section of the questionnaire contained 5 questions relating to personal

attributes of the respondents. The second section, which contained 45 questions about HRM

practices, organizational commitment and perceived organizational support. To determine

the sample size for the research project using Yamane (1967) formula which gave a sample

size of 225 (see section 3.3.2). So 225 questionnaires along with covering letter which

explained the purpose of the study were distributed in private and public sector banks in

southern region districts of Khyber Pakhtunkhwa province personally and recollected as

well and few other couriers hired for the purpose. Two hundred and Eighteen (218) filled

questionnaires were gathered from the respondents which made 96% response rate.

Different approaches were used for data collection for high response rate. Most of the

questionnaires were personally administered by researcher. Researcher also sent

questionnaire via email (Appendix-A).

Table 3.3 of Response Rate

Status No. of Questionnaire Percentage

Total No. of Questionnaires 225 100%

No. of Questionnaire Received. 218 96%

3.5 Consideration of Research Ethics

Data collection should be ethical and it should respect individual and organizations

(Creswell, 2012). Some ethical thoughts were required to be addressed while conducting

41

this study. In this way, following some ethical thoughts were made in regards to the status

and nature of the members.

i. Take formal authorization from Manager of each Bank. The Purpose of this agree

was to gather information from representatives working in the Bank.

ii. The researcher gives an open choice to the respondent whether they participate

in the study or not.

iii. Researcher ensured the anonymity of the location and names of the individual

and banks while conducting the research.

iv. The researcher also ensured that all the information provided by the respondents

are kept secret and not misuse at any stage of research.

v. Every organization has some rules and regulation. Thus researcher followed rules

and regulation of the banks while conducting this research study.

3.6 Data Analysis Techniques

The quantitative data was collected, arranged and put into data matrix of Statistical Package

for Social Sciences (SPSS, 21). Statistical Package for Social Sciences is the most popular

and common software to analyze the quantitative data. Following data analysis techniques

were used to test the hypotheses.

3.6.1 Descriptive Analysis

Descriptive statistics consists of numbers that summarizing the characteristics of a sample.

It is impossible to understand the results of a quantitative study without descriptive statistics.

For this purpose, Frequency, Percentage, Mean and Standard Deviation was used in order to

represent the sample by using Statistical Package for Social Sciences (Version, 21.0)

42

3.6.2 Inferential Analysis (Testing of Hypotheses)

In the inferential analysis, the researcher tries to inference the population of the study based

on the sample that is chosen. Following techniques for inferential statistics were employed

to test the hypotheses.

a. Factor Analysis

According to Creswell (2009) if the scales or instruments are not well documented then it

will not bring the fruitful results, all the instruments of the HRM practices, perceived

organizational support and organizational commitment are well documented in the context

of Pakistan. So this study will fill the methodological gap by validating the instruments in

the Pakistan perspective through factor analysis.

b. Pearson Correlation

Pearson product correlation was used to check the strength and direction of linear association

between two variables. According to springer (2010) when two variables are continuous

then researcher calculates a Pearson product correlation. The value of Pearson product

correlation ranges -1 to +1. Following Pearson product correlation formula was used.

𝑟 =∑ (𝑥𝑖 − 𝑥)(𝑦𝑖 − �̅�)𝑖

√∑ (𝑥𝑖 − �̅�)2 𝑖 √∑ (𝑦𝑖 − �̅�)2 𝑖

c. Mediation Regression Analysis

Mediation effect is a kind of interactive effect which explains the relationship between

independent and dependent variable by intervene the third variable called mediator (Cohen

43

& Cohen, 1983). Mediator may defined as a third variable which affect the strength and

direction of relationship between predictor variable and criterion variable (Baron & Kenny,

1986). In this study the mediating effect of perceived organizational support in the

relationship between HRM practices and organizational commitment were examined with

four stapes as suggested by (Baron & Kenny, 1986).

Figure 3.1 Mediation-Model (Source: Baron & Kenny, 1986)

Stapes:

1. The relationship between independent and dependent variable must be significant is

the first requirement of the mediation model (X → Y).

2. The relationship between independent and mediating variable must be significant is

the second requirement of the mediation model (X → M).

44

3. The relationship between mediating and dependent variable must be significant is

the third requirement of the mediation model (M → Y).

4. Step 3 and 4 is involve in same regression model. In fourth step the relationship

between independent variable and dependent variable must be insignificant in the

presence of mediating variable (or the meaningful reduction in effect) (X|M → Y).

For mediation analysis we used “PROCESS” macro created by Hayes (2013) for SPSS

which perform all the above steps. Further it perform sobel test, total, direct and indirect

effect automatically to confirm mediating effect between independent and dependent

variable.

d. Tests-of-Significance

i. Independent sample t-test

The t-test for independent sample is used to determine whether or not Means obtained from

independent samples are significantly different. Independency in this case means that the

composition on sample is unrelated to the composition of the other. A test for independent

samples would thus be appropriate for to check the mean difference of two independent

groups (Springer, 2010). Following formula was used to calculate the independent sample

t-test:-

𝑡 =�̅�1 − �̅�2

√𝑆1

2

𝑁1+

𝑆22

𝑁2

ii. Analysis of Variance (ANOVA)

A t-test can be used to compare only two means at a time. ANOVA is used to compare the

means of two or more groups simultaneously (Springer, 2010). The general formula for

45

determining ANOVA consists of dividing the mean variance between groups by the mean

variance within groups, as shown below.

𝐹𝑠 =𝑀𝑆(𝑏𝑒𝑡𝑤𝑒𝑒𝑛)

𝑀𝑆(𝑤𝑖𝑡ℎ𝑖𝑛)

46

3.7 Operationalization of the Concepts

Table 3.4 List of the Operationalized Research Variables

Variables Attributes Relevant

Studies

1

HRM

Practices

1. Recruitment & Selection: Attracting,

choosing, encouraging

2. Training & Development: Increasing

knowledge, skill & performance. Process of

learning and growth.

3. Performance Appraisal System: Monitor,

measuring, evaluating & influencing.

4. Career Planning System: Opportunities,

choices, limitations, goals

5. Compensation: Wages, salaries, incentives,

benefits

(Guchait,

2007)

(Meyer &

Smith,

2000)

(Hemdi,

2009)

(Nasurdin

et al.,

2008)

2

Organizational

Commitment

1. Affective Commitment: Emotionally

committed to work

2. Continuance Commitment: Economically

linked with the organization.

3. Normative Commitment: Obligatory

commitment refers to the feelings of moral,

social and cultural responsibility to work in

an organization.

(Tan,

2008)

(Dinc,

2015)

(Khattak et

al., 2014)

3

Perceived

Organizational

Support

1. Contribution, Cares, High level of support,

Appreciation, Recognition,

Empowerment, Participation.

(Obeidat et

al., 2014)

(Mutsoli et

al., 2015)

47

Chapter 4 DATA ANALYSIS AND DISCUSSION

This chapter provides the analysis of data and its interpretation. This chapter consists of two

parts. The first part of this chapter was comprised demographic information about the

sample. For this purpose frequency and percentage was used to summarize the sample data.

The second part comprised of descriptive and inferential statistics in which researcher used

different statistical techniques according to the nature of the research problem.

4.1 Demographic Information

The demographic information of 218 respondents is shown in table and graphic form.

Figure 4.1 Designation

0

10

20

30

40

50

60

70

80

90

100

OG-III = 86 OG-II = 74 OG-I = 46 AVP = 12

Designation

Series 1 Series 2 Series 3 Series 4

48

Table 4.1 Designation of the respondents

Demographic

Variable Frequency Percent

Designation

OG-III 86 21.6

OG-II 74 18.5

OG-I 46 11.5

AVP 12 3.0

Table 4.1 shows that 21.6% participants are OG-III levels, 18.5% participants are OG-II

levels, 11.5% participants are OG-I levels and 3.0% participants are AVP levels.

Figure 4.2 Qualification

0

20

40

60

80

100

120

140

160

Gradute = 36 Master = 144 MS/MPhil = 38

Qualification

Series 1 Series 2 Series 3

49

Table 4.2 Qualification of the respondents

Demographic


Qualification

Graduate 36 9.0

Master 144 36.1

MS/MPhil 38 9.5

In terms of qualification of the participants table 4.2 shows that, 9.0% of the participants are

graduates, 36.1% of the participants have a master degree and 9.5% of the participants hold

a MS/MPhil degree.

Figure 4.3 Experience

0

20

40

60

80

100

120

140

160

1-5 = 144 6-10 = 76 11-15 = 16 16-20 = 4 Above 20 = 8

Experience

Series 1 Series 2 Series 3 Series 4 Series 5

50

Table 4.3 Experience of the respondents

Demographic


Length of Service

1-5 144 28.6

6-10 76 19.0

11-15 16 4.0

16-20 4 1.0

Above 20 8 2.0

The table 4.3 shows that 28.6% of the participants have 1-5 years of work experience, 19.0%

of the participants have 6-10 years of work experience, 4.0% of them have 11-15 years of

work experience, 1.0% of the participants have 16-20 years working experience and 2.0%

of the participants have been working for more than 20 years.

Figure 4.4 Gender

0

50

100

150

200

250

Male = 196 Female = 26

Gender

Series 1 Series 2

51

Table 4.4 Gender of the respondents

Demographic


Gender

Male 192 48.1

Female 26 6.5

In terms of gender of the participants table 4.4 shows that, 48.1% of the participants are

male and 6.5% of the participants are female.

Figure 4.5 Marital Status

0

20

40

60

80

100

120

140

160

Married = 142 Unmarried = 76

Marital Status

Series 1 Series 2

52

Table 4.5 Marital Status of the respondents

Demographic


Marital Status

Married 142 35.6

Unmarried 76 19.0

It is found from the above table 4.5 that 35.6% of the participants are married and 19.0% of

the participants are unmarried.

53

4.2 Descriptive Statistics

Table 4.6 showing minimum, maximum, mean and standard deviation statistics of different

research variables. HRM practices (Mean ranging from 3.16 to 3.76, SD ranging from .70

to .97), Perceived Organizational Support (Mean = 3.42, SD = .69) and Organizational

Commitment (Mean = 3.23, SD = .75). It means mostly participants are agreed with the

statements.

Table 4.6 Descriptive Statistics of Research Variable (N=218)

Minimum Maximum Mean

Standard

Deviation

Statistics Statistics Statistics Statistics

Recruitment &

Selection 1.58 5.40 3.6433 .87969

Training &

Development 1.98 5.31 3.7657 .70851

Performance

Appraisal 1.21 5.59 3.1632 .97469

Career

Planning 1.87 5.32 3.6025 .74685

Compensation 1.13 5.75 3.2893 .86241

Perceived

Organizational

Support

1.69 5.02 3.4272 .69457

Organizational

Commitment 1.49 5.38 3.2377 .75856

54

4.3 Data Normality Statistics

The data collected for testing the hypotheses was examined for normality showing in table

4.7. Skewness & kurtosis index were applied to detect the data normality. Hair, Tatham,

Anderson and Black (2007) expressed that the values of Skewness and Kurtosis is essential

if sample size exceed than 200 individuals. The cut off criteria for normal data if the value

is falls between ±1.96 and ±2.85.

Table 4.7 Data Normality Statistics of Research Variable (N=218)

Skewness Kurtosis

Statistics

Std.

Error Values Statistics Std.

Error Values

Recruitment &

Selection -.024 .165 -0.15 -.370 .328 -1.13

Training &

Development -.002 .165 -0.01 -.259 .328 -0.79

Performance

Appraisal .098 .165 0.59 -.273 .328 -0.83

Career

Planning .032 .165 0.19 -.253 .328 -0.77

Compensation .077 .165 0.47 -.057 .328 -0.17

Perceived

Organizational

Support

.031 .165 0.19 -.235 .328 -0.71

Organizational

Commitment .101 .165 0.61 -.090 .328 -0.27

55

4.4 Reliability of Questionnaire

For internal consistency of research tool, one of the most common method of reliability

namely Cronbach's Alpha (α) is used (Bryman & Cramer, 2001). The cutoff criteria for the

reliability is usually 0.7 (α > 0.7), or else it proposes that some of the items might be difficult

(Devaney & Chen, 2003). However in specific conditions, an estimation of more than 0.6

is adequate (Price & Mueller, 1986). The alpha calculations of the 45- items survey that was

utilized as a part of this research are given in the following table 4.8.

Table 4.8 Reliability

Items Number of

Questions Cronbach's Alpha

Recruitment & Selection 5 .878

Training & Development 5 .706

Performance Appraisal 5 .832

Career Planning 5 .710

Compensation 5 .784

Organizational Commitment 10 .799

Perceived Organizational

Support

10 .822

Items Number of

Questions Cronbach's Alpha

7 45 .936

56

4.5 Exploratory Factor Analysis

This study conducted exploratory factor analysis to check the construct validity of a

questionnaire. By employing principal component method items having at least factor

loading of 0.40 or above are kept. According to Hair et al. (2007) 0.30 is considered as the

lowest level for factor analysis, 0.40 is considered essential for factor loading whereas 0.50

is most significant level. In the light of above direction, researcher used 0.40 cutoff level for

factor loading. The KMO was used for the purpose of sample adequacy. A value of 0.70 or

more is generally considered sufficiently high, whilst below 0.50 is unsatisfactory. Also,

values of Bartlett’s Test of Sphericity is significant at a 0.01 level.

Table 4.9 KMO & Bartlett’s test for HRM Practices

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

Bartlett's Test of Sphericity Approx. Chi-Square

df

Sig.

.819

2453.205

231

.000

The table 4.9 show KMO and Bartlett’s test for the purpose of sample adequacy. The above

table depicts that the value of KMO is 0.819 which greater than the cutoff criteria. The

cutoff criteria of KMO value is 0.65. Additionally, the value of Bartlett’s test is greater than

the cutoff criteria and significant which indicate good case for factor analysis.

57

Table 4.10 Components Matrix of HRM Practices items

Scale Factor Factor Loadings

HRM

Practices

Q1: Recruitment & Selection





Q6: Training & Development



Q9: Performance Appraisal





Q14: Career Planning





Q19: Compensation

Q20: Compensation

Q21: Compensation

Q22: Compensation

0.884

0.899

0.825

0.720

0.686

0.678

0.836

0.681

0.819

0.747

0.821

0.593

0.673

0.507

0.670

0.647

0.879

0.401

0.644

0.723

0.830

0.764

The above table 4.10 show the factor loading of each items of HRM practices by using

principle component method. The cutoff criteria for factor loading of each item was 0.40. A

good factor loading is considered if the value is more than or equal to 0.40 (Field, 2009).

58

Any items which were cross-loaded on the two factors with factor loadings less than 0.40

were removed. According to the result of the factor analysis, 2 items of the training &

development and one item of compensation were removed because of the inadequacy of the

structure of factors. A value is greater than the cutoff criteria (0.40) represents a good factor

loading.

Figure 4.6 Scree plot showing factor analysis for HRM practices.

59

Table 4.11 KMO & Bartlett’s test for Organizational Commitment



df

Sig.

.748

668.818

45

.000

The above table 4.11 show KMO and Bartlett’s test for the purpose of sample adequacy.

The above table represents that the value of KMO is 0.748 which greater than the cutoff

criteria. The cutoff criteria of KMO value is 0.65. Also, the value of Bartlett’s test is greater

than the cutoff criteria and significant which indicate good case for factor analysis.

Table 4.12 Components Matrix of Organizational Commitment items


Organizational

Commitment

Q1: OC

Q2: OC

Q3: OC

Q4: OC

Q5: OC

Q6: OC

Q7: OC

Q8: OC

Q9: OC

Q10: OC

0.849

0.695

0.567

0.814

0.607

0.803

0.855

0.833

0.488

0.513

The factor loading for the OC items is introduced in the above table 4.12. As we expressed

before, the estimation of each loaded item is more than or equal to 0.40. Here all the

values are more than 0.40, which shows a good factor loading.

60

Figure 4.7 Scree plot showing factor analysis for Organizational Commitment.

61

Table 4.13 KMO & Bartlett’s test for Perceived Organizational Support



df

Sig.

.839

993.565

45

.000

The KMO and Bartlett's test estimations of POS are accounted for in table 4.13. The value

of KMO is recorded .839 which indicates that data of current study is suitable for factor

analysis. Bartlett's Test of Sphericity have a significant which shows the current case is

good for factor analysis.

Table 4.14 Components Matrix of Perceived Organizational Support items


Perceived

Organizational Support

Q1: POS

Q2: POS

Q3: POS

Q4: POS

Q5: POS

Q6: POS

Q7: POS

Q8: POS

Q9: POS

Q10: POS

0.740

0.833

0.898

0.813

0.716

0.767

0.662

0.746

0.820

0.660

The factor loading for the POS items is showing in the above table 4.14. As we stated

before, the estimation of each loaded items is more than or equal to 0.40. Here all the

values are more than 0.40, which shows a good factor loading.

62

Figure 4.8 Scree plot showing factor analysis for Perceived Organizational Support.

63

4.6 Testing of Hypotheses

4.6.1 Correlation Analysis

Hypothesis # 1 Independent Variable (HRMP: RS, TD, PA, CP, COM) and Mediating

Variable (POS) are significantly correlated with Criterion Variable (OC).

Table 4.15 Showing correlation between the research variables

RS TD PA CP COM POS OC

RS R 1

P

TD R .427** 1

P .000

PA R .436** .286** 1

P .000 .000

CP R .459** .506** .502** 1

P .000 .000 .000

COM R .453** .307** .467** .612** 1

P .000 .000 .000 .000

POS R .420** .343** .597** .575** .492** 1

P .000 .000 .000 .000 .000

OC R .400** .488** .427** .583** .586** .673** 1

P .000 .000 .000 .000 .000 .000

** Correlation is significant at the 0.01 level (2-tailed)

The above table 4.15 indicates the correlation matrix between the HRM practices (RS, TD,

PA, CP COM), Perceived Organizational Support and Organizational Commitment. The

above evidence depicts that there is positive and statistically significant relationship between

64

RS and OC (r=.400, p=.000), TD and OC (r=.488, p=.000), PA and OC (r=.427, p=.000),

CP and OC (r=.583, p=.000), COM and OC (r=.586, p=.000), POS and OC (r=.673, p=.000).

65

4.7 Mediation Analysis

Four steps procedure were applied recommended by Baron and Kenny (1986) for

mediation analysis. Hayes (2013) proposed that while testing mediating or moderating

impact, the model should comprise just a single independent variable and one dependent

variable.

4.7.1 Hypothesis # 2 Perceived Organizational Support (POS) significantly mediates the

relationship between Recruitment & Selection (RS) and Organizational Commitment

(OC).

RS OC

POS

RS OC

0.3123

0.1115

66

Step-1

Table 4.16 Model Summary

R

R Square

MSE

F

df1

df2

P

0.4005

0.1604

0.4176

41.2542

1.0000

216.0000

0.000

Outcome variable: Organizational Commitment

The above table of regression output shows the relationship between IV (RS) and DV

(OC). The table shows that R2 = 0.1604 which indicates that RS explains 16% variance

in OC. The table also shows that there is significant impact of RS on OC (p = .000 < .05).

Table 4.17 Coefficients

Coeff Se t P LLCI ULCI

Constant

2.2837

0.1821

12.5380

0.000

1.9247

2.6427

RS

0.3123

0.0486

6.4229

0.000

0.2164

0.4081

Outcome variable: Organizational Commitment RS: Recruitment & Selection

The above table 4.17 indicates the regression coefficient of IV (RS) and DV (OC). The

table shows that (β = 0.3123, p = 0.000) which shows that RS is positive and significantly

related with OC. Thus, first condition of Baron and Kenny (1986) is fulfilled for testing

mediation analysis.

67

Step-2


R

R Square

MSE

F

df1

df2

P

0.4201

0.1765

0.4796

46.2945

1.0000

216.0000

0.000

Outcome variable: Perceived Organizational Support

The above table 4.18 of regression output shows the relationship between IV (RS) and

MV (POS). The table shows that R2 = 0.1765 which indicates that RS explains 17.65%

variance in POS. The table also shows that there is significant impact of RS on POS (p

= .000 < .05).


Coeff Se t P LLCI ULCI

Constant

1.9374

0.1952

9.9256

0.000

1.5527

2.3221

RS

0.3545

0.0521

6.8040

0.000

0.2518

0.4572

Outcome variable: Perceived Organizational Support RS: Recruitment & Selection

The above table 4.19 indicates the regression coefficient of IV (RS) and MV (POS). The

table shows that (β = 0.3545, p = 0.000) which shows that RS is positive and significantly

related with POS. Thus, second condition of Baron and Kenny (1986) is fulfilled for

testing mediation analysis.

68

Step-3 & 4


R

R Square

MSE

F

df1

df2

p

0.6854

0.4697

0.2649

95.2312

2.0000

215.0000

0.000


The table 4.20 shows that R2 = 0.4697 which indicates that RS and POS explains 46.97%

variance in OC. The table also shows that there is significant impact of RS and POS on

OC (p = .000 < .05).


Coeff Se T P LLCI ULCI

Constant

1.1863

0.1751

6.7761

0.000

0.8412

1.5313

POS

0.5664

0.0506

11.2000

0.000

0.4667

0.6661

RS

0.1115

0.0427

2.6121

0.009

0.0274

0.1956

Outcome variable: Organizational Commitment, POS: Perceived Organizational Support, RS: Recruitment &

Selection

In third step the table 4.21 shows that POS is significantly related with OC (β = 0.5664,

p = 0.000). The table also shows the fourth steps in which controlling the mediator POS,

RS scores was a significant predictor of OC (β = 0.1115, p = .009). Therefore, POS

69

partially mediates in the relationship between RS and OC. Thus, our research hypothesis

(H2) is hereby accepted.

Table 4.22 Sobel test or Normal theory test

Effect Se Z P

0.2008

0.0346

5.7982

0.000

The above table 4.22 shows the Sobel test to confirm the mediating effect. The table

indicates that the value of effect size (0.2008) which is statistically more than zero. Also

p-value is significant at 0.05 level which indicates the mediating effect is found between

these variables.

70


relationship between Training & Development (TD) and Organizational Commitment

(OC).

Step-1


R

R Square

MSE

F

df1

df2

P

0.4876

0.2377

0.3791

67.3550

1.0000

216.0000

0.000


The above table 4.23 of regression output shows the relationship between IV (TD) and

DV (OC). The table shows that R2 = 0.2377 which indicates that TD explains 23.77%

variance in OC. The table also shows that there is significant impact of TD on OC (p =

.000 < .05).

TD OC

POS

TD OC

0.4742

0.2831

71



Constant

1.6365

0.2212

7.3989

0.000

1.2006

2.0725

TD

0.4742

0.0578

8.2070

0.000

0.3603

0.5881

Outcome variable: Organizational Commitment TD: Training & Development

The above table 4.24 indicates the regression coefficient of IV (TD) and DV (OC). The

table shows that (β = 0.4742, p = 0.000) which shows that TD is positive and significantly


mediation analysis.

Step-2


R

R Square

MSE

F

df1

df2

P

0.3427

0.1174

0.5140

28.7354

1.0000

216.0000

0.000


The above table 4.25 of regression output shows the relationship between IV (TD) and

MV (POS). The table shows that R2 = 0.1174 which indicates that TD explains 11.74%

variance in POS. The table also shows that there is significant impact of TD on POS (p

= .000 < .05).

72


Coeff Se t p LLCI ULCI

Constant

1.8708

0.2575

7.2640

0.000

1.3632

2.3784

TD

0.3606

0.0673

5.3605

0.000

0.2280

0.4932

Outcome variable: Perceived Organizational Support TD: Training & Development

The above table 4.26 indicates the regression coefficient of IV (TD) and MV (POS). The

table shows that (β = 0.3606, p = 0.000) which shows that TD is positive and significantly



Step-3 & 4


R

R Square

MSE

F

df1

df2

p

0.7264

0.5277

0.2360

120.1178

2.0000

215.0000

0.000


The table 4.27 shows that R2 = 0.5277 which indicates that TD and POS explains 52.77%

variance in OC. The table also shows that there is significant impact of TD and POS on

OC (p = .000 < .05).

73



Constant

0.6455

0.1947

3.3163

0.001

0.2619

1.0292

POS

0.5297

0.0461

11.4902

0.000

0.4389

0.6206

TD

0.2831

0.0485

5.8355

0.000

0.1875

0.3788

Outcome variable: Organizational Commitment, POS: Perceived Organizational Support, TD: Training &

Development



TD scores was a significant predictor of OC (β = 0.2831, p = .000). Therefore, POS

partially mediates in the relationship between TD and OC. Thus, our research hypothesis



Effect Se Z P

0.1910

0.0394

4.8428

0.000




these variables.

74


relationship between Performance Appraisal (PA) and Organizational Commitment

(OC).

Step-1


R

R Square

MSE

F

df1

df2

p

0.4267

0.1820

0.4068

48.0745

1.0000

216.0000

0.000


The above table 4.30 of regression output shows the relationship between IV (PA) and

DV (OC). The table shows that R2 = 0.1820 which indicates that PA explains 18.20%

variance in OC. The table also shows that there is significant impact of PA on OC (p =

.000 < .05).

PA OC

POS

PA OC

0.3026

0.0275

75



Constant

2.4664

0.1441

17.1200

0.000

2.1824

2.7503

PA

0.3026

0.0436

6.9336

0.000

0.2166

0.3887

Outcome variable: Organizational Commitment PA: Performance Appraisal

The above table 4.31 indicates the regression coefficient of IV (PA) and DV (OC). The

table shows that (β = 0.3026, p = 0.000) which shows that PA is positive and significantly


mediation analysis.

Step-2


R

R Square

MSE

F

df1

df2

p

0.5969

0.3563

0.3749

119.5528

1.0000

216.0000

0.000


The above table 4.32 of regression output shows the relationship between IV (PA) and

MV (POS). The table shows that R2 = 0.3563 which indicates that PA explains 35.63%

variance in POS. The table also shows that there is significant impact of PA on POS (p

= .000 < .05).

76



Constant

1.7841

0.1383

12.9002

0.000

1.5115

2.0566

PA

0.4582

0.0419

10.9340

0.000

0.3756

0.5407

Outcome variable: Perceived Organizational Support PA: Performance Appraisal

The above table 4.33 indicates the regression coefficient of IV (PA) and MV (POS). The

table shows that (β = 0.4582, p = 0.000) which shows that PA is positive and significantly



Step-3 & 4


R

R Square

MSE

F

df1

df2

p

0.6737

0.4539

0.2729

89.3436

2.0000

215.0000

0.000


The table 4.34 shows that R2 = 0.4539 which indicates that PA and POS explains 45.39%

variance in OC. The table also shows that there is significant impact of PA and POS on

OC (p = .000 < .05).

77


Coeff Se T p LLCI ULCI

Constant

1.3950

0.1570

8.8857

0.000

1.0856

1.7044

POS

0.6005

0.0581

10.3449

0.000

0.4861

0.7149

PA

0.0275

0.0446

0.6175

0.537

-.0603

0.1153

Outcome variable: Organizational Commitment, POS: Perceived Organizational Support, PA: Performance

Appraisal



PA scores was an insignificant predictor of OC (β = 0.0275, p = 0.537). Therefore, POS

fully mediates in the relationship between PA and OC. Thus, our research hypothesis (H4)

is hereby accepted.


Effect Se Z P

0.2751

0.0367

7.4981

0.000




these variables.

78


relationship between Career planning (CP) and Organizational Commitment (OC).

Step-1


R

R Square

MSE

F

df1

df2

p

0.5828

0.3396

0.3284

111.0765

1.0000

216.0000

0.000


The above table 4.37 of regression output shows the relationship between IV (CP) and

DV (OC). The table shows that R2 = 0.3396 which indicates that CP explains 33.96%

variance in OC. The table also shows that there is significant impact of CP on OC (P =

.000 < .05).

CP OC

POS

CP OC

0.5395

0.2709

79



Constant

1.4802

0.1880

7.8718

0.000

1.1096

1.8508

CP

0.5395

0.0512

10.5393

0.000

0.4386

0.6403

Outcome variable: Organizational Commitment CP: Career Planning

The above table 4.38 indicates the regression coefficient of IV (CP) and DV (OC). The

table shows that (β = 0.5395, p = 0.000) which shows that CP is positive and significantly


mediation analysis.

Step-2


R

R Square

MSE

F

df1

df2

p

0.5746

0.3302

0.3901

106.4666

1.0000

216.0000

0.000


The above table 4.39 of regression output shows the relationship between IV (CP) and

MV (POS). The table shows that R2 = 0.3302 which indicates that CP explains 33.02%

variance in POS. The table also shows that there is significant impact of CP on POS (p

= .000 < .05).

80



Constant

1.1577

0.2049

5.6491

0.000

0.7537

1.5616

CP

0.5756

0.0558

10.3183

0.000

0.4656

0.6855

Outcome variable: Perceived Organizational Support CP: Career Planning

The above table 4.40 indicates the regression coefficient of IV (CP) and MV (POS). The

table shows that (β = 0.5756, p = 0.000) which shows that CP is positive and significantly



Step-3 & 4


R

R Square

MSE

F

df1

df2

p

0.7144

0.5103

0.2447

112.0213

2.0000

215.0000

0.000


The table 4.41 shows that R2 = 0.5103 which indicates that CP and POS explains 51.03%

variance in OC. The table also shows that there is significant impact of CP and POS on

OC (P = .000 < .05).

81



Constant

0.9401

0.1739

5.4070

0.000

0.5974

1.2829

POS

0.4665

0.0539

8.6569

0.000

0.3603

0.5727

CP

0.2709

0.0540

5.0194

0.000

0.1646

0.3773

Outcome variable: Organizational Commitment, POS: Perceived Organizational Support, CP: Career Planning



CP scores was a significant predictor of OC (β = 0.2709, p = .000). Therefore, POS

partially mediates in the relationship between CP and OC. Thus, our research hypothesis



Effect Se Z P

0.2685

0.0406

6.6137

0.000




these variables.

82


relationship between Compensation (COM) and Organizational Commitment (OC).

Step-1


R

R Square

MSE

F

df1

df2

p

0.5855

0.3428

0.3268

112.6906

1.0000

216.0000

0.000


The above table 4.44 of regression output shows the relationship between IV (COM) and

DV (OC). The table shows that R2 = 0.3428 which indicates that COM explains 34.28%

variance in OC. The table also shows that there is significant impact of COM on OC (p

= .000 < .05).

COM OC

POS

COM OC

0.4730

0.2712

83



Constant

1.8685

0.1511

12.3636

0.000

1.5706

2.1664

COM

0.4730

0.0446

10.6156

0.000

0.3851

0.5608

Outcome variable: Organizational Commitment COM: Compensation

The above table 4.45 indicates the regression coefficient of IV (COM) and DV (OC). The

table shows that (β = 0.4730, p = 0.000) which shows that COM is positive and

significantly related with OC. Thus, first condition of Baron and Kenny (1986) is fulfilled

for testing mediation analysis.

Step-2


R

R Square

MSE

F

df1

df2

p

0.4919

0.2419

0.4415

68.9312

1.0000

216.0000

0.000


The above table 4.46 of regression output shows the relationship between IV (COM) and

MV (POS). The table shows that R2 = 0.2419 which indicates that COM explains 24.19%

variance in POS. The table also shows that there is significant impact of COM on POS

(p = .000 < .05).

84



Constant

1.8170

0.1756

10.3443

0.000

1.4708

2.1632

COM

0.4299

0.0518

8.3025

0.000

0.3279

0.5320

Outcome variable: Perceived Organizational Support COM: Compensation

The above table 4.47 indicates the regression coefficient of IV (COM) and MV (POS).

The table shows that (β = 0.4299, p = 0.000) which shows that COM is positive and

significantly related with POS. Thus, second condition of Baron and Kenny (1986) is

fulfilled for testing mediation analysis.

Step-3 & 4


R

R Square

MSE

F

df1

df2

p

0.7337

0.5384

0.2306

125.3681

2.0000

215.0000

0.000


The table 4.48 shows that R2 = 0.5384 which indicates that COM and POS explains

53.84% variance in OC. The table also shows that there is significant impact of COM

and POS on OC (p = .000 < .05).

85



Constant

1.0158

0.1553

6.5426

0.000

0.7098

1.3218

POS

0.4693

0.0492

9.5425

0.000

0.3724

0.5663

COM

0.2712

0.0430

6.3086

0.000

0.1865

0.3559

Outcome variable: Organizational Commitment, POS: Perceived Organizational Support, COM:

Compensation



COM scores was a significant predictor of OC (β = 0.2712, p = .000). Therefore, POS

partially mediates in the relationship between COM and OC. Thus, our research

hypothesis (H6) is hereby accepted.


Effect Se Z P

0.2018

0.0323

6.2441

0.000




these variables.

86

4.8 Tests of Significance

4.8.1 Hypothesis # 7 To find out the Mean Difference of research variables

across Designation

Table 4.51 ANOVA

ANOVA

Df F Sig.

Recruitment & Selection 3 0.693 0.557

Training & Development 3 1.615 0.187

Performance Appraisal 3 4.947 0.002

Career Planning 3 5.687 0.001

Compensation 3 3.201 0.024

Perceived Organizational Support 3 2.359 0.073

Organizational Commitment 3 1.002 0.393

P<0.05

Table 4.52 Tukey HSD

Tukey HSD

DV (I) Designation (J) Designation

Mean

Difference

(I-J)

Sig.

PA OG-III OG-II

OG-I

AVP

.37926

.48008*

.89457*

0.067

0.035

0.016

CP OG-III OG-II

OG-I

AVP

.42011*

.36582*

-.09070

0.002

0.035

0.978

COM OG-III OG-II

OG-I

AVP

.28360

.39899

-.14884

0.162

0.056

0.943 *The mean difference is significant at the 0.05 level. DV: Dependent Variable, PA: Performance

Appraisal CP: Career Planning, COM: Compensation

87

In above table 4.51 gives us ANOVA table in which we can see whether the F-value of all

variables is significant or not. In this case the F-value for performance appraisal, career

planning and compensation is significant. So we can conclude that at least one of the group

in the designation is different from others.

In the 2nd table 4.52 we can conduct post hoc test for performance appraisal, career planning

and compensation to determine which group means is differ from each other. In post hoc

test we used most common Tukey test in which we have to find the mean difference between

two groups which are significant. In the post hoc test the OG-III and OG-I, OG-III and AVP

have significant p-values so these two groups have mean difference. It means that OG-III

and OG-I, OG-III and AVP have difference in their performance appraisal. Another

designation group OG-III and OG-II, OG-III and OG-I have significant p-value so these two

groups have mean difference. It means that OG-III and OG-II, OG-III and OG-I have

differences in their career planning. For compensation there is no mean difference has found

between designation groups. Therefore the hypothesis is substantiated only on 2 out of 7.

88


across Qualification

Table 4.53 ANOVA

ANOVA

Df F Sig.








P<0.05


Tukey HSD

DV (I) Qualification (J) Qualification

Mean

Difference

(I-J)

Sig.

Career Planning Graduate Master

MS/MPhil

-0.40833*

-0.01462

0.009

0.996

Career Planning Master Graduate

MS/MPhil

0.40833*

0.39371*

0.009

0.011

Career Planning MS/MPhil Graduate

Master

0.01462

-0.39371*

0.996

0.011

Compensation Graduate Master

MS/MPhil

-0.59722*

-0.67544*

0.001

0.002

Compensation Master Graduate

MS/MPhil

0.59722*

-0.07822

0.001

0.867

Compensation MS/MPhil Graduate

Master

0.67544*

0.07822

0.002

0.867

*The mean difference is significant at the 0.05 level. DV: Dependent Variable

89

In the above table 4.53 gives us ANOVA table in which we can see whether the F-value of

all variables is significant or not. In this case the F-value for career planning and

compensation is significant. So we can conclude that at least one of the group in the

qualification is different from others. In the 2nd table 4.54 we can conduct post hoc test for

career planning and compensation to determine which group means is differ from each

other. In post hoc test we used most common Tukey test in which we have to find the mean

difference between two groups which are significant. In the post hoc test the Graduate and

Master, Master and MS/MPhil have significant p-valve so these two group have mean

difference. It means Graduate and Master, Master and MS/MPhil have difference in their

career planning. Another qualification group Graduate and Master, Graduate and MS/MPhil

have significant p-value so these two group have mean difference. It means that Graduate

and Master, Graduate and MS/MPhil have differences in their compensation. Therefore the

hypothesis is substantiated only on 2 out of 7.

90


across Experience

Table 4.55 ANOVA

ANOVA

Df F Sig.








P<0.05


Tukey HSD

DV (I) EXP (J) EXP

Mean

Difference

(I-J)

Sig.

TD 1-5 6-10

11-15

16-20

Above 20

-0.05965

-0.58728*

-0.51228

0.03772

0.980

0.019

0.619

1.000

CP 6-10 1-5

11-15

16-20

Above 20

-0.11579

-0.61579*

-0.61579

0.18421

0.833

0.025

0.494

0.964

COM 11-15 1-5

6-10

16-20

Above 20

0.66930*

0.78684*

0.75000

0.90000

0.031

0.009

0.520

0.112

OC 11-15 1-5

6-10

16-20

Above 20

0.71974*

0.62763*

0.27500

0.15000

0.001

0.008

0.950

0.986 *The mean difference is significant at the 0.05 level

DV: Dependent Variable, TD: Training & Development, CP: Career Planning, EXP: Experience,

OC: Organizational Commitment

91

In the above table 4.55 gives us ANOVA table in which we can see whether the F-value of

all variables is significant or not. In this case the F-value for training & development, career

planning, compensation and organizational commitment is significant. So we can conclude

that at least one of the group in the Experience is different from others. In the 2nd table 4.56

we can conduct post hoc test for training & development, career planning, compensation

and organizational commitment to determine which group means is differ from each other.

In post hoc test we used most common Tukey test in which we have to find the mean

difference between two groups which are significant. In the post hoc test the age group 1-5

and 11-15 have significant p-value so these two group have mean difference. It means that

1-5 and 11-15 age group have differences in their training & development, compensation

and organizational commitment. Another age group 6-10 and 11-15 have significant p-value

so these two group have mean difference. It means that 6-10 and 11-15 age group have

differences in their career planning, compensation and organizational commitment.

Therefore the hypothesis is substantiated only on 4 out of 7.

92

4.8.4 Hypothesis # 10 To find out the Mean Difference of research

variables across Gender

Table 4.57 t-test to check mean difference on Gender (Male = 192, Female = 26)

Levene’s

Test t-test

F Sig. T

Sig.

(2-tailed)

Mean

Difference

Recruitment & Selection 6.383 0.012 -1.326 0.129 -0.18542

Training & Development 0.001 0.927 2.141 0.033 0.32099

Performance Appraisal 0.593 0.442 -0.029 0.977 -0.00593

Career Planning 0.611 0.435 0.070 0.944 0.01122

Compensation 0.317 0.574 -0.371 0.711 -0.06763

Perceived Organizational Support 3.008 0.084 0.135 0.893 0.02147

Organizational Commitment 2.210 0.139 1.279 0.202 0.18782

*The mean difference is significant at the 0.05 level.

The above table 4.57 indicates that the Levene’s tests were non-significant (p > 0.05) which

indicates that „equal variance are assumed‟ for Training & Development, Performance

Appraisal, Career Planning, Compensation, Perceived Organizational Support,

Organizational Commitment. Whereas Levene’s tests were-significant (p < 0.05) which

indicates that „equal variance are not assumed‟ for Recruitment & Selection. Table 4.57

showing that the mean difference is significant only on Training & Development with (p-

value 0.033). It means that there is difference in Training & Development for males and

females. But for other variables there is no mean difference in Gender. The p-values of rest

of the tests are more than the significant value of 0.05. Therefore the hypothesis is

substantiated only on 1 out of 7.

93

4.8.5 Hypothesis # 11 To find out the Mean difference of research variables

across Marital Status

Table 4.58 t-test to check mean difference on Marital Status (Married = 142, Unmarried = 76)

Levene’s

Test t-test

F Sig. T

Sig.

(2-tailed)

Mean

Difference

Recruitment & Selection 0.064 0.801 1.260 0.209 0.16138

Training & Development 1.271 0.261 2.656 0.009 0.26931

Performance Appraisal 11.875 0.001 0.643 0.521 0.09081

Career Planning 0.358 0.550 2.572 0.011 0.27435

Compensation 0.753 0.386 1.904 0.058 0.23425

Perceived Organizational Support 0.008 0.930 1.464 0.145 0.15801

Organizational Commitment 0.072 0.789 3.017 0.003 0.29622

*The mean difference is significant at the 0.05 level.

The Levene’s tests were non-significant (p > 0.05) for Recruitment & Selection, Training

& Development, Career Planning, Compensation, Perceived Organizational Support,

Organizational Commitment, thus the test statistics of „equal variances assumed‟ were read,

whereas the result for Performance Appraisal was significant (p < 0.05) thus the test

statistics of „equal variances not assumed‟ were read. Table 4.58 showing that the mean

difference is significant only on Training & Development with (p-value 0.009), Career

Planning with (p-value 0.011), Compensation with (p-value 0.058) and Organizational

Commitment with (p-value 0.003). It means that for married and unmarried there is

difference in Training & Development, Career Planning, Compensation and Organizational

Commitment. But for other variables there is no mean difference in marital status. Therefore

the hypothesis is substantiated only on 4 out of 7.

94

Chapter 5 SUMMARY, CONCLUSION & RECOMMENDATION

Chapter five presents the summary of the research, discussion of findings, over all

conclusion, implications for management and limitations of the study. Recommendation for

future research are also discussed in this chapter.

5.1 SUMMARY OF THE STUDY

The purpose of this study examined the mediating effect of perceived organizational support

in the relationship between HRM practices and organizational commitment. This thesis write

up consists of five chapters, which were introduction, literature review, research

methodology, data analysis and discussion, summary, conclusion and recommendation. The

first Chapter overviewed the research topic by describing the background of the study,

statement of the problem, research questions, objectives of the research and its significance,

research hypotheses, delimitations of the study and research contribution. The second

chapter presented the literature review. The literature review focused on definition of Human

Resource Management (HRM), theoretical overview of HRM, HRM practices,

organizational commitment (OC), perceived organizational support (POS), relationship

between the main research variables, demographic attributes, list of extracted variables and

their framework. The third chapter outlined the overall research methodology and it was

started with the survey approach. The other elements of this chapter are population, sampling

techniques, measurement scale, data collection methods, data analysis techniques, statistical

tools and software used for the study, variables and their operational definitions. The chapter

four presented the data analysis and discussion. First, the demographic characteristics were

discussed. Second, the instrument reliability and validity were checked and found correct.

95

In order to check the data normality, skewness and Kurtosis were applied. At the end of this

chapter, results of hypotheses were testing which based on the objectives of the current

study. The last chapter of the present study was comprised of summary, discussion and

overall conclusion of the research. It summaries the research processes and outcomes. The

chapter then move on to Implication for management, Limitations of the study and

recommendation for future research.

5.1.1 DISCUSSION

Banking is a public service industry to deliver its services across the country. The whole

business in the Banking sector is depend upon relationship. Thus, maintaining long lasting

services with the customers is a core element in banking sector. Nevertheless the level of

technology, banking sector is highly labor intensive job, therefore it is obligatory for banks

to give prime attention to HRM for the survival in the market because technology only assist

human in their work. Banking is primarily a labor intensive service sector, hence it will not

be possible for the banks to sustain effectiveness unless human resource management is

given prime importance because the technology is only an aid to human effort and not a

substitution. Human capital shall be the differential in future if the technology is the

equalizer. The HRM is developed and advanced concept. It has great relevance to public

service sector such as Banks. The human asset is one of the major input in banking sector

which play a significant role in the performance of banks. The level of efficiency of this

input leads towards the quality of service provided by the banks to its customers which is

the ultimate goal of the banking sector (Mangaleswaran & Srinivasan, 2015). There is no

doubt that HRM hold a key position in banking sector which no meaningful change is

possible with the participation of their employees. Treat people in the organization as a

96

valuable asset is a fundamental principles of Human Resource Management. Therefore,

good HRM practices is to attract talented people towards organization and to motivate them.

Committed, productive and innovative employees in the banking sector hold the power in

the competitive environment. Summarizing, banks have to invest in their work force. A

decent HRM contains a set of plans intended to boost organizational integration, worker

commitment, adaptability and nature of work (Guest, 1987). Organizations that show

reliability to their client, workers and investors acknowledge development and benefit that

help a competitive advantage. When workers are happy with their organization, they will in

turn indicate devotion to the organization and will confirm that the organization’s services

or items fulfill the client. As fulfilled workers tend to remain with an organization, the

organization will save expenses on recruiting and training new workers as devoted workers

stay with the organization. There are extensive literature have been available regarding the

relationship between HRM and Organizational Commitment (Edgar & Geare, 2005). The

findings of the Present study shows positive significant relationship is recorded between

recruitment & selection and organizational commitment (r = .400, p < 0.01). Same result

were mentioned by Guchait (2007), Ming-Kuen Wang and Hwang (2012) and Bal et al.

(2014) that positive relationship between recruitment & Selection and Organizational

Commitment. They also support the argument that identification of the right candidate with

required skills to perform the job for achieving organizational goals is the output of

sophisticated selection system. The result of the study depicts positive relationship between

training & development and organizational commitment (r = .488, p < 0.01). The result of

the present study in line with studies of Obeidat et al. (2014), Mutsoli et al. (2015) and

Warsame (2015). Their results sustained the argument that training was a costly movement

97

however it could give diverse points of interest i.e. enhanced workers execution, expanded

profitability and worker improvement. The result of the current study indicates that positive

relationship between performance appraisal and organizational commitment is (r = .427, p

< 0.01). The result of the present study is consistent with Hemdi (2009), Bal et al. (2014)

and Kadiresan et al. (2015). They support the arguments that fairness of performance

appraisal is closely related to employee’s commitment to their organization. The result also

shows that positive relationship between career planning and organizational commitment is

(r = .583, p < 0.01). The result of the current study supported by Nasurdin et al. (2008), Tan

(2008) and Younis et al. (2013). The findings support the arguments when organizations

focus on career planning their employee’s organizational commitment is enhanced. The

finding of the present study depicts that positive relationship between compensation and

organizational commitment is (r = .586; p < 0.01). Same results were mentioned by Bal et

al. (2014), Obeidat et al. (2014) and Warsame (2015). They argued that performance-based

compensation positively influences employee’s performance & commitment. The result of

the study indicates that there is positive relationship between perceived organizational

support and organizational commitment is (r = .673; p < 0.01). The findings of the current

study in line with Nasurdin et al. (2008), Hemdi (2009) and Khattak et al. (2014). They

explored that higher perceived organizational support make employees more committed to

their organization.

The result of the study indicates that perceived organizational support when treated as

mediator showed partial mediation between recruitment & selection and organizational

commitment (β = 0.1115, p = .0096). The finding of this study is consistent with (Guchait,

2007) and (Meyer & Smith, 2000). They found that perceived organizational support

98

partially mediates in the relationship between recruitment & selection and organizational

commitment. The result of the present study depicts that perceived organizational support

partially mediates between training & development and organizational commitment (β =

0.2831, p = .000). Same result were mentioned by (Guchait, 2007) and (Hemdi, 2009). They

found that perceived organizational support has proven partial mediation between training

& development and organizational commitment. The finding of the study reveals that there

is perceived organizational support fully mediates between performance appraisal and

organization commitment (β = 0.0275, p = 0.5376). The result of the study is consistent

with Meyer and Smith (2000) in which they found that there is no relationship between

performance appraisal and organizational commitment and perceived organizational support

fully mediates in the relationship between performance appraisal and organizational

commitment. In contrast Nasurdin et al. (2008) found that perceived organizational support

act as partial mediation between performance appraisal and organizational commitment. The

study was conducted in business firm. The results has not fully encouraging because two set

of HRM practices were investigated. The result of the current study depicts that perceived

organizational support partially mediates between career planning and organizational

commitment (β = 0.2709, p = 0.000). The present findings are supported by Tan (2008),

Nasurdin et al. (2008) and Hemdi (2009). They explored that partial mediation has been

proved between career planning and organizational commitment. The result of the current

study shows that perceived organizational support partially mediates in the relationship

between compensation and organizational commitment (β = 0.2712, p = 0.000). Same result

were mentioned by Dinc (2015) in which he explored that perceived organizational support

partially mediates between compensation and organizational commitment.

99

5.2 CONCLUSION

This study aims to investigate the mediating role of perceived organizational support

between HRMP (RS, TD, PA, CP, COM) and organizational commitment among the

workforce working in the Banking Sector of Khyber Pakhtunkhwa, Pakistan. A sample of

225 bankers was taken from both public/private sector banks (NBP, BOK, ABL, UBL, HBL

and MCB) in southern region districts (Dera Ismail Khan, Tank, Bannu, Lakki Marwat,

Karak) of Khyber Pakhtunkhwa, Pakistan. Questionnaire was used for data collection. The

instrument is validated through the experts in the field of social sciences. For construct

validity, factor analysis have done by using Principal component method. For the internal

consistency of the instrument, Cornbach’s Alpha was used through SPSS (Version, 21.0).

The correlation, mediation regression analysis, ANOVA and t-test were used as inferential

statistics for data analysis using (SPSS 21.0). It is concluded from the findings of the study

that both HRM practices and perceived organizational support act as predictors to dependent

variable organizational commitment. While the result of the current study explored that

perceived organizational support partially mediates the relationship between four out of five

HRM practices (recruitment & selection, training & development, career planning,

compensation) and organizational commitment. Further investigation reveals that perceived

organizational support fully mediates the relationship between performance appraisal and

organizational commitment. The demographic variables, designation, qualification,

experience, gender and marital status were also used. One way ANOVA test was conducted

on designation, qualification, experience and t-test was conducted on Gender and Marital

Status to check mean difference. The results of these tests are reported in chapter four with

detailed discussion and analysis.

100

5.2.1 IMPLICATION FOR MANAGEMENT

Management in banking sector needs to take up straightforward methodology for

recruitment & selection of human resource, in view of all around characterized legitimacy

and reasonable framework created through managerial skilled ideas, using standardized test

to examine the correct required state of mind, abilities and learning in potential applicants.

Similarly for creating high level of organizational commitment and company ownership with

superb administration and efficiency, the comprehensive training & development programs

should be organized to refresh worker abilities for addressing the difficulties of

contemporary intensity. As to performance appraisal, management may need to prepare their

managers keeping in mind the end goal to have the capacity to unbiasedly and precisely

assess the work performance of their subordinates.

Viable performance management exercises will have the capacity to encourage workers to

become well perform, prompting higher responsibility. Organizational commitment needs

suitable workers dealing with so they remain in the organization, it needs a reasonable career

planning system. The career planning system depends on clear career structure, allied

objectives with organizational vision, utilized for progression arranging, straightforward

inside employment, and equal clear job opportunity. Compensation is the incentive for which

greater part of the general population work. If it is rewarded on time, on ability and

equivalent with market packages, at that point it influences workers to feel more joyful and

they contribute more. Compensation framework in view of anticipation of workers, similar

with market packages, ability based, execution based and benefit sharing based instrument,

covering both money related and non-budgetary measurements.

101

Workers who perceive that their employer thinks about them, respond with positive work

states of mind (organizational commitment), reduced absenteeism, expanded execution and

development. Thusly, the finding recommends that higher perceived organizational support

make workers more dedicated to their employer.

The results would be more essential for banking sector management in light of the fact that

an employer practices a few various HRM practices and not some particular HRM practices.

The discoveries would give a chance to choose which practices work for an organization

and which do not. Organization should launching proper an appropriate strategy for

observing the usage of HRM practices to increase higher execution and profitability.

5.3 Limitations of the study

Limitations are potential weaknesses of the study that cannot control. They are short coming

and weaknesses that cannot control by the research (Simon, 2011). Following are the

limitations of the study:-

The present study are conducted in southern districts of Khyber Pakhtunkhwa, so the results

of the current study cannot be generalized or implemented in banking sector of other

districts.

The larger response rate is highly essential in social sciences research. Few questionnaires

(4%) were uncompleted which is one of the weakness of this present study.

102

5.4 Recommendation for future Research

Recommendation for future research directions may include:

This study was carried out in southern districts (D.I.Khan, Bannu, Karak. Lakki Marwat,

Tank) banking sector of Khyber Pakhtunkhwa, Pakistan. In order to generalize the findings

of this study, this research may be carried out with other province of Pakistan.

Five HRMP (RS, TD, PA, CP and COM) were investigated in this study. Future studies

should consider other practices such as employment security, employee participation, job

rotation and information sharing.

POS used as mediators in the relationships between HRMP and OC. Future researchers may

use other mediating variables such as job satisfaction and procedural justice which may

perhaps be better in explaining the hypothesized relationships.

The current study was carried out in banking sector. Thus the future researchers may be

conducted this study in other sectors such as industries, education and health etc.

The present study was conducted by using descriptive design. This study may be further

conducted through Mixed Method Research (MMR) design.

Future researchers may be used both public and private sector banks for comparative study.

103

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Annexure # 1 Questionnaire




Pakhtunkhwa Pakistan

Dear Respondent!

This questionnaire is purely for academic purposes (PhD) therefore your cooperation

will highly be appreciated in terms of helping the student to get fair data on the topic.

Thanks a lot!

Zia ur Rehman

(Candidate for PhD in Management Sciences) Qurtuba University of Science & IT, D.I.Khan

Demographic Information

Please mark a tick in the appropriate box

1. Deptt/Institution: ___________________________________

2. Designation: OG-III OG-II OG-I AVP

3. Qualification: Graduate Master MS/MPhil

4. Gender: Male Female

5. Marital Status: Married Unmarried

6. Length of Service: 1-5 6-10 11-15 16-20 Above 20

7. Age: 21-30 31-40 41-50 51-60 Above 60

8. Domicile: Local Non-Local

135

How far do You Agree or Disagree with the following statements on 5-point scale:

Strongly Agree Agree Undecided Disagree Strongly Disagree

5 4 3 2 1

HRM Practices

Recruitment & Selection

9 Recruitment & selection system followed in our

organization is well defined. 5 4 3 2 1

10 In our organization valid and standardized tests are used

in the selection process of employees. 5 4 3 2 1

11

Selection system in our organization selects those

having the desired knowledge, skills, qualification and

attitudes.

5 4 3 2 1

12 Our organization uses comprehensive selection process

before rendering a decision. 5 4 3 2 1

13 Our organization selects employees without any bias. 5 4 3 2 1

Training & Development

14 Our organization conducts extensive (T&D) programs for

Employees. 5 4 3 2 1

15 There are formal (T&D) programs to teach new employees the

skills they needed. 5 4 3 2 1

16 T&D programs are useful and based on the organizational

strategy. 5 4 3 2 1

17 T&D has helped reduce employee turnover in our organization.

5 4 3 2 1

18 T&D has resulted in higher employee performance in our

organization. 5 4 3 2 1

Performance Appraisal

19 Performance of the employees is measured on the basis of

objectives and quantifiable results. 5 4 3 2 1

20 Performance Appraisal system in our organization is growth

and development oriented. 5 4 3 2 1

21 Performance Appraisal system is unbiased and transparent.

5 4 3 2 1

22 Performance Appraisal information is used for bonuses,

promotions and selected training.

5 4 3 2 1

23 In our organization, performance appraisal is not used for

penalization. 5 4 3 2 1

136

Career Planning

24 Employees at each level in our organization are aware about

their career ladder. 5 4 3 2 1

25 In our organization internal hiring is preferred over external. 5 4 3 2 1

26 New employees always get inspired by our career planning and

development system. 5 4 3 2 1

27 Minorities and women have comparable opportunities of

growth and development. 5 4 3 2 1

28 Our organization provides opportunities to develop skills

needed to attain career goal. 5 4 3 2 1

Compensation

29 In our organization, salary and other benefits are comparable to

the market. 5 4 3 2 1

30 In our organization, compensation is decided on the basis of

competence of the employees. 5 4 3 2 1

31 The compensation for all employees is directly linked to their

performance. 5 4 3 2 1

32 In our organization, profit sharing is used as a mechanism to

reward higher performance. 5 4 3 2 1

33 Our organization offers both financial and non-financial

rewards without discrimination.

5 4 3 2 1

Organizational Commitment (OC)

34 I will spend my whole career with this organization. 5 4 3 2 1

35 I feel emotionally attached with this organization. 5 4 3 2 1

36 I usually feel the problems of my organization as my own. 5 4 3 2 1

37 I feel that this organization has personal meaning for me. 5 4 3 2 1

38 My Life will be disrupted if I decided to leave this Organization. 5 4 3 2 1

39 It would be costly for me to leave this organization. 5 4 3 2 1

40 It is matter of necessity and desire to stay with this organization. 5 4 3 2 1

41 I think that now a day’s people move to other organization quite

regularly. 5 4 3 2 1

42 I believe that a person must be devoted to his organization. 5 4 3 2 1

43 It seems unethical to me to jump from organization to

organization. 5 4 3 2 1

137

Perceived Organizational Support (POS)

44 The organization cares about my well-being.

5 4 3 2 1

45 The organization cares about my opinions.

5 4 3 2 1

46 The organization considers my goals and values.

5 4 3 2 1

47 The organization cares about my general satisfaction at work.

5 4 3 2 1

48 The organization is willing to help me when I need a special

favor. 5 4 3 2 1

49 The organization shows very little concern for me.

5 4 3 2 1

50 The organization would ignore any complaint from me.

5 4 3 2 1

51 Even if I did the best job possible, the organization would fail

to notice.

5 4 3 2 1

52 The organization tries to make my job as interesting as possible.

5 4 3 2 1

53 If I decided to quit, the organization would try to convince me

to stay.

5 4 3 2 1

Thanks!

138

Annexure # 2 Mediation Results

Run MATRIX procedure:

************* PROCESS Procedure for SPSS Release 2.16.3 ******************

Written by Andrew F. Hayes, Ph.D. www.afhayes.com

Documentation available in Hayes (2013). www.guilford.com/p/hayes3

************************************************************************

**

Model = 4

Y = OC

X = RS

M = POS

Sample size

218

************************************************************************

**

Outcome: POS

Model Summary

R R-sq MSE F df1 df2 p

.4201 .1765 .4796 46.2945 1.0000 216.0000 .0000

Model

coeff se t p LLCI ULCI

constant 1.9374 .1952 9.9256 .0000 1.5527 2.3221

RS .3545 .0521 6.8040 .0000 .2518 .4572

************************************************************************

**

Outcome: OC

Model Summary


.6854 .4697 .2649 95.2312 2.0000 215.0000 .0000

Model


constant 1.1863 .1751 6.7761 .0000 .8412 1.5313

POS .5664 .0506 11.2000 .0000 .4667 .6661

RS .1115 .0427 2.6121 .0096 .0274 .1956

************************* TOTAL EFFECT MODEL ****************************

139

Outcome: OC

Model Summary


.4005 .1604 .4176 41.2542 1.0000 216.0000 .0000

Model


constant 2.2837 .1821 12.5380 .0000 1.9247 2.6427

RS .3123 .0486 6.4229 .0000 .2164 .4081

***************** TOTAL, DIRECT, AND INDIRECT EFFECTS ********************

Total effect of X on Y

Effect SE t p LLCI ULCI

.3123 .0486 6.4229 .0000 .2164 .4081

Direct effect of X on Y


.1115 .0427 2.6121 .0096 .0274 .1956

Indirect effect of X on Y

Effect Boot SE BootLLCI BootULCI

POS .2008 .0401 .1327 .2908

Partially standardized indirect effect of X on Y


POS .2854 .0531 .1882 .3989

Completely standardized indirect effect of X on Y


POS .2575 .0504 .1660 .3640

Ratio of indirect to total effect of X on Y


POS .6430 .1296 .4327 .9379

Ratio of indirect to direct effect of X on Y


POS 1.8013 6.6846 .7427 11.6136

R-squared mediation effect size (R-sq_med)


POS .1435 .0370 .0782 .2230

Normal theory tests for indirect effect

Effect se Z p

.2008 .0346 5.7982 .0000

******************** END MATRIX *************************

140





************************************************************************

**

Model = 4

Y = OC

X = TD

M = POS

Sample size

218

************************************************************************

**

Outcome: POS

Model Summary


.3427 .1174 .5140 28.7354 1.0000 216.0000 .0000

Model


constant 1.8708 .2575 7.2640 .0000 1.3632 2.3784

TD .3606 .0673 5.3605 .0000 .2280 .4932

************************************************************************

**

Outcome: OC

Model Summary


.7264 .5277 .2360 120.1178 2.0000 215.0000 .0000

Model


constant .6455 .1947 3.3163 .0011 .2619 1.0292

POS .5297 .0461 11.4902 .0000 .4389 .6206

TD .2831 .0485 5.8355 .0000 .1875 .3788


Outcome: OC

Model Summary


.4876 .2377 .3791 67.3550 1.0000 216.0000 .0000

Model


constant 1.6365 .2212 7.3989 .0000 1.2006 2.0725

TD .4742 .0578 8.2070 .0000 .3603 .5881

141




.4742 .0578 8.2070 .0000 .3603 .5881



.2831 .0485 5.8355 .0000 .1875 .3788



POS .1910 .0429 .1146 .2800



POS .2715 .0570 .1668 .3915



POS .1964 .0415 .1168 .2769



POS .4029 .0868 .2657 .6194



POS .6747 .3578 .3619 1.6275



POS .1629 .0464 .0816 .2614


Effect se Z p

.1910 .0394 4.8428 .0000

******************** END MATRIX *************************

142





************************************************************************

**

Model = 4

Y = OC

X = PA

M = POS

Sample size

218

************************************************************************

**

Outcome: POS

Model Summary


.5969 .3563 .3749 119.5528 1.0000 216.0000 .0000

Model


constant 1.7841 .1383 12.9002 .0000 1.5115 2.0566

PA .4582 .0419 10.9340 .0000 .3756 .5407

************************************************************************

**

Outcome: OC

Model Summary


.6737 .4539 .2729 89.3436 2.0000 215.0000 .0000

Model


constant 1.3950 .1570 8.8857 .0000 1.0856 1.7044

POS .6005 .0581 10.3449 .0000 .4861 .7149

PA .0275 .0446 .6175 .5376 -.0603 .1153


Outcome: OC

Model Summary


.4267 .1820 .4068 48.0745 1.0000 216.0000 .0000

Model


constant 2.4664 .1441 17.1200 .0000 2.1824 2.7503

PA .3026 .0436 6.9336 .0000 .2166 .3887

143




.3026 .0436 6.9336 .0000 .2166 .3887



.0275 .0446 .6175 .5376 -.0603 .1153



POS .2751 .0388 .2049 .3532



POS .3910 .0466 .3066 .4815



POS .3879 .0466 .3003 .4820



POS .9091 .1990 .6509 1.4517



POS 10.0005 110.8091 2.6746 2633.0377



POS .1811 .0592 .0707 .2945


Effect se Z p

.2751 .0367 7.4981 .0000

******************** END MATRIX *************************

144





************************************************************************

**

Model = 4

Y = OC

X = CP

M = POS

Sample size

218

************************************************************************

**

Outcome: POS

Model Summary


.5746 .3302 .3901 106.4666 1.0000 216.0000 .0000

Model


constant 1.1577 .2049 5.6491 .0000 .7537 1.5616

CP .5756 .0558 10.3183 .0000 .4656 .6855

************************************************************************

**

Outcome: OC

Model Summary


.7144 .5103 .2447 112.0213 2.0000 215.0000 .0000

Model


constant .9401 .1739 5.4070 .0000 .5974 1.2829

POS .4665 .0539 8.6569 .0000 .3603 .5727

CP .2709 .0540 5.0194 .0000 .1646 .3773


Outcome: OC

Model Summary


.5828 .3396 .3284 111.0765 1.0000 216.0000 .0000

Model


constant 1.4802 .1880 7.8718 .0000 1.1096 1.8508

CP .5395 .0512 10.5393 .0000 .4386 .6403

145




.5395 .0512 10.5393 .0000 .4386 .6403



.2709 .0540 5.0194 .0000 .1646 .3773



POS .2685 .0410 .1943 .3635



POS .3816 .0530 .2871 .5028



POS .2901 .0414 .2186 .3888



POS .4977 .0714 .3740 .6558



POS .9910 .3389 .5975 1.9049



POS .2822 .0512 .1842 .3836


Effect se Z p

.2685 .0406 6.6137 .0000

******************** END MATRIX *************************

146





************************************************************************

**

Model = 4

Y = OC

X = COM

M = POS

Sample size

218

************************************************************************

**

Outcome: POS

Model Summary


.4919 .2419 .4415 68.9312 1.0000 216.0000 .0000

Model


constant 1.8170 .1756 10.3443 .0000 1.4708 2.1632

COM .4299 .0518 8.3025 .0000 .3279 .5320

************************************************************************

**

Outcome: OC

Model Summary


.7337 .5384 .2306 125.3681 2.0000 215.0000 .0000

Model


constant 1.0158 .1553 6.5426 .0000 .7098 1.3218

POS .4693 .0492 9.5425 .0000 .3724 .5663

COM .2712 .0430 6.3086 .0000 .1865 .3559


Outcome: OC

Model Summary


.5855 .3428 .3268 112.6906 1.0000 216.0000 .0000

Model


constant 1.8685 .1511 12.3636 .0000 1.5706 2.1664

COM .4730 .0446 10.6156 .0000 .3851 .5608

147




.4730 .0446 10.6156 .0000 .3851 .5608



.2712 .0430 6.3086 .0000 .1865 .3559



POS .2018 .0386 .1289 .2837



POS .2868 .0490 .1939 .3845



POS .2498 .0429 .1628 .3349



POS .4266 .0693 .2945 .5650



POS .7440 .2312 .4175 1.2988



POS .2574 .0479 .1538 .3446


Effect se Z p

.2018 .0323 6.2441 .0000

******************** END MATRIX *************************

148

Annexure # 3 Tables of Mean Differences

ANOVA

Sum of Squares df Mean Square F Sig.

RECRUITMENT & SELECTION

Between Groups 1.699 3 .566 .693 .557

Within Groups 174.967 214 .818

Total 176.666 217

TRAINING & DEVELOPMENT

Between Groups 2.514 3 .838 1.615 .187


Total 113.565 217

PERFORMANCE APPRAISAL

Between Groups 13.845 3 4.615 4.947 .002


Total 213.505 217

CAREER PLANNING

Between Groups 9.256 3 3.085 5.687 .001


Total 125.353 217

COMPENSATION

Between Groups 7.071 3 2.357 3.201 .024


Total 164.643 217

PERCEIVED ORGANIZATIONAL

SUPPORT

Between Groups 4.026 3 1.342 2.359 .073


Total 125.786 217

ORGANIZATIONAL COMMITMENT

Between Groups 1.488 3 .496 1.002 .393


Total 107.419 217

149

Multiple Comparisons

Tukey HSD

Dependent Variable (I)

DESIGNATION

(J)

DESIGNATION

Mean

Difference (I-

J)

Std.

Error

Sig. 95% Confidence Interval

Lower

Bound

Upper

Bound

PERFORMANCE

APPRAISAL

OG-III

OG-II .37926 .15316 .067 -.0173 .7758

OG-I .48008* .17644 .035 .0232 .9369

AVP .89457* .29765 .016 .1238 1.6653

OG-II

OG-III -.37926 .15316 .067 -.7758 .0173

OG-I .10082 .18136 .945 -.3688 .5704

AVP .51532 .30059 .319 -.2630 1.2937

OG-I

OG-III -.48008* .17644 .035 -.9369 -.0232

OG-II -.10082 .18136 .945 -.5704 .3688

AVP .41449 .31310 .549 -.3962 1.2252

AVP

OG-III -.89457* .29765 .016 -1.6653 -.1238

OG-II -.51532 .30059 .319 -1.2937 .2630

OG-I -.41449 .31310 .549 -1.2252 .3962

CAREER PLANNING

OG-III

OG-II .42011* .11679 .002 .1177 .7225

OG-I .36582* .13454 .035 .0174 .7142

AVP -.09070 .22697 .978 -.6784 .4970

OG-II

OG-III -.42011* .11679 .002 -.7225 -.1177

OG-I -.05429 .13829 .979 -.4124 .3038

AVP -.51081 .22922 .119 -1.1043 .0827

OG-I

OG-III -.36582* .13454 .035 -.7142 -.0174

OG-II .05429 .13829 .979 -.3038 .4124

AVP -.45652 .23875 .226 -1.0747 .1617

AVP

OG-III .09070 .22697 .978 -.4970 .6784

OG-II .51081 .22922 .119 -.0827 1.1043

OG-I .45652 .23875 .226 -.1617 1.0747

COMPENSATION

OG-III

OG-II .28360 .13606 .162 -.0687 .6359

OG-I .39899 .15674 .056 -.0069 .8049

AVP -.14884 .26443 .943 -.8335 .5359

OG-II

OG-III -.28360 .13606 .162 -.6359 .0687

OG-I .11539 .16111 .891 -.3018 .5326

AVP -.43243 .26704 .370 -1.1239 .2590

OG-I

OG-III -.39899 .15674 .056 -.8049 .0069

OG-II -.11539 .16111 .891 -.5326 .3018

AVP -.54783 .27815 .203 -1.2680 .1724

AVP OG-III .14884 .26443 .943 -.5359 .8335

150

OG-II .43243 .26704 .370 -.2590 1.1239

OG-I .54783 .27815 .203 -.1724 1.2680

*. The mean difference is significant at the 0.05 level.

151

ANOVA



Between Groups 1.484 2 .742 .911 .404


Total 176.666 217


Between Groups .755 2 .377 .719 .488


Total 113.565 217


Between Groups 5.529 2 2.764 2.858 .060


Total 213.505 217

CAREER PLANNING

Between Groups 7.857 2 3.929 7.189 .001


Total 125.353 217

COMPENSATION

Between Groups 11.498 2 5.749 8.071 .000


Total 164.643 217


SUPPORT

Between Groups 1.355 2 .677 1.170 .312


Total 125.786 217


Between Groups 2.081 2 1.041 2.124 .122


Total 107.419 217

152


Tukey HSD

Dependent Variable (I)

QUALIFICATIO

N

(J)

QUALIFICATION

Mean

Difference (I-

J)

Std. Error Sig. 95% Confidence Interval

Lower Bound Upper Bound

CAREER

PLANNING

GRADUATE MASTER -.40833* .13775 .009 -.7334 -.0832

MS/MPHIL -.01462 .17194 .996 -.4204 .3912

MASTER GRADUATE .40833* .13775 .009 .0832 .7334

MS/MPHIL .39371* .13482 .011 .0755 .7119

MS/MPHIL GRADUATE .01462 .17194 .996 -.3912 .4204

MASTER -.39371* .13482 .011 -.7119 -.0755

COMPENSATION

GRADUATE MASTER -.59722* .15727 .001 -.9684 -.2261

MS/MPHIL -.67544* .19629 .002 -1.1387 -.2122

MASTER GRADUATE .59722* .15727 .001 .2261 .9684

MS/MPHIL -.07822 .15392 .867 -.4415 .2850

MS/MPHIL GRADUATE .67544* .19629 .002 .2122 1.1387

MASTER .07822 .15392 .867 -.2850 .4415


153

ANOVA



Between Groups 1.283 4 .321 .389 .816


Total 176.666 217


Between Groups 5.722 4 1.431 2.826 .026


Total 113.565 217


Between Groups 5.805 4 1.451 1.488 .207


Total 213.505 217

CAREER PLANNING

Between Groups 6.732 4 1.683 3.022 .019


Total 125.353 217

COMPENSATION

Between Groups 8.669 4 2.167 2.959 .021


Total 164.643 217


SUPPORT

Between Groups 2.638 4 .659 1.141 .338


Total 125.786 217


Between Groups 9.488 4 2.372 5.159 .001


Total 107.419 217

154


Tukey HSD

Dependent Variable (I) LENGTH OF

SERVICE

(J) LENGTH OF

SERVICE

Mean

Difference

(I-J)

Std.

Error

Sig. 95% Confidence

Interval

Lower

Bound

Upper

Bound

TRAINING &

DEVELOPMENT

1-5

6-10 -.05965 .10537 .980 -.3496 .2303

11-15 -.58728* .18996 .019 -1.1099 -.0646

16-20 -.51228 .36196 .619 -1.5081 .4836

Above 20 .03772 .26025 1.000 -.6783 .7537

6-10

1-5 .05965 .10537 .980 -.2303 .3496

11-15 -.52763 .19572 .058 -1.0661 .0108

16-20 -.45263 .36502 .728 -1.4569 .5516

Above 20 .09737 .26448 .996 -.6303 .8250

11-15

1-5 .58728* .18996 .019 .0646 1.1099

6-10 .52763 .19572 .058 -.0108 1.0661

16-20 .07500 .39777 1.000 -1.0194 1.1694

Above 20 .62500 .30811 .256 -.2227 1.4727

16-20

1-5 .51228 .36196 .619 -.4836 1.5081

6-10 .45263 .36502 .728 -.5516 1.4569

11-15 -.07500 .39777 1.000 -1.1694 1.0194

Above 20 .55000 .43573 .715 -.6488 1.7488

Above 20

1-5 -.03772 .26025 1.000 -.7537 .6783

6-10 -.09737 .26448 .996 -.8250 .6303

11-15 -.62500 .30811 .256 -1.4727 .2227

16-20 -.55000 .43573 .715 -1.7488 .6488

CAREER PLANNING

1-5

6-10 .11579 .11051 .833 -.1883 .4198

11-15 -.50000 .19923 .092 -1.0481 .0481

16-20 -.50000 .37962 .681 -1.5444 .5444

Above 20 .30000 .27294 .807 -.4509 1.0509

6-10

1-5 -.11579 .11051 .833 -.4198 .1883

11-15 -.61579* .20527 .025 -1.1805 -.0510

16-20 -.61579 .38282 .494 -1.6690 .4375

Above 20 .18421 .27738 .964 -.5789 .9474

11-15

1-5 .50000 .19923 .092 -.0481 1.0481

6-10 .61579* .20527 .025 .0510 1.1805

16-20 .00000 .41717 1.000 -1.1478 1.1478

Above 20 .80000 .32314 .100 -.0891 1.6891

16-20 1-5 .50000 .37962 .681 -.5444 1.5444

155

6-10 .61579 .38282 .494 -.4375 1.6690

11-15 .00000 .41717 1.000 -1.1478 1.1478

Above 20 .80000 .45699 .405 -.4573 2.0573

Above 20

1-5 -.30000 .27294 .807 -1.0509 .4509

6-10 -.18421 .27738 .964 -.9474 .5789

11-15 -.80000 .32314 .100 -1.6891 .0891

16-20 -.80000 .45699 .405 -2.0573 .4573

COMPENSATION

1-5

6-10 .11754 .12672 .886 -.2311 .4662

11-15 -.66930* .22845 .031 -1.2978 -.0408

16-20 .08070 .43531 1.000 -1.1170 1.2784

Above 20 .23070 .31298 .948 -.6304 1.0918

6-10

1-5 -.11754 .12672 .886 -.4662 .2311

11-15 -.78684* .23538 .009 -1.4344 -.1393

16-20 -.03684 .43898 1.000 -1.2446 1.1709

Above 20 .11316 .31807 .997 -.7619 .9883

11-15

1-5 .66930* .22845 .031 .0408 1.2978

6-10 .78684* .23538 .009 .1393 1.4344

16-20 .75000 .47837 .520 -.5661 2.0661

Above 20 .90000 .37054 .112 -.1195 1.9195

16-20

1-5 -.08070 .43531 1.000 -1.2784 1.1170

6-10 .03684 .43898 1.000 -1.1709 1.2446

11-15 -.75000 .47837 .520 -2.0661 .5661

Above 20 .15000 .52403 .999 -1.2917 1.5917

Above 20

1-5 -.23070 .31298 .948 -1.0918 .6304

6-10 -.11316 .31807 .997 -.9883 .7619

11-15 -.90000 .37054 .112 -1.9195 .1195

16-20 -.15000 .52403 .999 -1.5917 1.2917

ORGANIZATIONAL

COMMITMENT

1-5

6-10 -.09211 .10041 .890 -.3684 .1842

11-15 -.71974* .18102 .001 -1.2178 -.2217

16-20 -.44474 .34493 .698 -1.3937 .5043

Above 20 -.56974 .24800 .150 -1.2521 .1126

6-10

1-5 .09211 .10041 .890 -.1842 .3684

11-15 -.62763* .18651 .008 -1.1408 -.1145

16-20 -.35263 .34784 .849 -1.3096 .6044

Above 20 -.47763 .25203 .323 -1.1710 .2158

11-15

1-5 .71974* .18102 .001 .2217 1.2178

6-10 .62763* .18651 .008 .1145 1.1408

16-20 .27500 .37905 .950 -.7679 1.3179

Above 20 .15000 .29361 .986 -.6578 .9578

156

16-20

1-5 .44474 .34493 .698 -.5043 1.3937

6-10 .35263 .34784 .849 -.6044 1.3096

11-15 -.27500 .37905 .950 -1.3179 .7679

Above 20 -.12500 .41523 .998 -1.2674 1.0174

Above 20

1-5 .56974 .24800 .150 -.1126 1.2521

6-10 .47763 .25203 .323 -.2158 1.1710

11-15 -.15000 .29361 .986 -.9578 .6578

16-20 .12500 .41523 .998 -1.0174 1.2674


157

Levene’s Test for

Equality of Variance

t-test for Equality

of Means

F Sig.

Mean

Difference t

Sig.

(2-tailed)

RS Equal variances assumed

Equal variances not assumed

6.383

0.012 -0.18542

-0.18542

-0.983

-1.326

0.327

0.129

TD Equal variances assumed


0.001

0.927 0.32099

0.32099

2.141

2.187

0.033

0.036

PA Equal variances assumed


0.593

0.442 -0.00593

-0.00593

-0.029

-0.032

0.977

0.975

CP Equal variances assumed


0.611

0.435 0.01122

0.01122

0.070

0.071

0.944

0.944

COM Equal variances assumed


0.317

0.574 -0.06763

-0.06763

-0.371

-0.409

0.711

0.685

POS Equal variances assumed


3.008

0.084 0.02147

0.02147

0.135

0.170

0.893

0.866

OC Equal variances assumed


2.210

0.139 0.18782

0.18782

1.279

1.731

0.202

0.091

158

Levene’s Test for

Equality of Variance

t-test for Equality

of Means

F Sig.

Mean

Difference t

Sig.

(2-tailed)

RS Equal variances assumed


0.064

0.801 0.16138

0.16138

1.260

1.272

0.209

0.205

TD Equal variances assumed


1.271

0.261 0.26931

0.26931

2.656

2.565

0.009

0.011

PA Equal variances assumed


11.875

0.001 0.09081

0.09081

0.643

0.707

0.521

0.480

CP Equal variances assumed


0.358

0.550 0.27435

0.27435

2.572

2.567

0.011

0.011

COM Equal variances assumed


0.753

0.386 0.23425

0.23425

1.904

1.951

0.058

0.053

POS Equal variances assumed


0.008

0.930 0.15801

0.15801

1.464

1.482

0.145

0.140

OC Equal variances assumed


0.072

0.789 0.29622

0.29622

3.017

3.064

0.003

0.003

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Mediation of Perceived Organizational Support in the