Human Resource Management Practices on Employee Commitment: Indonesia Islamic Banking

Juliansyah Noor, Soleh Soleh, Meita Faittaahumi

Abstract

This article discusses organizational commitment in the context of Islamic banking. Specifically, we explored whether organizational commitment relates to its human resource management practices. In addition, it will also examine the role of perceived organizational support in this relationship. To achieve this goal, we conducted an online survey at one of the branches of the largest Islamic bank in Indonesia. Data were analyzed using structural equation modeling-partial least squares (SEM-PLS). The results showed that there were problems with human resources management (HRM) practices, perceived organizational support, and organizational commitment from Islamic banks, resulting in high turnover potential. Specifically, HRM practices and perceived organizational support were positively and significantly related to organizational commitment. However, perceived organizational support only mediated the relationship between HRM practices and normative and affective commitment, but not for the relationship between HRM practices and continuance commitment.


Keywords


Practices of Human Resource Management; ; Perceived Organizational Support; Employee Commitment

References

Aboramadan, M., Albashiti, B., Alharazin, H., & Dahleez, K. A. (2020). Human resources management practices and organizational commitment in higher education: The mediating role of work engagement. International Journal of Educational Management, 34(1), 154–174. https://doi.org/10.1108/IJEM-04-2019-0160

Adresi, A. Al, & Darun, M. R. (2017). Determining relationship between strategic human resource management practices and organizational commitment. International Journal of Engineering Business Management, 9(1), 1–9. https://doi.org/10.1177/1847979017731669

Afshari, L. (2021). Identification through meaning-making: identity enactment towards organizational commitment. Human Resource Development International, 00(00), 1–22. https://doi.org/10.1080/13678868.2021.1996171

Aggarwal-Gupta, M., Vohra, N., & Bhatnagar, D. (2017). Perceived Organizational Support and Organizational Commitment: The Mediational Influence of Psychological Well-Being. Journal of Business and Management, 16(2).

Akgunduz, Y., & Eryilmaz, G. (2018). Does turnover intention mediate the effects of job insecurity and co-worker support on social loafing? International Journal of Hospitality Management, 68(March 2017), 41–49. https://doi.org/10.1016/j.ijhm.2017.09.010

Aktar, A., & Pangil, F. (2017). The Relationship between Employee Engagement, HRM practices and Perceived Organizational Support: Evidence from Banking Employees. International Journal of Human Resource Studies, 7(3), 1. https://doi.org/10.5296/ijhrs.v7i3.11353

Allen, N., & Meyer, J. (1996). Affective , Continuance , and Normative Commitment to the Organization : An Examination of Construct Validity. Journal of Vocational Behavior, 49(3), 252–276. https://doi.org/https://doi.org/10.1006/jvbe.1996.0043

Almutawa, Z., Muenjohn, N., & Zhang, J. (2016). The effect of human resource management system on employees’ commitment: The mediating role of the AMO model. The Journal of Developing Areas, 50(6), 17–29. https://doi.org/10.1353/jda.2016.0147

Armstrong, M., & Taylor, S. (2014). Human Resource Management Research Methods. Armstrong’s Handbook of Human Resource Management Practice, 174–198.

Barney, J. B. (2018). Why resource-based theory’s model of profit appropriation must incorporate a stakeholder perspective. Strategic Management Journal, 39(13), 3305–3325. https://doi.org/10.1002/smj.2949

Bartel, A. P. (2000). Measuring the Employer’s Return on Investments in Training: Evidence from the Literature. Industrial Relations, 39(3), 502–524. https://doi.org/10.1111/0019-8676.00178

Bartlett, K. R. (2001). The relationship between training and organizational commitment: A study in the health care field. Human Resource Development Quarterly, 12(4), 335–352. https://doi.org/10.1002/hrdq.1001

Bashir, S., & Ramay, M. I. (2008). Determinants of Organizational Commitment A Study of Information Technology Professionals in Pakistan. Institute of Behavioral and Applied Management, 226–238.

Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: Where do we go from here? Journal of Management, 32(6), 898–925. https://doi.org/10.1177/0149206306293668

Bentzen, M., Kenttä, G., Richter, A., & Lemyre, P. N. (2020). Impact of job insecurity on psychological welland ill-being among high performance coaches. International Journal of Environmental Research and Public Health, 17(19), 1–15. https://doi.org/10.3390/ijerph17196939

Bimpitsos, C., & Petridou, E. (2012). A transdisciplinary approach to training: preliminary research findings based on a case analysis. European Journal of Training and Development, 36(9), 911–929. https://doi.org/doi:10.1108/03090591211280964

Bisharat, H., Obeidat, B. Y., Alrowwad, A., Tarhini, A., & Mukattash, I. (2016). The Effect of Human Resource Management Practices on Organizational Commitment in Chain Pharmacies in Jordan. International Journal of Business and Management, 12(1), 50. https://doi.org/10.5539/ijbm.v12n1p50

Chen, H., & Eyoun, K. (2021). Do mindfulness and perceived organizational support work? Fear of COVID-19 on restaurant frontline employees’ job insecurity and emotional exhaustion. International Journal of Hospitality Management, 94(August 2020), 102850. https://doi.org/10.1016/j.ijhm.2020.102850

Cherif, F. (2020). The role of human resource management practices and employee job satisfaction in predicting organizational commitment in Saudi Arabian banking sector. International Journal of Sociology and Social Policy, 40(7–8), 529–541. https://doi.org/10.1108/IJSSP-10-2019-0216

Collings, D. G., Scullion, H., & Vaiman, V. (2015). Human Resource Management Review Talent management : Progress and prospects. Human Resource Management Review, 25(3), 4–6. https://doi.org/10.1016/j.hrmr.2015.04.005

Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An Interdisciplinary review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602

Dane, E., & Brummel, B. J. (2014). Examining workplace mindfulness and its relations to job performance and turnover intention. Human Relations, 67(1), 105–128. https://doi.org/10.1177/0018726713487753

Dirani, K. M., & Kuchinke, K. P. (2011). Job satisfaction and organizational commitment: Validating the arabic satisfaction and commitment questionnaire (ASCQ), testing the correlations, and investigating the effects of demographic variables in the lebanese banking sector. International Journal of Human Resource Management, 22(5), 1180–1202. https://doi.org/10.1080/09585192.2011.556801

Duffy, R. D., & Dik, B. J. (2012). Research on Work as a Calling: Introduction to the Special Issue. Journal of Career Assessment, 20(3), 239–241. https://doi.org/10.1177/1069072711434409

Fey, C. F., Morgulis-Yakushev, S., Park, H. J., & Björkman, I. (2009). Opening the black box of the relationship between HRM practices and firm performance: A comparison of MNE subsidiaries in the USA, Finland, and Russia. Journal of International Business Studies, 40(4), 690–712. https://doi.org/10.1057/jibs.2008.83

Foss, N. J., Pedersen, T., Fosgaard, M. R., & Stea, D. (2014). Why Complementary HRM Practices Impact Performance: The Case of Rewards, Job Design, and Work Climate in a Knowledge‐Sharing Context. Human Resource Management, 56(6), 955–976. https://doi.org/doi:10.1002/hrm.21649

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). European Business Review When to use and how to report the results of PLS-SEM Article information. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Ijigu, A. W. (2015). The Effect of Selected Human Resource Management Practices on Employees ’ Job Satisfaction in Ethiopian Public Banks The Effect of Selected Human Resource Management Practices on Employees ’ Job Satisfaction in Ethiopian Public Banks. Emerging Markets Journal, 25(2), 276–292. https://doi.org/10.5195/emaj.2015.64

Iverson, R. D., & Roy, P. (1994). A Causal Model of Behavioral Commitment: Evidence From a Study of Australian Blue-collar Employees. Journal of Management, 20(1), 15–41. https://doi.org/10.1177/014920639402000102

Janjua, B. H., & Gulzar, A. (2014). The Impact of Human Resource Practices on Employee Commitment and Employee Retention in Telecom Sector of Pakistan: Exploring the Mediating Role of Employee Loyalty. IOSR Journal of Business and Management, 16(1), 76–81. https://doi.org/10.9790/487x-16167681

Jawaad, M., Amir, A., Bashir, A., & Hasan, T. (2019). Human resource practices and organizational commitment: The mediating role of job satisfaction in emerging economy. Cogent Business and Management, 6(1). https://doi.org/10.1080/23311975.2019.1608668

Johlke, M. C., Stamper, C. L., & Shoemaker, M. E. (2002). Antecedents to boundary-spanner perceived organizational support. Journal of Managerial Psychology, 17(2), 116–128. https://doi.org/10.1108/02683940210417049

Kuvaas, B., & Dysvik, A. (2009). Perceived investment in employee development, intrinsic motivation and work performance. Human Resource Management Journal, 19(3), 217–236. https://doi.org/10.1111/j.1748-8583.2009.00103.x

Lamba, S., & Choudhary, N. (2013). Impact of Hrm Practices on Organizational Commitment of Employees. Academy of Management Proceedings, 2013(1), 14342–14342.

Lin, W. Q., Yuan, L. X., Kuang, S. Y., Zhang, X. X., Lu, C. J., Lin, T. T., … Wang, P. X. (2020). Work engagement as a mediator between organizational commitment and job satisfaction among community health-care workers in China: a cross-sectional study. Psychology, Health and Medicine, 25(6), 666–674. https://doi.org/10.1080/13548506.2019.1634821

Mayes, B. T., Finney, T. G., Johnson, T. W., Shen, J., & Yi, L. (2017). The effect of human resource practices on perceived organizational support in the People’s Republic of China. International Journal of Human Resource Management, 28(9), 1261–1290. https://doi.org/10.1080/09585192.2015.1114768

Meyer, J. P., & Smith, C. A. (2009). HRM practices and organizational commitment: Test of a mediation model. Canadian Journal of Administrative Sciences, 17(4), 319–331. https://doi.org/10.1111/j.1936-4490.2000.tb00231.x

Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance, and normative commitment to the organization: A meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61(1), 20–52. https://doi.org/10.1006/jvbe.2001.1842

Mousa, S. K., & Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of Cleaner Production, 243. https://doi.org/10.1016/j.jclepro.2019.118595

Mowday, R. T., Porter, L. W., & Steers, R. M. (2014). Employee-Organization Linkages : The Psychology of Commitment , Absenteeism , and Turnover . by Richard T . Mowday ; Lyman W . Porter ; Richard M . Steers Review by : Stanley E . Seashore. In American Journal of Sociology (Vol. 88, pp. 1315–1317).

Nasurdin, A. M., Hemdi, M. A., & Guat, L. P. (2008). Does Perceived Organizational Support Mediate the Relationship Between Human Resource Management Practices and Organizational Commitment? Asian Academy of Management Journal, 13(1), 15–36.

Nazir, & Islam, J. U. (2017). Enhancing organizational commitment and employee performance through employee engagement An empirical check. South Asian Journal of Business Studies, 6(1), 98–114. https://doi.org/10.1108/SAJBS-04-2016-0036

Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory (3rd ed.). United States of America: McGraw-Hili, Inc.

Paşaoğlu, D. (2015). Analysis of the Relationship Between Human Resources Management Practices and Organizational Commitment from a Strategic Perspective: Findings from the Banking Industry. Procedia - Social and Behavioral Sciences, 207(2540), 315–324. https://doi.org/10.1016/j.sbspro.2015.10.101

Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior, Global Edition (17th ed.). Pearson.

Rutten, W., Blaas - Franken, J., & Martin, H. (2016). The impact of (low) trust on knowledge sharing. Journal of Knowledge Management, 20(2), 199–214. https://doi.org/10.1108/JKM-10-2015-0391

Sanders, K., Dorenbosch, L., & De Reuver, R. (2008). The impact of individual and shared employee perceptions of HRM on affective commitment: Considering climate strength. Personnel Review, 37(4), 412–425. https://doi.org/10.1108/00483480810877589

Sekaran, U., & Roger, B. (2016). Research Methods for Business (7th ed.). United Kingdom: John Wiley & Sons Ltd.

Settoon, R. P., Bennett, N., & Liden, R. C. (1996). Social Exchange in Organizations: Perceived Organizational Support, Leader-Member Exchange, and Employee Reciprocity. Journal of Applied Psychology, 81(3), 219–227.

Shannak, R. O., Obeidat, B. Y., & Masadeh, R. M. (2012). Culture and the Implementation Process of Strategic Decisions in Jordan. Journal of Management Research, 4(4), 257–281. https://doi.org/10.5296/jmr.v4i4.2160

Sial, M. A., Jilani, S. M. A., Imran, R., & Zaheer, A. (2011). Effect of human resource practices on organizational commitment in Pakistani universities. World Applied Sciences Journal, 15(6), 793–798.

Sulbout, J., Pichault, F., Jemine, G., & Naedenoen, F. (2022). Are skilled contingent workers neglected? Evidence from a cross-sector multiple case study on organizational career management practices. European Management Journal, 40(3), 429–440. https://doi.org/10.1016/j.emj.2021.07.005

Vickers, G., Mcdonald, M., & Grimes, J. (2015). A cross country comparison of best practices in recruitment and selection. Journal of Management and Marketing Research, 1–9. Retrieved from http://www.aabri.com/manuscripts/131728.pdf

Wasko, M. M., & Faraj, S. (2005). Why Should I Share? Examining Social Capital and Knowledge Contribution in Electronic Network of Practice. MIS Quarterly, 29(1), 35–57.

Yahaya, R., & Ebrahim, F. (2016). Leadership styles and organizational commitment: literature review. Journal of Management Development, 35(2), 190–216. https://doi.org/10.1108/JMD-01-2015-0004

Zhong, L., Wayne, S. J., & Liden, R. C. (2015). Job engagement, perceived organizational support, high-performance human resource practices, and cultural value orientations: A cross-level investigation. Journal of Organizational Behavior, 37(6), 823–844. https://doi.org/10.1002/job


Full Text: PDF

DOI: 10.15408/aiq.v1i1.32018

Refbacks

  • There are currently no refbacks.