HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE COMMITMENT IN BANKING INDUSTRY

This paper focuses on the evaluation of the relationship between human resource management (HRM) practices and the commitment of employees. A descriptive research design is adopted. A questionnaire survey is conducted in the banking industry of Nepal. The results indicate that the general status of each HRM domain is more than average but not considered too high. This study found an interesting fact in such a situation that employee commitment levels tend to be good or even better despite normal HRM practices. All aspects of HRM practices, such as compensation/pay, training and development, job description, employee participation and performance appraisal, show a clear positive association with all aspects of employee commitment, including affective commitment, continuance commitment and normative commitment, which means that if companies have competitive compensation policies, a well-written job description and participatory management strategy as well as an efficient performance appraisal method, the level of employee commitment would be high. Similarly, if the companies invest in training and development activities, employees are strongly committed to organizations. Therefore, it is highly important to formulate and apply effective HRM practices that spread positive vibes to all types of employees in an organization to achieve company objectives.