HRM PRACTICES AND EMPLOYEE COMMITMENT IN N EPALESE

COMMERCIAL BANKS
- A Graduate Research Project

Submitted By: Amit Narayan Shrestha MBA Apex College

B ACKGROUND

Human resource management (HRM) refers to the policies and practices involved in carrying out the human resource (HR) aspects of a management position including human resource planning, job analysis, recruitment, selection, orientation, compensation, performance appraisal, training and development, and labor relations. (Dessler, 2007).
Employee commitment can be interpreted as the employees long-term relationship and intention to stay in the workplace along with an unshakable belief in the goals and objectives of his/her organization, followed by a devoted effort to reach these goals (Steers, 1977).

O BJECTIVE

OF THE STUDY

To identify the HRM practices those are used in commercial banks in Nepal. To examine the relationship between HRM practices and employee commitment of Nepalese commercial banks; To explore the impact of HRM practices on employee commitment of Nepalese commercial banks;

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

R ESEARCH

HYPOTHESIS

H1: There is a significant relationship between recruitment and selection and employee commitment. H2: There is a significant relationship between training and development and employee commitment. H3: There is a significant relationship between motivation and employee commitment. H4: There is a significant relationship between compensation and employee commitment. H5: There is a significant relationship between performance evaluation and employee commitment. H6: There is a significant relationship between information sharing and employee commitment. H7: There is a significant relationship between career development and employee commitment.

T HEORETICAL
Independent Variables Recruitment and Selection Training and Development Motivation Compensation

FRAMEWORK
Dependent Variables

Employee Commitment

Performance Evaluation
Information Sharing Career Development

R ESEARCH METHODOLOGY
AND DESIGN

Research design

Descriptive Research Quantitative Research Technique

Population

Employees of Nepalese Commercial Banks

Sampling

Convenience Sampling
120 sample 106 respondents

R ESEARCH METHODOLOGY
AND DESIGN

Instrumentation:

Self administered Questionnaire 5 Point Likert Scale Google Docs for online questionnaire

Data Collection Procedure:

Online via email

Drop and Collect

R ESEARCH METHODOLOGY
AND DESIGN

Analysis of data:

Statistical Package for Social Science (SPSS) software

Descriptive Statistics

Frequencies Percentages

Bivariate Statistics

Mean Standard Deviation

Correlation Analysis

Pearson Correlation Test

R ESULTS
Respondents Profile:

AND DISCUSSION

Gender wise participation of the respondents

Male 52% Female 48%

Age wise participation of the respondents

20-30 60% 30-40 33% 40-50 7%

Marital status of the respondents

Single 54% Married 46%

Educational Qualification of the respondents

Intermediate 1% Bachelor 50% Master 49%

R ESULTS

AND DISCUSSION

Designation of the respondents

Executive 29% Non- Executive 71%

No. of years in current bank of the respondents

1-5 61% 5-10 30% 10-15 9%

R ESULTS
Descriptive Analysis:
Descriptive Variable Recruitment and Selection Training and Development

AND DISCUSSION

Mean Value 3.2956 3.4214

Motivation
Compensation Performance Evaluation Information Sharing Career Development

3.5000
3.3208 3.5220 3.3113 3.4308

R ESULTS
Correlation Analysis:

AND DISCUSSION

Level of significance 0.01 (2tailed test)

Hypothesized Relationship H1: RnS H2: TnD H3: Mot H4: Com H5: PE H6: IS H7: CD EC EC EC EC EC EC EC Correlation 0.348 0.415 P-value 0.000 0.000 Conclusion Accepted Accepted Accepted Accepted Accepted Accepted Accepted

0.366
0.295 0.343 0.386 0.404

0.000
0.002 0.000 0.000 0.000

CONCLUSION

Employee perceive that HRM practices have significant relationship with employee commitment towards their organization.
All the variables have positive impact on employee commitment. The most influential variables:

Performance Evaluation

Motivation

I MPLICATION OF THE STUDY

This study crafts a new literature by testing the most important variables that influences employee commitment.
Human Resource Department of Nepalese Commercial Banks would be benefitted from the finding of this study. Researchers and other academic scholars would also be benefitted from the findings of the study.

S UGGESTIONS FOR FUTURE

RESEARCH

Other HRM practices that affect employee commitment such as grievance handling, HR planning, labour relationship, employee security, team activities, etc. could be used to assess the employee attitude (in form of employee commitment).
Similar research could be conducted for other sectors (NGO/INGOs, Industrial sector, etc. )

THANK YOU