The management of human resources in organizations has made a transition since
the 1980s from relative insignificance to strategic importance. Till the early
1970s, organizations operated in a relatively stable environment with distinct domestic
markets and minimal complexities. The late 1970s to the present has been characterized by
a dynamic global economy with cut-throat competition, information technological
advances and the upsurge of emerging economies (Schuler et al., 1993; and Anakwe, 2002). Therefore, as organizations continue to face a myriad of challenges, their survival
will depend upon how effectively they manage their human resources and implement
their Human Resource Management (HRM) practices
(Anakwe, 2002). The importance of HRM practices on organizational outcomes such as organizational commitment has
become an important topic for researchers. Various studies have stressed the benefits
to organizations of a loyal and committed workforce and the central role HRM
practices may play in creating and maintaining commitment (Iles et al., 1990; Iverson and Buttigieg, 1999; Meyer and Smith, 2000; and Gould-Williams, 2004). According to Meyer and
Smith (2000) unless employees believe they have been treated fairly, they will not be
committed to the organization.
This study extends Meyer and Allen's multidimensional organizational
commitment in several ways. First, although various studies have been carried out to determine
how employees' commitment to an organization develops, limited research has been
carried out on the potential impact of HRM practices on multidimensional
organizational commitment (Meyer and Smith, 2000; Agarwala, 2003; and Malhotra et al., 2007). According to Iles et
al. (1990), most of the predictors of organizational commitment
have been carried over from job satisfaction studies and include demographic variables,
job characteristics, role stressors, organizational characteristics among others
while variables more directly related to HRM practices have been neglected. This is
despite research evidence showing that organizational commitment is more strongly
influenced by employees' perceptions of HRM practices such as fairness of promotion
practices than by task or role variables (Oglivie, 1986; and Meyer and Smith, 2000). |