Human resource practices and organizational commitment: The mediating role of job satisfaction in emerging economy

Abstract

Human Resource Management (HRM) has the capacity of influencing the organizational behavior of the employees, thereby ensuring achievement of the corporate objectives. HRM positively influences firm performance which leads to Organizational Commitment. This study proposed to assess the relationship of HR practices & Organizational Commitment. It is also intended to test job satisfaction as a mediator, between HR practices and Organizational Commitment among the employees of the telecommunication sector of Pakistan. The data were gathered from 218 individuals employed at various telecommunication companies located in Lahore. PLS, SEM was performed on the data, using the SmartPLS 3 software. “Recruitment and Selection”, “Performance Appraisal Satisfaction”, “Rewards and Recognition” & “Work Environment” result in statistically significant variation in “Organizational Commitment”. Relationship of “Recruitment and Selection”, “Training” and “Work Environment” is complementarily mediated by “Job Satisfaction. Relationship of “Performance Appraisal Satisfaction” is Indirect-only mediated by “Job Satisfaction”. The relationship of “Reward and Recognition” and “Organizational Commitment” is not mediated by “Job Satisfaction”. Our findings contribute to the existing body of literature of how the different facets of Job Satisfaction can mediate the relationships among the HR practices adopted by firms & Organizational Commitment. Telecom companies should improvise extra attention over HR practices that contribute positively toward the performance of employees eventually accentuating employees’ level of satisfaction and consequently the quality of services rendered to customers.

Keywords

• hr practices
• organizational commitment
• job satisfaction
• recruitment and selection
• training
• reward and recognition
• performance appraisal satisfaction
• work environment
• mediation