Human resource management practices affecting organizational commitment: A study on CEO’s transformational leadership

Abstract

This research aims to explore the moderating effect of CEO's transformational leadership on the relationship between human resources management practice and employee organizational commitment. A total of 3,185 samples were surveyed of the top six out of 11 financial control groups in Taiwan. Results indicate that, other than performance management, the rest of the variables, including education and training, salary and remuneration, benefits, career development, and communication, have significant positive effects on employee organizational commitment. A CEO's transformational leadership, on the other hand, yielded no significant effect on employee organizational commitment. However, CEO's transformational leadership has significant positive moderating effect to theinfluence of performance management, salary and remuneration on employee organizational commitment, and significant negative moderating effect to theinfluence of communication on employee organizational commitment. Key words: Human resource management practices, CEO’s transformational leadership, organizational commitment, moderating effect.