Roles of Emerging HRM and Employee Commitment: Evidence from the Banking Industry of Bangladesh

Abstract

This study examines the roles emerging human resource management (HRM) plays in enhancing employee commitment to the organization from the perspective of social exchange theory (SET). In this relationship, HRM roles represent the mechanisms through which managers’ actions, behaviours and HRM procedures affect employees’ commitment to the organization. A self-administered questionnaire survey was employed for data collection from a sample of 217 respondents drawn from front-line employees working in private commercial banking organizations in Bangladesh. Using structural equation analysis, the results indicated a significant and positive influence of the roles of emerging HRM, namely, procedural justice, organizational communication, empowerment, employee development and participation as determinants of employee commitment to the organization. In this study, the five-dimensional emerging HRM roles had a positive relationship with employee commitment to the organization. Thus, organizations and their top management should have interest in, and nourish, a supportive HRM environment, and must provide a strong priority to HRM through which they will demonstrate their commitment to open communication, empowerment, participation, investment in employee development and a just environment to get employee commitment in a long-lasting, high-quality commitment-focused relationship.