Abstract
In the recent years, the banking industry of Malaysia has grown rapidly and the roles of employees are undeniable. In todays, dynamic environment banking industry is striving hard to retain the employees in the organization. Employee provides the basis for organization to be successful. The aim of this paper was to investigate the role of HR practices on turnover intentions directly and indirectly through organizational citizenship behavior in banking sector of Malaysia. Data collected through 510 questionnaires from top five banks (by Capital) branches in Kuala Lumpur, Malaysia. In order to investigate the hypotheses, this study applied Structural equation modelling (AMOS). Findings of this study portray that HR practices had negative effect on turnover intentions while the interesting finding is that indirect effect of HR practices through organizational citizenship were also significant. The results are beneficial for top management of banking sector of Malaysia in order to keep motivating employees and to retain them through proper implementation of OCB. To build and align the HR practices and OCB which results in reducing turnover intentions of employees.
Highlights
IntroductionBanking industry enhances the growth of economy and helps in establishing the new horizon
Banking industry serves the economy and country as the lifeline
From the above discussion and results, it has been concluded that HR practices have a significant impact in reducing turnover intentions, which gives clear indication that appropriate HR practices have a great deal of influence on reducing turnover intentions
Summary
Banking industry enhances the growth of economy and helps in establishing the new horizon. Banking industry helps in creating employment and new opportunity for millions of people. The services of banking sector are very important which mostly depends on the services provided to customers and most importantly the quality of services matter more which results in enhanced performance and productivity, the quality of such services are purely based on the employees. It is the employees whose role are so important in the success of the banking sector
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