Organizational Commitment in HRM Practices: Insights from the Ghanaian Banking Industrial Experience

Abstract

Organizational Commitment indicates the degree to which HRM practices are able to cultivate emotional connection between firms and employee goals. This study sought to investigate the nature of the relationship between the implementation of HRM practices and organizational commitment in the banking industry in Ghana. Employing the three-component model of Allen and Meyer as the underlying theory of organizational commitment, the researchers examined the six HRM practices in five selected commercial banks in Ghana. Adopting the quantitative method of research, a descriptive including a multiple regression analysis was used to analyze the existing relationship between the HRM practices and organizational commitment.            Findings from the study revealed that affective and normative forms of commitment were preferred to continuance forms of commitment. Again, whilst respondent’s affective and normative commitment included performance-based pay, communication and information sharing, training and development and rewards recognition, that of the continuance commitment also included communication, information sharing, recruitment and selection performance appraisal as well as rewards and recognition.  Results from the study show that when organization provides their employees with good rewards and recognition packages, compensation and performance evaluation systems, morally they feel obliged to keep their employment contract with such an organization. Hence, in exchange for employment, employees feel compelled to reciprocate such organizational policies with their loyalty and commitment. The study concludes that there is a positive relationship between the implementation of HRM practices and organizational commitment. A further study is therefore suggested towards the conduct of a qualitative study in all banks in Ghana to consider the applicability of generalizability on the subject matter.