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The impact of HRM bundles and organisational commitment on managers' turnover intentions

Despite the significance of understanding the reasons under which talented individuals are more likely or less likely to quit, the nature of the relationship between Human Resource Management Practices (HRMPs) and turnover intentions has proven to be unclear. Prior studies suggest that talented employees’ turnover imposes significant negative impact on organisational performance, e.g. decrease in productivity, profitability, innovation, serviceability and morale of remaining employees. Likewise, a serious talented Frontline Managers (FLMs) turnover is observed in the private banks of Pakistan. The corresponding reason identified is their dissatisfaction with existing conventional HRMPs, which are typically bureaucratic in nature with no provision of training and development, and lack appreciation, seniority-based pay and promotions. Owing to these factors, FLMs are switching towards reputable government and multinational organisations. In fact, FLMs play an important role in the development and success of banks. To investigate this issue, the present study elaborates an examination of the use of synergistic HRMPs in an on-going effort to control the talented FLMs’ turnover intentions. Precisely, it examines the impact of two formative bundles, namely, skills-enhancing practices (SEPs, i.e. training and development) and motivation-enhancing practices (MEPs, i.e. pay, promotion, recognition and job security) on FLMs’ turnover intentions through organisational commitment. The research methodology employs a positivist philosophy, deductive approach and a quantitative method followed by a survey-based research design. A total of 500 questionnaires were distributed through random sampling technique; 344 questionnaires were finalised for analysis. PLS-SEM was used to test the research hypotheses. Contrary to conventional wisdom, the findings of this study indicate that both SEPs and MEPs demonstrate no significant direct impact on talented FLMs’ turnover intentions. However, organisational commitment (OC) has been found to fully mediate the relationships between both HRM bundles and FLMs’ turnover intentions. This research contributes to HRM literature particularly in the area of HRMPs—Turnover relationships. Furthermore, this study reveals that socio-economic relationships can be used to influence FLMs’ OC and turnover intentions. The findings further suggest that adoption of effective SEPs and MEPs in local banks enhance talented FLMs’ skills and motivation which eventually reduce their turnover intentions. Additionally, this study highlights the important and critical role of OC in HRMPs—turnover relationships, particularly in the Pakistani banking sector and further recommends management to review their HRMPs, which not only tend to reduce turnover but also lead to FLMs’ enhanced enthusiasm to serve.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:675753
Date January 2015
CreatorsMahesar, Hakim Ali
PublisherUniversity of Bedfordshire
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Sourcehttp://hdl.handle.net/10547/584266

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