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a focus on learning, quality, teamwork, and reengineering are driven by the way organization get things
done and how they treat their
people. These are fundamental issues. To state it plainly organizational excellence must be the work of
HR. Over the years, organizations the world over have become aware of the importance of Human
Resources. Many countries are becoming increasingly aware of
the need to involve people through participation, empowerment, better access and opportunity. The real
life experiences substantiate the assumption that no matter how sophisticated and modern the business
activates of the organization may become, it will find it extremely difficult to sustain its growth and
effectiveness unless human resources are complimentary to its operations.
HRM And Organizational Commitment
The Harvard concept stresses that HRM should lead to employee commitment not simply as a means
to employer objectives of improved productivity and profits, but because the fulfillment of many
employee needs is taken as a goal rather than merely a means to an end. High levels of employee
commitment have also been found to be related to the use of appropriate HRM practice (Guest, 2002),
and results from investing in HRM practices, which benefit employees. According to Ulrich (1998)
HRM increases employee contribution; that is, employees commitment to the organization and their
ability to deliver results.
Further, the study has begun to focus their attention on the moderating effect of human resources
management practices on organizational commitment The relationship between a variety of HRM
practices and organizational commitment has been investigated and argues that it is natural that HRM
practices would influence organizational commitment, as they are concerned with the management of
people. He points out that organizations that do not select the right employees to begin with, may not be
able to keep these employees in the end because of low employee morale arising from a poor job fit. He
also contends that organizations that do not socialize new employees into their jobs and or the
organization may not be able to cultivate from them a sense of loyalty and commitment to the
organization. Employee commitment may be more important in certain business environment than in
others. Commitment is more likely to be a goal of HRM in the service sector than in other sectors
because committed employees are important for customer loyalty and satisfaction.
Challenges Faced By The Banks
1. The challenge of this sector is the Indian companies, how to transform into global corporations
without losing the positive values and culture that they have developed.
2. As most part of the jobs in this industry is monotonous/repetitive and routine, the HRD Department
has to empower, engage and energies employees to create effectiveness & efficiency through
motivation organizational structures, systems & procedures are facilitators of these, and there is a need
to
focus
greater
attention
on
these
aspects
by
the
industry.
3. However, the emergence of a core and peripheral workforce in many organization has presented new
challenges for HR managers public & private sector organizations are fast becoming diverse
communities for core workers, flexibly employed casual and part-time workers, consultants, contractors
& business partners.
4. Certain rigidities have also developed in HRD within this banking system itself because this industry
is largely in the public sector.
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Conclusion
The changing environment, the forces of globalization and liberalization and the advances in
information and communication technology have major HR implications for the RBI as well. Financial
products are becoming increasingly complex and diverse, while the markets in which they trade get
progressively deregulated. It also possesses both opportunities & threats particularly for this public
sector bank.
This study identifies HRM Practices impact significantly on employee satisfaction and organizational
commitment. Further identifies that Job satisfaction lead to organizational commitment and there is
relationship among HRM practices, employee satisfaction and organizational commitment in Public
Sector Banks. Suggestions are provided for bank managers to evaluate the role of HRM practices and its
outcomes; how HRM practices can affect them; and how HRM can provide practical results for the
banking industry.
References
1.Andrew, H. 2000), A Study of Relationships between Job satisfaction and Organizational
commitment among Restaurant employees, Department of food and Beverage Management
2.William F. Harrah College of Hotel Administration University of Nevada, LasVegas.
Bergmann, T. J., Lester, S. W., De Meuse, K. P., and Grahn, J. L (2000), Integrating the three domains
of employee commitment: An exploratory study, The Journal of Business Research, Vol. 16 No.4, pp.
15-26.
3.Braton, J and Gold, J. (2003) HRM Theory and Practice, Palgrave, Macmillan, 3rd edition.
4.Cammann, C., Fchman, M., Jenkins, D. and Klesh. J. (1979) The Michigan organizational Assessment
questionnaire, Unpublished Manuscript, University of
Michigan, Ann Arbor, Michigan.
5.Eskildsen, J. K and Nussier, M. L. (2000), The managerial drivers of employee satisfaction and
loyalty, Total Quality Management, Vol. 11No. 4, pp.5-16.
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