Seyyed Mohammad noe pasand asil 1, Esmaeel malek akhlagh 1, Sahar maafi 2

Transcription

1 International Journal of Agriculture and Crop Sciences. Available online at IJACS/2013/5-19/ ISSN X 2013 IJACS Journal Analyzing the relationship between Human Resource Management (HRM) activities and employee s Intention to stay in the organization through organizational commitment Seyyed Mohammad noe pasand asil 1, Esmaeel malek akhlagh 1, Sahar maafi 2 1. Faculty member at the Department of Management, University of Guilan, Rasht, Guilan, Iran 2. M.B.A Student, Pardis branch, University of Guilan, Rasht, Guilan, Iran * Corresponding Author: Seyyed Mohammad noe pasand asil ABSTRACT: this study have been considered in order to analyzes the relationship between HRM activities and employee s intention to stay in the organization,and relationship between organizational commitment and employee s intention to stay in the organization and relationship between HRM activities and organizational commitment through Employees of manufacturing companies in the industrial city of Rasht. For reaching to the purposes of this study, the independent variable which is the human resource management activities have been considered in four dimensions, training and development, career development, compensation service and benefits and analyzing the performance and success.also, according to the related literature, the role of organizational commitment Variable on employee s intention to stay in the organization should also be examined that this variable is evaluated in three dimensions of continuance, affective and normative commitment. The standard questionnaire of Allen and Meyer have been used for measuring the Variable organizational commitment, and for measuring the human resource management activities a questionnaire designed by the researcher have been used. This study population consisted of all employees that are working in manufacturing and industrial companies in the city of Rasht and the number of them according to Rasht industrial city management is reported about people. The sample size in this study was 370 based on Cochran formula. In order to be able to analyze the data as needed sample size, 400 copies of questionnaires were distributed among the employees and the amount of the returned questionnaires were 378 which were the bases of analysis.the reliability of these questionnaires using Cranach s alpha coefficient was 0.89, that indicating good reliability of research tools. Variables Factor analysis indicated that the structures of study are in good concurrent validity.research data has shown that there is a significant relationship between HRM activities and employees tend to stay in the organization. Also there is a significant relationship Between HRM practices and emotional commitment and continuance commitment of staff, whereas there was no significant relationship between these variables with normative commitment. Also analyzing the indirect relationship between variables by using Structural equation modeling indicates that organization commitment plays the role of mediator variable in relation between human resource management and employees intention to stay in organization. Keywords: human resource management activities, organizational commitment, employees intention to stay in the organization, Rasht industrial city organization. INTRODUCTION Having proper understanding toward relationship between HRM and employees tend to stay in organization is one of the requirement of success in the competitive arena and it helps organization to make a right and accurate decision during planning time and Prioritize their future projects and considering the level of resources that are available for gaining better result and Achieve their corporate objectives. Ensure that scarce and vital resources of organization have been used proper and reasonable and also Creating and maintaining a safe working environment and friendly that people involved and committed in high level,

2 for organization is important. Because all the activities in this regard are affective in the ability of an organization to maximize its business profits and creates steady employment. The basic goal of strategic human resources management is creation of capability through guarantee and ensuring of skilled, committed and motivated personnel in the organization. Accordingly, the resource-based Human Resource strategies considered competitive advantage when The organization is able to held skilled human resources to learn faster than competitors and actualize their knowledge effective faster than them (Armstrong, 2002). In other hand, in debate about labor shortage, competition for rare skills and force shifting Barriers in market probably tend to focus on the labor efficiency not on the labor demands. nevertheless, in many organization that have the most problem, one of the most cost-effective measures to deal with the problem of rare resources is keeping the most significant and most skilled employees within the organization (Armstrong, 2001).In modern viewpoint of management and Age of learning organizations, The problem should not simply defined by the number of people firing the organization that is important in its position. But for those who seek to lead the organization, firing a skilled personnel and certified specialist is a lesion. So we should ask that what is the motivation of leaving the work? Why such these key workers separate from work by transferring to other agencies, voluntary retirement or redemption? With this regard the main goal of this study is analyzing the relationship between human resource management activities and organization commitment with employees tends to stay in the organization. Human resource management activities Compensation service compensation service system that salaries and benefits primarily discussed in this subset is considered part of the system of preserve human resources. Compensation service management is a term that rose earlier in American books but claim that the word reward management that is more in English books, the word is newer and richer. System of compensation is not only financial rewards but also including all financial and nonfinancial benefits. However, due to that, living culture and standards of different communities have specific qualities for life and work so Compensation system of each organization should design and implementation to fit any external and internal environment of organizations (Armstrong, 2002). The employees had been paid salary for the work they are doing in organization. But in addition to compensation for the time and effort and force that employees spend to achieve organization s goals, payment must also have motivational aspects. This theory is presented in Psychology Today that among many and varied needs of man, we can make Only a few people satisfied by the money and many nonfinancial motivation like tend to become successful, power and The desire to perfection and self-discovery influences on human behavior.however there is no doubt that still money has the most important desire and although organization employees will be paid nonfinancial benefits in addition to their salary,the financial pays still have many important and significant role in attracting and retaining staff. One of the functions of human resource management is designing payroll and salary system. Determining the amount of salary that organization must pay to its employees is one of the most important aspects of human resource management because first reward system (that salary and reward make a part of it) has significant affect in absorption and satisfaction of employees and making motivation in them, second, paying employees is the heaviest expenses that any organization needs to develop and actualize their goals. (Bliss, 2002).Although salary and payment have the same meaning as each other, it should be notice that In terms of administrative law, salary is typically a fixed monthly allowance paid to employees and payment refers to hourly or daily wage of workers(mirsepasi, 1990). Staff training each of the organizations due to the importance of education tries to create opportunities to development and growth of its members. Rapid developments of science and technology with the vast changes of cultural, social and economic cause that human force working in an organization as the most important factor in an Organization s development as the most important factor in an organization, along with above changes, do not rely as much on training as before and the beginning of their careers and by the use of opportunities and participate in in-service training courses be able to play the essential role as an active and effective ingredient in order to achieve their and organization s goal. Today, in-service education is not only at educational organizations, but also widely used in all the organizations that seek to improve their scientific and professional quality and quantity. Service training programs are effective if they will be based on the real needs of their employees and they participate voluntarily in training. 2248

3 Kinds of Needs and expectations of the participants is an important factor in determining educational objectives, course content, instructional methods, program implementation, and evaluation of training. According to the different models presented on the process and stages of learning in organization, a process that is involved in almost all the organizations and is universal and performed is as follows: Identifying learning needs, formulating learning goals, determining the content of the curriculum requirements, selecting procedures of training, performing educational programs, and evaluating educational programs (soleymanpoor, 2002). Career management the development process is a model of working experiences that people gain it during their working life. There are two key elements in advancement, visual and intellectual elements. The visual element is a visible development process and is related to the real environment, but intellectual element included individual's readiness for the position. For example, a person can improve his work skills with training. It will not be possible unless the person is mentally prepared for it. So presence of two elements in the progress of development is necessary (Moghimi, 2011). Performance Evaluation and successes performance evaluation in Facilitating Organizational Effectiveness considered as an important task in Human Resource Management. In recent years much attention has been paid to the role of evaluation. According to expert s opinion an effective performance evaluation system can grantees a lot of advantages to their organizations and their employees. Longenecker and Nicodim (1996), have claimed that performance evaluation system: A) provides specific performance feedback to improve employee performance, b) it determines the employee training requirements c) provides and facilitates staff development, and d) make a close connection between the personnel conclusion and performance and e) increase Motivation and employee productivity. Also, Roberts and Paulo (1996) argue that performance evaluation can be used for various purposes of supervision and, development including, a) to evaluate individual performance based on organizational needs, b) the prediction of feedback to employees to improve or strengthen their behavior, and c) allocation of rewards and job promotion. However, today many human resources systems and general administration are not considered suitable and old models look inefficient. During the last decade, many organizations have found that in action they are short of performance evaluation system which they are able to transfer through it the Priorities and goals to staff and continue its improvement. Human due to the cognitive domains and using various tools such as feelings, observations, perceptions, experiences and belonging power and thoughts on various topics especially on evaluating and interpreting the behavior and performance of personnel was sensitive and impact of these factors has overshadowed the managers to evaluate the performance (astrodick, 2005). Organizational commitment Commitment in the Persian language means accepting the vow and having required knowledge of performing the operations (Mowla'ii, 1999). Steers and Porter (1983) have expressed the organizational commitment relative degree of identifying a person with a particular organization and his involving and participating with the organization. In this definition organization commitment includes three factors. Strong belief in the goals and values of the organization, tend to remarkable attempt for organization and strong and deep wish to continue on being a member of the organization (Steers & Porter, 1983).Organizational commitment is an attitude. A mental state that represents a desire, need and obligation to continue employment in an organization. Intention means interests and desires of heart to continue to work in an organization, need means a person force to work in an organization because of the investments on that organization and obligation means religious, responsibility or duty that the person have toward organization and make himself stay in it (Allen & Meyer, 1990). Organizational commitment is considered as a psychological and emotional attachment to the organization that based on it a person who is deeply committed identity his identity to organization, participate with organization and will be involved in it, and enjoys of being a member of the organization(mowdey, Porter & Steers,1982). Overall, it seems that all definitions of organizational commitment involving these three general categories: Emotional attachment to the organization, the predicted cost of being separated of organization, responsibility, obligation and duty to remain in the organization. In this study, our definition of organizational commitment focuses on Allen and Meyer's definition of organizational commitment. 2249

4 Aspects of organizational commitment Among Advocates of the attitude approach some researcher s view toward organizational commitment is a multidimensional concept that different factors effect on it. Meyer and his colleagues are pioneers of multidimensional approach, their three dimensional model of the organizational commitment, including the emotional, continuous and normative dimensions as the three dimensions of organizational commitment. Affective commitment Allen & Meyer consider the emotional commitment as an emotional attachment to the organization and to identify through it. If we define organizational commitment in this way, emotional commitment includes three aspects: a kind of emotional attachment to the organization, people tend to identify by the organization and desire to continue working in the organization. Allen and Meyer (1990) Believe that a person feels a sense of emotional attachment to the organization when he considers the organization s goals as his goals and convinced in order to help the organization in a way to achieve its goals. Continuous commitment The second organizational dimension of Allen and Meyer (1990) is Continuous commitment that is based on the theory of Baker investments (1960).this theory is based on this fact that over time a person accumulate fund in the organization then the more The record is the more his fund will be and It is more costly for them to loss it. This investment include time, gaining special skills of organization that are not transferable, business friendship, political factors and other costs that will discourage people from looking for other works instead. Allen and Meyer (1990) considered Continual Commitment a form of psychological attachment to the organization that arises from the perception of the employee when he loses things in leaving the organization. Actually we say that continued commitment includes an awareness of the employee of the costs caused by leaving the organization. Therefore in this kind of commitment the main reason of person s relationship with the organization and His decision to remain in the organization is an attempt to maintain the benefits gained from relationships with the organization. Normative commitment the third dimension of organizational commitment which is less common, but it is debatable, is normative commitment that Indicating a sense of duty to continue working with the organization, Those with a high level of normative commitment feel that they are forced to remain in the current organization (Allen & Meyer, 1990). History of study Ahmad (2011), in a study examines the relationship between human resource management basic activities including compensation, Training and development, career management and function evaluation and successes of employees with the willing of staff to stay in the organizations. Also he evaluated the changing impact of job commitment on staying in an organization. The results of study showed that each four dimensions of human resource management activities have a significant positive and meaningful correlation with the employee s tend to stay in the organization. In his study variable compensation and benefits have the strongest relation with a intention to stay. Also employees commitment variable didn t make a significant relation to employees tend to stay. Results of regression analysis of HRM activities dimension with staff intention to stay with the organization showed that 15.8% of the variance tends to stay through HRM activities. Also, 13.3% of the variable variance tends to stay through the describing employees commitment dimensions. The results showed that the dimensions of human resource management are a better predictor than employee engagement. Safari Zanjani and colleagues (2011) examined the relationship between organizational commitment and quality of supervision with desire to remain among the employees of the West Azerbaijan Province education administrative. The main purpose of the study was evaluating the relationship between organizational commitment and supervising quality with desire to remain in the Department of Education administrative staff of West Azerbaijan. In this study, organizational commitment and quality of supervision considered as an independent variables (predictor) that organizational commitment has three dimensions of: a) identification commitment, b) transactional commitment, c) continuous commitment and desire to remain dependent variable (Criterion). The results of the study show that organizational commitment and supervision quality with the desire to remain in the organization have a relation together and they can determine each other. 2250

5 In another study, with the title of affecting factors on staff leaving the occupation, which has done by Alizadeh (2007), the relation between willing of leaving job with the elements of Organizational Commitment, right person - organization, job satisfaction, stresses caused by the work environment, was studied. The results indicate that there is a negative relationship between components of organizational commitment, individual suitability components organization, the components of job satisfaction and organization justice with tend to job leaving, and there is a positive relation between the components of stress caused by work environment with job leaving. Also there is a negative relation between the tendency of job leaving and age, job tenure and Formal employment and it has a positive relation between levels of education. However, studies on the relationship between gender and intention to leave the job have led to conflicting results. Based on above description of study variables and based on assumed relationships between these variables, the conceptual model is as the following: HRM activities Training Career management compensation performance apraisal Organizational commitment Affective commitment Continuous commitment Normative commitment Intention to stay Research hypotheses There is a relationship between HRM activities and Intention to stay. There is a relationship between training and Intention to stay There is a relationship between career management and Intention to stay There is a relationship between compensation and Intention to stay There is a relationship between performance appraisal and Intention to stay There is a relationship between HRM activities and Organizational commitment. There is a relationship between HRM activities and affective commitment There is a relationship between HRM activities and continuance commitment There is a relationship between HRM activities and normative commitment There is a relationship between Organizational commitment and Intention to stay. There is a relationship between affective commitment and intention to stay There is a relationship between continuance commitment and intention to stay There is a relationship between normative commitment and intention to stay RESEARCH METHODOLOGY The research method used in this study is a descriptive - analytical method that in addition to describing evaluated characterization it evaluates also relation between used variables in the study. The statistical population of this study consisted of all employees that are working in industrial and manufacturing companies in Rasht city and their number is about people. By Using Cochran formula a sample mass in this study was obtained 370 people. In order to analyzed the data as required sample size, 400 copies of questionnaires were distributed among the employees and the amount of the returned questionnaires were 378 version that analyzing was according to them. The main method of data collection for this study is a questionnaire. For this purpose, we use a questionnaire consist of 27 questions and respondents were asked to answer each question using the Liker scale. questionnaire Allocation to study variables are as follows that first 14-question of questionnaire, is dedicated to activities of human resource management and the next 11 question of the questionnaire has been assigned to organizational commitment dimension. Tend to stay in the organization is measured by two questions. In the following by using the software LISREL confirmatory factor analysis was conducted on endogenous and exogenous variables. And questions based on factor loadings and extracted variance averages were examined which results of factor analysis of endogenous and exogenous variables confirmed. In order to calculate the convergent, Fornel and Larker proposed using the AVE criteria. In AVE at least 0.5 of concurrent validity are in good indicators. Actually 2251

6 this index review that a hidden variable up to what extent is able to explain its variance of indicators (manifest variables) in average. These coefficients for all study variables are summarized in the table below. Tend to remain has the most amount among variables and then compensation variable and benefits that respectively it shows the values of 0.66 and And indicates that these variables are measured better than the other index. The lowest amount of variable performance is STAY 0.66 NOC 0.55 COC 0.62 Table1. The average variance extracted of each variable AFC EVALUE COMP CAREER LEARN 0.62 Concepts AVE The main results of research Descriptive Statistics Based on the result of data collection, 67% of the samples were male and the remaining 33% were women. Also 51.6% have BS degree or highest frequency, then 31.5% Diploma and 10.3% in and Pre Bs degree and 6.6% have master degree or higher as well. In other words, more than 58% of employees have Master degree or higher education. Table 2. Distribution of staff according to education Diploma prebs Bachelor Master or higher Frequency percent Cumulative percent total As can be seen in Table3, the highest percentages of respondents were between 15 and 20 years of working experience. After this group there are respondents between 20 to 25 years, respondents with less than 5 years of working experiences, respondents with work experience between 5 to 10 years, respondents with working experience of 10 and 15 years, respondents with working experience between 30 and 35 years and respondents with working experiences of 25 to30years. Table3. distribution of employees according to work experiences 1 to 5 6 to to to to to to 35 Frequency Percent Cumulative percent total Table4. the result of testing hypotheses of research Research hypotheses coefficient Sig. Result 1- There is a relationship between HRM activities and Intention to stay accepted 1-1- There is a relationship between training and Intention to stay accepted 2-1- There is a relationship between career management and Intention to stay accepted 3-1- There is a relationship between compensation and Intention to stay accepted 4-1- There is a relationship between performance appraisal and Intention to stay accepted 2- There is a relationship between HRM activities and organizational commitment accepted 1-2- There is a relationship between HRM activities and affective commitment accepted 2-2- There is a relationship between HRM activities and continuance commitment accepted 3-2- There is a relationship between HRM activities and normative commitment Rejected 3- There is a relationship between organizational commitment and intention to stay accepted 1-3- There is a relationship between affective commitment and intention to stay accepted 2-3- There is a relationship between continuance commitment and intention to stay accepted 3-3- There is a relationship between normative commitment and intention to stay accepted 2252

7 In the following In order to examine the indirect effects of the independent variables of HRM activities on the dependent variable of staff intention to stay in the organizational through organizational commitment, the Structural equation modeling was used. In Table 5 the indirect effects between variables included t-statistics and coefficients are shown. Test hypotheses of research To test the hypotheses of the research first the relationships between independent and dependent variables were evaluated by Pearson correlation that its results are shown in Table 4. All hypotheses except Hypotheses 2-3 are accepted at 99% confidence level. Indirect path Table5. the result of indirect path ) β( coefficients Training to intention to stay Career management to intention to stay Compensation to intention to stay t-statistic Performance appraisal to intention to stay By using the results of the indirect relationships analysis, which are shown in Table 5, it can be concluded that organizational commitment in the relationship between HRM activities and employees tend to stay in the organization plays the role of mediator. Because all t statistics are meaningful and the relations between two equations are also meaningful. Structural equation of indirect relationships between variables is as follows: STAY = 0.22*LEARN *CAREER *COMP *EVALUE (0.071) (0.06) (0.033) (0.061) CONCLUSION AND DISCUSSION The main goal of this study is to examine the relationship between HRM activities (training and development, compensation, performance evaluation and career management), organizational commitment (emotional commitment, continuous commitment, normative commitment) and employee s intention to stay in the organization. According to the results gained each four dimensions of human resource management activities with employee s intention to stay in the organization have a positive and significant relationship. There is a significant relationship Between HRM activities and organizational commitment dimension except employee s normative commitment. But the relationship between HRM activities and employee s normative commitment based on data collected is not significant. As stated earlier, human resource management activities has an important role on both organizational commitment and the intention to stay in the organization. Therefore companies and Organization need to carefully examine these variables. Especially the moment that organization feels a need of evaluation on its strengths and weaknesses in its manpower area. Accordingly, an important part of management should focus on improving employee s training, employee s pay, and job planning and performance evaluation of staff. Because it directly cause enhances of employee engagement and improving their performance and in conclusion it avoids job leaving that is costly for organization and increase employees tend to stay in the organization. As the results of this study showed, in general, human resource management activities will have the most effect on employee s emotional commitment and therefore the manager can improve emotional commitment of his employees by focusing on these activities and finally staffs feelings of belonging and their attachment to the organization and avoids transferring them. Also by evaluating Indirect relationships between variables that are derived from the results of the structural equation analysis, function evaluating shows the Highest coefficients with the variable of employees intention to stay in the organization Which suggests the importance of performance evaluation in increasing staff organization s commitment Directly and indirectly and increasing the intention of employees to stay with the organization through organizational commitment. 2253

8 REFERENCES Ahmad MN The Relationship Between human resourcr management practices, employee commitment and intention to stay among manufacturing technicians, Master of HRM, University utaramalaysia college of business. Allen NJ, Meyer JP "The measurement and antecedents of Affective, Continuance and Normative commitments to the organization", Journal of occupational psychology, vol.63, pp: Armstrong M Human resource management strategies, and H. Abel Khodayar successful translation, printing, Tehran, Publishing call. Armstrong M Strategic human resource management (action), translated by Mohammad Arabic, David Divine, first edition, Tehran: Bureau of Cultural Research. Mirsepasi N Strategic management of human resources and labor relations, Tehran, Mir. Moghimi M Organization and management of research approach, Tehran, Termeh publications. Mowdey RT, porter LW, Steers RM "Employee organizational linkage: the psychology of Commitment, absenteeism, and turnover " New York: Academic press, pp: Saadat E Human Resource Management, Tehran, studying the works of the humanities side. Soleymanpoor J "Curricula in training institutions," Ahsan Publications, Tehran. Steers RM, Porter LW "Motivation and work Behavior". Mc Grow Hill book Co, third edition, p: 288. Stredwick J An Introduction to Human Resource Management. Elsevier Ltd. 2254