PERCEIVED HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANISATIONAL COMMITMENT
MEDIATED BY A PERCEIVED PSYCHOLOGICAL CONTRACT
BY
MOHAMED THIERNO MAGASSOUBA
A dissertation submitted in fulfilment of the requirements for the degree of Doctor of Philosophy (Business Administration)
Kulliyyah of Economics and Management Sciences International Islamic University Malaysia
JUNE 2020
ii
ABSTRACT
Perception of human resource management practices (HRMP) is widely believed to affect employee’s commitment to their respective organization. Although there are some extensive evidences to highlight that HRM practices are associated with organizational level outcomes, it is unclear whether these practices lead to individual desirable outcome. This study has developed a model of coherence of contingency theory, institutional theory, and social exchange theory. This study was conducted to examine the role of psychological contract in examining relationship between perceived HRM practices and organizational commitment. This study further examines the role of ethical climate in influencing relationship between perceived psychological contract and organizational commitment. Data are elicited through questionnaires from 360 employees working in the banking sector in Republic of Guinea to understand their perceptions toward HRM practices in the organization they work for. Survey include measures of (a) perception of HRM practices pertaining to employee hiring, training and development, performance management, and pay remuneration; (b) perception of psychological contract; (c) organizational commitment pertaining to affective commitment and normative commitment; and (d) ethical climate. Researcher hypothesized that perceived human resource management practices are positively related to perceived psychological contract, in turn, this will lead to organizational commitment. Furthermore, the result is consistent with the hypotheses of the study that organizational commitment is higher when ethical climate is high, therefore, the study establishes that the association between organizational commitment and psychological contract was more effective when ethical climate is higher. Data analysis is performed by using the Statistical Package for the Social Sciences (SPSS); and structural equation modelling using Analysis of Moment Structures. Findings from this study clearly support the notion that employees’
perceptions provide a broader view of evaluating HRM practices. From practical point of view, the study shows some important consideration specially for those who try to improve individual level outcome via human resource management practices by creating some form of communication to employees that shows the company valued them. Findings enable the researcher to unveil lapses inherent in institutional, contingency, and social exchange theories that can, in turn, lead to create an ideal and positive organizational climate in terms of HRM practices, thereby enhancing employees’ commitment in the banking sector.
iii
صَّخلُم ثحبلا
ي ةيرشبلا دراولما ةرادإ تاسرامم كاردإ نأ دقتع
(HRMP)
رثؤي في ونح ينفظولما مازتلا ،متهاسسؤم
و
ىوتسلما جئاتنب ةيرشبلا دراولما ةرادإ تاسرامم طابترا زبرت تيلا ةفثكلما ةلدلأا ضعب نم مغرلا ىلع يميظنتلا
؛ ىوتسلما ىلع ةبوغرم جئاتن لىإ يدؤت تاسراملما هذه تناك اذإ ام حضاولا يرغ نم
يدرفلا دقو ، ذه روط ا
أ ثحبلا جذونم
ا طباترم ا لدابتلا ةيرظنو ةيسسؤلما ةيرظنلاو ئراوطلا ةيرظنل
يعامتجلاا
، و أ ةيرشبلا دراولما ةرادإ تاسرامم ينب ةقلاعلا صحف في يسفنلا دقعلا رود صحفل يرج
ةيميظنتلا تامازتللااو ةروصتلما
، يرتحو دقعلا ينب ةقلاعلا ىلع يرثأتلا في يقلاخلأا خانلما رود
و روصتلما يسفنلا يميظنتلا مازتللاا
و ، تع جُ دق نابتسا للاخ نم تناايبلا
ىلع تعِّ ز و ة ٣٦٠
كلذو ، اينيغ ةيروهجُ في فيرصلما عاطقلا في نولمعي ا فظوم
ةرادإ تاسرامم هاتج متهاروصت مهفل
في ةيرشبلا دراولما تاسسؤلما
اهيف نولمعي تيلا
، و سيياقلما حسلما لمشي ةيتلآا
ةرادإ تاسرامم روصت :
ةيرشبلا دراولما في
؛روجلأا ةأفاكمو ،ءادلأا ةرادإو ،ريوطتلاو بيردتلاو ،ينفظولما ينيعت و
دقعلا روصت
؛يسفنلا و
يميظنتلا مازتللاا ثيح نم
مازتللاا ين ؛يرايعلماو يفطاعلا و
يقلاخلأا خانلما
، ضترفا دقو
وصتلما ةيرشبلا دراولما ةرادإ تاسرامم نأ ثحابلا يبايجإ ا طابترا طبترت ةر
،روصتلما يسفنلا دقعلبا ا
يميظنتلا مازتللاا لىإ يدؤيس هرودب اذهو
، تقفتاو يضرف عم ةجيتنلا
ة في نوكي يميظنتلا مازتللاا نأ
هيلعو ،ا عفترم يقلاخلأا خانلما نوكي امدنع ىلعأ ىوتسم
؛ تبثأ ثحبلا مازتللاا ينب طابترلاا نأ
يسفنلا دقعلاو يميظنتلا رثكأ نوكي
ةءافك ىلعأ ىوتسم في يقلاخلأا خانلما نوكي امدنع ،
يرج أو
ليلتح مادختسبا تناايبلا جمنارب
ةيعامتجلاا مولعلل ةيئاصحلإا ةمزلحا
(SPSS)
، ةلداعلما ةجذنمو
ةظحللا لكايه ليلتح مادختسبا ةيلكيلها
، و جئاتن معدت ثحبلا
رفوت ينفظولما تاروصت نأ ةركف
ييقتل عسوأ ةيؤر ةيرشبلا دراولما ةرادإ تاسرامم م
و ، ةيلمع رظن ةهجو نم ي ؛
رهظ ثحبلا ضعب
ةمهلما تارابتعلاا
، بخو دراولما ةرادإ تاسرامم برع ةيدرفلا جئاتنلا ينستح نولوايح نيذلا كئلولأ ةصا
ءاشنإ للاخ نم ةيرشبلا ضعب
ينفظولما عم لصاوتلا لاكشأ
، امم مهردقت ةكرشلا نأ حضوي
، و
دق اتن تنكم
تيارظنو يسسؤلما لدابتلا تيارظن في ةنماكلا تارغثلا نع ءاطغلا فشك نم ثحبلا جئ
يعامتجلاا لدابتلاو ئراوطلا
؛ نم بيايجإ لياثم يميظنت خانم قلخ لىإ اهرودب يدؤت نأ نكيم تيلا
،ةيرشبلا دراولما ةرادإ تاسرامم ثيح ؛ثم نمو
فيرصلما عاطقلا في ينفظولما مازتلا زيزعت
.
iv
APPROVAL PAGE
The dissertation of Mohamed Thierno Magassouba has been approved by the following:
_____________________________
Nurita Juhdi Supervisor
_____________________________
Rodrigue Ancelot Harvey Fontaine Co-Supervisor
_____________________________
Suhaimi Bin Mhd. Sarif Internal Examiner
___________________________
Aizzat Mohd Nasurdin External Examiner
_____________________________
Noormala Dato’ Amir Ishak External Examiner
________________________
Mohamed Elwathing Saeed Chairman
v
DECLARATION
I hereby declare that this dissertation is the result of my own investigation, except where otherwise stated. I also declare that it has not been previously or concurrently submitted as a whole for any other degrees at IIUM or other institutions.
Mohamed Thierno Magassouba
Signature………....………. Date …….……….
vi
COPYRIGHT
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA DECLARATION OF COPYRIGHT AND AFFIRMATION OF
FAIR USE OF UNPUBLISHED RESEARCH
PERCEIVED HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANISATIONAL COMMITMENT MEDIATED BY A
PERCEIVED PSYCHOLOGICAL CONTRACT
I declare that the copyright holder of this dissertation is jointly owned by the student and IIUM.
Copyright © 2020 Mohamed Thierno Magassouba and International Islamic University Malaysia. All rights reserved.
No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder except as provided below
1. Any material contained in or derived from this unpublished research may be used by others in their writing with due acknowledgement.
2. IIUM or its library will have the right to make and transmit copies (print or electronic) for institutional and academic purposes.
3. The IIUM library will have the right to make, store in a retrieved system and supply copies of this unpublished research if requested by other universities and research libraries.
By signing this form, I acknowledged that I have read and understand the IIUM Intellectual Property Right and Commercialization policy.
Affirmed by Mohamed Thierno Magassouba
……..……….. ………..
Signature Date
vii
DEDICATION
I humbly dedicate this thesis to my father for the greatest sacrifice and patience. May Allah grant you the highest place in Jannah
viii
ACKNOWLEDGEMENTS
All glory is due to Allah the Lord of universe, the most Beneficent and the most Merciful. Peace and salutations be upon our beloved prophet Muhammad peace upon him.
The word is not enough to express my special appreciation and gratitude first and foremost to my Supervisor Dr. Nurita Juhdi for encouraging me and allowing me to grow as a researcher. You were always beside me as a mother, a supervisor, and a mentor throughout this journey. Without you I was almost given up. your advice on both academic as well as my career have been priceless, May Allah bless you and reward you abundantly with good health and prosperity.
Secondly to my Co-supervisors Dr. Rodrigue Ancelot Harvey Fortaine and Prof. Dr. Arif Hassan, thank you for all the valuable advises, feedbacks, and constantly checking my progress. Your valuable suggestions, ideas, and insightful comments on the whole work through the entire research have been the utmost significance in Streeting this study in right direction.
Special gratitude to my family, the words cannot express how grateful I am to my father may your soul rest in peace for all the investment financially and emotionally that you have made on me. Your words in my ear, “Do not fear” kept my head up all the time. To my beloved mother who never stop supporting me, your prayer tirelessly was what sustained me this far. Special thanks to papa “Elhadj Abdoulkarim Dioubate” and Elhadj Mousa Magassouba for all your support financially and emotionally, my gratitude to my family members, brothers, and sisters for your support and prayers.
Finally, I would like to thank faculty members and administration for their support with special thanks to Dr. Azura Omar, you were always there for me with your thoughts whenever I need it the most. I will extend my gratitude and appreciation to the employees of Guinea banking sector and to all my friends Hasssan Buana Ossif, Hassan Sacko, Dr. Ahmad Sacko, Dr. Oury Diallo, Dr. Perkins, Dr.Abdulrazak Kaba the list is endless , who supported me in writing and incented me to strive towards my goal. I am truly blessed to have you all in my life and I would never have been able to face all the challenges alone in completing this thesis without your support. May Allah reward you all abundantly.
.
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TABLE OF CONTENTS
Abstract ... ii
Arabic Abstract ... iii
Approval Page ... iv
Declaration ... v
Copyright ... vi
Dedication ... vii
Acknowledgements ... viii
List of Tables ... xiii
List of Figures ... xv
Abbreviation Table ... xvi
CHAPTER ONE: INTRODUCTION ... 1
1.1 Background of the Study ... 1
1.2 Overview of the Republic of Guinea (The Research Context) ... 7
1.3 Problem Statement ... 11
1.4 Objectives of the Study ... 16
1.5 Research Questions ... 16
1.6 Significance of The Study ... 17
1.7 Scope of the Study ... 19
1.8 Definition of Research Terms and operationalization ... 20
1.9 Organisation of Chapters ... 22
1.10 Summary of Chapter ... 23
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK ... 24
2.1 Introduction... 24
2.2 History of Organisational Commitment and HRM Practices ... 24
2.3 Organisational Commitment ... 26
2.3.1 Justification for the use of Affective Commitment Normative commitment in the context of this study ... 31
2.4 HRM Concept and Practice ... 32
2.4.1 HRM In Africa ... 38
2.4.2 HRM Practices ... 43
2.4.2.1 Employees Hiring ... 49
2.4.2.2 Training and Development ... 51
2.4.2.3 Performance Management (PM) ... 53
2.4.2.4 Pay and Remuneration ... 54
2.5 Perceived Psychological Contract ... 56
2.6 Ethical Climates ... 59
2.7 Theoretical Framework and Research Hypotheses... 62
2.7.1 Institutional Theory, HRM Practices, and Employees Commitment ... 63
2.7.2 Contingency Theory ... 65
2.7.3 Social Exchange Theory (SET) ... 66
x
2.7.4 Social Exchange Theory, HRM Practices and Employees’
Commitment ... 69
2.7.5 Influence of HRM Practices on Organizational Commitment ... 70
2.7.6 HRM Practices and Psychological Contract ... 75
2.7.7 Perceived Psychological Contract and Organizational Commitment ... 80
2.7.8 Perceived Psychological Contract as a Mediator Between HRM Practices and Organizational Commitment ... 81
2.7.9 Moderating Effect of Ethical Climate on the Relationship Between Perceived Psychological Contract and Organizational Commitment ... 84
2.7.10 Proposed Conceptual Framework and Hypotheses ... 87
2.8 Summary of Literature ... 91
CHAPTER THREE: RESEARCH METHODOLOGY ... 92
3.1 Introduction... 92
3.2 Research Design ... 92
3.2.1 Quantitative Research ... 93
3.2.2 Theoretical Perspective and Philosophical Underpinning ... 96
3.3 Population ... 97
3.4 Sample Size ... 98
3.5 Sampling Technique ... 99
3.5.1 Unit of Analysis ... 100
3.6 Instrument ... 101
3.6.1 Translation of Questionnaires to French Language ... 102
3.6.2 Employee Hiring ... 104
3.6.3 Training and Development... 104
3.6.4 Performance Management ... 105
3.6.5 Payment and Remuneration ... 105
3.6.6 Perceived Psychological Contract ... 105
3.6.7 Ethical Climates ... 106
3.6.8 Organizational Commitment ... 106
3.7 Pilot Study ... 107
3.8 Validity ... 108
3.9 Reliability of The Instrument... 108
3.10 Data Collection Procedure ... 109
3.11 Data Analysis ... 110
3.12 Conclusion ... 111
CHAPTER FOUR: DATA ANALYSIS AND RESULTS: DESCRIPTIVE STATISTICS AND PRINCIPAL COMPONENT ANALYSES ... 113
4.1 Introduction... 113
4.2 Missing Data ... 113
4.3 Outliers ... 114
4.4 Response Rate ... 114
4.4.1 Characteristics of Respondents ... 115
4.5 Descriptive Statistics ... 118
4.5.1 Normality Test ... 118
4.5.2 Multicollinearity... 123
xi
4.5.3 Exploratory Factor Analysis (EFA) ... 124
4.5.4 Reliability ... 131
4.5.5 Confirmatory Factor Analysis (CFA) ... 132
4.5.6 Goodness-of-Fit (GOF) Indicators ... 133
4.5.6.1 Measurement Model of Variables under the Investigation in This Study ... 135
4.5.6.2 Modified Measurement Model of Variables under the Investigation in This Study ... 137
4.5.7 Confirmatory Factor Analysis (CFA) for Employee Hiring (EH) ... 138
4.5.7.1 Convergent Validity for Employee Hiring ... 140
4.5.8 Confirmatory Factor Analysis (CFA) for Training and Development (TD) ... 140
4.5.8.1 Convergent Validity for Training and Development (TD) ... 142
4.5.9 Confirmatory Factor Analysis (CFA) for Performance Management (PM) ... 142
4.5.9.1 Convergent Validity for Performance Management (PM) ... 144
4.5.10 Confirmatory Factor Analysis (CFA) for Pay and Remuneration (PR) ... 144
4.5.10.1 Convergent Validity for Pay and Remuneration (PR) .... 146
4.5.11 Confirmatory Factor Analysis (CFA) for Perceived Psychological Contract (PPC) ... 146
4.5.11.1 Convergent Validity for Perceived Psychological Contract (PPC) ... 148
4.5.12 Confirmatory Factor Analysis (CFA) for Ethical Climate (EC) ... 148
4.5.12.1 Convergent Validity: Ethical Climate ... 150
4.5.13 Confirmatory Factor Analysis (CFA) for Affective Commitment (AC) ... 151
4.5.13.1 Convergent Validity for Affective Commitment (AC) .. 152
4.5.13.2 Confirmatory Factor Analysis (CFA) for Normative Commitment (NC) ... 152
4.5.13.3 Convergent Validity for Normative Commitment (NC) 154 4.5.14 Mediating Effects of Psychological Contract (PC) and HRM Practices and Organizational Commitment (OC) ... 154
4.5.15 Relationship Between HRM Practices and Organizational Commitment After Mediation ... 156
4.5.16 The Mediating Effect of Psychological Contract and Organizational Commitment using the Sobel Test ... 157
4.5.17 Testing the Moderating Effect of Ethical Climate on the Relationship Between Psychological Contract and Organizational Commitment ... 158
4.5.17.1 Comparing the Group Effect for Low and High Ethical Climate ... 161
4.6 Full Structural Model of HRM Practices and Their Effects on Organisational Commitment ... 162
4.6.1 Hypothesized Model ... 162
xii
4.6.2 Revised Model of HRM Practices and Their Effects on
Organizational Commitment ... 167
4.7 Summary ... 171
CHAPTER FIVE: DISCUSSION OF FINDINGS AND CONCLUSION ... 174
5.1 Introduction... 174
5.2 Summary of the Main Finding ... 174
5.3 Implications for Theory and Practice ... 183
5.4 Practical Implications for Organisational Perspective Especially for the Banking Sector of the Republic of Guinea ... 185
5.5 Limitations and future research ... 186
5.6 Conclusion ... 187
Bibliography ... 190
Appendix I English Questionnaire ... 223
Appendix II French Questionnaire ... 228
Appendix III Authorization to Central Bank ... 234
xiii
LIST OF TABLES
Table 1.1 Key data about Republic of Guinea (CIA World Factbook, 2019) 9
Table 3.1 Grouping of the banks 100
Table 3.2 Estimated number of distributed survey forms 110
Table 4.1 Summary of response rates 115
Table 4.2 Summary of the characteristic of the respondents 117
Table 4.3 Normality Test Result 119
Table 4.4 Correlation matrix 123
Table 4.5 KMO and Bartlett's Test 124
Table 4.6 Total variance explained 125
Table 4.7 Rotated Component Matrix 127
Table 4.8 Summary of the variables by Cronbach’s alpha value 132 Table 4.9 Recommended values for measurement (Hair et al., 2006) 133
Table 4.10 Initial measurement fit indexes 136
Table 4.11 Modified measurement fit indexes 138
Table 4.12 Employee Hiring Fit indexes 140
Table 4.13 Training and Development Fit indexes 142
Table 4.14 Performance Management Fit indexes 144
Table 4.15 Pay and Remuneration Fit indexes 146
Table 4.16 Perceived Psychological Contract Fit indexes 148
Table 4.17 Ethical Climate Fit indexes 150
Table 4.18 Affective Commitment Fit indexes 152
Table 4.19 Normative commitment Fit indexes 153
Table 4.20 Relationship between HRM practices and Organizational Commitment 155 Table 4.21 Relationship between Human Resource Management (HRM)
practices and Organizational Commitment after Mediation 156
xiv
Table 4.22 Direct and mediating effect using sobel calculator 158 Table 4.23 Moderating test for low and high ethical climate 160 Table 4.24 Standardized beta estimation for low ethical climate 161 Table 4.25 Standardized beta estimation for high ethical climate 162 Table 4.26 Hypothesized Model HRM, EC and OC Fit indexes 164
Table 4.27 Hypothesized model path coefficients 165
Table 4.28 Hypothesized model path coefficients 166
Table 4.29 Revised structural model Fit indexes 168
Table 4.30 Revised model path coefficients 168
Table 4.31 Revised model path coefficients 169
Table 4.32 Moderating test for low and high ethical climate 172
xv
LIST OF FIGURES
Figure 1.1. Map of Guinea (Source: CIA World Factbook, 2019) 10 Figure 1.2. Source Hofstede cultural comparison between Nigeria, Senegal, and
Burkina Faso. 13
Figure 2.1. Model of the conceptual framework and all its constituent variables 88
Figure 4.1. Scree plot 126
Figure 4.2. Initial measurement model 135
Figure 4.3. Modified measurement model 137
Figure 4.4. Employee’ Hiring 139
Figure 4.5. Training and development 141
Figure 4.6. Performance Management 143
Figure 4.7. Pay and Remuneration 145
Figure 4.8. Perceived psychological contract 147
Figure 4.9. Ethical climate 149
Figure 4.10. Affective commitment 151
Figure 4.11. Normative commitment 153
Figure 4.12. Relationship between HRM practices and Organisational Commitment 155 Figure 4.13. Relationship between Human Resource Management practices and
Organizational commitment After Mediation 156
Figure 4.14. Integrated model with mediator 157
Figure 4.15. High Level of Ethical Climate Unique Responses 159 Figure 4.16. High level of ethical climate unique responses 160
Figure 4.17. Hypothesized Model HRM, EC and OC 163
Figure 4.18. Revised structural model 167
xvi
ABBREVIATION TABLE
IIUM International Islamic University Malaysia HRM Human resource management.
HRMP Human resource management practice HR Human Resources
HRP Human resource practices PPC Perceived Psychological contract OC Organizational commitment EH Employees hiring
EC Ethical climate
PM performance management PR Pay and remuneration TD Training and development EFA Exploratory Factor Analysis
KMO Kaiser-Meyer- Olkin Measure of sampling Adequacy SD Standard Deviation
CFA Confirmatory Factor Analysis
SPSS Statistical package for Social Sciences AMOS Analysis of Moment structures
SEM Structural Equation Modeling
RMSEA Root Mean Square Error of Approximation SRMR Standardized Root Means Square Residual
xvii CFI Comparative fit Index
DF Degrees of Freedom CR Critical Ratio
SET Social Exchange Theory GDP Gross Domestic Product GNF Guinean Franc
1
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Modern global business environment has brought about an increasing significance of human resource management (HRM) in every aspect of life (Boxall & Purcell, 2003;
& Caligiuri et al., 2010). People are indispensable assets of organizations because their synergy and commitment create a source of sustainable competitive advantages for organizations. Such people are saddled with the responsibility of producing further resources of a firm (Nasurdin et al., 2008). Prior to 1991, Republic of Guinea had a strict labor code protecting the rights of employees with set guidelines. These guidelines covered staffing and selection, pay and compensation, holiday and work schedule, overtime pay, vacation, and sick leave. However, under the 1999 revision of the labor code, the parliament of Republic of Guinea voted to enlarge employers’
privileges to hire and fire; thus, businesses do not need to go to the employment bureau anymore to contract or dismiss employees. These revisions eliminated the requirements to employ only local staffs. Consequently, certain corporations, including the local government, refused to pay mandatory benefits by employing people as contractors for years instead of having them as permanent employees (Global Investment Center, 2015).
The employer and employee relationship, as defined by the provisions of the employment law in Republic of Guinea, can vary depending on the situation. Foreign executives cite numerous incidences of theft, inefficiency, and low productivity. As per World Bank report (2019) shows that 40 percent of labor force in banking sector
2
are unproductive, which explained the lack of development and improvement in banking sector in the country. Moreover there is lack of human development for example Republic of Guinea ranked 175 out of 187 countries on the Human Development Index (2018) this reflected the lack of skilled workers, high informality, and poor infrastructure (World Bank report 2019). Additionally, corruption become the prevalent obstacles in Guinean business environment and that the business and political cultures encourage corruption (Global investment center, 2015). Ccorruption Perception Index’ ranked Guinea as 138th out of the 180 countries listed (Transparency International, 2018)
Human resource (HR) practitioners in West Africa states in which Republic of Guinea is a part of it, have been confronted by both universal convergence factors such as globalization, technology and deregulation, locally divergent factors such as nepotism, bribery, corruption, and tribalism with demographic changes which has resulted into a blend of transplanted and indigenous managerial behavior (Azolukwam
& Perkins, 2009; US State Department, 2014; Horwitz & Budhwar, 2015). These challenges resulted in less commitment by employees to their respective organization.
Therefore, the capability of companies in such circumstances to willingly revise day- to-day operational processes and continuing growth targets become vital to company’s achievement (Bartlett & Ghoshal, 1992). Consequently, to be effective, organizational leaders must counterattack these obstacles by cultivating a greater competence in HRM.
HRM is a complex assemblage of techniques, practices, and strategies (Janssens & Steyaert, 2009). Storey (2001) confirmed the unitary characteristic of HRM to be the effective management of employees that reaffirm their commitment to the achievement of their companies’ objectives. Therefore, Storey (2001) defined
3
HRM as “a distinctive approach to employment management which seeks to achieve competitive advantages through the strategic development of highly committed and capable workforces by means of an integrated array of cultural, structural and personal technique” (Storey, 2001:1). Therefore, HRM can be regarded as philosophy about the way in which people are managed at their workplace with aim to improve organizational effectiveness through people and it should be concerned with the ethical dimension on how people should be treated in accordance with a set of moral values (Armstrong, 2020). However, HRM philosophy, policy, and practice vary across organizations (Morgan & Milliken, 1992; Peck, 1994). The reasons for this variation have been traced to internal and external factors. Social structure and institutional setting have been used to explain these variations in HRM policies and practices (Bowen et al., 2004; Chiang & Birtch, 2010).
A considerable amount of scholarly research on HRM shows the effects of HRM practices to the company performances (Wright & Boswell, 2002).
Additionally, current studies of HRM practices have characterized the influence of such practices on a firm’s outcome. Certain practices include hiring procedures, training and development, pay and remuneration, and performance management (PM).
HRM practices have been variously labelled in scholarly research as a high performance work practice system (Huselid, 1995; Becker & Huselid, 1998), progressive HRM practices (Gelade & Ivery, 2003), supportive employment practices (Frenkel & Orlitzky, 2005), and innovative HRM practices (Macduffier, 1995;
Agarwala, 2003). Meanwhile, scholars have highlighted that carrying out HRM practices efficiently may boost company financial outcomes and may lead to the creation of sustainable strategies and competitive advantages for companies (Arthur, 1994; Delaney & Huselid, 1996; and Huselid et al., 1997).
4
Although a substantial amount of support exists to suggest that innovative employment practices are correlated with the diversity of a company’s financial and non-financial outputs, the notion that these HR practices may lead to anticipate that employees level outcomes need further analysis (Katou, 2015). In addition, Youndt (2000) discovered that company performance is not directly influenced by HR activities; relatively, these activities support in building human intellect, which can assist in enhancing a firm’s value added. Therefore, although the studies anticipated connections between commitment HRM practices, organizational commitment and company outcomes, the understanding of the means through which HRM practices may affect firm outcomes continues to be at an initial phase (Bowen & Ostroff, 2004).
Additionally, relationships between HRM and company relevant outcomes such as commitment have been anticipated instead of examined (Purcell, 1999).
Similarly, organizational commitment is considered as outcome variables that have yet to be appropriately examined within the literature from an African organizational context. Numerous researchers have identified these issues (Gibb, 2001; Gallie et al., 2001) and believed that the insufficiency of investigation into workers’ responses to HRM practices must be addressed.
Moreover, Guest (2002) advocated placing employees as ‘center-stage’ in the analysis of HRM practices. Position of HR practices towards staff attitude relationships continues to be ambiguous (Latorre et al., 2016) in the sense that minimal information exists regarding how such HR practices work to carry out organizational commitment gains and in what way HRM practices employ their influence on workers and organizational outcomes.
The loophole through which HRM practices create value for the companies has been denoted as the central point that must be addressed (Becker & Gerhart, 1996).
5
Moreover, Arthur et al. (1995) noted that Western HR practitioners rely upon scientific knowledge and practices developed and validated in the West. The US is presumed to have transnational generalizability and despite its cultural supremacy, the effectiveness and generalization of HRM interventions in other cultures and economic systems must be explored (Arthur et. al., 1995). For example, in Africa, the HRM model has been characterized by substantial deference for authority with a quest for coherence, paternalism, extended family and community, web of relationships, and mutual obligations.
Kamoche (2011) corroborated that an African HRM system is composed of commonalities with reference to culture and a certain difference, which reflects the different national boundaries and ethno-linguistic communities, traditions and institutions, customs and sociocultural practices in Franco, Anglo, and Lusophone countries. Furthermore, transferring management practices from the Western world to less developed countries were the preferred operational approach for most multinational corporations. Therefore, the work style of many emerging economies is characterized by foreign alien practices from global companies that may diverge from their circumstantial beliefs and values or customary methods. These conflicting values and beliefs between global companies and local employees have contributed to misperception, inconsistencies, and frustration for the employees in unindustrialized countries and occasionally failures for companies in developing world nations owing to these foreign alien practices (Anakwe, 2002).
Researchers would be competent to explain how commitment HRM practice relationships operate within an organizational context through a meticulous study of these issues (Ferris et al., 1998). Meanwhile, Grant and Shields (2002) indicated that staff responses to HRM perhaps can be link through some set of unwritten
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expectation, which is a characteristic of the traditional link that connects organizations and employees jointly beyond any prescribed underpinning contract. Schein (1965) affirmed that the psychological contract is something that undocumented or recorded contract of expectations between the employer and employees of an organization.
Psychological contract is consider as linking mechanism between HRM practices and organizational commitment due to the nature that major function of HRM practices is to foster an appropriate psychological contract since HRM practices such as employee hiring process, training and development, performance management, and compensation, which are considered as major determinate of employees believe in psychological contract which in nature enhance employees commitment (Agarwala, 2003). Furthermore, Schein (1965) defended the idea of a psychological contract, which implies that an unwritten customary of expectations operating always emerges in every member of a firm.
Henceforth, the present study addresses this gap by attempting to deliberately examine the interaction between worker perceptions and HRM practices and outcome variables. Specifically, this study suggests that including employees’ perceptions of their unwritten customary of expectations may help in comprehending why HRM practices may positively or negatively impact their commitment. The nature of psychological contract whether transactional or relational in nature are subjective, thus, this study attempts to examine the moderate role of ethical climates between perceived psychological contract and organizational commitment given by Barnett and Schubert’s (2002) statement that employees have perceptions and beliefs about the nature of the employment relationship between themselves and their employer, which relates to the entitlements and obligations of each party (Morrison & Robinson,
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1997). These perceptions form ‘psychological contracts’ between employees and their organization (Cavanaugh & Noe, 1999; Robinson & Rousseau, 1994).
A psychological contract is subjective and possibly one-sided, in that employees’ perceptions of the mutual rights and responsibilities inherent in the employment relationship often differ from those of his or her employer (Rousseau, 1989). Nonetheless, employees’ perceptions of the nature of the psychological contract and its potential violation by employers are likely to affect their job attitudes and behaviors (Cavanaugh & Noe, 1999; Morrison & Robinson, 1997; Robinson, 1996; Robinson & Rousseau, 1994; Turnley & Feldman, 1999; Van Dyne et al., 1994).
In short, one's own values are in the African context, such as resilience and perseverance. Perhaps such values are the reasons why European imprints cannot permanently erase those values and ideals despite colonialism and Western influence on the continent over the years (Gbadamosi, 2003). Hence, the present study is tailored towards investigating the organizational commitment by way of empirical research, including the perceived HRM practices and how such practices can bring positive ethical climate for the employees of the Guinean banking sector.
1.2 OVERVIEW OF THE REPUBLIC OF GUINEA (THE RESEARCH CONTEXT)
Guinea is a constitutional republic wherein executive power is executed by the president (U.S. Department of State, 2011). The country extends through an area of land that is approximately 245,857 square kilometers and at the borders Mali, Senegal, and Guinea-Bissau are in the north, Liberia and Sierra Leone in the south, and Côte
