HR practices in MSME S and its impact on organizational commitment an empirical study

Abstract

While organisational commitment, have fascinated academics and is widely investigated in large organisations, it has not yet received the same amount of attention in Small and Medium Enterprise and in most of the developing countries. A lot of studies are found outside of India with very little contextual significance and many a times, they cannot be practically applied to the Indian context. In these lines, there is a huge gap in proving the context that the HR practices and more specifically, the principles and theories of organizational commitment in MSMEs. There are very few studies found on the organizational commitment as an HR factor impacting the working of MSMEs in India. There is also gap found in the methodology followed in various studies. The literature has more of conceptual studies rather than empirical studies proving the impact of HR practices on Organizational commitment of employees in MSMEs. Researcher has adapted a descriptive design to carry out the research among the employees of select MSME s in Chittoor district. Two step sampling has been used and utmost care went in to including samples from different companies. Statistical tools like t-test, Anova, Factor analysis and regression were used to identify the impact of HR practices on organizational commitment. Findings revealed a positive influence of HR Strategies on Organizational commitment. High satisfaction of individuals towards HR strategies resulted in increased organizational commitment. However, this study revealed high influence of HR strategies on fear of loss and affection for job components of organizational commitment whereas; self-obligation component had a comparatively less impact from HR strategies. newline