The Influence of human resource management practices on organizational commitment of employees in TUV Rheinland indonesia
Indonesian companies were found to have significantly higher turnover rate than the global rate (more than twice the global rate for voluntary turnover) and also higher than in other fast-growing economies in Asia Pacific. Attracting and retaining employees in the organization particularly top performer is seen important since they are the organization?├ç├ûs most valuable resources and a source of achieving competitive advantage. rnThe purpose of this research is to explore the correlation between human resource management practices and the organizational commitment of employees in TUV Rheinland Indonesia. The data collection from this study was taken from a total of 72 questionnaires to both permanent and contract employees of the organization. The data was analyzed through Structural Equation Modeling (SEM) by utilizing AMOS ver.21. SPSS ver. 21 was also used for validity and reliability test.rnThe results represented that Human Resource Management Practices have a significant role on Organizational Commitment of employees in TUV Rheinland Indonesia, where the employees?├ç├û perception regarding the implementation of Human Resource Management Practices give impact on their commitment towards the organization. It was found that the Human Resource Management Practices such as compensation and benefits, training and development, and performance evaluation give effect on the organizational commitment in which the strongest influence indicator of HRM practices towards the organizational commitment of employees in this company is compensation and benefits. It was also found that affective commitment and continuance commitment dimensions of organizational commitment were influenced by the HRM practices.
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