Human Resources Management Practices and its Impact on Employee Commitment Mong Staffs of Road Transport Department, Perak, Malaysia

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 28-34

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal weblink: http://www.jett.dormaj.com

Human Resources Management Practices and its

Impact on Employee Commitment Mong Staffs of

Road Transport Department, Perak, Malaysia

Che Supian Mohamad Nor *, Ramesh Kumah Haji Mohamed , Baderisang Mohamed , Nor

Aisha Che Hassan⁴

Universiti Sains Malaysia; Email: supian@usm.my

Universiti Tunku Abdul Rahman

Universiti Teknologi MARA

Universiti Sains Malaysia

Received: 12/04/2019

Accepted: 23/09/2019

Published: 20/02/2020

Abstract

This paper intends to examine the impact of Human Resources Management (HRM) Practices on the employee commitment at Road

Transport Department (RTD), State of Perak, Malaysia. There were about 500 employees in this department and a total of 220

questionnaires were distributed randomly through head of departments. The findings of the research revealed that there were positive

relationships between HRM Practices and employee commitment. However, among four HRM practices dimensions (remunerations,

recognitions, working environment, and training and development) that had been investigated, only working environment and training

and development had significant relationship with employee commitment.

Keywords: HRM Practices; Employee Commitment; Road Transport Department; Public Sector Employees.

Employees’ commitment towards the organization is vital in

Introduction

determining the development of the organization itself. It can

be said that, employees’ commitment is very valuable and is an

intangible asset that each organization should have in order to

success. Thus, it is very important for the management in any

organization to enhance the employees’ commitment because it

is one of the factors that determine the successfulness of an

organization. According to Awamleh (1996), stronger and

more generalized commitment may enhance organizational

development, growth and survival. In addition, organization

will never attain its competitiveness in term of quality; either it

is product quality or service quality if the workers are not

satisfied with the company (6, 55).

Herzberg (1996) highlighted that the presence or absence

of many attributes, originating internally from within the

organization, influences an individual’s attitude concerning

their job and also their commitment towards organization (25).

It means that, the attributes that can influence the employee’s

attitude such as satisfaction or commitment towards his or her

job are coming from the inside of the organization itself.

Employee commitment has three dimension which are

affective, normative and continuance commitment (5). The

statement explained that the researchers can measure the

employee commitment by categorized it into 3 dimensions with

each one of it has difference in the level of the employee

commitment towards their organization. The public sector

employees’ commitment to the organization is of utmost

important so as ensure the efficient and effective service

rendered to the people. As such this study pertain to HRM

Practices and its impact on Road Transport Department‘s

The Malaysian government had emphasized the

enhancement of human capital especially in the public sector

so as to provide an efficient and effective public sector services

to the people at large (30). According to Saari (2010), public

institutions are facing myriads of issues in enhancing the

performance and commitment of their employees. Among the

issues were lack of commitment, absenteeism, rude behavior

and inefficiency in performing tasks given to them. An officer

responded as follows when asked to comment about people’s

perceptions about civil service in Malaysia by a reporter… “If

you go on social media you can read all the negative comments

about civil servants. We need to change people’s perception of

the public sector.” Public Service Department’s director-

general Datuk Seri Zainal Rahim Seman said the civil service

is focusing on improving the quality of the services it provides

to improve its image. Civil servants simply need to do their

jobs efficiently and effectively (7, 8, 12, 49).

Batau and Mohamed (2016) stated that the public sector’s

performances were marred by the lackadaisical attitude and

lack of sense of responsibility among public sector employees.

Batau and Mohamed (2016) had further highlighted that it was

a popular assumption that inadequate reward, less work

benefits, lack of opportunity for career advancement, non-

conducive work environment, unattractive remuneration, lack

of training and development and the absent of recognition

provided by the public organization to their employees had led

them to emotionally and mentally detached from the

organization. Thus, the employees are not committed and

hence resulted to dismal performance of the department (9).

(

RTD) employees’ commitment in Perak, Malaysia is needed.

Corresponding author: Che Supian Mohamad Nor, Universiti

Sains Malaysia; Email: supian@usm.my.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 28-34

appraisal, and reward and incentives. Delery and Gupta (2016)

studied HRM practices also with five dimensions which are

staffing, training, appraisal, compensation, and participation

Literature Review

.1 Employee Commitment towards the Organization

There is various kind of definition of the phrase employee

(

18, 19, 32). Chew and Chan (2008) studied HRM practices

commitment but most researchers agreed that the best

definition of commitment is multidimensional psychological

connection of an individual to the organization (20). It means

that commitment is psychologically connect the individual with

the organization itself. Allen and Meyer (1990) stated that there

are three different types of organizational commitment which

are affective, continuance and normative.

with four dimensions consist of person-organizational fit,

remuneration and recognition, opportunity to work challenging

assignments, and access to training and career development.

These are example of few different studies pertain to HRM

practices which focusing on myriads of dimensions and

practices (15).

This study focuses on remuneration,

recognition, working environment, and training and

development as dimensions of HRM practices and its impact

on employee commitment at Road Transport Department in

Perak, Malaysia.

The most familiar type of commitment is affective

commitment. It is about close connection between the

employee with the organization’s goals and objectives.

Employee who has this type of commitment feels secure and

satisfied with their roles in the organization thus the affective

commitment towards the organization will be developed

through that kind of feeling. Dordevic (2004), explained that

there are two factors which influence the level of affective

commitment namely i) individual-level factor such as

personality, education, age, etc and ii) organizational factor

including management support, belief that his or her role in the

organization is well defined.

Table 1: Dimensions and Contemporary HRM Practices

Dimension

Practice

Work Relations

Conflict Regulation, Labor Relations,

Management

Organization

Model,

Work

People

Management

Analysis of Labor, Recruitment and

selection, Career Planning, Movement

Another type of commitment according to Allen and Meyer

of and

Compensation

Qualification and Training, Performance Evaluation,

Personnel,

Benefits

(

1990) is continuance commitment where the employee has

cognitive attachment to the organization because of the risks

level of leaving the organization is higher if compared to the

risks of staying in the organization. Thus, rather than facing the

high risk of leaving the organization, it is better to stay in the

organization and give the full continuance commitment

towards the organization. One of the factors known for the

continuance organizational commitment is the investment that

they had made in order to join the organization or to reach the

level of current position. The other factor is the employee‘s

belief that there is lack of option or opportunities outside the

company. Thus, it will increase the level of continuance

commitment towards the organization.

Development

Career

Development,

Team

Management

Organizational

Behavior

Performance

Leadership, Motivation, Satisfaction,

Commitment, Organizational Culture

and

Productivity,

Working

Conditions

Hygiene

Safety,

Accident

Prevention,

and Ergonomics, Occupational Health,

Stress Management, Psychosocial

Assistance

Organizational

Change

Organizational Development, Quality

of Life at Work, Total Quality

The last type of commitment as per Allen and Meyer

Source: Scheible and Bastos (2013)

(

1990) is normative commitment which represents the

obligatory reasons of staying with the organization. Dordevic

2004) highlighted that obligatory reason means that the

2.3 Remuneration

(

Employee remuneration refers to the reward or

compensation given to the employees for their work

performances. Remuneration provides basic attraction for an

employee to feel committed to perform job efficiently and

effectively. There is a significant relationship between financial

compensation (salaries, bonuses, and merit pays) with

organizational commitment (28, 29, 31). Ramay (2011) found

that pay satisfaction had a significant positive relationship with

organizational commitment. Gorton (1994) stated that merit-

based pay is important in ensuring high job satisfaction, better

commitment, and good job performance among employees. In

addition, employee also learnt that they will be rewarded for

good performance. Thus, when the employees feel that way,

they will give full commitment towards their job in the

organization (22).

Alamelu, Surulivel, Motha, Amudha and Selvabaskar

(2015) posit that when an employee is satisfied with

remuneration their commitment may increase or maintained

(3). According to Ooi and Arumugam (2006), remuneration is

one of the four motivators which can contribute to employee

commitment when it is present. It means that, most employees

will be motivated by financial incentives and will give greater

effort to be more productive if the remuneration given to them

makes them worthwhile to do so. Other than that,

compensation benefit not only involves monetary benefits but

it also consists of employee assistance programs, subsidized

cafeteria, travel discounts etc. It is therefore, if the

remuneration is executed properly, it will make employees feel

employee perhaps had received scholarship, training

investments, and etc from the organization. That is why they

feel obliged towards giving the commitment to the organization

because they think that it is morally correct to do so. There are

only a few factors that affect the level of normative

commitment which are education, age, socialization, and etc.

Perhaps the level of normative commitment towards the

organization will decrease as the age of the employee is

increased.

.2 Human Resource Management (HRM) Practices

HRM practices is a system implemented by an organization

to attract, develop, motivates, and retains employees with the

objective to ensure the efficiency and effectiveness in

achieving organizational goal (52). HRM practices is also

conceptualized as a set of internally consistent practices and

policies delineated and administered so as to warrant that a

firm’s human capital contribute to the organizational objectives

(

57). There are myriads of dimensions pertain to HRM

practices that had been highlighted by Zanelli and Bastos (as

cited in 51) as per following Table 1.

Tan and Nasurudin (2011) studied HRM practices with five

dimensions namely performance appraisal, career management,

training, reward system, and recruitment. Moona Hj Mohamed

(

2017) also conducted his PhD research on HRM practices

with five dimensions such as recruitment and selection,

training and development, career development, performance

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 28-34

secure with their job and at the same time make their job more

enjoyable thus will create the commitment of the employee

within the organization.

influence the comfort condition of the workplace itself. In

order to gain the commitment from the employee, the employer

needs to create a conducive and comfortable workplace to the

employee so that they can work comfortably and be committed

to the organization (54).

According to Beiz (2001) work environment involves the

physical and geographical locations as well as their immediate

surroundings of the work place which is associated with factors

such as level of security, and the availability of additional

perks and employments benefits (10). Ushie, Agba, and Okorie

(2015) highlighted that the availability of good work

environment will lead to higher employee commitment and

hence contributed to success of an organization. Onuka (2012)

stressed that a fortified work environment is essential in

ensuring employee commitment and consequently result to

better firm’s performance. Therefore based on prior discussions

the following hypothesis is proposed (38, 58):

O’Driscoll and Randal (1999) study a sample of 350 daily

workers in Ireland and New Zealand found that any appropriate

rewards given by the organization have very powerful impacts

on the employees’ commitment. Thus, the employer needs to

be a smart thinker in order to choose the best compensation to

be given to the employee so that the employee will achieve the

level of satisfaction and give their fullest commitment and

engagement to the organization and consequently increase the

performance of the organization.

Based on the above

discussions, the following hypothesis is proposed (37):

Hypothesis 1: There is a significant relationship between

remuneration and employee commitment.

.4 Recognition

Recognition is defined as giving praise and showing

Hypothesis 3: There is significant relationship between

working environment and employee commitment.

appreciation to others for excellent performance and significant

contribution by an employee to an organization (61). Employee

who are recognized by their employer seems to be more

committed and attain the level of job satisfaction because they

are happy the skills and ability owned are being given the

opportunity to be exposed (5, 45, 46). According to Mohamad

Nor (2011), there are two types of recognition which are

formal and informal. Formal recognition include performance-

based award, new employees recognition and etc whereas the

informal recognition refers to the simple gestures by employer

2.6 Training and Development

Training and development are actually the process of

providing the employees with sufficient or additional skills and

at the same time will help them in improving their performance

level in the organization (39). In addition, according to them,

when employee able to obtain something from the training and

development program provided for them, then it will also

increase the sense of ownership which will increase the level of

commitment of the employee towards the organization.

Robinson, Perryman and Hayday (2004) found that there is link

between training and development opportunities for employees

with the levels of commitment shown by them after they have

received training and development from the organization.

or just saying

a thank you to show gratitude and

acknowledgement for a job that had been done well by the

employee. Other study showed that, employees with higher job

status generally shown higher level of commitment if

compared to when they are being put in lower job position (17,

8). Thus, it is clear that employee will give the best

Cherrington (1995) said that a successful training and

commitment to the organization when their skills, ability and

also achievement being recognized by employer.

development program would create and develop more

favorable attitudes in employees thus it will help to increase

their commitment towards the organization. In addition,

Cherrington (1995) also added that the learning situation is

fundamentally reinforcing because commitment towards

organization is associated with the acquiring new knowledge or

skill (14).

Roehl and Swerdlow (1999) stated that training and

development contributed to the success of the organization as it

has positive relationship with employee’s morale, perception of

supervisors’ quality, awareness of rules, and most importantly

employee‘s commitment towards the organization. Young and

Lundberg (1996) found that successful training and

development program to be related positively to employee‘s

commitment, job satisfaction, performance, and intention to

stay. On the same notes Nkosi (2015) posited that training has

significant effect on employee’s commitment, retention and

performance enhancement among his respondents of a local

municipality staff in South Africa. Likewise, many other

studies revealed that training and development had

significantly impacted the employee‘s commitment (26, 35, 39,

47, 50, 40, 60). Based on the above discussions the following

hypothesis is proposed:

Employees that constantly received praise and recognition

found to have improvement in their productivity, increase

engagement with their job (higher commitment) and more

likely to stay with their organization. However the absence of

recognition and appreciation will normally lead to lack of

employee’s commitment and turnover (53, 56). Reward in term

of recognition from the superior has been found to have a

significant relationship with employee commitment (34). Park,

Erwin and Knapp (1997) stated that praise, appreciation, and

positive feedback from supervisors and colleagues for a job

well done are crucial in generating job satisfaction and

commitment among employees. Agarwal and Ferrat (1999)

assert that recognition is considered as the main contributor to

the employee’s feeling of high involvement and being an

important element of the organization. Pare and Tremblay

(

2007) found that recognition is positively associated with

continuance and affective commitment. Based on the above

discussions, the following hypothesis is proposed (2, 41, 42):

Hypothesis 2: There is a significant relationship between

recognition and employee commitment.

.5 Working environment

Shruti (2012) stated that working environment is about a

Hypothesis 4: There is a significant relationship between

training and development and employee commitment.

condition and atmosphere of a workplace where the task or the

job is completed. It includes the physical and geographical

location and also surroundings of the workplace such as a

construction site or office building. A place of employment

with certain safety level, the quality of air, noise level, and

additional perks and benefits such as the availability of free

child care or pantry facility that allow staffs to make

refreshments for themselves, adequate parking and etc that can

2.7 Theory

Organizations are now fully aware that committed

employees will drive down turnover, absenteeism and

improving job related attitudes and performance (23).

Podsakoff and MacKenzie (1997) assert that there is growing

recognition pertaining to the importance of employee‘s positive

work attitudes and discretionary behavior towards

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2020, Volume 8, Issue 1, Pages: 28-34

organizational performance. Wayne, Shore, and Liden (1997)

propound that positive employees‘attitudes contingent to their

perceptions of how good their employer in safeguarding the

interest of the workers. This view is in tandem with social

exchange theory which stated that “the voluntary actions of

individuals are motivated by the return they are expected to

bring from others...“ (11, 43, 44, 59). If the employees viewed

management’s actions positively, they would reciprocate with

attitude and behaviors desired by the organization. This is

invariable with the findings of prior researches in which HRM

practices signal management’s commitment to and trust in their

employees (24). The framework for this research is as per

following figure 1:

r = 0.477 , p<0.05 reflected that there is a weak relationship

between the recognition and employee commitment. The

second hypothesis is accepted. However, the influence of

recognition on employee commitment is not that strong.

Recognition can affect the employee commitment in a great

manner but it depends on the circumstances.

c) Hypothesis 3: There is significant relationship between

working environment and employee commitment.

Table 3: Pearson product moment correlation analysis between

recognition and employee commitment

Pearson (r)

Employee Commitment

Variable

Recognition

Significant

0.477**

0.000

180

Independent Variables

Dependent Variables

HRM Practices

Employee

Commitment

Table 4: Pearson product moment correlation analysis between

working environment and employee commitment

. Remuneration

. Recognition

Pearson (r)

Variable

Employee Commitment

Working Environment

Significant

0.507**

0.000

180

Figure 1: Research Framework

Methodology and Materials

The sample was drawn from a population of about 500

Based on table 4 above, it shows that there is a strong

relationship between working environment and employee

commitment. The value derived from the table above shows

that r = 0.507**, p<0.05. This reflects that the value is in the

range of strong positive relationship. As such it can be

concluded that there is a significant strong positive relationship

between the workplace environment and employee

commitment. Therefore, hypothesis 3 is accepted. Workplace

environment has a high intensity in influencing the employee

commitment at the workplace.

employees at Road Transport Department (RTD), State of

Perak, Malaysia. 220 questionnaires were distributed as per

sample size table proposed by Krejcie and Morgan (1970).

Stratified random sampling was adopted whereby

questionnaires were handed over to each head of department

for onward distribution to their charge. This study used five

point Likert scale for HRM practices adapted from Absar,

Azim, Balasundram

Akhter (2010) and employee

commitment adapted from Mowday, Steers and Porter (1979).

Out of 220 questionnaires distributed 180 were usable. 40

questionnaires were discarded due to incompleteness and

outliers. Data was analyzed using SPSS version 19 (1, 27, 33).

d) Hypothesis 4: There is a significant relationship

between training and development and employee commitment.

Table 5: Pearson product moment correlation analysis between

training and development and employee commitment

Pearson (r)

Results and discussion

.1 Hypotheses Testing

Variable

Employee

Commitment

0.279**

0.000

a) Hypothesis 1: There is a significant relationship

between remuneration and employee commitment.

Training and Development

Significant

Table 2: Pearson product moment correlation analysis between

remuneration and employee commitment

180

Pearson (r)

Employee Commitment

0.383**

0.000

180

Variable

From the table 5 above, it can be seen that there is a weak

relationship between training and development and employee

commitment. The value shows that r = 0.279 , p<0.5. Hence,

it can be concluded that there is a weak relationship between

training and development and employee commitment.

Therefore, the hypothesis 4 is accepted albeit it falls under

weak relationship. The intensity that employee commitment

would be influence by this factor is low.

Remuneration

Significant

The above table 2 shows that there is a positive value of the

correlation between the remuneration and employee

commitment among employees at RTD Perak. It indicates the r

0.383**, p>0.05. This reflects that there is a mild positive

.2 Multiple Regression Analysis

Based on the following table 6, we can see the score value

significant relationship between the remuneration and

employee commitment. This can be concluded that the

employee does not rely on the remuneration that they earned in

their commitment to their workplace. The hypothesis for this

objective is being accepted albeit the relationship is only a mild

positive relationship.

b) Hypothesis 2: There is a significant relationship

between recognition and employee commitment.

From the table 3 above, we can see a weak relationship

between recognition and the employee commitment. The value

of beta coefficient for each independent variable namely

remuneration, recognition, workplace environment, and also

training and development were 0.125, 0.301, -0.034, and 0.347

respectively. It shows that the beta value for the training and

development has the highest score i.e. 0.347 above all the other

three variables. The next highest value is recognition with beta

value of 0.301 followed by remuneration with beta value of

0.125 and the least human resources management practice that

affects the employee‘s commitment based on the value is

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 28-34

workplace environment with beta value of -0.034. As has been

mentioned earlier, training and development has the highest

beta value that may affect the employee commitment. When

the employee received a good and sufficient training and

development program, it can actually boost the employee

commitment at the workplace. It is because the more the

employee received training and development program, such

employee will actually gain more conscience on how they

would do for their organization in helping it achieve it‘s

success. This is in congruent with extant literatures that

supported the notion that training and development had been

positively impacted employee‘s commitment towards the

organization (8, 16, 13, 46, 39).

a significant reading of t-value 5.055 but the multiple

regression analysis showed the negative beta value of -0.034.

This means that, workplace environment does not impact the

employees’ organizational commitment. Even if the workplace

environment was not good, the employees still committed to

their organization. The reason for this may be due to other

available factors such as good leadership or high degree of

loyalty among employees that moderate the relationship

between workplace environment and commitment. Future

research should look further into this possibility. Besides, the

employer should also be more concern with other aspects of

HRM practices albeit their relationship with employees’

commitment was weak. As we can see from R² value equal to

35.8%, other elements of HRM practices that had not been

Table 6: Multiple Regression Analysis of HRM Practices on

studied here would explain another 64.2% of variant to

employees’ commitment. We would propose that future

research should consider other dimensions of HRM practices,

the possible mediating and or moderating variables as well as

other population segments so that to enrich the body of

knowledge pertaining to relationship between HRM practices

and employees’ commitment.

Employee Commitment

Beta

Coefficient

0.125

0.301

-0.034

Variables

Sig

Remuneration

Recognition

Working Environment

Training and

1.863

4.544

5.055

0.064

0.000

0.617

0.347

-0.501 0.000

Development

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