Human resource management practices and its impact on psychological contract and employee's commitment in organizations

Human resources are the most valuable and unique assets of an organization. The successful management of an organization's human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. Management opt various HRM practices to enhance employees commitment and strengthen psychological contract. It is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organization. The present study made an attempt to examine the impact of the HRM practices on the employee's psychological contracts and organisatinal commitments. To examine such impact, a Structural Equation Model (SEM) was constructed and model fit was assured on the basis of given rule of thumb. The model shows a very good fit to apply. On the basis of the outcome of the model, this study concludes that out of six variables taken as independent in study, only two; i.e. recruitment and selection and, employee's empowerment have an impact on the organizational commitment.