Compensation management and continuance commitment of employees in Nepalese commercial banks: The mediating role of career development opportunities
-
Author(s)Dhruba Prasad SubediLink to ORCID Index: https://orcid.org/0009-0001-3802-5778
,
Dilli Ram BhandariLink to ORCID Index: https://orcid.org/0000-0002-7830-9855
-
DOIhttp://dx.doi.org/10.21511/ppm.22(3).2024.32
-
Article InfoVolume 22 2024, Issue #3, pp. 413-426
- 127 Views
-
26 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Understanding the relationship among compensation management, career development opportunities, and employee continuance commitment is crucial for fostering a productive and engaged workforce. Organizations that excel in compensation management are more likely to invest in their employees’ career opportunities. This study aims to examine the influence of career development opportunities on the relationship between compensation management and continuance commitment among the employees of Nepalese commercial banks. To achieve this objective, data were collected from 404 respondents using a structured questionnaire administered through a convenience sampling technique. The respondents included employees at the manager, officer, and assistant levels working in different commercial banks. The collected data were analyzed using Process Macro 4 at a 95% confidence interval with 5,000 bootstrapping samples. The results indicate that career development opportunities have a partial mediating effect on the relationship between compensation management and employees’ continuance commitment. This study demonstrates that organizations that are proficient in compensation management practices not only prioritize investing in their employees’ career growth but also enhance employees’ commitment to achieving organizational goals. This study further highlights the role of career development opportunities in strengthening the relationship between compensation management and employees’ psychological bonds to stay with the organization.
- Keywords
-
JEL Classification (Paper profile tab)J30, J28, J24
-
References60
-
Tables7
-
Figures1
-
- Figure 1. Conceptual framework
-
- Table 1. Reliability analysis
- Table 2. Demographic profile of the respondents
- Table 3. Descriptive analysis and correlation coefficients
- Table 4. Regression analysis of compensation management on career development opportunity
- Table 5. Regression analysis of compensation management and career development opportunity on continuance commitment
- Table 6. Summary of total, direct, and indirect effects of compensation management on continuance commitment
- Table B1. List of sampled Nepalese commercial banks
-
- Adams, J. S. (1963). Toward an understanding of inequity. Journal of Abnormal and Social Psychology, 67(5), 422-436.
- Adhikari, K. B. (2022). Nepali banking sector offers many opportunities for young graduates who are planning to join BFIs [Interview]. The HRM Nepal.
- Adulsalam, D., Maltarich, M. A., Nyberg, A. J., Reilly, G., & Martin, M. (2021). Individualized pay-for-performance arrangements: Peer reactions and consequences. Journal of Applied Psychology, 106(8), 1202-1223.
- Al Balushi, A. K., Thumiki, V. R. R., Nawaz, N., Jurcic, A., & Gajenderan, V. (2022). Role of organizational commitment in career growth and turnover intention in public sector of Oman. PLoS ONE, 17(5), 265-280.
- Algarni, M., & Alemeri, M. (2023). The role of employee engagement, job satisfaction, and organizational commitment on happiness at work at a Saudi organization. International Journal of Business and Management, 18(2), 27-45.
- Al-sharafi, H. (2018). The effect of training and career development on employees’ retention: A study on the telecommunication organizations in Yemen. The Journal of Social Sciences Research, 12(4), 45-62.
- Armstrong, M. (2017). A handbook of employee reward management and practices. Kopan Page Publishers.
- Arthur, M. B. (2008). Examining contemporary careers: A call for interdisciplinary inquiry. Human Relations, 61(2), 163-186.
- Baruch, Y. (2004). Transforming careers: From linear to multidirectional career paths: Organizational and individual perspectives. Career Development International, 9(1), 58-73.
- Bhatti, M A., Mat, N., & Juhari, A S. (2018). Effects of job resources factors on nurses’ job performance (mediating role of work engagement). International Journal of Health Care Quality Assurance, 31(8), 1000-1013.
- Biswakarma, G. (2016). Organizational career growth and employees’ turnover intentions: Empirical evidence from Nepalese Private Commercial Banks. International Academic Journal of Organizational Behavior and Human Resource Management, 3(2), 10-26.
- Chang, C. S, Ho, W-H., Shih, Y-L., & Liang, R-D. (2009). Effects of job rotation and role stress among nurses on job satisfaction and organizational commitment. BMC Health Service, 9(1), Article 8.
- Chaudhary, M. K. (2022). Rationale of employee turnover: An analysis of banking sector in Nepal. International Research Journal of MMC (IRJMMC), 3(2), 18-36.
- Chen, T. Y., Chang, P. L., & Yeh, C. W. (2004). An investigation of career development programs, job satisfaction, professional development and productivity: The case of Taiwan. Human Resource Development International, 7(4), 441-463.
- Clarke, N. (2010). Emotional intelligence abilities and their relationships with team processes. Team Performance Management: An International Journal, 16(1/2), 6-32.
- Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(4), 297-334.
- Daniyal, M. & Khan, M. (2024). The role of HRM practices in retaining employees: Evidence from the banking sector. Journal of Management, 7(4), 232- 247.
- Davidescu, A. A. M., Apostu, S. A., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among Romanian employees. Implications for Sustainable Human Resource Management, 12(15), Article 6086.
- Duffield, C., Baldwin, R., Roche, M., & Wise, S. (2014). Job enrichment: Creating meaningful career development opportunities for nurses. Journal of Nursing Management, 22(6), 697-706.
- Dysvik, A., & Kuvaas, B. (2023). Perceived job autonomy and turnover intention: The moderating role of perceived supervisor support. European Journal of Work and Organizational Psychology, 22(5), 563-573.
- Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500-507.
- Foday, A. (2014). Perceived relationship between career development and employee retention at Deloitte (Master’s Thesis). Kenya: School of Business.
- Garavan, T. N. (2007). A strategic perspective on human resource development. Advances in Developing Human Resources, 9(1), 11-30.
- Gerhart, B. (2023). Compensation management (14th ed.). McGraw-Hill.
- Ghani, B., Zada, M., Memon, K. R., Ullah, R., Khattak, A., Han, H., Ariza-Montes, A., & Araya-Castillo, L. (2022). Challenges and strategies for employee retention in the hospitality industry: A review. Sustainabiity, 14(5), Article 2885.
- Gong, Y., Law, K. S., Chang, S., & Xin, K. R. (2009). Human resources management and firm performance: The differential role of managerial affective and continuance commitment. Journal of. Applied Psychology, 94(1), 263-275.
- Hassan, Z. (2022). Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system. Journal of Entrepreneurship, Management and Innovation, 18(4), 137-173.
- Hayes, A. F. (2022). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach (Vol. 3). The Guilford Press.
- Jacobs, R., & Washington, C. (2003). Employee development and organizational performance: A review of literature and directions for future research. Human Resource Development International, 6(3), 343-354.
- James, M. A., Brownson, D. C., & Efi, A. (2024). Compensation Management and Employee Commitment. Research Journal of Management Practice, 4(1), 13-25.
- Kang, E., & Lee, H. (2021). Employee compensation strategy as sustainable competitive advantage for HR education practitioners. Sustainability, 13(3), 1049.
- Kaya, C., & Ceylan, B. (2014). An empirical study on the role of career development programs in organizations and organizational commitment on job satisfaction of employees. American Journal of Business and Management, 3(3), 178-191.
- Klein, H. J., Becker, T. E., & Meyer, J. P. (2009). Commitment in organizations: Accumulated wisdom and new directions. Routledge.
- Kohlmeyer, J. M., Parker, R. J., & Sincich, T. (2017). Career related benefits and turnover intentions in accounting firms: The roles of career growth opportunities, trust in superiors, and organizational commitment. In Advances in Accounting Behavioral Research (pp. 1-21). Emerald Publishing Limited.
- Luna-Arocas, R., & Camps, J. (2008). A model of high-performance work practices and turnover intentions. Personnel Review, 37(1), 26-46.
- Margie, N., Artati, N. E., Rusmawati, A., & Sugiyarti, G. (2023). The influence of career development and compensation through motivation on the performance of healthcare workers in Buaran and Kedungwuni Sub-District Community Health Center. Saudi Journal of Economics and Finance, 7(11), 561-569.
- Matande, E., Megiyanti, L., & Thoyib, A. (2022). The effect of perceived organizational support and transformational leadership on turnover intention of health workers at Hospital X Mimika Regency Papua. International Journal of Research in Business and Social Science, 11(6), 218-228.
- Meyer J. P., & Herscovitch, L. (2001). Commitment in the workplace: Toward a general model. Human Resource Management Review, 11(3) 299-326.
- Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61-89.
- Milkovich, G. T., & Newman, J. M. (2008). Compensation. McGraw-Hill.
- Noe, R. A. (2020). Employee training and development. McGraw-Hill Education.
- Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2023). Human resource management: Gaining a competitive advantage (13th ed.). McGraw-Hill.
- Noor, Z., Nayaz, N., Solanki, V., Manoj, A., & Sharma, A. (2020). Impact of rewards system on employee motivation: A study of manufacturing firm in Oman. International Journal of Business and Management Future, 4(2), 6-16.
- Richard, W. (2023). Role of Perceived Career Development Opportunities in Predicting Employee Commitment and Subjective Career Satisfaction of Middle Managers in Commercial Banks in Sri Lanka. Sri Lanka Journal of Social Sciences and Humanities, 1(1), 23-32.
- Ridwan, M., Mulyani, S. R., & Ali, H. (2020). Building behavior and performance citizenship: Perceived organizational support and competence (case study at SPMI private university in west Sumatra). International Journal of Psychosocial Rehabilitation, 24(6), 2049-2064.
- Risal, N. (2018). Employees commitment and organizational performance: Empirical evidence from life insurance companies in Kathmandu, Nepal. International Journal of Creative Research Thoughts, 6(1), 73-103.
- Sady, K., Aamodt, M., & Cohen, D. (2019). Compensation equity: Who, what, when, where why, and how. In C. Hanvey & K. Sady (Eds.), Practitioner’s Guide to Legal Issues in Organizations. Cham: Springer.
- Sitopu, Y. B., Sitinjak, K. A., & Marpaung, F. K. (2021). The influence of motivation, work discipline, and compensation on employee performance. Golden Ratio of Human Resource Management, 1(2), 72-83.
- Taber, K. T. (2018). The use of Cronbach’s Alpha when developing and reporting research instruments in science education. Research in Science Education, 48(3), 1273-1296.
- Taing, M. U., Granger, B. P., Groff, K. W., Jackson, E. M., & Johnson, R. E. (2011). The multidimensional nature of continuance commitment: Commitment owing to economic exchanges versus lack of employment alternatives. Journal of Business and Psychology, 26(3), 269-284.
- Tansky, J W., & Cohen, D J. (2001). The relationship between organizational support, employee development, and organizational commitment: An empirical study. Human Resource Development Quarterly, 12(3), 285-300.
- Tavakol, M., & Dennick, R. (2011). Making Sense of Cronbach’s Alpha. International Journal of Medical Education, 2(1), 53-55.
- Towers Watson. (2012). Global workforce study. Engagement at risk: Driving strong performance in a volatile global environment.
- Vandenberghe, C., & Panaccio, A. (2013). Delving into the motivational bases of continuance commitment: Locus of control and empowerment as predictors of perceived sacrifice and few alternatives. European Journal of Work and Organizational Psychology, 24(1), 1-14.
- Vroom, V. H. (1964). Work and motivation. Wiley Publication.
- Wang, C. L., Indridason, T., & Saunders, M. N. (2010). Affective and continuance commitment in public private partnership. Employee Relations, 32(4), 396-417.
- Wang, Y., & Zhang, J. (2023). Exploring the determinants of continuance commitment in the modern workplace. Journal of Organizational Behavior, 44(1), 45-60.
- Weng, Q., & McElroy, J. C. (2012). Organizational career growth, affective occupational commitment, and turnover intentions. Journal of Vocational Behavior, 80(2), 256-265.
- Williams, M., Brower, H., Ford, L., Williams, L., & Carraher, S. (2008). A comprehensive model and measure of compensation satisfaction. Journal of Occupational and Organizational Psychology, 81(4), 639-668.
- Yarbrough, S., Martin, P., Alfred, D., & McNeill, C. (2017). Professional values, job satisfaction, career development, and intent to stay. Nursing Ethics, 24(6), 675-685.
-
E-banking quality and customer loyalty: The mediating role of customer satisfaction
Ephrem Habtemichael Redda
doi: http://dx.doi.org/10.21511/bbs.18(2).2023.15
Banks and Bank Systems Volume 18, 2023 Issue #2 pp. 177-188 Views: 983 Downloads: 587 TO CITE АНОТАЦІЯAttaining customer satisfaction and loyalty is seen as a prerequisite for successful bank management. The purpose of the study is to identify and explain the mechanism through which e-banking quality is related to loyalty by including satisfaction as a mediating variable in South Africa. The study adopts a descriptive research design and a quantitative mediation analysis. The data collected through SurveyMonkey comprised a sample of 310 participants who used online banking. The results of the mediation analysis confirm that e-banking quality has a considerable and positive effect on customer satisfaction, which in turn has a significant and positive effect on loyalty in e-banking. The direct effect of e-banking quality on loyalty is also confirmed. Furthermore, the study’s findings show that the quality of e-banking has a significant and favorable indirect effect on loyalty, as mediated by customer satisfaction. Because the direct effect of e-banking quality on loyalty remained significant after the satisfaction intervention/mediation in the model, the mediation is regarded as partial. The findings of this study offer essential marketing guidance for banking professionals who design and implement e-banking solutions for their customers.
-
Impact of HR managers’ competencies on organizational effectiveness: Mediating role of innovative HR practices
Ravi B. S. ,
Sumathi G. N. 
doi: http://dx.doi.org/10.21511/ppm.21(2).2023.60
Problems and Perspectives in Management Volume 21, 2023 Issue #2 pp. 667-681 Views: 763 Downloads: 208 TO CITE АНОТАЦІЯWith increased business intricacies, human resource (HR) managers must possess relevant competencies to meet market demands. The study investigates the relationship among HR competencies, innovative HR practices, and organizational effectiveness. It also conducts an importance-performance analysis for HR competencies to identify the skill gap. A structured questionnaire comprising 31 questions was used to measure various components of HR competencies, innovative HR practices, and organizational effectiveness. 247 HR managers working in various companies in Tamil Nadu are selected based on a purposive sampling technique. Importance-performance analysis was carried out for items and dimensions of HR competencies. Confirmatory factor analysis, correlation analysis, and mediation analysis using regressions are further carried out on the collected data. The skill gap analysis revealed that the abilities to use the latest insights in various HR practices, co-craft strategic agenda, align the company’s activities with customer needs, and connect people through technology must be improved. The regression results indicated that the competencies of the strategic positioner, credible architect, capacity builder, and technology proponent are needed to improve organizational effectiveness. The innovative HR practices partially mediated the relationship between HR competencies and organizational effectiveness. The study meets the literature gap in the area of the contribution of HR managers toward organizational effectiveness through their competencies and the adoption of HR practices.
-
Impact of customer satisfaction on commercial banks in Nepal: Insights from a survey-based study
Yadav Mani Upadhyaya ,
Shiva Raj Ghimire ,
Nirdosh Agarwal ,
Khom Raj Kharel
doi: http://dx.doi.org/10.21511/bbs.19(3).2024.17
Banks and Bank Systems Volume 19, 2024 Issue #3 pp. 200-216 Views: 157 Downloads: 56 TO CITE АНОТАЦІЯThis study investigates how various service quality dimensions affect customer satisfaction in commercial banks across Nepal. The objective of this study is to examine the impact of key service quality dimensions (responsiveness, empathy, assurance, communication, and overall service quality) on customer satisfaction in commercial banks in Nepal. A survey-based quantitative approach was employed, collecting data from 399 customers in Nepal. The study utilizes multiple linear regression analysis and hypothesis testing to determine the relationship between these factors and customer satisfaction. The results indicate that communication, assurance, and service quality positively influence customer satisfaction, with a moderate mean score of 2.317949 out of 5 and moderate variability (SD = 0.479612). These three factors are key contributors, accounting for 41.5% of the variation in satisfaction, whereas empathy and responsiveness have weaker or insignificant impacts. The study concludes that enhancing communication and service quality is crucial for improving customer satisfaction, which is essential for sustainable growth in Nepal’s financial sector.
