Journal of International Business Research and Marketing
Volume 3, Issue 3, March 2018, Pages 7-22
Research on the Relationship between Human Resource Management Practices and Employee Retention in Chinese Overseas Enterprise Evidence from Huawei in Senegal
School of Management, Wuhan University of Technology, Wuhan, P.R. China
Abstract: The core objective of this study was to investigate on the impact of selected human resource management practices, namely recruitment, and selection, training and development, performance evaluation, remuneration and promotion on employee retention through organizational commitment, trust and inclusion at Huawei in Senegal. For that purpose, data were collected by verified structured questionnaire. The different theories have shown that HRM practices have a positive and significant relationship with employee retention. Besides, there was evidence that found that organizational commitment could act as a mediator between these HRM practices and employee retention. Similarly, different theories and literature have backed up the fact that organizational trust and inclusion will affect positively and enhance employee commitment towards the organization. Data were collected to identify all types of relationships among different constructs. As a result, a well-structured questionnaire was developed on the basis valid and tested reliable instruments from different academic journals in the field of management. The hypotheses that were constructed on the basis of a model that was tested through collected data. This study is purely quantitative, and the source of data was both primary and secondary. Thus, about 400 questionnaires were distributed to different Huawei Company sections in Senegal, but only 318 were considered appropriate for final analysis. To get the expected results and finding, SPSS 20, Excel and AMOS 21 were the main statistical software used to analyze data. Confirmatory factor analysis (CFA) was also performed to check reliability and validity, average variance extracted from the measurement model. Multilinear regression analysis has been used to test the proposed relationships between the independent and dependent variables. Then, Analysis of Variance (ANOVA) has been used according to the perspective objectives of the current study. Pearson correlation analysis was performed to examine the correlation between different variables. Besides, the structural equation modeling (SEM) analysis was also used to find out the simultaneous and continuous relationship between the different variables, while linear regression modeling was applied to test the research hypotheses. The findings of the study revealed that selected human resource management (HRM) practices have a positive and significant relationship with employee retention.
Keywords: HRM practices, Retention, Organizational commitment, Trust, Inclusion
Over the past decade, the way in which people are managed and developed at work has come to be recognized as one of the primary factors in achieving improvement in organizational performance. Therefore, many aspects of human resources management were covered and discussed in detail. The most commonly cited practices of HRM practices include recruitment, reward and compensation, performance appraisal, training and development, career development, health and safety and supervisor support (Osemeke, 2012). Moreover, it was revealed that the most effective human resource management practices in the retail industry are performance appraisal, training, and development, reward, and compensation, career development, health and safety (Ming, et al., 2012; Tay, 2011; Puri, 2013). Previous research also showed a strong correlation between human resource management practices on employee retention. This is because by following appropriate human resource management practices the employee is felt appreciated, satisfied, motivated, more engaged with training which will improve the performance and encourage the employee to retain (Amin, 2013; Hoekstra, 2011). Briefly, HRM practices have a great impact on employee retention, and therefore, the latter also influences organizational success. Several scholars have noted that managing people is more difficult than managing technology and capital (Barney, 1991; Lado and Wilson, 1994). Managing human resources has become critical to the success of all companies, large and small, regardless of industry (Ulrich and Lake, 1990). That is to say; effective human resource management can be one of the main factors for the success of a firm. Today, most of the companies consider that without efficient HRM programs and activities companies would not achieve their goals effectively. The success of any organization depends on their employees that how committed and loyal they are towards their organization. The topic of HRM practices has been covered by a large number of researchers worldwide for decades to analyze the relationship between HRM practices on employee retention. Almost no previous research was made on the relationship between HRM Practices and employee retention at Huawei Technologies in Senegal. Therefore, the researcher has come out with this new idea of analyzing the impact of Human resource practices and employee retention strategies that Huawei utilizes in Senegal. Eventually, findings of the current study would help Managers at Huawei, Researchers, and Academicians to make efficient use of them for the benefit of the organization.
2. Literature Review
The practice of human resource management (HRM) is concerned with all aspects of how people are employed and managed in organizations. However, it is a distinct field of knowledge where a good number of researchers already conducted, and the findings contributed to business organizations for functioning more successfully. Many researchers are still going on to find potential unresolved issues to make the significant development of theory and knowledge in this field. Several scholars have noted that managing people is more difficult than technology or capital (Barney, 1991; Lado and Wilson, 1994). Thus, HRM can help companies improve organizational behavior such areas as staff commitment, retention, competency and flexibility, which in turn leads to improved staff performance.
2.1 Hard and Soft Model Approaches of HR
Hard and Soft versions of human resource management are two of the most widely adopted models. Storey (1989) has distinguished between ‘Hard’ and ‘Soft’ forms of HRM. ‘Hard HRM focuses on the cost incurred by the human resources of a firm; ‘Soft’ HRM, on the other hand, stresses the ‘Human’ aspects of HRM. According to this framework, employees are measured as an additional value to the organization bearing in mind employees require training and development with careful management to develop the quality, commitment and flexibility. As for hard version, employees’ maximum potential is used for the benefit of the organization and employees. (Truss, et al., 1997; Dainty, et al., 1998; Ihuah, 2014). Besides, according to Storey, Salaman, and Billsberry (2005) and Guest (1997), the models are not appropriately explored, and questions were raised about the value and the relevance of the models (Truss et al. 1997). Similarly, this particular model is not relevant to this research because based on the existing studies there are more than training and development required to achieve the organizational goals through human resource management practices (Ming et al. 2012; Tay, 2011; Puri, 2013).
2.2 Human Resource Management Practices
HRM practices are defined as a set of planned strategies and policies implemented by an organization to ensure organization’s human capital efficiently and effectively contributes to the achievement of organizational objectives (Anthony et al. 2002; Mondy et al. 2005). At the organization level, HRM practices have been identified as a source of business revenue (Mathis et al. 2003). This is because HRM practices such as compensation (offer of attractive rewards to attract and retain skilled manpower), performance appraisal (determine employees’ strengths and weaknesses), and training and development (train potential employees to undertake higher-level tasks) have been considered as the foundation strategies to ensure organization has a group of talented employees that help to increase the organizational productivity and enhance the company’s innovativeness. Human resource management practices play an important role in attracting, motivating, rewarding and retaining employees (Noe, 2008). The latter furthermore states that HRM Practices concerns about management activities such as investment in staffing, performance management, training and development, compensation and benefits, employee relation, safety, and health.
Wright et al. 2005 contended three distinctions within human resource practices exist. Firstly, they suggested that there are HR practices designed on a strategic level. Second, there are actual human resource practices that have been implemented, most often by supervision. Finally, they suggest a third level of human resource practices, those perceived by the employees. HRM practices may differ from one company to another and from one country to another. According to Chandler and McEvoy (2000), one of the lingering questions in HRM research is whether or not there is a single set of policies or practices that represent a ‘universally superior approach’ to managing people. Theories on best practices or high commitment theories suggest that HRM practices, either separately or in combination are associated with improved organizational performance. Researchers have also found that well-paid, well-motivated workers, working in an atmosphere of mutuality and trust, generate higher productivity gains and lower unit costs (Boxall, 1996).
2.2.1 Recruitment and Selection
Recruitment is defined as any process for which an organization seeks applicants and attracts potential employees; selection refers to the process by which an organization identifies those applicants with the knowledge, skills, abilities, and other characteristics that will help it achieve its goals (De Cieri and Kramar, 2008, p. 30). The general aim of the recruitment and selection process is to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of the organization (Armstrong, 2006, p.6). That is to say, hiring capable people is an attractive point of departure in the process; but building and sustaining a committed workforce is more likely to be facilitated by the employment of a range of sophisticated human resource management infrastructures. Then, while employers try to select and recruit the right candidates; at the same time, job seekers gather information about organizations and current jobs offers; because they cannot gain complete knowledge of all alternatives and their potential characteristics, they rely on imperfect signals (Chan and Kuok, 2011). Thus, firms that want to fill their vacancy very quickly or who are unwilling to have recruitment processes such as job analysis, are possibly less discriminating in the quality and quantity of the candidates (Carless, 2007) while others who put effort into the process of recruitment turn on more search channels than organizations who do not. When the cost of a mistake in recruitment is high, organizations are more discerning, and the turnover of employees will increase (Chan and Kuok, 2011).
Besides, recruitment and selection process determines the decisions as to which candidates will get employment offers. This practice aims at improving the fit between employees and the organization, team, and work requirements, and thus, to create better work environment (Tzafrir, 2006). Sophisticated recruitment and selection system can ensure a better fit between the individual’s abilities and the organization requirement.
2.2.2 Training and Development
Today ‘s competitive world training and development programs have become a part of the growth of the organization and employees as well. Training programs help the employees in gaining job-related knowledge and skills. Therefore, these programs help employees improve their work performance and productivity. An organization is changing continuously to survive. The change involves the manufacturing process, business environment and making the technological advancement, etc. Thus, Training is the act of increasing the knowledge and skills of an employee for performing a particular job. The outcome of training is learning. A trainee learns new habits, refined skills and useful knowledge during the training that helps him improve performance. Training enables an employee to do his present job more efficiently and prepare himself for a higher level. Training programs provide instruction and experience to new employees and help them reach the required level of performance in their jobs quickly and economically. For the existing staff, training will help develop capabilities to improve their performance, learn new technologies or procedures, and prepare them to take on increased and higher responsibilities in the future.
Megharaja B (2014) Training is an investment rather than a cost for the organization. The utilization of all other resources directly depends on how their human resources utilize those resources. Every organization needs to have well-trained and experienced people to perform the activities that the company do.
Some scholars like Storey and Sisson considered that training is not a means of arming employees with the skills they need to perform their jobs, but it is also often deemed to be representative of an employer’s commitment to their workforce (Storey and Sisson, 1993). It may also be perceived to reflect an overall organizational strategy that involves adding increased value, as opposed to reducing costs. Many of the world’s most successful companies are aware that the provisions they make for training and development activities lie at the heart of their ability to attract and retain the best employees for their organization (Bassi and Buren, 1999). In sum, appropriate training contributes positively to employee retention because it makes employees feel recognized for their strengths, and it creates possibilities to develop their qualities.
2.2.3 Performance Evaluation
Performance evaluation is mainly concerned with the individual’s performance and development. It is used to ensure that the employee’s activities and outcomes are congruent with the organization’s goals (De Cieri and Kramar, 2008, p. 61), by focusing on future performance planning and improvement rather than on retrospective performance appraisal. However, top management needs to act as partners within a framework in which the company and the personnel together can achieve the results. For this to occur, managers need a clear understanding of how performance appraisal can help the organization (Chelladurai, 2006).
Also, such appraisals can be used as feedback to individuals to influence and enhance subsequent performance. It has been argued that the results of performance appraisal of all employees provide insight into the effectiveness of the HR system, the developmental and training needs for the whole organization, and the setting and articulating of organizational goals for the employees (Chelladurai, 2006). Performance appraisals cannot be performed efficiently unless the line manager or person conducting them has the interpersonal interviewing skills to provide the feedback to people being appraised (Prowse, 2009).
Then, performance evaluation is also a systematic process to evaluate the performance of an employee after a certain period. Performance appraisal is a process that identifies, assess and develops employee performance to meet employees and organizational goal. It typically involves measuring how well an individual employee is doing their job against a set of criteria. It also helps to judge who needs promotion, training and so forth. Performance appraisal also influences other HR practices such as recruitment and selection, training and development, compensation, and employee relations. Performance appraisal is seen primarily as helping an individual improve their performance in their current job. It frequently revolves around a formal appraisal structure (Wright, 1998).
According to Delery and Doty (1996), primarily evaluations are based on two types: results-based and behavior-based. The latter puts emphasis on the specific behaviors that best match the job while result-oriented appraisals focus on the results of those behaviors. Result-oriented appraisal system gives incentives to employees on completion of their performance objectives. Delery and Doty (1996) found a significant positive relationship between result-oriented evaluation and organizational performance. Therefore, evaluation results must be communicated to the employees timely so that the employee himself and the organization can take corrective measures to improve performance as well as employee satisfaction.
Miller and Wheeler (1992) found that the lack of meaningful work and opportunities for promotion significantly affected employees’ intentions to leave an organization. Organizations were able to improve their employees’ retention rate by adopting job enrichment programs and enhancing their advancement opportunities. Besides promotion opportunities, the evaluation criteria used in the promotion and reward system also had significant effects on employees’ turnover intentions (Quarles, 1994). Ineffective performance appraisal and planning systems contributed to employees’ perceptions of unfairness, and they were more likely to consider leaving the organization.
Internal promotion; the availability of career possibilities within the firm tends to promote a higher degree of organizational commitment among employees (Guest, 1997) who perceive career possibilities with the firm. Additionally, an emphasis on internal promotion is likely to provide a sense of fairness and justice among the employees who note that organizational tenure is valued in the company.
Remuneration is a feature of Human resource management. As De Cieri and Kramer (2008, p. 62) state, the pay system has an important role in implementing strategies within an organization. The way the organization pays the employees also affects the quality of their work, their attitude towards customers, and their willingness to be flexible and learn new skills (Milkovich, Gerhart, and Hannon, 1991). Moreover, De Cieri and Kramar state that a high level of remuneration and benefit relative to that of competitors can ensure that a company attracts and retains high‐quality employees (2008, p. 62). Pay may be one-way workers measure whether the time they spend and the effort they put into working are worthwhile.
Using discrepancy theory, Rice, McFarlin, and Bennett (1989) find that workers’ satisfaction is a function of what they perceive their contributions and job requirements are and what they should receive in return. Thus, employees will feel satisfied with their pay if what they are receiving equates to the time, energy, and effort they contribute, with relation to what other workers receive. If they feel that their efforts and contributions exceed the rewards from the organization and job, especially in pay, dissatisfaction may occur (Ryan and Sagas, 2009). In summary, we can say that finding well-designed employee benefit packages are effective tools for attracting, motivating, and retaining employees. Compensation also refers to all types of pay or rewards going employee and arising from their employment (Dessler, 2008). Remuneration is very much important for employees because it is one the main reasons for while people work. Compensation also influences employees’ living status in the society (Aswathappa, 2008).
2.3 Employee Retention
Employee retention refers to the different policies and practices that let the employees stick to an organization for a long time. Research shows that employees leave organizations out of frustration and constant friction with their superiors or other team members. In some cases, low salary, lack of growth prospects and motivation compel an employee to look for a change. Therefore, there is a must for the management to try to use all strategies to retain those employees who are important for the system and are known to be contributors because it is a loss for the company when its core employees quit their job. Employee retention takes into consideration the various measures taken to let an individual stay in an organization for the maximum period. Besides, employee retention techniques go along with motivating the employees for them to enjoy their work and avoid shifting from one job to another.
People need to feel that their contributions to the organization are valued (Taylor, 2002). As Taylor stated above, to keep employees in the company, they need to feel that they are part of the organization. The management needs to set some new retention policies to improve retention of employees. Thus, competitive salaries, comprehensive benefits, incentive programs, and similar initiatives (Taylor, 2002). Besides, pay and financial incentives also work to increase employees’ commitment, and satisfaction.
Howard and et al. (2007) also mentioned the following thirty-two methods of employee retention for organizational success: ‘Link pay and performance, succession management program, career planning services, employee retention as a corporate objective, organization’ s vision/mission, training and development opportunities, improving compensation, specialized retention plans, new-hire orientation, monetary rewards’ (p. 22).To sum up, one can see that today’s Human Resource Management encounters a lot of challenges for retaining core staffs in the company among which employee retention strategies must gain a special focus.
2.4 Relationships between HRM Practices and Employee Retention
From the literature review, it is recognized that human resource management plays a key role in employee retention (Irshad, M. 2011). Researchers find that human resource management practices in compensation and rewards, job security, training and developments, supervisor support culture, work environment, and justice can help to reduce absenteeism, employee retention, and better-quality work. Then, it becomes quite impossible to separate Human resource management practices to employee retention because of the key role that they play in the organization’s performance. Thus, a study by Chew et al. (2005) reveals that organizations with a value profile of either elite or leadership, complemented with strategic HRM effectiveness will enhance financial performance.
Huselid (1995) identified a link between organization-level outcomes and groups of high-performance work. Instead of focusing on a single practice (for example recruitment and selection), the simultaneous use of multiple sophisticated human resource practices was evaluated. He concluded that the sophistication of those practices was significantly related to turnover, organizational productivity, and financial performance.
Delery and Doty (1996) in their research affirmed that the existence of formal or informal policies has many strategic implications that should affect employee retention. Some empirical works have consistently found that use of effective human resource management initiatives enhances employee retention and productivity of an organization. Specifically, selective recruitment and training procedures, working environment, Labour-management participation programs, and performance appraisal, promotion, and incentive compensation systems that recognize and reward employee merit have all been linked with valued firm-level outcomes (Huselid, 1995).
Fitz-enz (1990) recognized that only one factor is not responsible in the management of employees’ retention, but there are several factors that impact employee retention which needs to manage congruently, i.e., compensation and rewards, job security, training and developments, supervisor support culture, work environment and organization justice, etc. Accordingly, organization utilizes an extensive range of human resource management factors influence in employee commitment and retention (Stein, 2000). The following section will put forward theories and literature on the relationship between human resource practices and employee retention.
2.4.1 Recruitment and Selection/Retention
Employee retention stems from the employment process, which comprises of employment processes (recruitment, selection and placement) predetermines the effectiveness of retention strategy. Employee retention can be successful if it is positively linked to the processes and practices of recruitment, and the sources from which job candidates are recruited. Recruitment practice and empirical research suggest that employees may differ in their propensity to quit depending on the source from which they are recruited. Two rather different approaches to recruitment identified by Wanous (1975) as cited in George Mucai et al. (2015) are the “traditional” approach that suggests that the ultimate goal of recruitment is to attract a maximum number of applicants to the recruiting organization. In the traditional approach, providing incomplete or even biased information about the job and/or the organization may be an acceptable means of reaching this goal.
Good employee retention is in part a result of a good “fit” between a company’s workplace culture, its way of doing business and the qualities that it espouses as valuable and the interests, character, and motivations of the individuals that exist within it. Regarding recruitment, companies should, therefore, emphasize on, not only evaluating formal qualifications and job-relevant technical ability, but also more general types of qualifications and dispositions on the part of the recruit. Employee retention should be linked to an effective recruitment and selection process while recruiting job candidates for the organizations, HR managers or recruitment agencies should consider job previews as an integral part of the recruitment. Job previews, when honestly conducted, have the potential of reducing early turnover of employees since such employees would have had first-hand knowledge of what the job entails and the conditions of service, particularly the base salary and other financial incentives during the job preview. Though realistic recruitment and job-fit approaches provide an important element for both job satisfaction and employee retention, they must be combined to other motivational variables to form a comprehensive retention strategy that can reduce high turnover rates effectively (Hughes, J. C. 2008).
2.4.2 Training and Development/Retention
Training is defined ‘as the planned intervention that is designed to enhance the determinants of individual job performance’ (Atif et al. 2011). The organization suffers in quality and implementation due to lack of training. The concept of training came from changes gained by learning, although change is necessary for human development. In this promising organizational reality for survival, a company must be equipped with characteristics of adaptability, flexibility, and permanence. Training is a part of various HRM practices, which are used for retention and development of employees due to these different kinds of training given to employees, like on-the-job training, vocational training, general and specific training, etc. (Hocquet, 1999).
Then, Messmer (2000) found that one of the important factors in employee retention is an investment in employee training and career development. A company always invests in the form of training and development on those workers from whom they expect to return and give output on its investment. Tomlinson (2002) forwarded the view that organizations can keep the leading edge in this competitive world by having their employees well trained in the latest technologies. Garg and Rastogi (2006), explained that in today’s competitive environment feedback is very essential for organizations from employees and the more knowledge the employee learn, the more he or she will perform and meet the global challenges.
2.4.3 Performance Evaluation and Retention
Performance evaluation is a systematic process to evaluate the performance of an employee after a certain period. Therefore, it typically involves how well an individual employee is doing their job against a set of criteria. It also helps to judge who needs promotion, training, to be retained as a key resource of the company and so forth. Thus, the relationship between performance evaluation and retention has great importance for the organization. The reason is that the fair performance appraisal results would give a clear picture of how well the employee is performing in the organization. Thus, a fair appraisal will give the employees much more motivation for their job, and this is an efficient tool for employee retention. Numerous studies showed how high employee’s involvement is can relate to the intention of leaving an organization (Arthur 1994). Lacking opportunities to learn and self-development in the workplace can be the key to employee dissatisfaction, which leads to a turnover. Other studies also indicated that employees would remain in their organization if he or she has a good relationship with the people he or she is working around with (Clarke 2001). Organizations, therefore, provide team-building opportunities, where interaction and discussion can be carried out not only within but also outside their working hours. This is why managers today must take care of their employees’ personal feelings toward the job and satisfaction levels from their working conditions, superiors, and peers, as these are the keys to ensure employee retention.
2.4.4 Promotion and Retention
Pergamit and Veum (1999) in their study found a close and positive correlation between promotions and job satisfaction and which in turn helps in retaining employees. Research by Meyer et al., (2003) has also shown internal career development of employees is often the best predictor of an employee’s effective commitment. Prince (2005) argued that talented employees are required for maintaining a competitive advantage, and employees want career growth opportunities to develop and rise in their career ladder. Such plans include advancement plans, internal promotion and accurate career previews at the time of hiring.
2.4.5 Compensation and retention
Many studies have pointed out the impact of employee compensation, rewards and employee relation on turnover and retention (Becker and Huselid, 1999). They found that effective compensation systems can promote employees’ commitment to the organization; improve productivity and employees’ willing to stay in the organization. According to Higginbotham (1997), high salaries are not essential, but “good” and “fair” salaries showed a strong correlation with an intention to stay, indicating that as long as the compensation is competitive, financial rewards are not the primary factor in retention. High technology employees do not work normal office hours but work at a pace that invites burnout. Time off, according to Kochanski and Ledford (2001), is more important than any other indirect benefit in predicting retention. High technology employees seem to care less about how benefits are administered than about the value of benefits. As mentioned above, a competitive financial package is a requirement for high technology employees. Also, DeYoung (2000) supported that the latest retention benefits are of an environmental and personal nature. For instance, luxury automobiles for anyone who has surpassed their goals, pets in the office because high technology workers spend a lot of time away from home, playrooms and quiet rooms to improve teamwork and reduce stress and on-site gyms for an employee to work out their stress.
2.4.6 Organizational Commitment and Retention
Employee commitment is one of the factors of HRM policy that bind an individual to a course of action that is relevant to a particular target. Thus, Organizational commitment is also defined regarding the strength of an individual’s identification with and involvement in a particular organization (Porter et al., 1974). When commitment is high, it means that an employee’s values are aligned with the organization and that he or she wants to do what is best for the organization. Robins S.P. (2005, p.79) defined organizational commitment as ‘a state in which an employee identifies with a particular organization and its goals, and wishes to maintain membership in the organization’. Further, he compares and contrasts job involvement and organizational commitment. High job involvement refers to identifying with one’s specific job, while high organizational commitment means identifying with one’s employing organization.
Organizational commitment is extended to which employees recognize their organization that they will contribute to the development (Cooper, 2006). The latter pointed that commitment is a process of recognition when an individual is committed to an organization, they trust and follow the organization’s objective, principles and mission, and will more willing to stay in the organization. Organizational commitment is also considered as a feeling of positive emotions by employees toward their work, find their work to be personally meaningful, consider their workload to be manageable, and have hope about the future of their work (Nelson, D. and Simmons, 2003).
To become fully engaged is to be involved in and enthusiastic about the work, there are two aspects of employee commitment, which are cognitive commitment and emotional commitment. Cognitive commitment is the extent to which a worker is aware of their mission at work and their role in the organization. Emotional engagement/physical engagement is the extent to which the worker empathizes with others at work, and connects in a meaningful way with their co-worker (Falcone, 2006). According to previous studies, employee engagement has a positive effect on organizational performance outcomes, such as employee retention (Kgomo, 2010).
2.4.7 Organizational Trust
Trust in an organization refers to the relationship established among the employees and organization based on messages regarding organizational expectations and perception of employees of the measurements of organization managers. Organizational trust is of great importance to the success of organizations. Trust is an important issue for most organizations as it can have great advantages for the organization. Organizational trust is defined as psychological state providing feedback of how employees perceive the problems in the situations in which the organization is endangered (Vakola and Bouradas, 2011).
Nowadays, the management based on trust is a new expression of old thoughts and its position in observed well in current relations and using its mechanisms can be effective in achieving good individual and organizational results. The decision-makers believe that trust can lead to collaboration among people, groups, and organizations. Today, organizations attempt to search new solutions to improve participation among people, groups and use their effects (Jones and George, 1998). Thus, the process of organizational trust creation in public organizations is the responsibility of qualified managers and leaders. The role of managers and leaders in reforms in the organization is of great importance. For successful feedback and observation of advanced organizational behavior, we need a high level of interpersonal trust among the co-workers in an organization (Bakiev, 2013). In a new era, responding the basic needs of employees in each organization is on priority, and one of the most important needs of employees in an organization is establishing trust. High level of trust in an organization creates low costs of evaluation and other control mechanisms (Khanifar et al., 2009).
2.4.8 Organizational Inclusion and Retention
Employee’s engagement towards organization supports inclusion. The researchers argue that the decision taken by the organization in which the employees were involved in the decision-making process. The employees own the outcomes of the decisions because they know they were also part of the decision during the decision-making. And in this way, the employees feel more comfortable. It is clear that human resource practices always pay a very critical role while developing employee’s behavior and attitude in an organization. Thus, inclusion can be described in a variety of ways. Mor-Barak and Cherin (1998), for example, see it as the degree to which individuals feel part of critical organizational processes, indicated by their access to information and resources, work group involvement, and ability to influence decision-making. Now the concept of inclusion is taken as a modern tool to manage an organization in diverse environments. Many researchers find out the close link between diversity and inclusion as well.
Van Knippenberg (2000), in his research, stated that employee becomes more loyal and stays in the organization when they identify themselves within a group and contribute to the performance as a group. This suggestion relies on work performed by Locke and the goal setting theory he developed. The goal is team performance and the individual feeling part of the group. The author furthermore describes another framework manager can use when communicating with its employees to know that the cause of retention consists of nine different predictors; organizational processes, role challenges, values, work, life balance, information, stake/leverage/recognition, management, work environment and product or service.
Employees who are valued and they feel esteemed will take an active part in the organization goals, show productive behavior, workplace and increased job involvements, which decrease absenteeism and turnover intention rates. The leadership style can be revealed by formal and informal acknowledgment. In organization employees respond to admire, support and encouragement, no matter the environment is a profession or personal (Silbert, 2005). To ensure accurate performance appraisal management leader must discuss the progress with employees outside the time of formal evaluation process. They assist workers to find the right place in the firm, not only move in the hierarchy next position (Freyermuth, 2007).
3. Research Methodology
Research methodology can be referred to as the theoretical analysis, or documented set of procedures or guidelines for one or more phase of analysis or design made applicable to field discipline. Therefore, this methodology chapter will discuss the methodological issues connected to the success of this research. The current study is an attempt to find out the relationship between HRM practices and employee retention through organizational commitment, trust, and inclusion at Huawei in Senegal by collecting data and running statistical tools. This study follows many research philosophies named as positivism. It is also an epistemological position that advocates the application of the methods of the natural sciences to the study of social reality and beyond (Bryman et al., 2007). The term stretches beyond this principle, through constituent elements vary between authors. However, positivist is also taken to entail the following principles:
The purpose of the theory is to test a hypothesis and thereby allow explanations of laws to be assessed (the principle of deductivism). Science must (and presumably can) be conducted in a way that is value free (i.e., objective). There is a clear distinction between scientific statement and normative statements and a belief that the former is the true domain of scientists.
Certain variables have been selected to check recruitment and selection practices at Huawei company in the Senegalese and Chinese context, among which two are dependent variables that are, recruitment and selection and others are independent variables, like environmental influence like; technological, social, political, cultural, and interview, etc.
3.1 Research Conceptual Model
Figure 1: Research Conceptual Model proposed by the author based on literature
3.2 Findings and Discussion
Data analysis is a body of methods that help to describe facts, detect patterns, develop explanations and test hypothesis. In other words, this is about the measurement of analysis and description of population and sample used to conduct this study and do quantitative analysis. Data collection process is also explained through descriptive statistics given details based on data collected during the research. Besides, factor analysis and reliability test, descriptive statistics, correlation analysis of the independent and dependent variables are examined. And the last section of this paper addresses the results of testing the proposed research hypotheses through multiple linear regression and variance (ANOVA).
3.3 Factor Analysis and Reliability Testing
Factor Analysis is a statistical approach that can be used to analyse interrelationships among a large number of variables. The purposes of factor analysis are to reduce data to a smaller set of summary variables and explore theoretical structure (Summaya, 2014). Factor analysis was used in the current research to assess the discriminate validity of the questionnaire. In this research, factor analyses were conducted for the items related to HRM practices, organizational commitment, trust, inclusion, and retention. We have performed Cronbach Alpha and factor loading tests to check the reliability and validity tests of the used scales. According to (Bryman, 2015) the acceptable value for alpha should be higher than or equal to 0.7 and all the constructs in this research have alpha values above the required value of 0.7 showing the reliability of overall instruments. Likewise, the factor loading of all individual items for all constructs are given, and the cut off value is 0.5 to have a valid measurement item. Therefore, the values for all constructs are given in the following tables.
Table 1: Recruitment and selection
|Items(Training &Development)||Factor Loading||Cronbach’s Alpha|
|1. I have training opportunities to learn and grow||0.794|
|2. I get training I need to do my job well||0.818|
|3. I get the training from the Company for my next promotion||0.801||0.944|
|4. Employees’ individual needs are assessed irrespective of their origin to enable full participation||0.734|
|5. My company provides cultural sensitivity courses/workshops for employees||0.776|
|6. Available training match with my job||0.776|
In the above table, there are five items for Recruitment and Selection construct, which endeavour to measure the perception of employees to show whether the recruitment and selection at Huawei are e ffective. Alpha value for this five-item construct is 0.945, which is far away above the required value of 0.7 and the factor loading of all items are also above the cut off value of 0.5.
Table 2: Training and Development
|Factor Loading||Cronbach’s Alpha|
|1. I have training opportunities to learn and grow||0.794|
|2. I get training I need to do my job well||0.818|
|3. I get the training from the Company for my next promotion||0.801||0.944|
|4. Employees’ individual needs are assessed irrespective of their origin to enable full participation||0.734|
|5. My company provides cultural sensitivity courses/workshops for employees||0.776|
|6. Available training match with my job||0.776|
The results from the table above show that the alpha value for and factor loading of all items for training and development construct with six measurement items in all. The latter and their combined alpha value are 0.944, whic h shows the high reliable scale for measuring training and development practices at Huawei in Senegal. Besides, all the factor loadings are above the required cut off value of 0.5.
Table 3: Performance evaluation
|Items( Performance Evaluation)||Factor Loading||Cronbach’s Alpha|
|1. The performance appraisal is fair||0.785|
|2. There is a formal & written performance Appraisal system||0.795|
|3. I am informed that how my performance is evaluated||0.854||0.952|
|4. I receive feed back of performance evaluation results about myself||0.847|
|5. Performance Appraisal is done by the supervisor||0.797|
|6. Appraisal ratings are focused on the individual’s performance, not personality||0.769|
Table 4: Promotion Practices
|Items( Promotion Practices)||Factor Loading||Cronbach’s Alpha|
|1. Huawei Company has a written promotion policy||0.796|
|2. Job promotions are fair and equitable||0.811|
|3. The company promotes employees on the basis of seniority.||0.817|
|4. The company promotes employees on the basis of ability.||0.855|
|5. The company promotes employees on the basis of both seniority and ability.||0.837||0.974|
|6. Employees are satisfied with the promotional basis.||0.860|
|7. The company provides promotion in the form of better pay &wages.||0.870|
|8. The company provides promotion in the form of enhanced responsibilities, status &prestige.||0.806|
|9. The objective of the company on employee promotion is for motivation.||0.814|
According to the results from the table above, the factor loading values of all items for performance evaluation construct are reliable. Thus, the factor loading includes six items with their combined alpha value 0.952. This shows high reliable scale and all factor loadings are above the required cut off value.
The results from the table above show the alpha value and factor loadings of all items in Promotion practices. This construct is made of nine items, and their combined alpha value is 0.974 showing high reliable scale for measuring promotion at Huawei in Senegal. Besides, all the factor loadings are above 0.5.
Table 5: Remuneration Practices
|Items( Remuneration practices)||Factor Loading||Cronbach’s Alpha|
|1. Employees are paid same wages when performing similar duties.||0.857|
|2. Current remuneration practices are designed to be fair and non- discriminative.||0.880|
|3. Rewards are based on employee performance||0.415|
|4. Salaries of all employees are based on their previous experience.||0.713||0.913|
|5. My annual raise is significant and satisfactory.||0.754|
|6. Available benefits are appropriate for my needs||0.751|
|7. If I do work well, I can count on earning more money (bonuses & commissions)||0.750|
|8. My salary is fair for my tasks, duties and responsibilities of my job||0.759|
|9. The company provides a nice work environment||0.712|
|10. The company provides flexible work hours to accommodate my personal needs||0.767|
The results from the table above show the alpha value and factor loadings of all items in Promotion practices. This construct is made of ten items, and their combined alpha value is 0.913 showing high reliable scale for measuring promotion at Huawei in Senegal. Besides, all the factor loadings are above 0.5.
The results from the table below show the alpha value and factor loadings of all items in organizational commitment. This construct is made of eighteen items, and their combined alpha value is 0.979 showing high reliable scale for measuring employees’ commitment at Huawei in Senegal. Besides, all the factor loadings are above 0.5.
Table 6: Organizational Commitment
Table 7: Organizational trust
|Items (Organizational Trust)||Factor Loadings||Cronbach’s Alpha|
|1. If I have a problem at work, I know my coworkers will try to help me out.||0.923|
|2. The people I work with pull together to get the job done||0.922|
|3. I feel that my coworkers and I will be treated fairly.||0.945||0.980|
|4. I feel that my ideas are valued by this company.||0.930|
|5. This company is like a second family to me||0.910|
In the above table, there are five items for organizational trust construct, which endeavour to measure the perception of employees to show the scale of trust at Huawei in Senegal. Alpha value for this five-item construct is 0.980, which is far away above 0.7 and the factor loading of all items are also above 0.5.
Table 8: Work Group Inclusion
Items (Work Group Inclusion)
|1. At Huawei, people have equal employment opportunities and are treated respectfully regardless of their differences (race/ethnicity, color, gender, age, religion…etc.)||0.925|
|2. I feel included and respected by other workmates in this company.||0.913|
|3. My supervisor gives feedback that helps me to improve my work performance.||0.917||0.976|
|4. In my company managers and subordinates entice very close relationship||0.906|
|5. My company makes good use of employees’ suggestions and recommendations for the sustainability of the company||0.904|
In the above table, the work-group inclusion is a construct of five items in which the results measure the degree to which employees at Huawei in Senegal are deeply involved in the organization’s main activities. Thus, the alpha value for this five-item construct is 0.976 which is far away above 0.7, and the factor loading of all items are also above 0.5.
Table 9: Employee retention
The results from this table are about the independent variable which is employee retention, and it is being measured by using eighteen item scale. The results have shown that the alpha value of this construct is also highly reliable with 0.991 of alpha value and therefore all the factor loadings are above the cut off value.
3.4 Descriptive Statistics Analysis
Table 10: Descriptive Statistics
The results from above table show the descriptive statistics of HRM Practices as a whole, then employee retention, organizational commitment, trust, and inclusion. The value of HRM practices as a whole shows the mean value 3.89 and Standard deviation, which is .98. As for employee retention, it shows mean value 4.03 and Std. deviation is 1.35. For organizational commitment, its shows mean value as 3.88 and Std.[G1] deviation 1.23. Organizational trust shows mean value as 4.03 and Std. deviation which is 1.38 and finally, inclusion shows mean value as 4.03 and Std. deviation being 1.42 .
3.5 Correlations Analysis
3.5.1 Correlation (2-tailed)
Pearson product moment correlation is used for finding the degree of relationship between several variables. Two variables are correlated when they tend to simultaneously vary in the same direction. If both variables tend to increase or decrease together, the correlation is said to be direct or positive. When one variable tends to increase and the other variable decreases, the correlation is said to be negative or inverse. Besides, Pearson Correlation Coefficient explains that from [0.2-0.39] as weak, from [0.40-0.59] as moderate, from [0.60-0.79] as strong, and from [0.80-1] as very strong.
In this research, a correlation coefficient measured the strength of linear HRM practices, organizational commitment, trust, inclusion and employee retention. The correlations between these different variables are presented below. First of all, the correlation between the HRM practice of recruitment and selection (Factor 1 ) and employee retention was positive and significant at the 0.01level (2-tailed). Hence the correlation was 0.390 (P=0.000), which supports the hypothesis 1 of this research. Secondly, the correlation between the HRM practice of Training and development (Factor 2) and Employee retention was positive and significant at 0.393 (P=0.000), which supports the hypothesis 2 of this study. The correlation between performance evaluation (Factor 3) and employee retention was 0.431 (P=0.000), a moderate correlation which also supports the hypothesis 3 of this research; the correlation between promotion practices (Factor 4) and employee retention was positive and significant at the 0.01 level (2-tailed), with a coefficient of 0.446 (P=0.000); which is a moderate correlation and therefore supports hypothesis 4; the correlation between remuneration practices (Factor 5) and employee retention was positive and significant at the 0.01 level (2-tailed), with a coefficient of 0.397 (P=0.000), the latter supports the hypothesis 5 of this research; addition, organizational commitment is considered as the mediating variable in the current research, therefore the relationship between organizational commitment (factor 6) and employee retention was positive and significant at the 0.01 level (2-tailed), hence the correlation was 0.733 (P=0.000), the latter is a strong correlation, which supports the hypothesis 7 of this research; the correlation between mediating-moderating variable, which the correlation between organizational commitment and organizational trust and inclusion was respectively positive and significant at 0.01 level (2-tailed), with 0.735 and 0.755. (P=0.000). This proves a strong correlation between the mediating and moderating variables (organizational trust and work-group inclusion). Therefore, this supports the research hypothesis 11.
Table 11: Correlations (2-tailed)
3.5.2 Correlations (1-tailed)
Table 12: Correlations (1-tailed)
The results from the above table, present the correlation of HRM practices as a whole, and employee retention, organizational commitment, trust and inclusion which is significant at 0.01 level (1-tailed). Hence, in the current research, the correlation between HRM practices, as a whole and employee retention is 0.412**(P=0.000). The latter shows that the relationship is positive and significant at 0.01level (1-tailed). In other words, the correlation is moderate, which also supports hypothesis 6 of this study. Besides, the correlation between HRM_WHOLE and the mediating variable of organizational commitment was 0.337**(P=0.000). It also shows that the correlation is positive and significant at 0.01 level (1-tailed). This supports hypothesis 8 of this study. The correlation between the moderating variable of organizational trust and HRM_WHOLE was positive and significant at 0.01 level (1-tailed) and with a coefficient of 0.351**(P=0.000). This supports hypothesis 9 of this research. Finally, the correlation between the second moderating variable Inclusion was also positive and significant at 0.01 level (1-tailed) which has got a coefficient value of 0.347**(P=0.000). Briefly, this supports the hypothesis 10 of the researcher’s current study.
3.5.3 Multiple Linear Regression Analysis
The regression analysis is a statistical tool that allows the research to examine how multiple independent variables are related to a dependent variable. Once these multiple variables related to the dependent variable are identified, the research can take information about all of the independent variables and use it to make much more powerful and accurate predictions about why things are the way they are. In other words, multiple regression analysis shows how identified independent variables exert a significant influence on a dependent variable. This process is also used to test the hypotheses developed in the study because it proves the most accurate interpretation of the independent variables. To predict the goodness-of-fit of the regression model, the correlation coefficient (R) and F change were examined. The table of the regression analysis below shows the positive relationship between independent, dependent and moderating variables.
Table 13: Model Summary
|Model||R||R Square||Adjusted R Square||Std. Error of the Estimate||Change Statistics||Durbin-Watson|
|R Square Change||F Change||df1||df2||Sig. F Change|
|a. Predictors: (Constant), HRM_WHOLE|
|b. Predictors: (Constant), HRM_WHOLE, OC|
|c. Predictors: (Constant), HRM_WHOLE, OC, OT, INC|
|d. Dependent Variable: ER|
The regression results from the table above show that the R-Square for HRM_WHOLE is 0.169 and F change being (0.000). Besides, we entered two other variables such as Organizational and Inclusion, and we found the of R-Square 0.570 and F change being (0.000). This proved that the moderating relationship exists because we found significant F change (0.000) as among predictors and criterion variables. Thus, it shows again that the association among these variables are significant. Moreover, we entered another variable, which is the mediating variable called organizational commitment, and therefore we got the value of R-Square being 0.950 and of which the F change is (0.000). Thus, it justifies that the mediating effect also exists among these variables. Likewise, the value of R-Square change showed that the of predictor variable HRM_WHOLE as 0.169. Then, after entering the two moderating variables: organizational trust and inclusion, we noticed a change in R-Square as 0.400. Finally, after entering the moderating, mediating variables, we got R-Square change as 0.380. However, we found significant F change as among predictors and criterion variables such as (0.000; 0.000 and 0.000) respectively. These results prove again that the association among these variables are significant.
3.5.4 Analysis of Variance
The values in Anova table are derived from the regression model. Hence, the statistical significance of both data analysis is the same. Thus, the ANOVA table gives comparatively an easier and quicker picture.
Table 14: ANOVA
|Model||Sum of Squares||df||Mean Square||F||Sig.|
|a. Dependent Variable: ER|
|b. Predictors: (Constant), HRM_WHOLE|
|c. Predictors: (Constant), HRM_WHOLE, OC|
|d. Predictors: (Constant), HRM_WHOLE, OC, OT, INC|
In ANOVA model against HRM_WHOLE, the value of residual is 486.606; F is 64.436 and Sig value is 0.000. Besides, HRM_WHOLE, organizational trust, and work-group inclusion residual value are 252.187; F value 208.372 and Sig. value is 0.000. Finally, the ANOVA model against HRM_WHOLE, organizational trust, work-group inclusion, and organizational commitment show residual 29.318; F value 1485.341 and Sig value is 0.000.
In Sum, in this ANOVA table, HRM_WHOLE is strongly related to Employee Retention, and the change in F indicates the significance of predictor and criterion variables.
Also, the table below shows the results from different standardized coefficients in which the value of Beta measures the degree to which each predictor variable influences the dependent variable. Commonly, the higher the Beta value is, then the higher the impact of each independent variable is on the dependent variable. Moreover, if the t-value is higher than1.96, which means the relationship among the variables is significant.
Table 15: Coefficients
|Model||Unstandardized Coefficients||Standardized Coefficients||t||Sig.|
|a. Dependent Variable: ER|
As shown in the results of the table above, in standardized coefficients, the value of Beta against HRM practices in a whole is 0.412. In the second shift, the Beta values against HRM practices as a whole and organizational commitment are 0.185, 0.672. Furthermore, in the third shift the beta values for HRM_WHOLE, Organizational commitment, organizational trust, and work-group inclusion are 0.079, -0.006, 0.519, and 0.439 respectively. Comparatively, in the third shift, the results have shown that HRM practices as a whole and organizational commitment bring less change in the dependent variable. As shown in results from this table the T-Value for HRM practices as a whole is 8.027. Then in the next shift, the T-Value for HRM _WHOLE is 4.708, and organizational commitment is 17.112. This shows the relationship is significant because their respective T-Values are higher than 1.96. Finally, in the third shift, the T-Value for HRM_WHOLE is 5.798, but for Organizational Commitment, the t-value is -0.289, which means that there is no relationship at this level, Organizational trust 11.773, and finally for Work Group Inclusion the t-value is 9.648. The latter shows a high relationship among the variables. In the first shift, the Sig. value is 0.000 the P-Value for all is significant. Similarly, for the second shift the Sig values for HRM_WHOLE and Organizational Commitment are 0.000, and 0.000, respectively. Finally, in the third shift, the Sig value for HRM_WHOLE is 0.000(significant), Organizational Commitment 0.773 (no significant relationship exists), organizational trust 0.000 (significant), and Inclusion 0.000 (significant). In the regression model, the variance inflation factor measures the impact of collinearity among variable. When the value of tolerance is equal to 1 or greater than 1, it supports the relationship in the model. Moreover, the value above 1 shows that very good relationship exists. Hence, all variables with linear correlation will have small tolerance. On the other hand, if the value of tolerance is less than 1, then it needs to be investigated further and if the low value of tolerance comes with collinearity and non-significance value.
Table 16: Excluded Variables
|Model||Beta In||t||Sig.||Partial Correlation||Collinearity Statistics|
|a. Dependent Variable: ER|
|b. Predictors in the Model: (Constant), HRM_WHOLE|
|c. Predictors in the Model: (Constant), HRM_WHOLE, OC|
As shown in the table above in which the excluded variables are presented, in the first shift a beta value of organizational commitment 0.672, organizational trust 0.934, Inclusion 0.929 and in the second shift with a beta value of organizational trust 0.904 and inclusion 0.923. In addition, the t-values are: 17.112, 60.536, 57.510, 42.046 and 39.471, respectively. In sum, we observed all values of tolerance such as organizational commitment, organizational trust, inclusion in the first shift are respectively: 0.886, 0.877, and 0.880 and in the second shift the values of organizational trust and inclusion are 0.447 and 0.421.
3.5.5 Confirmatory Factor Analysis CFA
With the aim of confirming the explored factor structure, testing the model and stricter evaluation of the reliability and validity of indicators and scales, the researcher realized the conformity analysis (CFA), which’s input, and output factor weights (with standardized factor weights) are in the following tables and figure. Thus, the indices connected to the output factor structure of model fit indices and their values of acceptance criteria are summarized as follows: CMIN/df should be <5.00, GFI>0.90 AGFI>0.90.
Table 17: CMIN
The results from the table above show the values regarding CFA are provided. The Value of Chi-Square also explains as 6799.474 and sig value is 0.000 that means that it is in acceptance region. Moreover, many researchers explain that the value of Chi-Square/DF is ideal when it is less than 3. Hence, in our current study the value of Chi-Square/DF is 2.296. On the other hand, some of the researchers explained the extended value of Chi-Square/DF to be <5 and consider that values between 2-5 are good for model fit. Along with the Chi-Square and degree of freedom, some other values also explain the model fitness.
Table 18: RMR, GFI
Furthermore, one of the most significant parts is to analyze data with Structural Equation Modelling (SEM). The latter is a very general statistical modeling technique, which is widely used for model fit technique in behavioral and management sciences. SEM can be viewed as a combination of factor analysis and regression or path analysis. SEM is a largely confirmatory, rather than exploratory, technique. That is, researchers are more likely to use SEM to determine whether a certain model is valid rather than using SEM to “find” a suitable model. In the current study, the value of NPAR is 199, CMIN 6799.474, a degree of freedom is 2962, p-value 0.000 and CMIN/DF is 2.296. The value of Root Mean Residual is 0.142, GFI 0.655, AGFI 0.632, and PGFI 0.614. Hence, these values are showing the model it fits.
Figure 2: Structural Model Path Diagram
The analyses above were carried out to answer our research hypothesis and research questions. Therefore, the main objective of this research was to investigate the impact of selected Human resource management practices on employee retention through organizational commitment, trust, and inclusion. First, we discussed the relationship between HRM practices and employee retention, which had various previous research literature. Then, we also discussed the mediating role of organizational commitment and its effect on the relationship between HRM practices and employee retention. Finally, we discussed the role of the effect moderating variables organizational trust and inclusion on the relationship between HRM practices and retention. The model fit and other multiple indices proved that the theoretical framework fit the data significantly. Generally, in previous studies, human resource management practices such recruitment and selection, training and development, performance, remuneration, and promotion, etc. Most of the research focused on the direct impact of HRM practices on retention. As for creating new perspectives, the researcher included some new items like organizational trust and inclusion, which also show the fit in associating them with HRM practices and employee retention.
4. Discussion of the Findings
The literature review with the different theories and the model investigated that Human resource management practices are related to employee retention, and thus, the mediation played by organizational commitment between HRM practices and employee retention had also impact. And, the new added moderating variables of organizational trust and inclusion also showed the relationship between HRM practices and employee retention under organizational commitment mediation. This is also proved by the results of correlation and regression analysis. In our research, we have got all the hypotheses positive and significant with the results shown below.
In this research, a correlation coefficient measured the strength of linear HRM practices, organizational commitment, trust, inclusion and employee retention. The correlations between these different variables are presented below. First of all, the correlation between the HRM practice of recruitment and selection (Factor 1) and employee retention was positive and significant at the 0.01level (2-tailed). Hence the correlation was 0.390 (P=0.000), which supports the hypothesis 1 of this research. Secondly, the correlation between the HRM practice of Training and development (Factor 2) and employee retention was positive and significant at 0.393 (P=0.000), which supports the hypothesis 2 of this study. The correlation between performance evaluation (Factor 3) and employee retention was 0.431 (P=0.000), a moderate correlation which also supports the hypothesis 3 of this research; the correlation between promotion practices (Factor 4) and employee retention was positive and significant at the 0.01 level (2-tailed), with a coefficient of 0.446 (P=0.000); which is a moderate correlation and therefore supports hypothesis 4; the correlation between remuneration practices (Factor 5) and employee retention was positive and significant at the 0.01 level (2-tailed), with a coefficient of 0.397 (P=0.000), the latter supports the hypothesis 5 of this research; in addition, organizational commitment is considered as the mediating variable in the current research, therefore the correlation between organizational commitment (factor 6) and employee retention was positive and significant at the 0.01 level (2-tailed), hence the correlation was 0.733 (P=0.000), the latter is a strong correlation, which supports the hypothesis 6 of this research; the results from the above table present the correlation of HRM practices as a whole and employee retention, organizational commitment, trust and inclusion which is significant at 0.01 level (1-tailed). Hence, in the current research, the correlation between HRM practices, as a whole and employee retention is 0.412**(P=0.000). This shows that the relationship is positive and significant at 0.01level (1-tailed). In other words, the correlation is moderate, which also supports hypothesis 7 of this study.
Besides, the correlation between HRM_WHOLE and the mediating variable of organizational commitment was 0.337**(P=0.000). It also shows that the correlation is positive and significant at 0.01level (1-tailed). This supports hypothesis 8 of this study. The correlation between the moderating variable of organizational trust and HRM_WHOLE was positive and significant at 0.01 level (1-tailed) and with a coefficient of 0.351**(P=0.000). This supports hypothesis 9 of this research. Then, the correlation between the second moderating variable Inclusion was also positive and significant at 0.01 level (1-tailed) which has got a coefficient value of 0.347**(P=0.000). Briefly, this supports the hypothesis 10 of the researcher’s current study. Finally, the correlations between mediating-moderating variable, which the correlation between organizational commitment and organizational trust and inclusion were respectively positive and significant at 0.01 level (2-tailed), with 0.735 and 0.755. (P=0.000). This proves a strong correlation between the mediating and moderating variables (organizational trust and work-group inclusion). Therefore, this supports the research hypothesis 11.
Furthermore, the different results from our research have shown that selected HRM practices such recruitment and selection, training and development, performance, remuneration, and promotion all have a relationship with employee retention. And that is also proved in the theoretical framework and literature review. Also, we also investigated two other relationships, one from HRM practices to employee retention through organizational commitment, which played a mediating role.
Also, the results have also given a positive relationship between selected human resource management practices and employee retention by using SEM. The results of this study are mostly in line with various past research, which showed that HRM practices have a relationship with our mediating variable of organizational commitment (Kgomo, KL, 2010). Therefore, at Huawei in Senegal, managers should keep an eye on these factors, which are paramount important ones for the company sustainable performance. Thus, through the analysis, we can conclude that the recruitment and selection process is very effective at Huawei in Senegal, which proves once again very serious work is done while recruiting new employees. In other words, recruitment and selection is a significant factor in the field of human resource management. Thus, this field is considered as the main gate for employees at the time of entry into the companies. Besides, for growth, effectiveness, and efficiency in HR practices have become the key tools for retaining employees for a long time.
Then, to attract more staff, job advertisement can be posted in different magazines and newspapers. The recruitment quality can be improved by hiring staff from different ethnic groups and multiple experience backgrounds in the process of recruitment. This can enable the organization to produce better performance. Then, come training and development. Most of the respondents to our questionnaire approve that Huawei always provides the needed training to their recruits and keep on promoting quality for better output, and therefore when good training is provided, the employees tend to be more motivated to stay for a long time with the company as it contributes to their career development.
Similarly, for remuneration practice as well, most respondents answered positively to the questionnaire as regards to that it has an enormous impact on employee retention at Huawei. And that is because of salary, bonuses, or commissions tend to be high motivators. In sum, the practices of employee’s remuneration will lead an employee to organizational commitment. Therefore, various studies have found that remuneration has a significant impact on employee retention. To that, we also have performance evaluation that leads to employee retention.
Thus, a plethora of researchers explained that importance of performance evaluation with the field of HR. That is a justification of effective measure for the organizations to build in every aspect of the process of performance evaluation. Hence, our findings explored that there is a dire need for performance evaluation. However, top management of Huawei in Senegal should be directly part of a panel of performance appraisal so that this will improve the perception of a fair system in the entry process. Similarly, the integration in policies of performance appraisal will pay back as the better commitment and retention for the performance of the organization.
All in all, the core objective of this research was to investigate the impact of selected human management practices such as recruitment and selection, training and development, performance evaluation, remuneration and promotion on employee retention through organizational commitment, trust and inclusion in Senegal. From the research results, it is found that all of the selected HRM practices have a significant impact on employee retention and thus, the intervening mediator of organization commitment enhances the relationship between organizational trust and inclusion on retention. However, these selected HRM practices need to be improved for Huawei Company to attain the desired level of employee retention, which would bring eventually positive outcome. The topic of the impact of HRM practices on employee retention has received a great deal of attention from many types of research in the past few years. Thus, several types of research have identified a positive significant relationship between HRM practices and employee retention. It is commonly believed that HRM practice functions and HR managers’ behavior toward employees can enhance or reduce employee’s extra role behavior that leads to the positive or negative outcome of the organization. In this research, the hypothesis put forward that the selected HRM practices have a positive and significant relationship with employee retention through the channel of commitment, trust, and inclusion. The results of this study imply that effectiveness of human resource management practices can lead to high employee retention and thus, sustainable organizational performance. Thus, the findings of this research under the correlation analysis showed that the correlation coefficient measured the strength of linear HRM practices, organizational commitment, trust, inclusion and employee retention. And these correlations results were significant. Top management should take the initiative to implement the human resource policies properly and try to set up better employee retention strategies.
I would like to express my heartfelt appreciation to my Supervisor, Prof. Sunzehou from the School of Management at Wuhan University of Technology for his valuable and tireless support towards my research; I would also express our gratefulness towards all respondents at Huawei for devoting their time to assist us in collecting the data, as well as to all students who participated in this research.
- Amin, A., (2013). The Impact of Employees Training On the Job Performance in Education Sector of Pakistan. Middle-East Journal of Scientific Research, 17(9), pp. 1273-1278.
- Anthony, W. P., Kacmar, K. M. and Perrewe, P. L. (2002) Human Resource Management: A Strategic Approach (4th ed.). Harcourt: Florida.
- Anthony, W., Kacmar, K., and Perrewe, P. (2002). Human resource management: A strategic approach (4th ed.). New York: South-Western.
- Appelbaum Steven H. and Loring Mackenzie (1996) Compensation in the year 2000: pay for Performance? Health Manpower management, Vol.22, No.3, pp.31-39. Crossref
- Armstrong, M. (2006), A Handbook of Human Resource Management Practice, 10th edition, London, pp.6.
- Arthur, J. (1994). Effects of Human Resource Systems on Manufacturing Performance and Turnover. In the Academy of Management Journal. 37:670-87. Crossref
- Aswathappa, K. (2008) Human Resource Management: Text and Cases. Delhi: Tata McGraw-Hill Publishing Company Limited
- Atif A, Ijaz-Ur-Rehman, Abdul Nasir and Nadeem Safwan (2011) Employee Retention Relationship to Training and Development: A compensation Perspective. African Journal of Business Management Vol.5 (7), pp. 2679-2685.
- Bakiev, E. (2013). The influence of interpersonal trust and organizational commitment on perceived organizational performance. Journal of Applied Economics and Business Research, 3(3), 166-180.
- Barney, Jay, (1991). Firm Resources and Sustained Competitive Advantage, Journal of Management, Vol. 17, pp.99 -120. Crossref
- Bassi, L., and Buren, M. V. (1999). Valuing investments in intellectual capital. International Journal of Technology Management 18(5), 414-432. Crossref
- Becker B, Huselid M (1999). An interview with Mike Losey, Tony Rucci, and Dave Ulrich: three experts respond to HRMJ’s special issue on HR strategy in five leading firms, Human Res. Manag.; 38(4):353- 65. Crossref
- Boxall, P. (1996) The Strategic HRM Debate and The Resource-Based View of the Firm, Human Resource Management, Vol.6, No.3, pp.59-75. Crossref
- Bryman A, Bell E. (2007). Business Research Methods [M]. Oxford University Press, USA.
- Bryman A, Bell E. (2015). Business Research Methods [M]. Oxford University Press, USA.
- Carless, S. (2007). Graduate recruitment and selection in Australia. International Journal of Selection and Assessment, 15(2), 153-166. Crossref
- Chan, S., and Kuok, O. (2011). A study of human resources recruitment, selection, and retention issues in the hospitality and tourism industry in Macau. Journal of Human Resources in Hospitality and Tourism, 10(4), 421-441. Crossref
- Chandler, G.N. and G.M. MCEvoy (2000) Human Resource Management, TQM, and Firm Performance in Small and Medium-Size Enterprises, Entrepreneurship: Theory and Practice, Vol.25, No.1, pp.43-58. Crossref
- Chelladurai, P. (2006). Human resource management in sport and recreation (2nd ed.). Champaign: Human Kinetics.
- Chew, Y. (2005). Achieving organisational prosperity through employee motivation and retention: A comparative study of HRM practices in Malaysian institutions. Research and Practice in Human Resource Management, 13(2), 87-104.
- Clarke, K.F. (2001). What businesses are doing to attract and retain employee- becoming an employer of choice. In Employee Benefits Journal.pp. 34-37.
- Cooper, D., and Schindler, P. (2006). Business Research Methods. New York, NY: McGraw Hill.
- Dainty, A. R. J., Bagilhole, B. M. and Neale, . R. H., (1998). Improving the retention of construction professional: A soft HRM approach. Association of Researchers in Construction Management, September, Volume 1, pp. pp-9-40.
- De Cieri, H., and Kramar, R. (2008). Human resource management in Australia: Strategy people performance (3rd ed.). Sydney: McGraw Hill Australia Pty Limited.
- Delery JE Doty DH (1996). Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency and Configurational Performance Predictions, Acad. Manag. J., 39(4): 802-835. Crossref
- Dessler, G. (2008) Human Resource management (11th ed.), Singapore: Pearson Prentice Hall.
- DeYoung, P. 2000. High technology talent perks are ripe for picking. Workspan, vol.43, issue.10, p.28–33.
- P. (2006). Preserving restless top performers: Keep your top performers engaged so they don’t jump ship once job opportunities arise. HR Magazine. [Online]. Available: http://www.allbusiness.com/humanresources/workforcemanagementhi ring/8749791.html
- Fitz-enz, J. (1990). Getting And Keeping Good Employees. In Personnel. 67(8): 25-29.
- (2007). Retaining Employees in a Tightening Labor Market, RSM McGladrey. Website: www.cfo.com/whitepapers/index.cfm/displaywhitepaper/10308654?topic id=10240327 – 22k –
- Garg, P. and Rastongi, R. (2006). New model of job design motivation employees Performance. Journal of Management.
- George Mucai, Esther Wangithi and Agnes Njeru (2015) Relationship between Strategic Recruitment and Employee Retention in Commercial Banks in Kenya. International Journal of Business Administration Vol. 6, No.1. pp.87
- Guest, D. E., (1997). Human resource management and performance: a review and research agenda. The International Journal of Human Resource Management, 8(3). Crossref
- Higginbotham, J. S. 1997. The satisfaction equation. Research and Development, vol.39, issue.10, p.1-9.
- Hocquet L (1999). Vocational training as a force for equality? Training opportunities and outcomes in France and Britain. Int. J. Manpower, 20(3/4): 231-253. Crossref
- Hoekstra, H. A., (2011). A career roles model of career development. Journal of Vocational Behavior, 78(2), pp. 159-173. Crossref
- Howard, Ann, Louis, Liu, Richard, Wellins S. and Steve William. (2007). Employee Retention in China 2006-2007: The Flight of Human Talent (Web Document) www.ddiworld.com/…/employee-retention-in-china).
- Hughes, J. C. (2008). Talent Management; A Strategy for Improving Employee Recruitment, Retention and Management within Hospitality Organizations. Journal of Contemporary Hospitality Management Education.
- Huselid MA (1995). “The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance”, Acad. Manag. J., 38(3): 635-72. Crossref
- Ihuah, P. W., (2014). A Review of Soft and Hard Approaches of Human Resource Management and the Success of Real Estate Development in Nigeria. Journal of Business Management and Economic Development, April, 1(1), pp. pp-16-23.
- Irshad, M. (2011). Factors affecting employee retention: Evidence from literature review. Abasyn Journal of Social Sciences, 4(1), 84-102.
- Jones, G., and George, J. (1998). The experience and evolution of trust: implications for cooperation and teamwork. The Academy of Management Review, 23(3), 531-546.
- Kgomo, K.L. Employee engagement model facilitating agent retention in the contact centre industry, ‖ Ph.D. dissertation, Faculty of Management Sciences, Tshwane University of Technology, South Africa, 2010.
- Khanifar, H., Moghimi, M., Jandaghi, Gh., and Zarvandy, N. (2009). Analysis of Relation between Elements of Trust and Organizational Commitment of Personnel (social welfare organization of Qom state and education organization of Qom state). Journal of public Administration, 1(2), 3-18.
- Kochanski, J. and Ledford, G. 2001. “How to keep me” – retaining technical professionals. Research Technology Management, vol.44, issue.3, p.31-38. Crossref
- Augustine A. and Mary C. Wilson, (1994). Human Resource Systems and Sustained Competitive Advantages: A Competency -Based Perspective, Academy of Management Review, Vol.19, pp.699-727.
- Mathis, Robert L. and John H. Jackson (2003) Human Resource management, 10th Edition, Cincinnati, OH: South- Western College Publishing.
- Megharaja, B. (2014). The effectiveness of Training and Development in Banking Sector- A Case
- Messmer, M. (2000). Orientations programs can be key to employee retention. In Strategic Finance. 81 (8):12 -15.
- Meyer, John, Laryssa Topolnytsky, Henryk Krajewski and Ian Gellatly (2003). Best Practices: Employee Retention. Toronto: Tomson-Carswell.
- Milkovich, G., Gerhart, B., and Hannon, J. (1991). The effects of research and development intensity on managerial compensation in large organizations. The Journal of High Technology Management Research, 2(1), 133-150. Crossref
- Miller, J. G. and Wheeler, K G. (1992), ‘Unraveling the mysteries of gender differences in intentions to leave the organization’, Journal of Organizational Behavior, Vol.13, No.5, pp.465- 478. Crossref
- Ming, P. X., Zivlak, N. and Ljubicic, M., (2012). Labour turnover in apparel retail chains in China. International Journal of Industrial Engineering and Management, 3(1), pp. pp-9- 14.
- Mondy, R. W. and Noe, R. M. (2005) Human Resource Management (9th ed.). Pearson Education: New Jersey.
- Mor-Barak, M. E. & Cherin, D. A. (1998). A tool to expand organizational understanding of workforce diversity: Exploring a measure of inclusion-exclusion. Administration in Social Work, 22(1), 4764. Crossref
- D and B. L. Simmons, ―Health psychology and work stress: A more positive approach, ‖ in Handbook of Occupational Health Psychology, J. C. Quick and L. E. Tetrick, Eds. Washington D.C.: American Psychological Association, 2003, pp. 97-119.
- Noe, R. A. (2008) Employee Training and Development. McGraw-Hill Irwin.
- Osemeke, M., (2012). The Impact of Human Resource Management Practices on Organizational Performance: A Study of Guinness Nigeria Plc. An International Journal of Arts and Humanities, February, 1(1), pp. pp-79-94.
- Pergamit, M. R. and Veum, J. R. (1999), “What is a promotion?” Industrial and Labor Relations Review, Vol. 52 No. 4, pp. 581- 601. Crossref
- Phillips larry and Mark A. Fox (2003) Compensation Strategy in Transnational Corporations, Management Decision, 41/5
- Porter, L.W., Steers, R.M., Mowday, R.T., and Boulin, P.V. (1974), ‘Organizational commitment, job satisfaction, and turnover among psychiatric technicians’, Journal of Applied Psychology, Vol.59, pp.603-609. Crossref
- Prince, B.J. (2005). Career-focused employee transfer processes. Career Development International, 10(4), 293-309. Crossref
- Prowse, P. (2009). The dilemma of performance appraisal. Measuring Business Excellence, 13(4), 69-77. Crosref
- Puri, N., (2013). Retail Marketing in the New Millennium: Emerging Issues and Trends. Journal of Business Management and Social Sciences Research, May, 2(5), pp. pp-61-70. Walsh K, Taylor M (2007). Developing in-house careers and retaining management talent, Cornell Hotel and Restaurant Administration Quarterly, 48 (2): 163-82.
- Quarles, R. (1994), ‘An examination of promotion opportunities and evaluation criteria as mechanisms for affecting internal auditor’ Journal of Managerial Issues, Vol.6, No.2, pp.176- 194.
- Rice, R., McFarlin, D., and Bennett, D. (1989). Standards of comparison and job satisfaction. Journal of Applied Psychology, 74(4), 591-598. Crossref
- Ryan, T., and Sagas, M. (2009). Relationships between pay satisfaction, work-family conflict, and coaching turnover intentions. Team Performance Management, 15(3/4), 128-140. Crossref
- Silbert, L.T. (2005). The effect of Tangible Rewards on Perceived Organizational Support. Management Sciences. Website: uwspace.uwaterloo.ca/bitstream/10012/872/1/lsilbert2005.pdf.
- Stein, N. (2000). Winning the war to keep top talent: yes you can make your workplace invincible. In fortune. 141(11):132-38.
- Storey, J., (ed.) (1989) New Perspectives on Human Resource Management, London: Routledge.
- Storey, J., and Sisson, K. (1993). Managing human resources and industrial relations. Milton Keynes: Open University Press.
- Storey, J, Salaman, G. and Billsberry, J., (2005). Strategic Human Resource Management: Defining the Field.
- Study of SBI. International Journal of Economic and Business Review, Volume 2 (Issue9), 152-158.
- Begum (2014). A Study On the Impact of Selected Human Resource Management Practices On Organizational Citizenship Behaviour In Commercial Banks. Unpublished Dissertation at Wuhan University of Technology. PhD.
- A. (2011). HRM Practices of an International Retailer in Malaysia: Comparing the Perceptions of Subordinates and Supervi. Asian Journal of Business and Accounting, 4(2), pp. pp-119-135.
- Taylor, C. R. (2002) Focus on Talent, Training and Development, December 2002, 26- 31(J).
- Tomlinson, A. (2002). High Technology workers want Respect. Survey Canadian Human Resources Reporter, vol. 15, issue 3, and 2 .
- Truss, C. et al., (1997). Soft and Hard models of Human Resource Management. Journal of Management Studies, January, 34(1), pp. pp-53-73. Crossref
- Tzafrir, S. ―A universalistic perspective for explaining the relationship between HRM practices and firm performance at different points in time,‖ Journal of Managerial Psychology, vol. 21, no. 2, pp. 109-130, 2006. Crossref
- Ulrich, D. and Lake, D. (1990). Organizational Capability: Competing from Inside Out, New York: John Wiley and Sons.
- Vakola, M., Bouradas, D., and Nikolaou, I. (2011). The role of silence on employees’ attitudes “the day after” amerger. Emerald Group Publishing Limited, 40(6), 723-741. Crossref
- Van Knippenberg, D. (2000), Work motivation and performance: a social identity perspective, applied psychology; an international review.
- Wright Allan (1998) Counselling Skills: Part II- Making Sense of Performance Appraisal, Coaching and Mentoring, Industrial and Commercial Training, Vol.30, No.5, pp.176-178. Crossref
- Wright, P. M. and Nishii. L. H. (2005) Strategic HRM and Organizational Behaviour: Integrating Multiple Levels of Analysis. Working paper series, S.o.I.a.L.R.CU, (ed).