Impact of High Commitment Human Resource Management Practices on Employee Engagement: Evidence from Private and State Commercial Banks of Sri Lanka

Abstract

This study explores the impact of High Commitment Human Resource Management Practices on Employee Engagement in selected state and private commercial banks in Sri Lanka. The main objective of this study is to identify the relationship between High Commitment HR practices such as Performance Appraisal, Compensation, Career Development and Employee Engagement in the selected state and private commercial banks of Sri Lanka. The sample of this study includes two private commercial banks and two state commercial banks in Sri Lanka. A quantitative approach based survey in form of close ended structured Five Point Likert-scale questionnaires were used to obtain the responses from executive bank employees. The collected data were analyzed using SPSS software version 20. In order to test the hypotheses of the study the correlation, regression analysis and multiple regression analysis were used. The statistical results of the study reveal that Performance Appraisal, Compensation and Career Development are significant predictors of Employee Engagement. The outcome of this study may help the policy makers in the banking sector to draft HR policies to improve their service towards better customer satisfaction and to gain competitive advantage which can drive the banks towards profitability and favorable business outcomes.