Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Research Article: 2020 Vol: 23 Issue: 4

A STITCH IN TIME SAVES NINE; UNDERSTANDING DEVELOPMENTAL HRM PRACTICE AND AFFECTIVE COMMITMENT THROUGH PSYCHOLOGICAL CONTRACTS

Syed Adnan Ali, Superior University

Ahmed Muneeb Mehta, University of the Punjab

Shrafat Ali Sair, University of the Punjab

Ahmad Raza Bilal, Superior University

Muhammad Shafiq Kaleem, Virtual University of Pakistan

Citation Information: Ali, S. A., Mehta, A. M., Sair, S. A., Bilal, A. R., & Kaleem, M. S. (2020). A stitch in time saves nine; understanding developmental HRM practice and affective commitment through psychological contracts. Journal of Management Information and Decision Sciences, 23(4), 229-243.

Abstract

Developmental human resource management (DHRM) stated that a new perspective has evolved in human resource management Research. This study will investigate how DHRM practices create mediation relationship of psychological contracts with the employees to increase affective organizational commitment. Target population of this study those employees who are working full time permanent employee in telecommunication organization of Pakistan and performing their duties as customer care representatives (CCR) in Lahore region. For this research out of 1600 population, 310 is the sample size. Results reveal that the DHRM practice is a strong predictor for employee’s affective commitment; and psychological contracts are building the strong bridges between developmental HRM practice and affective commitment. This study has significant relationships with major predictor and as p>0.05. Study will be helpful for the top level management of telecommunication organizations that can retain his employees (CCR) for the long time, for the organization success and benefits.

Keywords

Developmental Human Resource Management, Affective Commitment, Relational Psychological Contract and Transactional Psychological Contract.

Introduction

In the organizations human resource management (HRM) is responsible for employee’s routine tasks and better performance of individual employees. They bring organizational policies and practices into action. Their role is especially considered important for effective implementation of HR policies and they should have discretion for their implementation. Employees’ outcomes and organizational effectiveness can be increased through HR specialist. Ultimately human resource managers’ efficiency and effectiveness in the organization can lead the implementation process towards success. A study has explored different aspects of HRM to enhance the capabilities of individuals to perform better in an organization which in turns reduces turnover intention to increase individual employee affective commitment. It is difficult for every HR manager to retain and attract his employee with the organization (Shultz & Wang, 2011). This study introduces the broad structure and situational approach for the explanation of the direct impact of Developmental HRM practices with employee’s outcomes. This study aims to retain its’ employees for a long run period through developmental HRM practices along with two bridges of relation and transactional psychological contracts. Since this sector is quite complex in nature, to make its employees fully committed as they directly deal with organization performance and success (Ostroff & Bowen, 2000). This study makes a structure that developmental human resource management directly relates to employee’s commitment among all employees by making a strong relation through relational and transactional contracts (Rousseau, 1995). Yet, there are number of studies about the employee’s outcomes to show the performance of human resource management’s positive influence on different types of employees’ outcomes e.g. commitment, OCB, turnover intention (Paauwe, 2009). According to perception of employees about developmental human resource management practices makes implementation process either successful or lead it to failure. Mainly focused on perceptions of HR has previously studies on employees’ perceptions of HR and various employees’ outcomes (Zaleska & de Menezes, 2007; Kuvaas, 2008). It is observed that these studies have not focused the developmental human resource management perceptions of HR practices. So, the purpose of present study aims to contribute in this stream by investigating the relationship between perception of DHRM practices and its impact on employees’ outcomes through employees’ perception for affective commitment. Accepting this advocacy, the present study aims to contribute in research literature by focusing for affective commitment perceptions about developmental human resource management practices. Developmental HR practices perceptions can be different from HR specialist (Wright et al., 2001). Due to difference in perceptions, a new line of research has been occurred for execution of HR practices. Among a number of HR practices some are more capable and favorable of their employee’s behavior in their jobs. Some HRs has deficiency related in skills and knowledge; so such behavior can’t support the effective execution of HR Policies and practices which usually results in failure of implementation (Morley et al., 2006).

The importance of developing concept of developmental HRM is to increase the employee’s commitment of every individual. Developmental HRM (Bal et al., 2013; Kuvaas, 2008) stated that a new perspective has evolved. Number of researches on HRM practices have ignored the importance of employees which is an inauspicious fact because employees’ commitment and behaviors impacts work engagement (Purcell & Hutchinson, 2007). Some researchers also ignored the impact of developmental HRM on employees’ commitment with the relation of psychological contracts and various employees’ outcomes. Moreover, this study aims to clean the black box of many outcomes that are still unclean (Guest, 2011) which will be show the human resource practices positively influence on employees’ outcomes. Likewise, this study is more beneficial for HR managers of telecommunication organizations because it is very difficult to retain its’ employees to commit them especially with those employees who are directly related with the organizations’ success and performance. Broadening research considered the relationship of individual employees with the high level influence of Developmental HRM practices towards an organization to retain and committed employees (Addae et al., 2006). Sometimes implementations of HR practices fail to enhance organizational commitment due to lack of flexibility of HR practices (Wright et al., 2001). So these practices should provide human resource management with sufficient autonomy and discretion, so that they can take care of their employees, to have informal communications and make decision making decentralized. If HR practices lack adaptability and flexibility then it also becomes obstacle in the implementation process. So it is essential to consider from employees about developmental human resource perceptions regarding HR policies and practice and their flexibility. They should be provided with sufficient autonomy by HR practices. It is necessary and important phenomenon of every HR, managers to commit of employees in any organization. Retaining employees within an organization can be enhanced through many Ways (Guthrie, 2001; Wasti, 2003; Addae et al., 2006; SamGnanakkan, 2010). But no study revealed in the context of developmental HRM practice; and how can this practice force the employees for work in current organization through creating psychological contracts. In telecommunication organizations e.g. Jazz, Ufone, Zong and PTCL there is a hectic job for managers to retain the customer care representatives (CCR) for a long time. This industry is providing customer services in telecommunication and fulfils the customers’ needs to satisfy through providing those calling services and rectify individual customers’ problems. The heavy load of customer calls, to listen continuously the customer’s problems can reduce thrive at work. So, Developmental HRM practice provide an opportunity for employee retention through providing them internal and external developmental training, job enrichment/rotations can lead to employees affective commitment and also through bridges of relational and transactional contracts. An integrated Developmental HRM system makes vital and visual contribution to the organization’s performance the overall telecommunication sectors in the country are going down rapidly due to increase in competitors; and it is a main cause of quitting of its employees. Conjointly a holistic model showing the relation of Developmental HRM practices, climate with individual & structure outcomes have remained in serial. Establishing a model showing linkage between Developmental HRM practices to explore the relationships that, how the Developmental HRM Practices enhance affective commitment with mediating effects of relational and transactional psychological contracts in the telecommunication sector in Pakistan.

Literature Review

Developmental Human Resource Management Practices

It is defined as a developmental human resource management practices are those use to fulfil the developmental need of individual employee in the organization e.g. job development, job rotation and retraining. Human resource developmental process can defined as an extension of human resource management in which HR provide them to fulfil development on the job/career development opportunities (Kuvaas, 2008; Zaleska & de Menezes, 2007). Developmental HRM practices, structured as intangible program to develop employees’ commitment. These human resource practices promote, additional personal system and influence commitment through Job enrichment, coaching, motivation, development. Most of the Human Resource Management practices suggested that the self-motivation has a larger influence on organizational commitment. Ogilvie (1986) found that HRM professionals always influence to organizational commitment by means of promotion, compensation and job career stages. A study of industrial sector tested the key terms for motivating of every individual in any organization are working environment, career development, and training (Allen et al., 2003). When any organization needs any innovation so employee should be more committed with the organization; high level innovation comes through high level affective commitment of individual employee in the organization. The theory of Social Exchange (Blau, 1964) states that individual reciprocates through positive behavior when they receive development and training in performing their duties at job. More they will tend to reciprocate towards organization by showing positive attitudes and behaviors and more will be the affective commitment. Similarly HRM gives a forecast to his employees for best future by assist them in manners. If it is so, the more developmental human resource management involved in their employee wish, more they will be motivated to repay the organization by properly implementing better HR practices. According to theory of work affective commitment (Sulsky, 1999) makes employees more responsible for his outcomes and increases intrinsic commitment. So keeping it in view if sufficient implementing HR practices are provided to employees for by keeping in consideration employee’s local and individual needs then developmental human resource management will become more responsible after these actions. In such situation perceptions of developmental HRM will enforce him to reciprocate towards organization through implementing HR with more responsibility (Kuvaas, 2007). They will also provide employee with flexible work schedules, decentralized decision making, beneficial support, reduced stress, exhaustion at job (Meyer et al., 2015). Employee motivated by developmental practices by taking part in lateral job movement, developmental activities and trainings which can shows effects of developmental HRM practices on affective commitment e.g. turnover intention and employees are ready to do work by support of human resource practices they perceive that HR practices are beneficial for them and HR practices always motivate for affective commitment (Bal et al., 2013; Kuvaas, 2008).

Affective Commitment

It describe as an affective or emotional attachment to the organization such that strongly committed individuals identify with, are involved in, and enjoy membership in the organization (Allen & Meyer, 1990). Developmental HRM also provides choices to employees to perform their tasks. When has more interactions with employees on daily basis than they become more accountable for employees’ affective commitment, So, HRs’ and employee relationship highly importance for enhancing organizational performance (O’Reilly & Chatiman, 1986). Hunt & Morgan (1994) also highlighted the importance of people management. They emphasized the importance of leadership behavior along with the application of HR practices to increase in affective commitment. When an employee perceives HR practices through transactional and relational contracts, employees’ affective commitment should be higher resulting in their reduced turnover intentions. Individuals vary according to their needs for satisfaction, competence and relatedness. So to enhance employees’ various outcomes at job, these kind of individual differences should be kept in view by HRs when implementing developmental HR practices. When HR practitioner and HR practices make relational contracts consider individual differences that is higher level of employees’ commitment and employees having more transactional with their organization may create strong relationships with the organization (Meijerink et al., 2016). Three factors of sensibility and behaviors add bulge to the characterization of affective commitment (Meyer et al., 1990). They are (i) approval of an assent within the values and goals of the company; (ii) need to take care of organization coherence and (iii) a readiness to bequeath to the organization. This definition of affective commitment spell a full of life relationship between the worker and therefore the organization presuppose perspectives and behaviors as exhibition of the particular thought of affective commitment. Acquisition is involvement supported the single employee of the organizations’ worth. The primary definition part of Mowday et al. (1982) affective commitment, acceptance and trust within the ethics and goals of a company relies on intellectual attachment. Furthermore two types of psychological contracts also appears to impact employees’ affective commitment. When human resource managers keeping in consideration employees’ local and individual needs provides them a strong career environment, employees feel themselves and their skills as valued and trusted by their HR. Lee et al. (1992) enhances the perception of HRM; in return employees shall more committed towards their work and have less intention for quit (Mathieu & Zajac, 1990). Moreover, when implement HR practices keeping in consideration employees needs and provide them flexible work schedules for affective commitment. In turn employees will consider organizational inducements for them and reciprocate towards organization by way of affective commitment. An examination in one another study that when internalization of social behavior with organizational commitment and psychological contracts were provided by a proper communication channel from their supervisor, they were clear about their role and tasks at job, then they perceive themselves safer and it impacted their affective commitment at job. A study also states in their study that if more good human resource practices provided to employees at their jobs that how and when they can perform their jobs, enables them to meet specific outcomes (Kehoe & Wright 2013).

Developmental HRM Practices for Relational and Transactional Psychological Contract

Psychological contracts are feeling about employees’ outcomes of individual employee in form of transactional and relational contracts. Transactional contracts are like give and take between the organization and employees. Organization gives rewards in the form of salary, bonuses and extra duty payments and allowances so individual employee gives his services against them. Relational contracts are based on both agreements fiscal elements and emotional attachments for long time relations with employees. Business practices and high involvement in work process can direct impact on organizational equity through psychological work adjustments as like Boxall & Macky (2009). Similarly a study was conducted by Addae et al. 2006) which states affective commitment and intention to quit with effects of psychological contracts. But yet, no study empirically investigated the relationship among developmental HRM and affective commitment by showing mediation effects of transactional and relational contracts for decreased turnover intention, meaning that how a developmental human resource management can committed individual employee within the organization through creating psychological contracts with them. Relational contracts are theorized as more effective and more positive relation of any employees with the organization as compare with others relations because employees assume that this organization can save his future after its retirement. Basically psychological contract is a relation of every individual employee with its organization and these contracts are classified as relational contract and transactional contract (Millward & Hopkins, 1998; Raja et al., 2004). Relational and transactional contracts perceived as mutual agreements between organization and of its employees. Relational and transactional contract has a time-frame in which relational contract focuses on long term relationships whereas, transactional contracts are based on short term and monetary scope between organization and individual employee. Employees’ attitude and behavior mostly affects organizational performance as well as a technique of psychological relations also use for increase organizational performance and individual employee commitment. When human resource management considers employee’s wellbeing and provide them environment and favorable practices to work in through the flexible HR practices, then employees reciprocate towards organization by being more responsible towards their job and show positive attitudes and adopt appropriate behaviors at their work place. The employees’ commitment is depend on individual employee perceptions that how and why Developmental HRM practices are involved in the organization. So, developmental HRM enforces the favorable practices. When human resource had implementing HR practices through transactional and relational psychological contracts flexibly rather than formal HR practices, considers the employee well-being, take a great care of their local, individual and personal needs then it develops an affective commitment and work environment work place.

Relational and Transactional Psychological Contract for Affective Commitment

Relational contracts are based on both agreements fiscal elements and emotional attachments for long time relations with employees. “Transactional contracts are like give and take between the organization and employees. Organization gives rewards in the form of salary, bonuses and extra duty payments and allowances so individual employee gives his services against them”. Inherent to the inspiration of worker relationships is that the beliefs of the worker relative to the obligations that square measure reciprocal between the m and therefore the organization. This expectation s relative to the reciprocal requirement between worker and organization square measure cited because the transactional and relational psychological contract. This contract is an employee’s cognitive evaluation of the transactional and relational mutual devoir between employee and organization which is formed during the employee’s beginning period of participation in the organization. This beginning period of employment is the most critical interval for employee turnover and reportedly is the time during which most of the turnover occurs state that the worker holds conception regarding the organization, and not any on specific agent of the organization which means that the worker adopt the organization with an identity that assumes representational process. The entity of the organization that has direct contact with the worker is management. The role of management is momentous to the application of the worker psychological contract, for it’s the managers who could become alert to and worker’s adopt contract and reply to that employee consequently. Morrison & Robinson (1997) when events are thought-about to be transactional and relational contract the worker could also be distressed and exhibit acceptable attitudinal or activity responses. Robinson (1995) reports that once any worker believe that their transactional and relational psychological contract has been profaned and there is a decrease within the level of the employee’s trust within the leader additionally, to a decrease within the level of satisfaction with and commitment to the organization. Human resource managers work as a communicator for the employees in the organization. A signalling theory Casper & Harris (2008) which assumes that employees do not have a perfect information for the achievement of their goals and they do not know about the work that what they have to do in the organization so the human resource managers become a signal for those employees as a communicator. Thus, human resource managers can improve communication medium of psychological contracts through signalling theory and diversify the intention of the individual employee. In response employees will open-handedness communicate with HRM (Guzzo & Noonan, 1994). Job with psychological contract as discretion, independence and freedom, allowed to workers for schedule their work, decision making, and choices to perform their duty at job (Guest & King, 2004). Whereas, work related emotions at job and it is affected by organizational relationships and also affects implementation process. Kuvaas (2007) stated that when with his discretionary power take into account local and individual needs during implementation of HR then their perception of developmental practices will enhance the chances that they will be perceived as best practice. In a number of studies the importance of psychological contract at work environments in HR implementation have been documented where supervisors provide flexibility to their employees in their work schedule through create these contacts and decentralized decision making which in turn impact their high commitment at work. Rousseau & Parks (1993) stated more the HRM invest in the ability of front line workers and make decentralized decision making more employees leftover behavior is elicited. He also states that employee leftover behavior is stimulated and encouraged by the way in which their HRs behaves and act. The employee leftover behavior is affected by the extent to which HRs act in leftover manner. The more the HRs will use his discretionary powers more the employees will perceive themselves as committed (Rousseau, 1995). The employees are clear about their roles at job, more the informal communication between supervisor and subordinate, more employees perceive themselves as commitment. When employees receives assistance to consider individual needs from HR specialist and acts in officious way then he will provide employees with flexible work schedules and committed supportive work settings. He gives importance to choice inspect of control and takes care of employee’s feelings and views (Gilbert et al., 2011). When HRM provide such an environment to their employees then they perceive it as they have given opportunities at their jobs and start performing work duties. According to the social exchange phenomenon employees are committed even-handed relationships with organization. Transactional and relational contracts are considered more superlative than legal documentation; this study will define psychological contracts as a perception of individual which human resource management neglect to do something or to fulfil his responsibilities (Zhao et al., 2007). Suggested different types of breach by affects, attitude and individual effectiveness.

H1: Developmental HRM practice are positively related to affective commitment; such that high the developmental HRM practice more will be the affective commitment

H2: Developmental HRM practice positively related with the relational contract; such that more the developmental HRM practice strengthen, high will be the relational contract

H3: Developmental HRM Practice positively related with the transactional contract; such that more the developmental HRM practice strengthen, high will be the transactional contract

H4: Relational psychological contract mediate the relationship between developmental HRM practice and affective commitment

H5: Transactional psychological contract mediate the relationship between developmental HRM practice and affective commitment

Methodology

This study shows that, a natural environment and causal in relationship with deductive approach and positivism research paradigm has been used to investigate the associations between the hypotheses and to test the theoretical framework (Figure 1) (Fraenkel et al., 1993). This study, based on some objectives of reality, quantifiable variables, existing theory, and statistical analysis, unbiased and acceptable knowledge (Bryman & Bell, 2015; Creswell, 2013). Main population for this research are full time permanent employees of telecommunication organization who are working in Jazz, Ufone, Zong and PTCL and providing services as customer care representatives (CCR) in Lahore region. To address the consumer related issues data is collected from consumer side (Sair & Danish, 2018; Hussain et al., 2020), similarly HR related problems are solved by gathering data from employees, therefore, data is collected from said companies employees. Out of 1600 employees are working in the organization 310 is the sample size for this study the sample size is calculated with given formula by (Krejcie & Morgan, 1970). Questionnaires were plot in four types of telecommunication organizations’ head offices, but 266 responses are received and useable for further analysis remaining could not be used due to missing information. The simple linear regression and mediation analysis has been done by using Process and Macro technique (Hayes, 2012). Total forty six questions of the questionnaire were adapted to investigate from which twenty scale items related developmental HRM practice (Kuvaas, 2008) an example is “I am well pleased with the training for my work development which I received.” In-addition affective commitment measured with scale of eight items using from (Allen & Meyar, 1990) an example like that, This organization has a great deal of personal meaning for me. Furthermore, relational psychological contract scale were adapted with nine items related to relational contracts an example “I feel like ‘part of the family at my organization” (Millward & Hopkins, 1998). Transactional psychological contract also measure through using nine scale items related to transactional contract an example “my commitments with the organization is settled through my contract specific only” (Millward & Hopkins, 1998). All items are previously authenticated for the analysis with five-point Likert scale ranged from 1-5; 1= Strongly disagree and 5=Strongly agree.

Figure 1 Theoretical Framework

Results

To evaluate the association between structured hypotheses exploratory factor analysis used to calculate the construct validity. In this instant, principal component analysis with varimax technique was used for factor analysis. In the given below Table 1, the value of Bartlett’s Test of Sphericity having a significant relationship to proceed the further factor analysis. KMO measure of sample adequacy is also showing the significant values. Furthermore, KMO indicates the appropriateness of these factors. Moreover, KMO Bartlett’s Test of Sphericity and P-value is showing the P-values<0.05 is significant values factor analysis could be performed. In the KMO Bartlett’s Test of Sphericity all the values of KMO measure sample of adequacy are acceptable because all the values of sample adequacy should be above 0.60 (Straub et al., 2004). Along-with that all the values of the factor loading are less than 0.40 should remove from the analysis (Hair et al., 1998; Straub et al., 2004).

Table 1 KMO-Bartlett’s Test of Sphericity
  Variables   Scales Items KMO Measure of Sample Adequacy Bartlett’s Test of Sphericity and Chi-Square Bartlett’s Test of Sphericity  Significant
Developmental HRM Practices 20 0.723 776.368 0.000
Relational Contracts 9 0.786 387.940 0.000
Transactional Contracts 9 0.818 476.363 0.000
Affective Commitment 8 0.711 308.668 0.000

This section pertains to basic information about every individual respondent of the organization these are all control variables measured with dummy code such as 1 for male and 2 for female and same are coding with age, education, marital status, category of work current experience and salary; all the controlled variables are listed in above mentioned Table 1. Moreover, the current experience is divided under the range e.g. as 1 for Uptill 04 years’ experience and 5 for More than 20 years’ experience showing of employment agency, The range of mean, standard deviation with minimum and maximum values of the demographic data is also shown in the Table 2.

Table 2 Descriptive Statistics
  N Minimum Maximum Mean Std. Deviation
Gender 310 1.00 2.00 1.1290 0.33578
Age 310 1.00 6.00 2.1871 0.88707
Education 310 1.00 5.00 2.4194 0.78720
Marital Status 310 1.00 2.00 1.6645 0.47292
Category of Work 310 1.00 3.00 1.6774 0.74552
Current Experience 310 1.00 5.00 2.6774 1.08198
Salary 310 1.00 6.00 2.2000 1.34333

In the KMO Bartlett’s Test of Sphericity all the values of KMO measure sample of adequacy are acceptable because all the values of sample adequacy should be above 0.60 (Straub et al., 2004). Along-with that all the values of the factor loading are less than 0.40 should remove from the analysis. For reliable results in principal component analysis (PCA, a large sample procedure) sample size should be above 300 (Stevens, 1996). In Table 3 only those Eigen values >1 are considered to present for principal component as a construct in the table. Moreover, only 4 components are selected on the basis on high Eigen values and these are all components called the principal components. Furthermore, Developmental human resource management practice has 20 items for the factor loading and 68.215% variance explained, and transactional contracts has 9 items with 65.135% variance explained same as the third component relational contracts has 62.491% of variances explained with 9 items also and last construct of affective commitment has 8 items and 57.808% variance explained. All the Eigen values of each component are greater than one Eigen-value >1, with respect to DRHM = Eigen-value 3.104>1, TC = Eigen-value 2.948>1, RC = Eigen-Value 2.729>1 and AC = Eigen-Value 2.290>1.

Table 3 Total Variance Explained and Eigen Value
Constructs Principal Component Total Variance % of variance Explained Cumulative % of variance explained
Developmental HRM Practices 1st component 3.104 68.215 68.215
Transactional Contracts 2rd component 2.948 65.135 65.135
Relational Contracts 3nd component 2.729 62.491 62.491
Affective Commitment 4th component 2.290 57.808 57.808

Descriptive Statistics and Reliability Analysis

In the below given Table 4 total number of Valid-N, mean, standard deviations, minimum and maximum vales are given. For the 5-point scales developmental HRM practice, affective commitment, relational contract and transactional contract mean range from 13.40 to 64.41, and the standard deviations range from 3.42 to 8.47. Corresponding Table 3 also describes the reliability analysis to check the internal consistency of each variable through cronbach’s alpha. Cronbach’s alpha has used to check the internal consistency of each construct. The items removed for the reliability statistics to maintain the internal consistency that the items were less than 0.40 in factor loading has removed (Hair et al., 1998; Straub et al., 2004)). Range of cronbach’s alpha from 0.702 to 0.772. Reliability of these all variables showed above 0.70 from the requirement (Hu & Bentler, 1999).

Table 4 Descriptive Analysis
Variables Valid N Mean Std. D Min. Max. Total Items Cronbach Alpha
Developmental HRM Practices 297 64.41 8.47 1 5 19 0.772
Relational Psychological Contracts 304 23.04 4.81 1 5 07 0.733
Transactional Psychological Contracts 296 30.85 6.06 1 5 09 0.777
Affective Commitment 299 13.40 3.42 1 5 04 0.723

Regression Analysis

Hypothesis of this study has been examined through Process and Macro technique (Hayes & Preacher, 2014). Table 5 shows that developmental HRM practice has significant association (β=0.871, p<0.05) and R2-values 0.7232 with affective commitment. Whereas, the direct effect of developmental HRM practices on affective commitment (t=26.2631>1.645, F=689.7529 and sig value (0.0000) (Kumar et al., 2013). So, for this study H1 has been accepted. Further developmental HRM practice significantly (β=0.6631, p<0.05) influence on relational psychological contracts with R2=0.3750 and t=12.5848>1.645, F=158.3768 and sig value (0.0000). So, H2 supported. Moreover, developmental HRM practice significant impact on (β=0.8653, p<0.05) transactional psychological contracts along with t=35.7473>1.645, F=1248.6068 and sig value (0.0000) so the H3 has supported also with the associations.

Table 5 Regression Model: (Developmental HRM Practice, Relational Psychological Contracts, Transactional Psychological Contracts and Affective Commitment)
Path Beta Value t-value p-value (LLCI, ULCI) F-value
Affective commitment
R square = R2 = 0.7232
DHRMP 0.8781 26.2631 0.0000 0.8122, 0.9439 689.7529
Relational Contract (1st Mediating variable)
R-Square = R2 = 0.3750
DHRMP 0.6631 12.5848 0.0000 0.5594, 0.7669 158.3768
Transactional Contract (2st Mediating variable)
R-Square = R2 = 0.9047
DHRMP 0.8653 35.7473 0.0000 0.8176, 0.9129 1248.6068

Mediations Analysis

The mediation analysis evaluate through Process and Macro method. In this method there is no concept of partial or fully mediation; either the mediation do exist or doesn’t exist but the condition applies (Hayes, 2012). For this research to check the mediation analysis developmental HRM practice is showing statistically significant relationship with affective commitment which mean there is no mediation exist in this modal because with inclusion of mediating variable there is no change in our first hypothesis developmental HRM practice still has significant relationship with affective commitment. Whereas, (RC, β=0.1679; TC, β=1.0673; DHRMP, β=0.2472, p<0.05) and rest the values R2=0.8898 and value of T=6.4014; 15.6400; 3.8129>1.645, F=704.9627 and sig value (0.0000). So in the light of these results mediation is not supporting. So for this study we reject the hypothesis 04 and hypothesis 05.

Conclusion

It is evidence from the above noted results that to determines the developmental HRM practice is the major predictor for affective commitment and this relation builds up strong relationships with the help of relational and transactional psychological contracts. In the above Table 6 there is significant relationship with developmental HRM practice and affective commitment along with mediating variables and all first hypotheses has been accepted. Same as HRM practices have significantly impact on affective commitment e.g. career development, training & development and performance appraisal (Kvaas, 2008; Meyer & Smith, 2000). In above Table 5 to check the mediation analysis it seen that developmental HRM practice is showing statistically significant relationship with affective commitment which mean there is no mediation exist in this research because by inclusion of mediating variables e.g. relational and transactional psychological contracts our first hypothesis should become insignificant but there is no change and developmental HRM practice still has significant relationship with affective commitment (Baron & Kenny, 1986). Hence, developmental HRM practice has a direct impact on affective. The study contributes significantly to the stream of human resource management. Findings of this study aims to contribute in the literature of HR implementation in Pakistan. If HR practices, and its correct implementation, are designed in such a way that they create relational and transactional psychological contracts with them they can impact on individual employee which ultimately impacts employees’ commitment.

Table 6 Mediation Analyses (Developmental HRM Practice, Relational Psychological Contracts, Transactional Contracts and Affective Commitment)
Path Beta Value t-value p-value (LLCI, ULCI) F-value
Affective commitment
R square = R2 = 0.8898
1st M= RC 0.1679 6.4014 0.000 0.1163, 0.2195 704.9627
2ndM= TC 1.0673 15.6400 0.000 0.9329, 1.2017
DHRMP 0.2472 3.8129 0.002 0.3749, 0.1196

Empirical Findings

The results generated from this study have practical implication for many organizations. The results reveal that organizations in framing their HR practices and policies with development process it could gave more benefits of every individual employee with-in the organization. HR managers should also consider and take care for various employees’ needs. It will impact employees’ performance at job. And employees’ performance is one of the critical factors for an organization to be succeeded and gaining a market share. From practical point of view, it is necessary that managers are also should be well skilled and must have knowledge regarding organizations HR policies and practices. HR manager must also cooperate with employees to know employees’ local and individual needs. They should also guarantee that HR practices as assisting them in fulfilling their job duties with performance appraisal. This research opens up the room for the future researchers to find out the various factors that also impact the behavior of individual employee about “negative” HRM that employees motivate in the organization and work with thrive with own experience and knowledge they do not follow the HR rules and policies.

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