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Sys Rev Pharm 2020; 11(3): 77 86
A multifaceted review journal in the field of pharmacy
E-ISSN 0976-2779 P-ISSN 0975-8453
The Effects of Human Resource Practices on Employee
Organizational Commitment: Findings from the
Pharmaceutical Industry in Thailand
1 2
Pornkul Suksod , Chomsupak Cruthaka
1Graduate School, Suan Sunandha Rajabhat University, Bangkok, Thailand
E-mail: pornkul.su@ssru.ac.th
2Ramkhamhaeng University, Bangkok, Thailand
E-mail: shomsupak@ru.ac.th
Article History: Submitted: 10.12.2019 Revised: 12.02.2020 Accepted: 02.03.2020
ABSTRACT
Human resource management practices such as training, performance 344 data used for future analysis. Quantitative analyses were
evaluation, awards, choice methods, job security and their effects on conducted using SPSS version 23 and Smart PLS version 3. The result
the organizational commitment are evaluated by previous researchers. suggests that performance evaluation, job security, organizational
However, not many studies have conducted in Thailand, more support has significant role in increasing organizational commitment.
specifically in the context of the pharmaceutical industry of Thailand. Keywords: Human Resource Practices, Employee Organizational
Therefore, this paper is endeavoured to recognize the connection Commitment, Thailand
between HR practice (information sharing, promotion, performance Correspondence:
evaluation, job security, and organizational support) towards Pornkul Suskod
organizational commitment in the context of the pharmaceutical Graduate School, Suan Sunandha Rajabhat Univeristy
industry in Thailand. Total of 390 questionnaires distributed to the Bangkok, Thailand
employees who are employed in the pharmaceutical companies E-mail: pornkul.su@ssru.ac.th
across Thailand, and 360 questionnaires were received with a DOI: 10.5530/srp.2020.3.09
response rate of 92.3%. After the diagnostic tests and data screening, @Advanced Scientific Research. All rights reserved
INTRODUCTION membership with the organization, increase the loyalty, and
The productivity of human resource (HR) practices and the willing to work on behalf of the organization (Top, Akdere,
employee organizational commitment of the employees in & Tarcan, 2015). A recent study by US Research and
the pharmaceuticals industry is central due to the labour- Management Consulting Firm, employees, shows the higher
intensive industry (Saengchai, Siriattakul, & level of engagement at work who higher level of
Jermsittiparsert, 2019; Siriyanun, Mukem, & commitment among workers. On the contrary, employees
Jermsittiparsert, 2019; Sriviboon & Jermsittiparsert, 2019). with a lower level of commitment work less for the
The pharmaceutical industry heavily depends on the service, organization. Similar to the US research consulting firm,
performance, and productivity of the employees. Simply, another study by Ministry of Malaysia found that the
employee performance and productivity are one of the top number of younger employees turning down job and job-
priorities for the industry for future success. In order to hopping due to lower wages among many problems. As
perform higher performance and produce excellent indicated by Suifan (2015), disregarding having
productivity by the employees, the organization requires to independent power in human asset practice, the local
provide greater satisfaction to them. Organizational government are adversely seen by local people. It tends to be
commitment refers to what extent employee is committed seen through a few objections held up by local people
to working for the organization, desire to maintain relating to human asset practice in the local government.
Figure 1: Dimension of HRM practices
Source : (Bartlett, 2001)
Figure 1 shows eight different aspects of HRM practice. The labor relations, performance & reward management system,
main dimension of HRM practice such as career planning, training & development opportunity, recruitment selection.
77 Systematic Review Pharmacy Vol 11, Issue 3, 2020
Pornkul Suksod et al / The Effects of Human Resource Practices on Employee Organizational Commitment: Findings from
the pharmaceutical Industry in Thailand
All of these parts of HRM are directly help an employee to performance and human resources practices is undeniable
practice in organizational work. Many studies conducted in (Cao & Hamori, 2016). Barely any investigations analyze the
the past, including the metanalysis shows that the powerful possibilities in this relationship. Despite the fact that there
execution of an HRM framework might be a key catalyst for are innumerable investigations affirming the connection
individual and organizational performance (Dhar, 2015). among HR and performance, exact examinations looking at
Most observational research on the HRM performance the organizational commitment yet deficient (Bisharat,
emphasis around clarifying the interim instruments of how Obeidat, Alrowwad, Tarhini, & Mukattash, 2017). It is
HRM frameworks improve organizational performance accepted that human resources factors influence the
(Chambel, Castanheira, & Sobral, 2016). The maximum of inspirations of employees, regardless of whether they do as
studies conducted previously on the effects of human well as can be expected the organization's performance
resources practices on the performance of organizational lastly.
proved that the relationship between organizational
TABLE 1. Thai Pharmaceuticals Exports & Imports
Year Export (USD, m) Import (USD, m)
2009 204 1390
2010 219 1403
2011 250 1430
2012 255 1527
2013 175 1502
Source: (Juhdi, Pa'wan, & Hansaram, 2013).
According to table 1, Thailand export 204 million USD and such as training and awards etc. The discoveries from the
import 1390 million USD in the year 2009. It also can be existing examinations shows the positive link between
observed that exports (219,250 & 255 million USD) human resources practices and employee organizational
increased from 2011 to 2012 where at 2013 they export (175 commitment (Diab & Ajlouni, 2015). As indicated by social
million USD) less than previous years. On the other hand, exchange theory demonstrate the positive connection
Imports increased consistently (1390,1403,1430,1527 & between human resources practices and
1502 million USD) from the year 2009 until 2012. organizational commitment. Social exchange theory
Aladwan, Bhanugopan, and D'Netto (2015) Concentrate on explains that connection happens among employees and
the connection between HR practices and organizational organization due the open doors for the employees from the
commitment and performance. It is believed that organization. Consequently, workers feel obliged to return
organizational commitment effectively affects various back to the organization through better commitment.
factors includes abilities, information sharing, awards In organizational behaviour and human resource
(Albrecht, Bakker, Gruman, Macey, & Saks, 2015). Thusly, management practices, one of the most significant concepts
this paper is endeavoured to recognize the connection is organizational commitment (Kumar Mishra & Bhatnagar,
between HR practice (information sharing, promotion, 2010). Although organizational commitment is viewed as a
performance evaluation, job security, and organizational solitary construct, it contains three dimensions, such as
support) towards organizational commitment in the context affective, normative, and continuance commitment (NATH
of the pharmaceutical industry in Thailand. & Agrawal, 2015). As per affective commitment refers to
individual' involvement, attachment, and identification
LITERATURE REVIEW with the organization. While normative commitment refers
Human Resource Practices and Organizational to the individual's feeling about the organization to remain
Commitment and work for the organization, and lastly, continuance
The proper Human resource practices always have positive commitment refers to the degree of employee's feeling of
influences on the organizational commitment of employees staying or leaving the organization. In spite of the fact that
(Amponsah-Tawiah & Mensah, 2016). Their finding shows there have been different conceptualizations of
that any organization may hold the employees by increasing organizational commitment, most of the current research in
and maintaining the employees commitment. the subject have utilized conceptualization of organizational
Consequently, increased commitment to the organization commitment. They have defined three types of commitment
will encourage qualified and skilled employees from other are affective, normative and continuance commitment.
organization to join the institution. In order to gain a Employees stay with their continuance commitment help
competitive advantage, the organization need to attach the organization to evade costs of leaving. The cost assessment
workforce who hold high skills. This has been proved by the is affected by tenure and the position the representative
number of studies through the investigation of the holds as they may feel that they have contributed a lot to
relationship between HR practices and really consider isolating from the organization
organizational commitment. The discoveries of the (Ramaprasad, Prabhu, Lakshminarayanan, & Pai, 2017).
referenced studies recommend numerous significant factors Normative commitment reflects workers' feeling of
commitment to their company and employees with solid
78 Systematic Review Pharmacy Vol 11, Issue 3, 2020
Pornkul Suksod et al / The Effects of Human Resource Practices on Employee Organizational Commitment: Findings from
the pharmaceutical Industry in Thailand
regulating duty proceed with their company since they within the organization. Once individuals have a career
believe they should. Individual employees sense a stronger development opportunity in the organization, they are more
sense of trust on the organizational values and beliefs and likely to have better organization commitment. Literally,
recognize quickly its objectives, they are more likely to apply employees are more likely to be committed to the
extra endeavors for the organization with greater organization while they found their advancement in their
organizational commitment (Bakhtyar, Kacemi, & Nawaz, career through the organization is present. Because of the
2017). This prescribes the people who are explicitly joined facts that intra-organizational career opportunities which
together to the organization with the increasingly raised are one type of promotion that ensure the justice and
degree of obligation can be animated to achieve fairness in the organization and in turn lead to greater
without looking for an open commitment toward the company (O'Neill & Gaither,
entryway for individual addition. 2007). Indeed, right and fair promotion provision is not
only assisted the organization to retain their quality skilled
Performance Evaluation and Organizational employees for the competitive advantages but also heighten
Commitment the employee commitment toward the organization.
Performance evaluation is commonly viewed as a significant An ongoing report discovers advancement opportunity in
HR practice. This is an official method to evaluate the the company alongside different indicators of job
employee performance typically done through the yearly satisfaction shows a significant impact on worker's
meeting or some case every six months or even more commitment toward the company (Rahman, Akhter,
frequently after careful consideration. Performance Chowdhury, Islam, & Haque, 2013). This is additionally
evaluation is the platform for the employees to discuss their examined as a noteworthy supporter of improving
past performance and set the target for the future need their commitment to the association. For example, scholars
managers and structure their future activity plans (Gaither uncover time-opportunities for promotion and the proper
et al., 2008). With the new advancements in the business execution provides a higher level of employee satisfaction
organization, no longer performance evaluation is not a and commitment toward the organization in general
basic instrument that uses to archives employee (Santiago & Alcorta, 2012). A study conducted on hospital
performances. It is rather a new strategy that does not nurses by (Islam & Patwary, 2013) uncovered that
evaluate the individual employee performance but maintain promotion opportunity for suitable development for the
the relationship with headquarters, branch offices, and nurse significantly increase their commitment and
every individual employee in greater term (Jansriboot, responsibility to achieve organizational goals. Similarly,
2016). In the current literature, different parts of HRM Yaoprukchai and Kardkarnklai (2014) found in their study
system such as training and performance-based that in HRM system, promotion opportunity is one of the
compensation evaluated. In an organization, whenever this underlying key factors in increasing employee commitment
system executed properly, the performance evaluation to the organization.
system will permit the assurance of performance levels, any
lack of skills, strength of skills by which organization set
appropriate training accord to the individual needs (Garcia- Commitment
Morales, Matias-Reche, & Hurtado-Torres, 2008). This fact Data sharing can be characterized as a procedure that
highlights that performance evaluation practices is a includes the manner in which the company receive
significant factor for any organization in under any good or information from employees and send information to
bad situation. The extant literature revealed that employees to strengthen the decision-making process and
performance evaluation of HR practices has greater impacts also to fortify the basic leadership process (Juhdi et al.,
on the development of employee skills as the expertise 2013). Simply, through the information sharing process, the
expected. A number of previous studies confirmed that organization have a greater chance to communicate with
employee performance has become greater once the employees to receive opinions and suggestion to make a
employee has sufficient training, skills, motivation, and the good decision for the organization. Fundamentally, to better
opportunity provided by the employers. As per social work, this process in the organization requires the
exchange theory, providing support into the desire of understanding between employee and top management. It
employees will provide a positive work environment is suggested that information sharing significantly affects
behaviour towards the organization (Mishra, Bhatnagar, organizational commitment (Kuvaas & Dysvik, 2010).
. As a result, in the end, the Besides, to motivate employees, information sharing is very
motivation level of employees will increase as they get the important to produce a strong feeling toward the
best advantage from employers and give organization back organization. The future event, financial position, and
by working fully with maintaining high commitment technological orientation are main important that discover
(Nambudiri, 2012). by the process of information sharing. Thus, information
sharing enhances the commitment while they
Promotion Focus and Organizational Commitment get financial and future information. Research directed by
Promotion is another significant factor that can be Ling and Nasurdin (2010) identified that high-performance
identified with performance evaluation. It is one of the human resources practice significantly influence employee
preferred methods for the organization to advance and help turnover intention. More simply, information sharing of
employees within an organization and promote employees human resources management practice helps to retain
79 Systematic Review Pharmacy Vol 11, Issue 3, 2020
Pornkul Suksod et al / The Effects of Human Resource Practices on Employee Organizational Commitment: Findings from
the pharmaceutical Industry in Thailand
employees in the organization. Moreover, Lo, Ramayah, From this training, it will reinforce the connection between
Min, and Songan (2010) found that by making a work the employees and their managers and leaders to the
atmosphere that encourages data sharing and including commitment to the guidance by their respective head.
employees before decision-making, the executives would Organizational support theory suggests that any beneficial
fabricate a sound situation wherein individuals' self- support from the company will emulate the extra support to
assurance, and acknowledgement of their thoughts prompts the organization because employees feel obliged to do
common regard and thusly to a full of feeling responsibility something back organization in return to the beneficial
(Majumder, 2012). supports they get from organizations (Yang, 2012). For
By including the worker in basic leadership procedure and example, a study showed that employees stay in the
give thought from the assessment of the representative, the organization, in other word turnover intention decreased by
worker can give the plan to the company before turn out getting support from the organization and organizational
with any choice. The positive effect is it will expand the support makes the employee be more committed and not
certainty among employees and lead to the shared regard leave the organization (Zaitouni, Sawalha, & El Sharif,
between both parties. Other than that Young, Worchel, and 2011). Simply, beneficial supports make the employee more
Woehr (1998) found that encouraging descending and associated with the organizational objectives and committed
upward communication of correspondence among various to working in achieving organizational goals. The
degrees of the organization would impact the degree of investigation found that organizational supporting factors,
worker commitment and comfort in the work environment. for example, career development support, support for
The smooth data sharing between the department in the developing skills and necessary training, supervisor support,
company help employees in performing their tasks. and sufficient organizational resources were found to be
Through compelling communication competence between related to career success. Above findings are eventually very
the worker and management of their area of expertise, all the important for the future employee to join in the
data from prevalent will get by the subordinate, particularly organization, which makes the organizational success in
in term of the new approach and bearing of the future. In general, employee commitment tends to decrease
organization. It will build the dedication and confident of while the employee works for the organization for a longer
the worker in performing the task. Vertical data sharing time. By supporting with greater career development,
refers to communication from top to bottom level of employees feel themselves having a great future with the
employees. In other words, vertical information is social company and eventually upsurge their activity to make
communication. success for the organization.
Organizational Support and Organizational Job Security and Organizational Commitment
Commitment In recent days, job security becomes a significant factor for
Another significant factor of human resources management both employees and employers. Job security becomes an
is organizational support to employees. As indicated by important issue encountered by the organization. Simple,
Muneer, Iqbal, Saif-Ur-Rehman, and Long (2014), organization are not able to ensure the employees' job
organizational support seems to the greater indicator of stability due to numbers of reasons. Thus, there is a
boosting employees work in different ways. Once an consistent increment in the number of studies
organization provides to individual employees such as concentrating regarding this matter. Although the number
helping family life and professional life. Every individual of definition exist in the literature, one of the most
employee requires support from the organization in prominent definitions defined by Nazir, Shafi, Qun, Nazir,
performing the tasks assigned by the organizations. For and Tran (2016) that job security is the degree to extend the
example, sufficient and appropriate working hours, suitable employer or the organization has the ability to provide
work environment, different suitable work techniques, consistent work with its employees. Another popular
employee feedback concerning the workplace, balance in definition defined by Islam and Patwary (2013), he stated
private and professional life which all are important to that job security is the organization ability to ensure
motivate employees for further commitment to work for the employees' job regardless of any seniority, retirement right,
organization according to the tasks assigned by the goals. salary or any kinds of similar losses. In other word,
Additionally, organizational support in a broader sense such employees should be afraid of losing the job by any
as support from the supervisor and top management also discrimination by the organization or rules unless
produce the obligation un employee mind to work for the employees occur any offence. Job security is a significant
organization with higher commitment to reach issue and is significant in impacting the representatives'
organizational objectives (Patwary & Rashid, 2016). perspectives about their occupations. From this point of
Fundamentally, it will help the worker in performing the view, employer stability is a significant factor deciding the
task when employees were given by the physical and mental physical and emotional satisfaction such as turnover or
help from the administrator. Aside from giving the physical continuity form or in the organization, organizational
help, for example, a suitable room and reasonable working commitment. Vanhala, Heilmann, and Salminen (2016)
hours, the boss needs to help representative by giving them found employees' job security ensure and increase the
inspiration in playing out their undertaking. They should employee to be more committed to work. As indicated by
demonstrate their anxiety to the worker by asking their the author that employees more likely become committed
concern and afterwards help them in taking care of the issue. toward organizational goal once they feel secure in the job.
80 Systematic Review Pharmacy Vol 11, Issue 3, 2020
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