Assessing Construct Reliability of Human Resources Management Practices (HRM) and Employee Loyalty: A Preliminary Evidence from the Omani Logistic Sector

AbdulQader Al Saiari, Fadilah Puteh, Abdul Jalil Mohamed Ali

Abstract


Purpose: In the past few years, industry sector highly dominated the Oman’s economy, as the logistics sector forms the backbone of it, which accounted for 56.6% of GDP in 2019. The logistic sector is expected to provide 80,000 jobs by 2020 and 300,000 by 2040. Review of past literature on issues related to HRM impact on employee loyalty particularly from the Omani logistic sector revealed limited outcome. This paper aims in assessing the construct reliability of human resources management practices (HRM) and employee loyalty as well as the impact of HRM practices on employee loyalty, as HRM practices include recognition, compensation, promotion, training, selective hiring, job rotation, and working environment.

Method: To achieve this objective, a quantitative approach was adopted, as questionnaire was distributed to 52 employees who work in logistics sector in Oman as pilot study cohort. Data were analyzed by using SPSS. Items of the research constructs were measured for its reliability value.

Results: The results showed that employee loyalty construct obtained the highest mean (3.891), while compensation construct obtained the lowest mean (3.281). In addition, the results showed that reliability statistics for research constructs and their paragraphs achieved high Cronbach alpha, thus met the minimum trajectory of reliability value. The results of regression analysis illustrated that HRM best practices (recognition, compensation, promotion, training, selective hiring, job rotation, and working environment) had a significant impact on employee loyalty.

Implications: This paper is expected to be a reference for other studies in other sectors to assess the construct reliability on HRM practices variables as well as employee loyalty.


Full Text:

PDF

References


Abdullah, N., Shonubi, O. A., Hashim, R., & Hamid, N. (2016). Recognition and appreciation and its psychological effect on job satisfaction and performance in a Malaysia IT company: systematic review. IOSR Journal of Humanities and Social Science, 21(9), 47-55. https://doi.org/10.9790/0837-2109064755

Abernethy, M. A., Dekker, H. C., & SCHULZ, A. K. D. (2015). Are employee selection and incentive contracts complements or substitutes? Journal of Accounting Research, 53(4), 633-668. https://doi.org/10.1111/1475-679X.12090

Agyeman, C. M., & Ponniah, V. M. (2014). Employee demographic characteristics and their effects on turnover and retention in MSMEs. International Journal of Recent Advances in Organizational Behaviour and Decision Sciences, 1(1), 12-29.

Al Saddi, M. F. (2016). The Need of Incentives Program for Employees of the Ministry of Education in Sultanate of Oman. International Journal of Business and Social Science, 7(12), 47-49.

Al Wahshi, A. S. (2016). Human resource planning practices in the Omani Public Sector: An exploratory study in the Ministry of Education in the Sultanate of Oman. Retrieved from http://ro.ecu.edu.au/theses/1915

Alam, M. S., Saeed, A. S. A., Sahabuddin, M., & Akter, S. (2013). Relationship between employee recognition and employee contribution in service industry. International journal of business and marketing management, 1(1), 1-8.

Al-Belushi, F., & Khan, F. (2017). Impact of Monetary Incentives on Employee’s Motivation: Shinas College of Technology, Oman-A Case Study. International Journal of Management, Innovation & Entrepreneurial Research, 3(1), 01-11. https://doi.org/10.18510/ijmier.2017.311

Al-Nashmi, M. M., & Almoayad, A. A. A. (2015). The Influence of Job Rotation Practices on Employee Motivation: A Study among Mobile Network Companies' Employees in Yemen. International Journal of Social Sciences and Humanities Research, 3(9), 44-72.

Al-Nsour, M. (2012). Relationship between incentives and organizational performance for employees in the Jordanian Universities. International Journal of Business and Management, 7(1), 78. https://doi.org/10.5539/ijbm.v7n1p78

Alshuaibia, A. S. I., & Shamsudinb, F. M. (2016). The Role of Human Resource Management Practices in Enhancing Internal Branding.International Soft Science Conference. https://doi.org/10.15405/epsbs.2016.08.85

Altmann, S., Falk, A., & Wibral, M. (2012). Promotions and incentives: The case of multistage elimination tournaments. Journal of Labor Economics, 30(1), 149-174. https://doi.org/10.1086/662130

Armstrong, A., Francis, R., & Grow, H. (2017). Ethical issues in the employment of expatriate leaders in corporations. Journal of Economic and Social Development, 4(1), 71-80.

Arvis, J. F., Ojala, L., Wiederer, C., Shepherd, B., Raj, A., Dairabayeva, K., & Kiiski, T. (2018). Connecting to Compete 2018: Trade Logistics in the Global Economy. World Bank. https://doi.org/10.1596/29971

Ba-Awain, A. M. S., & Daud, D. (2018). OMAN AS A FUTURE LOGISTICS HUB: A CONCEPTUAL STUDY. International Journal of Economics, Commerce and Management, VI(6), 141-148.

Bari, N., Arif, U., & Shoaib, A. (2013). Impact of Non-Financial Rewards on Employee Attitude and Performance in the Workplace. A Case Study of Business Institutes of Karachi. International Journal of Sciencetific and Engineering Research, Pakistan, 4(7), 2554-2559.

Bertelsmann Stiftung, BTI 2010 — Oman Country Report. Gütersloh: Bertelsmann Stiftung, 2009.

Brewster, C., Gooderham, P. N., & Mayrhofer, W. (2016). Human resource management: the promise, the performance, the consequences. Journal of Organizational Effectiveness: People and Performance, 3(2), 181-190. https://doi.org/10.1108/JOEPP-03-2016-0024

Chepkemoi, J. (2018). Effect of Incentives on Employee Performance at Kenya Forest Service Uasin Gishu County. IOSR Journal of Business and Management (IOSR-JBM), 20(3), 26-32.

Cucolo, D. F., & Perroca, M. G. (2017). Assessment of the nursing care product (APROCENF): a reliability and construct validity study. Revista latino-americana de enfermagem, 25. https://doi.org/10.1590/1518-8345.1495.2860

Dartey-Baah, K., & Amoako, G. K. (2011). Application of Frederick Herzberg’s Two-Factor theory in assessing and understanding employee motivation at work: a Ghanaian Perspective. European Journal of Business and Management, 3(9), 1-8.

Ding, D., Lu, H., Song, Y., & Lu, Q. (2012). Relationship of servant leadership and employee loyalty: The mediating role of employee satisfaction. Ibusiness, 4(03), 208. https://doi.org/10.4236/ib.2012.43026

Ehnert, I., Parsa, S., Roper, I., Wagner, M., & Muller-Camen, M. (2016). Reporting on sustainability and HRM: A comparative study of sustainability reporting practices by the world's largest companies. The International Journal of Human Resource Management, 27(1), 88-108. https://doi.org/10.1080/09585192.2015.1024157

Fairlie, R. W., & Miranda, J. (2017). Taking the leap: The determinants of entrepreneurs hiring their first employee. Journal of Economics & Management Strategy, 26(1), 3-34. https://doi.org/10.1111/jems.12176

Figueiredo, E., Pais, L., Monteiro, S., & Mónico, L. (2016). Human resource management impact on knowledge management: Evidence from the Portuguese banking sector. Journal of Service Theory and Practice, 26(4), 497-528. https://doi.org/10.1108/JSTP-12-2014-0269

Frempong, L. N., Agbenyo, W., & Darko, P. A. (2018). The impact of job satisfaction on employees’ loyalty and commitment: a comparative study among some selected sectors in Ghana. European Journal of Business and Management, 10(12), 95-105.‏

Haider, M., Aamir, A., Hamid, A. A., & Hashim, M. (2015). A literature analysis on the importance of non-financial rewards for employees’ job satisfaction. Abasyn Journal of Social Sciences, 8(2), 341-354. https://doi.org/10.7748/ns.29.32.41.e8858

Halcomb, E., & Hickman, L. (2015). Mixed methods research. Nursing Standard (2014+), 29(32), 41.

Harrison, K. (2013). Why employee recognition is so important. Cutting Edge PR. Harting, D.(2010). Employees your most valuable asset. Retrieved January, 3, 2013.

Hassan, S. (2016). Impact of HRM practices on employee’s performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), 15-22. https://doi.org/10.6007/IJARAFMS/v6-i1/1951

Highhouse, S., Doverspike, D., & Guion, R. M. (2015). Essentials of personnel assessment and selection. Routledge. https://doi.org/10.4324/9781315690667

Hon, A. H., Chan, W. W., & Lu, L. (2013). Overcoming work-related stress and promoting employee creativity in hotel industry: The role of task feedback from supervisor. International Journal of Hospitality Management, 33, 416-424. https://doi.org/10.1016/j.ijhm.2012.11.001

Ibrahim, M., & Al Falasi, S. (2014). Employee loyalty and engagement in UAE public sector. Employee Relations, 36(5), 562-582. https://doi.org/10.1108/ER-07-2013-0098

Ineson, E. M., Benke, E., & László, J. (2013). Employee loyalty in Hungarian hotels. International Journal of Hospitality Management, 32, 31-39. https://doi.org/10.1016/j.ijhm.2012.04.001

Iqbal, A., Tufail, M., & Lodhi, R. (2015). Employee loyalty and organizational commitment in Pakistani organizations. Global Journal of Human Resource Management, 3(1), 1-11.

Jureidini, R. (2016). Ways forward in recruitment of low-skilled migrant workers in the Asia-Arab states corridor. ILO White Paper. International Labour Organization, ILO Regional Office for the Arab States.

Kabak, K. E., Şen, A., Göçer, K., Küçüksöylemez, S., & Tuncer, G. (2014). Strategies for employee job satisfaction: A case of service sector. Procedia-Social and Behavioral Sciences, 150, 1167-1176. https://doi.org/10.1016/j.sbspro.2014.09.132

Kathure, D. (2014). Influence of non-financial rewards on employee commitment at Kenya tea development agency. University of Nairobi.

Kaufman, T., Chapman, T., & Allen, J. (2013). The effect of performance recognition on employee engagement. Cicero Group.

Kee, H. P., Low, P. W., Ooi, C. K., Sam, M. K., & Teng, C. H. (2012). A study on the impacts towards the loyalty of the employee among the back of house staffs in hotel industry (Doctoral dissertation, UTAR).

Kullab, M. A., & Kassim, R. N. M. (2017). Determinants of Working Environment, Employee Loyalty and Employee Turnover of ICT-SME Industry. World Journal of Research and Review, 5, 06-08.

lfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model. The international journal of human resource management, 24(2), 330-351. https://doi.org/10.1080/09585192.2012.679950

Majid, M. A. A., Samsudin, A., Noorkhizan, M. H. I., Noor, S. N. A. M., & Zuffri, N. S. H. A. (2017). Career Development, Job Security and Employee Loyalty at a Luxury Resort in Terengganu, Malaysia. International Journal of Academic Research in Business and Social Sciences, 7(10), 667-674. https://doi.org/10.6007/IJARBSS/v7-i10/3422

Mamdani, K. F., & Minhaj, S. (2016). Effects of motivational incentives on employees’ performance: A case study of banks of Karachi, Pakistan. South East Asia Journal of Contemporary Business, Economics and Law, 9(2), 32-39.

Met, M., & Ali, I. (2014). Investigating the moderating effect of demographic factors on the relationship between monetary motivation and employees' job satisfaction at oil and gas offshore production facilities in Malaysia. International Review of Management and Business Research, 3(2), 788-818.

Mohajan, H. K. (2017). Two criteria for good measurements in research: Validity and reliability. Annals of Spiru Haret University. Economic Series, 17(4), 59-82. https://doi.org/10.26458/1746

Moideenkutty, U., Al-Lamki, A., & Sree Rama Murthy, Y. (2011). HRM practices and organizational performance in Oman. Personnel Review, 40(2), 239-251. https://doi.org/10.1108/00483481111106101

Nafei, W. A. (2014). Do job rotation and role stress affect job attitudes? A study from Egyptian context. American International Journal of Social Science, 3(1), 94-108.

Naveed, A., Ahmad, U., & Bushra, F. (2011). Promotion: A predictor of job satisfaction a study of glass industry of Lahore (Pakistan). International Journal of Business and Social Science, 2(16), 301-305.

Nguyen, P. D., Dang, C. X., & Nguyen, L. D. (2015). Would better earning, work environment, and promotion opportunities increase employee performance? An investigation in state and other sectors in Vietnam. Public Organization Review, 15(4), 565-579. https://doi.org/10.1007/s11115-014-0289-4

Observer, O. D. (2015). GCC Supply Chain and Logistics Conference 2015. Oman logistics. Oman’s Strategic Role as the GCC’s Gateway and Indian Ocean Rim Hum.

Parvin, M. M., & Kabir, M. N. (2011). Factors affecting employee job satisfaction of pharmaceutical sector. Australian journal of business and management research, 1(9), 113.

Pauceanu, A. M., Sanyal, S., & Hisam, M. W. (2016). Variables affecting employee satisfaction–evidence from sultanate of Oman. International journal of applied business and economic research, 14(01), 499-510.

Porkodi, S., & Jahan, U. (2015). Bank Employees’ Expectations of Training Programmes in Oman–An Exploratory Study. Research Journal of Commerce & Behavioral Science, 4(3), 92-100.

Prabhakar, A. (2016). Analysis of high job satisfaction relationship with employee loyalty in context to workplace environment. IJAR, 2(4), 640-643.

Ragel, S., & Ragel, V. R. (2017). The Effects of Job Rotation, Role Stress and Job Satisfaction on Organizational Citizenship Behavior of Bank Employees. Asian Journal of Economics, Business and Accounting, 4(3), 1-10. https://doi.org/10.9734/AJEBA/2017/36543

Samak, Y. T. M. A. (2016). The impact of apply transparency in recruitment process in achieving organizational loyalty: an empirical study of the telecommunication companies of Jordan. Arabian Journal of Business and Management Review (Oman Chapter), 6(5), 1. https://doi.org/10.12816/0036839

Saravani, S. R., & Abbasi, B. (2013). Investigating the influence of job rotation on performance by considering skill variation and job satisfaction of bank employees. Tehničkivjesnik, 20(3), 473-478.

Schlechter, A., Thompson, N. C., & Bussin, M. (2015). Attractiveness of non-financial rewards for prospective knowledge workers: An experimental investigation. Employee Relations, 37(3), 274-295. https://doi.org/10.1108/ER-06-2014-0077

Sekyi, E., Boakye, N., & Ankumah, F. (2016). Analysing the Factors Influencing Employee Loyalty in the Hotel Industry in Takoradi, Ghana. Journal of Tourism, Hospitality and Sports, 18, 44-49.

Shonubi, O. A., Abdullah, N., Hashim, R., & Ab Hamid, N. B. (2016). Recognition and Appreciation and the Moderating Role of Self-esteem on Job Satisfaction and Performance among IT Employees in Melaka. Journal of Health Science, 4, 221-227. https://doi.org/10.17265/2328-7136/2016.05.001

Singh, P., & Twalo, T. (2015). Mismanaging unethical behaviour in the workplace. Journal of Applied Business Research, 31(2), 515. https://doi.org/10.19030/jabr.v31i2.9150

Singhal, M., Tiwari, M. S., Rajput, M. S., & Saxena, M. S. (2016). Job Satisfaction And Employee Loyalty: A Study Of Academicians. Asian J. Management, 7(2), 159-163.‏ https://doi.org/10.5958/2321-5763.2016.00015.9

Swailes, S., & Al Fahdi, S. (2011). Voluntary turnover in the Omani public sector: an Islamic values perspective. International Journal of Public Administration, 34(10), 682-692. https://doi.org/10.1080/01900692.2011.583770

Tahir, N., Yousafzai, I. K., Jan, S., & Hashim, M. (2014). The Impact of Training and Development on Employees Performance and Productivity A case study of United Bank Limited Peshawar City, KPK, Pakistan. International Journal of Academic Research in Business and Social Sciences, 4(4), 86. https://doi.org/10.6007/IJARBSS/v4-i4/756

Tausif, M. (2012). Relationship between Intrinsic Rewards and Job Satisfaction: A Comparative Study of Public and Private Organization. International Journal of Research in Commerce, IT and Management, 2(6), 11-19.

Tessema, M. T., Ready, K. J., & Embaye, A. B. (2013). The effects of employee recognition, pay, and benefits on job satisfaction: cross country evidence. Journal of Business and Economics, 4(1), 1-12.

Tomic, I., Tesic, Z., Kuzmanovic, B., & Tomic, M. (2018). An empirical study of employee loyalty, service quality, cost reduction and company performance. Economic Research-EkonomskaIstraživanja, 31(1), 827-846. https://doi.org/10.1080/1331677X.2018.1456346

Varma, A. J., Patil, K., & Ulle, R. S. (2018). An Empirical Study on Job Satisfaction and Employee Loyalty. Journal of Emerging Technologies and Innovative Research (JETIR), 5(8), 784-791.

Vinayan, J. (2015). Vulnerability of HR Systems and Practices to Corruption: A Review and Research Agenda. Editorial Team, 7(1), 25.




DOI: https://doi.org/10.5296/ijhrs.v10i3.16876

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

Copyright © Macrothink Institute   ISSN 2162-3058

'Macrothink Institute' is a trademark of Macrothink Institute, Inc.