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Impact of Human Resource Management Policies and P

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Impact of Human Resource Management Policies and P

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© © All Rights Reserved
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29

RESEARCH ARTICLE
Volume-10 | Issue-3 | Jul-Sep-2024|
VEETHIKA-An International
Interdisciplinary Research Journal
E-ISSN: 2454-342x
Peer Reviewed
URL: https://veethika.qtanalytics.in
Impact of Human Resource Management Policies and Practices on
Employee Motivation, Commitment and Performance

Gopal Man Pradhan1, Prakash Shrestha2* , Keshab Khadka3


1
Associate Professor, Bhaktapur Multiple Campus, Tribhuvan University, Nepal
2
Associate Professor, Nepal Commerce Campus, Tribhuvan University, Nepal
3
Assistant Professor, Graduate School of Management, Mid- West University, Surkhet, Nepal
Orcid Id: 20000-0002-6973-9343, 30009-0005-9485-4473
*Corresponding Author Email: [email protected]
Received: 29 August 2024, Revised: 18 September 2024, Accepted: 22 September 2024, Published: 30 September 2024

ABSTRACT: The primary goal of this study is to demonstrate how human resource management (HRM) policies and
practices, which include employee job status, job security, internal promotion, and individualized rewards, have a
substantial impact on employee motivation and commitment and their level of performance in the organization. Employees
of commercial banks, insurance companies and financial companies at the managerial and assistant levels were included in
this study. According to the study, there is a substantial and positive association between HRM policies and practices with
that of employee motivation, and commitment. Similarly, a high level of employee motivation and commitment would
contribute to the improvement of their level of performance in the institution as they accomplish the allocated duty based
on their best efficiency, ability, and knowledge. It is the reason that management of the organization needs to focus on the
improvement of employee job status, job security, internal promotion, and individualized rewards along with other
variables of HRM policies and practices so that employees would feel motivated and committed to the accomplishment of
assigned jobs. It is essential for the improvement of employee performance and also the overall performance of the
organizations so that they can sustain and perform business activities in society for a long duration of time.
KEYWORDS: Job status, job security, internal promotion, individualized rewards, motivation, and commitment

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1. INTRODUCTION as well as the development of human communities'
In the present competitive business environment, highlight the idea that a community cannot be
manpower is said to be a potential asset of the considered developed until its human resource needs
organization, and the motivation and commitment of have been fulfilled. The research conducted by Mira et
which would be supportive of the competitive al. (2019) showed the noteworthy and favorable
strengths of the organization in the market. For this impacts of human resource management (HRM)
purpose, it is necessary to take some measures such as practices, particularly those related to social support,
job status, job security, internal promotion recruitment and selection, job analysis, worker
individualized rewards, and other career development empowerment, training and development, worker
programs and rewards for improving and maintaining a relations, and rewards, on employee performance. This
level of motivation and commitment of the employees result is consistent with the findings of Etaan and Jain
along with improving their level of performance. (2019), who showed that HRM practices, specifically,
Human resource management (HRM) plays a pivotal performance appraisal, sourcing work for training and
role in enhancing organizational performance development, and reward management had a favorable
(Huselid, 1995). Moreover, the functions of HRM, impact on worker performance.
encompassing training and development, employee Furthermore, Ngwenya and Aigbavboa (2017)
engagement, performance evaluation, compensation, demonstrated how particular HRM strategies enhanced
job security, and recruitment, have been correlated workers' productivity and job execution in a building
with outcomes pertaining to organizational firm. They emphasized how well HRM procedures had
performance (Wildan, 2023), which encompass, but improved productivity and work performance.
are not limited to employee competencies, motivation Additionally, the survey discovered that contented
levels, commitment, quality of work, overall workers performed their jobs better. Consequently,
performance, and opportunities for contribution HRM procedures effectively and efficiently manage
(Lepak et al., 2006; Liao et al., 2009). personnel to achieve the organization's key objectives
Human resources management involves an organized, (Zafar et al., 2018). However, Al Damoe et al. (2017)
cohesive, and strategic approach to people's have shown in a study that businesses adopting HRM
employment, growth, and welfare in functioning techniques can achieve important HR outcomes. The
businesses. Other definitions include the method by study by Lim and Ahmad (2021) demonstrated the
which management develops the workforce and makes important and advantageous effects of HRM practices
an effort to produce the human performances required on worker performance, particularly with regard to
by the organization, as well as a special kind of work-life balance, training and development, and pay
employment management that seeks to gain an and benefits. Similarly, Hee and Jing (2018) studied
advantage over competitors by strategically that how HRM practices such as work-life policies,
implementing a highly competent and dedicated compensation and benefits, performance appraisal, and
workforce (Shrestha & Prajapati, 2024; Shrestha & training and development can affect workers'
Prajapati, 2023) through a range of personnel, productivity. Employee performance was closely
structural, and cultural approaches (Armstrong, 2016; linked to training and development, job stability, work
Agustian, et. al, 2023; Shrestha, 2024). It is evident status, personalized rewards, employee promotion, and
that human resource management plays a significant performance evaluation.
role in modern business management, which views Authors of human resource policies and practices have
incentives as one of the most crucial components in discovered that, among other things, having a skilled
raising employee performance in companies. Gunn and knowledgeable labor force is an essential
(2018) elucidates the connection between motivation component of developing companies and nations.
and accountability. According to the author, granting Respecting their demands and how management
employees greater responsibility, which is satisfies them can therefore result in HR job
accomplished through promotion, can inspire them. satisfaction and, ultimately improve their commitment
Stability in one's job might enhance an employee's towards the organization. A measure of an employee's
attitude toward the company. The findings of critical involvement at work is called job satisfaction (Woo et
studies on the function and significance of human al., 2005). It is crucial to look into employees' job
force in the growth and development of organizations satisfaction because work has become a significant

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part of their lives and has a lasting impact on them in status, job security, internal promotions, customized
terms of penetration on satisfaction as well as the role reward programs, working conditions, teamwork
that job dissatisfaction plays on organizations and even structures, and more. However, in the majority of
society (Kurdi, et. al., 2020). Nepalese firms, the importance of employment status,
In most organizations, a variety of HRM policies and job stability, internal advancement, and a customized
practices may have an impact on employee compensation system on these factors is decreasing. It
commitment and motivation. Employment status, job indicates a shift in organizational policy toward
security, hiring and selection, training, rewards, contract work. Since job security is one of the most
advancement, flexible work hours, career significant HR elements, it is planned to investigate the
development, organizational values and beliefs, effect of job security on commitment and satisfaction,
support, work-life balance, location, working which are effective factors in organizational
conditions, social environment, respect and effectiveness. Numerous academics contend that
recognition, and organizational justice and prestige are fostering a less secure environment could lower
some of the factors affecting employee motivation, motivation at work, organizational commitment, and
commitment and their level of performance. Numerous productivity (Battaglio, 2010; Qu et. al. 2024). On the
researchers in the fields of management and social one hand, work satisfaction is an independent variable
science have examined the impact of various factors that influences dependent variables like return,
on the motivation, commitment, and performance absenteeism, turnover, leaving the service, and how
levels of employees within an organization. Many people behave in social, cultural, and political contexts
management scholars have studied the impact of job as well as in society at large (Hunjira et al., 2010).
status, job security, internal promotion individualized However, it is a dependent variable that is influenced
rewards and various HRM practices and policies on by factors including pay, perks, relationships with
employee motivation and commitment and their level superiors and coworkers, job stability, and type of
of performance (Shrestha 2024). However, there is a employment. Furthermore, workers' dedication to their
lack of research about the impact of such specific work awakens their working consciousness, which
HRM policies and practices in the context of Nepalese improves performance and rationalism since it
service sector institutions on employees’ motivation strengthens faith (Steers et al., 1993; Ozer and Gunluk,
and commitment which would maintain their level of 2010). There are good theoretical grounds to believe
performance in the organization. that a decline in job security may displace or minimize
Based on the above study and analysis of the research intrinsic motivation and lower employee morale.
gap, the research questions taken under this study According to research, employees' feeling of job
include what is the status of HRM policies and security decreases when civil service safeguards are
practices (such as job status, job security, internal weakened, and this has a detrimental effect on their
promotion, and individualized reward system loyalty to the company (Yang & Kassekert, 2009).
practices) in the service sector institution?, what is the Furthermore, studies show that a sense of job stability
relationship between employee job status, job security, increases a worker's loyalty to the company, which can
internal promotion, and individualized reward with result in better worker output (Coggburn et al., 2010;
that of employee motivation and commitment and their Gossett, 2003). Employee job security was decreased
level of performance?, what is the impact of employee by the job security-related regulation modification and
job status, job security, internal promotion, and implemented as part of the personnel structure, which
individualized reward on employee motivation and in turn undermined organizational commitment (Hur &
commitment and their level of performance?. Perry, 2019). Organizational commitment, according
to Meyer and Allen (1991), is the degree to which a
2. LITERATURE REVIEW worker identifies with a specific organization and
A worker's commitment and motivation may be participates in its operations. It is assumed that
impacted by a number of variables, including hiring dedicated workers would put forth more effort at work,
and selection, performance reviews, employment which is why there is a correlation between

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organizational commitment and workers' work effort with the company. Continuance Commitment is
and performance (Mowday, Porter, & Steers, 1982). associated with the perceived expense of departing
An increasing amount of research is pointing to a from the company. High continuation commitment
connection between different organizational workers don't leave because they believe they have any
performance metrics and what are known as high- other options or because staying will save them more
performance or high-commitment human resource money than leaving would. The sense of duty to stick
management (HRM) practices (Guest, 1997). with the organization is known as normative
Motivation: It is a human psychological aspect. It is commitment. High normative commitment employees
the process of motivating and inspiring people to believe they should stick around for moral or ethical
complete the task at hand to the best of their abilities. grounds. Since employee organizational commitment
It is the process of instilling a willingness in the staff is a strong indicator of work motivation and
to do the tasks at hand as effectively as feasible. It is performance and one of the most significant indicators
the process of motivating staff to put up their best of employee work morale, the study focuses on it
effort in order to meet company goals. Humans take (Boardman & Sundquist, 2009; Caillier, 2012; Locke,
action to satisfy their societal and basic requirements. 1997; Wright, 2004).
In other words, workers fulfill their duties efficiently Performance: Employee performance encompasses
to fulfill their needs, desires, and wishes. The ability, knowledge, motivation, personality, attitude,
management uses motivation as a tool to understand and work ethic, as well as the work environment and
why and how employees interact and perform in relationships between the company and its employees.
accordance with organizational requirements. It The ultimate goal is to improve employee performance
invigorates subordinates' conduct and guides them and increase employee passion and enthusiasm at
toward the accomplishment of shared objectives. work. Individual qualities, including aptitudes,
According to Stoner et al. (1996), motivation is the interests, and personality traits, and effort level—
readiness to put in a high degree of effort to achieve which includes drive, work ethic, attendance, and job
organizational goals, contingent on the effort's design—are the first elements that impact employee
capacity to meet a personal need. According to Koontz success. Thirdly, the support he received from the
and Weihrich (1990), the term "motivation" refers to a company in the form of work standards, technology
broad range of impulses, goals, needs, wishes, and and equipment, work environment, training and
other comparable forces that prompt an individual or development, and employee-organization interactions.
group of individuals to work. A large number of According to Yulasmi (2016), performance is the
researchers are involved in the field of motivational quality and quantity of work achieved by employees in
research. Numerous academics have shared their carrying out their duties following the responsibilities
perspectives on employee motivation. These theories given to them. The indicators of measuring employee
involve need hierarchy, two factors, equity, ERG, performance in respect of recruitment, selection, and
Expectancy theory, etc. training are adjusted to the interests of the organization
Commitment: A key element in the success of an itself.
organization is employee dedication. In general, it Job status: Employee job status refers to the
describes how passionate and committed a worker is to classification or type of employment an individual
their job and the company they work for. Long-term holds within an organization. It can impact various
retention, excellent work environments, and exceeding aspects of their work experience, including job
job requirements indicate committed employees. There security, benefits, and work responsibilities. Key job
exist distinct categories of employee commitment, status may include permanent, contract, full-time, part-
which include normative, continuous, and affective time, temporary, intern, and so on. It also includes the
commitment. An emotional connection to the position and job responsibility that the employee
organization is known as affective commitment. obtained and devoted while working in the
Because they sincerely desire to stay in their positions, organization. Understanding an employee's job status
employees with strong affective commitment stick is crucial for managing expectations, legal compliance,

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and providing appropriate benefits and support. It also organization. The common components of internal
affects how performance evaluations, promotions, and promotion consist of career development, retention,
other employment practices are handled. What is the improved experience and knowledge, improved
job status of the employees in the organization that can efficiency, reduced cost, maintaining employee
have an impact on their motivation, commitment, and morale, support for succession planning, understanding
level of performance? company culture and system, performance evaluation,
Hypothesis 1: There is a significant and positive and support to face risks and challenges. Usually,
relationship and impact of employee job status with internal promotion is a strategic decision for managing
that of employee motivation, commitment, and level talents that would be beneficial both to the employees
of performance. and also to the organization for its growth and
Job security: Job security refers to the assurance to sustainability. According to Setyawati et al. (2022),
the employees that they will remain in their job for a promotion is the transition from one position to a
long duration of time. It encompasses the stability and higher one with more status and responsibilities.
predictability of one's employment situation. The Promotional activities have a significant part in
major components of job security consist of employees' aspirations to rise above their current
employment stability, long-term employment, long positions and experience an improvement in their level
contracts and agreements, skill relevance, legal of living. A promotion is an indication that an
protection of the job, maintaining stable revenue, employee's ability to hold a more senior role is valued
understanding company culture, and improving and acknowledged. The greatest incentive for staff
productivity. It is crucial for workers because it offers members is promotion; with this drive, they will
them financial security, peace of mind, and the compete healthily. Aside from a pay raise, this is a
freedom to make plans for the future without having to powerful incentive. Employees are encouraged to
worry about losing their jobs all the time. On the other enhance their performance and establish job stability
hand, employers can benefit from increased inside the organization through promotions.
productivity, employee loyalty, and overall Organizations that emphasize the value of promotions
organizational effectiveness. The job insecurity theory and their accompanying benefits can better understand
(Ashford, Lee, & Bobko, 1989; Greenhalgh & how employees view promotions and how recognition,
Rosenblatt, 1984) provides the most evidence in favor appreciation, and a sense of belonging, rather than just
of this viewpoint. Subjective threats to an employee's money, motivate workers to do their jobs more
employment position are referred to as job insecurity. effectively (Castelino, 2021).
Usually, an employee's impression of an objective Hypothesis 3: There is a significant and positive
threat is the source of the threat. Because of this, relationship and impact of employee internal
academics contend that job insecurity will inevitably promotion with that of employee motivation and
influence workers' attitudes and actions, which will commitment and their level of performance.
subsequently impact their dedication, contentment, Individualized reward: Individualized rewards are a
output, attrition, and resistance to change (Bosman, management strategy used in organizations to provide
Buitendach, & Laba, 2005). recognition and compensation to the specific
Hypothesis 2: There is a significant and positive preferences, motivations, and achievements of
relationship and impact of employee job security individual employees. This strategy acknowledges that
with that of employee motivation and commitment people are motivated by different things and that
and their level of performance. employees need to provide various forms of rewards
Internal Promotion: Internal promotion is the process and benefits based on time, situation, requirement, and
of providing higher-level job responsibility to level of performance. The common aspects of
employees based on their qualifications, experience, individualized rewards consist of performance-based
and capability. It is often used to reward and retain incentives, fulfilling career goals, motivation, based on
talented employees to leverage their existing performance feedback, and flexibility based on time
knowledge and experience for the productivity of the and requirement. When rewards align with individual

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preferences, employees are more likely to feel valued elements, such as employee employment status, job
and motivated and it boosts their engagement in the security, internal advancement, and customized
job by making them feel that their contributions are rewards, are taken into consideration in this
recognized by the management. Similarly, when research. Besides, HR outcomes have been measured
employees are motivated by rewards that matter to in terms of employee motivation and commitment and
them, they may be more inclined to perform at a higher their level of performance.
level and they are more likely to remain in the
In this study, the main focus is to maintain a
organization for a long duration time. However, for the
correlation between employee job status, job security,
successful implementation of an individualized reward
internal promotion, and individualized rewards with
system, it is required to formulate an effective plan to
that of employee motivation and commitment and their
ensure fairness and effectiveness.
level of performance. In this study, employees from
Hypothesis 4: There is a significant and positive five commercial banks, five insurance companies, and
relationship and impact of employee individualized five finance companies were taken into account as
rewards with that of employee motivation and samples to analyze. Commercial banks include NIC
commitment and their level of performance. Asia Bank Ltd, Nepal SBI Bank Ltd, Rastriya
Banijaya Bank, and Nepal Bank Ltd., similarly,
Figure 1. Theoretical Framework
insurance companies include LIC Nepal, and
Motivation
Himalayan Everest Ltd. National Insurance Company
HRM policies and Ltd, Asian Life Insurance Ltd., and Siddhartha
practices Insurance Ltd., and finance companies include
• Job Status Employee Goodwill Finance Ltd., Srijana Finance Ltd., Central
• Job security performance Finance Ltd., Nepal Finance Ltd., and Janaki Finance
• Internal Ltd. In this survey research, information was collected
promotion
by focusing on HRM policies and practices of the
• Individualized
rewards Commitment organization and their correlation with employees'
motivation and commitment and their level of
performance. This study used questionnaire developed
3. RESEARCH METHODOLOGY by Guest (1997).
The main objective of this study is to explore the status The total number of respondents taken for the study
of employee job status, job security, internal was 425 including both managerial and assistant level
promotion, and individualized rewards. Besides, its employees. Out of a total of 425 respondents, 176 were
objectives are to examine the relationship between from four commercial banks, 131 were from insurance
employee job status, job security, internal promotion, companies, and the remaining 118 were from finance
and individualized rewards with that of employee companies. The following table shows the detailed
motivation and commitment and their performance. It information of sample respondents taken for research
is also concentrated on analyzing the impact of work:
employee job status, job security, internal promotion,
Table 1. Particulars of Sample Institutions and
and individualized rewards on employee motivation
Respondents
and commitment along with their performance.
Particulars /No. of Commercial Insurance Finance Total
Nature and sources of data: The primary data used in respondents Banks Companies Companies
this study were gathered by distributing questionnaires No of sample 5 5 5 15
Institutions 192 162 141 495
to convenient respondents. As such, the research is of No. of questionnaire 176 131 118 425
the descriptive, correlational, and causal comparison distributed 92% 81% 84% 86%
types. To gather input from managerial and assistant- No. of response
received
level employees of banks, insurance, and financial Percentage of
companies, certain HRM policies and practices respondent

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The sample institutions were selected on a judgmental years, 24.47 percent between 45 to 54 years, and 18.59
sampling approach, in which rather than the statistical percent represents above 55 years. Regarding job level,
logic, convenience and relevancy were focused. 54.35 percent represents to clerical level, 31.53 percent
Though 495 questionnaires were distributed, only the officer level, and 14. 12 percent are at the managerial
responses of 425 questionnaires were received which level. Regarding sources of information 50.12 percent
were used in this study as they were in usable form. is collected through personal visits to the respondents,
The study is based on cross-sectional analysis. 24.00 percent through friends and relatives, and 25.88
percent is collected through the internet online. For
Table. 2 Profile of respondents
annual income level, 5.88 percent of respondents have
Item Freq % Item Freq % annual income less than Rs. 250,000, 13.18 percent
Gender Marital
Male 244 57.41 status 123 28.94 have between Rs.250,001 to Rs.500,000, 48.00 percent
Female 181 42.59 Single 260 61.18 have between Rs.500,001 to Rs.750,000, 24.24 percent
Married 42 9. 08
Divorce
have income level between Rs.750,001 to
Education Age Rs.10,00,000 and 8.70 percent have income level
School Level 34 8.00 Under 20 24 5.65 above Rs.10,00,000. Regarding work experience
Bachelor 225 52.94 years 106 24.94
Master 151 35.53 21 – 34 112 26.35 17.88 percent of respondents have up to 5 years, 29.18
Others 15 3. 53 years 104 24.47 percent have between 6-15 years, 26.35 percent have
35 – 44 79 18.59
years between 16 to 25 years, 20.71 percent have between 26
45 – 54 to 30 years, and 5.88 percent of respondents have
years
experience above the 30 years.
55 and
above
Research Design: Descriptive correlation and casual
Job level Information
Clerical 231 54.35 source 213 50.12 comparative research designs are used in this study to
Officer 134 31.53 Personal 102 24.00 analyze the various issues raised in the research work.
Managerial 60 14. visit 110 25.88
12 Friends In the context of HRM practices, such as employee job
Internet status, job security, internal promotion, and
Online
Annual income Work
individualized rewards with that of employee
level 25 5.88 experience 76 17.88 motivation, commitment, and their impact on the level
Less than Rs. 56 13.18 0 – 5 years 124 29.18 of performance of the employees in service sector
250,000 204 48.00 6- 15 years 112 26.35
Rs. 250,001 to 103 24.24 16- 25 88 20.71 institutions, the descriptive research design is used for
Rs. 500,000 37 8.70 years 25 5.88 fact-finding, conceptualization, description, and
Rs. 500,001 to 26 – 30
Rs. 750,000 years operation searching for adequate information. To
Rs. 750,001 to Above 30 determine the association between HRM practices of
Rs. 10,00,000 years employee job status, job security, internal promotion,
Above Rs.
10,00,000 individualized rewards, and employee motivation,
commitment, and performance, this study has
Table 2 shows the detailed profile of all the
employed a correlation research approach. The
respondents from different perspectives such as
research design adopted designed used by Guest
gender, marital status, education, age, job level,
(1997). The business organizations under this study
income level, information, sources, and work
were comprised of banks, insurance, and finance
experiences. Regarding gender 57.41 percent represent
companies.
male whereas 42.59 percent are female. Regarding
marital status 28.94 percent are single, 61.18 percent Statistical Tools and Analysis: To analyze data, a few
are married and 9. 08 are diverse. For education level, fundamental statistical and general quantitative
8.00 percent have completed school level, 52.94 methods are used. The mean, standard deviation, and
percent bachelor level, 35.53 percent master level, and analysis of variance are the statistical methods used in
3. 53 percent above the master level. For age group, data analysis. Correlation analysis is also used to
5.65 percent represents under 20 years, 24.94 percent illustrate the link between the variables being studied.
between 21 to 34 years, 26.35 percent between 35-44 The dependability of the data is assessed by measuring

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the Cronbach's Alpha. The goodness of fit and the Table 3. Descriptive Statistics and Reliability Analysis
existence of a significant difference between the means SN HRM Practices Min Max Mean SD Alpha
of the variables under investigation are assessed using 1 Job Status 1 5 3.82 0.92 0.85
the F test. Pearson correlation and descriptive statistics 2 Job Security 1 5 4.33 0.96 0.84
Internal 0.81
were used to analyze the data numerically because this 3
Promotion
1 5 4.21 0.95
study found a relationship between HRM policies and 4
Individualized
1 5
3.76 0.93 0.72
practices and employees' motivation, commitment, and Rewards
Employee 3.08 0.81 0.75
performance level through HRM policies and practices 5 1 5
Motivation
such as work status, job security, internal promotion, 6
Employee
1 5
3.36 0.86 0.78
Commitment
and customized rewards. EViews 6 and SPSS 13 were Employee 3.45 0.84 0.78
7 1 5
two of the software tools used for data analysis. Performance

In this section of the study, convenience respondents' Table 3 shows the result of minimum, maximum,
questionnaire responses to primary data collection means, standard deviation, and Cronbach’s Alpha of
were analyzed. Presenting the descriptive, both independent and dependent variables based on
correlational, and causal analyses of the existence of analysis of the opinions of respondents. All the study
HRM practices in institutions serving the service variables showed a positive rating and overall good
sector is the main goal of this section of the data reliability because Cronbach’s Alpha of all the
analysis. The goal of the descriptive study design is to variables is above 70 percent. The job status has a
gather information about the context of HRM policies mean value of 3.82(D=0.92) and the highest internal
and practices, employee commitment and motivation, consistency (CA=0.85). The job security has a mean
and performance levels. In order to determine the value of 4.33(SD=0.96) and has a good internal
association between HRM practices and policies with consistency (CA=0.84). The internal promotion has a
that of employee commitment and motivation, and mean value of 4.21(SD=0.95) and has an acceptable
performance level, this study also used a correlation internal consistency (CA=0.81). The individualized
research methodology. The employment status, job rewards have a mean value of 3.76 (SD=0.93) and
security, internal promotion, and individualized have an acceptable internal consistency (CA=0.75).
rewards of employees are among the HRM policies The employee motivation has a mean value of
and practices examined in this study. 3.08(SD=0.81) and an acceptable internal consistency
(CA=0.75). The employee commitment has a mean
4. RESULTS AND FINDINGS
value of 3.36(SD=0.86) and a good internal
Descriptive and Reliability Analysis consistency (CA=0.84) and similarly, the employee
performance has a mean value of 3.45(SD=096) and
This section presented the position job status, job
an acceptable internal consistency (CA=0.78). The
security, internal promotion, and individualized
overall variables showed reliable scales, with
rewards along with employee motivation,
Cronbach’s alpha values ranging from 0.72 to 0.85.
commitment, and performance in service sector
Similarly, the mean scores for the items range between
institutions of Nepal. These service sector institutions
3.08 and 4.33, which suggests generally high ratings.
include commercial banks, insurance, and finance
Standard deviations vary from 0.81 to 0.96, indicating
companies. For determination of position and
few variabilities in responses. The minimum and
reliability of job status, job security, internal
maximum values range from 1(highly satisfied) to 5
promotion, individualized rewards, employee
(highly dissatisfied) scale.
motivation, commitment, and performance, based on
participant-rated level of agreement or disagreement Pearson and Spearman Rho Correlation
with each statement, a 5-point Likert scale and
The table shows an association between various
statistical tools such as maximum, minimum Mean,
dependent factors consisting of Job Status (JS1), Job
Standard Deviation, and Cronbach Alpha are taken
Security (JS2), Internal Promotion (IP), Individualized
into calculation.
Rewards (IR) with Employee Motivation (EM),

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Employee Commitment (EC), and Employee The study of the regression table provides the
Performance (EP). Between dependent and regression results of the effect of HRM policies and
independent variables, the upper bound displays the practices such as employee job status, job security,
parametric Pearson correlation coefficient, and the internal promotion, and individualized rewards on
lower bound, the non-parametric Spearman correlation employee motivation in service sector institutions.
coefficient. The P-value, which indicates the
Table 5. Regression Analysis of HRM Practices and
coefficient is significant at the 5% and 1% levels, is
Employee Motivation
shown in parenthesis.
Unstandardized
Table 4. Pearson correlation Model Coefficients
t
Beta
Sig.
Std.
JS1 JS2 IP IR EM EC EP B Error
0.000
JS1 1 (Constant) 4.254 0.679 4.261 **
JS2 0.328 0.142 0.012
(0.000) 1
Job Status (JS1) 0.112 0.067 2.102 *
IP 0.422 0.391 Job Security 0.175 0.015
1 (JS2) 0.135 0.048 2.023 *
(0.000) (0.000)
Internal 0.151 0.023
IR 0.341 0.352 0.411 Promotion (IP) 0.125 0.051 2.022 *
1
(0.035) (0.039) (0.000) Individualized 0.212 0.006
EM 0.612 0.511 0.321 0.421 Rewards (IR) 0.187 0.023 2.121 **
(0.022) (0.005) (0.037) (0.005) 1 R= 0.372, R2= 0.345, Adjusted R2= 0.325, F- Value= 22.721
Note: *p<0.05, **p<0.01
EC 0.589 0.523 0.378 0.356 0.434 1
(0.009) (0.039) (0.043) (0.024) (0.032) a. Dependent Variable: Employee Motivation
EP 0.644 0.521 0.423 0.465 0.576 0.621 1 EM= βo+ β1 JS1+ β2 JS2+ β3IP + β4 IR + è
(0.042) (0.049) (0.036) (0.039) (0.045) (0.042) = 4.254 + 0.112 JS1 + 0.135 JS2 + 0.125 IP +
Note: JS1: Job status; JS2: Job security; IP: Internal promotion; 0.187 IR +e
IR: Individualized rewards; EM: Employee motivation; EC:
T = (4.261), (2.102), (2.023), (2.022), (2.121)
Employee commitment; EP: Employee performance
p- value = 0.000**, 0.012*, 0.015*, 0.023*, 0.006**
The above correlation table shows the Pearson R= 0.372, R2= 0.345, Adjusted R2= 0.325, F-Value=
correlation and Spearman rho association of human 22.721
resource management policies and practices consisting Overall p-value = 0,000**
of employee job status, job security, internal
The R2 is 0.345. This indicates that this approach only
promotion, individualized rewards with that of
accounts for 34.5% of the total variety, with other
employee motivation and commitment, and their level
elements not included in the research work accounting
of performance. The Pearson correlation shows that
for some of the description. The total p-value is 0.000,
there are significant and positive correlations between
and the F-value is 22.721. The F-value is significant at
employee job status, job security, internal promotion,
a 5% level of significance, as indicated by the ANOVA
and individualized rewards of employee motivation.
table, indicating that the multiple regression model
Similarly, there is a significant and positive correlation
utilized in this study is fit and suitable. The calculated
between employee job status, job security, internal
p-values of employee job status, job security, internal
promotion, and individualized rewards of employee
promotion, and individualized rewards are 0.012,
commitment. It is also indicated that their a positive
0.015, 0.023, and 0.006 respectively which are
correlation between employee motivation and
noteworthy at a 5% level of significance. Therefore, all
commitment with that of their level of performance in
four factors are the forecasters of the motivation of
the organization. Similarly, the outcome also showed
employees. While studying the beta coefficient, one
that there is a high constructive association between
variable individualized rewards compassion to
job status and employee motivation, commitment, and
employee motivation is highly positive (0.212),
level of performance.
similarly, all other variables have also a positive
Regression results of HRM policies and practices on impact on employee motivation. The result suggested
employee motivation that there is a positive association between HRM

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policies and practices with that of employee one factor which is individualized rewards sensitivity
motivation. to employee commitment is highly positive (0.254),
similarly, all other factors have also a positive effect on
Regression results of HRM policies and practices on
employee commitment. The outcome recommends that
employee commitment
there is a positive relationship between HRM policies
The study of the regression table provides the and practices of employee commitment.
regression results of the effect of HRM policies and
Regression results of HRM policies and practices on
practices such as employee job status, job security,
employee performance
internal promotion, and individualized rewards on
employee commitment to service sector institutions. The study of the regression table provides the
regression results of the effect of HRM policies and
Table 6. Regression Analysis of HRM Practices and
practices such as employee job status, job security,
Employee Commitment
internal promotion, and individualized rewards on
Unstandardized
Model Coefficients Bet
employee performance of service sector institutions.
t Sig.
a
B Std. Error Table 7. Regression Analysis of HRM Practices and
0.000
Employee Performance
(Constant) 4.123 0.579 4.243 **
0.13 0.016 Unstandardized
Job Status (JS1) 0.121 0.059 2.112 * Model Coefficients Beta
t Sig.
0.17 0.019 Std.
Job Security (JS2) 0.134 0.046 2.053 * B Error
Internal Promotion 0.18 0.027 4.12 0.000
(IP) 0.121 0.053 2.062 * 1 (Constant) 4.221 0.534 1 **
Individualized 0.25 0.008 2.13 0.16 0.015
Rewards (IR) 0.167 0.035 2.128 ** Job Status (JS1) 0.115 0.069 2 4 *
R= 0.354, R2= 0.334, Adjusted R2= 0.313, F- Value= 22.523 2.05 0.17 0.017
Note: *p<0.05, **p<0.01 Job Security (JS2) 0.145 0.067 6 8 *
Internal 2.06 0.19 0.021
a. Dependent Variable: Employee Commitment Promotion (IP) 0.156 0.065 4 1 *
EC= βo+ β1 JS1+ β2 JS2+ β3IP + β4 IR + è Individualized 2.14 0.25 0.005
Rewards (IR) 0.178 0.045 8 8 **
= 4.123 + 0.121 JS1 + 0.134 JS2 + 0.121 IP + 0.167 R= 0.324, R2= 0.312, Adjusted R2= 0.302, F- Value= 22.545
IR +e Note: *p<0.05, **p<0.01
T = (4.243), (2.112), (2.053), (2.062), (2.254) a. Dependent Variable: Employee Performance
p- value = 0.000**, 0.016*, 0.019*, 0.027*, 0.008** EP= βo+ β1 JS1+ β2 JS2+ β3IP + β4 IR + è
R= 0.354, R2= 0.334, Adjusted R2= 0.313, F-Value= = 4.221 + 0.1115 JS1 + 0.145 JS2 + 0.156 IP + 0.178
22.523 IR +e
Overall p-value = 0,000** T = (4.121), (2.132), (2.056), (2.064), (2.258)
p- value = 0.000**, 0.015*, 0.017*, 0.021*, 0.005**
The R2 is 0.334. It demonstrates that this model R= 0.324, R2= 0.312, Adjusted R2= 0.302, F-Value=
accounts for close to 33.4% of the overall variation, 22.545
with additional components not included in this Overall p-value = 0,000**
research effort accounting for a portion of the
The R2 is is 0.312. It indicates that around 31.2% of the
description. The total p-value is 0.000, and the F-value
overall variation is explained by this method, with
is 22.523. The F-value is significant at a 5% level of
other factors accounting for the remaining portion not
significance, as indicated by the ANOVA table,
covered by the study. There is an overall p-value of
indicating that the multiple regression model utilized
0.000 and an F-value of 22.545. The ANOVA table
in this study is fit and suitable. The calculated p-values
indicates that the F-value is notable at a 5% level of
of employee job status, job security, internal
significance, indicating that the multiple regression
promotion, and individualized rewards are 0.016,
strategy utilized in this study effort is appropriate and
0.019, 0.027 & 0.008 reverently which are noteworthy
fit. Employee employment status, job security, internal
at a 5% level of significance. Therefore, all the four
advancement, and customized rewards had computed
factors are the forecasters of the employee
p-values of 0.015, 0.017, 0.021, and 0.005,
commitment. While examining the beta coefficient,
respectively, which are significant at the 5% level of

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significance. Therefore, all the four factors are the the formulation and revision of HRM policies and
forecasters of the employee performance. While practices so that they may feel that their needs are
examining the beta coefficient, one variable taken care of. It recommends that employee motivation
individualized rewards sensitivity to employee and commitment and their level of performance in
performance is highly positive (0.254), similarly, all other industries should also be studied. Further
other factors have also a positive impact on employee research on other factors besides employee job status,
performance. The result recommended that there is a job security, internal promotion, and individualized
positive relationship between human resource rewards that influence employee motivation and
management policies and practices of employee commitment and their level of performance should
performance. also be studied. It is also suggested that further
research needs to incorporate the perspectives of a
5. DISCUSSION
much wider range of stakeholders beyond the
The present liberal economy policy of the world managerial and assistant levels. In particular, the
provided great scope for business expansion only employee perspective needs to be explored in much
through competitive strength. It is the reason that greater depth. The effective implementation of proper
business institutions of the present environment can HRM policies and practices contributes to maintaining
survive and sustain their business activities only employee motivation commitment and level of
through the development of competitive advantages performance which would be supportive for sustaining
through the best use of their human creativity, skills, business and the long-term functioning of the
and knowledge. To obtain benefits from a growing organization. Usually, in practice, it is found that
market, it is necessary to place the right people at the motivated and committed employees have a high level
right jobs so that competitive strengths can be of performance which would be supportive for best use
maintained. Besides, it is necessary to provide a proper of organizational resources and to maximize
reward system based on the skills of employees, productivity. This helps develop competitive
resources, and requirements of the organization. This advantages of the organization which ultimately
is necessary to retain efficient employees of the contribute to the long-term functioning of the
organization for a long time. The present analysis organization.
concentrates on evaluating human resource
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Pradhan et al. (2024), Impact of Human Resource Management Policies and Practices on employee motivation,
commitment and Performance, VEETHIKA-An International Interdisciplinary Research Journal, 10(3), pp. 29-41.
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