Question

From the below.docx

kainaat110

• 2 hours ago

• Business

• College

The banking sector in Pakistan has faced some major issues regarding the increased turnover of employees, more importantly, talented workers who have been playing an important role in their organization are leaving the banking industry. However, a low retention rate creates difficulty in maintaining the organizational performance due to the cost incurred in the training and development of any newly hired employee. Furthermore, it is very important to highlight those factors that can affect the retention rate and higher employee turnover ratios. (Rashidi & Rahman, 2013). Moreover, it is evident from the previous results that even salary or higher compensation would not keep them stay if they feel the work environment and growth opportunities are not fully up to the mark in any bank. ( Shukla & Sinha, 2013) 

In the previous literature ability enhancing, motivation-enhancing, opportunity enhancing, and intention to leave have been studied with some other dependent and independent variables as well as in different aspects such as skill-enhancing human resource practice is studied with performance-based compensation and performance management (Jyoti, Rani & Gandotra, 2014). Whereas, motivation-enhancing is used as an independent variable with financial outcomes as the dependent variable in past studies related to the IT and service industry (Jiang et al., 2012). Additionally, opportunity enhancing is mostly used with the AMO model, which is the presented model of this study but having said that, opportunity as an independent variable impacted with customer service orientation with the mediating role of emotional performance in previous research (Ghosh & Gurunathan 2015). Lastly, the intention to leave as a dependent variable studied with various independent variables such as working conditions, job satisfaction, organizational commitment, and employee engagement in the medical and engineering industries. (Zhang, punnet & Gore, 2014). Apart from that, this study also contains one mediator which is procedural justice. In past researchers, procedural justice was mostly used as a mediator with different independent variables and dependent variables like it used with top management leadership, ethical climate, and organizational outcomes in various industries (Shin, Sung & Choi 2014).

Moreover, a lot of work has done in the engineering and pharmaceutical industries using these variables. Nevertheless, considering the current scenario, the banking sector of Pakistan requires a lot of attention especially when there is a point of employee retention rate. Off late, the employee turnover ratio in the banking sector is relatively high and it provides a fair amount of a headache to managers in the banking sector of Pakistan. However, there could be several reasons for this scenario but effective use of a high-performance work system can make a difference in improving the retention rate of the banking sector because it is evident from past researchers that human resource management practices can change employee intentions to leave the organization.

In terms of the Pakistani perspective, many studies have been conducted by taking intention to leave as a dependent variable but not with the high-performance work system as the independent variable and also not in the selected industry which is the banking sector of Pakistan. The main purpose of this study is to fill out the gaps related to retention rate in the banking sector of Pakistan by studying the impact of a high-performance work system (skills enhancing, motivation-enhancing, and opportunity enhancing) on employee intention to leave with the mediating effect of procedural justice. Moreover, this study is focusing on the new concept of human resource management practices. In the past, we have seen that HRM practices used to identify the impact on organizational level instead of individual-level (Fabi et al., 2015) but in this study AMO model is used which is identifying the impact on retention rate with procedural justice as mediator which is never been used in the banking sector of Pakistan.

Adding up to realistic implications, this study contributed to current literature in a way that how a bundle of high-quality human resource practices can provide a solution to a problem related to employees tend to leave the organization in the banking sector of Pakistan. Additionally, the contribution of this study is significant to managers of banks who now days suffering from higher turnover rates in various branches of the particular bank. Hence, a presented bundle of practices has never been studied before with procedural justice, which is the main contribution of this study.

This study investigates the relationship between high-performance work systems on employee intention to leave. However, this study uses social exchange theory, to measure the issues regarding retention rate in the banking sector of Pakistan (Fabi et al., 2015). In the year 1961, Homans presented this theory with the name of social exchange theory which is conceptualized as, if someone gets a positive response from the other person then in exchange that person will also get the same response. Therefore, if any employee in the organization gets the reward for something then he/she must be obliged with that particular reward and will be responsible to reply pleasantly towards the organization (Gardner et al., 2011).