Human Resource Management Practices and Organizational Commitment in Selected Small Medium Enterprises in South Africa

Abstract

Due to the economic impact caused by the outbreak of COVID-19 pandemic and rapid technological advancement, small and medium-sized enterprises (SMEs) adopted various crisis-management techniques, including adoption of new technologies and improved HRM practices to strengthen their resilience and remain in the market. The purpose of this study was to investigate the relationship between HRM practices and organizational commitment of employees in the SMEs in Capricorn District in Limpopo Province, South Africa. A quantitative research design was used and self-administered questionnaires were utilized to collect data from a convenience sample of 149 participants from 18 SMEs. Descriptive and inferential statistics, including correlation analyses were used to analyze data. The findings indicate that there is a significant positive relationship between overall HRM practices and overall Organizational Commitment as well as between HRM practices and the three dimensions of Organizational Commitment (Affective, Continuance and Normative Commitment). However, the weakest correlation strength was found between overall HRM practices and Continuance Commitment. It is recommended that SMEs managers implement proper HRM practices to enhance their employees’ overall commitment to their organisation while also paying attention to specific HRM practices that contribute towards employees’ commitment in relation to each commitment dimension. The study recommends further research on the influence of individual HRM practices on employees’ organizational commitment.