Exploring HRM Practices: Impact on Employee Engagement & Satisfaction

This literature review explores the impact of Human Resource Management (HRM) practices on employee engagement and job satisfaction. It highlights the increasing importance of employee commitment in today's competitive environment and examines the role of perceived organizational support. The review identifies a gap in the literature regarding the influence of Socially Responsible HRM (SRHRM) on organizational citizenship behavior, organizational identification, and employee work outcomes. It discusses the shift in business emphasis towards integrity, environmentalism, and support for local communities. The review also covers studies on the relationship between SRHRM and employee engagement, satisfaction, and attrition levels, as well as the role of CSR in shaping employee behavior. Furthermore, it explores the impact of ecological rewards and remuneration on employee performance and the importance of creating a supportive organizational environment. The review concludes by emphasizing the need for HRM practices to focus on increasing employee awareness and understanding, especially in relation to Green HRM and environmental sustainability.

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Introduction
There is seen significant research explored on the way organizations can develop greater
degree of competitiveness and revenues. Employee commitment is explained as the level of
enthusiasm and commitment, which a worker exhibits towards their organization and its
standards and principles. According to Anitha (2014), when an employee shows engagement, he
or she shows understanding of individual accountability in business objectives and stimulates
other associates for achievements of organizational goals. With increasing rate of competition for
scarce talents and skills, the magnetism and preservation of excellent and proficient employees
has developed as major encounter in human capital management (Onkila 2015). These factors
have resulted in high turnover rate in majority of organizations specifically in public
organizations (Al-Shuaibi, Sai'd and Subramaniam 2014). In the view of Albrecht et al. (2015),
employees’ commitment towards their job primarily relies on perceived organization support,
which further poses impacts on employees’ approach towards work, satisfaction and
consequentially elevated organizational performance. The paper will contain review of literature
of factors connected to effective HR practices and its impact on employee engagement as well as
job satisfaction.
Literature Gap
Several literatures and practices have focused on focused on key organizational objective,
rewards, recognition and the way it influences employee commitment and job satisfaction.
Additionally, there has been found integrative perspectives, which have signified configurational
approach to strategic HRM practices, which discusses that, patterns of HR practices, are essential

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to attain organizational aims (Kramar 2014). While, several studies focused on key factors
fostering increased levels of employee activities and its strength of impact on employees’
performance, there has been very little investigation on the way Human Resource Management
has been inclining towards socially responsible activities, which tend to influence organizational
citizenship behaviour of employees. Such inclination towards socially accountable practices has
been mediating the role of organizational identification and employees’ progressive work
outcomes. Limited investigation on the impact of Socially Responsible HRM (SRHRM) on
employees’ approach has shed light on the linkage between and understanding of employees and
their commitment towards society and awareness of Corporate Social Responsibility (CSR).
Literature Review
There has been an observable transformation in emphasis of business from generous
contributions and benevolence towards recognized subjects of integrities, environmentalism and
aid small countryside organizations along with develop of client knowledge and understanding
(Beer, Boselie and Brewster 2015). Kundu and Gahlawat (2015) in their studies found that
growing consciousness regarding sustainability and communal accountability has enabled
businesses to expand their welfares in a more ecologically inclined approach with provisions to
restructure the human resource role of ‘architect’ in growth of continual values-driven
associations with organization’s shareholders. Kundu and Gahlawat (2015) drew insights from
previous studies which focused on social exchange theory with explanatory framework in order
to explain the way staffs’ outlook of SRHRM have been related to their engagement and
satisfaction as well as attrition levels. Furthermore, Kundu and Gahlawat (2015) undertook
claims of other scholars asserting that effective implementation of ethical and CSR activities are

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possible to attain only with employees commitment towards principled treatment, which they
receive from service linkages. Likewise, dependent on social identity theory, Newman, Nielsen
and Miao (2015) in their study suggested that employee notion of CSR tends to elevate employee
approach as purpose of organizational sympathy procedures that encourage vanity and
benevolence toward the organization.
Furthermore, Newman, Nielsen and Miao (2015) reasoned to the claim that these
linkages are mainly determined by acknowledgment with the socially accountable organization,
which as per social identity theory shows propensity to shape employee actions consistent to
organization’s CSR practices. Newman, Nielsen and Miao (2015) opined that considering social
identity theory viewpoint, engaged as a worker of socially responsible organization inclined to
communal benefit of society and the societies where they function, employees tend to enhance
the recognition of organization. Considering hypothesis testing, Newman found that only staff
awareness of the value of CSR impact Organizational Citizenship Behaviour. Additionally, staff
insights of organizational CSR practices toward communal as well as non-social shareholders
have been found to be considerably linked to their service. Furthermore, through data collection,
Newman, et al. (2016) found the importance of privately owned businesses in China to
distinguish advantages that capitalizing on CSR focused on external stakeholders will improve
workers’ performance as well as OCB. They have further cited examples of companies, which
tend to consider capitalize on sustainable and ecologically approachable practices and subsidize
to benevolent enterprises in the societies where they execute their operations. Shen on the other
hand, tested the hypotheses by performing multilevel structural equation modelling (MSEM) and
found that Perceived Organizational Support (POS) has been constructively associated to

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organizational recognition and linkage between managerial sympathy and employee task
performance in addition to extra-role assisting behaviour.
On the contrary, Shen and Benson (2016) study is dependable to previous study, which
reasoned the claims that employee organizational patterns are shaped by its degree of empathy
towards employees. Moreover, they claim that if workers encounter biased or prejudiced
treatment with significant lack of assistance from organizations they might perceive SRHRM as
a risk such as they might feel that communal performance assessment, promotion in addition to
recompenses possibly will minimize the implication of work performance. Similar to Shen and
Benson (2016), Terera and Ngirande (2014) studies indicate that sufficient organizational social
assistance tend to reduce likely risks of SRHRM practices that reinforce the effective execution
of external CSR and supports the progressive impact of SRHRM on workforces. Meanwhile,
Ferreira and Real de Oliveira (2014) tried to focus on CSR activities as antecedents of
engagement and its relevance to employee satisfaction. Ferreira and Real de Oliveira (2014) by
conducting survey research with three varied groups of respondents (renowned private
corporations in Portugal with diverse divisions such as finance, telecommunication, food and
beverages, and merchandising) found no statistically substantial dissimilarities in levels of date
amongst workers out to external as well as internal CSR activities.
Conversely, staffs exposed to internal CSR have shown greater degree of satisfaction in
comparison to the ones, which have been, exposed specifically to external CSR practices.
However, their studies claimed that HR practices must incorporate external and internal social
practices as vital factors in areas of employee training, knowledge development, rewards,
compensation to increase job engagement and organizational performance (Dumont, Shen and
Deng 2017). On the other hand, through process of data collection methodology, Park and Levy

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(2014) found that hotel workforces’ notions of CSR activities mainly entail workplace
associates, clients and host community more than ecological practices. Furthermore, Park drew
information from former researches, which focused on IBM’s worldwide survey and found that
around 69% of 250 business executives showed no alignment towards CSR initiatives. Drawing
relevance to these findings, the paper suggested importance of hotel industry to identify value of
employee perception of CSR initiatives that is closely linked to frontline employees’ work
approaches and behavioural patterns. In addition to this assertions, Park and Levy (2014) opined
that consistent with social identity theory as well as self-categorization theory, the perception of
Organizational Identification has been showing variation to other connected conceptions related
to employee satisfaction and work group connection. On the other hand, statistical findings of
Zhu et al. (2014) revealed that employees’ level of contentment of individual conduct along with
generic organizational activities tend to facilitate the impact of employee perception and
emotional obligation towards organization. Their study developed stimulus-organism-response
(SOR) framework while taking into account self-control and intervention impacts of employee
job satisfaction in order to investigate the way supposed organizational CSR effort influences the
outlook, perception and behavioural reactions of employees. Nonetheless, the study claimed that
processes of elevating employee determination by collectively increasing apparent company
determination in addition to employee satisfaction would necessitate additional observation.
Furthermore, Waqas et al. (2014) opined that socially accountable initiatives taken by
organizations require to be favourably perceived by workers and tend to contend workforces that
are significantly impetrative for companies in emerging nations aiming to implement CSR
practices at the preliminary stage. Moreover, authors mentioned in their studies that
organizations performing in emerging nations, must take to consideration aspects related to

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employee-responsive policies can certainly surpass comparable organizations in relation to long-
run stock market revenues as well as operating outcomes. Meanwhile, Ahmed provided an extant
literature on growing responsiveness within business societies on the implication of
implementing ecologically friendly and environment supervision practices. By focusing on
previous researches, Ahmad (2015) opined that recognized strategies in domain of staff
recruitment, employee performance, knowledge development and reward systems have been
considered as effective mechanisms for aligning employees with organizational ecological
approach. In addition to this, authors drew insights from former investigation focusing on
employee revenue and retention and reasoned the most effective beneficial elements of HR and
sustainability are retaining or staffing and employee contentment. In addition to this, paper
focused on effectiveness of ecological rewards and remuneration, which has also been seen as
most beneficial by other scholars. By conducting research on around 469 business organizations
in the United States, it has been observed that firms inclined towards environmentally responsive
performance, offered higher wages to their top hierarchical leaders in comparison to the ones
who did not show any inclination towards green practices (Reverte, Gómez-Melero and Cegarra-
Navarro 2016). The research has further been conclusive claiming that longstanding corporation
results as per remuneration have been linked to greater pollution prevention achievement.
Substantial level of research mentioned that monetary inducements tend to stimulate
officials to implement official as well as other works to accomplish immediate results and
augment their knowledge and understanding. On the other hand, Kundu and Gahlawat (2015)
findings pointed out the importance of encouraging expected attitudinal approaches and
behavioural patterns of employees while structuring and realizing socially as well as
environmentally responsible HRM practices by means, which would act responsive to

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employees. Moreover, advancements in socially accountable HR practices can be structured by
promotion organizational milieu for workforces by means of obedience with employee
regulations, laws thus offering employees with equal chances in HR practices and accomplishing
the other stakeholder requirements.
Summary
Considering rising shortage of effective skills and talent, HR practices must focus on
increasing understanding and awareness amongst employees engaged in organizations especially
related to Green HRM, Green movement, use of natural possessions and most importantly
assisting organizations in order to uphold proper environment and successfully maintain the
natural resources in support of future generation. Furthermore, studies further suggested that
while social exchange theory tends to shape inclination and enthusiasm of employees to expand
their roles and responsibilities and act responsive to the environment and principally involve in
OCB, social identity theory might not be able to offer relevant explanation as to extent to which
SRHRM has aimed at facilitating stakeholders. Furthermore, studies shed light on the
implication of SRHRM in influencing attitudinal approaches of other employees such as rate of
absenteeism, employee revenue and moral behaviour.

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