The Influence of Human Resource Management Practices on Employee Outcomes in Private and Public Banking in Indonesia

Abstract

The goal of this study is to look at the influence of human resource management (HRM) practices (recruitment and selection, training and development, compensation, and performance management) on employee outcomes (organizational commitment, job satisfaction, and turnover intention), as mediated by Perceived Organizational Support (POS). These linkages are further examined in terms of the extent to which state and private banks differ in Indonesia. Data were collected using simple random sampling by distributing questionnaires to banking personnel in Bengkulu, Indonesia, and were then analyzed using the Lisrel tool's structural equation modeling (SEM). According to the findings, there is a considerable influence of HRM practices on POS, as well as a significant effect of HRM practices and POS on employee outcomes, as well as a POS-mediated relationship among HRM practices and employee outcomes. The result shows that there are substantial disparities between public and private banks. The use of SEM, which permits the formulation and estimate of complicated models of the link among HRM practices and employee outcomes, is one of the research's primary methodological implications. Without this technique, it is difficult to examine the mediating role of POS on HRM practices and employee outcomes.