Thesis

Human Resource Management Practices on Employee
Commitment in Private Domestic Airlines
A thesis
submitted to
office of the Dean , Faculty of Humanities and Social Science
Tribhvan University
in partial fulfillment for the Degree of Master in Tourism and
Hospitality Studies
By
Lokmani Dahal
TU Registration No.- 6-3-28-272-2018
Master in Tourism and Hospitality Studies
Kritipur, Kathmandu
December, 2022
Candidate’s Declaration
To the best of my knowledge and belief, this submission does not contain any materials
that have already been published by another researcher or that have been in large part
accepted for the award of any other degree from a university or other institution of higher
learning, unless appropriate acknowledgment has been made.
Lokmani Dahal
Date: Dember, 2022
i
Tribhuvan University
Faculty of Humanities and Social Science
Master program in Tourism and Hospitality Studies
Approval Sheet
This is certify that the thesis submitted by Lokmani Dahal entitled The Human Resource
Management Practices on Employee Commitment in Private Domestic Airlines to the
central department, Faculty of humanities and social science, Tribhuvan university, in partial
fulfillment of the Degree of Master in Tourism and Hospitality Studies (MTHS) has been found
satisfactory in scope and quality. therefore, we acept this thesis as a part of the degree.
Evaluation Committee
Thesis Supervisior
Enternal Examiner
Chairperson of Research Committee
Head of department
Date: December, 2022

Acknowledgement
This study, titled "Human Resource Management Practices on Employee Commitment in
Private Domestic Airlines," is the result of my diligent work. As required by Tribhuwan
University, this study was conducted as a study-based report for the Master of Tourism and
Hospitality Studies (MTHS) thesis. "Human Resource Management Techniques on
Employee Commitment in Private Domestic Airlines" is the topic of this study. I want to
thank Tribhuwan University for giving me the chance to perform a study on HRM
procedures related to employee commitment.
In a same vein, I would want to convey my sincere gratitude to Dr. Narendra Kumar
Shrestha for his steadfast support and mentorship in developing my academic potential and
career throughout this study. Also, I want to express my gratitude to the research faculty
Dr. Surendra Mahato and our academic coordinator Prof. Dr. Ghanshyam Bhattarai for
their invaluable supervision, guidance, and insightful criticism. Without their help, this
report would not have come to be in the form it is today. I also appreciate the researchers
for sharing the data on HRM procedures and employee commitment.
Finally, I want to express my genuine appreciation and respect to my parents, classmates,

and professors. I also want to extend my sincere gratitude to everyone who was involved
in helping me by giving subject matter and by changing the framework of the work from
concept to material. Any errors in this report are entirely my fault, and I would greatly
appreciate any suggestions you may have.
Lokmani Dahal
Date: Dember, 2022
ii
List of Abbreviations
A - Agree
ANOVA - Analysis of Variance
D - Disagree
EM - Employee Commitment
HRM- Human Resource Management
ILO - International Labor Organization
LMX - Leader Member Exchange
N - Neutral
SA - Strongly Agree
SD- Standard Deviation
SPSS- Statistical Packages for Social Sciences
StD - Strongly Disagree
TQM- Total Quality Management
iii
Executive Summary
The lack of empirical research es or studies have specifically dealt with examining how
practices effect variable on "Human Resource Management Practices on Employee
Commitment in Private Domestic Airlines," This study tries to address this gap. The main
goal of the study is determining the impact of "Human Resource Management Practices on
Employee Commitment in Private Domestic Airlines," The study uses causal comparative
research design in order investigate the relationship between HRM practices employee’s
commitment. The data for the research study was collected by distributing questionnaire to
100 respondents from private commercial banks of Nepal. The collected data were
analyzed by using statistical tool such correlation analysis and multiple regression analysis
through SPSS software. The study found that there is significant influence between Human
Resource Management Practices on Employee Commitment in Private Domestic Airlines".
On the other hand, while analyzing the mediating role of employee competencies on the
relationship between Human Resource Management Practices on Employee Commitment
in Private Domestic Airlines. It appears that the study's findings have important
implications for human resource managers in Private Domestic Airlines. The study's
conclusions suggest that HRM strategies aimed at building employee competencies can
enhance employee commitment and employee performance. Therefore, policymakers,
stakeholders, and bank management should focus on implementing appropriate HRM
practices in the Private Domestic Airlines to enhance employee capabilities, improve
performance, and provide exceptional customer service.
Table of contents
Contents
Declaration
Acknowledgement
List of abbreviation
Executive summary
Chapter I Page
1.1
40 40 Background of the Study
40 40 1
1.2 Statement of the Problem

40 40 3
1.3 Objectives of the study

40 40 4
1.4 Significance of the Study

40 40 4
1.5 Research Hypothesis

40 40 5
1.6 Organization of the study

40 40 5
1.7 Limitation of the Study

40 40 6
Chapter II
Literature Review 8
2.1 Human Resource Practices

40 40 8
2.2 Review of Related Literature

40 40 11
2.3 Research Gap

40 40 20
2.4 Conceptual Framework

40 40 21
2.5
40 40 Operational Definition
40 40 23
2.5 Operational Definition

40 40 24
chapter III
Research methodology 26
3.1 Research Plan and Design

40 40 26
3.2 Description of the Sample

40 40 26
3.3 Instrumentation
40 40 27
3.4 Data Collection Procedure

40 40 28
3.5 Reliability and Validity

40 40 28
Chapter VI
Data presentation and Analysis
4.1. Presentation and Analysis of Data

40 40 31
4.1.1. Respondents’ Profile

40 40 31
4.1.3 Opinion of Respondents About Human Resource Planning on Private Domestic

40
Airlines. 40 33
4.1.4 Opinion of Respondents of Recruitment and Selection in Private Domestic

40
Airlines 40 35
4.1.5 Opinion of Respondents about Training and Development in Private Domestic

40
Airlines 40 37
4.1.6 Opinion of Respondents About Performance Appraisal Practices on Employee

40
Commitment in Private Domestic Airlines 40 39
4.1.7 Opinion of Respondents about Reward and Recognition in Private Domestic

40
Airlines 40 40
4.1.8 Opinion of Respondents about Leadership in Private Domestic Airlines

40 40 42
4.1.9 Opinion of Respondents about Employee Commitment in Private Domestic

40
Airlines. 40 44
ii
4.2 Correlation Analysis
40 40 46
4.3 Inferential Statistical Analysis

40 40 47
4.3.2 Recruitment and Selection and Employee Commitment

40 40 48
4.3.3 Training and Development and Employee Commitment

40 40 49
4.3.4 Performance Appraisal and Employee Commitment

40 40 49
4.3.5 Record and Recognition and Employee Commitment

40 40 50
4.3.6 Leadership and Employee Commitment

40 40 51
4.4 Regression analysis

40 40 51
4.5 Summary of Result of Hypothesis

40 40 53
4.6 Discussion
40 40 54
1.1
40 40 Summary
40 40 57
Chapter v 57
5.2 Conclusion
40 40 59
5.3 Implication
40 40 59
1.2
40 40 40 Implication for Future Research 40 60
References 62
iii
List of Tables
Table 1 List of Sample Private Domestic Airlines along With Total Number of
40
Respondents ...................................................................................................................... 27
40
Table 2 Reliability ............................................................................................................ 29

40 40
Table 3 Demographic Characteristics of the Respondents .............................................. 32

40 40
Table 4 Opinion of Respondents about Human Resource Planning Practices on Private

40
Domestic Airlines ............................................................................................................. 33

40
Table 5 Opinion of Respondents about Recruitment and Selection Practices on Private

40

40
Table 6 Opinion of Respondents about Training and Development Practices on Private

40

40
Table 7 Opinion of Respondents about Performance Appraisal Practices on Private

40

40
Table 8 Opinion of Respondents about Reward and Recognition on Private Domestic

40
Airlines ............................................................................................................................. 40
40
Table 9 Opinion of Respondents about Leadership on Private Domestic Airlines .......... 42

40 40
Table 10 Opinion of Respondents about Employee Commitment on Private Domestic

40
Airlines ............................................................................................................................. 44
40
iv
Table 11 Pearson Correlation Coefficients Matrix for the Dependent and Independent
40
Variables ........................................................................................................................... 46
40
Table 12 Relationship between Human Resource Planning and Employee Commitment

40 40
........................................................................................................................................... 48
Table 13 Relationship between Recruitment and Selection and Employee Commitment 48

40 40
Table 14 Relationship between Training and Development and Employee Commitment

40 40
........................................................................................................................................... 49
Table 15 Relationship between Performance Appraisal and Employee Commitment .... 49

40 40
Table 16 Relationship between Reward and Recognition and Employee Job Commitment
40 40
........................................................................................................................................... 50
Table 17 Relationship between Leadership and Employee Commitment ....................... 51

40 40
Table 18 Regression Analysis .......................................................................................... 52

40 40
v
List of Figure
Figure 1: Conceptual Framework of the Study ................................................................ 23

40 40
vi
Chapter I
Introduction
1.1 Background of the Study
The human resources management (HRM) has grown to be crucial for enterprises. It is
impossible to disregard HRM's importance in the development and dedication of an
organization. Without effective human resource management, success is impossible.
Dessler (2007) defines human resource management as the approaches and techniques used
to carry out the management position's human resource-related responsibilities. These
responsibilities include human resource planning, hiring, orientation, selection, analysis,
performance reviews, training, compensation, and labor relations and development.
According to this, human resource practices are a more crucial aspect of the working
environment that affects job satisfaction (Ssesanga & Garrett, 2005).
Since a few years ago, human resource practices have become a crucial and vital sector of
management. The level of employee performance rises as a result of human resource
practices, and employees also feel safer and more at ease in workplaces where these
techniques are used. The use of human resources has a significant impact on an
organization's performance, especially in the airline sector (Saleem & Khurshid, 2014).
The impact of human resource management such as compensation practice, performance

evaluation practices on employees’ job commitment, perceived performance, turnover
intention and citizenship behavior cannot be overlooked. It has positive impact on
performance. Increased job commitment, performance and decreased turnover intention
help the organization achieve its goals and objectives and vice versa. Suifan (2015)
examine the effect of human resources practices on employee commitment. The study
revealed that all human resource practices training, person-organization fit, and rewards
were significantly and positively associated with employee commitment.
In the context of Nepal, Tiwari and Karunesh (2012) revealed that human resource
management practices have positive effect on the outcomes such as employee satisfaction,
1
commitment, employee retention, employees' presence, social climate between workers
management, employee involvement, employee trust, employee loyalty, and organizational
fairness.
Just two years before the country's transition to democracy, in 1949, Tribhuwan
International Airport (TIA) was established, marking the beginning of Nepal's air
transportation industry. Although more than 40 airports have been built since then all over
Nepal, TIA remains the only international airport in the country. Since a large chunk of
this freshly proclaimed federal republic's road system is still in a crude and inadequate
condition, air strips offer a safer and more dependable, if slightly more expensive, means
of transportation. Those with some extra cash will choose a brief, comfortable, and safe
trip over a day-long, bumpy drive on shoddy roads. The gateways to the chief tourist
attractions in Nepal like Lukla, Jomsom , Dolpa, Pokhara had airdromes before they were
linked into the road network.
Private domestic airlines hold a larger market share on well-traveled routes. The airline
industry is a highly competitive market. Over the past 20 years, the industry has grown and
is still expanding its routes domestically and internationally. Initially, the airline industry
was partially owned by the government, but in recent years, many privatizations with the
industry have taken place.
The Civil Aviation Authority of Nepal has issued operating licenses for air services to
roughly 18 private enterprises. Flights are operated on a nearly daily basis to the key
regions of the nation thanks to the substantial air network and additional aircraft from
private enterprises. Moreover, these airlines offer charter flights and mountain flights (both
helicopter and airplane). The country's most well-known and preferred private airline
services include Tara Airlines, Buddha Air, Yeti Airways, and Simrik Air.
2
The discussion above demonstrates the importance of research on the effects of human
resource strategies on employee commitment and performance. There are no equivalent
conclusions utilizing more current data in the context of Nepal, despite these findings in
the context of other countries as well as Nepal. So, the focus of this study is on investigating
the human resource elements that affect employee commitment in private airlines.
1.2 Statement of the Problem
In Nepal's private domestic airline sector, there are numerous associated enterprises that
are in competition with one another. All businesses connected to airlines need to work
together, but in actuality, we have observed unfair rivalry. It would be ideal if the policies
of similar businesses were the same, but this is not the case in reality. The private domestic
airline sector interacts with both its own environment and the outside world. The airline
sector controls and can influence the internal environments that all associated commercial
organizations use for human resource planning, performance evaluation, leadership, and
employee commitment. Government policies and political situations are the major problem
in internal problem. International incidents, weather and climate, political instability
international economy and foreign countries perception and policies are external
environment of the industry which is difficult to change by firm’s power or external
environment is out of the control of firms. (Kayastha, 1997)
There are many related businesses that compete with one another in the private domestic
aviation market of Nepal. All companies involved in the airline industry should cooperate,
but in practice, we have seen unfair competitiveness. While it would be ideal if similar
businesses had identical rules, this is not the case in practice. The private domestic airline
industry engages in both internal and external interactions. The internal settings used by all
related commercial enterprises for human resource planning, performance evaluation,
leadership, and employee commitment are under the control and influence of the aviation
industry. The following research questions is to be addressed based on the research
objectives.
3
1. What are the human resource practices implemented by private domestic airlines
industry?
2. What is the effect of human resource practices on employment commitment in
private domestic airlines industry?
1.3 Objectives of the Study
The main objective of the study is to assess the human resource management practices
being practiced in private domestic airlines of Nepal and their impact on the employee
commitment level in the organization. To achieve the main objective the following sub
objectives were formulated:
• To analyze the recruitment and selection procedures in the private domestic airlines.
• To measure the effect of performance appraisals on employee’s commitment in private
domestic airlines industry?
• To analyze the impact of HRM practices on the employee commitment in private
domestic airlines industry?
1.4 Significance of the Study
Employee commitment in an organization is significantly influenced by human resource

management techniques. The success of an organization depends significantly more on its
human capital than just its technological and financial stability. The most valuable resource
for any business, especially one in the service sector like the aviation industry, is a
committed workforce. For an airline's productivity to increase, committed staff are to
blame. Empirical data from this study can be used to investigate some of these problems.
It broadens and aids knowledge of developing strategies to raise employee commitment to
the organization, work happiness, and training and development, as well as awareness of
how performance appraisal factors impact the performance of the private aviation business.
This study is very important for private airlines of Nepal. The outcome of this study could
facilitate to achieve the desired goals of the organization and increase the competitive
advantages by enhancing the better understanding and knowledge of performance appraisal
system. In additional, the study can also be used as reference for academicians who are
4
interested in further studies dealing the factors affecting employee commitment. This study
can be used to know the effective use of human resource practices in increasing employee
commitment. The findings of this study also help to identify the shortcomings and strengths
of human resource practices followed in private airlines industry of Nepal.
1.5 Research Hypothesis
The following hypothesis is formulated to identify the overall relation of the human
resource practices on employee commitment in private airlines of Nepal.
H 1: Human resource planning has positive influence on employee commitment in private

domestic airlines industry.
H 2 : Recruitment and Selection has positive influence on employee commitment in private

H 3 : Training and Development has positive influence on employee commitment in private

H 4 : Performance appraisal has positive influence on employee commitment in private

H 5 : Reward and Recognition has positive influence on employee commitment in private

H 6 : Leadership has positive influence on employee commitment in private domestic

airlines industry.
1.6 Organization of the study
This study has been organized into five Chapters.
Chapter-I: Introduction
5
This chapter deals with the background of the study, statement of the problem, objectives
of the study, significance of the study and limitations of the study.
Chapter-II: Literature Review
This Chapter is the brief review of literature related to this study. It includes a discussion
on the conceptual framework and review of the major studies. It gives an overview of the
related literature done in the past related to this study.
Chapter-III: Research Methodology
Research Methodology describes the different methodologies employed in this study.

Sources of data are mentioned and described in this chapter.
Chapter-IV: Result and Discussion
This Chapter presents and analyses the data obtained during the study. Different tools and
techniques of data analysis have been undertaken for the purpose of analysis of data.
Chapter V: Summary, Conclusion and Recommendations
This chapter includes summarizing the whole study, makes conclusion on the basis of data
analysis and major findings drawn out and finally provides recommendations for future
effort. Conclusions will be given in relation to the research questions and the chapter is
ended with recommendations.
1.8 Limitation of the Study
• The purpose of this study was to determine how human resource management
procedures affected employees' commitment in private airlines. As far as the researcher
is aware, it identified the research findings and employed the +-appropriate
methodologies. Despite its significance, this research has some drawbacks. Each
research endeavor has its own restrictions. These are a few of the restrictions that this
study effort has encountered:
6
• The statistics were collected through the self-administrated questionnaire. There might
be chance of response errors because of factors such as hesitation of respondents,
misinterpretations etc.
• It may also be noted that only primary data are considered for the study purpose. Data
analysis conducting secondary is not taken into consideration. Hence, the result of the
study is not broad and flexible. It is limited to the perception of the employees.
Accuracy depends upon only on respondents.
• The survey was conducted within the Kathmandu. So, the area for study was limited to
specific organizations that are quite a small area to judge performance level.
• Besides, this study is focused only on seven private airlines. The selection of companies
from diverse industries might have influenced the analysis and the conclusion. It did
not include other airlines in the study like Nepal Airline and Helicopter companies.
• The study was based on the assumption of linear regression between the dependent and
explanatory variable. The study excluded the non-linear regression assumptions.
• The study is only based on the limited sample size.
• The study considered only limited aspects of commitment although there are various
aspects of commitment.
7
Chapter II
Review of Literature
This section provided the study's conceptual framework and reviews empirical research on
the effects of human resource practices on employee commitment and productivity in the
private aviation sector. Five sections make up this paragraph. An operational definition
appears in the first section. A thorough analysis of similar studies is included in the second
section, which considers both developed and developing nations worldwide. Review of
relevant studies in the context of Nepal is presented in the third section. The study's
theoretical underpinnings are presented in the fourth section. The final section of the
conceptual and empirical review gives concluding thoughts. The dissertation portion deals
in detail with each of these sections.
2.1 Human Resource Practices
High levels of decision delegation, extensive lateral and vertical communication channels,
high reward systems that are frequently linked to multiple performance indicators, and
other practices that are used either individually or in various bundles to achieve high levels
of organizational performance are all now referred to as "modern HRM practices"
(Ichniowski et al., 1997). The emphasis on using a system of management techniques that
give employees skills, information, motivation, and latitude is a recurrent theme in this
literature, according to Guthrie (2001), creating a workforce that is a source of competitive
advantage.
2.1.1 Human Resource Planning
Human Resource Planning is the most vital part of HR. In this process a complete study of
the existing personnel resources and the resources that are likely to be required in the future
is done. There are several demerits of both over and under staffing. With Over staffing the
company loses in the form of excessive salaries and underutilization of skills. When under
staffing is resorted to, the company loses customers, orders, profits economies of
8
specialization and scale. Human Resource Planning involves the devising of appropriate
strategies for matching the requirements of the staff and the available vacant positions.
2.1.2 Recruitment and Selection
Recruitment is the process of identifying that the organization needs to employ someone
up to the point at which application forms for the post have arrived at the organization.
Employee Selection is the process of putting right men on right job. It is a procedure of
matching organizational requirements with the skills and qualifications of people.
Employee Selection is the process of choosing individuals who have relevant qualifications
to fill jobs in an organization. It improves employee and organizational performance
(Tucker et al., 1996).
2.1.3 Training and Development
According to Dessler and Gary (2009), training and development as methods that are
applied to provide the new recruits with the skills needed to perform their duties. The focus
of ‘training’ is the current job while the focus of ‘development’ are the key factors in
maintaining as well as expanding the performance of individuals in an organization.
Training and development basically deal with the acquisition of understanding knowhow,
techniques, and practices. It is any attempt to improve current or future employee
performance by increasing, through learning, an employee’s ability to perform, usually by
increasing his or her skills and knowledge (Schuler, 1984).
It is the process of enhancing the skills, capabilities and knowledge of employees for doing
a particular job. Training is a learning experience that seeks a relatively permanent change
in an individual that will improve his or her ability to perform on the job (DeCenzo &
Robbins, 1993).
9
2.1.4 Performance Appraisal
Performance appraisal means to evaluate the performance of employees to ensure that

3
whether they are performing their jobs up to the standard of the organizations or not.
Performance appraisal also known as performance review, formally documents the
achievements of an individual with regards to set targets. The technique of performance
23
appraisal has been widely adopted in organizations to measure and evaluate performance
of employees across all levels (Robbins, 2006).
2
2.1.5 Reward and Recognition
All forms of pay or rewards those institutions give to employees in exchange of their
services are referred to as compensation and benefits (Renee, 2008). Compensation refers
to all forms of financial returns and tangible benefits that employee receive as part of the
employment relationship. Benefits are indirect financial and non-financial payments
employees receive for continuing their employment with an organization. It is the activity
of HRM function through which employees get every type of reward in return of
performing the tasks assigned by the administration (Hackett & Donald, 1999).
Compensation and benefits are concerned with paying employees and administering their
benefits package (DeCenzo & Robbins, 2006).
2.1.6 Leadership
Leadership is considered as a powerful tool that reinforces behavior and triggers the
tendency to continue. In other words, leadership is an internal driver to satisfy an
unsatisfied need and to achieve a certain goal. It is also a procedure that begins through a
physiological or psychological need that stimulates a performance set by an objective.
Leadership can increase productivity and customer satisfaction and commitment. The
challenge for any manager is to find the means to create and sustain employee motivation
(Robbins, 2006).
10
2.1.7 Employee’s Commitment
Employee loyalty to their employer is referred to as commitment. The feelings of

connection, belonging, and understanding of the organization's objectives are all
characteristics of employees who are dedicated to their workplaces. Employees that are
committed to their jobs are more likely to be focused, exhibit a high level of productivity,
and take initiative to offer assistance. Employee commitment is defined as an individual's
psychological and emotional attachment to their employer, acceptance of the firm's aims
and values, and provision of high-quality service in order to please and keep customers (He
,2010). Narteh (2012) described employee commitment as a felt state of employee’s
attachment to their organizations, including their willingness to internalize the values of
the organization and abiding by the rules and regulations therein.
2.2 Review of Related Literature
This section includes review of related literature. The available empirical literature is
surveyed into three categories that are review of major literature, review of recent literature
and review done in context of Nepal associated with impact of human resource practices
on employee job commitment and performance. The review of literature has been
organized as under:
2.2.1 Review of previous studies in international context
2.2.2 Review of Nepalese studies
2.2.1 Review of Previous Studies in International Context
The strategic approach to managing people and employment inside an organization's

internal environment is known as human resource management (HRM), and it should be
incorporated throughout all aspects of management (Eaton 2001). It is a corporate
subsystem created to support the achievement of all departments' strategic objectives and
enhance the company's competitiveness. In contrast to other business activities like IT or
production, HRM focuses primarily on people rather than on technology, goods, or other
11
inanimate objects. Working with people is complex, hence work in the HR profession
requires a high level of special attention (Wright/Brewster 2003).
There are individual and collective participants of HRM. The individual participants are
the employees and managers, and the collective participants are the employee
representatives and the human resources department. Peoples are central to the business
(Eaton 2001). These people have the need for personal relationships and contacts with
colleagues. The “human resource” has become highly regarded as arguably the most
important resource that a firm has and can use, to create value and profit (Bartlett/Ghoshal
2002; de Cenzo/Robbins 1994).
Private domestic airlines are just starting to experience formalized integrated human
resource management techniques. An unprecedented level of demand for better services is
rising every day. While public scrutiny is rising, resources are dwindling. If private
domestic airlines are to respond to public criticism, they must restructure and incorporate
human resource management concerns. Providing the general public with fundamental
services like identity cards and immigration-related documentation falls under the
purported portfolio responsibility of commercial domestic airlines, but over time, these
responsibilities have fallen short of public expectations. As a result of this, the private
domestic airline is faced with a major challenge of keeping pace with public expectations
whilst at the same time providing efficient and effective services to the public.
Human resources management is that part of the process of management that is concerned
with the maintenance of human relationships and ensuring the physical well-being of
employees so that they give the maximum contribution to efficient working (Appleby,
(1991). In a number of instances an organization that does not plan for human resources
may find it difficult to meet its personnel obligations and consequently fail to meet its
overall goals efficiently and effectively. Without effective human resource management,
the airlines would find it hard to provide the required services to the people. The structural
set up in the airlines brings about challenges in the quality-of-service delivery. The
decentralized business model ought to carefully streamline the processes of dealing with
customers. (Rajendran Moodley, (2010) pointed out that one particular problem of
12
decentralization was ensuring that affected divisions adopt the target goals of the
organization. An effective human resource management process is one that will help in
determining which of the key elements of this process need strengthening and those do not.
From the foregoing, it is imperative that we aim for a better understanding of the
effectiveness and impact of Human Resource Management Practices with a view of making
improvements to operations in the airlines
All organizations need competent personnel, but different strategies call for varying
numbers and types of workers with varying levels of skills, attitudes, and behaviors, as well
as varying levels of human resource management (HRM) systems and procedures (Amos,
Trevor: 2004). Consider traditional human resource management, on the other hand, as a
process that handles human resource planning, recruiting and selection, training and
development, reward and recognition, and performance evaluation. The effect of human
resource strategies on employee dedication and performance has been the subject of
numerous research. To enable a company to achieve and preserve its competitive edge, the
people component must be managed as an integrated whole, and all practices must be
coordinated.
Abowd (1990) revealed that reward and recognition is positively related to employee
commitment. Based on the agency theory, the study predicts positive relationship between
the degree of performance sensitive in the reward plan and corporate returns in 225
companies. The result showed that over 99,000 individual executive pay observations
indicate the level of performance sensitivity in managerial pay. Moreover, shareholders
returns and measure of gross economic returns have a direct positive effect on employee
commitment.
Gerhart and Milkovich (1990) revealed that reward and recognition is positively related to
employee commitment. The study showed that annual bonus is positively related to return
of assets (ROA) using compensation survey data from 124 companies. The result found
that, a 10 percent increase in bonus size is associated with a 1.5 percent increase in ROA.
Similarly, an increase of 10 percent in the proportion of managers eligible for long-term
13
incentives is associated with 0.20 percent increase in ROA. Moreover, compensation
showed the positive relation between reward system and employee commitment.
The effect of human resource management procedures on opinions of organizational

performance was examined by Delaney and Huselid in 1991. In a national survey,
information was gathered from 1127 organizations out of a sample frame of 1427
organizations in the United States (NOS). The study looked at how HRM practices affect
organizational outcomes, if some practices have a bigger impact than others, and whether
there are any synergies or complementary aspects of these practices that can help them
perform even better collectively. The outcome revealed a positive relationship between
perceptual measures of organizational performance and advanced HRM strategies, such as
selectivity in personnel, training, and incentive remuneration.
Peteraf (1993) revealed that training has a significant effect on employee commitment. The
study suggested that training and development influence the performance of an
organization. All the inclusive training and development programs help trainees to focus
on the skills, attitudes, and knowledge that are necessary to achieve goals. Moreover, there
is significant relationship between training and development and employee commitment.
Murphy (1995) investigated the impact of performance appraisal quality on employee

commitment in multinational companies in Malaysia. The study is based on survey with
133 employees of multinational companies in Malaysia and self-designed questionnaire
were used for data collection. The empirical results concluded that there is a direct
relationship between clarity of performance expectations, level of rewards, trust, and
fairness of performance appraisal process and employee commitment.
A study on the role of training and development on employee performance revealed that
training designed according to the need of employee and organizations perform better
results. Effective training and development programs increase the performance of
employees. Training and development programs are expensive but its payback more than
it costs to organizations. Each corporation should focus on training and development in
order to better compete in present era of competition. The result concluded that there is
14
positive relationship between training and development and employee commitment
(Partlow, 1996).
Patterson (1997) examined the value of HRM in two main performance indicators were
used the rate of change in profitability and in productivity in the UK. The study is based
on survey with 67 UK manufacturing companies. The HR practices of an organization were
measured by three groups of variables: the comprehensive of the selection induction,
training and appraisal systems. This study concluded that there is a positive impact of
training on the performance of human resources.
In Pakistan, Maurer (2001) looked into the effects of rewards and recognition on workers'
commitment and productivity. 220 questionnaires were used to collect data for the study,
which is based on a survey. Performance evaluations, employee motivation, employee
happiness, salary, training and development, job security, organizational structure, and
other factors are all essential determinants of how well an employee performs. The research
findings showed that there is a connection between commitment, performance-based
rewards, and employee motivations.
Maurer (2001) investigated the impact of rewards and recognition on employees'

dedication and output in Pakistan. For the study, which is based on a survey, data were
gathered using 220 questionnaires. How well an employee performs is heavily influenced
by a variety of elements, including performance reviews, employee motivation, employee
happiness, remuneration, training and development, job security, organizational structure,
and others. The study's conclusions demonstrated a link between loyalty, performance-
based compensation, and employee motivation.
Zhang (2009) discovered a favorable correlation between employees' total dedication to

the performance review process and its results and their impression of justice. The study's
foundation is primary data, which were gathered via a standardized questionnaire.
Nonetheless, there are noticeable changes depending on whether or not staff have had
performance appraisal training.
15
Shah (2010) looked into the connection between awards and workers' dedication in the
Pakistani cement sector. The study is based on a survey with 140 participants from different
Pakistani cement industries, and a self-made questionnaire was utilized to gather the data.
The research findings showed that extrinsic rewards, intrinsic rewards, and employees'
commitment are all positively correlated.
In two distinct kinds of business organizations—public sector and private sector

organizations—Kumar and Mishra (2011) analyzed the difference between the actual
service level human resource practices and intended service level human resource
practices. A total of 100 respondents from the population were contacted. Data was
gathered from 100 employees, of which 50 worked for public sector organizations and 50
for private sector businesses. Responses from the respondents were gathered using the
questionnaire approach. Adding up all the questionnaire items yielded a current level
human resource practices index. The data were analyzed using the statistical method known
as the t-test. Result of t-test showed both organizations differ significantly on the current
level human resource practices. Further, it was found that public sector and private sector
organizations differ significantly on human resource dimensions –Strategic human
resource, Human Resource Planning, Training and Development.
Tjiparuro, (2012) reviewed and categorized human resource literature into the triad areas
of, human resource management (HRM), human resource development (HRD), and
organization development (OD). It further collated underlying concepts in HRM, HRD and
OD and built a classificatory scheme, which was analyzed, and found to compare favorably
with the People Capability Maturity Model (P-CMM), a concept known for higher
organizational maturity. However, results from seven leading manufacturing and
engineering companies in Pune (India) and interviews with fifteen HR experts revealed
that the P-CMM was an unknown quantity. Instead, companies and practitioners were
found to be in favor of such mundane concepts as: 5-S, Kaizen, Sigma Six, performance
management system (PMS), employee satisfaction surveys (ESS) and ISO standards,
amongst others. The results revealed that the practices were based on the Deming’s
improvement cycle of Plan-Do-Check-Action, the very foundation of the P-CMM.
16
Gupta (2013) investigated the current trend, variance, and effects of human resource
functions on employee behavior and the operation of businesses in the public and private
sectors of the state. Using a stratified random sampling technique, information was
gathered from 225 employees, 115 of whom worked in the public sector and 110 in the
private sector. The mean, standard deviation, and coefficient of variance were employed
as the research tools for interpreting the data that had been gathered. The findings showed
that there is a gap between the current state of human resource services and those that
employees in the public and private sectors would want. The study further depicts that
principle of equity was not followed with the result the employee was not satisfied from
their employers. Though the position was less serious in private sector as gap worked out
between present and expected level of human resource services was small but still there is
need that the matter should be taken care off.
Saeed (2013) investigated the impact of organizational culture, personal issues, job content,
and monetary incentives on Pakistan's banking industry. By employing SPSS software and
multiple regression analysis, the study uses 200 employees as its sample. According to the
survey, companies with friendly managers have a greater impact on the productivity of
their workforce. The results of this study have also shown a link between financial
incentives and employees' loyalty.
Mehta (2014) examined that how human resource procedures affected employees' job
satisfaction at Pakistani banks, both foreign and domestic. The study concentrated on how
HR policies like performance evaluation, promotion practices, compensation practices,
working environment, and supervisory relationships affected how satisfied employees
were with their jobs in Pakistan's banking industry. According to the study, there is a
significant and favorable correlation between various human resource practices and
employee work satisfaction.
Saxena and Rai (2015) undertook a study on impact of performance appraisal on employee
commitment and job satisfaction in the service sector in India. The study is based on an
online questionnaire survey to collect the data. The results of the study were analyzed
statistically by correlation and regression using SPSS software. The study concluded that
17
the employees who were satisfied with the performance appraisal system of their
organization were also satisfied with their job and were committed to their organization.
Hassan (2016) cited into how HRM procedures affected workers' performance in Pakistan's
textile industry. 68 employees in the textile sector participated in the study, which used a
questionnaire-based data collection method based on 34 items. The study found a strong
correlation between employee performance and human resource management techniques,
remuneration, career planning, performance reviews, training, and employee involvement.
According to the study, offering employees the chance to make wise decisions can improve
employee performance.
2.2.3. Review of Nepalese Studies
The study on HR practices in Nepalese corporate organizations was reviewed by Baniya

(2004). Human resource development strategies in Nepalese firms place proper emphasis
on identifying the possibilities for employee development that are offered, monitoring the
investment made in them, and analyzing the effects of offering such chances in a company.
According to the survey, the majority of the business neither has a personnel manager to
oversee human resources matters nor does it set aside money in its yearly program for
human resource development. There is evidence that organizations give human resources
a low priority.
In his 2008 study, Pandey found a strong correlation between the elements of an employee's
dedication, such as personal, career, and job-related benefits of training and development.
The study found a strong correlation between HRM strategies and their effects on employee
engagement and organizational performance. The evolving view of HRM in Nepal
examines the current view of HRM, including HR departments, HR policies and strategies,
HR planning, recruiting and selection, training and development, performance evaluation,
compensation and benefits, employee relations, and communication. Due to the centralized
organizational structure, line managers are heavily involved in the formulation and
implementation of HR policies, and the majority of HR decisions are made in the central
office (Gautam, 2012).
18
Maharjan (2013) looked into Nepalese organizations' HR practices. By contrasting the
HRM practices of Japanese and American firms, this study distinguishes the HRM system
of Nepalese organizations. Results from 16 qualitative case studies undertaken in Nepalese,
Japanese, and US companies were provided in the study. The results showed that the US
and Japanese businesses in Nepal are using a hybridized set of human resources
procedures. The research also underlines that when choosing personnel, core values such
as experience, potential, loyalty, independence, diversity, job expertise, market image,
degree of confidence, and good health are taken into consideration. The study found that
most significant Nepalese businesses are investing more in training and development.
Moreover, the finding showed that majority of Nepalese company lack fairness in
evaluation process. The outcome of appraisal is linked with pay increment, promotion,
training and development and feedback to employees for their area of improvements.
To investigate the effects of employee engagement on job satisfaction, employee

perceptions of fairness, and organizational commitment of Nepalese commercial banks,
Pandey (2016) conducted the study. 160 observations from 15 commercial banks serve as
the study's major data source. To gather the data, a systematic questionnaire is created. The
study found a favorable correlation between employee participation and job happiness,
employee perceptions of fairness, and organizational commitment. According to the
findings, in order to increase staff participation in the organization, trust should be
developed through fairness in judgment, discussion of their interest in a particular job,
inclusion of staff in every decision-making process, and job rotation to maintain staff
satisfaction and commitment to work.
Many academics have come to the conclusion following a thorough assessment of the
literature that the importance of good human resource management techniques in the
effective operation of any organization cannot be understated. Several academics have
stressed the crucial role that human resource procedures play in enabling employees to give
clients high-quality service (Horwitz & Neville, 1996). Previous studies have concentrated
on human resource management strategies that support service climate by demonstrating
concern for both employees and customers in order to pinpoint the causes of a service
climate (e.g., Borucki & Burke, 1999; Iddekinge et al., 2009; Schneider et al.1998).
19
Organizations can demonstrate a concern for their employees by effectively implementing
sound human resource practices and policies, such as reward systems, promotions,
performance appraisal systems and human resource development programs that motivate
employees to provide quality service to customers. A considerable body of research in the
marketing literature indicates that customer perceptions of service quality will increase
customer retention and ultimately firm performance as well.
Although the airlines still need to make more substantial changes to adopt strong human
resource management procedures, they have mostly accepted new public management
systems that will improve effective service delivery. Yet, survey results indicate that there
are still a number of concerns with regard to procedures for managing human resources
that need to be resolved. There is a connection between customer satisfaction and staff
worries, according to some human sciences researchers that have looked into the service
environment and business performance. These results are significant because they extend
our knowledge of how service climate and customer happiness might predict customer
retention and airline employee performance. They also validate the existing correlations
between service climate and customer satisfaction.
2.3 Research Gap
The association between employee commitment to various human resource practices has
been established through a number of quantitative research. Yet, these analyses have led to
contradictory findings. Several studies suggest a connection between certain human
resource policies and employee commitment. A review of the literature reveals some
research gaps. In both developed and developing nations, research has been done on
various human resource management strategies as well as employee commitment and
performance. Studies of this scope are not carried out in developing nations like Nepal. In
order to understand Nepal's status in relation to developed nations, it is crucial to consult
academic research, namely the devoted staff of Nepalese private airlines. Thus, considering
the research gap particularly in Nepalese context, this study proposes a framework to
determine the key factors from human resource planning, recruitment and selection,
20
training and development, performance appraisal, reward and recognition, leadership and
employee commitment in Nepalese private domestic airlines.
This study makes an effort to investigate the effects of various organizational variables on
worker performance in the setting of private domestic airlines operating in Nepal. Analysis
of various academic works demonstrates that several research have been done over time
that relate organizational characteristics with employee commitment in various ways. Yet,
the majority of the investigations were conducted in developed nations. Such studies are
not available in nations like Nepal. There are many problems with the studies, even when
they are found in the setting of Nepal. These studies have a limited sample size, so it is
impossible to generalize the results. Similar to this, research conducted in Nepal are based
on specific organizations. As a result, it is challenging to extrapolate study results from a
single organization to other organizations. Therefore, findings of study based on single
organization are difficult to generalize for other organizations. Therefore, this study has
been conducted to analyze the factors affecting employee commitment and performance in
Nepalese private domestic airlines using more recent data.
2.4 Conceptual Framework
An analytical tool with numerous modifications and settings is a conceptual framework.

The ideas that make up a wide notion are held together by a theoretical framework of
presumptions, principles, and guidelines. It is employed to classify concepts and arrange
ideas. Powerful conceptual frameworks capture reality in an approach that is simple to
recall and use. As the conceptual framework is potentially so close to empirical
investigation, it can function as a map that gives coherence to that research and can take
various shapes depending on the research topics or difficulties.
Conceptual framework highlighted the connection between a few major issues regarding
various human resource practices and their effects on the commitment and job satisfaction
of employees. Using human resource planning, recruitment and selection, training and
development, performance appraisal, reward systems, and leadership as the measurement
21
methods, this conceptual framework examines the effects of various human resource
activities on job commitment.
The study's schematic diagram is displayed in Figure 1. Employee commitment is the

study's dependent variable. Human resource planning, recruiting and selection, training and
development, performance evaluation, incentive system, and leadership are the
independent factors of the study.
22
Figure 1: Conceptual Framework of the study
Human Resource Management

The conceptual framework shows the different variables to link the impact of performance
appraisal on employees' commitment in private domestic airlines. The variables of human
resource practices
Humanand employees commitment are based on the literature reviews based on
Resource
the study ofPlanning
impact of human resource practices on employees' commitment in private
domestic airlines of Nepal.
Recruitment &
2.5 Operational
Selection Definition
According to Armstrong, M. (2009), human resource planning is “the process
Training &
by which a management determines how an organizationEmployee
Development should make from its
commitment
current manpower position to its desired manpower position".
2.5.2 Performance
Recruitment and Selection
Appraisal
According to Tiwari, (2012), Recruitment and selection refers to the chain and
sequence of activities pertaining to recruitment and selection of employable
Reward &
candidates and job seekers for an organization.
Recognition
Leadership
According to Patrick, J. (1992), Training and Development is a subsystem of
an organization which emphasize on the improvement of the performance of
individuals and groups. Training is an educational process which involves the
sharpening of skills, concepts, changing of attitude and gaining more
knowledge to enhance the performance of the employees. Good & efficient
23
2.5 Operational Definition
According to Hassan, (2016), The Human Resource Planning is the process of

finding the right number of people for the right kind of a job, at a right time and
the right place, by forecasting the organization’s demand for and supply of
human resources in the near future.
2.5.2 Recruitment and Selection
According to Dessler, (2009), Recruitment and selection refers to the chain and
sequence of activities pertaining to recruitment and selection of employable
candidates and job seekers for an organization.
According to Patrick, (1992), Training and Development is a subsystem of an

organization which emphasize on the improvement of the performance of
individuals and groups helps in their skills & knowledge development, which
eventually helps a company improve.
2.5.4 Performance Appraisal
According to Roberts, (1996), Performance Appraisal is defined as a systematic

process, in which the personality and performance of an employee is assessed
by the supervisor or manager, against predefined standards, such as knowledge
of the job, quality and quantity of output, leadership abilities, attitude towards
work, attendance, cooperation, judgment, versatility, health, initiative and so
forth.
24
2.5.5 Reward and Recognition
According to Shah, (2010), Employee rewards and recognition system is not

just a positive thing to do with people but communicating it effectively is an
efficient tool in encouraging them to create and bring business.
2.5.6 Leadership
According to Femi, (2014). Leadership in business is the capacity of a

company's management to set and achieve challenging goals, take fast and
decisive action when needed, outperform the competition, and inspire others to
perform at the highest level they can.
2.5.7 Employee Commitment
According to Walton, (1985), Employee Commitment is the psychological

attachment and the resulting loyalty of an employee to an organization.
25
Chapter III
Research Methodology
Research technique is a broad notion. It can be categorized as a method of conducting
research and gathering new knowledge or as a tool for solving problems. For the study to
be successful, it is crucial to choose a suitable research methodology because it directly
affects the other study chapters. This chapter outlines every action that must be taken
throughout the course of this research project in order to attain and complete the study's
goal. This chapter also examines the information-gathering methodology. There are six
sections in this chapter. The research strategy and study design are described in section
one. The description of the sample is covered in the second section. The second section
deals with the description of the sample. Section three explains the instrumentation of the
study. Section four describes data collection procedure and time frame. Similarly, fifth
section deals with validity and reliability with its test result and finally last section deals
with the analysis plan.
3.1 Research Plan and Design
In order to address the fundamental concerns related to human resource practices and their
effects on employee commitment of the private domestic airlines in the context of Nepal,
the study design is based on descriptive statistics and exploratory research design. The
design has been used to gather relevant facts and conduct suitable information searches on
the factors influencing employee work performance.
3.2 Description of the Sample
The study's data came from original sources. About 275 full-time employees of Nepal's
private domestic airlines make up the study's entire population. The study took into account
7 private domestic airlines operating in the Kathmandu valley in order to analyze the effect
of human resource practices on employees' commitment. For the aim of the study,
straightforward convenience sample techniques were employed. 100 respondents make up
the study's entire sample of observations. The list of private domestic airlines chosen for
26
the study, together with the number of observations, are displayed in Table 1. Table 1 List
of sample private domestic airlines along with total number of respondents
S.N. Name of the Private Domestic Airlines Sample No. of Response

1 Buddha Air 15 15
2 Yeti Airlines 15 15
3 Saurya Air 15 14
4 Shree Airlines 15 14
5 Simrik Air 15 14
6 Goma Air 15 14
7 Summit Air 15 14
Total 105 100
Source: Field Survey, 2018/19
3.3 Instrumentation
Primary data sources are the foundation of the investigation. The primary research data
were gathered through questionnaire surveys. The study's goals informed the design of a
questionnaire, which included questions of their own. The results of the questionnaire
analysis were laid up in a table format for easy display and conclusion-drawing. The
findings from the survey were confirmed in light of what other academics have written on
each issue in the literature review. The 36 open-ended questions were summarized,
narrowed, and analyzed based on themes and conclusions.
The quiz was created using the abridged version of Allen and Meyer's (2003) Human
Resource Commitment and People Management by Mamoria (1992). For each sample
private domestic airline, the study's dependent and independent variables' data are gathered
and individually coded. The SPSS program is used to examine the primary data. To
establish a meaningful relationship between the dependent and independent variables, the
SPSS program includes descriptive statistics, correlation, and regression capabilities.
27
3.4 Data Collection Procedure
This section discusses into further detail on the methods used to get the data for this study.
The questionnaire survey was used to obtain data. Those who responded were residents of
the Kathmandu Valley. There are roughly 275 universes in all, of which 100 responses
were gathered. Contract workers are not included in the study because the respondents are
full-time airline employees. The questionnaire was broken into several pieces, with the first
section asking for the respondent's personal information and the remaining sections asking
questions on a nominal scale. As a result, these questionnaires served as the main method
for gathering data. The responders are domestic private airline personnel. This study has
been designed to understand the opinions of the respondents regarding the different factors
affecting human resource practices on employee job performance in private domestic
airlines. Structured questionnaire has been used to collect the required information from
the employees of private domestic airlines.
3.5 Reliability and Validity
On the other hand, reliability refers to the test's credibility and primarily evaluates
measurement methods and measurement findings. Reliability is the degree to which results
are stable over time and a true reflection of the entire population under study. If the findings
of a study can be replicated using a more limited technique, the research instrument is said
to be trustworthy.
Validity refers to the truthfulness of findings. It determines whether the study truly
measures what it was intended to measure or how truthful the study results are. It refers to
the accuracy of a measure and a measurement is valid when it measures and performs the
functions that it supports. It is the degree to which a measure accurately represents what is
it supposed to measure.
Cronbach's alpha is employed in this study to evaluate the trustworthiness of the primary
data. It enables us to assess the dependability of the various categories. It depends on the
total number of test items as well as the average level of item correlation. Estimates of the
28
percentage of variance in scores of various variables that can be attributed to chance or
random errors make up Cronbach's alpha. A value of greater than or equal to 0.7 is typically
regarded as satisfactory and a good sign of construct dependability.
Using the use of SPSS, the reliability test was calculated for each section of the
questionnaire on the impact of human resource procedures on employee commitment in
domestic private airlines. The instrument's reliability and validity were demonstrated by
the reliability and validity results, which showed that it had a Cronbach's alpha of 0.846,
which was higher than the threshold of 0.7. This indicates that 84.6% of the data collected
for the study are trustworthy. The study makes use of an established, trustworthy, and valid
questionnaire.
Table 2 Reliability
Reliability Statistics
Cronbach's Alpha N of Items
.846 36
3.6 Analysis Plan
In the context of private domestic airlines, this section presents how empirical data was
used for research to examine the impact of human resource strategies on employee
performance. All of the data was first gathered via questionnaire, after which it was
organized. The Statistical Package of Social Science (SPSS) computer program was used
to analyze and interpret the data after collecting all the completed questionnaires from the
respondents. The respondent's complete responses were tallied, categorized, and entered
into an SPSS spreadsheet. The responses were analyzed and interpreted, and the results
were then presented.
The surveys were constructed using a five-point Likert scale, and respondents were asked
to rate their agreement or disagreement with certain statements about human resource
management methods and their effect on employees' loyalty to domestic commercial
29
airlines. The questionnaire asks respondents for personal information such their gender,
educational background, and job title.
The correlation analysis of primary data is covered in the last section of data analysis.
Several methods, including frequencies, descriptive statistics for mean values, and standard
deviation were employed to produce the results.
30
Chapter: IV
Data Presentation and Analysis
This chapter offers a methodical presentation, interpretation, and analysis of the key data
obtained from the survey given to staff members of private domestic airlines addressing
the many elements influencing employee commitment. For the purpose of the study,
various statistical and regression models mentioned in the preceding chapter were applied.
Three sections make up this chapter. The major data presentation and analysis, as well as
the findings of the questionnaire survey, are covered in the first part. The examination of
the regression model, including correlation analysis, is covered in the second section.
Conclusions based on the results of the primary data analysis are covered in the third
section of this chapter.
4.1. Presentation and Analysis of Data
This chapter offers a methodical presentation, interpretation, and analysis of the key data
obtained from the survey given to staff members of private domestic airlines addressing
the many elements influencing employee commitment. For the purpose of the study,
various statistical and regression models mentioned in the preceding chapter were applied.
Three sections make up this chapter. The major data presentation and analysis, as well as
the findings of the questionnaire survey, are covered in the first part. The examination of
the regression model, including correlation analysis, is covered in the second section.
Conclusions based on the results of the primary data analysis are covered in the third
section of this chapter.
4.1.1. Respondents’ Profile
The respondent's profile provides details regarding their character traits based on their
gender, age, educational background, and organizational position. We can therefore accept
the reality that demographic factors are usually used as a foundation for comprehending
client characteristics. Understanding employee behavior requires a grasp of their
31
demographic traits. So, the demographic information of the respondent who owns private
domestic airlines is described in this part.
The Table 3 shows the number of respondents with the classification on gender, age,
academic qualification, organizational.
Table 3 Demographic Characteristics of the Respondents
Variables Number of respondents Percentage
Gender
Male 42 42.0
Female 58 58.0
Age group (in years)
20-24 years 32 32.0
25-29 years 36 36.0
30- 34 years 16 16.0
35-39 years 8 8.0
40 and above 8 8.0
Academic qualification:
Intermediate and below 28 28.0
Bachelor degree 38 38.0
Master degree 32 32.0
M.Phil. and above 2 2.0
Organizational Position
Assistant 37 37.0
32
Supervisor 27 27.0
Trainee 16 16.0
Manager 20 20.0
Source: Field Survey,
4.1.3 Opinion of Respondents About Human Resource Planning on Private Domestic

Airlines.
Table 4 shows the number and percentage of responded who involved in private domestic
airlines at various job positions. The figures reported are number of respondents,
percentage of respondents’ number, and mean. The statement based on human resource
planning is five Likert scale strongly agree, agree, neutral, disagree and strongly disagree.
Table 4 Opinion of Respondents About Human Resource Planning Practices on Private

Domestic Airlines
Statement SA A N D StD M SD
1. Airline analyze internal inventory F 30 25 40 5 0 2.2 0.932034

of Human Recourse Capabilities
2. Long term human resources F 50 35 10 5 0 1.7 0.84686

requirement are analyzed in Airline
3. Airlines forecasting the number F 15 20 55 10 0 2.6 0.864566

and type of people needed to meet
organizational objectives
4. Human resource information F 20 15 40 15 10 2.8 1.214392

system is effectively applied in the
airline
33
5. Average mean 2.325
Source: field survey
Table 4. shows the analysis of human resource planning in the context of private domestic
airlines. The majority of the respondents i.e., 55 percent believes that analyze internal
inventory of human resource capabilities while 40 percent of the respondents were neutral
about this statement and 5 percent respondents do not believe this statement.
The majorities of the respondents (85 percent) believe that long term human resource
requirement is analyzed in airlines while 5 percent of the respondents do not believe that
long term human resource requirement are analyzed in airlines and 10 percent respondents
were neutral on the statement.
The majorities of the respondents (55 percent) were neutral with the airlines forecasting
the number and type of people needed to meet organizational objectives while 10 percent
of the respondents were not satisfied with the statement and 35 percent of the respondents
were satisfied about the statement that airlines forecasting the number and type of people
needed to meet organizational objectives.
The majorities of the respondents (40 percent) were neutral with human resource
information system is effectively applied in the airlines while 35 percent of respondents
were satisfied with this statement and 25 percent of the respondents do not believe that
human resource information system is effectively applied in the airlines.
The average mean for human resource planning is 2.32 which indicate that human resource
planning in private domestic airlines has been executed properly. Therefore, human
resource planning variable have significant effect on employee commitment.
34
4.1.4 Opinion of Respondents of Recruitment and Selection in Private
Domestic Airlines
Table 5 shows the number and percentage of responded who involved in private domestic
airlines at various job position. The figures reported are number of respondents, percentage
of respondents’ number, and mean. The statement based on recruitment and selection in
five Likert scale strongly agree, agree, neutral, disagree and strongly disagree.
Table 5 Opinion of Respondents About Recruitment and Selection Practices on Private

Domestic Airlines
1. The organization has the clear job F 35 22 23 18 2 2.3 1.1849

analysis to every employee.
2. The airline provides clear job F 22 28 35 13 2 2.45 1.0384

description and job specification for
each employee to achieving its vision.
3. The airline collects data and F 49 31 15 4 1 1.77 0.9195

information about recruitment criteria
from staff to improve their job.
4. The recruitment and selection process F 48 12 31 6 3 2.04 1.1452

are lawful in the airline.
5. Airlines follow the fairness for the F 15 20 55 10 0 2.6 0.8645

selection of new employee.
2.232
6. Average Mean
35
Regarding, the response on statement “The organization has clear job analysis to every
employee” majority of the respondents (57 percent) agreed that clear job analysis is decided
on a fair manner. However, 20 percent of the respondents were disagreed with the
statement. On the other hand, 23 of the respondents were neutral towards the statement.
Regarding the responses on the statement “The airlines provide clear job description and
job specification for each employee to achieving its vision” the majority respondents (50
percent) agreed that the clear job description and job specification is competitive to similar
organizations of similar services. However, 15 percent of the respondents were disagreed
and 35 percent of the respondents were neutral towards the statement.
Regarding the responses on the statement “The airlines collect data and information about
recruitment criteria from staff to improve their job” the majority respondents (80 percent)
agreed with the statement. However, 5 percent of the respondents were disagreed and 15
percent of the respondents were neutral towards the statement.
Regarding the responses on the statement “The recruitment and selection process is lawful
in the airlines” the majority respondents (60 percent) agreed that the selection process is
lawful. However, 9 percent of the respondents were disagreed and 31 percent of the
respondents were neutral towards the statement.
Regarding the responses on the statement “Airlines follow the fairness for the selection of
new employee” the majority respondents (55 percent) were neutral. However, 35 percent
of the respondents were agreed and 10 percent of the respondents were disagreed towards
the statement.
The mean of the level ranges from a minimum of 1.77 to the maximum of 2.6. On overall,
the average mean value of recruitment and selection is 2.232 which indicate towards agreed
with the recruitment and selection process of their respective organization.
36
4.1.5 Opinion of Respondents about Training and Development in
Private Domestic Airlines
Table 6 shows the training and development perceived by employee in private domestic
airlines. The figures reported are number of respondents, percentage of respondents’
number, and mean. The statement based on training and development is five Likert scale
strongly agree, agree, neutral, disagree and strongly disagree.
Table 6 Opinion of Respondents About Training and Development Practices on Private

Domestic Airlines
1. Airline frequently conduct Training F 12 38 30 15 5 2.63 1.0411

Need Assessment.
2. Airline frequently arranges training to F 13 16 45 15 11 2.95 1.1315

learn new things for the employee.
3. The airlines consider developing F 23 38 31 7 1 2.25 0.9252

knowledge and skills of staff as an
investment.
4. The airline works on the development F 12 41 33 8 6 2.55 1.0088

of its staff to achieve better
performance.
5. Average Mean
2.595
Table 6 shows that the majorities of the respondents (50 percent) believe that the airline
frequently conduct training need assessment while 20 percent of the respondents do not
37
believe that statement and 30 percent of the respondents neither agrees nor disagrees with
this statement.
The majorities of the respondents (45 percent) were neutral that the airlines frequently
arrange training to learn new things while 29 percent of the respondents are satisfied with
this statement and 26 percent of the respondents do not believe that the airlines frequently
arrange training to learn new things for the employee.
The majorities of the respondents (61 percent) believe that the airlines consider developing
knowledge and skills of staff as an investment. While 31 percent of the respondents neither
agrees nor disagrees with this statement and 8 percent respondents do not believe with this
statement.
The majorities of the respondents (53 percent) believe that the airline works on the
development of its staff to achieve better performance. While 33 percent of the respondents
neither agrees nor disagrees with this statement and 14 percent respondents do not believe
that the airlines work on the development of their staff for better performance.
Average mean for training and development is 2.59 which indicate that training and
development in the context of private domestic airlines has been executed properly. This
also indicates that in private domestic airlines employees are satisfied with the training and
development system implemented by their organization.
38
4.1.6 Opinion of Respondents About Performance Appraisal Practices on
Employee Commitment in Private Domestic Airlines
This section provides the information regarding performance appraisal. The presence of
appropriate performance appraisal system motivates employee to perform better. It is not
only increasing job satisfaction, but also helps to lower down the employees’ intention to
quit the job. The respondent’s opinion regarding the performance appraisal is presented in
Table 7.
Table 7 shows the performance appraisal practices on Employee Commitment in Nepalese

Hotel Industry. The figures reported are number of respondents, percentage of respondents’
number, and mean. The statement based on performance appraisal is five Likert scale
strongly agree, agree, neutral, disagree and strongly disagree.
Table 7 Opinion of Respondents about Performance Appraisal Practices on Private

Domestic Airlines
1. I regularly receive feedback on my job F 15 36 35 8 6 2.54 1.0388

performance.
2. Performance appraisal is valuable to F 25 36 25 7 7 2.35 1.140

me in identifying my strengths and
weaknesses
3. Performance appraisal process is fair in F 5 25 20 30 20 3.35 1.200

the organization.
4. I get a chance to rate my own F 5 15 35 35 10 3.3 1.010

performance.
5. My supervisor gives me praise and F 8 12 38 30 12 3.26 1.0789

recognition when I do a good job.
39
6. Average Mean 2.96
The Table 7 indicates the responses on performance appraisal. Out of 100 respondents, 51
respondents (51 percent) agree that they regularly receive feedback on their job
performance while 14 percent respondents think that they do not receive regular feedback
on their job performance while 35 percent respondents are indifferent on the statement.
The majority of respondents (61 percent) are satisfied with the appraisal process of their
organization while 14 percent of the respondents are not satisfied with the appraisal process
of their organization. The remaining 25 percent of the respondents are indifferent on the
statement from the table, we can see that 50 percent of the respondents think that
performance appraisal is not fairness to the employee while remaining 30 percent of total
respondents are believed that performance appraisal is fair and 20 percent are neutral.
The mean value of all these five questions lies between 2.35 and 3.35 with an average mean
of 2.96 which indicates that performance appraisal in the context of private domestic
airlines has been implemented properly and reflects fairness.
4.1.7 Opinion of Respondents about Reward and Recognition in Private

Domestic Airlines
Table 8 shows the percentage, frequency, number of respondents and mean of employees’
perception regarding reward and recognition system on an organization.
Table 8 Opinion of Respondents about Reward and Recognition on Private Domestic

Airlines
40
1. I have adequate opportunities for F 7 60 20 7 6 2.45 0.9468
professional growth in this
organization.
2. The benefit sharing is competitive to F 6 48 35 8 3 2.54 0.8459

similar organizations of similar
services.
3. My work is challenging, stimulating, F 4 22 45 19 10 3.09 0.9857

and rewarding in the organization
4. The incentives provided by airline give F 11 15 53 12 9 2.93 1.0372

me sense of accomplishment.
2.75
5. Average Mean
Table 8 shows the analysis of reward and recognition system in the context of private
domestic airlines of Nepal. The majorities of the respondents (67 percent) believe that they
have adequate opportunities for professional growth in this organization while 20 percent
of the respondents neither agrees nor disagrees with this statement and 13 percent of
respondents does not believe that they have adequate opportunities for professional growth
in this organization.
The majorities of the respondents (54 percent) believe that benefit sharing is competitive
to similar organizations of similar services while 35 percent of the respondents neither
agrees nor disagrees with this statement and 11 percent of respondents do not believe that
benefit sharing is competitive to similar organizations of similar services.
The majorities of the respondents (45 percent) believe that they are neutral with the work
is challenging, stimulating, and rewarding in the organization while 26 percent of the
respondents are satisfied with this statement and 29 percent of the respondents do not
believe that work is challenging, stimulating, and rewarding in the organization.
41
The majorities of the respondents (53 percent) neither agrees nor disagree with the
statement that incentives provided by airline give them sense of accomplishment while 21
percent of the respondents do not believe that incentives provided by airline give them
sense of accomplishment and 26 percent of the respondents believe that incentives
provided by airline give them sense of accomplishment.
The average mean for reward and recognition is 2.75 which indicate that reward and
recognition in the context of private domestic airlines has been executed properly. Thus, it
can be concluded that employees are satisfied with reward and recognition system
established by the airlines.
4.1.8 Opinion of Respondents about Leadership in Private Domestic

Airlines
Table 9 shows the percentage, frequency, number of respondents and mean of employees’
perception regarding leadership on the organization. The statement based on employee
retention is in five Likert scale strongly agree, agree, neutral, disagree and strongly
disagree.
Table 9 Opinion of Respondents About Leadership on Private Domestic Airlines
1. Teamwork is encouraged and practiced F 1 55 35 3 6 2.58 0.830

in this organization
2. Decision making is participatory in this F 12 45 25 9 9 2.58 1.1026

organization.
3. I have open and free flowing F 5 44 42 0 9 2.64 0.9376

communication with top management
42
4. My supervisor provides good feedback F 5 39 34 12 10 2.83 1.045
to my work.
5. Everybody is treated fairly in this F 14 43 31 3 9 2.5 1.0683

organization.
2.63
6. Average Mean
The majorities of the respondents (56 percent) believe that teamwork is encouraged and
practiced in this organization while 35 percent of the respondents are neutral about the
statement and 9 percent of the respondents do not believe that teamwork is encouraged and
practiced in this organization.
The majorities of the respondents (57 percent) believe that decision making is participatory
in this organization while 25 percent of the respondents neither agrees nor disagree with
the statement and 18 percent of the respondents do not believe that decision making is
participatory in this organization.
The majorities of the respondents (49 percent) believe that there is open and free flowing
communication with top management while 42 percent of the respondents are neutral about
this statement and 9 percent respondents do not believe that there is open and free flowing
communication with top management.
The majorities of the respondents (44 percent) believe that the supervisor provides good
feedback to their work while 34 percent of the respondents neither agree nor disagree with
the statement and 22 percent of the respondents do not believe that the supervisor provides
good feedback to their work.
The majorities of the respondents (57 percent) believe that everybody is treated fairly in
this organization while 31 percent of the respondents are neutral about the statement and
12 percent of the respondents do not believe that everybody is treated fairly in this
organization.
43
Average mean for aspects of leadership is 3.37 which indicate that leadership system in the
context of Nepalese private domestic airlines has been executed properly. Thus, it can be
concluded that employees are satisfied with their leader or top management in private
domestic airlines.
4.1.9 Opinion of Respondents about Employee Commitment in Private Domestic

Airlines.
The table 10 shows the percentage, frequency, number of respondents and mean of
employees’ perception regarding employee commitment on the organization. The
statement based on employee retention is in five Likert scale strongly agree, agree, neutral,
disagree and strongly disagree.
Table 10 Opinion of Respondents About Employee Commitment on Private Domestic

Airlines
1. I would be happy to spend the rest F 22 61 8 9 0 2.04 0.8155

of my career with this organization
2. I really feel as if this organization's F 4 45 20 16 15 2.93 1.1742
problems are my own.
3. This organization has a F 15 37 38 9 1 2.44 0.8912
‘sentimental value’ to me.
4. I am afraid of what might happen if F 18 43 21 11 7 2.46 1.1229
I quit my job without having
another one lined up.
5. One of the major reasons I continue F 12 55 24 3 6 2.36 0.9483
to work for this organization is that
leaving would require considerable
personal sacrifice.
44
6. I feel that I have a few options to F 23 31 37 7 2 2.34 0.9767
consider leaving this organization.
7. I think people these days move F 15 36 35 8 6 2.54 1.0388
from company to company too
often.
8. I do believe that a person must F 12 45 25 9 9 2.58 1.1026
always be loyal to his/her
organization.
9. Things were better in the days F 11 15 53 12 9 2.93 1.0372
when people stayed with one
organization for most of their
career life. 2.52
10. Average Mean
The majorities of the respondents (83 percent) believe that they are be happy to spend the
rest of their career with this organization while the 8 percent of the respondents neither
agrees nor disagrees with the statement and 9 percent of the respondents do not believe that
they are happy to spend the rest of their career with this organization.
The majorities of the respondents (45 percent) neither agrees nor disagree with the
statement that they would be very happy to spend the rest of their career with their
organization while 24 percent of the respondents believe that they would be very happy to
spend the rest of their career with their organization and 31 percent of the respondents do
not believe that they would be very happy to spend the rest of their career with their
organization.
The majorities of the respondents (52 percent) are agreed about the statement that the
organization has a ‘sentimental value’ to them while 38 percent of the respondents neither
agrees nor disagree with the statement and 10 percent of the respondents do not believe
that the organization has a ‘sentimental value’ to them.
45
The majorities of the respondents (44 percent) believe that they have too few options to
consider leaving that organization while 37 percent of the respondents are neutral about
this statement and 9 percent of the respondents do not believe that they have too few options
to consider leaving that organization.
Average mean for aspects of employee commitment is 2.52 which indicate that employee
commitment in the private domestic airlines is good. Thus, it can be concluded that
employee is committed to their job in private domestic airlines of Nepal.
4.2 Correlation Analysis
The term correlation refers to the strength of a relationship between two variables. A strong
or high correlation means that two or more variables have strong relationship with each
other while a weak or low correlation means that the variables are hardly related. Pearson
correlation coefficients of different independent variables with employee commitment of
private domestic airlines have been presented in Table 11.
Table 11 Pearson Correlation Coefficients Matrix for The Dependent and Independent
Variables
Correlations
HRP RS TD PA RR L EC
HRP 1
RS .978** 1
TD .971** .970** 1
PA .976** .970** .984** 1
RR .940** .936** .973** .962** 1
L .932** .953** .960** .951** .964** 1
EC .962** .968** .990** .980** .981** .978** 1
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Survey data
46
Table 11 shows the Pearson correlation coefficients between different variables use in this
study. The correlation coefficients are based on the primary data collected from 7 sample
private domestic airlines. EC (employee commitment is the affective, continuance and
normative in order to satisfy and retain the customer), are the dependent variable. HRP
(human resource planning) RS (recruitment and selection), TD (training and development),
PA (performance appraisal is to evaluate the performance of employees to ensure the
performance up to the standard of the organizations), RR (reward and recognition) and L
(leadership) are independent variables.
The table 11 shows that recruitment and selection is positively correlated to employee
commitment. Fairness and lawful recruitment and selection system leads to increase in
employee commitment. Similarly, training and development is positively related to
employee commitment. Increase in training and development leads to increase in employee
commitment. Likewise, performance appraisal is also positively related to employee
commitment. It indicates that more effective the performance appraisal system, higher
would be the employee commitment. Reward and Recognition is also positively related to
employee commitment. Higher the reward and recognition to employee, higher would be
the employee commitment. The results also indicate that leadership is positively correlated
to the employee commitment. Higher the quality of leadership, higher would be the
employee commitment.
4.3 Inferential Statistical Analysis
This section of analysis covers all the statistical analysis made to verify the hypotheses and
ascertain the significance. It deals with to what extent variables under study are correlated
to each other. Inferential statistics are procedures used that allow researchers to infer or
generalize observations made with samples to the larger population from which they were
selected. It enables use of one or more samples of observations to infer values of a
population. It produces new information by making predictions and generalizations based
on samples. Pearson correlation test was conducted to see the correlations between the
independent variable and dependent variables.
47
Pearson’s correlation analysis was carried out to identify the positive correlation. A
positive reveal that the direction of the relationship is positive with one increasing in
reaction to the other’s increase. Meanwhile, a negative correlation reveals an inverse of the
above.
4.3.1 Human Resource Planning and Employee Commitment
Table 12 Relationship Between Human Resource Planning and Employee Commitment
HRP EC
HRP Pearson Correlation 1 .862**
Sig. (1-tailed) .000
N 100 100
Table 12 shows that correlation analysis between Human Resource planning and employee
commitment. Since, the P value is less that alpha i.e., 0.00< 0.01, the correlation is
significant at 0.01 level of significance. Further, with the correlation coefficient value of
0.862, it can be said that there is a good positive relationship between human resource
planning and employee commitment. Hence, there is a positive and significant relationship
between human resource planning and employee commitment.
4.3.2 Recruitment and Selection and Employee Commitment
Table 13 Relationship Between Recruitment and Selection and Employee Commitment
RS EC
RS Pearson Correlation 1 .828**
48
N 100 100
Table 13 shows that correlation analysis between recruitment and selection and Employee
commitment. Since, the P value is less that alpha i.e. 0.00< 0.01, the correlation is
0.828, it can be said that there is a good positive relationship between recruitment and
selection and Employee commitment. Hence, there is a positive and significant relationship
between Recruitment and Selection and Employee Job Commitment.
4.3.3 Training and Development and Employee Commitment
Table 14 Relationship between Training and Development and Employee Commitment
TD EC
TD Pearson Correlation 1 .840**
N 100 100
Table 14 shows that correlation analysis between Training and Development and Employee
commitment. Since, the P value is less that alpha i.e., 0.00< 0.01, the correlation is
0.840, it can be said that there is a weak positive relationship between training and
development and Employee commitment. Hence, there is a positive and significant
relationship between Training and Development and Employee Commitment.
4.3.4 Performance Appraisal and Employee Commitment
Table 15 Relationship between Performance Appraisal and Employee Commitment
49
PA EC
PA Pearson Correlation 1 .831**
N 100 100
Table 15 shows that correlation analysis between Performance Appraisal and Employee
Commitment. Since, the P value is less that alpha i.e., 0.00< 0.01, the correlation is
0.831, it can be said that there is a good positive relationship between Performance
Appraisal and Employee Commitment. Hence, there is a positive and significant
relationship between Performance Appraisal and Employee Commitment.
4.3.5 Record and Recognition and Employee Commitment
Table 16 Relationship between Reward and Recognition and Employee Job Commitment
RR EC
RR Pearson Correlation 1 .721**
N 100 100
Table 16 shows that correlation analysis between Record and Recognition and Employee
Commitment. Since, the P value is less that alpha i.e., 0.00< 0.01, the correlation is
0.721, it can be said that there is a good positive relationship between Record and
Recognition and Employee Commitment. Hence, there is a positive and significant
relationship between Record and Recognition and Employee Commitment.
50
4.3.6 Leadership and Employee Commitment
Table 17 Relationship between Leadership and Employee Commitment
L EC
L Pearson Correlation 1 .778**
N 100 100
**. Correlation is significant at the 0.01 level (1-tailed)
Table 17 shows that correlation analysis between Leadership and Employee Commitment.
Since, the P value is less that alpha i.e., 0.00< 0.01, the correlation is significant at 0.01
level of significance. Further, with the correlation coefficient value of 0.778, it can be said
that there is a good positive relationship between leadership and Employee Commitment.
Hence, there is a positive and significant relationship between Leadership and Employee
Commitment.
4.4 Regression analysis
In statistical modeling , regression analysis is a set of statistical processes for estimating

40 40 40 40
the relationships among variables. It includes many techniques for modeling and analyzing
several variables, when the focus is on the relationship between a dependent variable and
40 40
one or more independent variables . More specifically, regression analysis helps one
40 40
understand how the typical value of the dependent variable changes when any one of the
independent variables is varied, while the other independent variables are held fixed.
51
Table 18
Regression Analysis
Coefficients a
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) -.128 .035 -3.630 .000
HRP -.062 .060 -.058 -1.032 .305
RS .058 .058 .059 1.011 .315
TD .468 .067 .480 7.010 .000
PA .087 .056 .095 1.550 .124
RR .183 .052 .172 3.490 .001
L .259 .044 .259 5.887 .000
a. Dependent Variable: EC
Source: Survey data
Table 18 displays the results of the linear regression analysis performed to determine the
effect of human resource policies on the loyalty of employees at Nepal's private domestic
airlines. Employee commitment is the dependent variable, and the independent variables
include human resource planning, recruitment and selection, training and development,
performance appraisal, reward and recognition, and leadership.
The result of the finding shows that HRP (b= -.062, p < 0.01) negatively affects employee
commitment. Likewise, recruitment and selection (b=.058, p < 0.01) on employee
commitment and performance appraisal (b=.087, p < 0.01) on employee commitment was
found to be statistically insignificant. Similarly, the effect of training and development on
employee commitment was found statistically significant. The findings depicted that
training and development (b= .468, p < 0.01) positively affects employee commitments. In
the same way beta coefficient of reward and recognition (b=.183, p < 0.01) with employee
52
commitment illustrated that the reward and recognition positively influence the level of
Lastly, the beta coefficient of leadership (b= .259, p < 0.01) show that the leadership of the
private domestic airlines have positive effect on employee commitment. Statistically, each
1-point rise in leadership increase employee commitment by 0.259 points.
4.5 Summary of Result of Hypothesis
Table 19 Summary of Result of Hypothesis
Variables Hypothesis P Result Implication

value
HRP H 1: Human resource .305 Rejected The human
planning has positive resources practices
influence on employee like training and
commitment. development,
reward and
recognition and
RS H2: Recruitment and .315 Rejected
leadership have
Selection has positive
significant
influence on employee
relationship with
commitment
employee
TD H3: Training and .000 Accepted
commitment.
Development has positive
commitment
PA H 4 : Performance appraisal .124 Rejected The human
has positive influence on resource practices
employee commitment like human
RR H5: Reward and .001 Accepted resource planning,
Recognition has positive recruitment and
53
influence on employee selection and
commitment. performance
appraisal has
insignificant
L H 6 : Leadership has positive .000 Accepted
relationship with
employee
commitment.
commitment.
4.6 Discussion
This study's main goal was to determine how human resource procedures affected
employees' commitment in Nepal's domestic private airlines. The results demonstrated that
employee commitment was positively and significantly impacted by training and
development. The outcome is in line with other studies' findings. According to Peteraf
(1993), employee commitment is significantly impacted by training. All of the inclusive
training and development programs assist trainees in concentrating on the attitudes,
abilities, and information required to accomplish objectives. Also, there is a strong link
between employee commitment and training and development.
The study showed that staff commitment was positively and marginally impacted by
human resource planning. The study's findings are at odds with other other studies carried
out over the globe. Delaney and Huselid (1991) looked into how human resource
management practices affected how employees perceived their organizations' performance.
The study looked at how HRP affect organizational outcomes, whether certain practices
have a bigger impact than others, and whether there are any synergies or complementary
aspects of these practices that can further boost employee commitment. The study found a
favorable correlation between HRP and employee commitment.
The study revealed that human resource planning has a modestly beneficial effect on
workforce commitment. The study's conclusions conflict with those of another research
conducted around the world. Delaney and Huselid (1991) examined how employee
perceptions of the performance of their firms were impacted by human resource
54
management methods. The study investigated the effects of HRP on organizational results,
whether some practices have a greater influence than others, and whether there are any
synergies or complementary features of various practices that can further increase
employee commitment. The research discovered a positive relationship between HRP and
Performance review is the next element in human resource procedures. Employee

commitment was positively and negligibly impacted by performance reviews. The findings
are in line with those of another study by Murphy et al. (1995), who looked at how
employee commitment was affected by the quality of performance reviews in multinational
corporations based in Malaysia. The study is based on a questionnaire that was self-
designed and distributed to 133 Malaysian employees of international corporations.
According to the empirical findings, there is a causal link between employee commitment
and the degree of clarity in performance goals, level of rewards, and trust in and fairness
of the performance rating process. According to the study, employee dedication and
performance evaluation are favorably associated.
In this study, rewards and recognition had a favorable and significant impact on workers'
dedication. The outcome is in line with other studies' findings. According to Abowd (1990),
employee loyalty is favorably correlated with rewards and recognition. The analysis
forecasts a favorable association between the degree of performance sensitivity in the
compensation plan and corporate profits in 225 organizations based on the agency theory.
The outcome revealed that over 99,000 unique executive pay observations suggest the level
of commitment, leading researchers to draw the conclusion that recognition and rewards
directly increase staff commitment.
In this study, leadership had a favorable and significant impact on employee commitment.
The outcome is in line with other studies' findings. In Pakistan's banking industry, Saeed
et al. (2013) investigated the impact of management attitude, organizational culture,
personal issues, job content, and monetary rewards. By employing SPSS software and
multiple regression analysis, the study uses 200 employees as its sample. According to the
survey, companies with friendly managers have a greater impact on the productivity of
55
their workforce. This study found a link between financial incentives and employees'
commitment, concluding that effective leadership has a direct positive impact on employee
commitment. Therefore, the findings of this study show both consistent and contrast with
literature identified from different countries.
56
Chapter V
Summary, Conclusion and Implications
30
The concise summary of the full study is included in this chapter. It also emphasizes the
study's key finding. Also, a separate section of this chapter discusses the main conclusions.
In a different section of this chapter, recommendations for the study are also given. The
chapter concludes with a discussion of the potential for more research in the same area.
1.1 Summary
The method used by the business or organization to assess the level of employee
performance is human resource practices. This instrument serves as the foundation for
determining areas for personal growth, promotions, transfers, and award distribution. On
the other hand, it is a methodical, regular, and, to the best of human ability, impartial
evaluation of an employee's performance in matters relevant to this potential for a job. It is
a procedure for finding, measuring, and controlling employee commitment with the goal
of improving organizational performance and efficiency. It is a merit rating that indicates
the evaluation of the employee's performance within the company.
Any organization uses resources such as people, machines, materials, and money to carry
out its tasks. Other than manpower, all other resources are non-living, yet manpower is a
resource that is both living and generating. Manpower makes use of other resources and
produces. Other resources are useless and unable to produce anything if labor is not
accessible. Of all the production elements, labor has the highest priority, is the most
important factor, and is crucial for both productivity and quality. If additional non-living
aspects aren't taken into consideration, it could lead to a slight decline in profitability.
57
Human resource management elements including human resource planning, hiring and
firing, training and development, performance reviews, reward and recognition programs,
and leadership boost an organization's performance and boost employee loyalty. Private
domestic airlines can strengthen employee engagement to the firm by effectively utilizing
human resource procedures for the aim of evaluating employee performance. Moreover,
there will be a decrease in staff absenteeism, attrition, complaints, unhappiness, and poor
performance. Private domestic airlines operating in Nepal today encounter a number of
issues while assessing staff performance. Therefore, human resource practices should be
implemented to ensure that training and development programs, reward and recognition
packages, recruitment and selection processes, and performance appraisals are more
effective with employees. This will increase employee satisfaction and increase
organizational commitment.
The study's primary goals are to evaluate human resource practices and their impact on
employee loyalty in Nepalese domestic private airlines. The other specific goals are to
examine the effects of training and development on employee commitment in Nepalese
private domestic airlines, to investigate the factors that influence employee commitment in
Nepalese private domestic airlines through recruitment and selection, and to pinpoint the
relationships between performance reviews and employee commitment in these same
organizations.
Employees of domestic private airlines make up the study's responder. In order to

understand how employees felt about human resource practices and how it affected their
dedication to their jobs at Nepalese domestic private airlines, the observations of 100
respondents' points of view were evaluated. The descriptive research design was used to
gather data on various variables. The study's core data analysis, which involved surveying
the staff of 7 private domestic airlines, is its main focus. 100 samples are taken for the
study based on the population.
58
5.2 Conclusion
The study is mainly focused on impact of selected factors on human resource practices
measured in terms of employee commitment in Nepalese private domestic airlines. This
study used different factors like: human resource planning, recruitment and selection,
training and development, performance appraisal, reward and recognition and leadership.
The result acknowledge in this study is based on the respondent’s 100 questionnaire.
The research confirms that recruiting, selection, and training and development have a
favorable impact on employee commitment. Employee commitment rises as a result of
increased training and development as well as fairness in the hiring and selecting process.
Similarly, performance reviews have a favorable effect on employee loyalty. It suggests
that employee commitment would increase as the performance appraisal system became
more successful. Employee commitment is positively impacted by rewards, recognition,
and organizational leadership. Similar to this, all of the dependent and independent
variables have positive correlation coefficients. This demonstrated that the variables have
positive and significant associations because the p value is below the 5% level of
significance.
Correlation analysis's findings indicate that employee commitment is positively correlated

with human resource planning, recruitment and selection, training and development,
performance evaluation, reward and recognition, and leadership. The study also comes to
the conclusion that performance evaluation, reward and recognition, training and
development, and recruiting and selection are the four main human resource strategies that
affect employee commitment.
5.3 Implication
On the basis of the findings of the study, the following recommendations are made for
further improvement on the human resource practices of Nepalese private domestic airlines
in order to increase employee commitment.
59
i. The study observed a positive relationship between performance appraisal and
employee commitment. Hence, the private domestic airlines willing to increase
employee commitment level should focus more on better performance appraisal
system.
ii. Based on the study, the private domestic airlines willing to increase employee
commitment level should focus on recruitment and selection process. Since, the
study observed a positive relationship between recruitment and selection
process and employee commitment.
iii. The study found that training and development and employee commitment are
positively related and hence the airlines willing to increase employee
commitment level should focus more on providing training and development
activities to its employees.
iv. The study found that reward and recognition and employee commitment are
positively related and hence the private domestic airlines willing to increase
employee commitment level should focus more on developing better and fair
system which will be beneficial and acceptable to the employees.
v. The study observed that leadership and employee commitment are positively
related and hence the airlines willing to enhance employee commitment level
should focus more on developing quality leader among its employees.
1.2 Implication for Future Research
This study has tried to cover the issues related to the impact of human resource practices
on employee commitment. Therefore, further studies can be carried out on the basis of the
findings of this study. Some of the future scopes of this study are listed as below:
i. In this study, only 7 private domestic airlines employees were taken as sample
respondents where for further studies other airlines company like helicopter
companies and international airlines can be included to grab wider view of
internal marketing and employee commitment.
ii. This study is based on the survey of private domestic airlines inside the
Kathmandu valley. Therefore, to incorporate wide geographical character of the
60
respondents, further studies can be carried out by extending the survey outside
the Kathmandu valley and other cities of Nepal.
iii. Future studies also can carry this type of study in hotel and travel sector to find
out the pattern of employee commitment.
iv. This study has taken only primary data as sample. Academicians are suggested
to take secondary data as a sample for more convenient result.
61
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Human Resource Management Practices on Employee

Commitment in Private Domestic Airlines

Date: Dember, 2022

Faculty of Humanities and Social Science

Master program in Tourism and Hospitality Studies

Chairperson of Research Committee

Date: December, 2022

Finally, I want to express my genuine appreciation and respect to my parents, classmates,

Date: Dember, 2022

ANOVA - Analysis of Variance

HRM- Human Resource Management

ILO - International Labor Organization

LMX - Leader Member Exchange

SD- Standard Deviation

SPSS- Statistical Packages for Social Sciences

StD - Strongly Disagree

TQM- Total Quality Management

1.2 Statement of the Problem

1.3 Objectives of the study

1.4 Significance of the Study

1.5 Research Hypothesis

1.6 Organization of the study

1.7 Limitation of the Study

2.1 Human Resource Practices

2.2 Review of Related Literature

2.3 Research Gap

2.4 Conceptual Framework

2.5 Operational Definition

3.1 Research Plan and Design

3.2 Description of the Sample

3.4 Data Collection Procedure

3.5 Reliability and Validity

Data presentation and Analysis

4.1. Presentation and Analysis of Data

4.1.1. Respondents’ Profile

4.1.3 Opinion of Respondents About Human Resource Planning on Private Domestic

4.1.4 Opinion of Respondents of Recruitment and Selection in Private Domestic

4.1.5 Opinion of Respondents about Training and Development in Private Domestic

4.1.6 Opinion of Respondents About Performance Appraisal Practices on Employee

Commitment in Private Domestic Airlines 40 39

4.1.7 Opinion of Respondents about Reward and Recognition in Private Domestic

4.1.8 Opinion of Respondents about Leadership in Private Domestic Airlines

4.1.9 Opinion of Respondents about Employee Commitment in Private Domestic

4.3 Inferential Statistical Analysis

4.3.2 Recruitment and Selection and Employee Commitment

4.3.3 Training and Development and Employee Commitment

4.3.4 Performance Appraisal and Employee Commitment

4.3.5 Record and Recognition and Employee Commitment

4.3.6 Leadership and Employee Commitment

4.4 Regression analysis

4.5 Summary of Result of Hypothesis

Table 2 Reliability ............................................................................................................ 29

Table 3 Demographic Characteristics of the Respondents .............................................. 32

Table 4 Opinion of Respondents about Human Resource Planning Practices on Private

Domestic Airlines ............................................................................................................. 33

Table 5 Opinion of Respondents about Recruitment and Selection Practices on Private

Domestic Airlines ............................................................................................................. 35

Table 6 Opinion of Respondents about Training and Development Practices on Private

Domestic Airlines ............................................................................................................. 37

Table 7 Opinion of Respondents about Performance Appraisal Practices on Private

Domestic Airlines ............................................................................................................. 39

Table 8 Opinion of Respondents about Reward and Recognition on Private Domestic

Table 9 Opinion of Respondents about Leadership on Private Domestic Airlines .......... 42