The Impact of Human Resource Management Practices on Relational Contract Fulfilment in an Insurance Industry in Batticaloa District

Abstract

Human Resource Management Practices represent a major mechanism for implementing a firm’s strategic plan. Human Resource Management Practices help to achieve the organizational objective in an effective and efficiency way. In order for organizations to achieve desired performance objectives and goals, fulfilment of employees’ Relational Contracts is important. So, human resource management practices create a distinct type of relationship between employee and employer which can be characterised as relational contracts, that is, the belief people hold regarding the terms of their employment relationship. In Sri Lankan context, a few empirical studies have been conducted with the relationship between Human Resource Management Practices and Relational Contract Fulfillment of employees. So there is an empirical knowledge gap exists in the Human Resource Management Practices and Relational Contract Fulfillment of employees. The purpose of this research was to examine the level and impact of Human Resource Management Practices on Relational Contract Fulfillment in an Insurance industry in Batticaloa district. 181 employees were selected by using simple random sampling technique from selected Insurance industry in Batticaloa district and questionnaires were issued and collected for further analyses and also Statistical Package for Social Science (SPSS 19.0) was used to present, analyze and evaluate data. Mainly, Descriptive analysis, correlation and Regression analysis methods were assisted to it. The result shows that the level of Human Resource Management Practices and Relational Contract is in high level Insurance industry in Batticaloa district. Overall finding from this study shows that, 11% of total variance of Relational Contract Fulfillment was explained by Human Resources Management Practices in an Insurance industry in Batticaloa distric .Therefore, there are some policies would be developed to enhance the Human Resource Management Practices and Relational Contract Insurance industry in Batticaloa district.