Employee retention is an issue facing most of corporate leaders due to high turnover rate. Many researchers have found that retaining employees is a significant challenge for organization as different employees are motivated by different retention strategies. A good human resource management practices would be one of the retention strategies. Human resource practices are also proposed as one of the most potent factors determining the nature and state of the psychological contract and leader member exchange. The purpose of this study is to form a conceptual model and seeking the literature review of relationship for Human Resource Management Practices, Leader member exchange, Psychological contract Fulfillment, Trade Union and Employee Retention Behaviour for the proposed model. This current study identified a gap exist such that it merits to conduct further studies on the mediating effect of leader member exchange between human resource management practice’s towards psychological contract fulfillment and the moderating effect of trade Union on leader member exchange. The findings of this current research will contribute to leader member exchange theory as well as to social exchange theory.
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