Professional Documents
Culture Documents
ISSN: 2349-8498
1)SupriyaBalasahebGaikwad.
Research Scholar, Chh.Shahu Institute Of Business Education And Research, Kolhapur
-4. Mo-9422300254,email-supriyayadav2906@gmail.com
Address- B6,sanjiv apt,dongarewadi,above bajaj service centre,janavli,kankavli-416602.
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Abstract: This article enlightened the banking activity which thrives on the strength of
people power. People are the direct factors of productivity of its services and people are its
sole consumers. The literature study was conducted to explore the extent of human resource
management (HRM) practices usually practiced by five prominent commercial Banks of
India. The literature review were done in order to examine the issues involved in employee
selection and recruitment, Training & Development, salaries and wages, job analysis
methods, performance appraisal, employee participation, indicators to measure their levels of
job satisfactions.
With nationalization, banks ceased to be funding agencies only for industrial sector and
became a vivacious instrument of social change more statistical data are available in support
of the preposition that there is a phenomenal. Being human resources are considered as a
source of sustainable competitive advantage. The success of an organization depends upon
several factors but the most crucial factor that affects the organization performance is its
employee.
Keywords: HRM Practices, Public Sector Banks and Private Sector Banks.
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I. Introduction
The study of human resource management practice has been an important and critical area in
managementand organizational performance from last several years especially in the banking
industry. Influence ofHuman Resource Management practices on organizational performance
has been an important area of research in past 25 years indicating positive relationship
between HR practices and organizational performance. Human resource management (HRM)
practices are being increasingly treated as dependentrather than independent variables in the
olden days, management gurus and researchers were involvedin exploring how HRM
practices affected employee performance, and overall bank performance.
The banking industry, one of the major segments of the financial system plays a crucial role
in the economic and social development of a country. A strong and healthy Banking system is
indispensable in a modern society as a financial intermediary and occupies a unique position
in a nations economy. Indian banking sector has been passing through different phases such
as pre-nationalization, post-nationalization and post liberalization phase.
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V.LITERATURE REVIEW
Several studies (Javed et al, 2012; Syed and Yah, 2012; Igbal, Malik and Ghafoor, 2013; and
Price, 2004) were conducted on the impact of Human Resource Management Practices
(HRMP) on job satisfaction among public sector employees in both developed and
developing countries but few focused on private sector especially in Nigerian banking sector.
Literature has failed to provide enough evidence in the role of Human Resource Management
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Practices in banking sectors. This research work is necessary at this time where many banks
are thinking of merger and acquisition. This study aims to fill the gap in knowledge by
focusing on the role of HRM practices in job satisfaction with special reference to selected
banks in Nigeria.
Oyeniyi, K.O, Afolabi, M.A, Olayanju, Mufutau (2014) studied five HRM practices such as
compensation practice, supervisory role practice, promotion practice, training practice and
performance evaluation practice. Study is of selected
recommended that bank authorities should encourage mentoring to be enhanced and there
should be adequate training in the area of employees specialization through seminars and
conferences in and out- side the country and also compensation and promotion should be
improved as well.
Dr.R.Madhesh,(2014) investigated Human Resource Management Practices in Primary
Agriculture Co-operative Credit Societies (PACCS) in Tamil Nadu: Issues and Challenges
,concluded that Compared with all other management functions, human resource
management in Primary Agricultural Co-operative Credit Societies is more sensitive,
personalized and cannot
be managed through a set of predefined techniques. HR management is no longer just a
support function but a strategic tool for competitive advantage. In fact, it is difficult to
practice customer-centric strategic management without first achieving employee satisfaction.
Thus, employee satisfaction is a prerequisite to customer satisfaction. Effective organization
depends on having the right system of HR policies and practices in place to recruit, select,
develop, appraise, compensate and place, promote or send away employees. Based on a
careful analysis of the needs of the business, Primary Agricultural Co-operative Credit
Societies must prior itize their choices around workforce engagement. Successful HRM
requires practicing a sound management philosophythat respects human dignity and diversity,
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committed to the growth of employees, believe in the value of employees contribution and
involve them in decision making.
CH. Venkataiah, (2014) This research paper explores the relationship between strategic
human resource management practices such as i.e. compensation, promotion, performance
evaluation and perceived employee performance among the teachers working in B-Schools in
Andhra Pradesh. The results of the study indicate perfect positive relationship among the
independent study variables such as compensation practices, promotion practices,
performance evaluation practices and dependent study variable i.e., employee performance.
B-Schools need to focus on revising the compensation practices, promotion policies,
performance evaluation systems and define clear career paths to enhance the performance of
teachers.
Marwan M. Shammot, (2014) in his study identified role of human resource management in
the realization of competitiveness in Industrial Organizations and has focused primarily on
some important issues related to human resource management selection, training, motivating,
attracting, employing, evaluating employees, and the setting of salaries, fees and rewards and
the realization of competitiveness among business organizations. The study results showed
that there is a significance relationship betweenthe factors such as; raining, motivating,
attracting, employing, evaluating employees, and the setting of salaries,fees and rewards of
employees and workers and the realization of competitiveness among industrial
businessorganizations. And this result is consistent with the outcome of previous studies.
Mazni Alias et al, (2013), in their study they have developed the theoretical frame work for
the workplace deviant behavior determinants such as individual-related factors,
organizational - related factors, and work-related factors. It is found that the job satisfaction
as a mediating variable between the three potential groups of determinants and workplace
deviant behavior.
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On the basis of the above review, the researcher has selected this study to examine the
relationship between three Strategic Human Resource Management Practices i.e.
compensation, promotion and performance evaluation and perceived employee performance.
As these three Strategic Human Resource Management Practices have comparatively direct
effect on the salary and status of an employee. Thus, it can be considered as the main factors
determining the employees performance.
Dorothy OppongFrimpong, (2014) investigated the level of satisfaction of staff with human
resource management (HRM) practices at the University of Education, Winneba (UEW),
their level of commitment and their intention to exit and concluded that the high commitment
of staff resulted from staff satisfaction with HRM practices. Again, the low level employee
turnover stems from confidence of staff in the structure of the University. Lack of
communication could be attributed to some lapses in the administrative procedures in the
University. Based on the findings, it is recommended that the University reviews its training
and development programs, explore several channels of downward communication, see to the
implementation of its induction programs, and introduce the use of electronic-HR.
Iqbal et al, (2013) investigated the impact of HR practices on job satisfaction in corporate
sector of Punjab- Pakistan. They discovered that supervisor role has strong positive effect on
job satisfaction while compensation policy and participation in decision making have no
significant effect on job satisfaction. Syed and Yah (2012) also examined the impact of high
performance HRM practices on employee job satisfaction in China. They found that
empowerment, job rotation, employee participation, merit-based promotion and performancebased pay and grievance handling procedures were positively correlated with employees job
satisfaction.
Loo-See Beha and Leap-Han Loo, (2013) This study sought to investigate the relationship
between best human resource practices and firm performance. The study found that
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tightening
all
add
to
the
woes
faced
by
these
concerns
(www.proshareng.com/news, 2013). Studies (Syed and Yah, 2012; Grbz, 2009 and Price,
2004) have shown that efficient usage of Human Resources Management (HRM) practices
are the keys to achieve both short and long term objectives. Price, (2004) supported the
assertion that employees constitute a vital part of organization resource, with the potential to
enhance the organizations sustainable competitive advantage. Lado and Wilson (1994)
defined a human resource system as a set of distinct but interrelated activities, functions, and
processes that are directed at attracting, developing, and maintaining (or disposing of) a
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firms human resources. HRM practices means that it is a set of policies and practices which
boost up the firms human capital to contribute in the achieving of business objectives
(Grbz, 2009). HRM practices involve organizational investments in individual employees
training, decision-making and participation, promotion opportunities, and the use of
performance contingent rewards and open communication, (Meyer & Allen, 1997).
Javed et al, (2012) investigated the impact of HRM practices on employee job satisfaction in
Public sector of Pakistan. They make use of these practices; training and development,
reward and recognition and their findings showed that recognition and training and
development are a key source of employee job satisfaction in Public sector of Pakistan, while
reward did not have any significant impact upon employee job satisfaction. Masoodul et al,
(2013) also investigated the impact of HRM practices on employee satisfaction and employee
loyalty among government owned public sector banks of Pakistan. Three HRM practices
were used such as compensation, empowerment, and appraisal system. Their findings
indicated that employee compensation is most important factor for creating satisfaction
among employees, while employee empowerment found to be significant factor for
developing employee loyalty.
KC Chakraborty, 2012 HR Management in Banks- Need for a new perspective concluded
that
Human Resource Management is important for banks because banking is a service industry.
Management of risks and Management of people are two key challenges facing banks. He has
focused more on the emerging needs of HRM in banking sector in todays world.
However, Adeel et al, (2011) had contrary opinion with Taseem and Soeters (2006) who
affirmed that each of eight HRM practices has significant effect on job satisfaction. They
investigated the impact of HRM practices on job satisfaction of University teachers in
Pakistan Universities. Their result showed that compensation practices, employee
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performance evaluation practices, promotion practices and empowerment practices were not
predict job satisfaction but other factors predict job satisfaction. Human resources
management practices play a very crucial role in achieving the organizations goals and
maintain the competitive advantage. HRM practices refer to organizational activities directed
at managing the pool of human resource and ensuring that the resources are employed
towards the fulfillment of organizational goals (Schuler & Jackson 1987). Human resource
management practices is the management of people within the internal environment of
organizations, comprises the activities, policies, and practices involved in planning,
obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate
numbers and skill mix of employees to achieve the organizations objectives
ZulfqarBowra and KabirNiazi in their research paper Impact of human resource practices on
employee perceived performance in banking sector of Pakistan (2011) found that The HR
practices and employee perceived performance has positive and significant relationship and it
is very crucial for banks to understand that their HR practices affect the performance of
employees and in turn affect the overall performance of a bank be it private sector or public
sector. Many researchers have recognized numerous HR organizing practices that
significantly influence performance.
According to IngunnHybertsenLys, KristianMjen and Morten Levin (2011) in their
article Using collaborative action learning projects to increase the impact of
Management development- International Journal of Training and Development 15:3 2011
Blackwell Publishing Ltd. mentioned that their article aims to contribute to the fieldof human
resource development by exploring the conditions that influence theorganizational impact of
action learning projects. Many organizations use such projectsas an integral part of their
management development programs. Past research on actionlearning projects has shown how
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and
management
development.
These
motives
include-
new
technology;productivity; responding to skills deficiencies; moral duty; new hire request; and
staffrequest. Some of the recommendations based on the findings include- training should
beseen as one of the most important strategies for organizations to help employees gainproper
knowledge and skills needed to meet the environmental challenges; it must also benoted that,
training and development, though primarily concerned with people, is alsoconcerned with
technology, the precise way an organization does business.
According to Benjamin James Inyang (2011) Creating Value through People: Best
Human Resource (HR) Practices in Nigeria - International Business and ManagementVol. 2,
No. 1. 2011, pp. 141-150. This paper explores the strategic role of the humanresources of an
organization. The HR function focuses on building the human capital thatdrives the
organizational activities to success. The in-depth analysis of the relevantliterature shows that
the workforce that is properly and continuously trained anddeveloped through effective
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capacity building leverages the organization to achieve acompetitive advantage and the
bottom line. The human resource management function,essentially concerned with all matters
related to employment relationships in theorganization that is, attracting, developing,
motivating and maintaining a vibrantworkforce must be handled dutifully in strategic
partnership with the HR professional.The paper recommends the HR strategies and practices
that mangers can adopt to driveoptimum value from employees, and these range from proper
selection of the right people
through
employee
empowerment,
capacity
building,
employee
motivation
to
improvedorganizational rewards.
Enhancing Employees Commitment to Organisation through Training - International
Journal of Business and Management Vol. 6, No. 7; July 2011 by Owoyemi,
Magdalena Bernaciak& Anil Duman& Vera Scepanovic (2010) Collective bargaining is
closely related to social policy making to the extent that the outcomes of the former inform
and influence social policy agenda. It is widely held, however, that trade unions in Central
Eastern Europe (CEE) do not have a strong bargaining position and thus exert little impact on
policy decisions. This paper challenges the view of CEE labour as a uniformly weak actor. It
argues that CEE unions ability to shape the bargaining agenda and social policies depends
largely on the degree of privatisation, which overlaps with sectoral divisions. We find that
unions in exposed sectors are unable to oppose greater flexibility even when there are no
considerable wage gains, whereas workers in protected sectors manage to maintain their
status and at times even enhance their welfare, both in terms of higher wages and better
working conditions.
In the study by Jay Liebowitz, (2010) on The Role of HR in Achieving a Sustainability
Culture - Journal of Sustainable Development Vol. 3, No. 4; December 2010
Anorganizations
Human
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Resource
function
can
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be
instrumental
in
facilitating
acomprehensive
approach
environmentalstewardship.
for
As
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creating
such,
it
is
culture
recommended
of
that
sustainability
an
and
organizations
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VII. REFERENCES
Adeel, M. , Imran, K., Hassan, D.A and Bashir, A. (2011). Impact of HR Practices on job
Satisfaction of University Teacher: Evidence from Universities in Pakistan. Industrial
Engineering Letters.1(3), 10-17.
Ahmed.S (2012). Are Nigerian Banks Committing Crimes against Humanity? Daily Time
(available at www.dailytimes.com.ng)
Asta.S and Zivile, S (2011).Human Resource Management Practices Linkage with
Organizational Commitment and Job Satisfaction. Economic and management review. 16,
921-927.
Azman Ismail, Hasan Al Banna Mohamed Ahmad ZaidiSulaimanSuriawatiSabhi, (2010) The
program literature on Supervisors Role as an Antecedent of Training Transfer and
Motivation to Learn in Training Programs.
Benjamin James Inyang (2011) Creating Value through People: Best Human Resource (HR)
Practices in Nigeria - International Business and Management Vol. 2, No. 1. 2011, pp. 141150.
CH. Venkataiah, (2014) Impact of Strategic Human Resource Management Practices on
Employee Performance A Study of Select B-Schools in Andhra Pradesh. Itjrps
international journal of social science.ISSN 2251-1571. RJSSM: Volume: 04, Number: 08,
December 2014.
Chakrabarty KC, RBI Monthly Bulletien Human Resourse Management in Banks-Need for a
New Perspective (2012).
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Kurt Kraiger (2010) -An Empirical Evaluation of Three Popular Training Programs to
Improve Interpersonal Skills - Journal of Psychological Issues in Organizational Culture,
Volume 1, Number 1, 2010.
Lado, A.A., Wilson, M.C., 1994. Human Resource systems and Sustained Competitive
Advantage: a competency-based perspective. Academy of Management Journal 19 (4), 699
727.
Loo-See Beha and Leap-Han Loo, (2013) human resource management best practices and
firm
performance: a universalistic perspective approach. Serbian Journal of Management 8 (2)
(2013) 155 167. DOI:10.5937/sjm8-4573
Mahmood , M. H(2004).The Institutional Context of Human Resource Management: Case
studies of multinational subsidiaries in Bangladesh. Unpublished doctoral thesis, University
of Manchester.
Masoodul . H, Saad.H, Muhammad, F.K and Ashar.I (2013).Impact of HR Practices on
Employee Satisfaction and Employee Loyalty: An Empirical Study of Government Owned
Public Sector Banks of Pakistan. Middle-East Journal of Scientific Research 16 (1): 01-08.
Meyer, J. P., & Allen, N. J. (1997).A three-component conceptualization of organizational
commitment. Human Resource Management Review, 1 (1), 61-89.
Marwan M. Shammot, (2014)
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Oyeniyi, K.O, Afolabi, M.A, Olayanju, Mufutau , (2014) Effect of Human Resource
Management Practices on Job Satisfaction: An Empirical Investigation of Nigeria Banks
International Journal of Academic Research in Business and Social Sciences. August 2014,
Vol. 4, No. 8 ISSN: 2222-6990. www.hrmars.com
Owoyemi, OluwakemiAyodeji, Oyelere, Michael, and Elegbede, Tunde (2011). Enhancing
Employees Commitment to Organisation through Training -International Journal of Business
and Management Vol. 6, No. 7; July 2011
Price, A. (2004) Human Resource Management in a Business, Context. 2nd Edition. London:
Thomson.
R.Madhesh ,(2014) Human Resource Management Practices in Primary Agriculture Cooperative Credit Societies (PACCS) in Tamil Nadu: Issues and Challenges 268 x indian
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Shilpi Singh,( 2014) face of hr practices in todays scenario in indian banks. international
journal of Application or Innovation in Engineering & Management (IJAIEM). Web Site:
www.ijaiem.org Email: editor@ijaiem.org, editorijaiem@gmail.com Volume 2, Issue 1,
January 2013 ISSN 2319 - 4847
Syed, N. and Yah, L.X (2012).Impact of High Performance Human Resource Management
Practices on Employee Job Satisfaction: Empirical Analysis. Interdisciplinary Journal of
Contemporary Research in Business. 4(2), 318-342.
Teseem, M., &Soeters, J. (2006). Challenges and prospects of HRM in developing countries:
testingthe HRM-performance link in Eritrean civil service. International Journal of Human
Resource Management, 17(1), 86-105.
ZulfqarBowra and KabirNiazi (2011). Impact of human resource practices on employee
perceived performance in banking sector of Pakistan, Pakistan.
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