Title : | Impact of human resource management practices on firm's performance in Nepalese commercial banks | Material Type: | printed text | Authors: | Ashrit Maskey, Author | Publication Date: | 2017 | Pagination: | 106p. | Size: | GRP/Thesis | Accompanying material: | 8/B | Languages : | English | Class number: | 658.303 | Abstract: | Human resource management is the term used to describe formal systems devised for the management of people within an organization. It is the management of work and people towards the desired ends.Aswathappa (2013) argued that an organization should have better human resource plan to motivate its employees towards increased firm performance. If a company adopts effective human resource practices, then it is beneficial not only for the employees but for the employers as well. Human resource management is concerned with the development of both individuals and the organization in which they operate. Human resource management, then, is engaged not only in securing and developing the talents of individual workers, but also in implementing programs that enhance communication and cooperation between those individual workers in order to nurture organizational development.
Organization’s desire to achieve more competitiveness and efficiency as compared to their competitors has made strategic human resource management prominent (Su and Wright, 2012).Additionally, many studies have realized beneficial effect of HRM methods on firm performance. There exists certain confusion, however, as what is the level of connection between HRM methods and company’s performance, either some methods have beneficial connection or not, and either complementarities among HR methods can increase business result or not (Delaney and Huselid, 1996). Schuler (2000) found out that major changes are going on in the global market. The world progressively move away from the situation in which different economies were relatively inaccessible from one another into a mutually dependent global system, according to observation there is a quick improvement of all aspects that are affected by and correlated to human resource management practices.
Terpstra and Rozell (1993) found a significant and positive link between the extensiveness of recruiting, selection test validation, and the use of formal selection procedures and firm profits.Cappelli and Newmark (2001) identified that human resource management practices may raise productivity slightly, but they also raise labor costs.In Nepalese context, Baniya (2004) found that providing development opportunities to the employees have both positive and negative impact on firm performance. The positive consequences of providing development opportunities to employee are improved performance, increased productivity, enhanced loyalty towards organization, and increased motivation among employees and negative consequences are demand for increment in salary, additional incentives and facilities, promotion, and demonstration of over confidence in work, and tendency to leave job.
The study is based on the primary as well as secondary data which were gathered from 126 respondents of 14 commercial banks in Nepal. The respondents’ views were collected on recruitment and selection, training and development, performance appraisal and compensation practices in Nepalese commercial banks. This study has employed descriptive research design and casual comparative research design to deal with issues associated with human resource management practices and performance of Nepalese commercial banks.
The result shows recruitment and selection is positively related to firms’ performance as measured by ROA and ROE. This indicates that better the recruitment and selection practices, higher would be the firms’ performance. Training and development is positively correlated to firms’ performance. This indicates that increase in training and development practices leads to increase in firms’ performance. Similarly, there is positive relationship between performance appraisal and firms’ performance indicating that better performance appraisal practices leads to increase in firms’ performance. Likewise, there is positive relationship between compensation practices and firms’ performance. This indicates that better the compensation practices, higher would be the firms’ performance.
The result of the regression analysis shows that the beta coefficient for recruitment and selection is positive with return on assets and return on equity at 5% level of significance. Similarly, the beta coefficient for training and development is positive with return on assets and return on equity at 5% level of significance. Likewise, the beta coefficient for performance appraisal is positive with return on assets and return on equity at 5% level of significance. Similarly, the beta coefficient for compensation practices is also positive with return on assets and return on equity at 5% level of significance.
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Impact of human resource management practices on firm's performance in Nepalese commercial banks [printed text] / Ashrit Maskey, Author . - 2017 . - 106p. ; GRP/Thesis + 8/B. Languages : English Class number: | 658.303 | Abstract: | Human resource management is the term used to describe formal systems devised for the management of people within an organization. It is the management of work and people towards the desired ends.Aswathappa (2013) argued that an organization should have better human resource plan to motivate its employees towards increased firm performance. If a company adopts effective human resource practices, then it is beneficial not only for the employees but for the employers as well. Human resource management is concerned with the development of both individuals and the organization in which they operate. Human resource management, then, is engaged not only in securing and developing the talents of individual workers, but also in implementing programs that enhance communication and cooperation between those individual workers in order to nurture organizational development.
Organization’s desire to achieve more competitiveness and efficiency as compared to their competitors has made strategic human resource management prominent (Su and Wright, 2012).Additionally, many studies have realized beneficial effect of HRM methods on firm performance. There exists certain confusion, however, as what is the level of connection between HRM methods and company’s performance, either some methods have beneficial connection or not, and either complementarities among HR methods can increase business result or not (Delaney and Huselid, 1996). Schuler (2000) found out that major changes are going on in the global market. The world progressively move away from the situation in which different economies were relatively inaccessible from one another into a mutually dependent global system, according to observation there is a quick improvement of all aspects that are affected by and correlated to human resource management practices.
Terpstra and Rozell (1993) found a significant and positive link between the extensiveness of recruiting, selection test validation, and the use of formal selection procedures and firm profits.Cappelli and Newmark (2001) identified that human resource management practices may raise productivity slightly, but they also raise labor costs.In Nepalese context, Baniya (2004) found that providing development opportunities to the employees have both positive and negative impact on firm performance. The positive consequences of providing development opportunities to employee are improved performance, increased productivity, enhanced loyalty towards organization, and increased motivation among employees and negative consequences are demand for increment in salary, additional incentives and facilities, promotion, and demonstration of over confidence in work, and tendency to leave job.
The study is based on the primary as well as secondary data which were gathered from 126 respondents of 14 commercial banks in Nepal. The respondents’ views were collected on recruitment and selection, training and development, performance appraisal and compensation practices in Nepalese commercial banks. This study has employed descriptive research design and casual comparative research design to deal with issues associated with human resource management practices and performance of Nepalese commercial banks.
The result shows recruitment and selection is positively related to firms’ performance as measured by ROA and ROE. This indicates that better the recruitment and selection practices, higher would be the firms’ performance. Training and development is positively correlated to firms’ performance. This indicates that increase in training and development practices leads to increase in firms’ performance. Similarly, there is positive relationship between performance appraisal and firms’ performance indicating that better performance appraisal practices leads to increase in firms’ performance. Likewise, there is positive relationship between compensation practices and firms’ performance. This indicates that better the compensation practices, higher would be the firms’ performance.
The result of the regression analysis shows that the beta coefficient for recruitment and selection is positive with return on assets and return on equity at 5% level of significance. Similarly, the beta coefficient for training and development is positive with return on assets and return on equity at 5% level of significance. Likewise, the beta coefficient for performance appraisal is positive with return on assets and return on equity at 5% level of significance. Similarly, the beta coefficient for compensation practices is also positive with return on assets and return on equity at 5% level of significance.
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