Muhammed Mughni Atique
B.sc (Hons), Business Administration
Gift University Gujranwala
IMPACT OF HUMAN RESOURCE PRACTICES ONORGANIZATIONAL PERFORMANCE:
A STUDY OF BANKING SECTOR OF GUJRANWALA
Keywords: Organizational Performance, Employee Satisfaction, Recruitment &Selection, Training & Development, Performance Appraisal and Compensation
The purpose of this study is to evaluate HRM practices and their impact on organizational performance in banking sector. People believe that HR is not important it’s just a sunk cost and have no significant positive effect on org. performance. The aim of this study was to check the impact between Human resource management and ...view middle of the document...
The central bank’s regulatory powers were restored via amendments to the Banking Companies Ordinance (1962) and the State Bank of Pakistan Act (1956)..Subsequently, corporate governance, internal controls and bank supervision was strengthened substantially. Legal impediments and delays in recovery of bad loans were streamlined in 2001.
World over in depth studies have been under taken in recent years to find out direct impact of Human Resource Management practices on Organizational performance. Researchers have shown that there is positive impact of HRM practices on organizational performance. The HR department has become important part in multinational industry. In developing countries like Pakistan is no concept of HR practices. Likewise in Gujranwala all functions of HRM are practice by owner himself, perhaps HRM practice is consider as sunk cost. Due to globalization, Industry trends have also changed in Pakistan. (http://tribune.com.pk/story/286458/history-of-banking-in-pakistan--of-humble-origins-and-vast-potential/). In Large organizations especially in services sector HR practices play a vital role effecting organizational performance. In local perspective research is required to confirm relationship between organizational performance and HR practices.
The purpose of this study is to investigate recent trends in employee management in banking sector and to confirm positive relationship between HR practices and organizational performance. The aim of this is to identify the factors and their importance that lead towards the job satisfaction in banking sector. This study wills managers in improving organizational performance.
Is there a significant effect between high values HRM practices like Recruitment and Selection, Training and development, performance appraisal, compensation and Organizational Performance?
Is Organizational performance being affected due to lack of HRM practices in banking sector of Pakistan?
Organizational performance: Oxford dictionary defines ‘organization’ as “an organized group of people with a particular purpose”. ‘Performance’ is defined to include “the action or process of performing a task or function … seen in terms of how successfully it is performed”. When these definitions are put together, we can say organization performance relates to how successfully an organized group of people with a particular purpose perform a function.
Independent Variable: Recruitment is the process of finding and engaging the people the organization needs. Selection is an aspect of recruitment concerned with deciding which applicants or candidates should be appointed to jobs. (Armstrong’s Essential human Resource management Practice, Michael Armstrong)
Training and development is a function of human resource management concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational...