An Empirical Study on HRM Practices for Organizational Performance in Bangladesh Banking Industry

Abstract

Practices in human resources departments of corporations can accelerate organizational performance. We investigate the impact of HRM (human resources management) on organizational performance in the Bangladeshi banking sector using data of 315 employees of commercial banks in Dhaka City. The results show that recruitment and selection, performance appraisal, and compensation management are highly associated with organizational performance. Overall, greater commitment to compensation management, performance appraisal, and recruitment and selection practices will lead to better organizational performance. However, these three factors do not affect organizational citizenship behavior or training and development. Our findings can be helpful for bank managers and authorities who seek effective solutions. To extend our analysis, future researchers can utilize our methods in other sectors like agriculture and telecommunications.