Analyzing the Importance of HRM to Business Success in ABC Bank

This essay emphasizes the importance of Human Resource Management (HRM) for achieving business success, particularly within the context of ABC Bank. It highlights how HRM practices, including employee engagement, talent management, and effective training programs, are crucial for managing a diverse workforce and ensuring customer satisfaction in the service-oriented banking sector. The role of the HR team in providing administrative programs to enhance employee skills and efficiency is underscored, along with key themes such as well-planned HR strategies, learning and development, recruitment and selection, employee relations, risk management, performance management, and employee retention. The essay argues that HRM is essential for addressing challenges like changing workforce demographics, global competition, skill gaps, and cost-cutting issues, ultimately contributing to the bank's profitability and success.

Running Head: IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
Importance of Human Resource Management to Business Success
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Author’s note

1IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
Human resource management is the planned approach for the effective management of personnel
in an organization so that the employees give their best to the business to gain competitive advantage
(Armstrong & Taylor, 2020). The human resource management aims at fulfilling objectives like
maximum individual development, effective utilization of human resources, maintaining effective
relationship between the employer and the employee and establishing group dynamics. The human
resource has drastically evolved from the traditional method of hiring and firing and focuses more on
employee engagement (Masum, Azad & Beh, 2016).
ABC’s Strategy
The strategy of ABC bank is to provide extraordinary service to the customers and to ensure that
every branch has a people with expertise and talent to be leader in the banking industry. Since, ABC
employs more than 2700 employees from Asia Pacific region and are involved in assisting around 4.75
million customers. Therefore, to manage such a huge diverse workforce, the bank should rely on the
human resource management to improve their employee relations and performance (Madanat &
Khasawneh, 2017). The nature of the banking industry is totally serviced based, so the organization to
deal with people needs a management to deal with people in the organization and to make them equipped
with the necessary training in handling with the financial transactions and the economic risks. Because
skilled and effective talent management in the organization can only handle the financial risks that a bank
has to face regularly.
My role
Since, ABC bank is service sector, apart from the risk that it faces every day, employees handling
the daily affairs should know the need of customer satisfaction as well . Therefore, as a member of HR
team, I will make sure that the workforce at the bank should be provided with proper administrative
programs so that they can gain proper skills and efficiency to perform and meet the expectations and
goals of the organization. The employees working at the front office are the faces of the bank, therefore,
the bank should make sure that the hired employees go through the proper training to make them aware of
the core banking and customer relationship management (Figueiredo et al., 2016).
Key themes for the ABC bank
 A well-planned human resource strategy.
 Learning and development

2IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
 Proper recruitment and selection
 Employee relation
 Risk management
 Performance management and feedback
 Retention of employees (Hauff, Alewell & Hansen, 2017).
Importance of HRM to business
There is a need of human resource management in ABC bank because only the human resource
can handle the quantity and quality necessities of the banking sector as well as deals with the shortage of
manpower supply in the bank efficiently (Bartram, Cavanagh, & Hoye, 2017). There are various
challenges faced by the bank like changing workforce demographic, intense competition in the global
economy due, skill gap between the employees, cost- cutting issues, mergers and acquisitions and more.
Therefore, the major challenge for banking sector is maintaining its human capital and develop the social
substructure that can generate capital for the industry. Therefore, the organization should adopt the
practices of human resource to gain profitability for the organization.

3IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
References
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