HRM Practices and Bank Performance: A Literature Review

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HUMAN RESOURCE MANAGEMENT

ARTICLE 1
FULL REFERENCE OF THE ARTICLE
Aman, Q., Noreen, T., Khan, I., Ali, R., & Yasin, A. (2018). The Impact of Human Resource Management
Practices on Innovative Ability of Employees Moderated by Organizational Culture. International Journal
of Organizational Leadership, 7, 426-439.
OBJECTIVE AND RESEARCH QUESTION
Objectives
To find the relationship between the innovative ability of the subordinates and HRM practice in
banking sector of Vehari.
To identify the effect of organization culture on the connection between innovative abilities of
subordinates and HRM practice.
Research questions
Is there any relationship between the innovative ability of employees and HRM practice in the
banking sector of Vehari?
Does the organizational culture affect the connection between the innovative abilities of
employees and HRM practice?
METHOD
The method used in this research paper is regression analysis to test the relationship between
the innovative abilities of the employees and HRM practice in the banking sector. This method
is used because the information is collected through primary research method i.e.
questionnaire which is distributed to 276 respondents and 151 respondents fill and return it.
FINDINGS AND DISCUSSION

From this study, it can be said that organizational culture plays a very important role in
developing the relationship between the innovative capabilities of the employees and HRM
practice. If the organization culture is rigid and non-flexible then there is a weak relationship
between these two. This study also helps in identifying the elements which are positively
related to innovation i.e. reward system. The banking sector of Vehari is influenced by reward
system i.e. higher the rewards more chances of innovation in the sector. Reward system based
on the performance and knowledge of the employees will encourage them to think uniquely
and differently and to act more innovatively and uniquely.
In addition to this, recruitment strategies also positively affect the banking sector of Vehari. The
banks execute innovative recruitment strategies to hire employees having innovative
capabilities. This research study reflects the strong relationship between recruitment strategies
and innovative capabilities. If the innovative abilities of the employees are determined at the
time of hiring the employees then it becomes easy for the banks to bring continuous innovation
in the organization. Moreover, there is no relationship between training and innovation as
training is only used to increase the current skills of the employees i.e. in performing the
routine task. Training in the banking sector does not have any connection with innovation. In
addition to training, this research study also includes career management as one of the
important practice of HRM and this is also not related to innovation in this sector.
CONCLUSION
Therefore, this research study can be concluded that factors which contributed to the
innovation ability of the employees are reward strategy and recruitment strategy. However, the
factors which do not contribute to the innovation ability in the banking sector is training and
career management.
CONTRIBUTION OF ARTICLE
This research project will help in identifying the factors necessary for bringing innovation in the
banking sector. The factors may vary according to the location of bank or business activities of

the banks, but in order to bring innovation through human resources, the employee must be
satisfied with the reward system as well as recruitment strategy of banks.

ARTICLE 2
FULL REFERENCE OF THE ARTICLE
Vazifeh, Z., & Nou, M. (2014). A study on the effects of productivity of human resources in banking
network and work ethics. Management Science Letters, 4(6), 1139-1146.
OBJECTIVE AND RESEARCH QUESTION
Objective
The main objective of this research study is to find out the relationship between the
productivity of human resources and work ethics in the banking network of the Zahedan, Iran.
Research question
Does the work ethics of the banking organization increase the productivity of the human
resources in the Zahedan, Iran?
METHOD
The methodologies used to find out and analyze the obtained data are Friedman ranking,
independent t-test as well as Pearson correlation test. Pearson correlation test is used to test
the hypothesis, an independent t-test is used to test whether the observation of two groups are
related to each other or not and Friedman ranking is also used by using SPSS software which is
used to test the results in multiple attempts.
FINDINGS AND DISCUSSION
From this research study, it has been found that work ethics play a major role in improving the
productivity of the employees and the overall productivity of banks. The behaviors and
attitudes of top management and employees are affected by the ethical values of the
organizations. The productivity and performance of employees and organization are affected by
the competitive advantage, false or truth of the task, the judgment of the people affects the
quality and quantity of the overall performance and its success. Therefore, the outcome of this

research study focused on the work ethics of the banks. And it is expected from all the
employees that their jobs and roles do not violate any of the ethics of the organization. And the
management cannot avoid considering the work ethics at the time of making the strategy for
increasing productivity and performance. The decision related to work ethic depends on the
role as well as the importance of the employees in improving the performance. In the banking
sector, it is expected from each employee that they must act respectfully and do not harm any
of the work ethics of the organization.
In order to promote work ethics in the bank, the management can start taking the initiative of
rewarding the employees who perform ethically and giving better results either through
motivational or training programs. The ethical approach of the employees increases the
probability that they also perform other tasks ethically and this may become a part of internal
value.
CONCLUSION
This research study can be concluded by identifying the relationship between work ethics and
productivity of human resources. From the collected data, it can be said that there is a positive
relationship between work ethics of the organization and overall performance and productivity
of human resources.
CONTRIBUTION OF ARTICLE
The research study of effects of human resource productivity and work ethics in the banking
sector is linked with identifying the importance of work ethics and their role in increasing the
individual’s and organization’s productivity, performance and its success. Developing strict rules
and regulations to change the attitude, behaviors, and speech of the individual can increase the
effectiveness and efficiency of the organization in the banking sector.

ARTICLE 3
FULL REFERENCE OF THE ARTICLE
Cabrera-Jovanovska, A., Buzlevski, B., Dejanovski, A., & Korubin, I. (2016). The Effects of the Training of
Human Resources in the Banking Sector in the Country on their Productivity and Effectiveness. TEM
Journal, 5(4), 487.
OBJECTIVE AND RESEARCH QUESTION
Objective
To identify and analyze the conditions of employees in the banking institutions to increase
employee’s performance
To identify the importance of training in increasing employee’s performance as well as
employee development
Research question
What are the necessary conditions required to increase the employee’s performance in the
banking institutions?
What are the importance of training increasing employee's performance and development?
METHOD
The methodology used in this research study is the primary research method where the data is
collected through a questionnaire and is analyzed with the help of frequency analysis i.e. charts.
The quantitative data is presented with the help of charts and it is a very easy method to
represent and analyze the data.
FINDINGS AND DISCUSSION
This research study is conducted in the oldest and largest bank i.e. The National Bank of
Macedonia which provides following information about the employees working in the financial

institutions. The question asked from the managers if how often the banking institutions
arrange training program for the employees and majority of the respondents say that they
conduct training two times a year and with the help of this they successfully increase the
performance of employees. And from the answers, it can be said that training plays a very
important role in increasing the level of performance of the employees.
Several banking institutions invest huge funds in updating the current skills and knowledge of
the employees because of maintaining top position in the industry and to compete with the
competitors. The banks usually hire experts from the external source because top management
does have time to educate them about how they can increase their level of performance. The
methods of training is also asked by the respondents i.e. which is the best method to organize
the efforts of the employees towards achieving organizational goal and from the data collected
it can be said that majority of respondents say that training will be the best method to organize
the efforts in the banking sector and more specifically the best method of the training in the
bank can be conferences and seminars. And only 20% of the respondents say that in order to
train the employees, the banks should send the employees in foreign countries to take part in
conferences.
CONCLUSION
From the results obtained it can be concluded that training is an important part for the
consistent development of employees as well as in achieving the set goals in terms of
adaptability and flexibility in the technology and market. Training of the employees depends on
the rules and regulations of the banking sector, and change in law or financial services.
CONTRIBUTION OF ARTICLE
Training is an important part of the HRM practice and training helps to meet the organization
objective. This research focuses on the importance of training in increasing the performance of
employees and employee development. Training is essential to function to improve the job
performance, learning, and practicing of changed behaviors and skills which is transferred and
maintained over time.

ARTICLE 4
FULL REFERENCE OF THE ARTICLE
Masum, A. K. M., Azad, M. A. K., Hoque, K. E., & Beh, L. S. (2015). Domestic banks in Bangladesh could
ensure efficiency by improving human resource management practices. PloS one, 10(7), e0121017.
OBJECTIVE AND RESEARCH QUESTION
Objective
To identify the influence of HRM practice on the bank based on following efficiency scores such
as scale efficiency, technical efficiency, and pure efficiency.
Research question
How HRM practice influence the performance of banks based on scale efficiency, technical
efficiency, and pure efficiency?
METHOD
The research methodology used in this research project is DEA (Data Envelopment Analysis).
DEA is a non-parametric procedure to evaluate the performance and it transforms several
inputs and results in performance index overlooking the discovered relationship between
DMUs (Decision Making Units). In addition to this, it is not essential to make assumptions in this
model which encourage the researcher to use this method rather than other methods.
FINDINGS AND DISCUSSION
The findings of this research are divided into three categories and data from 44 banks of
Bangladesh is taken to obtain the results. And this research study shows the comparison of
foreign bank and domestic bank and in terms of technical efficiency, foreign banks are ahead in
this category i.e. foreign banks easily convert the HRM practice in bringing efficiency in its
operations. In the second and third category i.e. in terms of scale efficiency and pure efficiency

the domestic banks are ahead in this competition i.e. their performance is much better than
foreign banks.
The financial institution especially banks are dependent on the HRM practices aligned with
organizational strategies for increasing employee’s performance and gaining competitive
advantage. For banking institutions, human resource is considered to be important assets but it
is a very complex task to convert their efforts in the quantitative term. The effectiveness of
HRM practice is examined by collecting the data of Bangladesh during the 2008-2013 year. The
banking sector of Bangladesh is recognized as the most prosperous sector in India and they
need to pay more attention to this sector. This research study includes three methods for
obtaining the results and all these methods shows the results as mentioned above. From this
research, it can be said that HRM practices in the banking sector can increase technical
efficiency, scale efficiency, and pure efficiency.
CONCLUSION
This research study takes the data from 44 banks of Bangladesh to identify the contribution of
HRM practice in brining efficiencies in terms of technical, scale and pure. This research
compares the foreign banks and domestic banks of Bangladesh and results are as follows: in
terms of technical efficiency, foreign banks are ahead from the domestic market, in terms of
scale and pure efficiency; domestic banks are ahead from the foreign markets.
CONTRIBUTION OF ARTICLE
This research study has a direct relation to the performance of domestic banks and HRM
practice. This research includes the example of banks from Bangladesh i.e. developing country.
In the developing country, the current situation is that domestic banks are performing better in
terms of scale and pure efficiency while they have to work on the technical aspects to beat the
foreign banks.

ARTICLE 5
FULL REFERENCE OF THE ARTICLE
Yusuf, B. (2015). Human resources development of sharia banking: a phenomenological approach. Al-
Iqtishad: Jurnal Ilmu Ekonomi Syariah, 7(2), 241-250.
OBJECTIVE AND RESEARCH QUESTION
Objective
To identify and analyze the present situation and condition of HRM policy and practice in the
three sharia Bank in Jakarta
Research question
What are the present situation and condition of HRM policy and practice in the three sharia
bank in Jakarta?
METHOD
The research method used in this research study is the qualitative method and the approach
used is phenomenological. Qualitative method is used to identify the complete perception of
people about the HRM practice used at three sharia bank in Jakarta. This research study helps
in gaining in-depth knowledge about the HRM program in the Islamic banks. The approach of
this research is also categorized into several steps which as intentional analysis, epoch, eidetic
reduction and last is the conclusion.
FINDINGS AND DISCUSSION
From the collected data, the researcher identified three main issues in HRM practice. The first
problem is inadequate regulations of Islamic banks, second is related to the quality of
important assets of banks i.e. human resource and third is the problem of infrastructure. Bank
of BNI Syariah develops a positive environment through developing positive work culture,
brotherhood, and trust in all the employees. While the recruitment process of Bank of Syariah