Analysis of HRM Practices Impact on Employee Performance: UK Banking

This research report investigates the impact of Human Resource Management (HRM) practices on employee performance within the UK banking sector. The study identifies a researchable topic, focusing on the influence of incentives, rewards, and job satisfaction on employee performance. It addresses the problem of declining employee performance in UK banks, linking it to HRM practices. The research aims to analyze the effects of these practices, and includes research objectives and questions to guide the investigation. A literature review explores existing studies on HRM practices and their effect on employee performance, highlighting the significance of job satisfaction and the impact of various HRM strategies. The report emphasizes the importance of HRM practices in shaping employee behavior and organizational efficiency, drawing on references to support its claims.

Impact of HRM practices on employee performances in banking sector of UK
Name of the Student
Name of the University

Table of Contents
1.0 Introduction...........................................................................................................................3
1.1 Identify a specific researchable topic area.............................................................................3
1.2 Problem statement.................................................................................................................3
1.3 Aim of the research................................................................................................................3
2.0 Research objectives and research questions.........................................................................3
3.0 Literature Review.................................................................................................................4
References........................................................................................................................................6

1.0 Introduction
This research will focus on effect of HRM practices including incentives, rewards, and job
satisfaction factors on employee performance in the UK banking industry. Previous studies based
on this topic will be discussed in the study. This will help in gathering information related to
HRM practices in banking industry. This research will throw light ion issues faced by employees
in banking industry regarding their performances in this field.
1.1 Identify a specific researchable topic area
Performance of an organization depends on the performance of their employees. Successful
organizations have been realizing number of factors affecting employee performance including
HRM practices (Hassan 2016). HRM practices have been playing critical role in deciding
performance of employee in banking sector.
1.2 Problem statement
The major issue discussed in this research will be related to drop of employee performance in the
UK banking sector due to several factors. One of the major factor affecting employee
performance is HRM practices including incentives, rewards, and job satisfaction factors. The
UK banking sector has been facing degradation in performances of employees (Cook,
MacKenzie and Forde 2016). The degradation in employee performance has been causing
degradation in the overall performance of banks in the UK. The UK banking sector has faced an
outrage of £670 million in last year. This have been main reason conducting this research.
1.3 Aim of the research
The aim of the research is to critically analyze the effect of HRM practices on employee
performance in the UK banking sector.

2.0 Research objectives and research questions
Following are research objectives:
 To investigate issues faced with employee performance in the UK banking industry
 To critically analyze effect of HRM practices on employee performance in the UK
banking sector
 To recommend strategies to improve employee performance in the UK banking sector
Following are research questions:
 What issues are faced with employee performance in the UK banking industry?
 What is the effect of HRM practices on employee performance in the UK banking sector?
 How to improve employee performance in the UK banking sector?
3.0 Literature Review
HRM practices of a company have significant potential forces in order to determine behavior of
employees. As commented by Darwish, Singh and Wood (2016), HR practices has been a
decisive area for managing the performance of employee in the company. Job satisfaction has
been positively affecting employee performance in the banking industry. As argued by Papa et
al. (2018), there have been huge pressure for employees in the banking industry, being a service
based industry. HR practices helps in revealing string binding with efficiency of the company.
As stated by Darwish, Singh and Wood (2016), several issues with HR practices are low salary,
lack of performance values, lack of consistency in firing people and small number of incentives
provided for employees. Cook, MacKenzie and Forde (2016) found that with better employee
satisfaction, performance of employee can be enhanced in an organization in banking sector. A
better incentive plan and increment in salary might help in increasing performance of employees

in the organization. Employees have been looking for better salary and rewards for their work in
banking industry.

References
Cook, H., MacKenzie, R. and Forde, C., 2016. HRM and performance: the vulnerability of soft
HRM practices during recession and retrenchment. Human Resource Management
Journal, 26(4), pp.557-571.
Darwish, T.K., Singh, S. and Wood, G., 2016. The effect of human resource practices on actual
and perceived organizational performance in a Middle Eastern emerging market. Human
Resource Management, 55(2), pp.261-281.
Hassan, S., 2016. Effect of HRM practices on employee’s performance. International Journal of
Academic Research in Accounting, Finance and Management Sciences, 6(1), pp.15-22.
Papa, A., Dezi, L., Gregori, G.L., Mueller, J. and Miglietta, N., 2018. Improving innovation
performance through knowledge acquisition: the moderating role of employee retention and
human resource management practices. Journal of Knowledge Management.