Examining HRM Practices' Influence on UK Banking Employee Performance

This report investigates the correlation between human resource management (HRM) practices and employee performance within the UK banking sector. It analyzes the impact of various HRM strategies, including job satisfaction, incentives, compensation, career planning, training, and employee involvement, on employee outcomes. The research methodology involves a survey of 50 banking employees and interviews with three bank managers to gather data on the effectiveness of these practices. Data analysis utilizes a Likert scale for assessing the relationship between HRM practices and employee performance, supported by charts and graphs. The study aims to identify issues affecting employee performance in UK banks and provide recommendations for HR management to enhance their strategies, fostering a positive relationship between employee performance and HRM practices. The report also explores the effects of poor HRM practices, such as inadequate compensation and lack of training, on employee satisfaction and overall performance.

Impact of HRM practices on employee performances in the banking sector of the UK
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Table of Contents
1.0 Introduction...........................................................................................................................3
1.1 Background............................................................................................................................3
3.0 Justification................................................................................................................................8
4.0 Methodology............................................................................................................................10
References......................................................................................................................................14

1.0 Introduction
This study mainly focuses on examining relationship between employee performances and
human resources practices in the banking sector of the UK. Various HR practices including job
satisfaction, incentives and rewards have been identified and critically analysed about its effect
on employee performances in the banking industry. Previous studies related to the employee
performances and HR practices have been studies which will help in gathering knowledge
related to the effect on employee performance in the banking industry in the UK. There will be
survey done with 50 employees of the banking industry and an interview will be conducted with
three managers of banks in the UK for understanding the impact of HR practices in their
company. Survey will be done with the help of online questionnaire. The relationship between
HR practices and employee performances will be analysed using the Likert scale of the five-
point scale. Charts and graphs will be utilized for representing data and information related to the
study. The results will indicate a proper relationship and effect of different HR practices on the
performance of employee in the banking industry. The study will find several issues faced by
employees which have been degrading their performance in the banks in the UK. This study will
also provide certain recommendations for HR management to enhance their practices and
strategies which ensure positive relationship between employee performance and HR practices.
1.1 Background
As commented by Hassan (2016), there has been a sharp competition among business
organizations in the market. Therefore, organizations need to have a better employee strength
and performance to compete in the market. It has been the duty of human resource department to
implement strategic practices which will improve performance of employees in the companies.

There has been huge pressure over employees in the banking sector. Sustainable competition has
been developed in the market for better performance of banks in the market. However, there
have been several strategies applied by the human resource department for enhancing
performance in banks. In recent years, there have been decline in the UK banking sector and
have been facing losses in the market. Employee dissatisfaction and decline in employee
performances have been main reason behind this result. As commented by Raza et al. (2017), an
employee has been facing huge pressure of work and dissatisfaction in their work-related due to
poor HR practices. HR practices and policies have been significantly essential forces to
determine behaviour and performance of employees. Several researches have been done on
HRM practices and researchers have paid attention on improving strategies made by HR
department. As stated by Rubel et al. (2018), HRM has been playing an important role in
improving performances of employees and companies in the market. However, Darwish, Singh
and Wood (2016) argued that there has been sharp decline in the HRM practices in the UK
banking industry. In recent years, HRM practices in the UK banking industry have been declined
and HR have not been looking or the betterment of employee in the companies. This have been
resulting in declined in their performances in the banks. The sales of banks have been going
down as employees are not performing properly at their workforce. Pavlov et al. (2017)
commented that poor HRM practices including poor job satisfaction, lack of incentives,
compensation, poor salary increment, lack of training have been the main reason behind this
decline.
The research aims to critically analyse the effect of HRM practices on employee performance in
the UK banking sector.
There are certain objectives which will be discussed in this research are mentioned below:

 To investigate issues faced with employee performance in the UK banking industry
 To critically analyse the effect of HRM practices on employee performance in the UK
banking sector
 To recommend strategies to improve employee performance in the UK banking sector
Based on the above objectives, certain research questions will be prepared which are mentioned
below:
 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?
HRM practices
“As commented by Cook, MacKenzie and Forde (2016), HRM practices have been practices and
strategies that are developed by the HR department of the company for motivating, attracting and
retaining employees for the survival of the company in the market. HRM practices have been
designed and executed in a way that human capital plays an essential role in setting the goals and
objectives of the company. Proper use of HRM practices has been positively effecting employer
level and employee commitment in the company. Several HRM practices including training, job
satisfaction, incentives and performance appraisal have been encouraging to boost up their
performances in the workforce (Papa et al. 2018). Therefore, proper implementation of HRM
practice has been helping in better performance of employees in the banking sector.”
Compensation
“As stated by Azeez (2017), compensation has been a procedure of giving monetary value to
employees for their work and performances. Compensations can be utilized for hiring skilled

employees and reward their performance which helps in encouraging them for providing their
best performance. Compensation includes basic ay, Overtime, Bonuses, Allowances, Medical
allowances and profit-sharing. As stated by Hassan (2016), 20 % of employees plan have been
switching their current positions in at least five years. Employee retention turnover has been
essential aspect of organizational life. The implementation of retention compensations have been
prominent in many companies in the banking industry.” This have been helping in managing
their employees in the market. The use if the compensation in the banking industry has been
helping in managing proper relation with employees in the banking sector. There has been a
decline in many compensation policies provided by the HRM in the banking industry. However,
this has been affecting the employee retention policies in the companies. There has been a
decline in the compensation policies based on the performances in the banking industry.
Performance-based compensation has been helping in increasing satisfaction among employees
for developing positive response towards companies. There has been a deep correlation between
performance compensation and employee performances in the banking industry. As commented
by Amin et al. (2018), effective HR strategies have been focusing on improving the
compensation policies in the banking industries for increasing the performance of employees in
the market. Employee performances have been directly depended the monetary structure
provided the companies in the market.
Career planning
As commented by Ogbonnaya and Valizade (2018), career planning is related to the future of the
employees in the company. An employee is concerned about their future in the company. They
have been always looking for better facilities and future in the company they are working.
Therefore, HR has to loo forwards career planning of employees in their company Career

planning is an essential tool for motivating employees towards their work in the company. The
career development process has been useful for identifying the skills of employees in their
companies. The use if career planning has been helping in understanding the needs and
expectation s themselves in the company (Ogbonnaya and Valizade 2018). It has been helping in
providing better opportunities for employees in the company. Employees will feel an important
asset for the companies in the market. Therefore, they will perform properly in their work.
Therefore, this has been an important practice to be implemented by the HR of the company.
Training
As stated by Gu and Nolan (2017), training has been a systematic approach which has been
enabling employees for gaining knowledge and useful skills for better performances at work.
This has been being in gaining better approach in behavioural aspects in their performance. The
use of training session in understanding weak it of the employees and work hard towards
betterment of the employees in the companies. There have been various training sessions
conducted by the HR department of the Banking Industry which help in better access to
employees in the market. HR policies must include a training session at least in every month
which helps to gain knowledge regarding the betterment of the employees. Employees feel
comfortable and satisfied in gaining training and knowledge for the development of their skills in
the market. These skills might help in developing better performance in the market (Guest 2017).
The use of training session has been helping in imagining a keen approaching the development
of the skills and knowledge of employees in the banking industry. Extensive training programs
have been helping in maintaining a developmental approach in the company. This has been
helping in enhancing employee performance and helpful in achieving organizational goals within
a timeline.

Employee involvement
As commented by Santhanam et al. (2017) employee involvement has been creating an
environment for other employees to empower them towards the development of the company in
the market. Employees have been helping in meeting the goals of an organization in the market.
Employee contribution has been helping in providing a better approach to the betterment of the
banking industry. Employee involvement includes job satisfaction, motivation and employees
commitment towards the goals of an organization in the market. As argued by Ogbonnaya,
Daniels and Nielsen (2017), it has been a difficult task for gaining employee involvement in the
banking industry. HR plays an important role in gaining employee engagement in the company.
HR policies and practices need to be specific to the betterment of employee life and career.
Therefore, job satisfaction has been an important part of employee engagement and imbuement.
Job satisfaction can be achieved by proper HRM policies and that include better salary and
increments in their wages.
3.0 Justification
This examination for the most part targets analysing the connection between worker exhibitions
and HR rehearses in the financial division of the UK. Different HR works on including job
fulfillment, motivators and prizes have been recognized and fundamentally dissected about its
impact on worker exhibitions in the financial business (Lai, Saridakis and Johnstone 2017). Past
examinations identified with the representative exhibitions and HR rehearses have been
considers which will help in social event information identified with the impact on worker
execution in the financial business in the UK. There will be review finished with 50
representatives of the financial business and a meeting will be directed with three supervisors of
banks in the UK for understanding the effect of HR rehearses in their organization. Overview

will be finished with the assistance of online poll. The connection between the outcomes will
demonstrate a legitimate relationship and impact of various HR rehearses on the exhibition of
worker in the financial business. The examination will discover a few issues looked by workers
which have been debasing their exhibition in the banks in the UK. This investigation will
likewise give certain proposals to HR the executives to upgrade their practices and systems
which guarantee positive connection between representative execution and HR rehearses. As
remarked by Glaister et al. (2018), there has been a sharp rivalry among business associations in
the market. In this manner, associations need to have a superior representative quality and
execution to contend in the market. It has been the obligation of human asset division to execute
vital practices which will improve execution of representatives in the organizations. There has
been tremendous weight over representatives in the financial division. Feasible rivalry has been
created in the market for better execution of banks in the market. Be that as it may, there have
been a few methodologies applied by the human asset division for improving execution in banks.
Lately, there have been decrease in the UK banking area and have been confronting misfortunes
in the market. Representative disappointment and decrease in worker exhibitions have been
principle purpose for this outcome. As remarked by Bryson, Forth and Stokes (2017), the worker
has been confronting gigantic weight of work and disappointment in their business-related
because of poor HR rehearses. HR practices and approaches have been fundamentally basic
powers so as to decide conduct and execution of representatives. A few explore have been done
on HRM practices and researchers have focused on improving techniques made by the HR
division. As expressed by Saridakis, Lai and Cooper (2017), HRM has been assuming a
significant job in improving the exhibitions of representatives and organizations in the market. In
any case, Bryson, Forth and Stokes (2017) contended that there has been a sharp decrease in the

HRM rehearses in the UK banking industry. Lately, HRM rehearses in the UK banking industry
have been declined and HR has not been looking for the advancement of representative in the
organizations. This have been coming about in declined in their exhibitions in the banks. The
deals of banks have been going down as representatives are not performing appropriately at their
workforce. Bauer (2014) remarked that poor HRM works on including poor employment
fulfilment, absence of motivating forces, pay, poor pay increase, absence of preparing have been
principle purpose for this decay.
4.0 Methodology
As remarked by Alvesson and Sköldberg (2017), Research strategy has been cantering
techniques to be followed in the examination for fulfilling connection among autonomous and
subordinate variable. Quantitative and Qualitative strategies are two sorts of research techniques.
Quantitative techniques manages factual and numerical methodology of information assortment.
This technique incorporate information assortment from essential strategy for information
assortment. Quantitative technique centres around then assortment of crude and factual
information identified with the exploration theme. This assistance in giving measurable
investigation if the information gathered from crude information sources. A few apparatuses are
utilized for breaking down such information technique. Subjective spotlights on auxiliary
technique for information assortment. Online diaries, books and articles are required for
gathering information for this technique. The meeting can likewise be led right now. As
recommended by Bauer (2014), Qualitative strategies are the abstract type of information and
data which will help in understanding effect HRM rehearses in the worker exhibitions in the
banking part. Subjective strategy identifies with the emotional and non-numerical type of
information identified with the examination point. This will help in comprehension inside and

out data identified with the examination. Past examinations dependent on this point will be broke
down to accumulate information identified with this.
As remarked by Brinkmann (2014), examine configuration helps in managing research system
for comprehension and assessing chosen look into a theme. This kind of procedure helps in
giving a suitable way of gathering information and investigate it appropriately. There are three
classes of research plan which are exploratory, logical and spellbinding structure. The
exploratory plan helps in recognizing a few sorts of musings and thoughts required for finishing
the study. It helps in investigating concealed realities in the exploration subject. As referenced by
Choy (2014), Explanatory structure has been outlining event of an individual in the exploration
occasions that may help in affecting examination results. As referenced by Dang and Pheng
(2015), Descriptive research configuration has been targeting getting insights concerning
information for distinguishing event of research occasions. There have been different endeavour
choices that have been required for doing research study. Right now, inquire about plan will be
chosen for recognizing impact of HRM rehearses on worker exhibitions in banking industry. The
picked technique has been helping in finishing concentrate on schedule.
As remarked by Dörnyei (2015), information assortment strategy manages distinguishing various
methodologies for social affair information identified with the examination subject. The
information assortment process helps in gathering valuable information which are applicable to
the examination. Information assortment systems are of two sorts including primary and
secondary technique for information assortment. Primary strategy for information assortment
incorporate assortment of crude information which is measurable in nature. As referenced by
Dumay and Cai(2015), Primary information can be gathered from leading study with
representatives of banking industry in the UK. The essential information sources are required for

executing research as it is required for undertaking dependability and legitimacy of the
exploration. Review survey will be set up with 10 close finished inquiries dependent on the
HRM rehearses. Interviews will be likewise be directed with 3 administrators of various banks.
There will be three open finished inquiries posed to them identified with effect of HRM
rehearses on their worker exhibitions in their banks. These method will help in get-together
information about impact of HRM rehearses on representative execution in banking division.
As proposed by Humphries (2017), inspecting strategy is a procedure which help in examining
an enormous populace in to little example for improving outcomes from it. Right now, will be
200 members. Irregular inspecting strategy will be used for testing these populace. 50 example
will be chosen for leading the review.
As expressed by Jennings et al. (2018), Data Analysis is a technique for examining information
gathered from information assortment strategy. Quantitative and subjective information
examination techniques are two sorts of information investigation. Quantitative information
examination technique relies upon essential information assortment. This sort of examination
give measurable investigation of information and data identified with inquire about. As
referenced by Ledford and Gast (2018), Qualitative information investigation strategy manages
the topical examination of gathered information from online diaries, articles and papers. Right
now, quantitative and subjective information investigation procedure will be chosen. Likert scale
will be used for examining essential information. Outlines, charts and tables will be utilized for
speaking to information and results of the examination. Factual information examination will
help in getting measurable outcomes which can be numerically estimated and comprehended
capable for the exploration.

As remarked by Lewis (2015), Ethical contemplations are a significant piece of directing the
examination. Information security and protection will be the essential moral contemplations right
now. This examination will make sure about information and data under the Data Protection Act
1998. This examination will guarantee that every single private datum of members will be
guarded secure and. It won't be utilized in the examination segment without their authorization.
There will be no altering of information and data during information examination area. Moral
endorsement will be taken from banks for leading study and meeting with their representatives
and chiefs separately.

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