International Journal of Engineering Technology, Management and Applied Sciences. April 2016, Volume 4, Issue 4, ISSN

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1 Human Resource Management Practices and their Impact on the Job Performance of Employees with Special Reference to Banking Sector Dr Poonam Madan Associate Professor, Department of Management Studies, The IIS University, Jaipur. Address: H.No. 155, Gurunanakpura, Jaipur Jasleen Kaur Bajwa, Research Scholar, Department of Management, The IIS University, Jaipur. Address: 30 k-5 Scheme, Green Park Near Jharkhand mode, khatipura Road, Vaishali Nagar, Jaipur ABSTRACT Human resources are the main component of any organization or it can be said that they are the backbone of the organization without which accomplishment of objectives is rarely possible. Human resource management as the word itself describes is the management or handling of human resources in the organization which involves the personal satisfaction and goal achievement. HRM practices include compensation, performance appraisal, training and development and career management plays vital role in development, motivation, retention of employees in the organization. The main aim of the study is to know the impact of HRM practices on job performance of employees. The study revealed that there is a direct impact of HR practice on the performance level of employees. Implementation of proper HR policies needs to be done. Keywords: Performance appraisal, Compensation, Training & development and Career management. INTRODUCTION Human resource practices involve many aspects, but the important points which are to be focused now days are compensation, performance appraisal, Training and development and career management. National Institute of Personal management of India described Human Resource Management is that part of management concerned with people at work and with their relationships within the organization Human resource management is the planning, organizing, directing and controlling of human resources in the organization in an effective and efficient manner. Success of an organization depends upon its Human Resources (Shukla&Sinha 2013). CAREER MANAGEMENT COMPENSATION HR PRACTICES TRAINING & DEVELOPMENT PERFORMANCE APPRAISAL Fig.1 HR PRACTICES 30

2 1. TRAINING AND DEVELOPMENT Training is increasing the skill and knowledge of employees in specific field whereas development is the overall enhancement of an employee in every field.tahir &Sajjad (2013) in their research has explained that successful organizations and managers realize the importance of human resources; trained human resources are key to maintaining a competitive advantage in today s constantly changing global environment. 2. COMPENSATION Compensation is the rewards given to employees whether financial or nonfinancial. Aktar et al (2012) has defined rewards as one of the important elements to motivate employees for contributing their best effort to generate innovation ideas that lead to better business functionality and further improvise company performance both financial and non-financially. 3. PERFORMANCE APPRAISAL According Edwin B.Flippo Performance appraisal is the systematic, periodic and an impartial rating of an employee s excellence in matters pertaining to his present job and his potential for a better job Performance appraisal is the assessment of an employee s performance periodically as per the need and requirement of the organization. Performance appraisal is done to evaluate the performance of employees to provide better compensation and promotion to employees. 4. CAREER MANAGEMENT Career management involves providing opportunities for further studies and scope for further advancement. It is a structured process containing achievement of future professional and personal goals. JOB PERFORMANCE Jayarathna et al (2014) has defined that an employee's performance is determined during job performance reviews, with an employer taking into account factors such as leadership skills, time management, organizational skills and productivity to analyze each employee on an individual basis. According to the Commerce Dictionary.com, job performance is the degree to which a job is done well or badly. OBJECTIVES To study the HRM practices prevailing in banking sector. To investigate the impact of HRM practices on employee job performance. METHODOLOGY The present study is descriptive in nature and only secondary sources of data collection have been used for collecting the data. The data has been generated from research papers, review papers and books. REVIEW OF LITERATURE The study conducted by Al Qudah et al (2014) on The Effect of Human Resources Management Practices on Employee Performance has showed the effect of human resources on the performance level of employees. The main factors which have impact are recruitment and selection and compensation on employee performance. The authors have also described that the success and failure of any organization depends on its employees. The results revealed that there is positive relation between both compensation and employee performance and recruitment and selection and employee performance. Shaukat et al (2015) in their study on Impact of Human Resource Management Practices on Employees Performance has described that employees are important part of any organization contributing towards the achievement of goals. The aim of the study is to examine the impact of compensation, recruitment and selection, career planning, performance appraisal and selection on employee performance. The authors concluded in their research paper that it is necessary to review, revamp and rejuvenate the human resources in the organization. The study conducted by Shrivastva& Gupta on HR Practices: A Comparative Study of Publicand Private Sector Banks in Indore focused on the HR practices and their impact on the employees of banking sector. The objective of the research paper is to identify and compare the impact of HR practices on both public 31

3 sector and private sector banks. The results revealed that there is difference in HR practices being followed in different banking sectors which affect the working environment. Kumar &Basavaraj (2014) in their study on Human Resource Practices and their Impact on Employee Productivity: A Perceptual Analysis of Private, Public and Foreign Bank Employees in Karnataka analyzedthe human resource practices that have impact on employee productivity. The aim of the study is to examine the HR practices of Public, Private and Foreign banks. The authors concluded in their studies that four main HR practices that varied in all the three banks are compensation, incentives, quality of work life and grievance redressel.the results also revealed that HR practices followed by banks are well to retain employees and thus have impact on employee productivity. The study conducted by Jha&Anand (2014) on Human Resource Management: Paradigm Shift in the Public Sector Banks in India described about the HR practices adopted by banks. The authors in their study have defined that among all the assets human resources are the important asses of the organization. The authors concluded that banking industry is the emerging industry helps in development of an economy thus better HR practices and their implementation is must to achieve desired goals. Singh (2013) in her study on Face of HR Practices on Todays Scenario in Indian Banks explained about the HRD climate and HRD techniques adopted by both Public and Private Banks. The purpose of the research paper is to study the outcomes of human resources development for banks, individual employees and groups. The author concluded in her study that human resource management has become a challenging task and their development is needed for the achievement of both personal and organizational objectives. The study conducted by Jamil& Raja(2011) on Impact of Compensation, Performance Evaluation and Promotion Practices on Government Employees Performance VS Private Employees Performance identified the impact of HR practices on employee performance of both Public and Private banks. The study is focused on mainly three HR practices i.e. compensation, performance evaluation and promotion. The study revealed that banks doesn t follow any criteria for promotion schemes and compensation is directly linked with employee performance and proper evaluation programs should be followed by banks to satisfy employees. Mahmood et al (2014) in their study on The Impact of Human Resource Management Practices on Employee Performance in Banking Industry of Pakistan showed the impact of HR practices on employee performance. The research paper is focused on impact of reward, training & development and recruitment and selection on performance of employees in Pakistan banking sector. The study revealed that better HR practices can lead to accomplishment of goals and objectives and satisfy human resources. The authors also discussed that more studies related to HR need to be done in contrast to banking sector. The study conducted by Jha& Mishra (2015) on A Study of HRM and EmployeesPerformance in Banking Sector in India explored the area of HR in changing economic and business environment. The objective of the study is to examine the challenges faced by Indian banking industry. The authors concluded that better HR policies and enhancement in banking sector like product diversification, internal control, external regulation and treasury management needs to be implemented by public sector banks. Gaikwad&Deshmukh (2015) in their study on HRM Practices in Selected Public and Private Sector Banks described the issues that are involved related to HR. The authors in their study discussed about HR practices and their relation with both Public and Private sector banks. The study revealed that human resources are important part of any organization and needs to be managed effectively. LIMITATIONS OF THE STUDY 1. The study has been done on banking sector only. 2. The secondary data collected might not represent the actual situation. FINDINGS Human resource management as the word itself describes is the management or handling of human resources in the organization which involves the personal satisfaction and goal achievement. No organization can 32

4 survive without the human resources they are very important asset of the organisation.employees working in banking industry needs to be committed to their work and organization as well. For achievement of goals it s the duty of the employer to examine better HR practices. After reviewing the research papers it has been identified that implementation of proper and better HR practices is must. The results have revealed that HR practices have direct impact on performance level of employees. Different studies done on both Public and Private sector banks have described some loop holes which needs to be addressed for development of the organization. Public sector banks are making initiatives to improve their HR practices. One such example is Bank of Baroda which is conducting grooming and etiquette programs for the employees to improve qualitative interaction with customers. Punjab &National bank has also started three tier training programs for the employees. It has been viewed that banks doesn t follow any criteria for promotion schemes and compensation it is directly linked with the performance of the employees. SUGGESTIONS Employees play a vital role in accomplishment of goals for any organization. It is very important that employees feel secured, satisfied and recognized with the organization they are attached. Training and development programs so as to build confidence and enhance their capability. Proper recruitment and selection process should be followed so as to choose the employees who are committed to work. Better compensation packages so that employees get motivated and satisfied. Better opportunities for career management. SCOPE OF THE STUDY Managing the employees is an important and very crucial task to make them satisfied. This study gives an overview of HR practices and their impact on employee performance in banking sector. More studies related to comparison between Public and Private Sector banks can be done. Studies related to impact of compensation, training & development and performance appraisal can also be done. CONCLUSIONS Human resources are the main component of any organization or it can be said that they are the backbone of the organization without which accomplishment of objectives is rarely possible. Better training programs, proper compensation schemes, evaluation of employee performance are the important element of HR practices which are to be focused by the organization to satisfy its employees and customers.hr practices like compensation management, performance appraisal and promotion influence the performance level of employees. The results have revealed that as banking is an emerging sector necessary changes are required to be made. Better HR policies will enhance the employee to perform better. REFERENCES 1. Shukla, S., &Sinha, A. (2013). Employee Turnover in banking sector: Empirical evidence. Journal of Humanities and Social Science (IOSR-JHSS),Volume 11(Issue 5), Retrieved August 11, 2015, from 2. Jayarathna, S., &Weerakkody, W. (2014). Impact of Administrative Practices on Job Performance With Reference to Public Banks in Sri Lanka. International Journal of Scientific & Technology Research,Volume 3(Issue 4), Retrieved October 19, 2015, from Job-Performance-With-Reference-To-Public-Banks-In-Sri-Lanka.pdf 3. Tahir, A., & Sajjad, S. (2013). Assessing the Impact of Training on Employees Performance in Commercial Banks in Urban Lahore. The Lahore Journal of Business,Volume 2(Issue 1), Retrieved October 20, 2015, from 33

5 the Impact of Training on Employees Performance in Commercial Banks in Urban Lahore.pdf?sequence=1&isAllowed=y 4. Aktar, S., Sachu, M., & Ali, M. (2012). The Impact of Rewards on Employee Performance in Commercial Banks of Bangladesh: An Empirical Study. IOSR Journal of Business and Management,Volume 6(Issue 2), Retrieved October 24, 2015, from 5. Gupta, C. (2000). Human resource management (5th rev. and enl. ed.). New Delhi: Sultan Chand & Sons. 6. A. Al_Qudah, H., Osman, A., & M. Al_Qudah, H. (2014). The Effect Of Human Resources Management Practices On Employee Performance. International Journal of Scientific & Technology Research,Volume 3(Issue 9), Retrieved September 19, 2015, from Management-Practices-On-Employee-Performance.pdf 7. Shaukat, H., Ashraf, N., &Ghafoor, S. (2015). Impact of Human Resource Management Practices on Employees Performance. Middle-East Journal of Scientific Research,Volume 23(Issue 2), doi: /idosi.mejsr Shrivastava, G., & Gupta, P. (n.d.). HR Practices: A Comparative Study of Public and Private Sector Banks in Indore. AltiusShodh Journal of Management & Commerce. Retrieved September 19, 2015, from 9. Kumar, S., &Basavaraj, K. (2014). Human Resource Practices and their Impact on Employee Productivity: A Perceptual Analysis of Private, Public and Foreign Bank Employees in Karnataka. Shiv Shakti International Journal in Multidisciplinary and Academic Research,Volume 3(Issue 3), Retrieved September 19, 2015, from Jha, S., &Anand, V. (2014). Human Resource Management: Paradigm Shift in the Public Sector Banks in India. IOSR Journal of Business and Management (IOSR-JBM),Volume 16(Issue 4), 1-6. Retrieved September 19, 2015, from Singh, S. (2013). Face of HR Practices on Todays Scenario in Indian Banks. International Journal of Application or Innovation in Engineering & Management,Volume 2(Issue 1), Retrieved September 19, 2015, from Jamil, B., & Raja, N. (2011). Impact of Compensation, Performance Evaluation and Promotion Practices on Government Employees Performance VS Private Employees Performance. Interdisciplinary Journal of Contemporary Research in Business,Volume 3(Issue 8), Retrieved September 19, 2015, from Mahmood, F., Iqbal, N., &Sahu, S. (2014). The Impact of Human Resource Management Practices on Employee Performance in Banking Industry of Pakistan. Euro-Asian Journal of Economics and Finance,Volume 2(Issue 1), Retrieved September 19, 2015, from Jha, R., & Mishra, M. (2015). A Study of HRM and Employees Performance in Banking Sector in India. IJARIIE,Volume 1(Issue 3), doi: /ijariie Gaikwad, S., &Deshmukh, U. (2015). HRM Practices in Selected Public and Private Sector Banks. Glacier Journal of Scientific Research, Retrieved September 19, 2015, from PRIVATE-SECTOR-BANK.doc 34