IDEAS home Printed from https://ideas.repec.org/a/sae/manlab/v49y2024i1p97-118.html
   My bibliography  Save this article

Impact of Human Resource Management Practices on Organizational Performance: Evidence From the Indian Banking Industry

Author

Listed:
  • Mohammad Salman
  • Imran Anwar
  • Showkat Ahmad Ganie
  • Imran Saleem

Abstract

This study is an endeavour to assess the impact of different human resource management practices on the organizational performance of banks in India. Using a convenience sampling technique, a sample of 325 employees from four banks responded to a survey questionnaire. The psychometric properties of the constructs were established through confirmatory factor analysis, while structural equation modelling was utilized to examine the proposed hypotheses. The findings of the study confirmed a positive and significant influence of training and development, performance appraisal, and employee involvement on the performance of the banks under investigation. However, recruitment and selection indicated a positive but insignificant impact. The outcome of this research can assist policy and decision-makers in enhancing organizational performance by investing in appropriate human resource management practices. The study is equally significant for human resource professionals and practitioners to foster the professional development and advancement of their personnel.

Suggested Citation

  • Mohammad Salman & Imran Anwar & Showkat Ahmad Ganie & Imran Saleem, 2024. "Impact of Human Resource Management Practices on Organizational Performance: Evidence From the Indian Banking Industry," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(1), pages 97-118, February.
  • Handle: RePEc:sae:manlab:v:49:y:2024:i:1:p:97-118
    DOI: 10.1177/0258042X231187224
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0258042X231187224
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0258042X231187224?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mohd Tariq Jamal & Wafa Rashid Alalyani & Prabha Thoudam & Imran Anwar & Ermal Bino, 2021. "Telecommuting during COVID 19: A Moderated-Mediation Approach Linking Job Resources to Job Satisfaction," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    2. Beatrice Akong'o Dimba, 2010. "Strategic human resource management practices: effect on performance," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 1(2), pages 128-137, February.
    3. Subash Chandra Pattnaik & Rashmita Sahoo, 2020. "Human Resource Practices as Predictors of Organizational Performance: A Structural Equation Modeling Approach," Global Business Review, International Management Institute, vol. 21(4), pages 1087-1112, August.
    4. Lau, Chung-Ming & Ngo, Hang-Yue, 2004. "The HR system, organizational culture, and product innovation," International Business Review, Elsevier, vol. 13(6), pages 685-703, December.
    5. Sherine Farouk & Hossam M. Abu Elanain & Shatha M. Obeidat & Moza Al-Nahyan, 2016. "HRM practices and organizational performance in the UAE banking sector," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(6), pages 773-791, July.
    6. Hardeep Chahal & Jeevan Jyoti & Asha Rani, 2016. "The Effect of Perceived High-performance Human Resource Practices on Business Performance: Role of Organizational Learning," Global Business Review, International Management Institute, vol. 17(3_suppl), pages 107-132, June.
    7. Abdussalaam Iyanda Ismail & Alaeldin Awawdeh & Ahmad Al-Hiyari & Kareem Isiaka Jimba, 2021. "Moderating Effects of Management Philosophy on High-Performance Work Practices–Firm Performance Relationship," Journal of African Business, Taylor & Francis Journals, vol. 22(3), pages 379-393, July.
    8. Mohammed Samroodh & Imran Anwar & Alam Ahmad & Samreen Akhtar & Ermal Bino & Mohammed Ashraf Ali, 2022. "The Indirect Effect of Job Resources on Employees’ Intention to Stay: A Serial Mediation Model with Psychological Capital and Work–Life Balance as the Mediators," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    9. Punam Singh & Shulagna Sarkar, 2022. "Human Resource Metrics for Enhancing Organizational Performance: Case of Indian State-owned Enterprises," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 47(2), pages 233-250, May.
    10. Mohammadnoor Khaled M. AL-Qudah & Abdullah Osman & Mohd Suberi Ab Halim & Hamza Ali Al-Shatanawi, 2014. "The Effect of Human Resources Planning and Training and Development on Organizational Performance in the Government Sector in Jordan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(4), pages 79-85, April.
    11. Mohammad Salman & Showkat Ahmad Ganie & Imran Saleem, 2020. "Employee Competencies as Predictors of Organizational Performance: A Study of Public and Private Sector Banks," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(4), pages 416-432, November.
    12. Kundu, Subhash C. & Gahlawat, Neha, 2018. "Ability–motivation–opportunity enhancing human resource practices and firm performance: Evidence from India," Journal of Management & Organization, Cambridge University Press, vol. 24(5), pages 730-747, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dr.Muganda Munir Manini & Dr.Umulkher Ali Abdillahi, 2023. "Does the Internal Control Environment Drive the Performance of Cooperatives? A PLS-SEM Perspective," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 721-745, July.
    2. Mohammad Salman & Imran Saleem & Showkat Ahmad Ganie, 2023. "Human Resource Management Practices as Antecedents of Employee Competencies: Empirical Evidence from the Banking Industry," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(3), pages 381-398, August.
    3. Khilji, Shaista E. & Wang, Xiaoyun, 2007. "New evidence in an old debate: Investigating the relationship between HR satisfaction and turnover," International Business Review, Elsevier, vol. 16(3), pages 377-395, June.
    4. Alba Manresa & Andrea Bikfalvi & Alexandra Simon, 2018. "The Use And Determinants Of Training And Development For Creativity And Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-28, October.
    5. Mr. Nyakundi, Abel, B. & Dr. Munyao, Solomon. M, 2022. "Employee Factors influencing Performance in the 21st Century Organizations," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(3), pages 54-59, March.
    6. Julia L. O. Beckel & Gwenith G. Fisher, 2022. "Telework and Worker Health and Well-Being: A Review and Recommendations for Research and Practice," IJERPH, MDPI, vol. 19(7), pages 1-32, March.
    7. Krammer, Sorin M.S., 2022. "Human resource policies and firm innovation: The moderating effects of economic and institutional context," Technovation, Elsevier, vol. 110(C).
    8. Nguyen ThiThuy Van & Le Ba Phong & Luu Thi Loan, 2018. "Antecedents of Innovation Capability: The Role of Transformational Leadership and Organizational Learning," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 9(5), pages 1-10, September.
    9. Gregorio Sánchez-Marín & Gabriel Lozano-Reina & Mané Beglaryan, 2022. "HRM Policies and SMEs Performance: The Moderating Role of CSR Orientation," Central European Business Review, Prague University of Economics and Business, vol. 2022(1), pages 85-110.
    10. Jenkins A. Asaah & Beatrice L. Asaah & Austin W. Luguterah, 2020. "Diagnosing the Organizational Culture of Rural Community Banks in Ghana and Its Effects on Their Financial Performance," Journal of Social Science Studies, Macrothink Institute, vol. 7(2), pages 86-114, December.
    11. Mashal Ahmed Watoo & Man Cao & Zhao Shuming, 2023. "High-performance work systems and the work–family interface: a cross-level investigation," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 935-954, July.
    12. Aini Farmania & Riska Dwinda Elsyah & Ananda Fortunisa, 2022. "The Phenomenon of Technostress during the COVID-19 Pandemic Due to Work from Home in Indonesia," Sustainability, MDPI, vol. 14(14), pages 1-21, July.
    13. Ketan Reddy & Radeef Chundakkadan & Subash Sasidharan, 2021. "Firm innovation and global value chain participation," Small Business Economics, Springer, vol. 57(4), pages 1995-2015, December.
    14. Juliana Salvadorinho & Leonor Teixeira, 2023. "Happy and Engaged Workforce in Industry 4.0: A New Concept of Digital Tool for HR Based on Theoretical and Practical Trends," Sustainability, MDPI, vol. 15(3), pages 1-29, February.
    15. Uttara Jangbahadur & Vandna Sharma, 2018. "Measuring Employee Development," Global Business Review, International Management Institute, vol. 19(2), pages 455-476, April.
    16. Nura Abubakar Allumi (PhD), 2015. "Performance Management System in Nigerian Higher Educational Institutions: Proffering a Double Mediation Model," Journal of Social Sciences (COES&RJ-JSS), , vol. 4(2), pages 828-840, April.
    17. Edgar Antonio Sánchez‐Báez & José Fernández‐Serrano & Isidoro Romero, 2020. "Organizational culture and innovation in small businesses in Paraguay," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 233-247, April.
    18. Fay, Scott & Feng, Cong & Patel, Pankaj C., 2022. "Staying small, staying strong? Retail store underexpansion and retailer profitability," Journal of Business Research, Elsevier, vol. 144(C), pages 663-678.
    19. Shahzad, Fakhar & Xiu, GuoYi & Shahbaz, Muhammad, 2017. "Organizational culture and innovation performance in Pakistan's software industry," Technology in Society, Elsevier, vol. 51(C), pages 66-73.
    20. Nadezda Krasilnikova & Meike Levin-Keitel, 2022. "Telework as a Game-Changer for Sustainability? Transitions in Work, Workplace and Socio-Spatial Arrangements," Sustainability, MDPI, vol. 14(11), pages 1-13, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:manlab:v:49:y:2024:i:1:p:97-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.xlri.ac.in/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.