Effectiveness of Manpower Planning Practices in Commercial Banks of Bangladesh

Abstract

Banking sector is the most prominent and stable sector compared to other industrial sectors of Bangladesh. At present there are 59 scheduled banks including 48 private commercial banks in Bangladesh operating under the regulation of Bangladesh Bank. There is a paramount importance of manpower planning in these commercial banks for achieving competitive advantage and banks’ strategic objectives. The basic function of manpower planning in a bank is to identify the future needs and availability of human resources along with the skills required to perform bank’s activities to achieve their strategic goals. Hence, this paper aims at evaluating the impact of manpower planning in the banks’ overall performance of Bangladesh. This study is based on a survey of 206 employees of different levels of the commercial banks of Bangladesh. Both descriptive and inferential statistics were used to analyze the data. Descriptive statistics were used to describe the present manpower planning practices of the commercial banking sector in Bangladesh. Inferential statistics like factor analysis and multiple regression analysis were used to identify the relationships between the manpower planning practices and the factors that are concerned with effectiveness of manpower planning practices of the commercial banks in Bangladesh. Results show that Delphi technique and skill inventory practices and key position auditing techniques are the significant manpower planning of the banks. Factors like timely planning and audit, evenly distribution of work, addressing job turnover, adequate workload, and comprehensive recruitment plan are significantly related to the overall manpower planning effectiveness of the commercial banks in Bangladesh. This study suggests that the policymakers of the commercial banks of Bangladesh should give importance on timely planning and audit, evenly distribution of work, addressing job turnover, providing adequate workload, and comprehensive recruitment plan in order to bring effectiveness of manpower planning of the banks.