Impact of HRM Practices on Organizational Performance and Growth with Reference to Pakistan Public and Private Banks

Abstract

HRM practices play a vital role in organizational performance of banking sectors. The objective of this study is to determine how Human Resource Management processes have impacted the organizational performance of public and private banking industry in Pakistan, for that purpose, a public bank i.e. National bank of Pakistan (NBP), and a private bank, United Bank Limited (UBL) was selected. In the current company environment, HRM strategies are essential for two key reasons: talent cultivation and employee motivation. A questionnaire was used to collect quantitative data from both the banks, and the aim of the study was explanatory. The survey was completed by an estimated 270 employees from NBP and UBL from various divisions. The analysis was conducted using SPSS version 22, specifically the Regression and Correlation functions. According to the research, NBP and UBL, Karachi's hiring practices had no bearing on organizational performance. Other HRM strategies, like as training and development, performance evaluation, remuneration, and incentives and recognition, favorably influence organizational performance. According to researchers, the study's results are useful for public and private banking sectors of Pakistan. The results of this study may be beneficial not just to the participating banks, but also to other financial organizations.