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

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.