IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEES' PERFORMANCE IN NEPALESE COMMERCIAL BANKS

Abstract

Human resource is considered to be the center of all development processes of economy however; today’s competitive business scenario is deteriorating social conditions of human resources, hence causing employees performance. Therefore, this study tries to clear on the importance of human resource management on employee’s performance so as to achieve organizational goal and the competitive advantages. Human resource management practices play the significant role on employee’s performance in an organization. The major objective of this study is to examine the impact of human resource management practices on employee’s performance in Nepalese commercial banks. The specific objectives of the study are concerned with the analyzing the impact of compensation, performance appraisal, training and development, recruitment and selection and career are planning on employee’s performance in Nepalese commercial banks; determining the most influencing factors of HRM practices that affects employee performance in Nepalese commercial banks, examining the relationship between HRM practices and employee’s performance in Nepalese commercial banks and assessing the perception of employees on compensation, performance appraisal, training and development, recruitment and selection and career are planning in Nepalese commercial banks. This study is based on primary data of the respondents of Nepalese commercial banks with 400 observations. To achieve the purpose of the study, structured questionnaire is prepared. The questionnaires were multiple choice, ranking scale. Likert scale and other demographic information were used to collect primary data. The Likert scale on different variables like compensation, performance appraisal, training and development, selection and recruitment and career planning measured in 5-point Likert scale and weighted mean value of each variable were used to examine the relationship between dependent and independent variables as for the study purpose. The major conclusion of the study shows that compensation, performance appraisal, training and development, selection and recruitment and career planning have positive impact on employee performance. In addition, the most influencing factor affecting the employee performance in Nepalese commercial banks is compensation.