Effective Hrm Practise in Banking Sector of Bangladesh

Effective Hrm Practise in Banking Sector of Bangladesh

Introduction:

In order to achieve development of both the Bank and the individual members of staff who contribute to its success, the HR Strategy encompasses organizational development activities, which aim to improve the Bank’s capacity to achieve greater effectiveness, including improved quality of service. There are number of HR practices that could be tested in connection with employee performance. We have studied eleven HR practices and their relationship with organizational success which are personnel selection, performance appraisal, incentive compensation, job design, grievance procedures, information sharing, attitude assessment, labor-management participation, recruitment efforts, employee training and promotion criteria. These eleven HR practice in very important to achieve organizational success and these practices have positive relationship with organizational success.

Methodology:

The questionnaire was based on questionnaire for measuring impact of various HR practices on employee performance and as well as organizational success. The reason for selecting this questionnaire is that it was used to study the impact of same variables as in present study and was well tested on reliability and validity scales this questionnaire was also correction by our teacher. Questionnaire that was administered consisted of 16 questions and these questions are included Compensation Practices, Promotion Practices Performance Evaluation Practices and Perceived Employee Performance and so on. To complete this term paper we use primary data.

Literature Review:

Human resources management includes a variety of activities , and among them is deciding what staffing needs in banking sector and whether to use independent contractors or hire employees to fill these needs , recruiting and training the best employees , ensuring they are high performers , dealing with performance issues and ensuring the personnel and

management practices conforms to various regulations. Activities also include managing their approach to employee benefits and compensation, employee record and personnel policies (Garry A. Gelade and Mark Ivery)

HRM practices have shown to be valuable to any banking sectors success. Thus to be successful in a global market place, the challenge for all banking regardless of size is to invest in human resources. They need to select and retain talented employees, undertake employee training and development programs and dismantle traditional bureaucratic structures that limit employee’s ability to be innovative and creative (CARL F. FEY).

The commonly practices HR activities in banking sector include the following:

HR Planning

Recruiting

Selection

Training and Development

Compensation

Performance Management

Employee Relations

Discussion and Analysis:

Under discussion and analysis we will focus on the relationship between effective HR practice and organizational success. We will see the effective HR practice of every bank and the comparison of these banks. Our discussion and analysis will be on 5 banks.

1. BRAC BANK LTD:

One of the leading banks in banking sector of Bangladesh is BRAC BANK LTD. To become more strong and providing superior service, this bank performs in effective HR practice.

Planning and Recruiting: As BRAC BANK LTD. is one of the leading banks in Bangladesh; they follow an effective HR policy. BRAC BANK LTD. recruits people both inside and outside of the bank; according to the post and people they need for the bank. The Bank follows the best practice of 80/20 ratio, meaning that 80 % of management population shall be home grown while 20% may be recruited externally in order to infuse new skills and new thinking.

Job analysis: A job analysis is a systematic exploration of the activities within a job. It includes: Task/work, activities. Human behavior, Machine, tools, equipment and work aid Performance standards Job context Human requirements/ skills and so on.

Methods of collecting data about the job interview: Three types of interview. It includes: Individual interview with each employee. Group interview with group of employees, Supervisor concerned employee. Observation: Directly observe the activities of the employee without asking him/her questions.

Job Description: job description is a written statement of what the job holder actually does, how he or she does t, and under what conditions the job is performed. It includes: job identification, job summary relationship and responsibilities, working condition and so on.

Job Specification: Under the job specification HR officer consider: Education, experience, knowledge, skills, abilities and so on.

Selection process: BRAC BANK LTD. thinks that the prosperity of the bank is depends on customer satisfaction. They select that kind of employees who can give them quality full service. BRAC BANK LTD. follows a procedure to select employees for any blank post .

Hiring Decision: New position arising out of new business direction, vacancy arising because of resignation/retirement Annual, Planned Recruitment of fresh graduates. Before hiring decision HR officer checks and test: Selection test, employee test, Personal reference and background check and so forth..

EMPLOYEE ORIENTATION AND TRAINING:

Employee orientation and training includes:

•What are the organization’s goals?

•What tasks must be completed to achieve these goals?

•What behaviors are necessary for each job incumbent to complete his or her assigned tasks?

•What deficiencies, if any, do incumbents have in the skills, knowledge or attitudes required to perform the necessary behaviors?

BRAC Bank also concern about employment development and also thinks about necessary training.

Evaluating Training and Development Effectiveness:

To evaluating training and development effectiveness BRAC BANK follows some methods, like:

Test-retest method

•Pre-post performance method

•Experimental-control-group method

Workers Training & Developing Program:

The manufacturing plant has different section. Each permanent workers need to pass through a six weeks training program. Here the supervisor is responsible for the training. The workers look the whole process and get acquainted with all the machines. They are taught how to use them and also how to manage the raw materials. This training program is important for effective use of resources. Temporary and casual workers are usually trained in the same process as the permanent workers. The training of the permanent workers is done under the supervisors whereas the temporary and casual workers get trained under the permanent workers.

Performance Appraisal at BRAC Bank Limited:

BRAC Bank practices performance appraisal to evaluate their employee’s performance. They use measurable criteria for evaluating their employees. The core purpose of BRAC BANK LTD.’s performance appraisal- is to promote or increase salary of their employees whose performance is better comparing to other employees. BRAC BANK LTD.’s practices performance appraisal by marking the employee’s office attending time, interpersonal skill, desk watch performance, business performance etc. It happens on- yearly basis. It helps to:

•Align employee objectives to the business goals. Enable strategic Performance Management through Management by Objectives (MBO)

•Measure and Assess employee performance periodically and provide feedback and support to achieve quantitative, qualitative and process targets

•Evaluate and track Hi-Performance and achievers based on Competency driven practices.

•Enable Reward and Recognition

BRAC BANK LTD.’S HR COMPENSATION:

Bonus: BRAC BANK LTD. offers its employees both regular and surprise bonuses. Regular bonuses are given in two Eid as festival bonus. Beside this BRAC BANK LTD. offers bonuses for good performance and as goal completion reward.

AWARDS: HR of BRAC BANK LTD. offers certificates for outstanding performance of their employees. Normally per year minimum 6 to 8 employees are awarded with certificates and some other non-financial reward like air tickets of Dhaka-Bangkok-Dhaka for their outstanding performance.

INCREMENT: BRAC BANK LTD. provides increment to their employee that depends on their performance and sometimes seniority. When an employee shows outstanding performance, he is offered an increment. Sometimes BRAC BANK LTD. cannot give promotion to its employees in time and then they offered them an increment in their salary.

Salary: HR of BRAC BANK LTD. offers different salary packages for its employees. The amount of salary depends on both seniority and performance. Thus two employees in the same position can get different salaries and incentives for their different performance. These variations occur only in the case on senior employees. The entry-level employees who join BRAC BANK LTD. As management trainee usually gets the same amount of salary. In BRAC BANK LTD., starting salary of an employee is tk.20, 000. Salary of a probationary officer is tk. 30,000-35,000. Salary of mid level officer is tk.80, 000-1, 20,000 and salary of top level officer is tk.1, 50,000-3, 00,000

Other facilities: Transportation facilities, insurance facilities, gratuity, general regulation of leave and so on.

Punishment:

As and when, allegations of the aforesaid manner are brought against any employee; these will be investigated in a systematic way as described in this code. Based on the investigation report and recommendations of the inquiry committee, the top management may award the following punishment:

I. Minor Punishment:

•Warning Letter.

•Deduction of Salary.

II. Major Punishment:

•Demotion to lower grade/Post.

•Realizing financial loss from his salary or other source.

•Removal/Dismissal from service

Relationship of effective HR practice and organizational success:

These HR practice are very effective to improve performance. By this practice they can collect capable and effective employee. Its compensation

and benefits even punishment help to receive the best efforts from employee.

2. STANDARD CHARTERED BANK:

STANDARD CHARTERED BANK is one of the most popular banks in Bangladesh. This bank is tried to do effective HR practice in their organization. This Hr practice includes: HR Planning

Recruiting

Selection

Training and Development

Compensation

Performance Management.

Selection:

Any organization that intends to compete through people must take the utmost care with how it chooses organizational members. Personnel selection is the process by which companies decide who will or will not be allowed into their organization. Several generic standards should be met in any selection process, which are reliability, validity, generalize ability, utility, and legality. Standard Chartered selects employees based on knowledge, skills and talent. They are committed to providing equality of opportunity to all employees, regardless of gender, race, nationality, age, disability, ethnic origin, or marital status.

Training & Development:

Training refers to a planned effort by a company to facilitate the learning of

Job-related knowledge, skills, or behavior by employees. Standard Chartered provides a framework within which the employee can identify the training and development needs. Such training provides a consistent standard of management learning throughout Standard Chartered. It also enables the employees to take all of the programs or study for individual modules according to their particular development needs. Development

Programs are carried out in the first two years of joining , applicable to all management trainees, across the Bank. Each business and function would decide the appropriate development needs for each individual , within this overall framework.

Performance Appraisal:

Each organization must create and communicate performance measures that reflect its unique strategy. Performance management is the process through which managers ensure that employee activities and outputs are congruent with the organization’s goals. It is central to gaining competitive advantage. A well-executive performance management plan enables an organization to achieve critical goals such as:

1. Recognize the efforts and contributions of current staff.

2. Reward staff with compensation directly linked to performance.

3. Motivated staff to improve performance.

4. Orient staff towards goal achievement.

5. Retain key employees through the use of competitive compensation programs.

6. Attract quality employees with an effective performance management system.

The key elements of a Performance Management System include the following:

1. A Formal Compensation Philosophy Statement

2. Salary Administration Program

3. Job Evaluation System

4. Performance Appraisal System

5. Reward Programs

Compensation:

Being a leading Bank Standard Chartered Bank presents itself to its corporate as well as individual customer as dependent upon the ability of its sales force. These are the individuals who take an active approach in getting the message out about the Bank’s products and services. How effectively the sales team markets the Bank, and in turn, how successful it is, is directly related to the sales compensation program. A sound sales compensation package enable Standard Chartered Bank to focus sales activities towards desired results, and rewards these outcomes with compensation tied directly to the level of achievement.

Rewards & Recognition:

Standard Chartered Bank rewards the talented and high performing employees competitively. They regularly conduct salary surveys to ensure the reward package remains competitive in the market place. They encourage continuous discussion; encourage regular review of employee’s performance and development. This provides feedback to the staff about how they are doing. The management links this to financial and non- financial recognition. In addition to this, the bank provides various incentives in the form of bonuses to encourage the employees and motivate them to continue with their high performance. These include:

1. Spot Award + Rs. 5000 as cash prize

2. Surprise Award

3. Best Performance Award

4. Service Quality Award

Relationship of effective HR practice and organizational success:

Standard Chartered Bank practices HR effectively to provide superior service to the customer and to be a leading Banking organization in the Bangladesh. To do all these things they must be careful in recruiting process, selection employees, training, and compensation and must provide motivation to the employees. This bank does all these things very effectively so this is the most leading banking company with its superior banking service.

3. SOUTHAST BANK LIMITED:

Southeast Bank divides the whole Bangladesh into four potentials divisions and operates their banking activities and provides services for the consumers. Southeast Bank also tried to follow effective HR practice. These include:

Human resource planning:

Southeast bank has a personal and administrative Department. Southeast bank is one of the biggest employers in Bangladesh. The total number of employers in Bangladesh. The total number of employees is 1,223. For the employees there are systematic in house training in home and abroad. To motivate the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical center , on site sports . Production and accommodation facilities include full time supply of safe drinking water, adequate lighting and ventilation facilities from sheet.

HR Practices of SOUTHEAST BANK

Recruitment

Training

Performance Management

Labor relation

Employee relation

Job analysis

Job design

Selection

Development

Incentives

Benefits

Recruitment and Selection process in SOUTHEAST BANK

Recruitment is the process trough which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection.

Source of recruitment

There are two kinds of source SOUTHEAST BANK uses for recruitment .They are

1. External source

2. Internal source.

We try to discuss all relative sources which are used for recruitment in SOUTHEAST BANK.

Training and Development program of SOUTHEAST BANK

Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job.

Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotion and hold grater responsibility.

There are many types of method practices in SOUTHEAST BANK .we discuss that method at bellow:

On the job training

Off the job training

Performance Management:

Performance appraisal is the process of assessing employee’s past performance, primarily for reward, promotion and staff development purposes.

‘Performance appraisal (is) a process that identifies, evaluates and develops employee performance to meet employee and organizational goals.

Performance Appraisal doesn’t necessarily use to blame or to provide a disciplinary action. Previous management theories used to view performance appraisal as a stick that management has introduced to beat people. Performance appraisals are now more clarified and they concentrate on developing organizational strengths and employee performance.

Performance Appraisal Process:

Who Appraises

• Supervisors

• Subordinates

• Peers

• Clients/customers

• Self appraisal

• 180/360 degree approach

Employee relation

Employers and employees each have their own sets of needs and values, and successful relationship between these two sides requires that some sort of balance be struck. This balance often takes the form of a psychological contract, an understood agreement between employer and

employees that defines the work relationship. This contract with or without support of a formal collective bargaining, agreement influence the outcome achieve by each side.

SOUTHEAST BANK has the various into three channel categories those are

1. Employee safety

2. Employee health

3. Employee working condition

Job analysis

Job analysis is the procedure for determining the duties and skill requirement of a job and the kind of person who should be hired for it.

The supervisor or HR specialist of SOUTHEAST BANK normally collects one of the following types of information:

Work activities

First he or she collects information about the job actual work activities such as marketing, sewing, production. This list also include how, why and when the worker performance each activity.

Education and qualification

Collects the information about education background and qualification.

Experience

Experience must be needed for any job in SOUTHEAST BANK.

Incentives

Compensation fluctuates according to

– A pre-established formula

– Individual or group goals because group goals are different from individual goals

– Company earnings

Incentives adds to base pay

It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization.

Motivates employees

Incentive Pay Categories

Individual

Group

Company-wide

Other facilities and benefits:

Transportation, medical, insurance and so on.

Relationship of effective HR practice and organizational success:

Like all other banks Southeast Bank also try to do effective HR practice to survive in competitive market. This bank is very much concern about the activities of HRM like recruiting, selection, training and so on. It also provides other benefits like Transportation, medical, insurance. All these things are very much helpful to provides superior customer services.

4. Exim Bank Ltd.

Human Resource Management Process:

Human Resource Management Process consists of eight activities necessary for

staffing the organization and sustaining high employee performance. The process is

1. HR planning and requisition.

2. Selection

3. Training

4. Orientation

5. Appraisal and evaluation

6. Compensations and benefits

Human Resource Planning in Exim Bank:

Planning is the core area of all the functions of management. It is the foundation upon which the other three areas should be built. Planning requires management to evaluate where human resource of the company is currently, and where it would like to be in the future. From there an appropriate course of action to attain the company's goals and objectives is determined and implemented.

Every organization has employment planning. EXIM BANK has also its employment planning. They usually forecast their personnel needs based on their mission, strategic goals & objectives & technological and other changes resulting in increased productivity. Although there are several methods to predict personnel needs, but they use managerial judgment because it gives the more real world scenario for personnel needs. They think that the other methods can not give the accurate situation of the personnel needs. These are basically graphical methods, which can not measure the actual personnel needs. But managerial judgment method depends upon the change in productivity, market conditions etc.

Recruitment and Selection process in EXIM BANK:

EXIM Bank is looking for top-caliber people who want the flexibility and resources to grow in their career. They offer the kind of person who has always stood out. Where you can continue to excel. No matter what your field or range of interests, there are vacancies where your talents can likely be applied and developed. We have thousands of diverse people from

different cultures and backgrounds working in a variety of different jobs in different fields

• Merit is the sole criteria for selection.

• Attitude is given as much weight age as functional competencies.

• Panel interviews comprising of Functional Head & HR Head.

• Sources for recruitment are through campus, consultants, employee referrals, internal job postings and the internet.

• Positions in Officer Cadre, GET and MT involve written tests.

• Antecedent verification is an integral part of our recruitment process.

• Medical fitness is pre-requisite for all positions.

• We are an equal opportunity employer and do not discriminate on the basis of race, community, religion or sex.

Recruitment process:

•Merit is the sole criteria for selection.

•Attitude is given as much weight age as functional competencies.

•Panel interviews comprising of Functional Head & HR Head.

•Sources for recruitment are through campus, consultants, employee referrals,

internal job postings and the internet.

•Positions in Officer Cadre, GET and MT involve written tests.

•Antecedent verification is an integral part of our recruitment process.

•Medical fitness is pre-requisite for all positions.

•Equal opportunity employer and do not discriminate on the basis of

race, community, religion or sex.

Recruitment process:

A responsibility for recruitment usually belongs to the HR department. This department works to find and attract capable applicants. Job description and speciation provide the needed information upon which the recruitment process starts. The functions of the recruitment office of EXIM BANK are given below:

1. Need Assessment

2. Defining the position description

3. Checking the recruiting options

4. Advertisement

5. Screening and Short – listing Applications

6. Written test

7. Selection interview (3 – tier)

8. Employment decision (Application Bank)

9. Pre- employment medical check-up

10. Offer letter

11. Orientation / Induction

12. Placement

13. Follow –up

Source of Recruitment: There are two types of sources:

Internal Sources &

External Sources

Selection Process:

Selection is the process of gathering information for the purpose of evaluating and

deciding who should be employed in particular jobs.

1. Screening and Short-listing Applications.

2. Written Test

3. Selection Interview

4. Reference Check

5. Employment Decision

6. Pre-employment Medical Check-up

7. Offering the Role

Employee Training Method:

On-the-job Training:

On the job training is a training that shows the employee how to perform the job and

allows him or her to do it under the trainer’s supervision. These include are:

Apprenticeship Training, Informal Learning, job rotation etc.

Off the job Training:

It includes; The Case Study Method, Management Game, Outside Seminars, Behavior Modeling and so on.

Development:

Any attempt to improve current or future management performance by imparting

knowledge, changing attitudes, or increasing skills Any effort toward developing employees must begin by looking at the organizations

objectives. The objectives tell us where were going and provide a framework from which our managerial needs can be determined.

Employee Development Method

Managerial On-the-Job Training: The development of employee’s abilities can take

place on the job. It includes:

•Job Rotation: It involves moving a trainee from department to department to

broaden their understanding of all parts of the business and test their abilities.

•Coaching Approach: The trainee works directly with a senior manager or with

the person they are to replace.

•Action learning: Here the management trainees are allowed to work full-time

analyzing and solving problems in other departments

Types of Training:

•Technical Training

•Management Training

•Safety Training

•Occupational Health

•General Training (Management, Accounts, Sale etc.)

•Social Skill Training

•Refresher Training

•Workers Education Training

Performance Appraisal:

At EXIM BANK appraisals are done by the Self-appraisal system. Goals are set by participative management approach and performance is evaluated quantitatively against those previously set objectives. Managers appraise the performance of their subordinates through a 5 points Graphic Rating Scale. The total appraisal process is completely transparent to everyone within the organization.

1 for unsatisfactory

2 for marginal

3 for target

4 for superior

5 for outstanding

Employee Compensation:

Employee compensation refers to all forms of pay or rewards going to employees and

arising from their employment. It has two min components:

1. Direct financial payments: Wages, salaries, incentives, commissions, and bonuses.

2. Indirect Payment: Financial benefits like employer-paid insurance and vacations. It also includes: transportation, insurance, family trip, safety facilities etc.

Motivating Employees in Exim Bank Ltd:

The advantage of having a Management by Objective (MBO) system is that everyone becomes Self-motivated. Everyone is motivated to achieve, to perform. The only challenges is to keep the employees’ moral high in times of failure. In EXIM BANK, one of the tasks of the management is counseling. Managers are there to help the employees to achieve the goals, which in turn keep the employees motivated.

Apart from creating a healthy working environment and ensuring employee

Empowerment, EXIM BANK offers a number of benefits to keep them motivated.

The benefits offered by the company are given below:

1. Education costs of the children

2. Permanent job facility

3. Leave facilities

4. Yearly Employee Awards

5. Promotion

6. Foreign Travel with Family Offers

Relationship of effective HR practice and organizational success:

Exim Bank is another leading bank in Bangladesh. Effective HR practice and other motivational factors to employees are also very useful to compete in the market. They should improve HR practice to get in better place.

5. AB Bank Ltd.:

AB Bank Limited is the first private sector bank in Bangladesh, which former name is Arab Bangladesh Bank Ltd. This bank is tried to use proper HR practice in their organization.

Selection & recruiting process:

Recruiting is the process of searching the potential job candidates in order to fill up the vacant position of the organization and selection is the process of choosing the best candidate among the available candidates. The candidates who are successfully perform the job.

AB Bank Ltd. follows both the internal and external sources of recruitment. In case of internal source they mainly follow – promotion, transfer and job

rotation and in case of external source they follow – advertisement, employment agency.

In case of recruitment and selection AB Bank Ltd considers the

Following process:

• Need assessment

• Checking the recruiting options (Internal and External)

• Screening and Short-listing Applications

• Written test

• Interview

• Reference checking

• Medical check-up

• Orientation /induction

• Follow up

Training & Development:

Training is a learning process that involves the acquisition of skills, concepts, rules, and attitudes to increases the performances of the employees in the organizations. On the other hand development is more future oriented, and more concerned with education, than is employees training or assisting a person to become a better performer. AB Bank Ltd gives emphasis both for internal and external training. Any new operations or product is marketed, they gives training to the employees attached to the operations. Development helps the individuals handle future responsibilities, with little concern for current job duties.

Performance Appraisal:

Performance appraisal information can provided needed input for determining both individual and organizational training and development needs. Another important use of performance appraisal is to encourage

performance improvement. In this regard Performance appraisals are used as means of communicating to employees how they are doing and suggesting needed changes in behavior, attitude, skill or knowledge.

For apprising the performance AB Bank Ltd consider the different criteria of the employee, such as attendance, attitude, cooperation, initiative, dependability, quality of work, overall output, honesty, personality, ready to take challenge etc.

Pay Policies of AB Bank Ltd

Once the job evaluation is complete, the data generated become the nuclease for the development of the organization’s pay structure. This means pay rates or range will be established that are compactable with the ranges, classifications, or point arrived at through job evaluation.

Promotion Policies of AB Bank Ltd

The movement of personnel within an organization- their promotion, transfer, demotion, and separation is a major aspect of human resource management. The actual decision about whom to promote, and who to fire can also be among the mot difficult, and important, a manager has to make. For every organization promotion is extremely important, when the process based on merits and skills of the employee. The employee of AB Bank Ltd are gets both rewards and punishment from their employer based on their performance. Usually money transfer or other benefits are provided as rewards. On the other hand a major problem of promotion is discrimination and favoritism.

Relationship of effective HR practice and organizational success:

AB Bank practices HR effectively to provide superior service to the customer and to be a leading Banking organization in the Bangladesh. To do all these things they must be careful in recruiting process, selection employees, training, and compensation and must provide motivation to the employees. This bank does all these things very effectively so this is the most leading banking company with its superior banking service.

Comparison of all 5 banks:

This is very difficult to compare these five banks, because banking sector in Bangladesh is very competitive. Almost all banks follow same HR policies and practice to provide superior customer service.

But in our survey we see that comparably BRAC Bank can successfully reduce their turn over by taking effective decision in taking interview from candidates. They fix the interview date on the same date of BCS. So their turnover is reduced very quickly.

Recommendation:

Human Resources Management presents special challenges for the Human Resources leader in organizations. Effective Human Resources Management requires special HR tools, special approaches to management, and access to professional Human Resources associations, education, and publications. Because of hard competition in Banking sector HR department needs to be more effective. All banks should reduce turnover by using effective recruitment, selection, motivation and compensation policies. They should emphasis in motivation because banking job is boring and traditional, so the employees fall in dissatisfaction quickly. Banking organization should use more technology which can be imported from advanced country to reduce the pressure of works from employees. Compensation and reward policies should upgrade continuously. By considering all these things, I recommend that banking organization should upgrade their HR policies and practice specially their compensation, motivation, selection, training and performance appraisal.

Conclusion:

The topic of the study was “Effectiveness of HRM practice on the organizational success.” This study has help to understand about theoretical and practical aspect of HR practice in reality. By this study we come to know about recruitment and selection process, training and developing program, motivation, compensation and other benefits.

But the main problem of banking sector in that employees become very much bore. So the main challenge is that how can make employees energetic. Thus, banking sector is too much competitive so HR policies and

practice must be changed very quickly. They also must to adopt with new technology and new method.

Reference:

• How HR & Training Practices Can Boost Worker Performance (IOMA’s Report on Managing Training and Development) [4]

• Human Resource Practices and Organisational Performance: Can the HRM-performance linkage be explained by the cooperative behaviours of employees? By Dr. Mattijs Lambooij[5]

• The impact of HR practices on the performance of business units by Patrick M. Wright, Timothy M. Gardner and Lisa M. Moynihan[6]

• The Impact of Human Resource Management Practices on the Performance of European Firms by Paul Gooderham, Kristen Ringdal and Emma Parry[7]

• Human Resource Strategy to Improve Organisational Performance: A Route for British Firms by Fang Lee Cooke[8]

• Human Resource Management, Organizational Performance and Employee Well-Being by David Guest [9]