Purpose: The purpose of this research is to examine how the HRM practice affects on organizational performance in Islamic and Conventional Banking Industry in Bangladesh.
Design/methodology/approach: Data were collected from 10 Islamic and Conventional Banks (N=210 employees) in Bangladesh to test the relationship between HRM and organizational performance. This research employed questionnaire which was adapted from Ghani Azmi (2009), Decenzo & Robbins (2010), Becker & Huslid (1995) and personally distributed to the Bank employees. The sample comprises managerial and non-managerial employees from 10 Banks. Statistical analysis, using SPSS, was used to obtain the identifying impact of HRM practices on organizational performance.
Findings: The main findings are Training and Development, Career Development, Reward and Compensation of Islamic and Conventional Bank has a positive and significant impact on organizational performance. However, Recruitment and Selection of Islamic & Conventional Bank and Performance Appraisal of Conventional Bank have no significant impact on organizational performance.
This study will be helpful to human resource practitioners, management and business practitioners.
Research Limitations: This study used survey data from Islamic and Conventional Bank managers and non-managerial employees. Further research is required to confirm these results using several data sources.
Originality/value: This research also helps us to understand and establishing new path between HRM practices and organizational performance in Islamic and Conventional banking industry. In addition, this research encourages HRM researchers by helping to focus future evidence-based efforts and providing results that are useful to the large number of Bangladeshi firms.
Beer (1984) and Armstrong (1995) stated in their research that human resource embodies a precious asset of any firm. If there is a system in place whereby effective Human Resource Management is practiced inside the organization, it will consequently foster positive employee attitude and behavior at the workplace. Higher job satisfaction, higher commitment or even...