Human Resource Management Practices in Banking (BLOG 1)


HRM Definition 

To manage and organize an organization's human resources in order to accomplish its goals and objectives is known as human resource management (HRM). Employer relations, performance management, salary and benefits, training and development, and recruiting and selection are just a few of the operations that fall under the umbrella of human resource management (HRM).

The primary goal of HRM is to maximize the productivity and effectiveness of an organization's employees while also ensuring that their needs are met and their rights are protected. Effective HRM practices can help to create a positive and supportive work environment, increase employee engagement and satisfaction, reduce turnover rates, and improve overall organizational performance.

HRM also plays a critical role in developing and implementing policies and procedures that are compliant with employment laws and regulations, such as those related to equal opportunity, workplace safety, and employee privacy. By doing so, HRM helps to mitigate legal and financial risks for the organization.

Overall, Human Resource Management is an essential function of any organization that seeks to optimize its human capital and achieve its strategic goals.


Banks Nature

A bank is a type of financial organization that receives deposits from clients and utilizes those funds to offer credit cards, loans, and other financial services to people, corporations, and governments. Banks may also provide investment and wealth management services in addition to facilitating money transfers and currency conversions internationally. Governmental authorities usually control them to guarantee their stability and adherence to rules and laws. Commercial banks, investment banks, and central banks are a few types of banks.


Why Human Resource Management is important for banks?


The financial risks that banks must regularly accept can be managed by effective and competent labor. Finding such outstanding personnel and placing them in appropriate places within the banks is the responsibility of the human resource department.

Any organization that works with people needs effective human resource management to ensure smooth operations. A "People Business," banking has always been and always will be. A successful organization is one that manages its people resources efficiently and effectively.


Human Resource Management Practices in Banking Sector

1. Job Analysis

2. Recruitment and Selection

3. Training and Development

4. Performance Appraisal

5.Compensation


HR Issues & Challenges: Focus On the Banking Sector

  • Human Resources Risk
  • Empowerment & Motivation
  • Building efficiency
  • Job Description & Job Assignment
  • Employee Turnover
  • Rewards & Incentives

HRM Model

Conclusion

Human resource management strategies are essential in the banking industry because they help organizations succeed and expand by attracting, retaining, and developing people. Recruitment and selection, training and development, performance management, compensation and benefits, and employee engagement are some of the crucial HR practices employed in the banking industry.


References

Dowling. P.J., Festing M. and Engle. A.B.(2013). International Human Resource Management. (6th edn). United States. Andrew Ashwin. 

A. Andrew Ashwin, A. (2009).Handbook of human resource management practice, 11th edition. Kogan Page.




Location: sri lanka

Comments

  1. L.D.NilukasajeewaniApril 20, 2023 at 11:42 AM

    Thanking for sharing this content - yes HR practices are essential for banking companies to attract, retain, and develop talent so it will create more encounters to move forward to gain more efficiency.

    ReplyDelete
  2. MafazApril 26, 2023 at 1:12 PM

    Well said Chathurani. HRM is crucial for the banking sector as well. Regular monitoring and appraisal is important which is clearly explained in the image.

    ReplyDelete
  3. DilrukshimbaApril 30, 2023 at 7:44 PM

    Good content..

    ReplyDelete
  4. Madhumali Thilakarathna (madhuHR Cure Blog)May 1, 2023 at 8:22 AM

    Employees (human resources) directly interact with the customers in the service organizations. Banks do business with the money of others. So especial care & high vigilance from the part of the employees are required in the banks.

    SHRM is required to formulate & implement policies

    Highly Skilled, educated, dynamic & smart employees create positive image for the organization
    Applying appropriate training & development system for the human resource development
    It also facilitate in formulating competitive compensation package for the organization
    It can design fair & appropriate performance appraisal & promotion system which can be motivating factors for the employees
    Rigid recruitment procedure is required to get qualified employees
    Retirement policies can also be helpful to increase the efficiency & effectiveness of the service firms (Assignment point, 2023).

    ReplyDelete
  5. Himali MBA 2023May 1, 2023 at 8:42 AM

    Yes dear. HRM are essential for banks,good content in this article.
    Image 01 is more attractive.so I like it

    ReplyDelete
  6. MOHAMED RAHMATH RALLYMay 4, 2023 at 3:53 PM

    Human resource management strategies are essential in the banking industry because they help organizations succeed and expand by attracting, retaining, and developing people.

    ReplyDelete
  7. SATHEESHMay 4, 2023 at 7:56 PM

    Wow good writeup. I feel if you would have put Citations, would have been more better. Otherthan that the contents i enjoyed. good job.

    ReplyDelete
  8. JanithMay 4, 2023 at 8:12 PM

    Good Content ...

    ReplyDelete

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