THE EFFECT OF HUMAN RESOURCE MANAGEMENT (HRM) PRACTICES ON ORGANIZATIONAL PERFORMANCE
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ABSTRACT
A human resource practice is considered the most critical for organizational performance. However, Human Resource Management is described as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. This study therefore investigated the the effects of human resource management (HRM) practices on organizational performance. The study adopted descriptive survey research design. The population was 165 employees of the eco bank plc. Total enumeration method was adopted. The response rate was 93.9% out of 165 copies of the questionnaire administered. The data was analyzed using descriptive (Statistical Package for Social Sciences (SPSS) and Microsoft excel presented the final data in charts and diagrams. The SPSS was used to obtain frequencies and percentages of close ended responses. The study indicate that the analysis between human resource practice and organizational performance is significant. Recruitment and selection practices affect employee effectiveness in Eco bank (Nigeria) Plc. Performance appraisal has positive and significant effect on employee performance in Eco bank (Nigeria) Plc, compensation plan by management has significant influence on employee motivation in Eco bank (Nigeria) Plc with P-value less than 0.05, R-square of 20.7%, Training and development programs affect organizational commitment in Eco bank (Nigeria) Plc. P-value < 0.05, R-square of 14.0%. The study concludes that human resource management practice has significant effects on organizational performance. It has been found that bank’s performance can be attributed to HRM practices including recruitment and selection, training and development, performance appraisal, and compensation plan. It was recommended that the bank should have an effective recruitment policy to promote scientific selection of prospective employees, training and management development program should be implemented to enhance the capabilities of employees of eco bank Nigeria Plc, Performance appraisal should be guided by the performance management policy, compensation is critical in enhancing performance; hence the eco bank should implement this to motivate those employees who achieve the set targets.
Keywords: Human resource practice, Organizational performance.
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