The influence of human resource management practices on employee performance in branches of commercial banks in Kitui town

Abstract

Human resource management practices pose a daunting challenge to organizational management in today’s dynamic market environment fuelled by globalization wave. The purpose of this research was to explore the effects of human resource management practices on employee performance in branches of commercial banks in Kitui town. The specific objectives of the study were to determine the influence of recruitment and selection, training and development, performance management systems and organizational communication practices on employee performance of branches of commercial banks in Kitui town. The population of the study was all the 104 employees who were currently working in all the eight banks at Kitui town. The response rate was 94 questionnaires representing a response rate of 90%. Data was collected by use of questionnaires which were physically availed to the sample population. Data was analyzed by use of descriptive statistics coupled with inferential statistics including Correlation, ANOVA and Multiple Regression. Basically it was found that recruitment and selection practices affects employee performance, specifically a competitive hiring process and proper placement has a bearing on timely delivery of services, nature of products and services and meeting set production targets. By and large training and development practices improve operational skills and knowledge and therefore improve the standard of products and services and increase employee motivation. Mostly in general performance management systems practices was found to help employees meet their set targets, provide a measure of employee performance as well as increase employee competency. On the whole organizational communication practices were also found to increase employee competency and enhance individual as well as organizational productivity. The research concluded that human resource management practices can enhance employee performance and recommended that banks develop a scheme of service that ensures recruitment, selection, placement and promotion practices are based on merit. In addition banks should mount relevant training schedules and programs which are accorded to all staff fairly, develop unbiased performance management systems that have a feedback loop and raise staff awareness on its role and institute a clear and sound organizational communicational policy that would enhance interpersonal communication and relationship between seniors and juniors. More research is needed on the reasons behind perceived biasness of performance management systems and general distaste on the same by the low level employees.