This website uses cookies to ensure you have the best experience. Learn more

The Impact Of Human Resource Management Practices On Employees Turnover In Banking Sector Of Pakistan

2845 words - 11 pages

Research has shown consistently that there are different factors which predicts turnover, so this study investigates that what factors, cause employees to leave one organization and join another. Second, to find out the significant impact of each variable on turnover. It is hypothesized that human resource management practices are negatively correlated with employee turnover. In this study multiple regression analyses will be run to test a model that included the above mentioned independent variables as predictors of intent to quit in banking sector. Six banks and a total of 120 respondents from these organizations participated in the designed scale. Findings show that realistic job information, job analysis, work family balance, supervisor support, and compensation were negatively correlated with employee’s turnover.

The field of human resource management has gained attention of researchers in the recent years. This study broadly focuses on the impact of human resource (HR) practices on employees’ turnover. In addition to this, the study also focuses on various HR practices in the banking industry with respect to employees working for banks.
Commercial banks play a vital role in the economic activity of a country, as the state bank of Pakistan implements monetary policy with the help of commercial banks. As government of Pakistan is facilitating the investors in every sector due to which lot of multinational banks have encouraged investing in banking sector. The new multinational banks no doubt created lot of employment opportunities for the Pakistani youth but it also raised the phenomenon of employee turnover. Turnover has become a major concern for organizations especially in banks with employee shortages and competitive pressures making retention of key employees a strategic issue. There is no doubt retaining top talent is a high priority with the war for talent in today’s workplace and the changes in the larger business world, organizations have to do more than pay well.
As the paradigm of lifetime employment becomes unrealistic, the question who stays with you? has assumed great importance in organizations today. Simultaneously, there has been an increasing tendency to ‘buy in’ the talents of professionals with cross functional skills in order to create a competitive advantage. One visible effect of this has been a consistent rise in the pay packages of most organizations so as to attract and retain the most desirable employees. Such a trend over the last few years has resulted in an unstable labor market, especially for industries such as marketing, advertising, finance and software where the skills are by and large transferable, from one work environment to another (McEvoy et al., 1987).
The undesired loss of competent personnel is costly to an organization in both direct and indirect terms. Therefore Turnover reduction may be a goal for some employers to reduce replacement and training costs, increase...

Find Another Essay On The Impact of Human Resource Management Practices on Employees Turnover in Banking Sector of Pakistan

What are the effects of Human Resource Management on corporate performance and employees?

2916 words - 12 pages This essay is to discuss what the effects of Human Resource Management are on both corporate performance and employees. In order to do that I will first define what Human Resource Management is by looking at some of the existing definitions. I will then look at the relationship of HRM and performance using Paauwe's and Richardson's model. I will introduce the theoretical framework of the HRM and its effects on employees and corporate performance

impact of global financial crisis on banking sector

1904 words - 8 pages be separated into few types which included commercial banks, Islamic banks, International Islamic banks, investment banks and other financial institutions. In this study, it will mainly focus on the level of efficiency of Islamic banks and conventional banks which located in Malaysia within the period of 2003 to 2012. It is used to determine what does the impact of the Global Financial Crisis brings on the banking industry. Based on the statistic

impact of global financial crisis on banking sector

2820 words - 11 pages , Granger Causality test and Multicollinearity test. R2 and Adjusted R2 R2 is used to measure the goodness of fit and determine the impact of total variation of the independent variables on the dependent variable. The range of R2 is between 0 and 1 and 1 implies that the variation in Y is totally explained by X while 0 is means as there is no relationship between both of the dependent and independent variable. However, in a bad situation, the

Impact of HRM Practices on Health Care Workers' Perceived Performance in Pakistan

3065 words - 12 pages work, compensation/incentives, HR planning, performance appraisal, and employees security have positive and significant influence on business performance. Shahzad, Bashir & Ramay (2008) studied that compensation, promotion and performance evaluation practices have positive impact on employees perceived performance in the education sector of Pakistan. Significance of the study It is clear from the literature review that, the success of any

Human Resource Management and the Impact of Information Technology

1491 words - 6 pages Human Resource Management and the Impact of Information Technology Is the impact of information technology changing Human Resource Management? Information, technology impact is changing the whole concept of how the work place is managed, and I will point out the changes and enhancements to Human Resource Management and the employees. The information technology can save everyone time and expense once he or she learns how to use it efficiently

Impact of the Current Global Financial Crisis on Human Resource Management

2484 words - 10 pages Introduction Current economic downturn has enormous influence on businesses. The field of Human Resource Management (HRM) is not an exception. The common practices in these periods in HR departments are not hiring new employees, layoffs, not paying for overwork hours, cost cutting including wages and bonuses, less training and early retirement programs and so on. What has been happening in my country, Japan, since this financial crisis began

An empirical study of human resource management strategies and practices in Australian just-in-time environments

7366 words - 29 pages -skilling; and open and effective communication processes. What was particularly striking from this analysis was the evidence gained not only of the added emphasis on these issues in the JIT companies, but of the potential for "adding value" through combining management strategies. It is evident that the companies identified as being more heavily involved in JIT practices appear to be more focused on particular human resource management strategies, and

Impact of Banking Sector on Agricultural Development of India with particular reference to Maharashtra – Theoretical perspective

2190 words - 9 pages Impact of Banking Sector on Agricultural Development of India with particular reference to Maharashtra - Theoretical perspective.Vivek V. Patil*1) Introduction :-Agriculture probably is the oldest profession for livelihood for major portion of the population in our country. Nature and type of farming , however, underwent conspicuous changes during the course of socio-economic transformation which has now attended technologically advanced

The Design and Implementation of Strategic Human Resource Practices

1043 words - 4 pages proactive HRM is emphasized and how it can contribute to business performance. Practicing strategic human resource management in UK companies has faced difficulties. Politics and customary practices in institutions have hampered the progress from personnel management to strategic HRM. According to an article, connection between HRM and competitive performance has not been established (Ogbonna & Whipp, 2006); because HR is an intangible resource of a

Human Resource Management practices in japanese subsidiaries in China

1502 words - 6 pages studied in the last section of this essay. Human Resource Management in Japan Human Resource Management is the process by which a company manages people to get a result (Keeley, 2001, 17). HRM practices of a country are strictly linked with his cultural, socio-political and physical environment. Culture is one of the most important aspects to consider when studying HRM practices; the influence of culture is essential throughout all the HR

Does the bundling of human resource practices result in better performance?

1170 words - 5 pages be, human input remains superior to capital investment. This being the case, the HR office is mandated into ensuring that the human capital achieves the goals of the organization. Transformations have been witnessed in the HRM discipline. Previously, the HR department used to pay more attention into management of the human capital. The case is very different in this century with more emphasize being directed into developing, rather than managing

Similar Essays

The Impact Of Human Resource Practices On The Retention Of Employees

1057 words - 4 pages industry experts often quote 25% of the average employee salary as conservative estimates. (Importance Of Employee Retention) So we need to understand that basically itself employee turnover is not a disease but it is a symptom of the disease i.e. Failure to retain employees. The main problem under study in this research is “The impact of human resource practices on the retention of employees”. Effective employee retention is the result of

The Impact Of Hr Practices On The Retention Of Employees

1039 words - 4 pages ). So we need to understand that basically itself employee turnover is not a disease but it is a symptom of the disease i.e. Failure to retain employees. The main problem under study in this research is “The impact of human resource practices on the retention of employees”. Employee retention as effective employee retention is the result of systematic attempt by employers. It needs to develop and establish an environment that attracts employees

The Impact Of Hr Practices On The Retention Of Employees

4218 words - 17 pages for training”. Personnel Journal, 68: 54-56. • Givord, P., and Maurin, E., 2004. Changes in job security and their causes: An empirical analysis for Frances, 1982-2002, European Economic Review, 48: 595-615. • Hom, P.W. and Griffeth, R. (2001), Employee Turnover, South Western Publishing, Cincinnati, OH. • Huslid, M.A(1995) The Impact of Human Resource Management practice on turn over ,Productivity and Corporate financial performance, Academy

Reducing Turnover And Keeping The Best In Human Resource Management

1902 words - 8 pages recognition and rewards could be either internal or external.SummaryIt is not hard to image how important retaining the high-performance employees that company hired. Finding and hiring the best employees is only a part of the human resource management process, after this, they have to develop and keep these employees as well. Even though turnover is inevitable in the cruel competitive society and caused by many different reasons, it can be reduced