EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: THE CASE OF LION INTERNATIONAL BANK S.C

Abstract

This study examines various Human Resource Management (HRM) practices, including recruitment & selection, performance appraisal, training & development, and compensation & reward, and their impact on the overall performance of Lion International Bank. The study adopted a descriptive survey research design. A sample size of 291 employees from Lion International Bank was selected through stratified sampling techniques. Data were collected via a researcher-constructed questionnaire, achieving a response rate of 95.18%. The data were analyzed using the Statistical Package for Social Sciences (SPSS) software. The results indicate a significant positive correlation between effective HRM practices and organizational performance in Lion International Bank. Strategic recruitment and selection processes were found to lead to a more skilled and motivated workforce, while a fair and transparent performance appraisal system fostered a culture of accountability and high performance. Comprehensive training and development programs enhanced employee capabilities and productivity. Competitive compensation and benefits packages were crucial for attracting and retaining top talent. The findings underscore the critical role of HRM practices in shaping organizational performance within the bank. To maximize performance outcomes, it is recommended that the bank prioritize investments in employee engagement initiatives, talent management strategies, leadership development programs, and fostering a positive organizational culture. By aligning HR practices with organizational goals and fostering a culture of continuous improvement, the bank can enhance its competitive position, drive sustainable growth, and ensure long-term success in the dynamic banking landscape.