Human Resource Management and Business Performance: A Study of Nigerian Banks in Ado Ekiti Metropolis

摘要

This study examines the relationship between human resource management practices and business performance of Nigerian banks in Ado Ekiti metropolis. The empirical study was conducted via a survey on 399 randomly selected respondents from all the participating banks in the survey. The results of the reliability analysis showed that the cronbach’s alpha and the calculated composite reliability of all the five constructs measuring HRM practices and business performance were well above the recommended minimum of 0.70. While principal components extraction, was the technique used to test discriminant validity. Consequently, the underlying hypotheses were analyzed using regression analysis, where factors manifesting business performance were regressed on the key factors manifesting human resource management practices. Findings shows a positive relationships between business performance and the various human resource management practices (recruitment and selection (Beta=.615, p< 0.05); training and development (Beta=.488, p< 0.05); performance appraisal (Beta=.749, p< 0.05); and compensation and reward practice (Beta=.795, p< 0.05)). It is therefore recommended that, to sustain the high level of business performance and competitive advantage, Nigerian banks requires talented and skilled workers that must be engaged and maintained in the economic interest of the organization. In addition, selection system based on modern and needed test is essential to effect desirable selection, while comprehensive compensation mix augmented by an effective system of disbursement will play an important role in attracting the best candidate, shaping employee behaviour and performance outcomes and facilitating retention of employees. Theoretically, the model in this study provides predictive implications on business performance of Nigerian banks, given the activities of the various human resource management practices. Hence, to improve business performance, banks could control their human resource management programme.