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Strategic Human Resource Management (SHRM) Practices and Its Effect on Financial Performance: Evidence from Some Selected Scheduled Private Commercial Banks in Bangladesh

Received: 19 June 2013     Published: 10 July 2013
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Abstract

Formulation and execution of Strategic Human Resource Management (SHRM) practices and its effect on perceived financial performance of any organization is a burning issue in the globalized competitive business era. This study aims to find out the relationship between SHRM and financial performance to ensure the sustainability and competitive advantage of the selected scheduled private commercial banks in Bangladesh. The research has been conducted on managers as sample of some private commercial banks during the period of January to November 2012 to collect the primary data. To evaluate the financial performance researchers have used annual reports of 2011 and 2012, journals, web sites etc. as secondary source. Survey research findings indicate that strategic integration and development of HRM were practiced to a full extent in the sampled firms. From the cross sectional analysis, the financial performance indicators show that the capital adequacy was mostly at satisfactory level compared with eh industry average. The quality of assets loan varies from bank to bank but most of them are performing at the desired level. Management efficiency was out-performing the standard in most of the cases. The profitability indicators ratio was also better than the average of private commercial banks. The result presented in this study suggests practicing intensive SHRM so that improved financial performance can be asserted to sustain in the competitive environment.

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 3)
DOI 10.11648/j.ijefm.20130103.14
Page(s) 151-158
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

SHRM, Financial Performance, Private Commercial Banks, Bangladesh

References
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Cite This Article
  • APA Style

    Tawhida Khatoon, Muhammad Ruhul Amin, Md. Moyazzem Hossain. (2013). Strategic Human Resource Management (SHRM) Practices and Its Effect on Financial Performance: Evidence from Some Selected Scheduled Private Commercial Banks in Bangladesh. International Journal of Economics, Finance and Management Sciences, 1(3), 151-158. https://doi.org/10.11648/j.ijefm.20130103.14

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    ACS Style

    Tawhida Khatoon; Muhammad Ruhul Amin; Md. Moyazzem Hossain. Strategic Human Resource Management (SHRM) Practices and Its Effect on Financial Performance: Evidence from Some Selected Scheduled Private Commercial Banks in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2013, 1(3), 151-158. doi: 10.11648/j.ijefm.20130103.14

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    AMA Style

    Tawhida Khatoon, Muhammad Ruhul Amin, Md. Moyazzem Hossain. Strategic Human Resource Management (SHRM) Practices and Its Effect on Financial Performance: Evidence from Some Selected Scheduled Private Commercial Banks in Bangladesh. Int J Econ Finance Manag Sci. 2013;1(3):151-158. doi: 10.11648/j.ijefm.20130103.14

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  • @article{10.11648/j.ijefm.20130103.14,
      author = {Tawhida Khatoon and Muhammad Ruhul Amin and Md. Moyazzem Hossain},
      title = {Strategic Human Resource Management (SHRM) Practices and Its Effect on Financial Performance: Evidence from Some Selected Scheduled Private Commercial Banks in Bangladesh},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {1},
      number = {3},
      pages = {151-158},
      doi = {10.11648/j.ijefm.20130103.14},
      url = {https://doi.org/10.11648/j.ijefm.20130103.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130103.14},
      abstract = {Formulation and execution of Strategic Human Resource Management (SHRM) practices and its effect on perceived financial performance of any organization is a burning issue in the globalized competitive business era. This study aims to find out the relationship between SHRM and financial performance to ensure the sustainability and competitive advantage of the selected scheduled private commercial banks in Bangladesh. The research has been conducted on managers as sample of some private commercial banks during the period of January to November 2012 to collect the primary data. To evaluate the financial performance researchers have used annual reports of 2011 and 2012, journals, web sites etc. as secondary source. Survey research findings indicate that strategic integration and development of HRM were practiced to a full extent in the sampled firms. From the cross sectional analysis, the financial performance indicators show that the capital adequacy was mostly at satisfactory level compared with eh industry average. The quality of assets loan varies from bank to bank but most of them are performing at the desired level. Management efficiency was out-performing the standard in most of the cases. The profitability indicators ratio was also better than the average of private commercial banks. The result presented in this study suggests practicing intensive SHRM so that improved financial performance can be asserted to sustain in the competitive environment.},
     year = {2013}
    }
    

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    AU  - Tawhida Khatoon
    AU  - Muhammad Ruhul Amin
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    JF  - International Journal of Economics, Finance and Management Sciences
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    UR  - https://doi.org/10.11648/j.ijefm.20130103.14
    AB  - Formulation and execution of Strategic Human Resource Management (SHRM) practices and its effect on perceived financial performance of any organization is a burning issue in the globalized competitive business era. This study aims to find out the relationship between SHRM and financial performance to ensure the sustainability and competitive advantage of the selected scheduled private commercial banks in Bangladesh. The research has been conducted on managers as sample of some private commercial banks during the period of January to November 2012 to collect the primary data. To evaluate the financial performance researchers have used annual reports of 2011 and 2012, journals, web sites etc. as secondary source. Survey research findings indicate that strategic integration and development of HRM were practiced to a full extent in the sampled firms. From the cross sectional analysis, the financial performance indicators show that the capital adequacy was mostly at satisfactory level compared with eh industry average. The quality of assets loan varies from bank to bank but most of them are performing at the desired level. Management efficiency was out-performing the standard in most of the cases. The profitability indicators ratio was also better than the average of private commercial banks. The result presented in this study suggests practicing intensive SHRM so that improved financial performance can be asserted to sustain in the competitive environment.
    VL  - 1
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    ER  - 

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Author Information
  • Department of Finance, Faculty of Business, BUBT, Dhaka, Bangladesh

  • Department of Management, Faculty of Business, BUBT, Dhaka, Bangladesh

  • Department of Statistics, Islamic University, Kushtia, Bangladesh

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