IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: EVIDENCE FROM THE INDIAN BANKING INDUSTRY

Abstract

The present study examines the impact of Human Resource Management (HRM) practices on organizational performance in the Indian banking industry, with a comparative focus on public and private sector banks in Maharashtra. The study is based on primary data collected from 180 employees across major cities including Mumbai, Pune, Nagpur, and Nashik. A quantitative research approach was adopted using structured questionnaires, and data were analyzed through percentage analysis, correlation, and regression techniques. The findings reveal that private sector banks demonstrate more effective HRM practices, particularly in employee engagement, training and development, and performance appraisal, leading to superior organizational performance in terms of productivity, service quality, innovation, and customer satisfaction. The correlation results indicate a strong positive relationship between HRM practices and organizational performance, while regression analysis shows that HRM practices explain 64% of the variance in performance, with employee engagement emerging as the most influential factor. The study concludes that strategic HRM practices are essential for enhancing organizational effectiveness and competitiveness in the banking sector, and highlights the need for public sector banks to strengthen their HR strategies.