Organizational Practices, Devolution And Human Resource Management (HRM) Effectiveness Of Private Commercial Banks (PCBs) Of Bangladesh
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Date
2015-09
Authors
Rimi, Nadia Newaz
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Abstract
The present study aims to examine the relationship between organizational practices (top management support, strategic integration, HR competency, e-HRM, HR line collaboration and management incentive system) and HRM effectiveness (technical and strategic) and how devolution mediates that relationship. Moreover, the moderating role of HR management support in the relationship between devolution and HRM effectiveness is also sought. This study followed cross-sectional research design in which questionnaire survey method was employed to collect data. Data for this study included line managersā perceptions of the link between organizational practices (top management support, strategic integration, HR competency, e-HRM, HR-line collaboration, and management incentive system), devolution, HR management support and HRM effectiveness in the private commercial banks (PCBs) of Bangladesh. The population of the study comprised of all the line managers working in the PCBs of Bangladesh. The sample was taken using judgmental sampling technique, a part of the purposive sampling of nonprobability sampling design, because of the lack of a complete list of line managers. A total of 365 useable questionnaires were found with a response rate of 45.62%. Partial Least Square (PLS) second generation structural equation modelling (SEM) software was employed to test the hypothesized relationship. The result of the present study revealed that three organizational practices (HR competency, e-HRM and HR-line collaboration) have significant influence on HRM effectiveness in both aspects (technical and strategic). Other three organizational practices (top
management support, strategic integration and management incentive system) have no significant relationship with both technical and strategic HRM effectiveness. Out of six organizational practices, four (top management support, HR competency, e-HRM and HR-line collaboration) are found directly influencing devolution while, other two (strategic integration and management incentive system) have no direct relationship with devolution. The direct effect of devolution on HRM effectiveness (technical and strategic) was found significant. In addition, the mediation test showed that devolution played a positive mediating role in the relationship between three organizational practices (top management support, e-HRM and HR-line collaboration) and HRM effectiveness. Devolution as a mediator between other organizational practices (HR competency, strategic integration and management incentive system) and HRM effectiveness was found insignificant. Moreover, the moderating effect of HR management support in enhancing the relationship between devolution and HRM effectiveness was also found insignificant. Finally, the present study provided several implications and recommendation to existing PCBs management, regulatory body and policy makers, aiming to improve their efforts in HRM effectiveness in both technical and strategic aspects.
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Keywords
Human Resource Management (HRM) , Private Commercial Banks (PCBs)