Human Resource Management and Microfinance Institutions Performance in Cameroon: Evidence Using a Structural Equation Modelling

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VI, June 2020 | ISSN 2454–6186

Human Resource Management and Microfinance Institutions Performance in Cameroon: Evidence Using a Structural Equation Modelling

Jean DOUANLA¹, Laure NDJIOZEFANGUE², Colette SIMO^3*
1,2Faculty of Economics and Management, University of Dschang, Cameroon
³The Dschang School of Economics and Management, University of Dschang, Cameroon
*Corresponding Author

Abstract: The aim of this article is to examine the effect of human resource management (HRM) practices on the social performance of micro finance institutions in Cameroon. The study population consist of microfinance institutions in Cameroon. For this purpose, a survey questionnaire was carried out on 20 microfinance institutions. The acquired survey data was evaluated via confirmatory factors analyses, reliability analyses and structural equation modelling. The empirical results show that there is a positive and significant link between HRM practices and the social performance in microfinance institutions in Cameroon.

Keywords: Social performance, second-tier microfinance institutions, Human resource management, SEM.

I. INTRODUCTION

The microfinance sector, despite the many problems that tarnish its reputation in Cameroon, is a sector in constant evolution. The gradual introduction of technological innovations in its management system as well as the multiplication of financial service providers are a constraint to which managers in this sector must submit. Winning market share and surviving in such an environment therefore requires an unparalleled spirit of creativity and adaptation, and human resource management is a major area that could make all the difference. Indeed, the advent of relationship marketing has totally changed the vision in management. It has also redirected the role of managers with respect to the organization’s human resources. The company’s human capital is now seen as a critical resource for achieving the organization’s objectives and a source of competitive advantage. Indeed, the implementation of an effective human organization contributes to the success and development of the organization. Moreover, it has been widely demonstrated that effective human resources management is increasingly a source of competitive advantage and added value for organizations (Saint-Onge et al., 2009). Thus, leaders wishing to see their company prosper must put people at the heart of their strategy.

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