The Impact Of Human Resource Management Practices On Employees Performance Of Microfinance Banks In Jos, Plateau State.

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue II, February 2022 | ISSN 2454–6186

The Impact Of Human Resource Management Practices On Employees Performance Of Microfinance Banks In Jos, Plateau State.

Adamu Nasiru, Oki, E. U., Reuel J. Dakung
University of Jos, Nigeria

ABSTRACT
Human Resource Management practices have been studied extensively among banking sector and small and medium enterprises, but no research so far conducted on the microfinance banks particularly in plateau state, especially with a focus on the impact of HRM practices. Therefore, the main objectives of this study was to; examine the impact of Human Resource Management practices on employee performance of microfinance Banks in Jos. The study was anchored on human capital theory and supported by resource-based theory and Maslow’s need hierarchy theory. The study adopted descriptive research design to establish the problem that was under investigation. The target population of the study was 12 Microfinance banks operating in Jos, Plateau State. Stratified sampling technique was adopted to select the sample of the study due to homogeneity of the population. Structured questionnaires were instruments of data collection used due to their effectiveness of capturing respondents. Data was analyzed using Statistical Package for Social Sciences (SPSS version 23) software using descriptive and inferential statistics. t-test, Pearson correlation as well as multiple regression analysis used to analyze the data. The T-test was used to test the hypothesis of the study. The analyzed data was presented in form of tables. It was revealed that Human Resource Management Practices had a positive relationship on performance of Employees in Microfinance Banks in Jos despite small extent of adoption. The study concludes that unless microfinance banks realized the value of recruiting highly qualified workers, review compensation policies, adequately training of it staff, appraising the performance of the employees as well as ensuring proper career management into the system and assessing labour market conditions before compensating workers, gaining competitiveness will be a herculean task. Therefore, the study recommends that Microfinance banks should allocate adequate funds to recruit competent staff, train workers, form proper performance appraisal policies, implement change and review compensation policies for them to remain competitive.

Keywords: Performance, Human resource management, Microfinance banks, Recruitment

1.0 INTRODUCTION

The greatest challenge that faces organization irrespective of its size, nature of ownership and control today is mostly attributed to the sourcing, utilization and development of the single most needing resource at its disposal-the human resources. Human resource is the most critical factor in every organization which is recognized as the most important asset possessed by the progressive organizations, and perhaps the most strategic and critical determinant of growth of any organization. This is especially true for service-oriented organizations like banks, where the improvement in service have to be made to meet the rising expectations of the society. Organizations including banks exist for the people and their effectiveness depends on the behavior and the performance of people constituting them.
Performance is what the organization hires one to do, and do well (Campbell et al., 1993, p. 40). Employee job performance is about the timeliness, effectiveness and efficiency in completion of tasks set out by an employer to the employee. Productive workers are what every organization is aspiring to obtain as its best asset. They serve as the lifeblood of the business. Monitoring employee performance is a matter of setting the right performance index; based on the type of work they do as well as the responsibilities and tasks they perform to facilitate the organizations’ continuous and successful operations. The quality, quantity, teamwork, dependability and attendance of employees at work are some of the essential indicators of their performance as well as major bases for rewards or disciplinary actions. To form a result oriented, productive and efficient workforce, for any organization, proper HRM policies and practices are necessary. Satisfied and efficient human resources are the key factors for any organization to face the challenges of today’s ever-changing environment. Moreover, the growth, development and expansion of the organization are highly dependent on their performance. There are various relevant HRM practices that should support the organization’s commitments in terms of analyzing and designing jobs and evaluating the employees performance (performance appraisal), determining how many employees with specific knowledge and skills are needed and to attract and choose potential employees (recruiting and selection), teaching employees how to perform their jobs and preparing them for the future (training and development), rewarding employees (compensation), and creating a positive work environment (career management). An organization performs best when all of these practices are managed effectively. With effective HRM, employees and customers tend to be more satisfied, and this affect positively their performance which in turn make them to be more innovative, have greater productivity, and develop a more favourable reputation in the community.

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