Human resource development (HRD) practices and banking industry effectiveness

Abstract

Purpose The purpose of this paper is to examine the mediating role of employee competencies in the relationship between human resource development (HRD) practices and organizational effectiveness. Design/methodology/approach An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 550 employees of the selected banks. The validity of the model and hypotheses was tested using structural equation modeling. The reliability and validity of the dimensions are established through confirmatory factor analysis. Findings The results indicate that some HRD practices impact organizational effectiveness through their influence on employee competencies. The study further revealed that employee competencies mediate the relationship between HRD practices and organizational effectiveness. Research limitations/implications The research was undertaken in the banking industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors. Practical implications The findings of the study will help policymakers and management of banks in espousing suitable and well-articulated HRD practices to harness the competencies of employees and inordinately enhance organizational effectiveness. Originality/value This study extends the literature by empirically adducing evidence that employee competencies mediated the relationship between HRD practices and organizational effectiveness of the banking industry in Ghana.

A Review on Competency-Based Succession Planning at Higher Education Institution in Malaysia

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Reconsidering Individuals’ Competencies in Business Intelligence and Business Analytics Toward Process Effectiveness: Mediation-Moderation Model

“…However, in order to genuinely comprehend the competency, the individuals who involve in the process, the individual and collective skills employees should own, and the behaviours they should involve in, whether on an individual or collective level for process implementation; as employees' competencies found to be a vital resource of success and effectiveness (Wright et al, 2001;Clulow et al, 2007;Salman & Ganie, 2020). In fact, the individual competencies of employees were found to be a determinant of effectiveness (Wright et al, 1998), mediating the relationship between human resource development and effectiveness (Otoo, 2019); improving organizational effectiveness (Potnuru & Sahoo, 2016).…”

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Managerial Perception of Human Capital, Innovations, and Performance: Evidence from Banking Industry

“…An emerging body of work shows that human capital is a fundamental resource that helps organizations maintain their competitive advantage (Chowdhury, Schulz, Milner & Van De Voort, 2014;Sakalas & Liepe, 2013) and that it has a positive impact on business activities and results (Nguyen, 2020). Additionally, employees' competencies can be defined as "the capacity of an individual to be successful according to (in)formal criteria, to handle certain situations and complete a certain task" (Otoo, 2019). Besides, it was pointed out that improvements in human capital development and management might lead to improved organizational performance (Aledo Ruiz, Gutierrez, Martinez-Caro, & Cegarra-Navarro, 2017).…”