Comparative significance of human resource management practices on banking financial performance with analytic hierarchy process

• Main Author: Quang Linh Huynh
• Format: Article
• Language: English
• Published: Growing Science 2020-09-01
• Series: Accounting
• Online Access: http://www.growingscience.com/ac/Vol6/ac_2020_115.pdf

Banking financial performance (BFP) has been recognized as a causation of human resource management (HRM). The causal linkages from HRM practices to BFP are different. Nevertheless, almost none of the studies has ranked and compared this difference among the practices of HRM in enhancing BFP. The current study applied an analytic hierarchy process to rank the relative importance of HRM practices. For the robustness of the results from the process of analytic hierarchy, the current work employed an analytic hierarchy process to reassess the relatively important levels of HRM practices on BFP as well. The findings are robust across both of the techniques. The practice of training and development (TT) plays the most critical part in BFP, followed by the practice of performance evaluation (PN) and the practice of reward system (RM) as the third most important. In contrast, the practice of recruitment and selection (RN) takes the least important position in BFP. Moreover, the findings also provide statistical evidence on the causal links from the practices of HRM to BFP. This work makes some contribution to how managers should decide on HRM practices in order to obtain the best possible BFP.