Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.

The paper aims to examine the influence of human resource management (HRM) practices on bank efficiency using Malmquist index of total factor productivity. The model comprises HRM index that represents the quality of HRM practices. The results are decomposed into three efficiency scores, namely, tec...

Full description

Bibliographic Details
Main Authors: Abdul Kadar Muhammad Masum, Md Abul Kalam Azad, Kazi Enamul Hoque, Loo-See Beh
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2015-01-01
Series:PLoS ONE
Online Access:http://europepmc.org/articles/PMC4519247?pdf=render
id doaj-ef3e1ac449d540cdae615864701d5561
record_format Article
spelling doaj-ef3e1ac449d540cdae615864701d55612020-11-25T02:42:38ZengPublic Library of Science (PLoS)PLoS ONE1932-62032015-01-01107e012101710.1371/journal.pone.0121017Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.Abdul Kadar Muhammad MasumMd Abul Kalam AzadKazi Enamul HoqueLoo-See BehThe paper aims to examine the influence of human resource management (HRM) practices on bank efficiency using Malmquist index of total factor productivity. The model comprises HRM index that represents the quality of HRM practices. The results are decomposed into three efficiency scores, namely, technical efficiency, pure efficiency, and scale efficiency. In this study, panel data for 44 banks in Bangladesh are used for the period 2008-2013. This paper reveals that foreign banks are ahead in converting the influence of HRM practices into efficiency scores (0.946>0.833). On the other hand, domestic banks performed better than foreign banks in terms of pure efficiency and scale efficiency. But, in terms of technical efficiency, the domestic banks are regressed by 6.7% annually whereas foreign banks are progressed with a yearly value of 5.8%. The results are robust, because the Mann-Whitney test and Kruskall-Wallis test (non-parametric tests) also confirm the same results. This study emphasizes HRM practices in the banking industry to ensure efficiency in the long-term scenario. Domestic banks are suggested to ensure continuous development in HRM practices in order to compete with foreign banks.http://europepmc.org/articles/PMC4519247?pdf=render
collection DOAJ
language English
format Article
sources DOAJ
author Abdul Kadar Muhammad Masum
Md Abul Kalam Azad
Kazi Enamul Hoque
Loo-See Beh
spellingShingle Abdul Kadar Muhammad Masum
Md Abul Kalam Azad
Kazi Enamul Hoque
Loo-See Beh
Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.
PLoS ONE
author_facet Abdul Kadar Muhammad Masum
Md Abul Kalam Azad
Kazi Enamul Hoque
Loo-See Beh
author_sort Abdul Kadar Muhammad Masum
title Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.
title_short Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.
title_full Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.
title_fullStr Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.
title_full_unstemmed Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices.
title_sort domestic banks in bangladesh could ensure efficiency by improving human resource management practices.
publisher Public Library of Science (PLoS)
series PLoS ONE
issn 1932-6203
publishDate 2015-01-01
description The paper aims to examine the influence of human resource management (HRM) practices on bank efficiency using Malmquist index of total factor productivity. The model comprises HRM index that represents the quality of HRM practices. The results are decomposed into three efficiency scores, namely, technical efficiency, pure efficiency, and scale efficiency. In this study, panel data for 44 banks in Bangladesh are used for the period 2008-2013. This paper reveals that foreign banks are ahead in converting the influence of HRM practices into efficiency scores (0.946>0.833). On the other hand, domestic banks performed better than foreign banks in terms of pure efficiency and scale efficiency. But, in terms of technical efficiency, the domestic banks are regressed by 6.7% annually whereas foreign banks are progressed with a yearly value of 5.8%. The results are robust, because the Mann-Whitney test and Kruskall-Wallis test (non-parametric tests) also confirm the same results. This study emphasizes HRM practices in the banking industry to ensure efficiency in the long-term scenario. Domestic banks are suggested to ensure continuous development in HRM practices in order to compete with foreign banks.
url http://europepmc.org/articles/PMC4519247?pdf=render
work_keys_str_mv AT abdulkadarmuhammadmasum domesticbanksinbangladeshcouldensureefficiencybyimprovinghumanresourcemanagementpractices
AT mdabulkalamazad domesticbanksinbangladeshcouldensureefficiencybyimprovinghumanresourcemanagementpractices
AT kazienamulhoque domesticbanksinbangladeshcouldensureefficiencybyimprovinghumanresourcemanagementpractices
AT looseebeh domesticbanksinbangladeshcouldensureefficiencybyimprovinghumanresourcemanagementpractices
_version_ 1724772499249430528