Effect Of Human Resource Management Practices On The Performance Of Cooperative Bank Of Oromia Ethiopia

Author : Ruzen Mae Sarah D. Pascual
Publisher :
ISBN 13 :
Total Pages : 158 pages
Book Rating : 4.:/5 (989 download)

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Download or read book The Influence of Human Resource Management Practices of Opportunity Microfinance Bank to Operations Performance and Employee Satisfaction written by Ruzen Mae Sarah D. Pascual and published by . This book was released on 2005 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: Unlike other Commercial banks that specialize in providing services to the well to do, Opportunity Microfinance Bank (OMB) caters to the poor with the belief that the poor are bankable. OMD being the first Microfinance-Oriented Thrift Bank in the Philippines infuses the system of a regular Bank on a micro-credit scale that has two (2) components which are jobs generating and poverty alleviation. This noble purpose has earned the respect of President Gloria Macapagal Arroyo which she personally introduced this bank in July 24, 2001 during her First State of the Nation Address citing that "OMB has just opened for the poor entrepreneurs to have financial access without collateral." Added to this, the nature of the business provides training, counsel and transformation activities to improve the lives of its clients. The challenge to prove bank's profitability, sustainability as shown in the transformation of peoples' lives and personalize service offered to the clients call for employees who are committed to the poor (regardless of their position in the organization). Each of them plays a vital role to fulfill its benevolent corporate mission. Strong support system from within should be in place for the organization to go on a nationwide development operation in the near future. The Human Resource Section plays a critical function in assisting the core business of the departments as they execute their goals and strategies. Having this premise, the Human Resource Practitioners should not only understand the day-to-day business operations but the people management so that its programs and strategies will fit to the needs of the organization and its employees. This study examines the cross-sectional influence of Human Resource Management Practices to the Operations Performance and Employee Satisfaction specifically focus on the four (4) S of Human Resource Services namely: 1) Staffing 2) Skill Training 3) System on Performance Evaluation 4) Salary and Benefit Administration. Primary and Secondary data were gathered to investigate various facet of the problems to arrive at a more objective perspective on current Human Resource Management Practices. Based on the findings, the Human Resource Management Practices were confirmed to have influenced to Operations Performance and Employee Satisfaction. For Operations Performance, the respondents candidly associated Staffing Practices (3.05) as the most influential factor among the 4s of HRM Practices and the most active HRM function. Upon detailing the specific practices, System on Performance Evaluation also has a strong influence in the business operations, but its influence was more on a negative impact. Correlating the survey opinion of the respondents to other secondary data revealed that there was a low support system on other HRM Practices. Specifically, the formal procedure on Performance Evaluation and the reward system are not link to the 2 most influential HRM practices to Opearations Performance. Inspite of this, the respondents showed positive perception, as they understand that the company is in its initial years of existence. This is validated on the result of the Employee Satisfaction. Although Salary and Benefit Administration are practice regularly but in terms of influence, the respondents still considered Skill Training as the most influential to employee satisfaction. Upon reviewing the demographic profile, most of the respondents are field personnel. Many of these respondents revealed that there is high probability if field personnel lack skills in dealing with the clients. Their ineffectiveness has direct impact on their interpresonal relationship to clients and collection payment thus, leading to low employee morale. The study also revealed that the respondents prefer to prove their competence by acquiring skills before expecting rewards. Salary and Benefit Administration Practices was ranked 2nd in priority based on their perceived suggestion to improve Employee Satisfaction. The findings shall be used to improve the effectiveness and efficiency of Human Resource Unit consistent to the standard set by the company, strengthen employees' competitiveness as they face the challenges in the microfinance industry, and boost Human Resource credibility not just on the administrative scale but also to become a strategic business partner to the Management of OMB.