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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...

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Detalles Bibliográficos
Autores principales: Muhammad Masum, Abdul Kadar, Azad, Md. Abul Kalam, Hoque, Kazi Enamul, Beh, Loo-See
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2015
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4519247/
https://www.ncbi.nlm.nih.gov/pubmed/26221727
http://dx.doi.org/10.1371/journal.pone.0121017
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author Muhammad Masum, Abdul Kadar
Azad, Md. Abul Kalam
Hoque, Kazi Enamul
Beh, Loo-See
author_facet Muhammad Masum, Abdul Kadar
Azad, Md. Abul Kalam
Hoque, Kazi Enamul
Beh, Loo-See
author_sort Muhammad Masum, Abdul Kadar
collection PubMed
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.
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spelling pubmed-45192472015-07-31 Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices Muhammad Masum, Abdul Kadar Azad, Md. Abul Kalam Hoque, Kazi Enamul Beh, Loo-See PLoS One Research Article 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. Public Library of Science 2015-07-29 /pmc/articles/PMC4519247/ /pubmed/26221727 http://dx.doi.org/10.1371/journal.pone.0121017 Text en © 2015 Muhammad Masum et al http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are properly credited.
spellingShingle Research Article
Muhammad Masum, Abdul Kadar
Azad, Md. Abul Kalam
Hoque, Kazi Enamul
Beh, Loo-See
Domestic Banks in Bangladesh Could Ensure Efficiency by Improving Human Resource Management Practices
title 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_short 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
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4519247/
https://www.ncbi.nlm.nih.gov/pubmed/26221727
http://dx.doi.org/10.1371/journal.pone.0121017
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