MN7234ES - People and Organizations

  Introduction In the banking industry, staff are the front line ambassadors of service quality. Customer satisfaction, which is a key driver of loyalty and profitability, depends a lot on bank staff's effective performance of their roles. Human Resource Management or HRM plays a very important role in shaping employee behavior, engagement, and performance. Linking employees' KPIs to customer satisfaction allows banks to align HR practices, such as training, performance appraisal, and rewards, with organizational goals so that employees know how their work will directly link to customer experience (Kim & Yeo, 2024). . Traditional employee KPIs in banks have focused on measurable, often operational targets, such as processing accuracy, sale of financial products, and compliance with codes of conduct. While these are critical, HRM best practice suggests that KPIs should extend to customer centered behaviors: responsiveness, problem-solving, and quality of interaction. Resea...

Introduction Some of the common reasons for extended hours of working in the banking sector include tight deadlines, customer demands, and regulatory requirements. It is obvious that a heavy workload helps organizational goals be met through overtime working hours, but excessive work hours can be harmful and lead to stress, burnout, and low productivity. According to Armstrong (2020), from the HRM viewpoint, overtime needs to be managed so as not to impair the wellbeing of employees and also not hamper operational efficiency. The human resource management in banks needs to create a proper balance between the demands of the organization and the welfare of their employees. Overtime policy is one essential element of striking this balance by regulating work hours, ensuring fairness in compensation, and preventing the fatigue of the workforce. Dessler (2019) suggests that the HR department can offer a structured approach to overtime policies to keep a check on excessive work hours and ...

  Introduction To measure the organization performances, employee engagement is a very important component. This is specially occured in the banking industry, where the frontline employees have to directly deal with the customers and influence their satisfaction and loyalty. In Sri Lanka, rural bank branches have special challenges such as working in small teams, having fewer resources, and being far away from the main office. Despite these constraints, effective engagement strategies can help improve motivation, productivity, and employee retention, says Kumar & Sharma (2020). This blog deliberates on how HR practices strengthen engagement in a rural banking setup. Most of the rural branch teams consist of a few staff members, including tellers, security personnel, and support staff. The HR functions are not physically present, and therefore the branch manager has to adopt some informal strategies for engagement. Local knowledge and cultural awareness can be used to develop ...

Introduction Human Resource Management is the crucial function that ensures the correct people are in the right jobs and roles in a bank. In Sri Lanka, the banking industry is part of a competitive financial sector where skilled staffing has become a key enabler for efficiency, regulatory compliance, and customer satisfaction. Effective talent acquisition is not a recruitment exercise but reflects strategic HRM aimed at aligning workforce planning with organizational goals. From an HRM perspective, recruitment in Sri Lankan banks involves both strategic and operational functions. Strategic HRM places much emphasis on making sure that talent acquisition is in line with the bank's long-term objectives. For example, Commercial Bank of Ceylon PLC recruits trainees and develops them into leadership positions, reflecting HRM's role in succession planning and human capital development (Commercial Bank, 2025). Similarly, HNB PLC's HR transformation shows how HRM integrates perfor...

  Introduction At present, the banking sector is experiencing rapid digital transformation which is driven by innovations in fintech, automation, and artificial intelligence. These technologies are changing job roles, work processes, and the way banks deals with the customers  in their daily business activities . Therefore, Human resource management has become very crucial to ensure that workers develop the required digital competencies to remain productive within a technology driven environment. An effective digital upskilling approach enhances not just the capability of the workforce but also guarantees organizational competitiveness and resilience  (Bondarouk, Harms & Lepak, 2019). Digital upskilling in banks is about a methodical way of workforce development. HR functions are the most important in identifying skill gaps, designing bespoke learning programs, and integrating continuous professional development into career pathways. Noe, Clarke & Klein, 2014) F...

  Introduction Good ethical behavior is a key part of good management in banks because public trust and following the rules are important for the bank’s reputation and success.Bank employees are often faced with situations that pose ethical dilemmas, such as conflicts of interest, confidentiality breaches, or pressure to meet financial targets at the risk of compromising ethics.Consequently, human resource management (HRM) assumes a critical role in developing and enforcing policies that encourage ethical behaviour and facilitate secure whistleblowing practices (Kaptein, 2011). The level of intricacy in the operations at banks also creates several ethical tensions, which should call for formalised HR interventions. HRM functions, therefore, go beyond recruitment and training to the institutionalisation of ethical norms through codes of conduct, ethics training, and transparent mechanisms of communication, as supported by Kish-Gephart, Harrison & Treviño 2010.  These polici...