Relationship between People Management Practices and Organizational Effectiveness - Evidence from Retail Banks.

G. Hima Bindu

Abstract


There has been a long standing interest in the study of human resource management practices among the researchers. This interest is partly because of the hypothesized relationship that exists between these practices and organizational phenomena such as organizational effectiveness. Research on contribution of people management practices to organizational effectiveness outcomes such as profitability and productivity has been a popular research study in the circles of management practitioners. This paper explores to identify the influence of people management practices on perceived organizational effectiveness. The organizations taken into consideration are select branches of retail banks based in Hyderabad. The paper empirically examines the impact of perceived quality of people management practices on perceived organizational effectiveness. The data collected from 195 employees of retail banks was analyzed for reliability (Chronbach, 1952) and found to be quite consistent.  The data was then subjected to chi-square analysis to investigate the statistical association between the variables, further the data was subjected to correlation analysis and multiple regression analysis to identify the strength and direction of association between the variables and to identify the causal linkages between the variables respectively. The results establish that quality of people management practices impact perceived organizational effectiveness.


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