The Impact Of Hrm Practices On Organisational Performance: The Case Study Of Sacco Bank

ABSTRACT

This. research looked at the impact of HRM practices on organisational perfonnance in

· the case of some rural banks in the Ashanti region of Ghana. Research over the years, has

established significantly a positive correlation between HR practices and organisational

performance. The assumption underpin.rung the practice of HRM is that people are the

organisation's key resource and organisational performance largely depends on them.

Therefore, if an appropriate range of HR policies and processes are developed. and

·implemented effectively, HR wiU make a substantial impact- on. organisational

performance. However, the · majority of the cold. The objectives of the study were to

examine the general HR · practices and programmes of the rural banks, evaluate the

perceptions of employees on HR practices and programmes of the rural banks and

establish the impact of properly managing hum.an resources on the perfonnance of these

rural banks. This study surveyed four branches each of four rural bank.s with total

respondents of 150 made up of 40 managerial employees and 110 non-managerial

eriiploy~es. The re~ponse rate was 98.66% ~hich represented 40. managerial employees

. .

· and 108 non-managerial employees. The study employed two sets · of 8 and 10 HR

practices categorised questionnaires for managers and employees respectively. Purposive

and convenience sampling techniques were applied to managers and employees

respectively. The findings of the study revealed that HR practices are improperly planned;

implemented and managed by non-HR experts and that the practices,. pr9gran1mes arid

policies of these rural banks are lowly perceived by their employees. The· study also

showed that ·the en6nnous benefits of properly managing human resources are lost to

these rural banks. It was recommended that rural banks should dedicate a department to

HR for the proper management of human resources through whom competitive advantage

could be created.