THE BENEFITS OF HUMAN RESOURCES MANAGEMENT IN COMMERCIAL BANKS

Abstract

Vietnam is a developing country; human resources play a significant role. The booming industrial revolution of 4.0. technology is an essential factor in all fields. However, human resource management (HRM) of banking activities is a critical factor. Human resource management is the cause of success or failure in business operations. The primary goal of any organization is to use human resources to achieve its goals effectively. Therefore, the paper aims to determine the HRM factors influencing the bank service quality of commercial banks, and the sample had 800 staff of commercial banks. Data collected from December 2019 to May 2020. The paper’s findings have the HRM factor affecting the bank service quality of commercial banks with a significance level of 0.01.

Introduction

HRM is the entity that operates the system, controls the technology infrastructure, and executes the plans according to the prescribed process; Working with government agencies, partners, and customers, interacting with colleagues, managing the cash flow, and other resources under the management of commercial banks (Al-Daibat & Irtaimeh, 2012). The question is how to promote the role of the human element for development goals? That set for all organizations and enterprises that including commercial banks. Especially Vietnam has joined in the context of competition and international integration. The vital role of human resources in commercial banks is the following: First of all, human resources are factors that directly participate in the process of strategic planning, setting up plans, building business processes, codes of conduct, which are the foundation. It is an orientation for all activities in commercial banks. Secondly, human resources are the entity that operates the system, controls the technology infrastructure, and execute the plans according to the prescribed process. Human resources are working with government agencies, partners, and customers, interacting with colleagues, controlling the cash flow, and other resources under the management of commercial banks. Thirdly, human resources are the source of new ideas and initiatives to improve the business process, improving system performance, cost savings, and minimizing risks for commercial banks. Fourthly, human resources are the energy to gradually crystallize corporate cultural values and build and preserve commercial banks’ brands and identities. Finally, human resources can mobilize themselves in combination with the organization’s social resource development policy, continually changing to adapt to new environments and new technologies. Human resources are the successor to the sustainable development of commercial banks. HRM was affecting the bank service quality of commercial banks.

Methods of Research

The research process for human resource management impacting bank service quality.

In this study, the research process is using a combination of two research methods: qualitative research and quantitative research following:

• Qualitative research methods used in the preliminary research phase: studying secondary documents and group discussions to build an initial scale.

• Quantitative analysis used in the official research phase: testing scales and information collection techniques to measure human resource management.

• On the other hand, the researchers also had used SPSS 20.0 software to check, analyze, and evaluate data related to the research problem.

Quantitative research: the researchers use the complete questionnaire to conduct staff surveys at the commercial banks. Data collected from December 2019 to May 2020. Then, the authors conducted data analysis through SPSS 20.0 software with descriptive statistical tools, evaluated the reliability of the scale with Cronbach’s Alpha, explored factor analysis (EFA), and verified the security. Safety of the level, correlation analysis, multiple linear regression to test research hypotheses, and research models. We can see the details bellowed three 3 phases.

Phase 1: The paper used the quality methodology by surveying 40 experts who understand about human resource management to improve the questionnaire. The results interviewed 40 experts who showed that human resource management impacted factor.

Phase 2: The author’s team collects 800 employees working for banks from December 2019 to May 2020. It took 25 minutes to finish the survey among more than 70.000 staffs.

Phase 3: The CFA and model tested, and Structural Equation Modelling analyzed. The authors tested the research model through criteria such as P-value>5%; CMIN/df ≤ 2, some cases CMIN/df maybe ≤ 3.0 or<5.0 and GFI accepted when it is 0.8; RMSEA ≤ 0.08 (Hair et al., 1998).

Thus, through the three stages listed above, the authors have generalized the research process and tested the research model through the criteria.

Research Results

Human resource management affecting the bank service quality of commercial banks following. The benefits of human resources are enormous and not limited as other resources, because the dynamism and creativity of this element always exist and can make a big difference to the Credit institutions for development: Develop sound business strategies, excellent management skills, creativity in product development, utility services and continuous innovation. A credit institution possessing quality human resources will acquire these positive values, thereby creating high competitiveness and differentiation from other credit institutions.