HRM Practices in Banking Sector of Pakistan: Case of National Bank of Pakistan

Human Resource Management and Its System

Though previous studies have reported increased importance of HRM, still there seems to exist a wide research and practice gap in HR which may be a result of difference in interest or due to the fragmented nature of the field of HRM (Deadrick and Gibson, 2007, p. 131). Armstrong (2009) defines HRM as “a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations”. It aims at achieving organizational success through an efficient management of individuals employed in an organization. According to Fey et al (2009, p. 690), human capital is an indispensable input and can serve as the most important source of competitive advantage for an organization. Thus, optimal utilization of human resources can help fulfill organizational goals. The domain of HRM involves practices and managerial decisions that have a direct impact on the employees of that organization and hence could be considered as a system of practices that provides employees with expertise, information, and enthusiasm to be involved in decision making, which when used as a fundamental part of business strategy can help utilize competent workforce to ensure sustainable competitive advantage (Luque et al., 2012, p. 4).A number of researchers have emphasized that it is the complete system of HRM and not just any one individual practice which serves as a potential source of success.