Impact of Human Resource Development Practices on Employee Competencies
Keywords:
HRD practices, Employee competencies, Banking industry, SEMAbstract
The aim of this paper is to examine the impact of human resource development practices on employee competencies. An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 500 employees of the selected branches of GCB bank Ltd. The validity of the model and hypotheses were tested using structural equation modeling (SEM). The reliability and validity of the dimensions are established through confirmatory factor analysis. The results indicate that some human resource development practices have a significantly impact on employee competencies. However, performance appraisal and compensation did not impact employee competencies of the firm studied. The research was undertaken in the banking industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors and international environment. The findings of the study will help the board and management of GCB Bank Ltd in espousing suitable and well-articulated HRD practices which will improve the competence of employees and enhance organizational effectiveness. This study contributes to the human resource development literature, integrating HRD practices into a comprehensive research model that impacts employee competencies.
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