“The Nexus Between HRM Practices and Employee Outcomes: A Comparative Study of Prime Bank PLC and BRAC Bank PLC”

Abstract

This study examines the relationship between Human Resource Management (HRM) practices and employee outcomes in private commercial banks in Bangladesh, with a comparative study on Prime Bank PLC and BRAC Bank PLC. Anchored in the Ability–Motivation–Opportunity (AMO) framework and the Resource-Based View (RBV), the study conceptualises HRM practices as formative configurations rather than reflective constructs. In this framework, recruitment and selection, training and development, performance appraisal, and compensation and benefits are treated as complementary practices that jointly constitute the HRM system within banking organisations. Using primary survey data collected from 200 employees,100 from each bank, the study adopts a quantitative, cross-sectional research design. Empirical analysis employs descriptive statistics to profile HRM practices and employee outcomes, followed by independent sample t-tests to assess inter-bank differences. Pearson correlation analysis and multivariate regression techniques are used to examine the relationships between HRM practices and three key employee outcomes: job satisfaction, retention intention, and self-rated performance. In addition, mediation and moderation analyses are conducted to test the intervening role of employee motivation and the contextual role of organisational culture. The findings indicate that HRM practices and employee outcomes are largely similar across the two banks, with only limited statistically significant differences observed. Among the HRM dimensions, training quality emerges as the sole area showing a significant mean difference between Prime Bank and BRAC Bank. Regression results reveal weak and mostly statistically insignificant direct relationships between HRM practices and employee outcomes. Further analysis shows that employee motivation does not mediate these relationships, while organisational culture does not significantly moderate the effects of HRM practices on employee outcomes. The study contributes to the HRM literature by empirically demonstrating the limits of formal HRM systems as standalone drivers of employee outcomes in highly standardised and regulated banking environments. It offers implications for future research and refinement of HR policy in the context of Bangladesh’s private banking sector.