Investigating human resource management on the financial performance of Isfahan Melli Bank branches based on the Harvard model

Dissertation to receive Master degree (M.A)

Financial orientation

Winter 2011

Abstract:

In this research under the title « Investigating human resource management on the financial performance of Melli Bank branches  » which took place in the branches of National Bank of Isfahan city, it has been tried to analyze the process of human resource management and financial performance and the relationship between these two important things. Situational factors, stakeholder groups, human resource policies, human resource outcomes, and human resource achievements are each completely  have been described and the relationship of each with the bank's financial variables has been examined. . To test the hypotheses of the research, three questionnaires (human resources, financial performance of the current situation, financial performance of the desired situation), each of which contains twenty-three questions, were prepared and distributed among the branch managers. Likert scale (Likert spectrum [1]) was used to measure. The data of the aforementioned questionnaires were entered into the spss software environment, and after the data editing operation, especially by using Cronbach's alpha, these data were entered into the Lizrel software environment to test the model and were tested around the research hypotheses in the form of a single model, the results showed that the correct use of human resource management methods has an impact on the financial performance of the branches and causes improvement and increase in performance. Also, all the multiple goodness of fit criteria of the research model indicate a very good fit of the final model with the data collected from the branches of National Bank of Shahr Isfahan. Also, based on the Kolmogorov test – Smirnov [2] All the factors in the studied sample follow the normal distribution because the significance level is more than 5%. Also, the results of the correlation test between the independent variables (Harvard model variables) and the dependent variable (financial performance variables) indicate the confirmation of all research hypotheses. Considering that the significant levels of the effect of all independent variables and the width from the origin is less than 5% error, therefore, the mentioned variables are present in the model and the regression model is presented with the presence of all independent variables. The presented results indicate the confirmation of the effect of human resource management components (as independent variables) on the dependent variable (financial performance). Keywords: human resource management, performance evaluation, financial performance, National Bank.

  For more than two decades, a deep question has been occupying the minds of managers and those interested in the field of human resources in organizations: What is the relationship between human resources and company performance? Brian Becker calls the missing link between the two the black box, and in his research, he has always sought to discover it. He considers human resources as a type of architecture that is composed of human resource systems, human resource operations, human resource competencies, and employee behavior, all of which reflect the development of the organization's strategic human capital management. The contribution of human resources performance in the company's performance requires the formulation and implementation of the human resources performance measurement mechanism. The design and implementation of a human resources measurement system, which is referred to as a balanced evaluation of human resources, provides an important leverage to companies so that they can be more effective in designing and implementing the human resources strategy. The competitive environment of businesses is rapidly becoming global. Every day, more and more companies enter international markets through exporting their products and building factories in other countries and forming partnerships and cooperation with foreign companies. Researchers and managers of advanced societies and organizations have come to the conclusion that the most important effective factor in the changes and growth and development of organizations is planning, training and improving the capabilities of human resources. Human resources are the fundamental capital of the organization. and the origin of any transformation and innovation are considered in them. Man is a changeable being with countless potential transformations and abilities. These abilities must be evaluated and put into practice under favorable educational conditions. From the organizational point of view, evaluating the performance of employees is a necessary and undeniable task in the field of measuring the progress of people in the path of achieving organizational goals and missions.Based on this, human resource management today is considered as one of the most important knowledge required in organizations and the skill set of managers.

Chapter One:

Research Overview

Today we are witnessing fundamental and rapid changes in societies and organizations. These changes are in different dimensions of cultural, economic, social, political, ability and interaction of humans and technology. Rapid and effective changes are a big obstacle for predicting the future. But this hard work must be undertaken by effective organizations. Without proper forecasting, organizations' ability to plan to meet future needs is limited. Therefore, in order to survive and compete effectively and provide basic services, they must anticipate the basic issues of challenges and opportunities that organizations will face in the future, and this is a truth for management, especially in the field of human resources in the future. The most important task of the manager is to guide the organization's facilities to achieve predetermined goals. These facilities and facilities are evident in two general formats called material and human capital in the organization. The deeper and stronger the desire and interest in work and work environment and belief in the goals and values ??of the organization and attention to public expectations, the more individual, organizational and social obligations arise. Today, concepts and approaches such as selection, employment, maintenance, teamwork, punishment, work successes and failures, participation, delegation, training and learning, departmental motivation and empowerment, continuous improvement, and the like are all aspects and effects of "human resources development"[3] is Researchers and managers of advanced societies and organizations have come to the conclusion that the most important factor in the changes and growth and development of organizations is planning, training and improving the capabilities of human resources. It can be simply stated that without efficient people, it is impossible to achieve organizational goals. After this work, the research variables, both the independent variable and the dependent variable, are defined, then the scope of the research is stated, the research method is also stated, and at the end of this speech, the words and variables of the research are stated in an operational form. It is that employees are the valuable assets of an organization, without a doubt, human power or human factor is the noblest, most important and most valuable factor among production factors and resources, this factor, along with material facilities, gives a research aspect to the environment and demands of organizations, which is to provide efficiency and products with maximum efficiency to people and societies in the form of goods and services. The job factor in organizations and other complete institutions is all people and employees working in the organization, including managers, specialists, experts, employees and workers in different job categories. Today, the growth and excellence of organizations and institutions depend on the correct use of human resources, and people perform various roles and duties in real times. Therefore, the human resources of the organization, including managers, supervisors, experts and other employees, combine, combine and coordinate, integrate and equip other resources to achieve the goals of the organization. Organizations without human resources actually have no value, the human being is the most important part of the organization, if the human factor of the organization is removed, what remains is the factors and facilities such as buildings, machines, equipment, etc. which cannot be used immediately and has no prior value, it is the human who gives it soul and uses them to improve the evolution of his life, strategic human resource management with its broad meaning in today's world tries to combine the training and development of employees, organizational improvement and the path of career development so that individuals, groups and organizations grow in an effective way because employees are the most important part of the organization.