STRATEGIC HUMAN RESOURCE MANAGEMENT AND ITS IMPACT ON BANK’S PERFORMANCE

The importance of strategic planning and management as increased significantly in recent times. It is a means of enhancing organizational competitive advantage. In a swiftly changing competitive environment, human resources are one important source of competitive lead for an organization. However, linking to strategic planning and management, human resource management should be strategic that guarantees positive firm performance outcome. It has become even more necessary in the financial sector, especially for the banking and financial institutions, because of the integration of global financial systems and the resultant increase in competitiveness. Nepal has an established banking system with main challenge to strategic management of human resources and directly implicating to survival of the banks depend on its performance. In this view this study aims at exploring strategic human resource management practices and examining the impact of strategic human resource management practices on organizational performance of commercial banks in Nepal. This study uses a quantitative approach towards descriptive and explanatory casual research design with 6 numbers of banks and 507 numbers of employee as sample. It was found that strategic human resource management practices are a vital element in consideration of increasing the financial performance, business performance, organizational effectiveness, employee job performance, and benchmarked performance achievement.