LITERATURE REVIEW

Theories have been proposed to identify the need for human resource management in an organization
and how can it be used to gain a competitive edge over others in the market. This literature will cover
those theories and the analysis of different researchers redefining a structure for the management and
the policies henceforth.

According to the Harvard business school, human-related policy choices design by the top management
intend to achieve commitment. In contemporary business environment HRM is expected to provide a
strategic framework to support the long- term business goal and objectives (CIPD,2003). Human
resource management comprises of many functions ranging from recruitment and training,
compensation planning, rewarding based on appraisals, and ensuring the positions to be filled in the
organization keeping talent management in view (David.2011).

The effect of HRM practices on the learning tendency of bank employees was studied in the state of
Kerala, India with a sample size of 300 respondents both from public and private sector banks which
showed a strong influence of HRM practices (Pillai,2008)

(Bhaskar, Bhal and Mishra 2012) studied the influence of strategic HRM practices and communication
during mergers and acquisitions of several Indian banks and found diverging results and its effect on
private and public sector banks. Through the study of (Chinnadurai, 2014), the satisfaction level of the
employees in the private banks was studied keeping in view different HRM practices for the research
(recruitment and selection, training and development, performance appraisal, career development,
motivation, compensation, benefits, and grievance handling)

Sinha 2015 presented a comparative study in the context of HRM that led to employee satisfaction
among various banks in India. Results showed a significant difference in the perception of public and
private sector bank employees regarding different factors affecting HRM practices in the bank.

Several correlations between the human resource practices, climate, and business performance were
explained (Gelade and Ivery (2003)) and the relationship between human resource management and
established performance of employees (Bartel,2004). Inference can be drawn which clearly shows the
influence of HRM practices on the effectiveness of employees and hence guide the way to HRM policies
that can provide a competitive edge to the banks and well-being in context to employee operation.