Philippine E-Journals

Nous of Harvard Human Resource Management Model as Correlates to the Financial Performance of Commercial Banks

Ferdinand Abadilla Rodriguez

 

Abstract:

This research examines relationship between HRM practices using Harvard model and the financial performance of commercial banking sectors of Northern Mindanao. The study utilized descriptive correlational research design. The study sampled 134 rank and file commercial banks’ personnel from the top 10 largest commercial banks in Northern Mindanao, Philippines. The findings demonstrated that of the four strategic areas the domain of employee influence and reward system have significant negative weak relationship with commercial banks’ size of assets, capital deposits, and loans. The respondents’ profile also have very little influence, however there is significant relationship between the respondents’ perceived employee influence and banks’ reward system, size of assets, deposits, and loans. The study recommends that banks should use the Harvard model’s four strategic policy areas which define clearly the series of tasks of employees, the clear and specific interests and influence of management that communicate to the different stakeholders.