Human Resource Practices in Nepalese Commercial Banks: Systematic Review of Practices, Employee Outcomes, and Research Gaps

Abstract

Introduction: The concept of human resource management has been critical in commercial banking because the organization is very much reliant upon skilled, motivated, dedicated, and adaptable employees. There have been several changes in Nepalese commercial banks in the context of technology, competition, customer expectations, regulation, and mobility of the employees. The need for human resource management has increased due to these changes.

Objectives: This paper will identify the major human resource practices in the context of studies on Nepalese commercial banks, the association of these practices with the outcomes of employees and organizations will be discussed, and finally, the research gaps will be highlighted.

Methods: A systematic literature review was conducted in accordance with the PRISMA 2020 guidelines. The literature search was carried out using NepJOL, journals' websites, DOIs, institutional repositories, and academic search engines by using keywords such as human resource management practices, human resource development, commercial banks, employee performance, employee engagement, job satisfaction, organizational commitment, career development, compensation, and employee retention in Nepal. The inclusion criteria were to deal with the topic of Nepalese commercial banking and include at least one or several HR practices and their connection with the employees and organizations. The evidence synthesis was conducted in a thematic manner because of great discrepancies among the study design, variables, samples, and methodology.

Results: According to the literature reviewed, the following human resource practices should be considered during further research regarding Nepalese commercial banking: training and development, compensation and rewards, performance appraisal, recruitment and selection, career development, job security, work environment, employee empowerment, talent management, and green human resource management. The above-mentioned practices have been revealed to have some connection with the following factors: employee engagement, job satisfaction, organizational commitment, employee performance, organizational citizenship behavior, and employee retention. The most recently published papers put special emphasis on career development, perceived organizational support, talent management, green HRM, and retention.

Conclusion: There is plenty of evidence regarding the direct connection of human resource practices with such vital factors as employees' performance and organization functioning in Nepalese commercial banks. Nevertheless, there is a need for more longitudinal, comparative, mixed methodological, and organization-level studies.

Novelty: This paper points out traditional and emerging issues of human resource management in Nepalese commercial banks as well as tendency towards transition from separated HR practices to integrated employee-centered, developmental, digital, and sustainable human resources system.