HRM Practices in Commercial Banks in Nepal and India: A Comparative Literature Review of HRM Practices, Outcomes and Trends

Abstract

Background: Human resource management is essential to the effectiveness and sustainability of commercial banks because banks require the knowledge, quality of service, trustworthiness, digital skills, and relationship management skills of their employees. Nepal and India have many similar aspects in geography, culture, institutions, but there are some differences in the structure of their banking sectors in terms of size, labour market depth, regulation, diversity.

Objectives: This paper aims to conduct a comparative review of the most recent literature on the topic of HRM practices in commercial banks of Nepal and India, focusing on recruitment and selection, training and development, performance management, reward system, career development, employee engagement, retention, empowerment, work-life balance, and green HRM.

Methods: A structured comparative literature review has been conducted based on recent scholarly literature and articles published in authoritative journals. The search was made using keywords related to HRM, human resource development, employee engagement, retention, performance, talent management, green HRM and banking in Nepal and India. Bibliographical verification of articles has been made through publisher/journal websites.

Results: The literature reveals many common features of Nepal and India: training and development, fair performance systems, career prospects, good working environment, involvement of employees, and organizational support have shown to positively influence on employee or organizational outcome. In Nepal, there is more attention paid to such aspects as retention, career development, employee engagement, talent management, work-life balance and merger-related employment issues. The research in India provides much evidence on the topics of employee competencies, organizational performance, empowerment, green HRM, talent management and sustainability.

Conclusion: The tendency of HRM to be strategic and human resource development oriented is present in both banking sectors but the levels of development and scope of literature on the subject differ.

Novelty: The paper provides a comparative analysis of two countries that gives an opportunity for Nepalese banking researchers to benefit from broader Indian evidence base and take into account its own unique features.