STRATEGIC HUMAN RESOURCE MANAGEMENT AND PERFORMANCE OF FIRST BANK OF NIGERIA PLC

Abstract

This strategic fit is constantly changing and evolving, and deposit money banks are disadvantaged due to obstacles confronting the implementation of Strategic Human Resource Management (SHRM) in Nigeria. This study, therefore, examined the impact of SHRM on performance in the banking industry. The study employed exploratory and descriptive research designs to answer research questions in line with the study objectives; to examine the challenges affecting SHRM practices on bank performance, to determine the effect of human resources training and development, and to investigate the extent to which strategic human resource planning affects bank performance. Probability and non-probability sampling techniques through purposive and simple random sampling were employed to select a sample size of 120 out of the total population of 175 employees of First Bank Plc in the Ilorin Metropolis. Regression and Thematic analysis were used to test the study's hypotheses using SPSS and Nvivo Software. The hypotheses were subjected to test at a 5% level of significance. The finding revealed that financial legal practice (β=0.534; p=0.000<0.05), strategic managerial change(β=0.448; p=0.033<0.05), leadership development problem(β=0.625; p=0.000<0.05), talent retention(β=0.833; p=0.014<0.05), and compensation management system(β=0.697; p=0.000<0.05) are SHRM challenges affecting service delivery operational performance, which passed their test of significance at 5% levels except adapting to financial innovation (β=0.051; p=0.531>0.05). A sequel to this was the finding from the thematic analysis that a push toward digital innovation within the industry generated an uproar regarding job insecurity and slowed down operational performance while going remotely due to security challenges, technical constraints, and infrastructural deficiency. The study concludes that a holistic planning approach towards talent retention, innovation, reward, career development and the degree to which jobs are narrowly defined as a strategic fit to improve employee performance. It was recommended that strategic managers pay positive attention to the planning, particularly one involving a reward management system that meets the cultures of individuals who want to join the organisation to avoid underperformance.