Analysing the challenges for employee performance improvement – the case of commercial banks in Pakistan.

The present study intended to analyse challenges and performance outcome to implement them effectively for employee performance improvement by considering a strategic role of HRM in commercial banking sector of Pakistan. The study employed mixed research design and the data were collected from survey and interviews. The population of the study was based on managers and employees from the banking sector of Pakistan. It was analysed in the study that Human Resource Management is the most important function in any company or organisation to achieve success. The relationship between HRM practices and employees’ performance is significant for banking institutions of Pakistan because employees are regarded as the most crucial strategic asset of any organisation as employees are the ones who can make their organisation successful. The study highlighted some important challenges faced by Pakistani banking sector, such as customer and employee loyalty is the major issue in Pakistani commercial banking industry. Employee dissatisfaction and lack of commitment, as well as low productivity, absenteeism, and turnover, are all examples. The research has found significant impact of HRM practices on coping with the challenges. It was recommended that management of the banks in Pakistan should ensure that employees must have knowledge about the appraisal system and its effects on employees. In addition, the decision-making process should be centralised. Certain important steps should be taken for the satisfaction of employees. Performance evaluation should be fair for all employees and there is no favouritism in the whole process