Abstract:
: The stability of the Sri Lankan financial system heavily relies on the sound health
regarding the performance and the capital adequacy of the six largest Licensed Commercial
Banks (LCBs). Those banks are described as Systemically Important Banks (SIBs). This
group consists of the two main reputed public sector commercial banks which have been
targeted in this study. However, the ineffective implementation of the Human Resource
Management function of public sector Commercial banks has been a continuing issue within
the Sri Lankan context. The current study examines how the perceived organizational
performance of public sector commercial banks is linked with human resource management
practices namely, Recruitment and Selection, Training and development, Performance
Appraisal, Rewards management, Employee retention, and Employee relations which
provides a solution for the problem of relatively low performance of state commercial banks
in Sri Lanka compared to employee base. The study was quantitative and the survey method
was applied for data collection. A structured questionnaire was distributed using simple
random sampling and 158 clear and completed responses were returned representing a
population of 750 managerial employees within two public sector commercial banks of
Northwestern Province of Sri Lanka. The collected data were analyzed using Statistical
Package for the Social Sciences (SPSS) version 23.0. The methods used in the analysis of
this study involved simple descriptive analysis, correlation analysis and multiple regression
analysis. The findings concluded a significant positive relationship of perceived
organizational performance with recruitment and selection, training and development,
performance appraisal, rewards management, employee retention and employee relations.
