Human Resource Management and Performance in the Service Sector: The Case of Bank Branches

40 Pages Posted: 1 May 2000 Last revised: 29 May 2021

See all articles by Ann P. Bartel

Ann P. Bartel

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Date Written: January 2000

Abstract

This paper utilizes a unique dataset collected through site visits to extend the analysis of the relationship between the human resource management environment and establishment performance to the service sector, specifically the branch operations of a large bank. Case studies of several branches were used to understand how and why the human resource management environment is likely to affect branch level performance. The branch interviews were instrumental in properly specifying a branch-level performance equation. The econometric analysis showed that, controlling for the characteristics of the market in which the branch is located and the characteristics of the branch employees, as well as unobserved branch-specific and unobserved manager-specific characteristics, the human resource management environment at the branch, as measured by the performance evaluation and feedback system and the quality of communications between the manager and the staff, had a significant effect on the branch's performance. An important finding is that, even though all managers in this bank are given a formal set of human resource policies, they appear to have considerable discretion in their application.

Suggested Citation

Bartel, Ann P., Human Resource Management and Performance in the Service Sector: The Case of Bank Branches (January 2000). NBER Working Paper No. w7467, Available at SSRN: https://ssrn.com/abstract=213457

Ann P. Bartel (Contact Author)

Columbia Business School - Finance and Economics ( email )

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