Effect of Human Resource Climate on Employee Benevolence and Organisational Commitment

Abstract

Banking is the core of the financial sector. As per Oct 2020 data, India has 12 Public Sector banks, 22 Private Sector banks and 46 Foreign Banks, besides over 97,000 Rural and Urban Cooperative banks in the country as per RBI (RBI, 2020). The banking sector has displayed a robust average yearly growth of 7.51% from 2013 to 2020, with capital rising in all banking groups, i.e. Public sector, private sector and multi-national banks (ibef.org, 2021). The Indian banking industry was remarkably resilient throughout the COVID-19 pandemic during 2020, wherein it played a significant role in supporting the economy. Enhanced financial support and moratorium to industry aided ailing industry during the pandemic times. As India battles its second wave in early 2021, the banking sector continues its support and display resilience. The human resource of the banks has played a significant role in the prevention of crisis by provisioning uninterrupted services and have contributed to the growth in times of pandemic. A vital lever during the pandemic was technology, through which banking was accessible remotely in the confines of homes and offices through computers and mobile applications. However, physical banking remains at the forefront of the banking industry, and human resource retains its importance as a strategic resource.The performance of the employees in any organisation depends on favourable HR practices, and it aids to create a dedicated, loyal and engaged pool of employees contributing to higher productivity. Effective HR management assists in designing a unique intrinsic value, the Human Capital, which is a distinct and inimitable feature of an organisation. Good HR strategies and practices create emotionally attached employees, inculcating a deep sense of commitment towards the organisation. Therefore, progressive organisations must endeavour to reform and improve their HR practices to obtain engaged employees working selflessly for the progression of the organisation. Organisations need to enhance their human