Effect of Strategic Human Resources Management (HRM) Practices on Perceived Financial Performance of Non-Governmental Organizations: Empirical Evidence from RDRS Bangladesh

Abstract

The objective of this study is to identify the certain strategic human resource management (HRM) practices (strategic recruitment and selection, strategic training and development, strategic reward and compensation and strategic performance appraisal) and to determine the relationship between strategic HRM practices and perceived financial performance (measured in  fundraising efficiency, financial transparency, programs/ projects financial efficiency ) of Non-Governmental Organization (NGO) using RDRS Bangladesh as a case. The study administered 70 questionnaires to all staffs employed at central office of RDRS Bangladesh. Both descriptive and inferential statistics were used in the study. The findings revealed that as an NGO RDRS Bangladesh embraced strategic HRM practices and it had positive effect on the perceived financial performance. The results of the study recommended that appropriate strategic HRM practices could be useful for enhancing financial performance of NGO sector in Bangladesh.

Keywords: Strategic, HRM, Financial Performance, NGOs