The Human Resource Management and the Profitability, in Turkish Banking Sector: Evidence Within the “Leap Period”

Abstract

Since the concurrence reached its highest level at the last decades of the 20th century, the firms are in the search of gaining the competitive advantage. After have seen the impact of the strategic resources, scholar have focused to find the new ones. Human resource management had a considerable potential to contribute to the firm performance. In spite of evidence the relationship between the HRM and the firm performance, there are still some uncertainties: First, is it really acceptable to trust the perceptions of the respondents, particularly since they evaluate both HRM and the performance. And secondly, is it really certain that HRM ensures the profitability (but not the profitability ensures the HRM). In order to answer these questions, the annual activity reports (between 2010-2019) of the commercial banks in Turkey are analyzed. The data gathered from the HRM sections and the financial sheets are compared. Based on the intensity of new HRM practices starting and their impact on ROA, it is argued that HRM is one the factors that ensure the profitability, when it is driven in a leap period.

Keywords: Strategic human resource management, human resource management, firm performance, ROA, leap period

DOI: 10.7176/EJBM/13-8-08

Publication date: April 30^th 2021