The Influence of Human Resource Management Practices on Organizational Performance: Evidence from CRDB Bank Branches in Mbeya City, Tanzania

Business

This study examines the influence of Human Resource Management (HRM) practices on organizational performance in the Tanzanian banking sector, using CRDB Bank branches in Mbeya City as a case study. Grounded in the Resource-Based View (RBV) theory, the study focuses on recruitment and selection, training and development, reward systems, and employee participation, while examining the mediating roles of employee engagement and organizational learning. A quantitative research design was employed, and data were collected through structured questionnaires administered to 66 employees across three CRDB Bank branches. Descriptive statistics, correlation analysis, regression analysis, and factor analysis were used for data analysis. The findings indicate that HRM practices have a positive and significant influence on organizational performance, particularly in terms of service quality, operational efficiency, productivity, and stakeholder satisfaction. Training and development emerged as the strongest predictor of performance, while employee engagement and organizational learning significantly mediated the HRM–performance relationship. The study contributes to HRM literature by providing branch-level evidence from a developing country context and offers practical implications for strengthening HRM strategies in African banking institutions.

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