The human resource management and development in the banking sector during the economic crisis: A quantitative approach

Abstract

This study is focused on the HR management and development in the banking sector during the period of global economic crisis. It was implemented in a Greek Bank, and an adequate sample of participants was gathered. The aim of this paper was to highlight the consequences provoked to HR management and development by the economic crisis. The main objective of this study was to critically review the impact of economic crisis to the HR department of the Bank. Furthermore, there was an attempt to analyze the influence of the acquisitions and the merges to the organization. Finally, the participants evaluated the effectiveness of HR management during that period. The analysis of the results was categorized by subject and conclusions were drawn accordingly. The results of this study, indicate that the banking sector employs personnel of high quality and educational level, fully qualified to achieve organizational goals. Despite the high stress level during economic crisis, they were able to adjust smoothly to their new reality. However, findings indicate a strong dissatisfaction of the employees’ current job positions. In addition, most of them feel disappointment towards the evaluation and compensation system. Finally, the study reveals a strong sense of insecurity and abandonment by HR, during crucial periods such as the period of banks’ acquisitions and capital controls. Recommendations were based mostly on how the HR should design new strategies and plans and ways to implement them effectively in similar situations.

JEL classification: M19, M59

Keywords: Banking system, economic crisis, Human Resources Management, banks’ acquisitions, capital controls, evaluation and remuneration system