Human Resources Management Effectiveness for Client Satisfactions and Bank Reputations (Case of State-owned Banks in Indonesia)
Abstract
The aim of this study is to explore the role of human resources management (HRM) practices in sustaining banks’ competitiveness and reputations. It was to ascertain the effectiveness of the HRM policies to enhance the service quality, employee credibility, corporate communications, those all simultaneously for higher client satisfaction and greater reputation of the banks. The exploration was intended for bank assessment prior a merger scheme of four state-owned banks into a one-state holding bank. The respondent for the study was the bank clients with at least 10 years of loyalty. Survey by google form questionnaires, being emailed during February–April 2017. Sample chosen by purposive random sampling. The questionnaires’ return rate was 42% of 420 google forms sent. The analysis was applying the Structural Equation Modelling (SEM), examining the goodness of fit for the structural model and the data. Examination was also done for measurement model of every single construct. The study revealed that bank reputation significantly correlated to service quality, employee credibility, and client satisfactions, but less related to corporate communications. Discussion and implication of these findings were deliberated with detail in the article.
Keywords: service quality, employee credibility, corporate communication, client satisfaction, bank reputation
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