A study on the effect of human resource management on financial performance: A case study of Bank Melli Esfahan using Harvard method

Abstract

This paper presents an empirical investigation to study the relationship between human resource management and financial performance of some Iranian banks. The proposed study of this paper designs a questionnaire and distributes it among all management teams who work in city of Esfahan, Iran. Three questionnaires have been designed, which are associated with human resources, present financial performance and desirable financial performance with 22 questions. Cronbach alpha has been calculated as 0.86, which is well above the minimum desirable limit of 0.70. The study uses Pearson correlation ratio as well as regression technique and structural equation modeling to examine five hypotheses associated with this survey and the results of our all investigations have confirmed that there are some positive and meaningful relationship between human resources development and financial figures.