Abstract:
Nowadays sustainable organizational performance (SOP) is crucial for all types of
organizations as it ensures long-term success and resilience. SOP refers to economic,
social and environmental initiatives. As regard SOP, it significantly impacts on banking
sector's stability and higher performance among competitors. In previous days, Sri
Lanka's banking sector played a major role in the country's economic landscape. But
these days, Sri Lanka's banking sector has an impact on economic, social and
environmental activities and also, not only the bank sector but also every organization
should be aware of the social and environmental effects. These days, if the banking
sector is to increase their financial income, they are using it strategically to increase
their reputations among society. That's why they are more aware of the environment
and social activities.
Therefore, effectively manipulating HRM practices in organizations is very important
for improving the organization's performance as well as its sustainability. Prioritizing
sustainability across an organization will naturally affect various elements of HRM
practices, along with environmental and social responsibility. Through these HRM
practices, the banking sector can handle their employees' behavior and attitude in an
effective and efficient manner, which will achieve the organization's sustainable
performance, which is to integrate social, economic, and environmental performance.
In every organization, employees are the main asset; thus, motivating and encouraging
the employees is essential for organizational success. If the employees are well satisfied
and motivated within the banking sector, they enthusiastically participate in innovation
activities, which leads to SOP.
The quantitative study conducted based on primary data which were collected among
238 employees who are working in selected bank in Batticaloa District and, five point
Likert scale was assigned to measure the variables. The collected data were analyzed
by using univariate, bivariate and multivariate techniques in a computer based
Statistical Package for the Social Science 22nd version software.
In this study, the statistical tools that used to analyze the levels of variables are mean
and SD values, while relationships were measured by Pearson coefficients and linear
regressions for further mediation analyses. Moreover, the result shows significant
positive associations among all the variables, by denoting a positive relationship
between HRM practices (Staffing, performance management, staff development and
compensation and management, SOP and organizational innovation too, where most
of the literatures are commonly supporting for negative relationship. Hence, this study
helps managers especially for Human Resource managers to understand How HRM
practices translate into sustainable organizational performance through organizational
innovation among the competitive world.
