Abstract:
The general objectives of this study are to investigate the contribution of contribution of human resource management to the financial performance of commercial banks in Rwanda. The specific objectives of the study to determine the effectiveness of human resource management applied in Equity bank Rwanda PLC and to examine the contribution of human resource management to the financial performance of Equity bank Rwanda PLC. On the effectiveness of human resource management practices applied in Equity bank Rwanda PLC the respondents confirmed and agree 100% that human resource management practices applied in Equity bank Rwanda PLC are human resource planning, Job Flexibility, recruitment & Selection, employees motivation, training & Development and career Planning. From 2021 up to 2023 the ratios of net profit margin were 37.40%; 29.58% and 37.90 respectively. From 2021 up to 2023, the ratio of Return on Assets are 2.70%; 2.78% and 3.48% respectively. And from 2021 up to 2023 the ratio of Return on Equity are as following: 18.90%; 22.79% and 26.26% respectively. Also Capital adequacy ratios shows that this bank core capital to risk weighted assets was 20.42%; 15.48% and 17.13% respectively from 2021 to 2023. And all these are above the minimum required ratio according to the central bank of Rwanda. Therefore, this allow researcher to confirm that this bank recorded a considerable performance in this period. Regarding the contribution of loan management to the financial performance of Equity bank Rwanda PLC, correlation matrix indicate that independent variable has positive high correlation to dependent variable equal to .894** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researcher concludes that variables are correlated and the hypothesis is confirmed. This means that there is a significant positive relationship between loan management and financial Performance of Equity Bank Rwanda PLC. The findings clearly shows that all
respondents representing 100% of the respondents strongly agreed that training receive by employees in Equity bank Rwanda PLC improved their performance at work. It is also revealed that the majority of respondents with 100% strongly agreed that motivation received from EQUITY BANK RWANDA PLC encouraged employees to work hard and promote bank‟s interest. On the other side 100% strongly agreed that effective HRM lead Equity bank Rwanda PLC to high productivity.
