EFFECTS OF HUMAN RESOURCES MANAGEMENT STRATEGIES ON FINANCIAL INSTITUTIONS PERFORMANCE DEVELOPMENT BANK OF RWANDA(2020-2023)

Abstract

The study sought to examine the effect of human resource management on performance of financial institutions in Rwanda. It was specifically conducted in Development Bank of Rwanda (BRD)with following those specific objectives: to find out the effectiveness of human resource management strategies applied by the Development Bank of Rwanda and to analyze the effect of human resources management strategies on the performance of the Development Bank of Rwanda.To achieve the above stated objectives, the study has collected data through primary and secondary sources. Data were conducted from 30 respondents from management included senior, middle and low managers of BRD who were selected using purposive sampling. The results indicated that 100% of the majority of respondents agreed that the BRD ensures that employees have the skills required to perform their duties same as BRD leads to quality performance of employees. Besides, 100% of respondents agreed that BRD assesses employees' training needs,Furthermore, 100.0% of respondents agreed that BRD identifies areas needing improvement. Furthermore, the research found that 100% of the majority of respondents agreed that the employees are placed on job basing on their competence. beside, 100.0% of respondents agreed that qualification and experience are the main factors considered during selection.100.0% of respondents strongly agreed that valid and standardized tests are used when required in the selection process. 100% of respondents agreed that there is assessment where the employees are assigned. 94.3% of respondents agreed that BRD evaluates whatexpectedfromeachemployee.Theresultsshowedthat100%ofrespondentsagreedthatBRD compensation is decided on the basis of job performance of the employees. 100% of respondents agreed that BRD provides opportunity to enjoy social security and end of service benefits to the employees.100.0% as the majority of respondents agreed that the profitability of the BRD has be as a result of good management practices , 100.0% of respondents agreed that Human resource strategies have led to growth rate of revenue,81% of respondents agreed that Development Bank of Rwanda's return on equity is satisfactory.In order to make effective bank performance through HRM practices, researcher suggest BRD:to plan for refresher training as it is necessary for bring new ideas change and innovation for organization and goals achievement. The managers have to continue attracting employees and retain them basing on equitably selection of employees to attend the training, because it is most important for organizational performance and goals achievement,To prioritize banking company based on quantifiable human resource management practices, so it is essential for policy makers to base their activities decision on economic and financial analysis and to improve bonuses that are given to employees as to recognize structure to distribute bonuses.