A Behavioral Science Investigation into the Impact of Human Resource Practices on Employee Efficacy and Organizational Culture at State Bank of India, Kerala

Abstract

The study examines how Human Resource (HR) practices influence employee efficacy and organizational culture in the State Bank of India (SBI) in Kerala. This paper looks at the effect of HR practices, including training, compensation, work environment, and HR planning, on employee efficacy (self-efficacy, task efficacy, and Organizational efficacy). It employed a quantitative methodology in which data were collected via a structured questionnaire and processed using Factor Analysis, Structural Equation Modeling (SEM), and Regression Analysis with SPSS and AMOS. Findings revealed significant relationships between HR practices and employee efficacy: the factor loadings for training on self-efficacy are 0.85, compensation on task efficacy are 0.78, and work environment on Organizational efficacy are 0.82. SEM showed some important path coefficients: 0.68 training, 0.57 compensation, and 0.63 work environment. The relationship between HR practices and Organizational culture was mediated by employee efficacy, with path coefficients of 0.74 for involvement, 0.69 for consistency, 0.66 for adaptability, and 0.64 for mission. The null hypothesis of Objective 1 (H0: No difference in HR practices on employee efficacy) was rejected, and the alternative hypothesis (H1: HR practices make a difference in employee efficacy) was accepted. Likewise, in Objective 2, H1 was accepted (employee efficacy mediates HR practices and Organizational culture) and H0 was rejected. Objective 3 determined that Organizational culture had a significant influence on employee outcomes (R2 values of 0.65 for job satisfaction, 0.60 for commitment, 0.58 for performance, and 0.62 for intention to stay, with p-values of 0.001). The null hypothesis was rejected, and the alternative hypothesis (H1: Organizational culture impacts employee outcomes) was accepted. Such results highlight the significance of strategic HR practices in improving employee efficacy, Organizational culture, and overall performance at SBI.