APPLICATION OF FOMBRUM, TICHY AND DEVANNA’S HUMAN RESOURCE MANAGEMENT MODEL TO ENHANCE EMPLOYEE PERFORMANCE IN THE NIGERIA BANKING SECTOR

Abstract

The study examined the application of Fombrun, Tichy, and Devanna’s (FTD) Human Resources Management (HRM) model to enhance employee performance in the Nigerian banking sector. The study focused on the aspects of; selection, performance appraisal, rewards, and development with reference to performance of the employees in the banking sector in Nigeria. The study findings revealed that Nigerian banks have well-established recruitment and selection strategies in their talent acquisition process. In terms of the usage of performance appraisal systems for the assessment of the performance of their employees in the banking sector, the study revealed that it was efficient in usage as one of the strong instrument for effective performance. The findings on rewards system and development revealed the rewards system in use in the Nigeria banking sector is not in measure to the rate of work done and the risk attached to the job, as such the reward and development component of the model has been adopted as seems to be less consistent with the situation in the credit reward of the Nigerian banking sector. Likewise, the level of spending on this capacity enhancement activity- employee training and development-clusters also differs in Nigerian banks and below expectations meaning organizational stakeholders are not fully implementing the FTD (1984) model’s reward and development components.  The study concluded that the usage of FTD (1984) model is relatively low in the Nigeria sector. The study therefore recommended that Nigerian banks should prioritize the integration of robust reward systems and continuous employee development programs. These aspects are crucial for maintaining employee motivation and engagement, which directly contribute to improved performance.