The Impact of Human Resource Management Practices on Service Quality in Commercial Banks

This study explores the impact of Human Resource Management (HRM) practices on service quality in commercial banks, highlighting HRM’s strategic role in enhancing employee performance, customer satisfaction, and operational efficiency. A qualitative research approach was employed, using semi-structured interviews with 30 bank managers from various commercial banks in China. The findings reveal that effective HRM practices—such as comprehensive training, performance incentives, digital upskilling, and wellness programs—have a significant positive influence on service delivery, customer loyalty, adaptability to digital transformation, and staff retention. The study also finds that HRM contributes to regulatory compliance and ethical standards, though this area receives less emphasis. The discussion emphasizes the strategic value of HRM not only in traditional service enhancement but also in navigating the challenges of digital banking. The innovation of this study lies in its management-level perspective, offering a multidimensional understanding of how HRM directly and indirectly shapes service quality. The results provide practical insights for banking institutions seeking to refine HR strategies to remain competitive in a rapidly evolving financial landscape.