The significance of strategic human resource management in the process of acquiring a competitive advantage through personnel, with a particular focus on CUB Limited, which is located in Thanjavur in the Indian state of Tamil Nadu

Abstract

The banking industry in India is currently facing a great deal of issues across all of the country's numerous banking sectors. Because of the intense competition in the banking industry, employees have become more dedicated to their work. They guarantee a higher level of commitment from customers through the banking business. The SHRM of the CUB banks, employee commitment, and the performance of the banks are the primary foci of the prospective future perspective. SHRM has an effect on performance in ways that are frequently hidden from individuals working within the firm. The culture of banking is reportedly in disrepair, according to a number of recent conversations that have taken place in newspapers, business journals, and government corridors. They point to examples such as the frantic rush into derivatives and other high-risk investment vehicles, the outrageous bonuses paid to bankers, the never-ending search for acquisition targets to expand scope and scale, the lack of focus on customer service, the retreat from lending, and the obsessive focus on internal profits rather than providing a public service as evidence of this. Over the course of the past 40 years, there has been a substantial cultural shift in the banking industry, and the current status of the global economy suggests that this shift has not been for the better. But if we understand what it is that generates a corporate culture in the first place, we would know that we currently have the culture that we established, whether by design or by default; it was created by the decisions that were made concerning business procedures and leadership styles. The culture of banking may have changed while leaders were focused on other matters, such as mergers and acquisitions or the establishment of worldwide footprints, which is an alternative viewpoint that has merit. In order to achieve a competitive edge and better productivity, quality, and financial performance in the banking industry in India, it is essential to use SHRM practices that are effective. According to the findings of the study, the SHRM practices used by City Union Bank are essential to the level of employee dedication and performance, which ultimately results in increased revenues. SHRM tactics can be improved further through the use of HR activities that are tied to competency-based performance measurements as well as business profits. SHRM practices are required to be adopted by organizations in order to develop the capabilities of their personnel and generate possibilities for skill usage in the workplace. The connection between strategic human resource management practices and the performance of a company is mediated by human resource capabilities. In order for businesses to get a competitive advantage, they need to work on developing HR talents that are useful, unique, unachievable, and well-organized. According to the findings of the study, efficient SHRM practices are essential for successfully navigating the challenges and competitiveness that are present in the banking industry in India.