PREVENTING EMPLOYEE INEFFICIENCY IN BANKS AND THE SIGNIFICANCE OF AN EFFECTIVE HUMAN RESOURCE POLICY

Employee inefficiency in banks significantly impacts operational performance, risk management, and profitability. Ineffective staff behavior leads to delayed credit decisions, poor monitoring of non-performing loans, and increased operational costs. This study examines strategies to prevent employee inefficiency and highlights the importance of a well-designed human resource (HR) policy. Using mixed-method research, including surveys and interviews with banking professionals, the study identifies the key causes of inefficiency, the role of recruitment, training, and performance management, and strategies for promoting accountability and motivation. The findings suggest that integrating structured HR policies, employee development programs, and performance-linked incentives can significantly enhance efficiency and improve banking outcomes.