Abstract:
Human resource management practices are concerning with the management of human resource
activities to maximize organizational’ performance. Therefore, the purpose of this study was to
assess the effects of human resource management practice on organizational performance. It
was to describe the current human resource management practice in Ambo Farmers Union, to
explain the correlation between selected human resource practices and organizational
performance and the researcher was used (obtained) information from 96 respondents from staff
of Ambo Farmers Union through the use of questionnaire and key informant interview,
qualitative and quantitative data. Data was analyzed through Statistical Package for the Social
Sciences version 20 by applying regression analysis and some needed descriptive statistics.The
results showed that and training and development, Human resource planning and compensation
management have a positive correlation with organizational performance. Multiple regression
analysis indicated that training and development, Human resource planning and compensation
management have a significant effect on organizational performance. The model of the
regression explained 70% of the variance in organizational performance by independent
variables. Multiple regression analysis indicated that among these three selected human
resource practices two have statistically significant relation. The regression model also
represented the contribution of each independent variable to show effects on organizational
performance as follow: training and development (TD= 0.084, p = 0.003), and Compensation
Management (COMgt = 0. 283, p = 0.000). The current study recommends that top management
in AFACU need to improve the HRM dimensions quality for the betterment of the union
success. Since Human resource planning seeks to define ends and means for performing
organizational goal it should involves: attracting number of people required with appropriate
skills, expertise and competencies.
