Effects Of Human Resource Management Practices On Organizational Performance: The Case Of Ambo Farmers‟ Union, West Shoa Administrative Zone, Oromia Regional State Of Ethiopia

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.