Effect Of Human Resource Management Practices On Organizational Performance In Case Of Ethiotelecom Head Office, Addis Ababa

Abstract

A growing choice of human resource practices is becoming the fate of organizational performances. This paper is then explored the effect of human resource practices on the organizational performance using Ethiotelecom cases. Using data from sample of 291 Ethiotelecom Employee in the head office; on employee profile, Ethiotelecom human resource practices such as selection and recruitment, reward management, training and development, and employee performance appraisal; the researcher estimated their effect on Ethiotelecom performances using heteroscedastic accounted regression. The findings show that recruitment and selection, training and development, and reward management are positively and statistically significantly helping to the organizational performances of Ethiotelecom. On the other hand, although the employee performance appraisal has found to have positive effect on the Ethiotelecom performances, the effect is not statistically significant which may be linked to the low level of staff performance appraisal to identify the strength and weakness to aid to Ethiotelecom performances. Therefore, it’s important to encourage Ethiotelecom to improve selection and recruitment criteria, to objectively select and assess recruitment & selection process; to encourage training and development which is likely based on the needs identified through plan and objectives of the organization, to further improve the organizational performances; and to encourage Ethiotelecom to provide recognition for best performing employee, make fair remuneration and improve incentive to achieve its organization performance.