Effects of Human Resource Management Practices on Employees Performance: The Case of Agricultural Multipurpose Cooperative Unions, in Kelem Wollega Zone, Oromia Regional State, Ethiopia

Abstract

The purpose of this study was to perceive effects of human resource management practice on employee performance with a special reference to agricultural multipurpose cooperatives union in kellem wollega zone. Human resource management practice was evaluated by recruitment and selection, job autonomy, training and development, employee participation, reward and compensation, and performance appraisal. Mixed research approaches are used to gather and analyze the study's data. HRM practices and employees' performances in the union are a lack of skills, knowledge, the inability to identify training needs, and a lack of performance evaluation. Out of 90 employees 90 were selected using census method. questionnaires are the tools utilized to gather data and analyzed using descriptive statistical analysis and inferential analysis methods. Correlation analysis was assessed to figure out the relationship between HRM practices and employee performance, multiple regression analysis was done to assess the influence of HRM on employee performance, ANOVAA and Cronbach Alpha was also tested. As a result, there are important connections between recruitment and selection, training and development, and Job autonomy, Reward and compensation, Employee Participation & Performance Appraisal. As recommendations, the union needs to identify gaps that need to be filled through training and appraise individuals with exemplary work in order to increase the productivity of the union. HRM should also apply development and growth of employees applying long training and education to surpass employees’ performance which enabled the union. The study also suggests that the agricultural multipurpose cooperative unions establish a network with higher universities and HRM Networks because it is difficult for the agricultural multipurpose cooperative unions to find suitable professionals.