THE ROLE OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL EFFECTIVENESS: THE CASE OF ETHIO TELECOM

Abstract

This study examines the role of Strategic Human Resource Practices on Organizational Effectiveness the case of Ethio Telecom. Many authors have maintained that strategic human resource managements directly linked to organizational performance. Effectiveness as a measure of organizational performance has different dimensions in different studies considering the context/sector of organizations’. For the case of this study Organizational Effectiveness is explained in terms of the Balanced Scorecard dimensions. It is to mean that, an organization is effective to the extent the four dimensions are achieved (i.e., Financial growth, Customer satisfaction, Learning & development and Internal Process). Effective human resource management strategy systematically organizes all individual human resource management practices to directly influence employee attitude and behavior in a way that leads business to achieve its effectiveness. This paper develops a conceptual framework that explains the relationship between strategic human resource management and organizational effectiveness. This study uses regression analysis to test the hypotheses in a sample of 121 respondents’ and to predict the effect of strategic HRM on the effectiveness of the organization. The results indicate that strategic human resource practices are positively related to each other and with organizational effectiveness (except the placement system has a negative relationship with organizational effectiveness due to some reasons of placing employees in a position which is not related with their KSAs). The strategic HRM is moderately practiced by the organization 70 %. The findings provide evidence that Strategic HRM plays a moderate role for the effectiveness of the organization, 52%. Following the major findings finally, this study discusses strategic implications and highlights future research directions. For example, one the strategic HR Planning Model, Strategic Performance Management process and HRM practices & company strategy linking procedures has been proposed for the organization; and two a program structure improvement directions for the University collage to enable students demonstrate the role Strategic HRM should play in organizational effectiveness.