THE IMPACT OF HUMAN RESOURCES PRACTICES ON EMPLOYEES’ COMMITMENT: THE CASE OF ISLAMIC RELIEF

Abstract

This research is conducted to assess the impact of HRM practices on employee’s commitment. The study has involved 76 fixed term staff of Islamic Relief from both Addis Ababa and Somali Regional State project offices and their response is analysed and interpreted which was collected through a structured questionnaire and interview. A mixed approach was applied to triangulate the data from the interview, questionnaire and the prior empirical findings so that it confirms the reliability of the result. HRM practices were measured using employees’ perception on management involvement, performance management, training and development, career development, reward and compensation and employment relations. Descriptive data analysis in the form of frequencies, mean and standard deviations were applied to describe data collected from the questionnaire. Interview is also conducted with six staff who stands for 3 from Senior Management Team, a delegated HR team, a staff representing those with more than nine years of service and another staff representing staff who have served less than three years. All the six HRM practices were found meaningfully related to employee organizational commitment. Another important finding is that there is a big gap in applying HRM practices in the areas of career development management, reward and compensation management and training and development. However, the management involvement, employment relation and performance management areas are found to perform in moderately right way to impact employees’ commitment. Given the findings, HR policies should be well designed for areas such as career development, training, and development because they were found to give strong effect in explaining the variance in organizational commitment.