EMPLOYEE RELATIONSHIP MANAGEMENT AND ITS EFFECTS ON EMPLOYEES’ PERFORMANCE: IN SELECTED EXPORT-IMPORT PRIVATE COMPANIES OF ADDIS ABABA.

Abstract

This research investigates the effect of Employee Relationship Management (ERM) on the employees’ performance in the case of selected export-import private companies operating in Addis Ababa. ERM’s main components considered in this study include HRM practices, communication, trust, shared goals and values, and leadership styles). The data of the research was collected using a questionnaire which was distributed to 200 employees (males, females with different age, education and years of employment) who were selected from Yanet Trading PLC, BEAEKA General Business PLC and EUREKA Industrial Supplies PLC. The sample respondents were selected using a systematic random sampling method wherein the sampling frame was ordered alphabetically and 200 employees were drawn at an interval of three from the total population of 600. Of 200 questionnaires, 168 questionnaires were returned and used for analysis. The analysis was made using SPSS IBM Version 20. The findings indicated that there is a statistical significant relationship between employee relationship management components and the employee’s performance at 0.05 level. These showed that effective ERM in Export-Import Sectors has a positive impact on the performance of the employees. Thus the researcher recommends that the companies should pay special attention to ERM components by carefully incorporating them into their strategy to develop and maintain the employees’ skills, abilities, motivation, etc. to enable them carryout their duties and tasks effectively and efficiently.