Impact of Human Resource Management on Organizational Performance: The Case of Ethio-telecom

Abstract

Employees committed to their organizations will usually have good attendance records, demonstrate a willing adherence to company policies, and have lower turnover rates which are directly related to employee’s retention. This study examines the influence of human resource management that is compensation, employee’s development and organizational citizenship behavior on the performance of Ethio telecom in its main branch. The main objective of the study was to investigate the impact of HRM practices on the performance of Ethio-telecom. using causal research design. It has made use of primary data sources and 138 employees were selected through Simple random and purposive sampling. A structured questionnaire has been used to generate the primary data from sample employees. The data was analyzed by making use of simple descriptive statistical tools with the help of SPSS software and presented by using tables, charts and graphs. Using regression analysis, this study found that there is a significant effect of organizational citizenship, employee development and compensation management on the perceived organizational performance. Hence, the result shows that there is a positive relationship between HR practices (organizational citizenship, employee development and compensation management including training and rewards) and organizational performance in the context of developing economy. Further, the research should be directed both at HRM – performance link and at the link between HRM – employee work and working environment/culture – and employee well-being. The company may continue improving educational level of its employees and also provide trainings to them in order to enhance their performance. The company should have resources needed for learning, such as curriculum materials, science laboratories, ICT and libraries should be made available to every employee. More emphasis should be put to link the industry, technical training institutions, education and research institutions.