Assessment of Human Resource Management Practices & Organizational Performance in the case of Harmony Hotel in Addis Ababa

Abstract

This research looked at the impact of Human Resource Management practices on organizational performance in the case of Harmony Hotel in Addis Ababa. The assumption underpinning the practice of Human Resource Management is that people are the organization’s key resource and organizational performance largely depends on them. Therefore, if an appropriate range of Human Resource policies and processes are developed and implemented effectively, Human Resource will make a substantial impact on organizational performance. However, Harmony Hotel is yet to catch the Human Resource Management cold. The objectives of the study were to examine the general Human Resource practices and programs of the Harmony Hotel, evaluate the perceptions of employees on Human Resource practices and programs of the Harmony Hotel and establish the impact of properly managing human resources on the performance of this Hotel. This study surveyed in Harmony Hotel with total respondents of 170 made up of 18 managerial employees and 152 non-managerial employees. The response rate was 94.12% which represented 18 managerial employees and 142 non-managerial employees. The study Involves& Human Resource Practices and Challenges focused questions in the form of questionnaires for the sample sizes taken. Purposive Sampling technique was applied. The findings of the study revealed that Human Resource practices are improperly planned; implemented and managed by non-Human Resource experts and that the practices, programs and policies of Harmony Hotel are lowly perceived by their employees. The study also showed that the enormous benefits of properly managing human resources are lost to this Harmony Hotel. It was recommended that Harmony Hotel should dedicate a department to Human Resource for the proper management of human resources through whom competitive advantage could be created.