THE EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON THE ORGANIZATIONAL PERFORMANCE THE CASE OF YEKABDI AGRO PROCESSING PLC

Abstract

This study examines the Effect of human resource management that is Recruitment and selection, training and development, performance appraisal, reward and compensation, and employee participation, on the performance of Yekabdi Agro-Processing PLC (wow water). The main objective of this study was to identify the Effects of Human Resources Management Practices on Organizational Performance in the Case of Yekabdi Agro-Processing PLC (wow water). Using descriptive and explanatory research design and, data were gathered from primary sources it has made use of primary data sources and 118 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 Moreover, the study applied a mixed research approach and, data were analyzed via descriptive (frequency, percentage, and mean analysis) and inferential statistics (regression analysis). The results of descriptive statistics indicate that respondents have moderate or neutral perceptions towards HRM practices and organizational performance. Moreover, the results of regression analysis indicate that out of the five strategic human resource management practices, three practices namely reward and compensation; performance appraisal, and employee participation in decision making have a statistically significant positive effect on organizational performance. However, the study couldn’t find a statistically significant effect of recruitment and selection as well as training and development practices on organizational performance. Thus, the management is recommended to emphasize strategic HRM practices notably reward and compensation; performance appraisal, and employee participation in decision making to improve the performance of the organization.