THE EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEE PERFORMANCE IN ETHIOPIAN TOURIST TRADING ENTERPRISE

Abstract

The study looks at how employee performance is affected by human resource management practices in the context of Ethiopia Tourism Trading Enterprise. Examining how HRM practices effected on employee performance at Ethiopian Tourist Trading Enterprise is the study's goal. In order to conduct the study, the researcher used descriptive and explanatory research methods. The study applied a quantitative research approach by using stratified probability approaches, samples of 217 employees were chosen from a population of 476; 156 questionnaires were returned, with a response rate of 71 percent. According to the results of the descriptive statistics, employees' perceptions of the following factors were moderate: recruitment and selection, competency-based performance appraisal, compensation and reward, and training and development. All independent factors have a favorable link with employee performance, according to the correlation analysis. Aside from this, employee performance is significantly correlated with competency-based performance evaluation, compensation & reward, and training and development, with a pvalue of 0.000. Nevertheless, there is little correlation between employee performance and recruitment & selection. The regression analysis showed that all variables have a significant effect on employee performance. The researcher investigate that human resource management practice has a high effect on employee performance with adjusted R square value of 0.855. Therefore, all parties including managers and employees in ETTE and in related public enterprise shall focus on the discovered pinpoints so that they can improve the performance of employee as well as the organization performance.