EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON PERCEIVED EMPLOYEES’ PERFORMANCE: THE CASE OF ETHIOPIAN SHIPPING AND LOGISTIC SERVICE ENTERPRISE

Abstract

Human resource management practices are concerning with the management of human resource activities to maximize employees’ performance. In present situation, companies can gain strong competitive advantage through applying human resource management practices. If the human resources are managed properly, they can contribute to the success of the company. Human resource management practices in a broader sense covers the practices applied by human resource management of any organization that directly influence the effort of everyone in the organization for the success of organization. The purpose of this research was to examine the effect of human resource management practices on employee performance in the case of Ethiopian shipping and logistics enterprise. To achieve the study objectives, the researcher used, questionnaires to collected. Questionnaire data were processed with SPSS and analyzed using descriptive analysis and inferential statistics. Samples of 258 employees were selected by using simple random techniques; 250 questionnaires were collected back; the response rate was 99.1%. The descriptive statistics result shows that the perceptions of employee of (recruitment and selection, Reward management, Performance appraisal and training and development) were low. The variation of 45.9% of employee performance due to the predictors of Human resource practices (recruitment and selection, and Reward management, Performance appraisal and training and development). The Correlation results indicated that all human resource management practices were significantly and positively correlated with the employee performance in Ethiopian shipping and logistics enterprise. The result of regression analysis revealed that recruitment and selection, performance appraisal and reward management have positive and significant effect on employee performance. However, training and development has insignificant effect on employee performance in the Enterprise. The study finally recommended that the enterprise should revise its human resource management practice for a quality service and performance and to get competitive advantage