THE EFFECT OF EMPLOYEE PERFORMANCE APPRAISAL, EMPLOYEE TRAINING AND COMMITMENT ON ORGANIZATIONAL PERFORMANCE: THE CASE OF ETHIOPIAN INSURANCECORPORATION

Abstract

The purpose of this study was to show the practice gap which has been used in Ethiopian Insurance Corporation on the area of selected HRM practices. The study specifically focuses on three areas where the problems are exceedingly prevalent which are (Training and development, performance appraisal, and organization commitment) and their effect on organization performance. To achieve this purpose explanatory survey design was adopted using simple random sampling technique on a sample size of 261. Descriptive and inferential statistics were used to examine the relationship between the study variables using SPSS version 20. The finding of the study revealed that the above mentioned HRM practices influence the organization performance positively. The result of the regression also shows that all the study variables have statistically significant contribution on organizational performance. The adjusted R² of 43.9 indicates that 43.9% of the variance can be predicted by HRM practiced by of the corporation. The result of Pearson correlation coefficients also reveals that HRM practices (training and development, performance appraisal and employee commitment) are significant correlates of organization performance. thus, it can be concluded that improved human resource management practices are significantly influencing organizational performance. Therefore, the management of Ethiopian Insurance Corporation should improve its human resource management practices as a way of improving the company performance.