Abstract:
This study attempts to examine the relationship between employees' perceived
performance (dependent variable) and human resource practices (Selection practices,
Training, Compensation practices and promotion practices) in Commercial Bank of
Ethiopia the case of Jimma district.. Jimma district was selected owing to its poorest
performance in the recent years. Three strata were formed among the branches and
twenty !ranches were selected from all the strata and finally 190 sample populations were
selected by the lottery method from the twenty branches. The survey was made on 182
samples of the 700 clerical staff of the district. Out of the 182 samples 82% of them were
male & the remaining were female respondents and 65% of them were between the age of
20 to 30 and the rest were above the age of 30. The correlation between demographic
characteristics and most of the study variables were found very weak and insignificant
Pearson correlation showed that there are positive and medium effect size relationship
between the dependent variable and the independent variables (Promotion=0.35,
Training=0.33, Compensation=0.32 and Selection=0.28) and employees perceived that
they performed in a rage between better to higher (Mean=4.0948, SD=0.64179) as
compared with other colleagues within CBE & other banks. From the Person Correlation
Coefficient it could be deduced that HR practices have the capacity to describe employee
perceived performance in CBE, Jimma district. The value of R2was 13% in regression
analysis which portrayed 13% variability in employee perceived performance is explained
by the HR practices namely Training, Promotion, Compensation and Selection in CBE,
Jimma district.
From the result it can be also concluded that all the hypotheses were accepted. Based on
the findings it was realized that HR practices could bring variability and has an impact on
employees' perceived performance of CBE, Jimma district. The findings have important
implication for the management in Commercial Bank of Ethiopia particularly in Jimma
district. In order to improve employees' performance, the bank has to improve their
human resource practices. The bank management needs to use and/or develop and
improve professional, fair and objective human resources management system and
practices in order to improve the performance of the employees and hence the district.
