Abstract:
The main objective of this study was to assess HRM practices and to explore its effect on employees’
performance in public sectors of Limu kosa woreda. To achieve the intended objective, this study
employed a correlational research design. Based on the research design, two sets of quantitative data
was collected. The first set of quantitative data was collected through HRM practice survey
questionnaire from318 participants who were randomly selected from 11public sectors. The second
set of quantitative data was collected through document analysis of participants’ efficiency score from
their respective sectors. Based on the basic research questions, the collected numerical data was
analyzed using descriptive (mean &st. deviation) and inferential (correlation & regression) statistics
through SPSS version 20.Based on the results of this study, the researcher concluded that, the
strength of the association between HRM practice and Employee performance is a significant&
moderate. When examined individually, performance appraisal is relatively strong predictor.
Training and Employee involvement of HRM practices are relatively moderate and significant
predictors whereas Compensation is not a significant predictor of Employee performance in the study
area.Depending on the finding of this study, the following recommendation was forwarded to Limu
kosa wereda public sectors ‘office leaders and HR personnel. It is recommended that HRM need to
conduct a sustainable survey on their own practices, study it, and create an action plan for further
improvement. They need to nurture the performance appraisal practice of their HR because this
variable predicts best the employee performance in public sectors of the study area. It is also
recommended that, HRM to foster strong effort on employees through providing training, involving in
planning of sector activities and regular discussion on their experience & encouragement
(compensation), because these could bring a remarkable change on employees’ skill and motivation
and in turn may bring a strong improvement on employees’ performance.