The Impact of Human Resource Practices on Employees' Perceived Performance in Commercial Bank of Ethiopia, Jimma District.

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.