Effect Of Strategic Human Resource Management Practices On Employees Performance In Selected Private Banks In Jimma Districts

Abstract

This paper was aimed to examine the effect of SHRM practices on employee performance in private banking sector in Ethiopia in jimma Districts. This study used descriptive research design to show the effect of strategic human resource management practices on employee performance, the study population, which consisted of employees in the private banks in Jimma town, and the sample size comprised 165 respondents. To achieve the study objectives, the researcher developed and distributed a questionnaire, asked interview questions and collected and analyzed the data using SPSS, correlation analysis was done by use of Pearson correlation coefficient in order to establish the kind of relationship existing between the independent variables and the dependent variable while ANOVA was done in order to investigate whether the variation in the independent variables explain the observed variance in the outcome. To establish the contribution of each of the independent variables multiple regression analysis was carried out. The correlation results indicated that strategic recruitment and selection, strategic training and development, strategic performance appraisal and strategic compensation significantly correlated with the employee performance in private banks in Jimma Districts. The regression result shows that 75.5% of the variance in employee performance could be explained by the independent variables Recruitment, Selection, Training, Development, Performance Appraisal and Compensation. The paper provided recommendations for the organizations that they should arrange other forms of benefits to keep employees motivated and improve the factors and to make its employees the major source of competitive advantage.