The Effects of Human Resource Development Practices in Enhancing Employee Satisfaction: In Case of Commercial Bank of Ethiopia Jimma District

Abstract

Employee satisfaction with regard to HRD practices are one of the most important challenges that public service industries are facing in currently competitive market and HRD practices are found to be most important factor for creating satisfaction among employees. Many studies have been conducted to determine predictors of employee satisfaction but these studies not focused at regional level. CBE similar to the other organizations attempt to increase employee job satisfaction. In this regard, HRDP can have a critical role. Among different HRD practices, this study focused on training and development, career development and organizational development. Therefore, the purpose of this study was to assess employees’ satisfaction with HRD practices on training and development, career development and organizational development elements in Commercial Bank of Ethiopia (CBE) of Jimma town. the population of the study covered the entire 500 permanent staffs and the sample size of 220 employees were drawn through random sampling method with the combination of simple random sampling technique. self-administered questionnaires and interviews were used as a primary data source while other relevant documents and literature reviews were used as secondary data and analyzed with descriptive statics (mean and frequency) and inferential statics (correlation and regression). Accordingly, the findings revealed that the organization has poor HRD practices that show below average level of employees’ satisfaction. The results from Pearson Correlation test demonstrated that there is a significant and positive relationship between predictors and dependent variables while the Multiple Regression analysis revealed that the two variables called training and development and career development are an effective predictors while organization development is not effective predicator of the dependent variable in this model. Moreover, the three HR development variables such as training and development and career development have significant effect on employee satisfaction and organizational development have a less effect on employee job satisfactions.