The Effect of Strategic Human Resource Management Practice on Employee Performance : in the Case ofAwash Bank

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Date

2025-01-22

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AAU

Abstract

This study aims to analyze the effect of strategic human resource management practice on employee performance in the case of Awash Bank at head office and southern Addis Ababa district branches. The research adopts quantitative research approach in which both descriptive and explanatory research design are applied. For which stratified sampling techniques have been to select the study sample from the target population of the study. Out of the 152 of the bank employees approached for the study from Awash Bank at head office and southern Addis Ababa district 141 employees effectively responded to the research survey questionnaire. Both primary and secondary data sources were applied for this study. The secondary data was used to assess the existing processes, policies, procedures, and forms utilized by the HR department of the Awash Bank while the primary data was collected through a questionnaire that included mainly close-ended questions and some open-ended questions which were applied for respondents at managerial positions. Quantitative data obtained from the survey analyzed using SPSS software package. Statistical analysis techniques like correlation and regressions methods are used to examine the relationship between the dependent Employee performance in our case and independent variables which are SHRM practices such as career planning, training & development, performance appraisal, recruitment, reward management and employee performance. The outcome of the quantitative analyses is presented using bar charts, graphs, pie charts, and tables. Accordingly, quantitative assessment outcomes are presented in the form of frequency distribution tables and bar graphs. The findings of the Regression analysis revealed significant positive correlations between four of the SHRM practices (independent variables) and employee performance metrics. Particularly the reward management and performance appraisal practices had the most substantial impact on employee performance outcomes. While Training & Development and Selection & Recruitment are also expressed positive relationship with the outcome variable, albeit weaker. This study contributes to the understanding of the positive relationship between effective SHRM practices and employee’s performance outcomes. Which in turn offers practical implications for HR strategies and practices in the banking sector.

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