The Effects of Human Resource Practices Outsourcing on Human Resource Performance: On Selected Private Commercial Banks in Ethiopia
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Date
2018-06-14
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Addis Ababa University
Abstract
This research was conducted to examine the effect of Human Resource Practices Outsourcing on
Human Resource Performance in the case of Five Selected Private Commercial Banks in
Ethiopia. Purposive sampling technique was applied to draw respondents. Data was gathered
from 51 human resource professionals through questionnaire and from five human resource
mangers through interview. Both groups are working at Head Offices of the banks, all found in
Addis Ababa. Explanatory research design and quantitative approach are applied in this
research. Data were analyzed using statistical frequency table to determine the Human Resource
Practices Outsourced. Pearson correlation Coefficient (r) was used to determine the relationship
between each independent variable with the dependent variable Human Resource Performance.
The finding indicates that there is significant and positive relationship between Human Resource
Practices Outsourcing and Human Resource Performance. The result also indicates that an
increase in Outsourcing Human Resource Practices will bring positive change on Human
Resource Performance. The research has established that Private Commercial Banks which
adapted Human Resource outsourcing have achieved an improved HR performance related to
flexibility in running Training programs, cost reduction from Security Service and efficiency
improvement from health Care Service. Therefore, to exploit advantages of Human Resource
Outsourcing identified in this research and further improve Human Resource Performance in the
Private Commercial Banks, the researcher then suggests expansion in Outsourcing Human
Resource Practices. The interview result show that cost reduction related to Security Services
Outsourcing is more than 41% which is so significant. These banks are also advise to give due
care to investigate more on the reason of this large difference and expand to other practices. On
the other hand its fairness must also be checked to ensure that the gain remains sustainable.
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Keywords
Selected Private Commercial Banks, Outsourcing, Human Resource Outsourcing