The Interface between Strategic Human Resource Management Principles Implementation and Organizational Performance: A case study of ethio telecom

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Addis Ababa University


Strategic Human Resource Management (SHRM) is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies, integrated HR policies and practices. This paper examines the interface between strategic human resource management principles implementation and organizational performance of ethio telecom using data collected from 291 management employees of ethio telecom working in the head quarter. The study is mixed in its approach and explanatory in its design. The analysis of the descriptive statistics revealed that the respondents have moderate agreement regarding the implementation of SHRM principles in ethio telecom i.e vertical (internal) alignment of ethio telecom’s HRM strategies, policies and practices with the company vision, mission and strategies, the consistency and congruence of ethio telecom HRM policies and practices (horizontal alignment), the role of HRM unit in playing its strategic role and the role of line managers in playing their HRM role. In addition to this, the respondents have shown moderate agreement on the overall performance of ethio telecom in the past three and half years that is measured in the key perspectives defined based on balanced scorecard approach i.e customer perspective, finance perspective, internal process perspective and learning and development perspective. The correlation analysis results have shown that there is a high positive correlation in between overall performance of ethio telecom and ET HRM strategies, policies and practices vertical alignment with VMS & ET HRM unit strategic role and there is medium positive correlation between ethio telecom overall performance and ET HRM policies and practices consistency and congruence (horizontal alignment) & ET LM HRM role. The role of HRM unit in playing its strategic role have strong positive correlation with the company overall performance. The regression model has revealed that implementation of SHRM principles explains 37.5% of ethio telecom performance. The mediation analysis has proved that HR plays a partial mediation role in enabling the implementation of SHRM principles and impacting the organizational performance positively. From the analysis of the study, it can be concluded that the implantation of SHRM principles significantly explains the company performance. Hence, ethio telecom needs to give significant attention for VII implementation of SHRM principles. Given there are no studies conducted in ethio telecom on this topic, this study may be a herald for a much rigorous study



Strategic human resource management, ethio telecom, ethio telecom