Impact of Human Resource Management Practices on Employee Performance: the Case of Amhara Bank Head Office
No Thumbnail Available
Date
2025-05-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
This study examines the effect of Human Resource Management (HRM) practices on employee performance within the context of a newly established bank. Effective HRM practices are increasingly recognized as key drivers of organizational success, particularly through their influence on workforce productivity and motivation. The research adopts a quantitative approach, utilizing structured
questionnaires to collect data from employees across various departments. A simple random sampling method was used to select a representative sample. A total of 222 questionnaires were distributed, and 213 valid responses were obtained, resulting in a 96% response rate. The study assessed five key HRM dimensions: training and development, performance appraisal, compensation and reward, recruitment and selection, and job security. Data were analyzed using SPSS through descriptive statistics, correlation, and multiple linear regression. The regression analysis revealed that performance appraisal (β = 0.364), compensation and reward management (β = 0.265), training and development (β = 0.197), and job security (β = 0.158) had statistically significant positive effects on employee performance (p < 0.05), while recruitment and selection did not show a significant impact. The model explained 64.2% of the variance in employee performance (Adjusted R² = 0.642). These findings highlight the critical role of strategic HRM practices in enhancing employee performance and organizational efficiency. The study offers practical recommendations for HR policy improvements and provides a foundation for future research in the banking sector.
Keywords: Training and Development, Performance Appraisal, Compensation and Reward, Recruitment and Selection, Job Security, Employee Performance, Amhara Bank.