Analytics of Crowd Funding
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Date
2021-06
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A.A.U
Abstract
The aim of this study was to investigate the impact of human resource management practice on
organizational commitment and perceived organizational performance. The nature of this study
was a cross sectional survey design with a quantitative approach. The population of this study was
employees working in public sector organizations in Ethiopia. A total of 375 questionnaires with a
95% response rate were collected from public sector employees working in 24 Federal and Addis
Ababa City Administration offices in Ethiopia using convenient sampling technique. A
standardized five-point Likert scale questionnaire was used to gather the necessary data. The
Pearson correlation and multiple linear regression as well as a partial least square methods were
used in the data analysis process. The Pearson correlation analysis result at the 0.01 level (2-
tailed) levels, clearly shows that there is a moderate level association between four HRM practices
(training and development, performance appraisal, promotion, recruitment and selection) and
organizational commitment. But the least link is obtained between employee compensation
management practice and organizational commitment. Moreover, the regression analysis result
shows that all the five HRM practices namely recruitment and selection, performance evaluation,
training and development, compensation management and promotion have the ability to influence
organizational commitment. The result also revealed that a positive and moderate link between the
four HRM practices (training, recruitment and selection, promotion, and performance evaluation
practices) and organizational performance, while there is a weak link between compensation
management practices and organizational performance. Similarly, the multiple regression analysis
result revealed that, all the five HRM practices namely recruitment and selection, performance
evaluation, training and development, compensation management and promotion practices have
the ability to influence organizational performance. The result shows that there is a moderate and
positive correlation between all organizational commitment elements (normative, continuance and
affective) and organizational performance. The Partial least square and Soble calculation result
shows that organizational commitment significantly mediates the relationship between HRM
practices and organizational performance. It can be concluded that there is a positively linear
relationship between HRM practice, organizational commitment and organizational performance.
Bearing in mind the positive link between HRM practices on the organizational commitment and
organizational performance schemes, public sector organizations should give greater emphasis on
establishing effective HRM practices in their organizations.
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Keywords
HRM Practices, Organizational Commitment, Organizational performance