Yared Asrat(PhD)Hailemichael Shemels2023-12-192023-12-192022-06-09http://etd.aau.edu.et/handle/123456789/1104Employees who exhibit a strong commitment to their respective organizations typically display a high level of punctuality, dutifully adhere to corporate policies and are less prone to quitting their jobs, characteristics that are closely associated with employee retention. The present research endeavors to scrutinize the influence of human resource management (HRM) practices, namely (planning and recruitment, training programs, compensation and performance appraisal,) on employee satisfaction within the context of Dugda Construction. The primary aim of this study was to investigate the impact of HRM practices on employee satisfaction in Dugda Construction. Using a causal research design, primary data sources were employed and a random sample of 202 employees was selected. The primary data was generated from sample employees using a structured questionnaire. Simple descriptive statistical tools were employed with the assistance of SPSS software to analyze the data, which was presented using tables. Through regression analysis, this study established that planning and recruitment, training programs, compensation, and performance appraisal exert a significant impact on employee satisfaction. The findings demonstrate a positive correlation between HRM practices, namely (planning and recruitment, training programs, compensation, and performance appraisal,) and employee satisfaction in the context of a developing economy. Additionally, future research should explore the HRM-performance relationship, as well as the connection between HRM, employee work, working environment, culture, and employee well-being. To enhance company success, it is recommended that the organization improves the quality of HRM dimensions and provides training programs to enhance employee satisfaction. Furthermore, the company should increase transparency in the recruitment process for both current and potential employees. Finally, implementing a more equitable incentive system that offers employees additional benefits beyond the basics is crucial.enHuman Resource Management Practices, Planning & Recruitment, Training Programs, Compensation, Performance Appraisal, Employees’ Satisfaction, Dugda construction Company.Thesis