Assessment of Human Resource Management Practice-The Case of Licha Hadya’s Farmers Cooperative Union Flour Factory, SNNPR, Hadya Zone

Abstract

Human Resource Management of business organizations is undoubtedly an area that demands substantial knowledge and skill as management of human capital is more difficult than managing material and financial resources. Though one may mimic the technology or financial capital of one organization, it is difficult, f not impossible to copy the manpower of another organization. It is very difficult to expect efficient and effective production in a business organization with out utilization of appropriate man power and the key behind effective and efficient utilization of the available human capital basically lies in human resource management system practiced in the organization. A cross-sectional descriptive study was conducted in Licha Hadiya’s Farmers Cooperative Union Flour Factory s a complex factory found in South Nations, Nationalities and peoples region (SNNPR) , Hadya zone in August, 2010. The objective of the study was to assess human resource management practice of the organization. A total of 10 employees (two of them are managers) were randomly sampled fro 33 employees. Data were collected from samples using self-administered structured questionnaire. The results showed that the practice of employee recruitment to get competent staff as well as the effort made to motivate the employees was very good. Also, majority of the employees reported that they are satisfied. Response of the managers revealed that no significant communication gap between the subordinates and supervisors and among subordinates was recorded so far. Also, the findings indicated that pre-prepared checklists were being used for salary increment and promotion. The basis for salary increment or promotion was reported to be combination of performance results and academic preparation. From the very principles of proper human resource management practice, it can be concluded that the management system of human capital of the organization is acceptable.