| Abstract: | Companies that implement good strategic human resource management practices will be
able to achieve their goals in the long term and sustain their company in the relevant
industry, and having good strategic human resource management will be a key
competitive advantage for the company as a whole. The study was conducted to
investigate the of strategic human resource management practice on organizational
performance. To achieve the research objectives explanatory research design was
applied. The target population for this study constituted of employees working in Abay
Insurance Company the sample size drawn was 98. Pertinent data for the study were
gathered through structure and unstructured questionnaires. This study also used
stratified proportional sampling techniques. Lastly data analysis was done through
descriptive analysis and regression analysis. For the case qualitative part narrative
description method was used. The following results were summarized. The role of
Strategic Human Resource Management (SHRM) is reported by the mean value (2.38)
fall in the range (<3) qualitatively signifying low level. In addition, Abay Insurance
Company’s performance on its strategic human resource management is not at good
condition. This is affirmed by the mean value of 2.28 fall in the range (<3) qualitatively
signifying low level. Based on the finding the study concluded that the role of Strategic
Human Resource Management (SHRM) is scant in Abay Insurance Company. In
addition, nowadays On the other hand, this study has shown that SHRM is a key factor to
improve Organization performance. The results provide support to the model of SHRM, it
shows that Training and development, Performance Management System (PMS),
Placement system can positively affect the Organization performance. In this sense, it is
necessary for the company to organize training packages for their employees would be
more productive. Further, for the company it is better to reconsider the existing
Performance Management System (PMS). Moreover, it is necessary for company to
reconsider its placement system |
