THE EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEES’ PERFORMANCE: THE CASE OF ADDIS ABABA CITY ADMINSTRATIVE MAYOR’S OFFICE

Abstract

Human resource management practices are concerning with the management of human resource activities to maximize employee’s performance. Human resource management decision making for action usually based on subjective and personal opinion rather than acting according to rules and policies, facts, plan action another one the past two years the mayor’s office is loosing qualified employees’ for better compensation and employee opportunity, since human resource department of the office has not played key roles and functions to improve employees’ performance. So, the purpose of this study was to assess the effect of human resource management practice on employee performance in Addis Ababa city Administration mayor office, to explain the correlation between selected human resource practices and employees’ performance .The study obtained information from 129 respondents from staff of Addis Ababa city Administration mayor office through the use of questionnaire and Using quantitative data, Data was analyzed through Statistical Package for the Social Sciences version 27 by applying descriptive statistic and regression analysis. The results indicated that, selected human resource management practice (performance appraisal, training and development, selection and recruitment, compensation and reward) are least practise the office and the correlation and regression analysis showed that performance appraisal, compensation/reward and Training & development have positive and significant relationship with employees. Among the recommendations made were that Pay should be enough to help employees feel secure and aid for Satisfying basic needs of organization ‘s employees and performance appraisal is resulting a powerful tool. It provides to documented feedback on an employee ‘s level of performance. Compensation policy might be developing clear criteria to make the compensation packages paid fairly. This is a mechanism of minimizing compliance about compensation by organization employees.