THE EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEE PERFORMANCE: A CASE STUDY OF ETHIOPIAN SHIPPING AND LOGISTICS SERVICES ENTERPRISE(ESLSE)

Abstract

This study investigates the effect of three Human Resource Management (HRM) practices—recruitment, training, and compensation systems—on employee performance at the Ethiopian Shipping and Logistics Services Enterprise (ESLSE) in Addis Ababa. Using a quantitative explanatory research design, data from 159 valid questionnaires (33 managerial, 126 non-managerial) were analyzed with SPSS version 26, employing Pearson correlation and multiple linear regression. Results confirmed significant positive correlations between the HRM practices and employee performance, with high reliability (Cronbach’s alpha > 0.83). Recruitment showed the strongest effect, followed by training and compensation. The study recommends structured recruitment, continuous training, equitable compensation, and positioning HRM as a strategic function to enhance employee performance at ESLSE