| Abstract: | This study investigates the effects of Employee Relationship Management (ERM) on employee
performance at Hosea Trading House PLC in Addis Ababa, Ethiopia. The research focuses on five
key components of ERM: HR practices, communication, trust, shared goals and values, and
leadership styles. A quantitative approach was employed, with data collected from 72 employees
through structured questionnaires. Descriptive statistics, correlation analysis, and multiple
regression were used to analyze the data.
The findings reveal that trust has the strongest positive impact on employee performance, followed by
communication and leadership styles. Shared goals and values also showed a significant but weaker
effect. Surprisingly, HR practices were found to have a negative relationship with performance,
suggesting potential issues in their implementation. The regression model explained 90.2% of the
variance in employee performance, highlighting the critical role of ERM in enhancing workplace
productivity.
The study concludes that fostering trust, improving communication, and aligning leadership styles
with organizational goals are essential for boosting employee performance. Recommendations
include enhancing managerial trust in employees, involving staff in goal-setting, and reevaluating HR
practices to ensure they positively contribute to performance. This research contributes to the limited
literature on ERM in Ethiopia and provides practical insights for organizations aiming to improve
employee relations and performance |
