EMPLOYEE RELATIONSHIP MANAGEMENT AND ITS EFFECTS ON EMPLOYEES’ PERFORMANCE CASE OF HOSEA TRADING HOUSE

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