THE ASSESSMENT OF HUMAN RESOURCE MANAGEMENT PRACTICES (THE CASE OF KOLFE KERANIO SUB-CITY ADMINISTRATION) PDF

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SELECT BUSINESS AND TECHNOLOGY COLLEGE DEPARTMENT OF MANAGEMENT

THE ASSESSMENT OF HUMAN RESOURCE MANAGEMENT PRACTICES (THE CASE OF KOLFE KERANIO SUB-CITY ADMINISTRATION)

RESEARCH PAPER SUBMITTED TO SELECT BUSINESS AND TECHNOLOGY COLLEGE FOR PARTIAL FULFILLMENT OF BA DEGREE IN MANAGEMENT.

BY:

Abay Gebeyaw

ADVISOR: Kiflu Chekol (Master’s) ADDIS ABABA, ETHIOPIA January, 2022

ABSTRACT Background: Human Resource (HR) is the most important asset for any organization and it is the source of achieving competitive advantage. Without having adequate human resource, the organization will be unable to achieve established goals and objectives. The main aim of this study is to assess the Human Resource Management practices of Kolfe Keranio Sub-city administration. Methods: Using questionnaire to collect data from 85 participants that would be recruited as a sample by using sample random sampling method. Result : The findings show that there are gaps in HRM practices in Kolfe Keranio Sub-city administration. Conclusion and recommendation: based on the findings of this study, recruitment and selection, performance appraisal and training and development, were the main variables that attract, motivate and retain employees in organizations. Therefore, Kolfe Keranio Sub-city administration should work toward improving the HRM practices to achieve the goal of the organization. Key words: Human resource management, recruitment and selection, performance appraisal and training& development.

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Table of Contents DECLARATION...............................................................................................................................................i ABSTRACT................................................................................................................................................ii ACKNOWLEDGEMENTS........................................................................................................................iii List of table.................................................................................................................................................vi Abbreviations/ Acronyms..........................................................................................................................vii CHAPTER ONE..........................................................................................................................................1 INTRODUCTION.......................................................................................................................................1 1. Introduction...........................................................................................................................................1 1.1. Background of the study...................................................................................................................1 1.3. Statement of the problem..................................................................................................................3 1.3. Objective of the study.......................................................................................................................6 1.3.1. General objective.......................................................................................................................6 1.3.2. Specific objectives.....................................................................................................................6 1.4. Research questions...........................................................................................................................6 1.5. Scope of the study.............................................................................................................................7 1.6. Significance of the study..................................................................................................................7 1.7. Limitation of the study......................................................................................................................7 1.8. Organization of the study..................................................................................................................7 1.9. Definition of operational terms.........................................................................................................8 CHAPTER TWO.........................................................................................................................................9 LITERATURE REVIEW............................................................................................................................9 2. Literature review.....................................................................................................................................9 2.1. Theoretical literature.........................................................................................................................9 2.2. Empirical literature.........................................................................................................................10 2.3. Conceptual literature.......................................................................................................................11 2.4. Research gap...................................................................................................................................12 2.5. HRM Practice in Ethiopia...............................................................................................................12 2.6. HRM in the Public Sector...............................................................................................................15 2.7. HRM Functions..............................................................................................................................15 ii

2.7.1. Recruitment and Selection.......................................................................................................15 2.7.2. Performance Appraisal.............................................................................................................16 2.7.3. Employees training and Development.....................................................................................18 CHAPTER THREE...................................................................................................................................20 RESEARCH METHODOLOGY..............................................................................................................20 3. Introduction to Methodology.................................................................................................................20 3.1 Study setting....................................................................................................................................20 3.2. Research design..............................................................................................................................20 3.3. Source of data.................................................................................................................................20 3.4. Population, sample size and sampling technique............................................................................21 3.4.1. Population....................................................................................................................................21 3.4.2. Sample Size.............................................................................................................................21 3.4.3. Sampling techniques................................................................................................................22 3.5. Data Collection instruments............................................................................................................22 3.6. Data Processing, analysis and interpretation...................................................................................22 3.7. Research Ethical Considerations.....................................................................................................22 CHAPTER FOUR.....................................................................................................................................24 DATA PRESENTATION AND ANALYSIS..........................................................................................24 4 Introduction........................................................................................................................................24 4.1.Response Rate.................................................................................................................................24 4.2. Background of the respondents.......................................................................................................24 4.3 Recruitment and selection................................................................................................................26 4.4.Performance Appraisal....................................................................................................................29 4.5.Training and development...............................................................................................................32 CHAPTER 5..............................................................................................................................................36 FINDING, CONCLUSION AND RECOMMENDATION.......................................................................36 5.1 FINDING.........................................................................................................................................36 5.2 Conclusion.......................................................................................................................................37 5.3.Recommendations...........................................................................................................................38 5.4 Direction for future research............................................................................................................38 Annexes/Appendices..................................................................................................................................iii

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List of table Table 4.1 Response Rate..............................................................................................................24 Table 4.2 Background information of respondent....................................................................25 Table 4.3: When you were recruited for the first time to join this organization, how did you find the job opening?.....................................................................................................26 Table 4.4:Type of instrument used by the organization while selecting employees...............27 Table 4.5: Level of agreement on Recruitment and selection..................................................28 Table 4.6: Responsible body for evaluation of employees........................................................30 Table 4.7:Level of agreement on Performance appraisal.........................................................31 Table 4.8: Participation on training...........................................................................................32 Table 4.9: Frequency of attaining training................................................................................33 Table 4.10 Level of agreement on training and development..................................................34

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Abbreviations/ Acronyms HRM= Human Resource Management HRD= Human Resource Development CSRP=Civil Service Reform Program PSCAP=Public Sector Capacity Building Program EPRDF=Ethiopian People’s Republic Democratic Front CPA=Central Personnel Agency FCSA=Federal Civil Service Agency

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CHAPTER ONE INTRODUCTION 1. Introduction This study examine the human resource management practices of Kolfe Keranio Sub City Administration. Human Resource (HR) is the most important asset for any organization and it is the source of achieving organization’s goals and objectives. Without having adequate human resource, the organization will be unable to achieve established goals and objectives’; hence managing human resource is the key for success of an organization. [ CITATION Jor17 \l 1033 ] Human resource management practices are policies and practices that govern the organization’s human resources and some of these include recruitment and selection, training and development, and reward systems within the organization. (De Saa´ Pe´rez and Garcı´a Falco´n, 2004; Kidwell and Fish, 2007) There are a number of human resource management practices that contribute to the performance of employee. (Huselid, 1995). Delery and Doty, (2006) identified seven such practices that have been consistently considered strategic HRM practices. They include internal career opportunities, formal training systems, results-oriented appraisals, employment security, participation, job descriptions, and others. This chapter therefore presents the background to the study, back ground of the organization, statement of the problem, basic research questions, objectives of the study, Scope of the study, Significance of the study, Limitation of the study and operational definition of terms. 1.1. Background of the study The principal component of an organization is its human resource or ‘people at work’. According to Leon C. Megginson 2014 from the national point of view Human Resources as, “the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the view point of the individual enterprise, they represent the total of inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.”[ CITATION cMe14 \l 1033 ]

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[ CITATION Can15 \l 1033 ] Founded in his study Human resources are the key for keeping the

organization in the market so competitive. These human resources need to be managed effectively to achieve the required performance of the organization. Human resource management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Many companies refer to HRM as involving “people practices” (Saiyadain, Sodhi and J). There are different human resource management practices from organization to organization. The management practices differ based on the business type of organization, the type of human resources needed, type of management style the organization is following etc… Other factors like the financial strength, the physical structure and the climatic environment of the organization are also some of the reasons for having different human resource management practices. The human resource of the organization consist all the staff members who take part in any of the organization’s activity. The human resource is the active resource of the organization than all other resources the organization has. The Human Resource (HR) of an organization consists of all staff (core operation and supporting staff) engaged in any of the organization’s activities. It is well recognized that the human resources of any organization are its most valuable asset. (Lusthaus, Anderson &Murph1995:35-36). There are several important HRM practices that should support the organization’s business strategy: analyzing work and designing jobs, human resource planning, recruiting, selection, training and development, performance management, compensation, and employee relations. An organization performs best when all of these practices are managed well (Noe, Hollenbeck, Gerhart and Wright, 2011). Human resources are considered the most valued assets to the organization where people or employees operate in an integrated system (Denton, 2006). It is important for organizations to adopt human resource management (HRM) system as it is able to help organization to achieve competitive advantage. According to resource–based view competitive advantage of an organization lies primarily in the application of the bundle of valuable resources at the organization’s disposal (Barney, Wright and Ketchen, 2001). Traditionally, sources such as natural resources, technology & economies of scale could create competitive advantage for organizations but these traditional sources have lost competitive advantage as they could be imitated by the competitors easily (Stiles & Kulvisaechana, 2004). As a result, HR has replaced them as a main source of competitive advantage. High quality HR 2

enables organizations to compete on the basis of market responsiveness, quality of product and services, differentiated product and technological innovations (Becker, Husselid & Ulrich 2001). Different researchers showed the link between HR Practices and various types of performance and the link is significantly positive (Armstrong, 2009). HRM practices have positive effects on the employees’ job performance and the results unraveled that some not all the HRM practices correlate significantly with employee job performance even though all are related. (Tablu, 2013). To compete and achieve organizational goals, the organization is required to have effective and efficient workforce. Therefore, this study has aimed to examine the HRM practices in Kolefe keranio sub city administration. This research attempt to assess the HRM practices of Kolefe keranio sub city administration. The results of this research will be helpful for the organization to improve HRM practices to enhance organizational performance. 1.3. Statement of the problem Among the resources, human resource is of the essential and foundation for other resources such as financial resource, physical & capital assets and technological resources. It is the most critical one that makes a difference in an organization’s performance (Kassa, et al, 2011). According to (Allen & Wright, 2007) as cited by Seidu (2011) people and the management of people are increasingly seen as key elements of competitive advantage. The extent to which a workforce is managed effectively is a critical element in improving and sustaining organizational performance. When an organization set a goal to be chive, consider which type of manpower is needed, what type of skill and knowledge is needed, when is should recruited and how it recruited. So as every organization should have a strategic plan intended to achieve, they must have a strategic human resource plan that is aligned with the organizations strategic plan. Thus, strategic human resource management mainly focuses on linking human resource planning efforts to the organization's strategic direction, i.e. translate the organizations strategic goal and objective into the number of workers needed to meet those goals and objective (Armstrong, 2006). Thus, the human management dimension must therefore be fully integrated into the strategic planning process to be effective and efficient.

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Recruitment and selection is a crucial function in public as well as private business organization. The organization should be ensuring that if there is skilled, knowledgeable and competitive manpower in the organization at the right position at the needed time. The number and categories of people required should be specified in the recruitment program, which is derived from the human resource plan (Armstrong, 2006). Similarly, performance appraisal is an important factor in human resource management. Performance appraisal is a formal system of periodic review and evaluation of an individual's or team job performance (Beardwell e al, 2004). Armstrong (2006) defined it as the formal assessment and rating of individuals by their managers as, usually, an annual review meeting that tended to be backward looking, concentrating on what had gone wrong, rather than looking forward to future development needs. It is activities through which organizations seek to assess employees and develop their competence, enhance performance and distribute rewards to motivate them. Improper utilization of human resource leads the organization to poor performance. Nyameh and James (2013) on their study of Human Resource Management, Ci...