Aveneu Park, Starling, Australia

1. employees with specific knowledge and skills

1. IntroductionHuman Resource Management can be described as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. It has a strong conceptual basis drawn from the behavioural sciences and from strategic management, human capital and industrial relations theories. This foundation has been built with the help of a multitude of research projects (Armstrong, 2010).Human resource management (HRM) is the policies, practices, and systems that influence employees’ behaviour, attitudes, and performance. Many companies refer to HRM as involving “people practices”. There are several important HRM practices that should support the organization’s business strategy: analyzing work and designing jobs, determining how many employees with specific knowledge and skills are needed (human resource planning), attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), evaluating their performance (performance management), rewarding employees (compensation), and creating a positive work environment (employee relations). An organization performs best when all of these practices are managed well. At companies with effective HRM, employees and customers tend to be more satisfied, and the companies tend to be more innovative, have greater productivity, and develop a more favourable reputation in the community (Raymond A. Noe, 2011).Organizational performance (OP) is an indicator which measures how well an enterprise achieves their objectives (Hamon, 2003). Organizational performance is concerned with product or service quality, product or service innovation, employee attraction, employee retention, customer satisfaction, management/employee relation and employee relation (Delaney and Huselid, 1996). Human resources have been identified to be both valuable and a source of competitive advantage (Legge, 1995). According to Bontis (1999), the human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the organization. Delery (1998) observed that the methods used by an organization to manage its human resources can have a substantial impact on many organizationally relevant outcomes.When organizations face challenges such as an economy recession, it depend thoroughly trained professionals who react quickly to changes in the environment and create strategies for success. Human resource management (HRM) is responsible for carefully selecting and training people with the necessary skills to pursue the strategy effectively. Some external factors can be predicted; others, such as the collapse of large banks and insurance companies, can seemingly come out of nowhere (P.Robbins, 2010).International Journal of Recent Advances in Organizational Behaviour and Decision Sciences (IJRAOB)An Online International Research Journal (ISSN: 2311-3197)2016 Vol: 1 Issue: 1645www.globalbizresearch.orgAccording to Noe et al. (2011) human resource management is critical to the success of organizations because human capital has certain qualities that make it valuable. In terms of business strategy, an organization can succeed if it has a sustainable competitive advantage (is better than competitors at something and can hold that advantage over a sustained period of time). Therefore, we can conclude that organizations need the kind of resources that will give them such an advantage.Employees are one of the most important assets of an organization as they contribute to its growth and success (Danish and Usman, 2010). Malik et al. (2010) concluded that in the era characterized by rapid and continuous change, knowledge capital must be retained in order for organizations to be productive and responsive to the needs of their stakeholders. Likewise, universities as training and research institutions need to attract, retain and develop their employees. Universities need employees who are well trained and motivated so that they are committed to their work of conducting research and training for the development of the nations (Lew, 2009). Research literature has shown that effective application of some human resources management (HRM) practices enables university employees to be committed to their work for good performance of the universities (Chen et al., 2009; Shahzad et al., 2008).Implementation of appropriate HRM practices for university employees will promote university performance as Lew (2009) noted that employees play a strategic role in improving ratings in key areas like research quality, academic reputation of faculty, academic program quality, research contribution to society, preparation of tomorrow’s leaders and quality of graduates. Realizing the importance of promoting university performance, many universities are embarking into strategizing its HRM (Sirat, 2005). For this to materialize, it is significant that the country’s universities improve their world class university ranking by attracting and retaining excellent and experience academicians and support staff.One of the sectors which will play an important role is education especially the higher learning institutions. The nation needs more human resources capable of performing different activities both in public and private sectors. Subsequently, the higher learning institutions are expected to produce high-quality human resources. Malik et al. (2010) training and development of well-qualified human resources will depend on the performance of the universities subjected to effective implementation of different bundles of HRM practices such as selection, compensation, information sharing, participative decision making, job definition, training, career planning and performance management among others.Little empirical research has been conducted to examine the effects of HRM practices on public universities performance in Ethiopia. In order to effectively investigate whether human resources are capable of contributing to competitive advantage, it is pragmatic to examine HRM practices in as many settings as possible. Therefore, this study is to examine the impactInternational Journal of Recent Advances in Organizational Behaviour and Decision Sciences (IJRAOB)An Online International Research Journal (ISSN: 2311-3197)2016 Vol: 1 Issue: 1646www.globalbizresearch.orgof HRM practices on organizational performance in Ethiopia with a particular focus on a Debre Berhan University.1.1 Statement of the ProblemImpact of Human Resource Management practices on organizational performance has been a widely researched area. Result of studies, from developed countries to developing countries; have been time and again showing that HR practices have significant impact on organizational performance. But unluckily, very insufficient numbers of studies have been conducted in this area context of Ethiopia and other developing countries. To augment the contemporary knowledge base of HR practices of developing countries, this study has been undertaken. This study assessed the impact of human resource management on organizational performance and investigates impact of Debre Berhan University’s four human resource practices (recruitment & selection, training & development, compensation and performance appraisal) on organization performance.Although, it was accepted that HRM is positively related to organizational performance. There is a great need for additional evidence to support the HRM-performance relationship from different contexts.The observations of the researcher in Debre Berhan University, teaching and non-teaching staff criticize about they are not satisfied with their wellbeing in terms of compensation i.e. wages and benefits. There are no sufficient salary and reward. Due to these motives top quality performers (employees) of public organizations have been moved to other private, non-governmental organization and other countries. There is no significant work in public organizations in the context of human resource management and the reason is that top management never realize the needs and demands of their employees. As a result to develop a better understanding the research is carried to know the benefits to practice the HR and evaluating the losses if don’t.Country in the growing phase like Ethiopia needs to know the contribution of different factors and the intensity of their impact on organizational performance that leads towards economic development and prosperity. Ethiopia is gradually shifting from agriculture to industrial economy and therefore it is important to determine empirically, the contribution of different factors like, HRM practices towards organizational performance. Because as Bennett (1983) has written importing approaches from one country to another may not work. For example the Japanese approaches may fail because of cultural attitudes and values are different. In order to work effectively, such approaches will have to be fitted to the culture. In our country, there are a large numbers of employees working on public organizations and most of them are unsure about their satisfaction towards the HRM practices and with the job. Also it’s difficult to get published researches that addressed the effect of human resource management practices on organizational performance in public organizations.International Journal of Recent Advances in Organizational Behaviour and Decision Sciences (IJRAOB)An Online International Research Journal (ISSN: 2311-3197)2016 Vol: 1 Issue: 1647www.globalbizresearch.org1.2 HypothesesOn the basis of extensive literature review six hypotheses were developed for the study. They are:Hypothesis 1: HR practices have significant association with organizational performanceHypothesis 2: HR practices have significant impact on organizational performanceHypothesis 3: Recruitment and selection positively influences on organizational performanceHypothesis 4: Training and development positively influences on organizational performanceHypothesis 5: Performance appraisal positively influences on organizational performanceHypothesis 6: Compensation positively influences on organizational performance


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