EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON

ORGANIZATIONAL PERFORMANCE IN CASE OF BONA ZURIA

WOREDA EDUCATION OFFICE SELECTED PRIMARY SCHOOLS

MBA THESIS

BY BELAYNEH GARSAMO DARU

DEPARTMEN MANAMENT

COLLEGE OF BUSINESS AND ECONOMICS

HAWASSA UNIVERSITY

HAWASSA, ETHIOPIA
DECEMBER, 2022
EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON
ORGANIZATIONAL PERFORMANCE IN CASE OF BONA ZURIA
WOREDA EDUCATION OFFICE SELECTED PRIMARY SCHOOLS

MBA.THESIS
BY BELAYNEH GARSAMO DARU

MAJOR ADVISOR: - ASHENAF KEBEDE (PhD)

CO-ADVISOR:- BIRHANU TARIKU (MA)

THE RESEARCH PAPER SUBMITTED TO HAWASSA UNIVERSITY

SCHOOL OF POST GRADUATES STUDIES IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
MASTERS OF BUSINESS ADMINISTRATION IN HUMAN RESOURCE
MANAGEMENT.
 APPROVAL SHEET

SCHOOL OF GRADUATE STUDIES

HAWASSA UNIVERSITY

This is to certify that the research thesis entitled” Effect of Human Resource Management
Practices on Organizational Performance in case of Bona zuria woreda education office
selected primary schools” submitted in partial fulfillment of the requirements for the degree of
Masters of Business Administration with specialization in Human Resource Management, the
Graduate Program of the School of Management and Accounting, and has been carried out by
Belayneh Garsamo. ID. No PGSHUHRM/0006/13, under our supervision. Therefore, we
recommend that the student has fulfilled the requirements and hence hereby can submit the thesis
to the school of management and Accounting.
Belayneh Garsamo
Submitted by: Signature Date

----------------------------------- ----------------------- --------------------------------

Approved by:
1. Name of Major Advisor Signature Date

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2.Name of Co- Advisor Signature Date

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3._________________ _________________
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Department Signature Date

v
 SCHOOL OF GRADUATE STUDIES
HAWASSA UNIVERSITY
EXAMINERS APPROVAL SHEET

We, the undersigned, members of the Board of Examiners of the final open defense by Belayneh
Garsamo have read and evaluated his thesis entitled “Effect of Human Resource Management
Practices on Organizational Performance in case of Bona zuria woreda education office
selected primary schools and examined the candidate. This is, therefore, to certify that the
thesis has been accepted in partial fulfillment of the requirements for the degree of Masters of
Business administration in Human resource Management.
____________________________ __________________ _____________
Name of the chair person Signature Date
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Name of Principal Advisor Signature Date
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Name of Co-Advisor Signature Date
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Name of internal examiner Signature Date
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Name of External examiner Signature Date
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SGS Approval Signature Date
Final approval and acceptance of the thesis is contingent up on the submission of the final copy
of the thesis to the school of Graduate Studies (SGS) through the school Graduate committee
(DGC/SGC) of the candidate‟s department.

vi
ACKNOWLEDGEMENTS
First and for most, I would like to give my glory and praise the Almighty Lord JESUS
CHIRIST for his invaluable cares and supports all the way through the course of my life and
helped me since the inception of my education to its completion and enabled me to achieve my
career.
Secondly I would like to express my heartfelt and sincere gratitude to my advisor Dr. Ashenafi
Kebede for his diligent paternal and professional assistance and dedication of precious time in
reading and correcting this research from commencement to the end. My appreciation also goes
to my co-advisor Berhanu. Tarku (MBA) for his invaluable support and constructive comments.
I am happy to give my special thanks to the Bona zuria woreda selected primary schools teachers
and heads for their great support in supplying relevant and up to date information. I am also glad
to thank my father Garsamo Daru and my mother Fasile Hameso for their support and advice.
Finally, I would like to express my gratitude to my friend Altamo Turche who has been
invaluable support has contributed a lot to the accomplishments of this paper.

vii
 SCHOOL OF GRADUATE STUDIES

HAWASSA UNIVERSITY

Declaration
I, hereby declare that the thesis entitled “ Effect of Human Resource Management Practices on
Organizational Performance in case of bona zuria woreda education office selected primary
schools” Sidama national regional state, Ethiopia” submitted by me for the award in Master of
Business Administration in Human Resource Management at Hawassa University is my original
work and it has not been presented for the award of any degree, diploma , fellowship or other
similar titles of any other university or institution and that all sources of materials used for this
thesis have been dully acknowledged.
By: Belayneh Garsamo (PGRS HUHRM 0006/13)
Signature: _________________ Date: _____________________
This proposal thesis has been submitted for examination with our approval as university
advisors.

Name of major advisor: Ashenafi Kebede (PHD)

Signature: –––––––––––––––––––
Date: ––––––––––––––––––––––

Name of co-advisor: Berhanu Tarku (MBA)

Signature: –––––––––––––––––––––––––
Date:–––––––––––––––––––––––––––––

Department
Signature: ––––––––––––––––––––––––– Date:–––––––––––––––––––––––––––––

viii
List of Abbreviations
ANOVA: Analysis of Variance
BWEO: Bona Woreda Education office
BWFEDO: Bona Woreda Finance and Economic Development Office
CD: Career development
HRM; Human resource management
HR: Human Resource
PA: Performance Appraisal
SPSS: Statistical Package for the Social Sciences
TP: Training Program
CM: Compensation management

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 ABSTRACT

Now days, an effectiveness of an organization depends on the quality of its human resources and
human resources management strategy being an integral part of organizations‟ strategic plan
and its practicability. Hence, this research attempts to assess the effects of human resource
management practice on organizations‟ performance in Bona zuria woreda education office
selected primary schools from five human resources management practices namely: training
program, compensation management, performance appraisal, career development and grievance
handling system. A theoretical framework was used as a guideline to test the effect of these
variables on organizational performance from the relevant literatures. Furthermore, the nature
of the research is descriptive and explanatory research design. Stratified sampling technique
was employed and a sample of 216 employees was used to collect the data. However, only 192
employees responded to the questionnaires and hence, the response rate was 88.8 percent.
Besides, descriptive statistical tools like percentage, mean and standard deviation are used to
illustrate the demographic characteristics of the respondents and to assess the perception of
employees from data collected through questionnaire and the study revealed that majority of the
respondents inclined to disagreed on HRM practices. Thus, inferential statistical methods like
correlation analysis was used to assess the relationship between selected HRM practices and
organizational performance, multiple linear regression analysis also was employed to examine
the influence of selected HRM practices on organizational performance by using primary data
collected through five scale likert questionnaire. Based on the findings of the study, all
determinate factors of HRM practices have a positive correlation with organizational
performance. The multiple linear regression analysis result revealed that all explanatory
variables have a significant effect on organizational performance. This indicated that HRM
practices determine the organizational performance of bona woreda education office selected
primary public schools. Therefore, bona woreda education office selected primary public
schools should implement HRM practices approaches appropriately and continuously as an
indispensable tool to build long lasting relationships with employees so as to achieve and
maintain sustainable organization.

Keywords: Human resource management practice, primary school and organization performance

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 CHAPTER ONE
INTRODUCTION

1.1 Background of the Study

The capacity of government to deliver effective and efficient service to the residents/people with
a quality human resource is a critical issue. The most precious asset that can contribute greatly to
the organizational efficiency and effectiveness is the human resource of organizations
(Muhammad, 2009). The most successful companies and the most successful countries will be
those that manage human capital in the most effective and efficient fashion by investing in their
workers, encouraging workers to invest in themselves, providing a good learning environment
including social capital as well as skills and training (Becker,2002). The quality of human
resources is a critical factor in the capacity of the government to deliver on its mandate.

Progressive organizations worldwide have treated their people as their most important asset and
probably have therefore become what they are today. Since people are becoming such a critical
factor, in the future, the winning organizations will be those that are able to manage their human
resources effectively (Dumanie, 1993).

HRM is critically important to ensure whether human capital is well managed and that all issues
relating to this resource are effectively dealt with. These issues include human resource planning,
compensation management, recruitment and selection, performance appraisal, training programs,
career development, safety and wellness, employee motivation, communication, administrative
support . Successful organizations are those which value, develop and care for their human
capital to achieve their organizational goals and objectives. Over the years, researchers have
suggested many HRM practices that have the potential to improve and sustain organizational
performance. These practices include emphasis on employee selection based on fit with the
organization‟s culture, attitude, and necessary technical skills required by the job, career
development, and training and development to build employee capacity, among others.
(Magijima, 2010:2).

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,

2
customer satisfaction, management/ employee relation and employee relation (Delaney &
Huselid, 1996). Organizational performance involves analyzing a company‟s performance
against its objectives and goals. In other words, organizational performance comprises real
results or outputs compared with intended outputs. The term has a similar meaning to„
organizational effectiveness Aguinis H.,(2009)
“However, organizational effectiveness‟ covers a broader area. An organization is an organized
group of individuals with a specific purpose. „Performance‟ is the process or action of
performing a function or task. We perceive it regarding how successfully the person carries out
that function. When we put the two words together, i.e., organizational performance, what do
they mean? According to (Louise James), a Senior Manager at Pitcher Partners: “Organization
performance relates to how successfully organized group of people with a particular purpose
perform a function. “The analysis of company‟s performance focuses on three main outcomes.
Tomal and Jones (2015) define organizational performance as the actual results or output of an
organization as measured against that organization‟s intended outputs.

Therefore the country or the organization should give attention to proper managing of manpower
in an organization, because it is significantly affecting the effectiveness and development of the
organization as well as country. These resources are useless unless efficient manpower is
available in the organization. Hence, the need exists for an adequate supply of capable human
resources in the form of well-educated, developed and motivated personnel. Basically Human
Resources Management is a modern term for what has traditionally been referred to as personnel
management. The term Human Resources at the organizational level includes all the component
resources of all employees from the rank and file to top management level (Armstrong, 2009).
In Ethiopia, depending on the government‟s ideology the country‟s policies and strategies are
executed. From early times up to now different governments with different policies, rules and
regulations came in to power. For instance, the Derg regime (1974 -1991) had its own socialist
idea with a centralized policy system. Consequently, designing of policies and decision making
took place in a centralized system. In addition to this, all the civil service organizations were
highly centralized (Paulos, 2001). But FDRE government 1991up to today has been
decentralizing system for designing of policies and decision making through democratic way of
all concerns.

3
As a response to this nationwide scheme, the Sidama national regional state Public Service and
Human resource development directories also decentralized the major human resources
management decisions to respective implementing departments. Among many are recruitment,
selection, training and development, employees performance appraisal system, promotion,
transfer of employees and delegated custodial & manual, trades and craft job positioning to
regional, and woreda level office( Sidama Regional Public Service Bureau, 2014).
Bona Zuria woreda level public service office implement Sidama national regional state public
service and human resource directories bureaus HRM practices include human resource
planning, recruitment and selection, grievance procedure, career development, training program,
performance appraisal system, employees‟ compensation, reward and others (Sidama Regional
state Public Service Bureau, 2014). Issues which are public human resources management
include organizational arrangement, recruitment, job assignment, performance appraisal training
and development, promotion, employees‟ compensation, reward, fringe benefits and exit
procedures. Even though HRM practices is very wide concept in this research study, efforts were
made to investigate effect of HRM practices on organizational performance and difficulties
particularly on the major dimensions of HRM which include training program, performance
appraisal, career development, compensation management and grievance handling with a focus
on educational institution. Therefore this study focused on investigating the effect of human
resource management practices on organization performance in case of Sidama regional state at
Bona woreda education office selected primary schools.

1.2Statement of the Problem

As organizations around the world face increased challenges due to globalization, many
organizations are seeking to gain competitive advantage at all cost, and are turning to more
innovative ways of doing business through HRM practices (Sparrow, Schuler, & Jackson, 1994).
According to Likewise, Minbaeva (2005) viewed HRM practices as a set of practices used by
organizations to manage human resources through facilitating the development of competencies
that are unique to the organization, creating complex social relations and generating organization
knowledge to sustain competitive advantage. From this basis, it can be established HRM
practices that are designed and developed to implement it that ensure the effective HR
functioning and organization performance.

4
Ethiopia has entered into a promising path of political and social development, particularly with
the delegation of powers to the respective public sector agencies and regional self-governments
under the current administration since the year 1995. This process is somehow new to the sector
in comparison to the previous system. This process of delegation had helped in facilitating the
implementation of HRM functions in general. Nonetheless, it didn‟t go unchallenged as abuses
of authority, inefficiency, corruption and irresponsiveness still prevail in the administrative
structures of all levels of governments in Ethiopia (Federal Civil Service Agency, 2005) cited in
Paulos (2007:362).
Currently Bona zuria woreda education office selected primary schools, are facing different
problems such as; lack of updated training program, lack of an appropriate employee‟s
performance appraisal system, lack of timely compensation management system, lack of
applicable career development system and program, lack appropriate grievance handling system
clearly failed to ensure expected organizational performance in the selected primary schools.
But at the same time, little has been researched on the implementation of HRM practices and the
attendant effect on organizations from delivering effective service. In this regard the attempts
made by scholars like Birhaneselassie (2015) and Menayche (2015) Conducted a research on
selected HRM practices these studies focused on the influence of human resource planning,
recruitment and selection, training program, reward & appraisal performance. Similarly studies
by (Holbrook and Hughes 2003; Roffe 1999) recommended that good HRM practices have
significant effect on organizations performance improvement. Most of the research studies
previously not include HRM practices especially career development, grievance handling
system, training program, performance appraisal and compensation management. HRM practices
are one of the variables that have great possibility of influencing employee‟s organizational
performance.
Due to this, the researcher was keenly interested in making its own contribution by making
careful study in the selected primary schools within the stated variables Thus, as to the
knowledge and understanding of the researcher, a study has not been conducted in the area of
selected primary schools with regard to effects of HRM practices on organizational performance
at the Bona woreda education office primary school especially grievance handling system,
performance appraisal, compensation management, training program, career development on

5
organizational performance. Therefore researcher was empirically tested those problems which
are stated above to conducting systematic study in the selected primary schools of Bona woreda.
1.3. Objectives of the Study
1.3.1. General Objectives:
The general objective of the study is assess effect of human resource management practices on
organizational performance in case of Sidama regional state at Bona zuria woreda education
office selected primary schools
1.3.2. Specific Objectives

 To examine effect of training program on organizational performance in the Bona

zuria woreda education office selected primary schools.
 To assess effect of grievance handling system on organizational performance in the
Bona zuria woreda education office selected primary schools.
 To examine effect of career development on organizational performance in the Bona
zuria woreda education office selected primary schools.
 To analyze effect of compensation management on organization performance in the
Bona zuria woreda education office selected primary schools.
 To analyze effect performance appraisal on organization performance in the Bona
zuria woreda education office selected public primary schools.

1.4 Research Hypothesis

Ho1: Training program has no statistically significant effect on organizational performance.
Ho2: Performance appraisal has no statistically significant effect on organizational performance
Ho3: Compensation management has no significant effect on organizational performance.
Ho4: Career development has no statistically significant effect on organizational performance
Ho5: Grievance handling system has no significant effect on organizational performance.

6
1.5. Significance of the Study

 The research finding would be helpful for building up the existing knowledge to the
implementation and interpretation of HRM practices.
 To help those responsible personnel‟s to identify the strength and weakness & take
corrective actions to enhance the practice of HRM in the Bona zuria woreda education
office selected primary schools.
 The finding would provide basic information on the basic challenges those affecting the
effectiveness of the HRM practices in the organization.
 Study would fill the existed gap and contribute information to the bona woreda education
office selected primary school‟s directories for the research topic area.
 Finally it would be help as reference for individuals who want to conduct further study in
related topic and also it may serve as a reference for policy makers.

1.6 Scope of Study

The researcher needs to have delimitation due to the efficient and effective accomplishment of
the research study. The scope of the study was assessing effect of Human resource management
practice on organizational performance.

Geographical scope: - The geographical scope of this study was limited in Sidama regional state
at Bona zuria woreda education office selected pubic primary schools.
Methodological scope: - The study used both descriptive and explanatory design with help of
mixed research approach to carry out the study.
Conceptual scope: - The conceptual scope of the study area is limited on HRM practices
specially training program, compensation management, performance appraisal, grievance
handling system and career development practices on organizational performance.
Time scope: - The time scope of the limited on one year time.

1.7Limitation of the study

It is obvious that every researcher is faced some degree of limitation. While, conducting this
study the researcher faced following limitations; the study specifically focused on Human
resource management practice on organizational performance in Bona woreda education office
selected primary schools. As it focused on Bona zuria woreda education office selected only

7
twelve primary schools it was difficult to conclude the results of the study in others Woreda‟s
primary schools of the Sidama regional state and Ethiopia. This study was limited only to
education sector among other public sectors. Other governmental and business sectors were not
covers due to time and budget constraint.

1.8 operational definitions

Human resource management practice is defined as a system that attracts, develops,
motivates, and retains employees to ensure the effective implementation and survival of the
organization and its members.

Organizational performance: is an actual result or output of an organization as measured

against that organization‟s intended outputs.

1.9 Organization of the Study

This research paper was organized in to five chapters. Chapter One: This chapter is introductory
chapter and is focused on background of the study, statement of the Problem, objective of the
study, research hypothesis and significance of the study, scope of the Study, operational
definition and limitation of the study. Second chapter: This chapter is literature review focused
with theoretical, empirical a conceptual framework the human resource management practice and
organizational performance. Chapter Three: This chapter is research methodology with its focal
point on, description of the study area, Research design, sampling techniques, source of data,
method of data collection, method of data analysis and ethical consideration. Chapter Four:
Analyze Results and Discussions. Chapter Five: Summary of major findings, Conclusions and
Recommendations.

8
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Theoretical review of the related literatures

2.1.1 Definition of Human Resource Management (HRM)

Human resource management can be defined as a strategic, integrated and coherent approach to
the employment, development and well-being of the people working in organizations. It was
defined by Boxall and Purcell (2003: 1) as „all those activities associated with the management
of employment relationships in the firm‟.
According to Bratton and Gold (2007), strategic human resource management is “the process of
linking the human resource function with the strategic objectives of the organization in order to
improve performance”.
Human resource management (HRM) is concerned with all aspects of how people are employed
and managed in organizations. It covers the activities of strategic HRM, human capital
management, know-ledge management, organization development, resourcing (workforce
planning, recruitment and selection and talent management), learning and development,
performance and reward management, employee relations, employee well-being and the
provision of employee services. It has a strong conceptual basis drawn from the behavioral
sciences and from strategic management, human capital and industrial relations theories
(Armstrong, 2010).
According to Watson (2010: 919), HRM is the managerial utilization of the efforts, knowledge,
capabilities and committed behaviors which people contribute to an authoritatively co-ordinate
human enterprise as part of an employment exchange (or more temporary contractual
arrangement) to carry out work tasks in a way which enables the enterprise to continue into the
future.
Human resource management (HRM) is a comprehensive and coherent approach to the
employment and development of people. HRM can be regarded as a philosophy about how
people should be managed, which is underpinned by a number of theories relating to the
behavior of people and organizations. It is concerned with the contribution it can make to
improving organizational effectiveness through people but it is, or should be, equally concerned
with the ethical dimension – how people should be treated in accordance with a set of moral

9
values. HRM involves the application of policies and practices in the fields of organization
design and development, employee resourcing, learning and development, performance and
reward and the provision of services that enhance the well-being of employees. These are based
on human resource (HR) strategies that are integrated with one another and aligned to the
business strategy (Armstrong‟s 2014).

2.4 Human Resource Management Practices

HRM practices are the primary means by which firms can influence and shape the skills,
attitudes, and behavior of individuals to do their work and thus achieve organizational goal
(Martin sons, 1995). HR practices are designed to improve the knowledge, skills and abilities of
employees, boost their motivation, minimize or eliminate loitering on the job and enhance the
retention of valuable employees. The present study investigated the following HRM
practices namely, Human Resource Planning, recruitment and selection, training and
development, performance appraisal, compensation and reward and the effects of these practices
in BWEO was examined carefully in details.

2.4.1. Training Program

Training program is often used to fill the gap between current and expected future capacity of
employee to achieve organizational performance. It falls under human resource development
function which has been argued to be an important function of human resource management
(Weil & Woodall 2005). Training is imparting a specific skill to do a particular job while
development deals with general enhancement and growth of individual skill and abilities through
conscious and unconscious learning (Cole, G.A., 2002). Training is a type of activity which is
planned, systematic and it results in enhanced level of skill, knowledge and competency that are
necessary to perform work effectively (Gordon 1992). Training is a systematic process of
altering the behavior, knowledge, and or motivation of employees in a direction to increase
organizational goal achievements (Glueck, 1982).
Training program are the processes of investing in people so that they are equipped to perform
well. These processes are part of an overall human resource management approach that hopefully
will result in people being motivated to perform (Elnaga, A. and Imran, A., 2013). The main
purpose of training and development is by improving the employee competencies so that
organizations can maximize efficiency and effectiveness of their human assets (Meyer, P.J. and

10
Smith, A.C., 2000). Armstrong (2009) clearly stated in his book that organizations could benefit
from training and development through winning the “heart and minds of” their employees to get
them to identify with the organization, to exert themselves more on its behalf and to remain with
the organization.
2.4.2 Career Development
Career development deals with the fundamental nature of the relationship of individuals to their
work and employees to their organizations. The term career development had increasingly came
at the end of twentieth century, to describe the psychological, sociological, educational, physical,
economic and change factors that combine to shape individual career behavior over the life span
and it is the evolution or development of a career informed by experience within a specific field
of interest, success at each development and educational attainment. Career development
includes learning, developing and mentoring employees to ensure that they navigate their career
path within an organization, which enhance productivity for an organization,(Patton &
McMahon 2006).
Harold, A. P, & Amit, K. ,(2011).defines Career development as a series of activities or the
ongoing process of developing one„s career. It is a process that entails training new skills,
moving to higher job responsibilities; make a career change with the same organization, or
starting one„s own business. Career development is an effective way to foster future leaders
within organization with relevant skills and experience that will be required to implement
organization strategies.

The concept of career development has evolved over time, with various authorities advancing
varied theories on how individuals shape their careers. They also maintain that career
development is a lifelong process of managing work leisure, and transition in order to move
towards a personally determined and evolving preferred future. Positive career development
program helps organization attract and retain the best people by recognizing and responding to
the needs of individual employees, they will get the best of them. Effective career development
program helps develop the economy and also benefits individuals, employers and society at
large. Recognizing that everyone potentially has a career and that as a consequence, everyone
has career development needs, means that attention must be paid to how career development is
best supported (Harold, A. P, & Amit, K.,2011).

11
In today„s competitive market, successful businesses regardless of size need employees who
have the necessary knowledge and skills to make an effective contribution as drivers towards
achieving a competitive edge. Therefore, vision of a competent, confident, loyal and valued
workforce delivering high quality, person-centered services is rightly ambitious and today„s
dynamic environment requires continuous professional and managerial development (Armstrong
2001).

According to Wren, D (2011) Stakeholders should put in place, if not already available, a range
of structures and processes to support the development of the workforce we need now and for the
future concur and training and development of employees should be seen as an investment, not a
cost; and that bad performance, ignorance and low commitment to duty are very costly barriers
in business. It is pointed out that the key to high levels of performance lies in having employees
who are willing to work, are well managed, well led, well-motivated and are always re-skilling.
Career development covers an employee„s working life. It starts with, for example staff
orientation, on-job training, experience, short courses, professional courses, post graduate
degrees or diplomas.

2.4.3 Performance Appraisal

(Armstrong, 2009) views performance appraisal as a process, which is systematic and dedicated
to improving both the organization and the individuals in the organization. Within the process, a
framework establishes goals and performance standards requirements. (Guest, 2011) defined
Appraisal as a bundle of HR practices that influence organizational performance and so justifies
HRM claims to have a strategic impact.
(Bratton & Gold, 2012) Emphasized that the need to measure individual and team contributions
in the job in order to determine organizational performance. It is therefore, important for
organizations to understand how the totality of HRM Practices including performance
appraisal can affect Employees. (Towell, 2012) argue that to improve performance appraisal we
should be focusing on improving the quality of the conversation. In addition, performance
appraisals have many functions which theoretically serve the stakeholders including employees
who are subject to performance
appraisal process; line managers, who conduct the performance appraisal process; and
organizations, which their final goals is subject to the result of performance appraisal process.

12
As the above definitions indicate, it is difficult to find a particular definition that includes all the
dimensions of performance appraisal so it is important to consider the common acceptable
features and elements of performance appraisal.
2.4.4 Compensation management
Compensation, variously called variable pay (Curran & Walsworth, 2014) and incentive
pay (Green & Heywood, 2008) has become increasingly important for employees
satisfaction to perform productively at work (Pendleton et al., 2009). It represents one of the key
elements of any HRM practices aimed at achieving sustainable competitive advantage for
any organization. Various types of compensation, including performance-compensation,
profit-related compensation and employee share-ownership, are identified as strategic tools for
shaping positive employee attitudes such as job satisfaction (Heywood & Wei, 2006),
organizational commitment and trust in management (Moriones et al., 2009). These
compensation programs provide important incentives that reinforce employees‟ satisfaction to
spread discretionary effort, leading to higher levels of achievement and meaningful work-related
goals. Most managers and researchers would agree that make effected, productive employees are
critical for organizational success, regardless of company size, industry, or corporate strategy.
The question that a lot of studies have discussed is how to make effective them. Offering
employees performance-based compensation is one shared approach, and it usually takes
one of two forms: compensations are offered to individuals based on assessments of their
performance, or compensations are offered as organization-wide incentives, such as profit-
related pay or share ownership. (Ogbonnaya et al., 2017)
Various studies showed a positive impact between compensations and employee performance,
there are indications that different compensations arrangements may increase work (Green,
2004). This type of compensation that is performance and target based can lead to employees to
work too hard and too intensively, leading to work-related stress or poor well-conditions. To
date, little progress has been made in gathering empirical evidence on whether compensation is
in fact associated with the performance that work is more intense, and how this might impact on
employees' workplace achievement such as performance (Ogbonnaya et al., 2017)
Compensation includes all financial payments, bonuses and a non-financial benefit the
organization provides to employees to attract qualified human resources and to maintain what is
available in the organization. Compensations are one of the most important factors affecting

13
motivation Individuals to grow, develop and sustain learning, stimulate productivity and strive to
improve the overall performance of the Organization (Casio, 2013).
Strategically, compensation is a key element of the organization‟s ability to attract and retain its
most valuable source of sustainable competitive advantage the human capital. (Kang &
Yanadori, 2011)
The major worldwide trends in compensation systems had increased the enhancement of the pay
for abilities, performance, and skills of employees, the transfer of living wage allowances into
base pay, the split of bonuses formerly paid semi-annually into more flexible modules, the
linking of benefits to employee performance and the conversion of pension into contributory
pension plans (Conrad, 2009).

In addition to that the usage of contingent pay schemes has undergone a significant change
during the last quarter century with a greater probability of collective forms of
compensation systems which means that there are a number of combinations for applying these
schemes (Bryson et al., 2008). In a general context this is attributed to the changing nature of the
work and employment relationships, the new set of expectations of the organizations,
stakeholders, technological shifts and increase in globalization.
2.4.5 Grievance Handling System
The existing diversity at many workplaces around the world in terms of age, gender, nationality,
ethnic and religious background among employees requires an organized way of managing or
solving employees‟ problems. Rose (2004) defines grievance as any dissatisfaction regarding
work and workplace expressed by employee in a formal way to his immediate supervisor. In the
same vein, D‟Cruz (1999) argues that grievance is a matter raised by employee to show
dissatisfaction with management behavior and is an attempt to effect changes. In addition, the
author adds that employee grievance can be viewed as the process which involves an employee‟s
attempt to show that she or he has suffered or been wronged, sometimes due to actions or
decisions made by the manager acting on behalf of the organization.
The positive side of the above definitions of grievance is that they clearly state what grievance is.
Also, some even provide factors which might lead to employee grievance at work places.
However, they all fail to provide the extent to which employee grievance can affect employee‟s
performance. For this study, therefore, grievance can be viewed as a situation through which a

14
particular employee shows his or her dissatisfaction concerning how he or she is being treated to
his or her immediate supervisor as well as others for further action.
2.4.5.1 Causes of Grievances
According to (IJRTI, 1705049: 272) causes of grievances
1. Economic
Employees may demand for individual wage adjustments. They may feel that they are paid less
when compared to others. For example, late bonus, payments, adjustments to overtime pay,
perceived inequalities in treatment, claims for equal pay, and appeals against performance-
related pay awards.
2. Work environment
It may be undesirable or unsatisfactory conditions of work. For example, light, space, heat, or
poor physical conditions of workplace, defective tools and equipment, poor quality of material,
unfair rules, and lack of recognition.
3. Supervision
It may be objections to the general methods of supervision related to the attitudes of the
supervisor towards the employee such as perceived notions of bias, favoritism, nepotism, caste
affiliations and regional feelings.
4. Organizational change
Any change in the organizational policies can result in grievances. For example, the
implementation of revised company policies or new working practices.
5. Employee relations
Employees are unable to adjust with their colleagues, suffer from feelings of neglect and
victimization and become an object of ridicule and humiliation, or other inter-employee disputes.
6. Miscellaneous
These may be issues relating to certain violations in respect of promotions, safety methods,
transfer, disciplinary rules, fines, granting leaves, medical facilities, etc.
2.4.5.2 Grievance Handling Styles
Many studies show that a number of styles are applied in managing employee grievances. For
instance, a unitary organization is more centralize (Rose, 2004). As a result, avoidance and
dominating styles may be utilized in resolving grievances (Green, 1987). On the other hand, a
bilateral organization which is more decentralizing (Rose, 2004) may employ compromising,

15
integrating or obliging styles when confronting with employee‟s grievances (Rahim, 1983).
Rahim‟s (1983) study has constructed independent scales to measure five styles in handling
conflict namely integrating, obliging, compromising, dominating and avoiding.
Integrating Style
Integrating styles involves high concern for self as well as the other party involved in conflict. It
is concerned with collaboration between parties (for example openness, exchange of information
and examination of differences) to reach an acceptable solution to both parties (Rahim &
Magner, 1995). Thomas and Kilmann (1974) labeled this style as collaborating mode.
Collaborating mode refers to the ability of manager to work with his or her employee to find a
solution that fully satisfies the concerns of both. Collaborating between two persons might take
the form of exploring a disagreement to learn from each other‟s insight, with the goal of
resolving some condition that would otherwise have them competing for resources, or
confronting and trying to find a creative solution to an interpersonal problem (Thomas &
Kilmann, 1974).
Obliging Style
Obliging styles involves low concern for self. An obliging person attempts to emphasize
commonalities to satisfy the concern of the other party (Rahim & Magner, 1995). Thomas and
Kilmann (1974) named this style as accommodating mode. To Thomas and Kilmann (1974)
individual performing accommodating style neglects his or her own concerns to satisfy the
concerns of the other person. In accommodating style, managers might take the form of selfless
generosity or charity, obeying another person‟s needs and prefer to yield another‟s point of view.
Compromising Style
In compromising, this style involves moderate concern for self as well as the other party
involved in conflict. It is associated with give-and-take or sharing whereby both parties give up
something to make a mutually acceptable decision (Rahim & Magner, 1995). Compromising
style also refers to splitting the difference, exchanging concessions or seeking a quick middle-
ground position (Thomas & Kilmann, 1974).
Dominating Style
Dominating style involves high concern for self and low concern for the other party involved in
the conflict. It has been identified with a win-lose orientation or with forcing behavior to win
position (Rahim & Magner, 1995). Thomas and Kilmann (1974) portrayed dominating style as

16
power-oriented mode or competing style. A dominating manager always stands up with his or
her rights, defending a position that his or her opinion is correct and simply trying to win.
Avoiding Style
Avoiding style is associated with low concern for self as well as for the other party involved in
conflict. It has been associated with withdrawal, passing-the-buck, sidestepping or “see no evil,
hear no evil, speak no evil” situations (Rahim & Magner, 1995). Avoiding might take the form
of diplomatically sidestepping an issue, postponing an issue until a better time or simply
withdrawing from a threatening situation (Thomas & Kilmann, 1974).

2.5 Organizational Performance:

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 &
Huselid, 1996). Organizational performance involves analyzing a company‟s performance
against its objectives and goals. In other words, organizational performance comprises real
results or outputs compared with intended outputs. The term has a similar meaning to„
organizational effectiveness.
“However, organizational effectiveness‟ covers a broader area. An organization is an organized
group of individuals with a specific purpose. „Performance‟ is the process or action of
performing a function or task. We perceive it regarding how successfully the person carries out
that function. When we put the two words together, i.e., organizational performance, what do
they mean? According to (Louise James), a Senior Manager at Pitcher Partners: “Organization
performance relates to how successfully organized group of people with a particular purpose
perform a function. “The analysis of company‟s performance focuses on three main outcomes.
Tomal and Jones (2015) define organizational performance as the actual results or output of an
organization as measured against that organization‟s intended outputs. Dyer and Reeves
(1995)proposed HR outcomes (turnover, absenteeism, job satisfaction), organizational outcomes
(productivity, quality, service), financial accounting outcomes (ROA, profitability), and capital
market outcomes, (stock price, growth, returns) as the four possible measurement for
organizational performance.

17
Several research findings in performance management are advocating an emphasis on both
financial and non-financial dimensions such as competitiveness, service quality, customer
satisfaction, organizational flexibility, resource utilization, and technology (Harris & Mongiello,
2001; Atkinson and Brander-Brown, 2001). Harris and Mongiello (2001) argue that, even though
a hotel is thought of in a service context, in reality it encompasses three different types of
industrial activity (rooms, beverage, and food) that exhibit different business orientations. These
three orientations call for a diverse set of performance indicators. Fitzgerald et al. (1991)
emphasized the importance for performance measures to direct attention to such non-financial
factors as service quality and customer satisfaction. Based on the literature, the following non-
financial measures will be used in the study, service quality and customer satisfaction.
2.6 Human resource management (HRM) Practice and Organizational Performance
HRM practices are a process of attracting, motivating, and retaining employees to ensure the
survival of the organization (Schuler and Jackson, 1987). HRM practices are designed and
implemented in such a way that human capital plays a significant role in achieving the goals of
the organization (Delery and Doty, 1996). The appropriate use of HRM practices positively
influence the level of employer and employee commitment (Purcell, 2003). HRM practices such
as, training program, performance appraisal encourage the employees to work better in order to
increase the organizational performance (Snell and Dean, 1992; Pfeffer, 1998).
Training is a process that provides employees with skills, information and understanding of the
organization and its goals (Shaw, 2011). Employee training refers to programs that
provide workers with information, new skills, or professional development opportunities
(Olalere & Adesoji, 2013). Employee training is one of the vital tools that help to
enhance effective organizational performance and at the same time helps to promote the
stability index of the organization. It is very important for the organization to exert extra efforts
and invest much in employee training if it wants to achieve its objectives in the most
economical way. When employees are recruited into the organization, they may not come with
all the required skill set to discharge fully their roles in the organization. Training addresses gaps
or discrepancies between an ideal and an optimal stage of development.
Performance management helps an organization understand the effectiveness of the people who
work in it. Performance management system can benefit both the organizations and its
employees. It provides individual feedback and helps in collecting organizational data which can

18
be used for HR planning and program evaluation. Performance management is the part of
Human resource practices so the extensive review of the literature reveals that adopting wide
range of HRM practices is the key to achieving outstanding performance (Hoque, 1999). Wan et
al. (2002) also found a positive relationship between various company‟s strategic HRM
policies/practices and its HR performance.
The study of Cunha (2002) showed that Performance management has a positive and significant
impact on organizational performance. Moreover, competitive advantage may be
strengthened through performance management practices that enhance worker motivation.
Performance appraisal system has become a generally banner for a variety of most of activities
through which the organization seeks to assess employee and develop their competence, enhance
performance and disturbed performance-based rewards it sometimes becomes a part of a
broader approach to strategic human resource management known as a performance
management system.
Compensating employees is associated with the motivation of the workforce of
organization for better performance. The effectiveness of skilled employees is likely to be
limited if they are not motivated to perform. One of the means that organizations can use to
enhance employee motivation and performance is to provide performance related
compensation (Delaney and
Huselid, 1996). A compensation and reward system are based on the expectancy theory, which
suggests that employees are more likely to be motivated to perform when they perceive that there
is a strong link between their performance and the reward they receive (Fey and
Bjorkman, 2001;) A study based on data from the US National Organizational Study,
conducted by Kalleberg and Moody (1994), also found that profit sharing is positively
correlated with product quality, product development, profit, customer satisfaction, and growth
in sales.
Several studies on compensation systems and work/organization performance have
conducted, for example in Pakistan cement industry (Quresh, Zaman and Shah, 4 2010),
Nigerian manufacturing industry (Sajuyigbe, Bosede and Adeyemi, 2013), Bangladesh
commercial banks (Aktar, Sachu & Ali, 2012) and Malaysian universities (Jalaini et al., 2013).
These studies indicated in today‟s environment, employees including bank employees are

19
motivated by both intrinsic (internal) and extrinsic (external) rewards for greater work/
organization performance and that none of the two sets of reward systems should be overlooked
by managers when motivating employees for higher performance
2.7 Empirical Studies
Here it will make the link between what has been done previously and the current investigation
in HRM practice related area.
Mansour, (2010) analyzing the relationship between human resource practices and firm
performance. Using companies in Saudi Arabia, this study tests the proposition of HR
practices. The research discovered a positive relationship between the overall HR practices
(by using recruitment, training, participation, performance appraisal, and compensation and
benefits as the variables) and the performance of the firm.
Naftal and Busienei (2015) conducted a study on the effect of human resource
management practices on performance of public universities in Kenya. This study sought
to establish the relationship between strategic human resources management practices and
performance of public universities in Kenya. Data was collected using semi-structured
questionnaire and was subsequently analyzed using SPSS. Research findings suggested that
strategic human resource management practices have a significant effect on the
performance of public universities in Kenya. Further, findings revealed that reward
management, training and development and resourcing practices respectively influenced the
performance of public universities
According to Guest (1997) mentioned in his study that training programs as one of the vital
human resource management practice, positively affects the quality of the workers knowledge,
skills and capability and thus results in higher employee performance on job. This relation
ultimately contributes to supreme organizational performance.
Karami et al. (2015) were conducted a research on factors affecting HRM functions at the Public
organizations in Asian context specially in Iran banking industry using a number of HRM
practices includes; training and development, teamwork, performance appraisal, HR planning,
and employment security as mediators on the relationship between cost reduction, innovation,
quality enhancement and OP, the used 220 sample a quantitative approach SPSS 17v were
utilized in the data analysis, result shows that all the HR practices used are significant related to
OP.

20
Furthermore on a study conducted by Kasau (2014) to assess the relationship between training
and performance showed that employees should be trained to equip with positive attitudes
towards work and training should also be done with an objective of building the “how” to deliver
quality services to the customers.
Muhammad (2011) study entitled: “Role of Performance Appraisal System on Employees
Motivation”. The study developed a model in which the employee is uncertain about his own
performance and about the manager's ability to assess him. The study sample consisted of
the HR mangers and staff of 3 major Indian companies TITTAN, GODREJ and Nicholas
Primal. The study examined how performance appraisals affects the employee‟s future
performance. The predictions of study model are consistent with various empirical findings.
These comprise (i) the observation that managers tend to give positive appraisals, (ii) the finding
that on average positive appraisals motivate more than negative appraisals, and (iii) the
observation that the effects of appraisals depend on the employee's
perception of the manager's ability to assess performance. Desta (2008) also conducted study
entitled the Human Resource Management Function in Ethiopia: Focus on Civil Service in
Southern Regional Government (SNNPRG) the finding reveals, better performance of HRM
practice compared to centralized administrative system. However, compensation management
and reward system are not performed well as there are some indications from the findings
Moreover, to some extent the current compensation management structure and the minimum
requirement criteria set by CSA hinder sectors effort to attract the best candidates. Similarly,
selection often distorted by interference
Many organizations are faced with the problem of retaining employees. It is expensive to replace
employees who leave for greener pastures or are lured away by other organizations. New
employees have to be recruited, selected, oriented and trained.
Employee turnover can have a demoralizing effect on an organization, and it may also severely
impact the overall efficiency of the organization. Career development programs enhance
employee performance and have a positive impact on an organization's overall effectiveness.
According to Zulfqar Ahmad Bowra (2012) study the promotions practices also showing positive
and significant relationship in the model. Promotion practices have a contribution of 0.1147 in
explaining the employee perceived performance and significant at 5% level of significance.
Similarly, (Baloch et al., 2010) in his study shows that promotion practices can affect positive to

21
the performance of employees the consequences affect organizational performance. A grievance
is specific, formal dissatisfaction expressed through an identified procedure (Gupta, 2006).
According to (Peterson, 1992; Feuille & Delaney, 1992) studies they find that grievance
procedure has relationship and significant effect on organizational performance and the behavior
of individuals. Sloan (2008) also conducted on his study the relationship between the grievance
and Productivity of organizations. The study was unique looking at micro-level data suggests
that significant links exist between economic and industrial relations performance by
documenting a significant inverse relationship between plant production and grievance rates. It is
argued that this significant inverse relationship reflects greater discrepancies between reported
and effective labour hours as grievance rates increase.
Again, Victor Melchades (2013) on his study try to provide a solid basis for management to
know the way and how the grievance can affect work performance and the way to handle them in
their organizations. This shows that organizations try to develop simple and effective in conflict
resolution methods. In addition, this paper chooses to study HRM practices as the best internal
factors that influence performance in organization.
Similarly, the study conducted by Akhtar et al. (2014) in Pakistan higher education , used (7)
seven HRM practices that is staffing, training, compensation, performance appraisal, grievances
procedure, empowerment and promotion with 50 sample used SPSS techniques for data analysis,
result of the study revealed that all variables are found positively significant except promotion.
From this we can conclude that grievance handling system has significant effect on
organizational performance.
As shown above most of the previous studies provide the evidence that there is a strong positive
relationship between human resource management practices (recruitment and selection, training
and development, career development, grievance handling) and organizational performance.
Therefore, from above all empirical research discussion researcher can observe that
organizational performance can be affected by numerous factors. Among that factors which are
included in this research such as training program, performance appraisal, compensation
management, career development and grievance handling have positive and significant
relationship with organizational performance. This helps us to conclude that a positive change in
one of the above factors may offer positive significant effect on organizational performance.

22
To clarify what distinguishes the current study from previous studies, some comparisons have
been made, which are presented as follows:

 Human resources management practices and employees‟ organizational performance

concepts: The current study expects that it will increase awareness about the effect
of Human resources management practices specially training program, performance
appraisal, compensation management, career development and grievance handling on the
employees‟ organizational performance.
 Environment: most of studies have been mainly conducted in outside of Ethiopia, and
some studies which conducted in Ethiopia were not focused on Sidama regional state. In
contrast, the current study was carried in Sidama regional state, particularly in bona
zuria woreda education office at primary schools.
 Institution: Most of the previous studies have been mainly focusing on governmental and
private organization areas those studies were not focused on educational organization
while this study focused on the education office selected primary school in bona zuria
woreda.
 Purpose: Most of the previous research studies were conducted to measure the effect of
HRM practice such as human resource planning, recruitment and selection, placement,
training and development, reward system, performance appraisal on employees‟
motivation, satisfaction, and performance. While this study focused on selected HRM
practice particularly training program, performance appraisal, compensation
management, career development and grievance handling on organizational
performance.

2.8Conceptual Framework of the Study

The conceptual frame work is defined as an interconnected set of ideas, theoretical structure of
assumption , principles, ,and rules that hold together the ideas comprising abroad concept and
also it deals with about how a particular phenomenon functions or is related to its
parts(Cohen,etal.,2007). The main purpose of the conceptual frame work was to clarify concepts
and relationship among the variables in the study, provide context for interpreting the study
finding. In this study, the independent variable is the activities in human resource management
practice. Each independent variable extracted from the human resource management practice

23
from the literature review and also the established relationship of these independent variables
with organization‟s employee performance. In a research, the dependent variable is the
organization performance.
Figure2.2 Conceptual framework of study
Independent variables (HRM practices) Dependent variable

Training program

Grievance handling system Organizational

Performance
Career Development

Compensation management

Performance appraisal

Source: Adopt from Saira HASSAN, (2016)

24
 CHAPTER THREE

RESEARCH METHODOLOGY
3.1 Description of the Study area
This study was conducted on assessing the effect of human resource management practice on
organization performance in case Sidama regional state at Bona zuria Woreda selected primary
schools. There is thirty six woredas in sidama regional state. The study area, Bona zuria woreda
is one of thirty sixth found in Sidama National Regional State. The Woreda comprises 28 kebele
administrations. Among these, three of them are urban areas and twenty five of them are rural
kebeles (BWFEDO, 2019).There are a total 32 schools out of which 28 primary and elementary
school and 4 secondary and preparatory schools. The study area, Bona zuria woreda is found in
Sidama National Regional State. The Woreda comprises 28 kebele administrations. Among
these, three of them are urban areas and twenty five of them are rural kebeles (BWFEDO, 2019

Figure3.1 administration map of Bona woreda

Source: - Bona woreda finance and economic development office (2022)

25
3.2 Research Design and Approach
The types of research employed under this study were descriptive (concerned with determining
the frequency with which an event occurs or relationship between variables) and explanatory
(concerned with determining the cause and effect relationships) research. The major purpose of
descriptive research is description of the state of affairs as it exists at present. Then this study
describes the relationship of selected HRM practices like, training program, performance
appraisal, compensation management, grievance handling system and career development in
Bona zuria woreda education office selected primary schools. Second, the study employed
explanatory examine the effect human resource management practice on organizational
performance with an aim of estimating the integrated influence of the factors on organization
performance.

The study was employed quantitative approach to achieve stated objective of this study. From
which quantitative research is based on measurement of quantity or amount it is applicable to
that was expressed in terms of quantity. It also involves numerical measurement and analysis
approaches. The strength of quantitative research approach is that it follows scientific approach,
bias from researcher influence is less, it employs large sample size and it can test the validity and
the reliability of the instrument. Therefore, throughout this study, the researcher would use
quantitative method to compute, analyze and interpret numerical information.

3.4 Target Population of the study

Population is the entire group of people to which a researcher intends the results of a study to
apply (Aron & Coups, 2008). The targeting for sources of primary data via questionnaire was
teachers of Bona woreda education office selected primary schools working at different level of
position. The target population was the twelve Bona woreda selected primary school teachers.
The total target population was 493 the sample population is has been drawn using appropriate
sample frame and sample size determination as mentioned below.

3.5 sample size determination

The size of sample should neither be excessively, nor too small. It should be optimum. An
optimum sample is one which full fills the requirements of efficiency, representativeness,
reliability (Kothari, 2004). Therefore to determine sample size of the study the researcher used

26
Kothari (2004) that provides a simplified formula to calculate sample size. According to Bona
woreda education office under human resource line it is found that there were 493 total
permanent teachers. Then, in order to determine sample size of the study the researcher used
Kothari (2004) that provides a simplified formula to calculate sample size. The total numbers of
teacher teaching in these selected 12 primary schools were presented within the following
Table3.1 with their respective number of employees (proportional to sample size). Hence,
representative sample of selected primary school teachers were calculated based on formula for
sample size determination and for finite population. According to Kothari (2004, p. 179) it is
given by the formula

n=

Where, n = the desired sample size

z = the value of the standard variation at a given confidence level (to be read from the table
giving the areas under normal curve) p = the proportion of target population estimated (50%)
q = 1-p e = acceptable error (the precision) N = total target study population size

n=

=
=473.477
1.23+0.9604
473.477
2.1904 n=216

3.6 Sampling Technique

In order to determine the size of respondents from bona zuria woreda education office selected
primary school teachers, the researcher was used stratified sampling technique. According to
Kothari (2004), stratified sampling method is applied if a population from which a sample is to
be drawn does not constitute a homogeneous group. Stratified random sampling is a method of
sampling that involves the division of a population into smaller groups known as strata.

27
In stratified random sampling, the strata are formed based on members' shared attributes or
characteristics. These subsets of the strata are then pooled to form a random sample (Kothari
2004).

The researcher believes there might be deference in the population on the stated variables based
on their school difference; because of this the base of stratification was the respondent‟s primary
schools. Beside to this another reason to use stratification is for better administration of the
respondent‟s response to the implement systematic simple random sampling method. Under this
method the target population is first separated into schools proportionally, and then by using
simple random sampling the respondents were selected from each segment through online
random number generator. The samples selected from the various strata combine into a single
sample. The researcher uses this technique by considering the real situations of the respondent‟s
environments and to administer it in effective way.

Table 3.1 Name of selected primary school of the bona woreda & total number of teachers

S. Name of the selected primary Total Number of teachers Sample of teachers

No school each schools
1 Bona Kawalanka 61 27
2 Beshiro dalo 37 16
3 Beshiro Gute 46 20
4 Gowacho 39 17
5 Kike 30 13
6 Worancha 50 22
7 Dila sunka 31 13
8 Melgano 38 17
9 Wotiko 32 14
10 Awaye Kararo 40 18
11 Badalo 45 20
12 Suke 44 19
Total 493 216

28
3.6. Types of Data and Data Collection

3.6.1 Types of Data

The main sources of data were including primary and secondary data. This study was employed
both primary and secondary data by using appropriate data collection methods. Primary data
collected using semi-structured questionnaires from Bona zuria woreda education office selected
primary schools staff teachers. The survey questionnaires were administered from sample
respondents with the help of semi- structured questionnaires to the 216 teachers of the school.
The characteristic of secondary data would a reference to assist the researcher to conduct his
study. Zikmund (2003) describe secondary data as information that gathered and recorded by
somebody for certain purposes. Secondary data from written source about Human resource
management practice and teachers organizational performance; reports and files of organizations,
books, journal articles. Therefore, the researcher was used secondary data sources to describe
discuss, interpret, comment upon, analyze, evaluate and summarize primary sources.

3.6.2 Data Collection instruments

A survey questionnaire was designed to collect the research‟s primary data. The semi-structured
questionnaire was employed close-ended to facilitate the data collection process. Semi-structured
questionnaire was employed to collect the necessary quantitative a data from the respondents.
The use of questionnaire is adopted from the existing literature because it ensured that data
collection was standardized such that each respondent get the same question and in the same
format. It also enables collection of original data from the sample of the population. The
questionnaires were answered to the academic staff‟s teachers of those Bona Woreda primary
schools. Since this research is a quantitative the deployment of close ended questionnaire is
appropriate and fruitful because it will helpful to reach geographically widely spread respondent
in less cost and short period of time and it also provides an opportunity for respondents to
express their feelings freely (Dawson, 2002).

Closed-ended questionnaires were prepared on the basis of human resource management practice
and employee‟s organizational performance of schools because it helps to avoid pressure up on
the respondents in any direction and better to obtain the required data in the study area.

29
The questionnaire was divided in to two sections. The first section contained the demographic
characteristics of the respondents were requested to provide detailed information about their
gender, age, year of service or experience and education level. The second section of the
questionnaire was designed to enable the researcher to gather information about effects of human
resource management practice on the organizational performance which contains statements that
are specifically designed to measure human resource management practice of schools in relation
to the five human resource management practice training program, performance appraisal
compensation management, career development and grievance handling and dependent
variable(organizational performance).
For all independent variables and dependent variable questionnaire included in section two, the
respondents were requested to indicate their level of agreement on a five point Likert scale type
to measure weighted as follows: 1=strongly disagree, i.e., very much dissatisfied with the case
described, 2=disagree, i.e., not satisfied with the case described, 3=neutral, i.e., uncertain with
the case, 4=agree, i.e., feeling alright with the case described, and 5= strongly agree, i.e., very
much supporting the case described. It was designed in English version; since it were ease to
understanding for the teachers.

3.7. Method of data analysis

In this phase of research the task which was editing, coding, classification and tabulation of
collected data. We can classify such activity in to two phases the first one is data checkup and
data processing. Data checkup is about correctness of the collected data to detect errors and
omissions in response and for checking that the questions are answered accurately and
uniformly. It was done thorough a critical examination of the completed questionnaire. Second
one is data processing this start from codding and response was inserted and grouped in software

Primary data was collected using quantitative data analyses methods. Data was fed into SPSS 20
software to analyze by descriptive and inferential statistics, which was the quantitative data that
would be obtained through questionnaire by survey from selected primary schools. The study
assessing the effects of human resource management practice on organizational performance of
selected primary schools at bona woreda education office and thereby various statistical tools
were used depending on their appropriateness for the study in the empirical analysis.

30
To summarize demographic data of respondents, tables and percentages were used. To analyze
the data and address the objectives of the present study, different kinds of statistical methods
including descriptive statistics like table, frequency, mean and standard deviation of responses of
the respondents, and inferential statistics correlation analysis was used to understand the
relationship between each study variables and regression analysis was used to estimate the effect
of each independent variables on dependent variable at study area.

Specification of multiple linear regression models

The model was developed using five explanatory variables or predictors, (training program;
performance appraisal; career development, compensation management and grievance handling)
which have influence on organizational performance. The equation of multiple regression models
is

Where Y is dependent variable which refer organizational performance

------------ are coefficients of correlation
Training program
Performance appraisal
Compensation management
Career development
Grievance handling
Is error term

3.8. Description of Study Variables

The independent and dependent variables of the study are:

Independent variables –It is explanatory variables that affect the dependent variable of the
study; training program, performance appraisal, Career development and compensation
management and grievance handling.

Dependent variable: - The outcome variable of the study is organizational performance.

31
3.9 Reliability and validity test assessment
Reliability was used to show an attribute in which data collection procedures could be repeated
with the same results. According to Kothari (2004), a measuring instrument is reliable if it
provides consistent results. Cronbach‟s alpha is a coefficient of reliability. To carry out the
reliability test of the instrument the researcher was used cronbach‟s Alpha test which is the
most common measure of the internal consistency/ reliability of psychometric test scores for a
sample of examinees and the closer the cronbach‟s alpha coefficient to 1 is the greater the
internal consistency of the item in the scale. cronbach‟s alpha coefficient of at least 0.60 is
considered to be acceptable. During the preparation of the questionnaires, researcher applied
advisor suggestions and comments to improve questions reliability. Before starting the actual
survey the researcher was conducted a pilot test to determine the reliability of those
measurements in this specific environment.

Table 3.2: Reliability test results with Cronbach‟s alpha

No Variables No of items Reliability

coefficient
1 Training program 7 .873
2 Performance appraisal 5 .844
3 Compensation management 6 .832
4 Career development 6 .962
5 Grievance handling 6 .852
6 Dependent variable(organizational performance) 9 0.781
Source: Computed from SPSS 20 (2022)

Validity refers to the extent to which a test measures what we actually wish to measure. Content
validity involves the degree to which the study is measuring what it is supposed to measure.
More simply, it focuses on the accuracy of the measurement (John et.al, 2007). All measures
used to construct the instruments have shown acceptable level of construct and content validity
in previous studies and are used in this study with slight modification. The validity of the study
therefore, were properly checked through content validity method by taking an advice from the

32
advisor and an experienced person on the topic under study and adopting questionnaires from
previous researchers would increase its validity.

3.10. Ethical Consideration

Ethical codes have been playing a major role to prevent scientific abuse of human lives in the
time of knowledge development process (Fouka & Mantzorou, 2011). So therefore, in line with
Fouka and Mantzorou (2011), in conducting the research the researcher was promised and keeps
the following Ethical issues in practice.

Beneficences: this ethical principle refers to that the professional mandate of the researcher to
conduct effective and significant research as to better serve and promote the welfare of
participant or beneficiaries.
Confidentiality: the issue of confidentiality is closely related with right of participants, and the
researcher promised to keep the privacy. So, the respondent was assured by the researcher to
avoid confusions and their response was remained confidential, all of the information they are
provided for the researcher is kept to be confidential and use only for academic purpose.
Organizational approval: before conducting the actual investigation the researcher try to
address all of the necessary steps by a written letter that explains the research idea and the
purpose of the study was provided to the study organization and by doing so the researcher was
obtained approval before starting this paper.
Informed consent: the researcher was tried to inform all appropriate information on Cover
letter, like the purpose of the questionnaire and the right to accept or refuse to participate in the
research activities was given to the participant of the study to get their right consent from them,
by doing so, the researcher would get full approval from the organization and full consent from
the respondents.

33
 CHAPTER FOUR

DATA ANALYSIS AND RESULT DISCUSIONS

The main objective of this study was assessing the effect of human resource management
practice on organizational performance: in case of Bona Woreda selected primary schools.
Besides this the researcher has developed five research objective concerning; to examine effect
of training program on organizational performance, to analyze effect performance appraisal on
organizational performance, to examine effect of compensation management on organizational
performance, to examine effect of career development on organizational performance and effect
of grievance handling system on organizational performance in the study area.

To be clear with the stated objectives of the study, the researcher has collected data from twelve
Bona Woreda selected primary school teachers. Lastly, in this section, the researcher has
presented and analyzed and interpreted the findings of the study targeting the proposed research
objective. Analysis and interpretation of the data gathered by different instruments, mainly
questionnaire and the summary of the quantitative data has been presented by the use of tables
and various statistical tools like, descriptive and inferential statistics.

4.1 Respondents Response rate

From the total 216 questionnaires distributed 192 were returned from which 24 were not
correctly filled and rejected. Therefore, 192 were effectively used for analysis that shows
response rate of 88.8 %. Table below shows the overall response rate.

Table 4.1 Questionnaire Return Rate

Respondents Distributed Total Returned Missed Returne Returned

Type d Total rate(100%)
Male Female Male Female
Principals 40 8 48 40 8 - 48 100
Teachers 118 50 168 108 36 24 144 85.7
Total 158 58 216 148 44 24 192 88.8
Source: Field survey data (2022)

34
4.2 Demographic Characteristics of the respondent

Demographic variables of the respondents were analyzed by asking questions on gender, age
educational level and number of years worked with current organization. Table 4.2summarizes
the demographic information Bona zuria woreda education office selected primary schools
teachers. The overall results of the issue investigated as well as respondent‟s personal
background or profiles are presented below.

Table 4. 2 Demographic characteristics of respondents

Employ gender Frequency Percent

Male 148 77
Female 44 23
Total 192 100
Employ age Frequency Percent
20-30 years 62 32.3
31-42years 80 41.7
43-50 years 30 15.6
Above 50 years 20 10.4
Total 192 100
Education level Frequency Percent
Diploma 112 58.3
BA/BSC degree 80 41.7
Total 192 100
length of experience Frequency Percent
0-5 years 62 32.2
6-10 years 98 51.1
11&above years 32 16.7
Total 192 100

Source: Researcher survey data result, 2022

Table 4.2 shows that the demographic information of the respondents‟ sex in correctly filled
distributed questionnaires of the study area as data indicates that, out of 192 teachers 148(77%)

35
were male and 44(23%) were female. It shows that majority of teachers in selected primary
school in bona zuria woreda were male.
The sample respondents‟ age distribution was clearly depicted with table 4.2 above is dominated
by respondents who are in the age of 31 – 40 years old covering 80(41.7%). The next higher
group was 62 (32.3%) fall under age categories of 20-30. The remaining groups 30(15.6%) and
20(10.4%) were under the age categories of 41-50 and above 51 years respectively.
Therefore, the Bona zuria woreda education office selected primary school activities have been
mainly conducted by those respondents with the age of 31-40 followed by respondents with age
category between 20-30 years. As the data indicates table 4.2 112(58.3) is Diploma 80 (41.7%)
is BA/Bsc degree of teachers have the Diploma and first degree holder in the above
respectively, reveals, approximately majority of teachers were Diploma holder in Bona
Woreda education office selected primary schools.
As the data indicates that table 4.2 62(32.2%), 98(51.1%), 32(16.7%) of teachers have the
service of 0_5 years, 6-10 years, 11&above years, respectively. These indicate majority of
teachers were above six years in Bona Woreda education office selected primary schools.
4.3 Descriptive analysis
This part of the analysis is made based on survey questionnaire gathered from Bona zuria woreda
education office selected primary school teachers using five point likert‟s scale. The study have
five independent variables such as:-training program, performance appraisal, compensation
management, career development and grievance handling system and the dependent variable
organizational performance. In this section Statistical data analysis tools such as Mean and
standard deviation were used to analyze the collected data.

The objective of this study is to assessing teacher‟s perception regarding human resource
management practices and organizational performance of Bona woreda education office selected
primary schools; accordingly, participants of this study were asked their perception level
agreement/disagreement for various questions related to each variable of the study and their
responses are presented.

But, while making interpretation of the results of mean and standard deviation the scales were
reassigned as follows to make the interpretation easy and clear (Al-Sayaad, Rabea, &Samrah,
(2006).

36
Table 4.3: Five Scaled Likert Criterion

No. Mean range Response Option

1 1-1.8 Strong disagree
2 1.9-2.6 Disagree
3 2.61 to 3.4 Neutral
4 3.5 to 4.2 Agree
5 4.3-5 Strong agree

Source: Al-Sayaad et al. (2006, as cited by Bassam, 2013).

To analyze the collected data in line with the overall objective of the research undertaking,
statistical procedures were carried out using SPSS version 20 software.
Table: 4.4Response to Training program
Item S. Disagree Neutral S. Agree + Mean St.D
+ Disagree Agree
Fre % Fre % Fre %
The training organized by the 128 66. 22 11. 42 21. 2.37 1.32
7 4 9 5
organization improves functioning of
your activity.
Training is effective in improving 117 60. 55 28. 20 10.4 2.24 1.279
9 7
the organizational performance in
service delivery
Training is effective in motivating 123 64 23 12 46 24 2.22 1.271
employees.
Selection for training is based on a 121 63 41 21. 30 15.7 2.45 1.25
3
proper need assessment.
Schools requests feedback from 101 52. 31 16. 60 31.2 2.57 1.225
6 1
trainees before and after training.
My organization does an excellent 87 45. 32 16. 73 38 2.52 1.309
3 7
job of supporting employees to
improve their Educational level

37
My organization sponsored/will 115 59. 40 20. 37 19.3 2.42 1.254
9 8
sponsor me for further education to
acquire new skills, knowledge and
abilities
n=192 Overall mean value, SD, 58. 18. 22. 2.4 1.27
frequency 96 14 9 3
Source: Sample Survey, 2022
As it can be seen from the table 4.4 above, the scored mean value of the training program first
questionnaire sub-construct i.e. training organized to improve employees functioning activity the
average scored mean value of respondents‟ response was 2.37 with the standard deviation 1.325.
This shows that the majority of the respondents were “Disagree”. The scored mean value of this
sub-construct conveys that the respondents were disagree with the case described i.e. training
organized by the organization to improve employees functioning activity which is the crucial
factor in facilitating human resource development. Abdullah (2009), stated in his study once
training and development needs are clearly identified, the next process is to establish or setting
performance objectives. Objectives are specific outcomes that the training program is intended to
achieve. These objectives define the performance that the trainee should be able to display after
training. However, in the offices with regard to organizing training in department level due
attention was not given as the determinant factor for human resource development. This may
reduce organizational effectiveness and performance.
In the Table 4.4 above, the second and third sub-constructs i.e. an effectiveness of training in
improving service delivery, an effectiveness of training in motivating employees accordingly
most of the respondents were “disagree” response rate with the scored mean value 2.24 and 2.22
to both cases described and the standard deviation 1.279,1.271 respectively. This implies that
large number of the respondents were disagree towards the offices‟ action in relation to
effectiveness of training in improving organizational performance in service delivery and
training is effective in motivating employees which play a paramount role to capacitate the
employees‟ potential. Glueck (1982) found that training is a systematic process of altering the
behavior, knowledge, and or motivation of employees in a direction to increase organizational
goal achievements. However, offices are not courageous in effectiveness of training in improving
the organizational performance in service delivery and training is effective in motivating

38
employees. The implication is that unless the schools are designing effective training strategies
that it would be impossible to make the organizations successful.
As showed table 4.4 training program fourth item sub-constructs i.e. proper need assessment
based training selection accordingly most of the respondents were “neutral” response rate with
the scored mean value 2.45 to case described and the standard deviation 1.250. This implies that
large number of the respondents was disagree towards the offices‟ action in Selection for
training is based on a proper need assessment. Within the training context, needs assessment
provides a picture of skills and knowledge of the people in an organization. Here, training needs
assessment can determine level of optimal performance and standards for excellence, evidence of
individuals‟ actual performance level, attitudes affecting performance and root causes of
performance problems. By systematically, analyzing needs organizations can identify solutions
to performance problems that will provide the best return on training and development
investment (Nancy, 2012). However, in the education office as the finding implies that the
existence of problems with respect to training needs assessment which is a determining factor for
human resource directories. This shows that much was not done from this perspective in order to
realize organizational goals.
From table sub-constructs i.e. schools requests feedback from trainees after training accordingly
most of the respondents were “neutral” response rate with the scored mean value 2.57 to case
described and the standard deviation 1.225. This implies that large numbers of the respondents
was disagreeing towards the offices‟ action in requests feedback from trainees before and after
training. Therefore, the researcher concluded that education office has no experience to request
feedback from trainees after training.
According to table 4.4 training program sixth item sub-constructs i.e. supporting employees to
improve their educational level accordingly most of the respondents were “disagree” response
rate with the scored mean value 2.52 to the case described and the standard deviation 1.309. This
implies that large number of the respondents was not agreeing towards the schools‟ action in
organization does an excellent job of supporting employees to improve their educational level.
Which results informs us most of the respondents are agreed by the enhancement of educational
level in organizations. Meyer, P.J. and Smith, A.C., (2000), the main purpose of training and
development is by improving the employee competencies so that organizations can maximize

39
efficiency and effectiveness of their human assets. This shows that much was not done from this
perspective in order to improve employees‟ skill and knowledge.
From table 4.4 training program seventh items sub-constructs i.e. education to acquire new skills,
knowledge and abilities accordingly most of the respondents were “disagree” response rate with
the scored mean value 2.42 to case described and the standard deviation 1.254. This implies that
large numbers of the respondents was neither agreed nor disagree towards the departments‟
action in influence of further education to acquire new skills, knowledge and abilities of
employees‟. From this perspective researcher conclude that schools have no willingness to be
sponsor and to provide trainings locally and abroad to employees.
According to the above table4.4 22.9% of the respondents agreed that training programs which
is given by offices to improve their job performance while a majority 58.96% are disagreed and
the remaining 18.14% are undecided (neutral). Also from table 4.4, Bona zuria Woreda
selected primary schools academic staffs perceptions of training program overall mean was 2.4
and standard deviation was 1.273 which ranges in 1.9-2.6,this implies that all respondents were
disagree level with a given training program related questions respectively. This result showed
that disagree with all training program items. These indicate that the existing training program
has no good practices in order to improving organizational performance in the study area.
Table: 4.5Response to Performance appraisal
Item S. Disagree Neutral S. Agree Mea St.D
+ Disagree + Agree n e
Fre % Fre % Fre %
Performance evaluation criteria and 118 61.4 26 13.6 48 25 2.29 1.315
standard of schools are established
based on job description
Performance appraisal is conducted 100 52.1 30 15. 62 32. 1.2
6 3
fairly without any bias 2.49 17
The objectives of performance appraisal 125 65.1 24 12.5 43 22.4 2.39 1.120
in schools is clear to employees
Performance Appraisal motivates you to 115 59.9 27 14.1 50 26.1 1.0
perform well in the organization 2.52 6
Performance evaluation criteria used by 119 62 17 8.9 56 29.2 2.32 1.2

40
schools are job related 07
N=192 Average 60 13 27 2.4 1.05

Source: Sample Survey, 2022

According to Armstrong (2010), the criteria for reviewing performance should be balanced
between: achievements in relation to objectives; the level of knowledge and skills
possessed and applied (competences or technical competencies); behavior in the job as it
affects performance (competencies); the degree to which behavior upholds the core values of
the organization; day-to-day effectiveness. Employee job performance criteria and standards
should be established based on the job description. Therefore, job descriptions form the broad
criteria against which employee‟s performance is measured. As presented in Table 4.5,
118(61.4%) of the respondents disagreed with the idea that establishment of criteria and
standards of in Bona zuria woreda education office selected primary schools are based on
job description, 48(25%) of the respondents agreed, and 26(13.6%) respondents neither
agreed nor disagreed (neutral). As it can be infer from this, the performance evaluation
criteria and standards are not established based on employees job description.
In the process of performance appraisal, as Armstrong (2001) notes, accuracy and
fairness in measuring employee performance is very important. For a performance appraisal to
be effective, the performance measurement tools should be valid, reliable, acceptable and
specific. Moreover, the evaluation process must be free from any biases.
As indicated in the above table, majority of respondents 100(52.1%) disagreed with the
statement that „performance appraisal is conducted fairly without any bias‟, 62(32.3 %) agreed,
and 30(15.6%) remain neutral. This indicates that of performance appraisal process in the
university is not conducted fairly and free from biases
From table4.5, it is possible to learn that 125(65.1%) of the total respondents disagreed with the
statement that the objective of performance appraisal is clear, while 43 (22.4%) agreed and
24(12.5%) of the respondents became neutral. This shows lack of clarity with performance
appraisal objectives in Bona zuria woreda education office selected primary schools.
The criteria used to measure the performance of the employees should be job related and be able
to measure job related behaviors instead of measuring personal traits. The opinion of
employees regarding the relevance of evaluation criteria are presented as shown in
Table4.5, concerning whether performance evaluation criteria used by the schools are job

41
related or not, majority of the respondents 119(62%) did not agree with this idea, whereas
56(29.2 %) of respondents agreed and 17(8.9%) became neutral. The information from shows
that the major problem of the instrument is that the factors that are used in the evaluation form
are too general and the standards are vague. The majority to shows respondents are performance
evaluation criteria the bona zuria woreda education office selected primary schools not job
related. Table4.5, Performance Appraisal motivates you to perform well in the organization”
majority of the respondents 115(59.9%) did not agree with this idea, whereas 50(26.1 %) of
respondents agreed and 27(14.1%) became neutral.
The overall result of the survey show that the performance appraisal system mean score 2.402
were disagree. This implies that majority of the respondents were not satisfactory on the
performance Appraisal system of their school/organization.
Table: 4.6 Response to compensation management
Item S.Disagree Neutral S. Agree + Mea St.D
+Disagree Agree n
Fre % Fre % Fre %
Compensation system in our 112 58.3 43 22. 37 19.3 2.59 1.315
4
organization are strictly linked to
employee performance
We are satisfied with the benefits we 96 50 25 13. 71 36.8 2.50 1.217
0
receive
I am satisfied with current salary and 124 64.6 25 13 43 22.4 2.47 1.120
other benefits earn schools.
compensation and rewards are fairly 107 56 38 19. 47 24.4 2.46 1.06
6
distributed in our organization
Our organization follows the policy 117 61 27 14 48 25 2.45 1.207
of matching pay with performance
The reward and compensation 113 58.9 33 17. 46 24 2.48 1.145
1
schemes provided by university are
sufficient.
n=192 Average 58 16 26 2.49 1.184
Source: Sample Survey, 2022

42
According to table 4.6 Compensation system in our organization are strictly linked to employee
performance
The respondents level of agreement for statement compensation system in our organization
are strictly linked to employee performance were 112(58.3%) responded did not agreed the
compensation in our organization are not strictly linked to employee performance and 37
(19.3%) were responded agree. 43(22.4%) of the respondent were neutral. So the majority
respondent did not agree compensation systems are not strictly linked to employee performance
in the organization. They responded having a scored mean value of 2.03 this depicts that the
respondents were “disagree” about Compensation system in our organization are strictly linked
to employee performance the with standard deviation 1.336. This benefits we receive statement
show that the respondents were not satisfied with the case described.
From table 4.6 question asked” We are satisfied with the benefits we receive statement
responded disagreed by 96(50%) and agree respondents were 71(36.8%) and the neutral
respondents were 25(13%). When the respondents analysis interpret, it gives a meaning of large
amount of respondents disagree with the are not satisfied the benefits we receive. They
responded having a scored mean value of 2.03 this depicts that the respondents were “disagree”
about the with standard deviation 1.336. This benefits we receive statement show that the
respondents were not satisfied with the case described.
From table4.6indicates that I am pleased with current salary and other benefits earn school
There were 43(22.4%) respondents who satisfied with the current salary and responded agreed,
while 124(37.6%) of the respondent were unsatisfied with their current salary and replied
disagree with the proposed statement. 25(13%) were neutral. They responded having a scored
mean value of 2.03 this depicts that the respondents were “disagree” about current salary and
other benefits earn school the with standard deviation 1.336. This show that the respondents were
not satisfied with the case described. This shows that the majority respondents are not agree with
their current salary paid by the organization.
From table 4.6 compensation management are fairly distributed in our organization 107(4=56%)
of the respondents disagreed for statement “compensation management are fairly distributed in
our organizational and 47(24.4%) were agree with the compensation management are fairly
distributed in our organization. The remaining 38(19.6%) were neutral. They responded having
a scored mean value of 2.03 this shows that the respondents were “disagree” about compensation

43
management are fairly distributed the with standard deviation 1.336. This show that the
respondents were not satisfied with the case described. The result indicates that the
compensation management are not fairly distributed in our organization.
From table 4.6fifth items, the compensation and reward schemes provided by schools are
sufficient
As can be see the table employees proved the compensation and reward system is sufficient 117
(61%) disagreed and 48(25%) agree, 27(14) were neutral compensation and reward schemes
provided by school are not sufficient They responded having a scored mean value of 2.03 this
shows that the respondents were “disagree” about compensation and reward system the with
standard deviation 1.336. This show that the respondents were not satisfied with the case
described.. This indicate the majority respondent did not agree compensation and reward
schemes in the schools not sufficient that the benefit package lacks fairness.
From above table4.6 sixth items, our organization follows the policy of matching pay with
performance
There were 113(58%) respondents our organization follows the policy of matching pay
with performance who responded did not agreed , while 46(24%) of the respondent are agree
were are not satisfied with the policy of matching pay with performance and 33(17.1%) were
neutral. So the majority respondents are not agreed with the policy of matching pay with
performance. They responded having a scored mean value of 2.03 this shows that the
respondents were “disagree” about the sixth items with standard deviation 1.336. This depicts
that the respondents were not satisfied with the case described. according to table 4.10 shows
that the overall mean score for compensation management items were ranging disagree the mean
2.49 and SD value 1.184 with regard to the compensation management, the study result shows
that its score is mean of 2.49 which is disagree. This implies that the teachers were not fell the
current compensation of their organization is satisfactory
Table: 4.7 Respondents response to Career development
Item S. Disagree Neutral/ S. Agree + Mean St.D
+ Disagree Undecided Agree
Fre % Fre % Fre %
Well in working to improve career 108 56. 49 25.5 35 18.2 2.11 1.192
3
development

44
Working for upgrade employees 92 48 27 14.1 73 38.1 2.40 1.287
potential
The organization integrates HRM with 95 49. 32 16.7 65 33.9 2.34 1.222
5
organizational objectives
Good counseling center that benefits all 91 47. 25 13.0 76 39.6 2.03 1.336
4
employees
Is the current salary structure 93 48. 22 11.5 77 40.1 2.26 1.328
4
improving service delivery
Promotion Policy is implemented 99 51. 38 19.8 55 28.7 2.37 1.318
5
properly in my organization
n=192 Average 50. 16.7 33.1 1.28
2 2.25
Source: Sample Survey, 2022
The Table 4.7above clearly shows that, the majority of the respondents were “agree” with first
sub-construct i.e. well in working to improve career development with the scored mean value
2.11. The scored mean value points out that the not satisfied of the respondents with the case
described and the standard deviation was 1.192. From this fact one can deduce that the bona
zuria woreda education office selected primary schools were in a position to consider continuous
employees professional development to fill the existing gaps. This implies that the schools have
limitations in critically assess their effort to promote career development by any means to
increase the satisfaction level of their employees.
The Table 4.7 above clearly shows that, the majority of the respondents were “disagree” with
sub-construct i.e. working for upgrade employees potential the respondents‟ response scored
mean value were 2.4. This signifies that the respondents‟ agreement response rating scale was
“disagree” response rating scale implying that the respondents do not agreed with the issues
described and the standard deviation was 1.287. From this sub-construct one can clearly infer
that the offices were not in a position to consider working for upgrade employees potential as
utmost importance for the growth of employees in accordance with the education, training, job
search and work experience. Employees should trace their career in light of their individual
needs and capabilities. From this perspective the implication is unless the schools are aware of
their potentiality and capabilities in working for upgrade employees‟ potential that could help

45
them to exploit the available opportunities they could not achieve their desired objectives.
Human resource development can transform the organization into a human system by developing
their commitment and integrating the individual employees with the organization.
With regard to the third sub-construct i.e. the integration education office with organizational
objectives the scored mean value response of the respondents was 2.34 with a standard deviation
1.222. From this analysis it can be deduced that the respondents were “disagree” with integration
of offices with organizational objectives indicating that they are not satisfied with the case raised
out. This result signifies that offices are covering behind in linking the two things for the
betterment of their performance.
As it is vividly indicated in Table 4.7 above, the respondents were asked to scale the
measurement i.e. the existence of good counseling center that benefits all employees. They
responded having a scored mean value of 2.03 this shows that the respondents were “disagree”
about the career counseling with standard deviation 1.336. This depicts that the respondents were
not satisfied with the case described. Kola chi (2012), in his comprehensive investigation found
that employees counseling as the determinant factor to build good offices. As it is a process of
dealing with the emotional problems and issues of the employees to make them feel light and
relaxed at work. It can be expressed in terms of appraisal counseling, career counseling and
disciplinary counseling. It is also being done to enable the employees to have positive attitude
towards work and to improve their performance. However, the education offices were unwilling
in handling the psychology of the employees and making them happy at work so that they could
feel gratified while working which ultimately leads to improved and enriched performance
through counseling. Kilam and Neeraj (2012), in their depth assessment in public sector also
found that career planning and development as the most important component of overall
education office system which helps in individual-organizational goal integration.
As it is also illustrated in the Table 4.7 above, in the fifth sub-construct i.e. the effect of salary
structure in improving service delivery the respondents‟ response scored mean value were 2. 26
This signifies that the respondents‟ agreement response rating scale was “disagree” response
rating scale implying that the respondents do not satisfied with the issues described and the
standard deviation was 1.328. From this sub-construct one can clearly infer that the offices were
not in a position to consider the effect of current salary structure in service delivery as utmost
importance for the growth of organizational performance. From this perspective the implication

46
is unless the bona woreda education office selected primary schools are improve current salary
structure they could not achieve their desired objectives.
When we came to sixth sub-constructs i.e. proper implementation of promotion policy
accordingly most of the respondents were “disagree” response rate with the scored mean value
2.37 to the case described and the standard deviation 1.318. This implies that large number of the
respondents was not satisfied towards the offices‟ action in proper implementation of promotion
policy. Which results informs us most of the respondents were disagree by the improvement of
promotion policy in organizations.
W Hirs, C Jackson, IES Report 305, (1996), in their study successful career development
practice is therefore designed to give an organization competitive advantage in attracting,
retaining, and developing the best people. However, in the offices as the finding implies that the
existence of problems with respect to proper implementation of promotion policy which is a
determining factor for human resource officers. This shows that much was not done from this
perspective in order to improve promotion policy implementation this may increase employees‟
turnover.
According to the above table 4.7 a majority 50.2 % of the respondents were disagreed that career
development programs which is implemented by educations offices to encourage employees job
performance as well as to increase organizational performance while 33.1 % are agreed and the
remaining 16.7 % are undecided (neutral) . Also from table 4.7, Bona zuria Woreda selected
primary schools academic staffs perceptions of career development overall mean was 2.4 and
standard deviation was 1.273 which ranges in 1.9-2.6,this implies that all respondents were
disagree level with a given training program related questions respectively.
This indicate that the existing career development practice not a good opportunity in order to
improving organizational performance.

47
Table: 4.8 Respondents response to Grievance handling system

Item S. Disagree + Neutra S. Agree + Mea St.D

Disagree Agree n
Fre % Fre % Fre %
Because of the good grievance resolution, 94 49 39 20. 59 30.8 2.66 1.16
3 0
employees are motivated for their work

I feel that equal treatment of employee 106 55. 26 13. 60 31.3 2.82 1.14
2 5 9
in the organization
I can say that grievance resolution system 106 55. 26 13. 60 31.3 2.82 1.14
2 5 9
reduces the employee turnover rate.
I feel that grievance handling system create 89 46. 33 17. 70 36.5 2.90 1.17
4 2 5
a positive employees‟ job attitude in the
organization.
I feel that grievance handling system 86 44. 29 15. 77 40.1 2.81 1.21
8 1 9
increase employees‟ commitment to the
organizational performance
Is sufficient support from the education 88 45. 30 15. 74 38.5 2.71 1.18
8 6 7
office and schools in grievance handling
system
n=192 Average 48. 16. 35 2.74 1.19
8 2 2
Source: Sample Survey, 2022
The Table 4.8above clearly shows that, the majority of the respondents were “neutral” with sub-
construct i.e. because of the good grievance resolution, employees are motivated for their work
the scored mean value response of the respondents was 2.66 with a standard deviation 1.160.
From this analysis it can be inferred that the respondents were “neutral” with because of the good
grievance resolution employee‟s motivation indicating that they are neither satisfied nor
dissatisfied with the case raised out. This result signifies that offices are lagging behind in
linking the two things for the betterment of their performance.

48
As it is vividly indicated in Table 4.8 above, the respondents were asked to scale the
measurement i.e. existence of equal treatment of employee in the organization. They responded
having a scored mean value of 2.55 this shows that the respondents were “neutral” about the
existence of equal treatment with standard deviation 1.261. This depicts that the respondents
were neither satisfied nor dissatisfied with the case described.
According to the information gathered from survey questionnaire participants in Bona zuria
woreda education office selected primary schools they replied that as do have equal treatment in
principle in order to create motivated workforce, to enhance the capacity of both present and
future knowledge and skills, to increase the ability and productivity of employees, increase
optimum man task relationship, to prepare employees to take higher assignments, and to upgrade
skills and prevent obsolescence. However, in practice explicit tasks were not done in relation to
the issue described existence of equal treatment in each schools. This could affect the
organizational performance.
As it is indicated in the Table 4.8 above, the scored mean value rating of the sub-construct i.e.
grievance resolution system reduces the employee turnover rate was 2.82 signifying that
“neutral” agreement rating scale which indicates that the neither satisfaction nor dissatisfaction
of the respondents with the case described and the standard deviation was 1.149. Moreover, as
the information obtained from survey questionnaire participants each school have limitation in
grievance resolution system due to this there is high employee turnover. Because of this schools
may lose skilled and experienced teachers.

As it can be shown from the Table 4.8 above, considering the grievance handling system create
a positive employees‟ job attitude in the organization the respondents‟ scored mean value was
2.90. This shows that the majority of the respondents were neither agree nor disagree and the
standard deviation was 1.175. From this one can deduce that the organizations have to do a lot of
tasks in creating a positive employees‟ job attitude and preparing module guides to facilitate
HRM activities.

When we come to the fifth sub-construct which is indicated in the Table 4.8 above, is about
employees‟ commitment. Commitment is being bound to a goal or the determination in respect
of a goal, regardless of the origin of the goal and believing in a goal and wanting to achieve it
also reflects a certain degree of commitment. The scored mean value response of the respondents

49
was 2.81 implying that the overwhelming majority of the respondents were “neutral” with the
case described and the standard deviation was 1.219. The scored mean value displays that the
respondents were neither satisfied nor dissatisfied with the issue. Based on this finding one can
deduce that the schools were very reluctant in forwarding employees organizational goals. As
information obtained from key informants in each selected schools showed that they have no
good employee commitment programs.
When we come to the sixth sub-construct which is indicated in the Table above, is about support
from the education office and human resource development officers in grievance handling
system. The scored mean value response of the respondents was 2.71 implying that the
overwhelming majority of the respondents were “neutral” with the case described and the
standard deviation was 1.187. The scored mean value displays that the respondents were neither
satisfied nor dissatisfied with the issue. Based on this finding one can deduce that the
departments were very reluctant support from Bona woreda education office selected primary
schools in grievance handling system. As information obtained from key informants in each
selected schools showed that they have no got good support. Moreover, the informants confirm
the respondents‟ response.
According to the above table 4.8 a majority 48.8% of the respondents disagreed that grievance
handling system which is practiced in schools to stay skilled and experienced employees in
organization to increase its performance while 35% are agreed and the remaining 16.2% are
undecided (neutral) . These indicate that the existing grievance handling practice has no good
opportunity in order to improving organizational performance so; we can recognize there is
constraint in implementing of this specific practice.
Thus made 48.8% of the respondents be dissatisfied with action and existing grievance handling
procedure while only 35% of the respondents have been satisfied with action and existing
grievance handling procedure in their /school/organizations, and 35of the respondents have been
undecided/neutral with action. Overall teachers response average mean value were 2.74 (neutral)
.this implies that the existing grievance handling procedure is not good in their schools

50
Table: 4.9Respondents response to organizational performance

Item S. disagree + S. Agree + Mean St.D

disagree Neutral Agree
Fre. % Fre. % Fre. %
Service delivery is as per teachers 57 29. 114 59. 21 10. 3.14 1.16
7 4 9 0
expectation
Organization considers the customer 76 39. 100 52. 16 8.3 3.19 1.14
6 1 7
feedback and suggestions
Providing infrastructure increase 69 36 90 46. 33 17. 3.32 1.12
9 2 6
employees‟ individual output in the
organization
Suitable work environment increase 69 36 17 8.9 106 55. 3.20 1.2
organizational productivity 2 8 5
Management system bring about 83 43. 82 42. 27 14. 2.94 1.84
3 7 1
greater flexibility and increased
workflow
Team spirit in the organization bring 102 53. 45 23. 45 23. 3.35 1.25
2 4 4 3
about efficiency of productivity
Feel energetic at work and inspiring 73 38 98 51 21 10. 1.3
3.09
9 21
Sense of fulfillment after completing 68 35. 106 55. 18 9.4 1.2
3.08
the work 4 2 63
Strong sense of belonging with the 56 29. 114 59. 21 11. 1.2
3.19
organization 2 3 5 97
n=192 Average 37. 38. 23. 3.167 1.29
8 5 7 5 5
Source: Sample Survey, 2022
From the Table 4.9 above, it is possible to draw the following facts. As it is clearly illustrated in
the Table, the scored mean value of the sub-constructs i.e. deal with customers‟ suggestions or
complaints urgently and with utmost care, service delivery is as per customer expectation,

51
quality of service keeps customers loyal and hence repeated visits take place, commitment to
improve the quality of services regularly they scored mean value response of the respondents fall
between ranges of 2.94-3.32.
This shows that the majority of the respondents neutral with the statements given to them and the
standard deviation were 1.126, 1.160, 1.147 and 1.125 respectively. This implies respondents
“neither” satisfied nor dissatisfied in the cases described. From this we can deduce that the
schools were very unwilling to deal with customers‟ suggestions or complaints, provide deliver
quality service as teachers expectation, to keeps customer loyalty and lack of commitment to
improve services quality. As information obtained from key informants in each selected
departments showed that they have discussion on customers‟ suggestions or complaints and no
commitment to improve services quality in line with customer expectation. This may affect
organizational efficiency.
As it can be shown from the Table 4.9 above, considering the sub-construct i.e. include:
organization considers the customer feedback and suggestions was 3.49, indicating that the
respondents “agreed” in their agreement response showing that they feel all right with the case
described. The standard deviation of this sub-construct was 3.208 this implies that the relative
homogeneity of the respondents on their responses. From this result we can see employees
believe on consideration of customers‟ feedback and suggestions that may help to improve their
performance and to achieve their objectives in the desired way.
In addition, the Table above reveals that, the scored mean value of the respondents‟ response on
the sub-constructs i.e. HRM practice increase employees‟ individual output in the organization,
HRM practice increase organizational productivity, HRM practice bring about greater flexibility
and increased workflow, HRM practice bring about efficiency of productivity which fall between
ranges of 3.08-3.35. This shows that the majority of the respondents neutral with the statements
given to them and the standard deviation were 1.253, 1.321, 1.263, and 1.297 respectively. This
depicts that the overwhelming majority of the respondents “neutral” and they were neither
satisfied nor dissatisfied with the cases described. In short, based on the information given the
departments were not well in widening organizational productivity from these issues perspective.
The implication is that unless the directories HRM practice increase employees‟ individual
output, increase organizational productivity, increase flexibility and workflow and increase
efficiency of productivity it is difficult to them to build the required human resource and to attain

52
organizational goals in the desired manner. Based on the information obtained through
interviews organizational performance in the schools pertaining their long-term effort to improve
an organizations visioning, empowerment, learning, and problem-solving processes, through an
ongoing, collaborative management of organization culture-with special emphasis on the culture
of intact work teams and other team configurations using the consultant facilitator role as the
majority of the respondents replied was insufficient. Furthermore, organizations were slow in
tackling problems like communication, inadequate integration, openness, fairness in treating
employees, compensation and job security, and in problem solving culture especially, as reported
by focus group participants.
As it can be described in the Table 4.9 above, the respondents “agreed” on the sub-constructs
including: feel energetic at work, job is inspiring, sense of fulfillment after completing the work,
and strong sense of belonging with the they scored mean value response of the respondents fall
between ranges of 3.09,3.08 ,3.19 scored respectively
This shows that the majority of the respondents neutral with the statements given to them
implying that the respondents were satisfied with the cases described. From this fact it is possible
to conclude that the organizations were well in doing feel energetic at work, job is inspiring,
sense of fulfillment after completing the work and strong sense of belonging with the of the
organization. Moreover, the departments were better off in described issues which implies that
the process of identifying job-related knowledge and skills that are needed to support the
organizations' short-range and long-range goals. It is quite clear that, unless employee
engagement is carefully examined in line with the schools‟ strategic goals and job plans the
required target could not be achieved.
According to the above table 4.9 relatively a majority 38.5% of the respondents
undecided/neutral that achieved organizational performance while 23.7% are agreed and the
remaining 37.8% are disagree. These indicate that the existing organizational performance is
relatively good opportunity in order to improving organizational performance so; but we can
recognize there is still limitation in implementing of HRM practices to achieve desired
organizational objectives.
4.4. Correlation Analysis of the study
The hypotheses discussed in the first chapter aimed to investigate the relationship between
independent variables (training program, performance appraisal, compensation management

53
career development and grievance handling system) and dependent variable (organizational
performance) in Bona Woreda education office selected primary schools. Correlation means
relationship between two variables. Correlation Analysis is to show the strength of the
association between the variables involved. Inter-correlations coefficients (r) were calculated by
using the Pearson‟s Product Moment Alwadaei (2010). Field (2006) also state that the output of
correlation matrix can be the correlation coefficient that lies between -1 and +1 within this
framework, a correlation coefficient of +1 indicates a perfect positive relationship, and a
correlation coefficient of -1 indicates a perfect negative relationship; whereas a coefficient of 0
indicates no liner relationship.
Table 4.10 below clearly shows that the relationship between two variables
Table 4.10 Correlation Coefficient
Correlation coefficient(r) Strength of the correlation
From 0.01 up to 0.09 Negligible association
From 0.10 up to 0.29 Low association
From 0.30 up to 0.49 Moderate association
From0.50 upto0.69 Substantial association
From 0.70 and above Very strong association
Source: Kotrlik, J. C. Atherton, A. Williams and M. KhataJabor.(2011)
Determining the degree of association between the selected internal factors (training program,
performance appraisal, compensation management, career development and grievance handling)
and organizational performance is the main purpose of conducting an analysis using Pearson
correlation. So, in this section the five hypotheses were tested based on the correlation result
summarized in table 4.11 below.

54
Table 4.11 Correlation Analysis between Independent variables and Dependent Variable
Correlations
PA TD CM CD GH OP
** *
PA Pearson Correlation 1 .418 .508 .428 .349 .706**
* **

Sig. (2-tailed) .000 .000 .000 .000 .000

TP Pearson Correlation .418 1 .474 .380* .271 .747**
** * **
*
Sig. (2-tailed) .000 .000 .000 .000 .000
**
CD Pearson Correlation .428 .380 .562 1 .480* .754**
** *

Sig. (2-tailed) .000 .000 .000 0.000 .000 .000

CM Pearson correlation .508 .474* 1 .562 .469 .742
* *
Sig. (2-tailed) .000 .000 .000 0.000 .000 .000
GH Pearson Correlation .349* .271* .469 .480* 1 .716**
*
*
Sig. (2-tailed) .000 .000 0.00 .000 0.00 .000
0
OP Pearson Correlation .706 .747* .742 .754* .716 1
** * * **

Sig. (2-tailed) .000 .000 0.00 .000 .000

N 192 192 192 192 192 192
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed
Source: Sample Survey, 2022
4.4.1.1 Correlation Analysis between Performance appraisal and Organizational
performance

55
According to the table 4.11, there is a significant and positive relationship of the performance
appraisal practice and organizational performance in the bona Woreda education office selected
primary school (r= .706**, sig=0.000). The magnitude of relationship between the two variables
is strong positive relation and statistical significantly. The positive correlation means
performance appraisal results in increasingly positive organizational performance.
4.4.1.2 Correlation Analysis between Training program and Organizational performance
According to table 4.11, represents the table of correlation where two variables training program
and organizational performance are positively correlated (r=.747, sig= 0.000). The positive
correlation means training program results in increasingly positive organizational performance.
The magnitude of relationship between the two variables is strong positive relation and statistical
significantly.
Empirically, Kasau (2014) founded that the correlation of training program was positive and
significant on actual organizational performance. This showed that, the result of the present
study was consistent with this empirical evidence cited.
4.4.1.3 Correlation Analysis between Compensation management and Organizational
performance
Regarding the correlation between compensation management and organizational performance
the study results also showed table 4.11 they have strong, positive and significant relationship
(r=0.742, sig=0.000).This implies compensation management have strong positive relation and
positive level of correlation with organizational performance.
4.4.1.4 Correlation Analysis between Career Development and Organizational
performance
As shown in table 4.11, results of the correlation shows that there is a significant positive
relationship between the career development practice and organizational performance (r=0.754,
sig=0.000). This implies career development have strong positive relation and positive level of
correlation with organizational performance.
Empirically, Zulfqar Ahmad Bowra (2012) career development was positive and statistically
significant on organizational performance significant at 5% level of significance. Therefore, as
mentioned above, the result was consistent with empirical studies.
4.4.1.5 Correlation Analysis between Grievance Handling System and Organizational
Performance

56
The correlation between organizational performance and grievance handling was founded as
(r=.716**, sig=0.000) with a positive significant relationship between the two variables.
According to A. Williams and M. KhataJabor (2011) magnitude of relationship between the two
variables it is found to be strong relationship.
Empirically, Victor Melchades (2013) founded that the correlation of grievance handling was
positive and significant on actual organizational performance. This shows that, the result of the
present study was consistent with this empirical evidence cited.
Therefore, (all research specific objective) human resource practice (training program,
performance appraisal career development, compensation management and grievance handling)
in this study have a positive and significant correlation with organizational performance.
4.5Regression analysis of the study
Regression model was applied to test how far the Human resource management practice has
effect on the employees‟ organizational performance. Coefficient of determination R is the
measure of proportion of the variance of dependent variables about its mean that is explained by
the independent or predictor variables. It is conducted to investigate the effect of independent
variable on the dependent variable and identify the relative significant influence; i.e. Independent
variable (training program, compensation management, performance appraisal, career
development and grievance handling) to the dependent variable; i.e. employees‟ organizational
performance in the organization. Higher value of R represents greater explanatory power of the
regression equation.
4.5.1 Multiple Linear Regression Assumption
Prior to running the analysis of multiple regression models, it is mandatory to assess whether the
collected data violate some key assumptions of the standard linear regression models because an
assumption violation can result in distorted and biased parameter estimates. The assumptions
include normality, multi-co linearity, linearity, Homoscedasticity and independence of residuals
crucial to confirm them.
Assumption 1 – Multi co linearity of the variables
Table 4.12 Multi co linearity
Multi Co-linearity Statistics
Tolerance VIF

Performance appraisal .463 2.160

57
 Training program .532 1.880

Compensation .486 2.552

management
Career development .447 2.237

Grievance handling .447 2.240

a. Dependent Variable: Organizational performance

Source: Own Survey, SPSS result 2022

In table 4.12above, the column “Co linearity Statistics” is used to identify the multi co linearity
problem of the independent variables (training program, performance appraisal, compensation
management, career development and grievance handling). Multi co linearity is usually regarded
as a problem because it means that the regression coefficients may be unstable. This implies that
they are likely to be subject to considerable variability from sample to sample. In any case, when
two variables are very highly correlated, there seems little point in treating them as separate
entities (Savatsomboon, 2010).

According to Garson (2012), multi co linearity is an unacceptably high level of inter correlation
among the independent variables, such that the effects of the independents cannot be separated.
Beta weights and R-squares cannot be interpreted reliably even though predicted values are still
the best estimate using the given independents (training program, performance appraisal,
compensation management, career development and grievance handling). As a rule of thumb,
inter correlation among the independent variables above 0.80 signals a possible problem.
Likewise, high multi co linearity is signaled when high R-squared and significant F tests of the
model occur in combination with non-significant t-tests of coefficients.

Tolerance and Variance Inflation Factor (VIF) of table 4.12 above are the means to identify the
existence of multi co linearity problem. If the tolerance value is less than some cutoff value,
usually 0.20, the independent variable should be dropped from the analysis due to multi co
linearity. VIF may be used in lieu of tolerance as VIF is simply the reciprocal of tolerance. The
rule of thumb is that VIF>4.0 when multi co linearity is a problem (Garson, 2012).
Therefore, according to Garson (2012), table 4.12 has tolerance values for all five of independent
variables (Training program, Performance appraisal, Compensation management, Career
development and Grievance handling) more than 0.20
58
Assumption 2- Independence of Residuals:
The independence of the residuals can be measured by Durbin-Watson statistics. The value of
the Durbin-Watson statistic ranges from 0 to 4. As a general rule, the residuals are independent
(not correlated form one observation to the other one) if the Durbin-Watson statistic is
approximately 2, and an acceptable range is 1.50 - 2.50 (Muluadam, 2015).
For this study table- 4.13, the output value of Durbin-Watson is 1.904; indicating that there is no
correlation among the residuals.
Table 4.13: Durbin-Watson Statistics for Independence of Residuals

Model R R Adjusted R Std. Error of the Durbin-

Square Square Estimate Watson
1 .820 .618 .608 8.132 1.904
a

Source: sample Survey SPSS result 2022

Assumption 3 – Normality Test:
Normality test states that the normality can be seen on the data distribution when the curve does
not pass through either the left or the right (Ghozali, 2006). To check whether the residuals have
a normal distribution, scatter plots of residuals against each independent variable and predicted
dependent variable were analyzed (i.e. the normal probability plot or normal P-P of regression
standard residual and histogram were used). As depicted follows, it shows that the data output is
normally distributed.

59
Assumption 4 - Linearity Relationship:
The fourth assumption for computing multiple regressions is testing of the linear relationships
between dependent and the independent variables. As depicted in following figure, the visual
inspections of the scatter plot show there exists a linear relationship between the predictors
(independent variables) and the predicted variable (organizations‟ performance). This means
that, a unit increase of the one or all predictors causes respective increments for the
organizations‟ performance of the schools.

Assumption 5- Homoscedasticity

60
Homoscedasticity test was conducted to see a situation in which the error term is the same across
all the values of the independent variables. Accordingly the assumption of homoscedastic is not
violated as seen in figure 4.3 Homoscedasticity below.

Generally, as it is clearly stated in the above section, the five assumption of pre-model fitting
`assumption tests were found to be satisfactory.
4.6. Analysis of Variance (ANOVA)
Table: 4.14Results showing analysis of Variance (ANOVA) of Regressions Analysis
ANOVAa
Model Sum of Df Mean F Sig.
Squares Square
1 Regression 10240.322 5 2048.0644 40.045 .000b
Residual 9512.928 186 51.144
Total 19753.250 191
a. Dependent Variable: organizational performance
b. Predictors: (Constant), grievance handling, training program, performance
appraisal, compensation management and career development
Source: Sample Survey, 2022

According to table 4.14, shows analysis of variance (ANOVA) of regression analysis between
independent variables considered and a dependent variable organizational performance were
examined. The ANOVA tells us whether the model, overall, results in a significantly good
degree of prediction of the outcome variable (Field, 2009). The table depicts that in regression,

61
the value of sum of squares is 10240.322, the value of degree of freedom (df) is 5, and the value
of mean square is 2048.0644. The most important part of the table is the F-ratio, which is
calculated using the below equation, and the associated significance value of that F-ratio. F-ratio
is a measure of how much the model has improved the prediction of the dependent variable
(organizational performance) compared to the level of inaccuracy of the model (Field, 2009).
Here, each sum of squares (i.e., Regression, residual, and total under the source of column) has
corresponding degrees of freedom (DF) associated with it. Total degree of freedom is n-1(192-
1=186) one less than the number of observation.
The regression degree of freedom for the above table 4.14 is 5, which is the number of
independent variables (training program, compensation management, performance appraisal,
career development, grievance handling system) in the model of this study. The residual sum of
squares (Residual for left over) is sometimes known as error. Sum of squares is that part is
cannot be accounted for after regression model is fitted. It has 186 degrees of freedom (191-5)
for this research study
The value of F-statistics is 40.045 which is significant at p< 0.001(because the value in the
column labeled Sig. is less than .001). This result tells us that there is less than a 0.1% chance
that an F-ratio this large would happen if the null hypothesis true. The significant level in
ANOVA table shows that the combination of the variables significantly predicts the dependent
variable. On the other hand, in residual, the value of sum of squares is 9512.928, the value of df
is 187 and the value of mean square is 51.144 were.

F ratio = = =40.045

According to Field (2009) if a model is good, then we expect the improvement in prediction due
to the model to be large and the difference between the model and the observed data or mean
square residual to be small. In short, a good model should have a large F-ratio (greater than 1 at
least) because the mean square regression will be bigger than the mean square residual.
According to table 4.14, the ANOVA table result shows a relationship between the independent
variables and dependent variable of the study with F-statistic or F-ratio of 40.045
4.7 Effects of HRM practices on Organizational Performance
To test the hypothesis, it was deemed appropriate to use multiple linear regression estimations
for testing the proposed hypothesis since multiple linear regression refers to an analysis

62
concerned with the study of the dependence of one variable, the dependent variable on more
other variables, the independent variables, with a view to estimating and/or predicting the
(population) mean or average value of the former in terms of the values of the latter (Gujarati,
2006).
Due to the existence of significant correlations between training program, performance appraisal,
compensation management, career development and grievance handling with organizational
performance, it was necessary to establish the strength of the predictive relationships between the
variables. In line with the existence of significant associations amongst the constructs, regression
analysis was conducted in order to examine the correlation more closely and to examine the
effects of the independent variables on the dependent variable. To test the predictive
relationships training program, performance appraisal, compensation management, career
development and grievance handling were used as independent variables and organizational
performance was used as dependent variable.

Table 4.15 Model Summary

Model Summary
Model R R Square Adjusted R Std. Error of
Square the Estimate
1 .820a .618 .608 8.132
a. Predictors: (Constant), grievance handling, training program, performance
appraisal, compensation management and career development
b. Dependent Variable: organizational performance
Source: (field survey, 2022)
From the model summary in table 4.15, the value of (R=.820a) is representing the multiple
correlation coefficient which are correlation between the predicted values of the dependent
variable organizational performance the values of R ranges from 0 to1 . Larger values of R show
stronger relation between variables. This results show that there is a significant relationship
between independent variables (training program, performance appraisal, compensation

63
management ,career development and grievance handling ) and a dependent variable namely
organizational performance, because the value of R is 0.82 or (82%).
The value of R square is the proportion of variation in dependent variable explained by the five
independent variables (grievance handling, training program, performance appraisal
compensation management, career development). Like R, the value of R square also ranges
from 0 to 1. The value of R square is 0.618 (61.8%). It measures that how much variability in the
outcome is accounted for by the independent variables. The result shows that 61.8% variation
was explained or caused by the considered independent variables. In other words, 38.2% of the
variation in organizational performance cannot be explained by these five independent variables.
Positivity and significance of all values show that the model summary is also significant and
therefore gives logical support to the study model.
Positivity and significance of all values shows that model summary is also significant and
therefore gives logical support to the present study model. The model is statistically significant
or the p-value for the model is less than (0.01). This means the fitness of the model in explaining
organizational performance is influenced by the independent variables considered.

Table 4.16 Multiple Regression Coefficient

Multiple Regression Coefficient
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
Beta Std. Beta
Error
1 (Constant) 20.7 2.470 8.41
84 6 .000
Performance appraisal .183 .085 .105 2.072 .001
training program .260 .094 .141 2.725 .000
Compensation .326 .108 .214 3.841 0.002
management
career development .419 .181 .284 4.277 .000

64
 Grievance handling .345 .110 .259 3.953 .000

a. Dependent Variable: organizational performance

Source: Sample Survey, SPSS result, 2022

The beta values tell what degree each independent variable affects the outcome if the effects of
all other predictors are held constant.

Each of the beta values has an associated standard error indicating to what extent these values
would vary across different samples, and these standard errors are used to determine whether or
not beta value differ significantly from zero. The t-test associated with b-value is significant (if
the value in the column labeled Sig. is less 0.05) then the predictor is making significant
contribution to the model. The smaller value of the significance (the larger value of t), implies
the greater contribution of that predictor. For this model, performance appraisal (t (192) = .2.072,
p>.05), training program (t (192) = 2.725, p<.05), career development (t (192) = 4.277, p<.05)
grievance handling (t (192) = 3.953, p<.05) and compensation management (t (192) = 2.3854,
p<.05).
From table 4.16 the standard deviation of this distribution (known as the standard error) as a
measure of the similarity of beta-values across the sampled practices members. If the standard
error is very small, then it means that most samples are likely to have a beta-value similar to the
one in our sample (because there is little variation across sampled practices members). When the
standard error is small even a small deviation from zero can reflect a meaningful difference
because beta is representative of the majority of possible samples. The following hypotheses
were tested using multiple regression analysis to know if there is an effect of independent
variables on the dependent variable. According to the decision rule: accept the null hypothesis
(Ho) if the significance level (𝛼) of the variable is greater than the (0.05) significance level,
reject (Ha) if the significance level (𝛼) of the variable is equal or less than (0.05) (Sekaran,
2004). According to the previous decision rule, the researcher has tested the proposed hypotheses
and found the following results:
Results showed that there was a statistically significant effect for all independent variables
(training program, performance appraisal, compensation management career development and
grievance handling) on the dependent variable (organizational performance).

65
Beta values were calculated to examine the individual contributions of the independent variable
towards dependent variable. It was calculated by relating independent variable towards
dependent variable. It was calculated by relating variable jointly with independent variable, and
also t-value was calculated to know the significance of the level of the independent variables to
be explained individually. T-value in this model was calculated by taking each independent
variable separately with dependent variable. As the model clearly shows, t-values except
recruitment and selection other three cases support the hypothesis of the study according to
statistical rule which says, if t-value is greater than two (2), then hypothesis can be accepted
(Bryman & Bell, 2003).
Beta coefficient
To compare the different variables, it is important that you look at the standardized coefficients,
not the unstandardized ones. „Standardized‟ means that these values for each of the different
variables have been converted to the same scale so that you can compare them. If you were
interested in constructing a regression equation, you would use the unstandardized coefficient
values listed as B (Pallant, 2016).
Unstandardized Beta Coefficient
By recalling the model specifications of the variables from the chapter three of methodology
part, it was said that, the unstandardized coefficients (𝞫1 up to 𝞫5) are the coefficients of the
estimated regression model. Hence, the model of organizational performance can be written by
including error term (£), in the below form.
Y= β0 + β1X1+ β2 X2 + β3X3 + β4X4 + β5X5 + £
Where, Y = Dependent Variable
β1= unstandardized regression coefficient of training program
β2= unstandardized regression coefficient of Performance appraisal
β3= unstandardized regression coefficient of career development
β4= unstandardized regression coefficient of compensation management
β5= unstandardized regression coefficient of grievance handling
£ = error term
Taking in to consideration the results from table 4.16, the regression equation for the study was
as follows:
Y=20.784+ .260X1+ .183X2+ .419X3+ .326 X4 + .345X5+2.470

66
Interpretation:
Keeping all other variables Constant;
The regression coefficient result table 4.16 shows that, there was a significant positive
relationship between training program and organizational performance with Beta value of
b=0.26, p<0.05). This can be interpreted as, for a unit change in training program there will be a
26% percent change on organizational performance. Therefore, from this we can inferred that
training program has a strong and a significant impact on the organizational performance.
This result supports the findings of Janes (2018) conducted a study impact of employee
training on organizational performance, a case study of drilling companies in Geita the study
results found that employee training has a significant effect on the performance of drilling
companies.

The regression coefficient result shows that, there was a significant positive relationship between
training program and organizational performance with Beta value of b=0.419, p<0.05). This beta
coefficient of career development was the highest among the four independent variables.

The table 4.16 also show that performance appraisal system also has a significant
positive relationship with organizational performance with Beta b=0.183, p<0.05 there will
be significant change in organizational performance as a unit change on performance Appraisal
system. For every one-unit increment on Performance appraisal of HRM practices, the
percentage of organizational performance increases by18.3%.

According to table 4.16 beta results 41.9 is the expected change in performance of employee per
unit change in the career development when the rest variables hold constant. That means, if the
career development increase, the performance of employee be increase. Career development
has significant influence on the increase in employee organizational performance because
career development which is managed well by an organization will provide good spirit
for its employees to achieve their expected careers by increasing their motivation. In
other words, the better the career development in a certain organization, the better the
employee performance in the organization. career advancement, training and education,
growth opportunity and promotion are considered to be powerful motivation factors for
employees to satisfy their need for esteem and self-actualization (Lai, 2009), According to
the Herzberg two factor theory, personal growth and development are known to be intrinsic

67
factor, which make employee satisfied when these are met, and they, thereafter, become
motivated. However, criteria must be set correctly for the purpose of promotion and growth, so
that employees become motivated by fulfilling those, (Brewster et al, 2003).

From table 4.16 beta value result similarly, the expected change in performance of employee per
unit change in compensation item is 0.326, when the rest variables hold constant. This
indicates that having a favorable compensation system has a positive significant relationship
with performance of employee. Compensation has been pointed out as a motivational factor
by a large number of researchers. It is often seen as a symbol of success and also
associated with comfort and security, (Engelberg, &Sjöberg, 2006). It is considered as an
advantage for the managements, because they can use compensation as a strategy since
compensation can have a great impact on employees‟ performance.

Some researchers have stated that motivation is the main instrument to be used. Knowing that
it exists a direct correlation between compensation and the results obtained Androniceanu,
(2011) Motivation of the Human Resources for a Sustainable Organizational development.
Some researchers suggest (Murphy, 1981) that the employee should be motivated through a
proportional compensation according to the efforts done in the job. Therefore for every one-unit
increment on compensation management of HRM practices, the percentage of organizational
performance increases by 32.6%.

From table 4.16, that grievance handling system has significant influence on organizational
performance As shown the above table the regression coefficient result of grievance handling
was Beta b=0.34.5, p<0.05, For every one-unit increment on grievance handling of HRM
practices, the percentage of organizational performance increases by 34.5%.

From the regression equation, the constant value β0= 20.784 implies that, if the independent
variables are mentioned in this study are kept constant as they exist or make them unavailable,
the organizational performance of the Bona zuria Woreda education office selected public
primary school would be less. This shows that the HRM practices components are vital for the
growth and improvements of the organizational performance.
Standardized Beta Coefficient
The standardized coefficients are the coefficients which explain the relative importance weight
(RIW) of explanatory variables. These coefficients are obtained from regression after the
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explanatory variables are all standardized. The idea is that the coefficients of explanatory
variables can be more easily compared with each other as they are then on the same scale. From
the above table- 4.16 that the career development practices standardized coefficient is larger than
the other four determinants of organizational performance. The second is grievance handling and
third , fourth and fifth factors are; compensation management, training program and performance
appraisal respectively. The larger the standardized coefficient, the higher is the relative
importance and contribution of the factor to the organizational performances of the HRM
practices.
Interpretation:
A 1 standard deviation increase in standardized performance appraisal practices is predicted to
result in 0.105 standard deviation increase in standardized organizational performance holding
constant the remaining variables.
A 1 standard deviation increase in standardized training program practices is predicted to result
in 0.141 standard deviation increase in standardized organizational performance holding constant
the remaining variables.
A 1 standard deviation increase in standardized career development practices is predicted to
result in 0.284 standard deviation increase in standardized organizational performance holding
constant.
A 1 standard deviation increase in standardized compensation management practices is predicted
to result in 0.214 standard deviation increase in standardized organizational performance holding
constant the remaining variables the remaining variables.
A 1 standard deviation increase in standardized grievance handling practices is predicted to
result in 0.259 standard deviation increase in standardized organizational performance holding
constant the remaining variables.
4.8 Hypothesis Discussion
Hypothesis testing is the method of testing whether claims or hypothesis regarding a population
are likely to be true. The goal of hypothesis testing is to determine the likelihood that a
population parameter. Here there are two hypotheses: null (Ho), and alternative (Ha). The
significance (sig.) value expresses a value to accept or reject the (null) hypothesis. It is also
called the P-value. The P-value is the probability that the correlation is one just by chance.
Therefore, the smaller the P-value, the better will be.

69
In this part of the study, proof of the null hypothesis is made based on table 4.16 for the
independent variables. Because, to test the research hypothesis already set in chapter one, it is
possible to find out if the independent variables are significant predictors of the dependent
variable.
The research is being done at 95% confidence interval. Hence, each hypothesis should be either
accepted or rejected with reference to 5% level of significance; i.e. the hypothesis must be
rejected if P- value is less than 0.05 other wise accept it.
4.7.2 Developed Hypothesis Test Result
Ho1: Training program has no statistically significant effect on organizational performance
(OP).
According to table 4.16, the significant value for training program is 0.000 which is less than p
value of 0.05. Therefore, Ho1 is rejected, which indicates that training program has a statistically
significant effect on the organizational performance of Bona Woreda education office selected
primary schools.
Hence, the above proposed hypothesis is rejected and the alternative hypothesis is accepted;
which indicates that training program has a statistically significant effect on the organizational
performance of study area. Thus the above result is supported by Mutiso M. Christine (2010) in
which training program has a significant influence on organizational performance.
Ho2: Performance appraisal has no statistically significant effect on organizational
performance (OP).
According to table 4.16, the significant value for performance appraisal is 0.001 which is less
than p value of 0.05. Therefore, Ho2 is rejected, which indicates that performance appraisal has a
statistically positive and significant effect on the organizational performance of Bona Woreda
education office selected public primary schools. Thus, the study result supports the study of
Cunha (2002) showed that Performance management has a positive and significant impact on
organizational performance
Ho3: Compensation management has no statistically significant effect on organizational
performance (OP).
According to table 4.16, the significant value for motivation is 0.000 which is less than p value
of 0.05. Therefore, Ho3 is rejected, which indicates that compensation management has a

70
statistically significant effect on the organizational performance of Bona Woreda education
office selected public primary schools.
Hence, the above proposed hypothesis is rejected and the alternative hypothesis is accepted;
which indicates that compensation management has a statistically significant effect on the
organizational performance of Bona zuria Woreda education office selected public primary
schools. This result supports to the findings of Fey and Bjorkman, 2001;) A
compensation and reward system are based on the expectancy theory, which suggests that
employees are more likely to be motivated to perform when they perceive that there is a strong
link between their performance and the compensation they receive
Ho4: Career development has no statistically significant effect on organizational
performance (OP).
The result of multiple linear regression analysis of the table 4.16, above clearly indicates that
career development has significant influence on organizational performance (p<0.05). Thus, the
above proposed hypothesis (Ho4) is rejected and the alternative hypothesis (Ha4) is accepted.
The above result is supported by Simachew Amare (2014) study.
Ho5: Grievance handling system has no statistically significant effect on organizational
performance (OP).
From table 4.16, that grievance handling system has significant influence on organizational
performance (p<0.05). Therefore, Ho5 is rejected, which indicates that grievance handling
system has statistically significant effect on the organizational performance of Bona Woreda
education office selected public primary schools. Thus the above result is supported by Victor
Melchades (2013) in which grievance handling system has as significant influence on
organizational performance.
Table 4.17: Summary of hypothesis test result
No. Hypothesis Tool Result
Ha1 Performance appraisal has statistically significant effect on Regression Accepted
organizational performance (OP).
Ha2 Training program has statistically significant effect on Regression Accepted
organizational performance (OP).
Ha3 Compensation has statistically significant effect on
organizational performance (OP). Regression Accepted

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Ha4 Career development has statistically significant effect on Regression Accepted
organizational performance (OP).
Ha5 Grievance handling system has statistically significant Regression Accepted
effect on organizational performance (OP).
Source: Sample survey data ,SPSS 20 result(2022)

CHAPTER FIVE

SUMMARY OF MAJOR FINDINGS, CONCLUSIONS AND RECOMMENDATION

Introduction
This research had an aim of investigating the effect of selected HRM practice which is training
program, performance appraisal, compensation management career development and grievance
handling system on organizational performance. The research study examine how well the
selected HRM practices are being exercised how well teachers are performing their job in the
schools by looking at their mean scores of the response of the participants descriptive statistical
analysis, investigating the relationship between each determinant factors and organizational
performance using, correlation analysis and regression analysis to determine the extent of change
in organizational performance. In this section, summary of major findings, conclusions
conditional from the data analysis in chapter four, and suggested recommendations are illustrated
in detail.

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5.1 Summary of Findings
The data analyzed using descriptive statistics, correlation and regression major findings were
presented below in a summarized as follows:
Training program is vital for the improvement of individual and organizational goal attainment.
As the finding in Table 4.4 correspondingly depict, the training conducted by the organization
was not sufficient and satisfactory.
From the arithmetic mean values generated by the descriptive statistics, it shows that training
program (mean=2.4) are below average mean (ranging disagree). From this we can understand
that teachers of selected primary schools were dissatisfied with training program. thus training
program need improvements so that teachers will bring the better result that as the schools
expects from its teachers. Training program has Pearson correlation coefficient (r= 0.747,
p<0.01) which show positive and significant relation with organizational performance as
hypothesized. And, when we see the regression result (Beta=0.260) with (Sig. = 0.01) which can
infer that training program has positive and significant effect on organizational performance as
stated in the hypothesis. Thus, the null hypothesis (Ho2) is rejected.

From descriptive statistical analysis result table 4.5 shows that Performance Appraisal Practices
perceived by the majority of the respondents as a bad practice on the organization.
From the average mean values generated by the descriptive statistics, it shows that performance
appraisal (mean=2.402) which are ranging disagree). From this we can know that teachers of
selected primary schools were dissatisfied with system of performance appraisal .from chapter
four table4.11 performance appraisal has Pearson correlation coefficient (r= 0.706, sig =0.001)
which show positive and significant relation with organizational performance as hypothesized.
And, when we see the regression result (Beta=0.183) with (Sig. = 0.001) which can conclude
that performance appraisal has positive and significant effect on organizational performance as
stated in the hypothesis. Thus, the null hypothesis (Ho1) is rejected
From descriptive analysis section of the chapter four table 4.6 Compensation management
practice were one of the independent variable which also the majority of the respondents
perceived that there is no good compensation management system in the selected primary
schools of bona woreda.

73
From the overall mean values generated by the descriptive statistics, it shows that compensation
management (mean=2.41) which are ranging disagree). From this we can understand that
teachers of selected primary schools were dissatisfied with compensation management practice
in the schools. According to chapter four table4.11 compensation management has Pearson
correlation coefficient (r= 0.742, sig=0.002) which show positive and significant relation with
organizational performance as hypothesized. And, when we see the regression result
(Beta=0.183) with (Sig. = 0.001) which can conclude that compensation management has
positive and significant effect on organizational performance as stated in the hypothesis. Thus,
the null hypothesis (Ho3) is rejected
Career development deals with the fundamental nature of the relationship of individuals to their
work and employees to their organizations. As the finding in table 4.7 also represent, not proper
implementation of promotion policy not existence of an adequate promotion policy. Hence, there
is no well working for upgrade employees potential. Further, well in working to improve career
development as majority of them indicated. Nevertheless, existence of good career planning and
development and the integration of career development with organizational objectives need
attention. The reason for this might be consulting irrelevant organization and lack of skilled
HRM specialist to manage career planning.
From the arithmetic mean values generated by the descriptive statistics, it shows that career
development (mean=2.25) are below the average cut-off point of 2.6. This shows the lowest
mean values, are in need of greater and especial attention.
On the same line career development practice has a correlation result (r=0.754, p<0.01) and
regression result (Beta=0.419) with (Sig. = 0.000) in which we can conclude that career
development practice has positive and significant relationship and high contribution to
explaining the dependent variable of organization performance which is the same result with
Zulfqar Ahmad Bowra (2012) study the promotions practices have a positive and significant
contribution of 0.1147 in explaining the employee perceived performance and significant at 5%
level of significance. Therefore, the null hypothesis (Ho4) is rejected
The existing diversity at many workplaces around the world in terms of age, gender, nationality,
ethnic and religious background among employees requires an organized way of managing or
solving grievance in the organization. As the finding in Table 4.8 also represent, not proper
implementation of grievance handling system not existence of an adequate grievance handling

74
policy. Hence, there is no simple and effective grievance resolution manner. Further, grievance
resolution system not reduces the employee turnover rate. Nevertheless, equal treatments of
employees in the organization need attention. The reason for this might be consulting irrelevant
organization and lack of skilled HRM specialist to manage disputes and conflict.
From the arithmetic mean values generated by the descriptive statistics, it shows that grievance
handling system (mean=2.74) is below the average cut-off point of 3. From this we can
understand that teachers of selected schools are disagreed or dissatisfied with the grievance
handling practice. From regression analysis grievance handling has (r=0.716 sig=0.001), which
implies that there is positive significant relationship with organizational performance as well as
(Beta=0.345) with (Sig. = 0.000) which infer that there is positive effect and high level of
contribution among other practices of the selected primary schools. Hence, the null hypothesis
(Ho5) is rejected.
Finally, overall bundles HRM factors which includes training program, performance appraisal,
compensation management and career development and grievance handling with F-value 40.045
significant at 0.000 have 61.8 % of the variation on organizational performance is contributed in
Bona zuria Woreda education office selected primary schools.
5.2 Conclusion
The study, after doing different analyses that the research objectives need, arrived and based on
the major findings, the following conclusions were made:
Selected HRM practices examined in this study, especially training program, performance
appraisal, compensation management, career development and grievance handling culture in
Bona zuria Woreda education office selected primary schools are not being implemented
properly as they have to be put into effect. That means there are still limitations in implementing
these practice, because of resource shortage, lack of capacity and awareness, and loose linkage
between performance and compensation system.
According to correlation and regression analysis results training program has pearson
correlation positive significant relation and unstandardized coefficient beta value has positive
significant effect on organizational performance of bona zuria Woreda education office selected
primary schools and alternative hypothesis validated and acceptable(sig=0.001)

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According to correlation and regression results performance appraisal has significant positive
relation and positive significant effect on organizational performance of bona zuria Woreda
education office selected primary schools.
As depicted correlation and regression results compensation management has significant positive
relation and positive significant effect on organizational performance of bona zuria Woreda
education office selected primary schools.
From the statistical analysis the researcher found that career development has a significant
positive relationship with and as well as significant positive effect on organizational performance
in the schools.
The study has been proved that, the grievances handling system occurred in the selected primary
schools in different level, that made more discontent or dissatisfaction to the employees and
which can affected employee‟s performance and productivity this may increases turnover rate.
The grievance can affects employee‟s performance in any organization (Ratnam & Srivastava,
2008).
There were no effective grievance handling policy and strategies to guide and direct the
grievance handling procedure at public service sector. This may leads the resolution manners of
grievances have been base on management demands.
From this researcher can conclude that the work performance at any organization facilitated by
the effective grievance management which harmonizes the working environment thus increasing
working satisfaction of employees.
Therefore, through the data analyzed as shown in Table 4.11, and Table 4.16, it can explain that
effects of HRM practices such as training program, performance appraisal, compensation
management, career development and grievance handling have relation with organizational
performance.
Thus, researcher can conclude that based on correlation and regression analysis result the
positive change in all human resource management practice (career development practice,
training program, performance appraisal, compensation management, career development and
grievance handling) in the study can bring positive improvement on employees‟ job performance
as well as organizational performance.
The findings rejected the entire null hypothesis all selected human resource management practice
of the study. Therefore, through literature review, hypothesis, finding and analysis of the study, it

76
concluded that the organizational performance at any organization facilitated by the effective
implementation of HRM which harmonize the working environment thus increasing working
satisfaction of employees.
Moreover, the overall bundles of determinant factors incorporated in this study have positive
effect on organization performance. For that reason, some extent of the organization performance
is explained by training program, performance appraisal, compensation management, career
development and grievance handling in the study Bona zuria Woreda education office selected
public primary schools.
5.3 Recommendations
As per the descriptive analysis results of this study, bona woreda education office selected
primary school‟s academic staffs exhibition of all HRM practice and organizational performance
perception were low (disagree), and as it indicate in the analysis section this low perception of
HRM practice hinder those Bona zuria Woreda education office selected public primary schools
to achieve the maximum goal of teachers organizational performance; which was possible
through maintaining human resource management function.
The study investigated that the Bona zuria Woreda education office selected public primary
schools has limitations in properly implementing of the HRM practices assessed in this research
which are training program, performance appraisal, compensation management, career
development and grievance handling. Based on this the work has made some recommendations
in order to bring light of the study of results (findings). These recommendations could be
applicable to any organization. With reference to the results of the study, the following
recommendations have been drawn up.
The first recommendation is that training program was found to be a positive predictor of
organizational performance, the bona zuria Woreda education office should engage in increasing
the qualities and quantities of the training program so as to increase organizations performance
which helps schools to make best use of its HR in favor of gaining competitive advantage, to
enhance employees‟ ability to adapt to the changing and challenging world environment and
technology for better performance, increase their knowledge to develop creative and problem
solving skills.
Therefore, once HR directories decided the training program needs have been identified using
the various analyses through gathering data to compile all skill gaps which must be identifies the

77
distance between the current performance and the standard desired performance, they should be
set the training program objectives that are close to the gaps and then priorities must be
established. After that, decision should be made to use among different training program
methods based on the objectives of the training program, the trainees selected, and the type of
training intended. Lastly, they should be measure pre and post training feedback and the success
of training program in terms of the objectives which are already stated in advance.
As per the finding of the study, there was a positive correlation between the employee‟s
perceptions on compensation management with organizational performance exhibition.
It is important to design the compensation management system which is a reasonable system for
the organizational goal. This compensations management system which are made transparent and
known by all teachers. It is one way of employees is to attract the employees towards the tasks
and motivated to do their tasks and duty well for acquiring compensation based on their
performance. Compensation policy might be developing clear criteria to make the compensation
packages paid fairly.
Bona woreda education office compensation package should be balanced and Cost-effective: The
compensation should not be excessive, considering what the organization can afford to
compensation. It should provide a reasonable compensation, benefits and other rewards to
motivate effective and productive work.
According to finding performance appraisal has positive relationship and significant effect on
organizational performance as researcher have seen from inferential analysis. Therefore,
improvement is important of performance of teachers and managed by professional HRM experts
as this study conclude that appropriate performance appraisal system should implemented
properly.
Selected primary school‟s principals of every school is a key responsibility for evaluating
employee performance and the performance appraisal result is reported to human resource
department in the case of bona woreda education office.
Bona woreda education office under selected primary school should have each schools its own
evaluation formats and criteria. This might lead to biased efficiency result among employees
because of assigning in different school.
But it is advisable to formulate standard performance appraisal criteria which has common or
basic criteria uniform format that enabled to alleviate subjective evaluation and different

78
standards. Since performance appraisal result a powerful tool. It provides to documented
feedback on an employee„s level of performance. It helps to determine continued employment,
promotion, transfer, bonuses, and pay raises, and allow for improved communications between
school principals and employees.
Finally, a HRM department bona zuria woreda education office is good to make appraised and
managements having mutual awareness, common understanding and relationship about
performance appraisal system against to agreeing critical targets in the organization.
Performance appraisal results and reports should be used to give feedback and taking correction
action.
According to the both correlation and regression result shows in the finding that career
development has positive significant relationship with organizational performance thus, bona
Woreda education office selected primary schools should proper implementation of career
development practice to its teachers like; existence of good career planning and development,
integration of career development practice with organizational objectives and improving salary
structure.
A positive career development practice can be achieved through that: bona Woreda education
office selected primary schools should increase and administered different career development
practice like education opportunities, Promotional opportunities, reward and recognition and
other non-financial benefit based on teachers performance evaluation score in a fair and
transparent way in which considers all employees equally without any discrimination and in
accordance with work experience and in equitable manner within the schools and equitable when
compare to others which are in the same sectors on the basis assessments of the job relative
internal value.
As we infer the result shows in the finding that grievance handling has positive significant
relationship with organizational performance thus, Bona zuria Woreda education office selected
primary schools should provide a better grievance handling manner to its employees, which is
adequate in terms of offering adequate facilities and resources to do their job effectively. Every
organization should have proper structure of grievances management procedure which will be
known to all employees. This structure must develop effective grievance handling system short
and explain clear every step, help to resolve grievance in simple manner in openness discussion
and transparency, equal treatment of employee without any discrimination by using integrating

79
grievance handling style (involves high concern for self as well as the other party involved in
conflict).
In addition, Bona Woreda education office selected primary schools should improve sources for
causes of the grievances like economic, working environment, supervisors, employee relation,
performance appraisal process, compensation and rewards management and incentives that was
the causes of the grievances in the every organizations. Moreover, HR and discipline committee
should be trained how to treat and dealing with the grievances and conflicts fairly and quickly.
This will contribute towards increase the level of satisfaction, reduces the employee turnover rate
and also leads to commitment. Therefore, this should given priority in every organization.
Since organizational performance is one of the important measurements for Bona zuria Woreda
education office selected primary schools to compete in the sidama regional state and Ethiopian
national level. Thus, the management of the education office and selected primary schools
should avoid discouraging culture in order to have positive effect on organizational performance.
As we know every individual has different culture, value, and beliefs from his own. So, in order
to modify inappropriate practice, management should notified and made to learn the
modification of the old (bad) culture that will negatively affect on organization performance as a
whole. Since the shared values and beliefs mostly adopted from top level management thus the
Bona Woreda education office selected primary schools should give recognition, and verbal
reinforcement who has being a role model of good performer and familiar with organization‟s
values and beliefs in exchange of encouraging, and respecting his/her subordinates and
customers as a core value.
Finally, the management of the bona Woreda education office selected primary schools should
review their HRM practices implementations. In doing so ensuring the participation of
employees from every level in the organization is necessary. Because, it is essential to get
enough direct input concerning the HR related factors that affect employees as well as
organizational performance. This is basically helpful in developing smart HP policies that could
inspire employees for enhanced job performance and organizational citizenship.
5.4 Suggestion for Further Research
It is clear that the current study incorporated only 12 primary school and effects five HRM
functions or practices on organizational performance at Bona zuria Woreda education office
selected primary schools. Hence, other researchers or the /schools/organization itself should

80
consider conducting elaborated research in the area by increasing the study areas, the study
population and the sample sizes. In addition, the study is emphasized on economic and social
sector, other researchers can study on other public organizations or private firms and confirm
whether or not HRM practices have an effect on organization performance.
Finally, as the results of the regression analysis indicated, the HRM practices components
determine 61.8% of the organizational performance of the bona Woreda education office
selected primary schools which indicates there are other factors which can explain the variability
of the organizational performance of the schools. Hence, other researchers should consider such
factors and the school should enhance other researchers to find out such factors for better
implementation of HRM practices.

81
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 APPENDICES
Hawassa University
College of Business and Economics Department of Management
Post Graduate Program in Business Administration
Survey Questionnaires
Dear Respondents,
I would like to express my deepest appreciation for your generous time, honest and prompt
responses. Objective
This questionnaire is designed to gather data about human resource management practices and
organizational performance in Bona zuria woreda selected primary schools. The information will
be used as primary data in my case study I am conducting as a partial fulfillment of Master‟s
Degree in Business Administration at Hawassa University. The data you provide are believed to
have a great value for the success of this research. I confirm you that all data will be used for
academic purpose and analyzed anonymously through the authorization of the university. As a
result, you are not exposed to any harm because of the information you provide. Finally, this
research is to be evaluated in terms of its contribution to our insight about human resource
management practices in the study areas in particular and the country at large.
General Instructions

X) in the box provided

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Part One: Personal Information
1. Age : 20 -30 31-42
43-50 above 50
2. Sex : Male Female

3. Educational background ; Diploma BA/BSC

4. How long have you been working in primary schools in /year?
1-5 6 -10 11 & above

Part II: Please state your level of opinion for each given statement using the following
scales: 1= strongly disagree 2= disagree 3= neutral 4= agree 5= strongly agree
I. Training program
Note: 1: Strongly Disagree, 2: Disagree, 3: Neutral, 4:Agree, 5: Strongly agree
Items 1 2 3 4 5
1 The training organized by the organization improves functioning of
your activity.
2 Training is effective in improving the organizational performance in
service delivery
3 Training is effective in motivating employees.
4 Selection for training is based on a proper need assessment.
5 Schools requests feedback from trainees before and after training.
6 My organization does an excellent job of supporting employees to
improve their Educational level
7 My organization sponsored/will sponsor me for further education to
acquire new skills, knowledge and abilities

II. Performance Appraisal

Note: 1: Strongly Disagree, 2: Disagree, 3: Neutral, 4:Agree, 5: Strongly agree
Items 1 2 3 4 5
1 Performance evaluation criteria and standard of schools are
established based on job description
2 Performance appraisal is conducted fairly without any bias
3 The objectives of performance appraisal in schools is clear to employees
4 Performance appraisal is conducted fairly without any bias

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5 Performance evaluation criteria used by schools are job related
6 Performance Appraisal motivates you to perform well in the
organization

III. Compensation management

Note: 1: Strongly Disagree, 2: Disagree, 3: Neutral, 4:Agree, 5: Strongly agree
Items 1 2 3 4 5
1 Compensation system in our organization are strictly linked to employee
2 Performance
3 We are satisfied with the benefits we receive
4 I am satisfied with current salary and other benefits earn schools.
5 compensation and rewards are fairly distributed in our organization
6 Our organization follows the policy of matching pay with

IV Career Development
Note: 1: Strongly Disagree, 2: Disagree, 3: Neutral, 4:Agree, 5: Strongly agree
Items 1 2 3 4 5
1 Well in working to improve career development
2 Working for upgrade employees potential
3 The organization integrates HRM with organizational objectives
4 Good counseling center that benefits all employees
5 Is the current salary structure improving service delivery
6 Promotion Policy is implemented properly in my organization

V. Grievance Handling System

Note: 1: Strongly Disagree, 2: Disagree, 3: Neutral, 4:Agree, 5: Strongly agree
Items 1 2 3 4 5
1 Because of the good grievance resolution, employees are motivated for
their work
2 I feel that equal treatment of employee in the organization
3 I can say that grievance resolution system reduces the employee
turnover rate.
4 I feel that grievance handling system create a positive employees‟ job

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 attitude in the organization.
5 I feel that grievance handling system increase employees‟ commitment
to the organizational performance
6 Is sufficient support from the education office and schools in grievance
handling system
VI. Organizational Performance
Note: 1: Strongly Disagree, 2: Disagree, 3: Neutral, 4:Agree, 5: Strongly agree
Items 1 2 3 4 5
1 Service delivery is as per teachers expectation
2 Organization considers the customer feedback and suggestions
3 Providing infrastructure increase employees‟ individual output in the
organization
4 Suitable work environment increase organizational productivity
5 Management system bring about greater flexibility and increased
workflow
6 Team spirit in the organization bring about efficiency of productivity
7 Feel energetic at work and inspiring
8 Sense of fulfillment after completing the work
9 Strong sense of belonging with the organization
Thank you for the time you have spent in completing this questionnaire

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