IMPACT OF HRM PRACTICES ON EMPOLYEE PERFORMANCE IN PUBLIC SERVICE ORGANIATIONS IN ETHIOPIA

Abstract

The purpose of this study is to analyse the relationship between HRM practices and employee performance in public service organization namely Amhara Regional Civil Services Commission, Ethiopia.It will be interesting to know whether the variables behave the same way they do in a private sector organization. In its attempt, this paper considers the role of employee Social Exchange Theory (SET) and Ability, Motivation, Opportunity (AMO) theory framework. For this purpose data were collected through structured questionnaire from a sample size of 257 managerial and non-managerial employees working in different offices under ANRS Civil Service Commission. The PLS-SEM 3 was used to analyze the data to determine the impact of HRM practices on employee performance. The result shows that employee engagement in the form of training & development and opportunity for career development have significant positive impact on employee performances. The perceived organizational support in the form of performance appraisal, compensation and benefits and leadership practices have also shown significant positive impact on employee performance. However there is no evidence for HRM practices to have direct influence on the performance; it is mediated through employee engagement and perceived organizational support (POS).