The Human Resource Management practice on Organizational

Performance: In the case of Ministry of National Defence in Addis Ababa.

A Research Submitted To School Of Postgraduate Studies, Yardstick
International College, In Partial Fulfillment of the Requirements for the
Award of Masters Degree

BY: CHIMDESSA CHALCHISA

ID Number MBA 01/405/14
ADVISOR: TAREKEGN TAMIRU (PhD)

JULLY, 2023
ADDIS ABABAETHIOPIA
 DECLARATION
I, Chimdessa Chalchisa, hereby declare that the thesis, entitled “The of Human Resource
Management practice on Organizational Performance: In the case of Ministry of
National Defence.” submitted to the department of management, YIC, Addis Ababa, as
partial fulfilment of the requirements for the award of the Master’s degree in Business
Administration, is a record of original research work done by me during 2022/2023, under
the supervision and guidance of Tarekegn Tamiru(Phd), and it has not been submitted to
any other college or university for the award of any Degree / Diploma and all the citations are
due acknowledged under the reference section.

Chimdessa Chalchisa ––––––––––––––––––– July 20/2023

Researcher name Signature Date

i
 YARDISTIC INTERNATIONAL COLLEGE
SCHOOL OF GRADUATE STUDIES
THE OF HUMAN RESOURCE MANAGEMENT PRACTICE
ON ORGANIZATIONAL PERFORMANCE: IN THE CASE OF MINISTRY OF
NATIONAL DEFENCE
By
Chimdessa Chalchisa
This is to certify that the thesis prepared by Chimdessa Chalchisa, titled: “The Human
Resource Management practice on Organizational Performance: In the case of Ministry
of National Defence.” and submitted in partial fulfillment of the requirements for the degree
of Master of Arts in Business Administration complies with the regulations of the College
and meets the accepted standards with respect to originality and quality.
Signed by the Examining Committee:
External Examiner Signature Date
----------------------------------- ------------------------ ------------------------
Internal Examiner Signature Date
----------------------------------- ------------------------ ------------------------
Dean of Graduate Signature Date
----------------------------------- ------------------------ ------------------------
Program Coordinator Signature Date
----------------------------------- ------------------------ ------------------------
Advisor Signature Date
----------------------------------- ------------------------ ------------------------

ii
 CERTIFICATION
This is to certify that the thesis entitled “The Human Resource Management practice on
Organizational Performance: In the case of Ministry of National Defense. ” submitted in
partial fulfillment of the requirements for the degree of master’s in Business Administration
has been carried out by Chimdessa Chalchisa under my supervision. Therefore, I
recommend that the student has fulfilled the requirements and can submit the thesis to the
School of Graduate Studies for defense.
Name of Advisor: Tarekegn Tamiru (Phd),

Signature:
Date: July 15/2023

iii
 ACKNOWLEDGMENTS
First and Foremost, all praises goes to the Almighty God, who endowing me the endurance
and courage of going through all ups and downs to reach the stage where I am now.
It is my pleasure to thank my advisor, Tarekegn Tamiru (PHD), for his guidance and
encouragement in preparing and finishing this research paper. Without his at most, this paper
cannot come to the stage as it is.
Most genuine gratitude goes to my family, and friends, who have helped me in many ways to
accomplish this program from the beginning. Thank you very much all of you.
I am also grateful for the employees at Ministry of National Defense who filled the
questionnaire with a short notice, which has a valuable input for the research paper. Thank
you all!

iv
Contents
DECLARATION ................................................................................................................... I
CERTIFICATION .............................................................................................................. III
ACKNOWLEDGMENTS .................................................................................................... iv
CHAPTER ONE ................................................................................................................... 1
INTRODUCTION ................................................................................................................ 1
1.1 Background of the Study ................................................................................................. 1
1.2 Statement of the problem ................................................................................................. 2
1.3 Research Questions ......................................................................................................... 3
3 Research Hypothesis ........................................................................................................ 4
1.4 General Objectives of the Study ...................................................................................... 4
1.6 Significance of the Study ................................................................................................. 4
1.7 Scope of the Study........................................................................................................... 5
1.71 Limitations of the Study ................................................................................................ 5
1.7.2 Operational Definition of Terms ............................................................................... 5
1.8 Organization of the study ................................................................................................ 6
CHAPTER TWO .................................................................................................................. 7
REVIEW OF THE LITERATURE ....................................................................................... 7
2.2 Conceptual Framework of the Study .............................................................................. 16
CHAPTER THREE............................................................................................................. 17
RESEARCH METHODOLOGY ........................................................................................ 17
3.1 Research Design and approach ...................................................................................... 17
3.2 Sampling Techniques .................................................................................................... 17
3.3 Population and Sample Size .......................................................................................... 18
3.4 Source of Data and Data Collection Instruments ............................................................ 19
3.5 Data collection procedure .............................................................................................. 20
3.5 Data Analysis Method ................................................................................................... 20
3.7 Variables of the Study ................................................................................................... 21
3.8 Reliability and Validity of Data Collection Instruments ................................................. 21
3.9 Ethical Considerations ................................................................................................... 22
PRESENTATION, ANALYSIS AND INTERPRETATION OF ......................................... 23
DATA ................................................................................................................................. 23
4.1 Introduction ................................................................................................................... 23
4.2Sample Response Rate ................................................................................................... 23

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4.3 Demographic Characteristics of Sample Respondents .................................................... 23
4.3.2Age of the Employees .............................................................................................. 24
4.5 Level of Education..................................................................................................... 25
4.6 Work experience of Responds .................................................................................... 25
4.4 Reliability and Validity ................................................................................................. 26
4.5 Descriptive Statistics ..................................................................................................... 27
4.6 Inferential Statistics ....................................................................................................... 34
CHAPTER FIVE ................................................................................................................ 39
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ........................................... 39
5.1 Major Findings .............................................................................................................. 39
5.2 Conclusion .................................................................................................................... 41
5.3 Recommendations ......................................................................................................... 42
5.4 Limitations and Future Research Areas ......................................................................... 42
REFERENCE ..................................................................................................................... 43
ANNEX 1 ............................................................................................................................. 1

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 List of table
Table 4: 1 Sample Response Rate ...................................................................................... 23
Table 4: 2 Gender Distributions......................................................................................... 23
Table 4: 3 Ages of the Employees ..................................................................................... 24
Table 4: 4 Ranks of Employees ......................................................................................... 24
Table 4: 5 Respondents’ Level of Education...................................................................... 25
Table 4: 6 Work experiences of Respondents .................................................................... 25
Table 4: 7 Reliability of data collection instrument ............................................................ 26
Table 4: 8 Descriptive Analyses for Recruitment and Selection ......................................... 27
Table 4: 9 Summary Item Statistics on Recruitment and Selection practice ....................... 28
Table 4: 10 Descriptive Analysis for Training and Development ....................................... 28
Table 4: 11 Summary Item Statistics on Training and Development .................................. 29
Table 4: 12 Descriptive Analysis for Performance Appraisal ............................................ 30
Table 4: 13 Summary Item Statistics on Performance Appraisal ........................................ 31
Table 4: 14 Summary Item Statistics on Compensation Scheme ........................................ 32
Table 4: 15 Descriptive Analysis for Organizational Performance ..................................... 33
Table 4: 16 Summary Item Statistics on Organizational Performance ................................ 34
Table 4: 17 Correlation between Human Resource Management and Organizational
Performance. ....................................................................................................................... 35

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ABSTRACT
The purpose of this paper is to examine the human resource management (HRM) practices on
organizational performance. A total of 2340 employees from Ministry of National Defense
participated in this study. The survey questionnaire had 50 items covering selected HRM
practices and organizational performance. The main techniques employed in gathering the
primary data were questionnaire survey. A total of 342 questionnaires were distributed to
employees of MoND and a total of 342 employees completed the questionnaire properly. The
study has found that human resource practices: recruitment and selection, training and
development, performance appraisal and compensation have a positive significant influence
on organizational performance. The results come from a survey study which was done at the
convenience of the researcher. If the MoND is to increase its organizational performance to
higher levels, it should emphasize on recruitment and selection, training and development,
performance appraisal and compensation. Some improvement needs to be done on the HRM
activities in order to increase their effectiveness on organizational performance. Most studies
on impact of HRM practices on organizational performance have focused on private sectors
in Ethiopia. This study has attempted to add to the body of knowledge on the impact of HRM
practices on organizational performance in government organization in Ethiopia specifically

Keywords: Recruitment and Selection, Training and Development, Performance Appraisal,

Compensation, Organizational Performance

viii
 Chapter One
Introduction
This chapter was covered background of the study, statement of the problem, objectives often
study, delimitation and organization of the study/paper.
1.1 Background of the Study
Human recourses are one of most valuable resources of an organization and indeed an
organization is nothing without human resources. Getting and keeping good people is critical
to the success of every organization. Labour turnover is an important and pervasive feature of
the labour market (Martin 2003). It affects both workers and the firmsworkers experience
disruption, the need to learn new job-specific skills and find different career prospects. Firms
suffer the loss of job-specific skills, disruption in production and incur the costs of hiring and
training new workers. (Martin et al 2007).
Human Resource Management Practice (HRMP) directly contributes towards organizational
performance. An effective HRMP in the organization was enabled employees to contribute
effectively to the attainment of the organization’s goals and objectives. It makes employees to
be committed to their work that was increased the organizational performance. Dessler G.
(2005) explained that human resource management is the process of formulating and
executing human resource policies and practices that produce the employee competencies and
behaviors the organization needs to achieve its strategic aims.
The primary objective of HRM in organizations is to bring the achievement of organizational
performance through human resource. Effective human resource management is seen as more
critical and essential in terms of influence on the organizational performance (Armstrong,
2006).Human resource management refers to the policies and practices involved in carrying
out the ‘human resource aspects of a management position including human resource
planning, job analysis, recruitment, selection, orientation, compensation, performance
appraisal, training and development, and employee relations (Dessler G., 2005).
Organizational performance is generally indicated by effectiveness, efficiency, satisfaction of
employees and customers, innovation, quality of products or services, and ability to maintain
a unique human resource (Delaney &Huselid, 1996). Effectiveness is the ability to choose
appropriate goals and to achieve those goals and Efficiency is the ability to make the best use
of available resources in the process of achieving goals.
Ministry of National Defense (MoND) is one of the government institution established to
build strong and professional armed force which is absolutely reliable and loyal for the

1
constitution and safeguard the country’s sovereignty. To achieve these goal and objectives,
MoND must practice appropriate human resource management. Human resource
management practice also should be linked with the organization organizational performance.
Recruiting, selecting, placing, promoting, developing and evaluating employees are not an
end to bring organizational performance. The organization is supposed to give great emphasis
on the strategic role human resource management practice in order to ensure the
organizational performance. According to Armstrong, (2006) performance management
practices include rigorous recruitment and selection procedures, extensive and relevant
learning and development activities, incentive pay systems and performance management
processes.It assures that organizational performance is depends on human resource
management practice.
In MoND, many scholars have conducted research on the practice of human resource
management. As it is presented, most of the researcher concentrated on the function of
human resource management in general. However, there is drawback on the practice Human
Resource Management to enhance organizational performance. To fill this gap, this study was
critically examining human resource practice on organizational performance in MoND.
1.2 Statement of the problem
Human resource management is enormously important for MoND especially because MoND
is one of the security organizations that keep the interest of the country. Management of
employees is a key challenges facing MoND. Finding and attracting competent employees
with the required skill, Knowledge and ability is currently the problem for MoND. Training is
one of the practices of HRM to improve organizational performance by developing
employee’s knowledge, skill and attitude. However, the practice of training of employees is
not comprehensive. Compensation is a core motivational tool for employees. But this
motivation is negatively going to reflect on the organizational performance in MoND. It is
impossible to manage an organization without having adequate information on how well its
employees are performing. A human resource management decision is not carried out by
sufficient information on employees’ performance.
The Human Resource Management practices on organizational performance have been a
broadly researched area. But unfortunately, inadequate numbers of studies have been
conducted in this area context of Ethiopia. Such studies have been conducted in business
organization. The nature of business organization is completely different from security
organization. The result shows human resource management practice has positive influence

2
on organizational performance. However, the human resource management practice on
organizational performance has not been adequately addressed in security organization
particularly in Ministry of National Defense. Thus, there is a need for greater understanding
of the link between human resource management practice and organizational performance.
Taking all these facts in to account, this study was intended to assess the Human Resource
Management practice on Organizational Performance. In addition it was investigated the
MoND’s four human resource management practice (recruitment and selection, training and
development, performance appraisal and compensation) on organizational performance.
The results of the study were helping MoND to implement appropriate human resource
management policies, strategies and practice to enhance organizational performance. The
study was also contributed to the body of knowledge by providing information on the
relationship between human resource management practice and organizational performance.
1.3 Research Questions
In order to achieve the purpose of this study, four basic questions were raised. From these
research questions, specific hypotheses were formulated. The hypotheses were concerned
with the influence of human resource practice (recruitment and selection, training and
development, performance appraisal and compensation) on organizational performance in
MoND. Therefore, the basic research questions and hypotheses for this study are as follows:
1) What is the relationship between Recruitment and selection and organizational
performance at MoND?
1: Recruitment and selection positively influences on organizational performance at
MoND.
2) What is the relationship between training and development and organizational
performance at MoND?
2: Training and development positively influences on organizational performance at
MoND.
3) What is the relationship between performance appraisal and organizational performance
at MoND?
3: Performance appraisal positively influences on organizational performance at
MoND.
4) What is the relationship between compensation and organizational performance at MoND?
4: Performance appraisal positively influences on organizational performance at
MoND.

3
 3 Research Hypothesis
The hypotheses will be concerned with the human resource management practice
(recruitment and selection, training and development, performance appraisal and
compensation) on organizational performance in MoND.
H01: Recruitment and selection practice has a positive influence on organizational
performance at MoND.
H02: Training and development program is positively influences on organizational
performance at MoND.
H03: Compensation scheme has a positive influence on organizational performance at
MoND. H04: Performance appraisal practice is positively influences on organizational
performance MoND
1.4 General Objectives of the Study
The general objective of this study was examined the influence of Human Resource
Management practice on organizational performance at Ministry of National Defense.
The specific objectives of this study were:-
1. To identify the influence of Recruitment and selection on organizational performance at
MoND.
2. To identify the influence of Training and Development on organizational performance at
MoND.
3. To identify the influence of performance appraisal on organizational performance at
MoND.
4. To identify the influence of Compensation on organizational performance at MoND
1.5 The specific objectives of this study are:-
1. To identify the Recruitment and selection on organizational performance at MoND.
2. To identify the Training and Development on organizational performance at MoND.
3. To identify the performance appraisal on organizational performance at MoND.
4. To identify the influence of Compensation on organizational performance at MoND.
1.6 Significance of the Study
This study was has great significance in several ways. First of all, the finding of the study
was helped Ministry of National Defense to come up with appropriate human resource
management policy, strategies and practice that improve organizational performance?
Secondly, the research findings was helped leaders to examine the success and challenges of
human resource management practice which are currently being implemented in MoND.

4
The findings also was important to identify the most determinants factor that can enhance
organizational performance.
In addition to this, the finding of this study was added value to the knowledge of other aspect
of human resource management practice and organizational performance. And finally it was
gave direction for other researcher that needs to conduct further study in this subject matter.
1.7 Scope of the Study
This research mainly focuses on the human resource management practice on organizational
performance at Ministry of National Defense. The scope of the study was geographically
limited to the Head Quarter of Ministry of National Defense and Ground Force. Because of
the large number of participants, Air Force, Special Force and Corps was not involved in this
study. This study also was delimited to only four human resource management practices that
are recruitment and selection, training and development, performance appraisal and
compensation.
1.71 Limitations of the Study
The major limitation of this study might be relatively small number of sample respondents.
This is as a result of some constraints such as time and lack of sufficient fund. But this small
number of sample size was not affected the result of this research. Other variables beyond the
four human resource management practice(recruitment and selection, training and
development, performance appraisal and compensation) and organizational performance was
not considered in this study.
1.7.2 Operational Definition of Terms
Human resource management practice: - A system that attract, develops, motives and
retains employees to enhance organizational performance. (Rule vs regulation of military
Defense)
Recruitment and selection: - The process of identifying the needs for a job, defining
the requirement of the position and the job holder, advertising the position and choosing the
most appropriate person for the job. (Rule vs regulation of military Defense)
Training and development: - Education activities within the organization created to
enhance the knowledge and skills of employees (Rule vs regulation of military Defense)
Performance appraisal: - Regular review of an employee’s job performance and overall
contribution to the organization. (Rule vs regulation of military Defense)

5
Compensation: - The total amount of the monetary and non-monetary pay provided to an
employee in return for work performed as required. (Rulevs regulation of military
Defense)Organizational performance: - The actual result of an organization as measured
against its intended goals and objectives of the organization.(Rule vs regulation of military
Defense)
1.8 Organization of the study
This research was consisted of five chapters. Chapter one was got the background
information and statement of the problem. The research questions and hypothesis, objectives,
significance, scope and limitation of the study. Chapter two was discussed the key concept of
human resource management and organizational performance that are going to be used in this
research to address the problem in a broader perspective of literature. It was developed the
theoretical framework of human resource management practice andorganizational
performance. Chapter three wasfocussed on the research design and methodology. Sampling
techniques, sample size, data source and data collection instrument was discussed. Chapter
four was presented the finding and analysis of the research. Finally, chapter five was
summarized the main findings in the conclusion part and gives recommendations to assist
MoND in the future.

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 Chapter Two
Review of the Literature
2.1 Introduction
This chapter assesses relevant theories on the concept of human resource management
practice and organizational performance. The definition, theories and different models of
human resource management practice is explored. Concepts and measurements of
organizational performance are also looked at. A review of past findings on the human
resource management practice on organizational performance is presented. At the end of the
chapter the conceptual framework for this study is presented.
2.2 The Concept of Human Resource Management
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 concerned with the ethical
dimension – how people should be treated in accordance with a set of moral values
(Armstrong & Taylor, 2014).
Vincent & Joseph, (2013) define human resource management as a “management function
within organizations that is concerned with people and their relationships at work”. O'Brien,
(2011) also defined human resource management as the management of an organization's
workforce. It is accountable for the attraction, selection, training, and performance review
and rewarding of employees.
Human Resource management is defined as the managerial utilization of the efforts,
knowledge, capabilities and committed behaviors which people contribute to an
authoritatively coordinated human enterprise as part of an employment exchange to carry out
work tasks in a way which enables the enterprise to continue into the future (Watson, 2010).

7
The practices of Human Resource management are defined as organizational activities
directed at managing the pool of human resources and ensuring that the resources are
employed towards the fulfillment of organizational goals (Tiwari & Saxena, 2012). While &
Ling, (2012) indicated that human resources management practices can be grouped into many
categories such as: recruitment, selection, training and development, motivation, and
maintenance. Human resource managers have been involved in activities like, recruiting,
interviewing, selecting, and training (Dessler, 2013). There are numerous HR Practices for
the organization to adopt. HR practices contribute to the organization’s bottom line areas
such as recruitment, selection, training, development and performance appraisal which should
be consistent, integrated and strategically focused thus organization build long-term
commitment to retain their work force (Choudhary & Lamba, 2013).
Dessler, (2013) defined Human Resource Management as the process of acquiring, training,
appraising, and compensating employees, and of attending to their labor relations, health and
safety, and fairness concerns.
According to Batti (2014), human resource management is deemed a major management
functions in any organization regardless of its activity. It creates the most crucial condition
for organizational performance. Human resource management is a process that assists
organizations recruit, select and develop staff within the organization.
Human Resource management practice has direct and positive relationship with
organizational performance. Although there are some studies that did not fully confirm theses
positive relationships (Guest, 2003). Their findings continue to be consistent with the main
idea that human resource practices influence employee behavior and generate positive
impacts individual performance and therefore collective organizational level performance
(Jackson, 2014).
On the other hand strategic human resources management is defined as the comprehensive set
of managerial activities and tasks related to developing and maintaining a qualified
workforce. This workforce contributes to organizational effectiveness. Strategic human
resources management occurs in a complex and dynamic environment within the
organization. A significant trend today is for human resources managers to adopt a strategic
perspective of their job and to recognize critical links between organizational and human
resources strategies (Fottle , 2010)

8
Therefore, considering the above arguments, it is expected that the extent to which human
resource management practices are strategically oriented toward high performance work
practices (selecting, staffing, intensive training, active employee involvement, a
comprehensive performance assessment, and incentive systems linked to performance), thus
employees will be encouraged in the behaviors and attitudes and reach the need satisfaction
that promotes better individual and employee performance and enables the organization to
reach its goals and reach the full potential of their employees.
2.3 Recruitment and Selection
Opatha (2010), defined recruitment as the way toward finding and pulling in appropriately
qualified individuals to apply for work opportunities in an association or organization. It is an
arrangement of exercises an organization uses to pull in work competitors who have the
required capacities and mentalities. Recruitment is the way toward producing a pool of
qualified candidates for hierarchical employment opportunities.
Selection is the way toward settling on the decision of the most appropriate candidate from
the pool of candidates selected to fill the important activity opening (Opatha, 2010). Selection
is the procedure by which particular instruments are locked in to look over the pool of people
most appropriate for the activity accessible (Ofori & Aryeetey, 2011).
Selection includes the utilization of at least one strategies to evaluate candidate's
appropriateness with a specific end goal to settle on the right choice and can be on the other
hand observed as a procedure of dismissal as it rejects various candidates and select just a
couple of candidates to fill the opening. Subsequently, choice capacity might be a negative
capacity as opposed to a positive capacity (Gamage, 2014). As per Gamage (2014) the targets
of choice capacity are to get the opportune individual to the correct activity, build up and
keep up a decent picture as a decent business, and keep up the selection procedure as savvy as
could be expected under the circumstances. Selection is a critical angle to consider for
organizations because of various reasons. Regularly the execution of organizations relates
specifically to the general population working inside it, which means the opportune
individuals should be enlisted to guarantee authoritative achievement (Henry & Temtime,
2009).

9
2.4 Training and Development
A high level of a skilled and competent workforce can contribute to the firm`s success by
developing a comprehensive and internally cohesive human resource management system (
Beh, Han Loo, 2013). Training is necessary because many changes come in a competitive
environment, the current market nowadays faces increasingly rapid amount of changes in
technology, system, and products (Awan & Sarfraz, 2013)
Development is also defined in this study as the use of the use of strategies such as career
planning, job rotation, coaching, mentoring, job training, and proficiency courses such as
technical courses and professional certifications to improve the current and future job
performance of employees. It also involves existence of a cordial atmosphere in organizations
that encourage employees to add value to them to enhance their current and future goal
attainment in a cost effective ways.
According to Saraswathi (2010), human resource development in organizational context is a
process by which the employees of an organization are aided in planning a way to: obtain or
hone capabilities required to perform various functions associated with their present or
expected functional roles; develop their general capabilities as individuals and discover and
exploit their own inherent potentials for their own, and, or organizational development
processes; develop an organizational culture in which supervisor-subordinate relationship is
positive or strong; teamwork and collaborations among sub-units are strong and contribute to
the professional well-being, motivation and the pride of employees. Human resources include
knowledge, skills, abilities and experience controlled by an organization that enables it to
improve upon its performance, competitiveness, innovation, efficiency and effectiveness.
This is because, employees skills, knowledge and abilities are among the most distinctive and
renewable resources upon which an organization can draw their strategic management and
comparative advantage.
Accordingly, Luthans, (2011) made the submission that, optimal use of human resource can
be a key source of competitive advantage because it is difficult for competitors to replicate.
This resource-based view has led to considerable attention in employee development
focusing on performance .

10
2.5 Performance Appraisal
Performance appraisal is a method by which the job performance of an employee is measured
in terms of quality, quantity, cost, behavior and time. He further explained that it is conducted
by self, peers, seniors, and junior. However, generally, in the formal method, it is conducted
by the immediate manager or supervisor under whom the person is directly working. A
performance appraisal is a part of measuring, comparing, finding, guiding, correcting and
managing career development of the employees, (Mullins, 2007). The Journal of Global
Business and Economics (2010) established that performance appraisal is the process of
gathering, recording and critically analyzing information about the relative importance of
employees to the organization. Performance appraisal is a study of present achievements, and
failures, personal strengths and weaknesses, and suitability for incentives, rewards and
recognition, increased pay scale, promotion or further training.
An appraisal is the evaluation of worth, quality or merit. The appraisal should measure both
performances in accomplishing goals, plans and performance as a manager. It is the
evaluation of present performance and future capabilities. “Performance appraisal is a
systematic periodic and impartial rating of employee’s excellence in matters about his present
job and his potentialities for a better job”. “It is the process of evaluating the performance and
qualifications of the employees in terms of the requirements of the job for which he is
employed for purposes of administration including placement, selection for promotions,
providing financial rewards and other actions which require differential treatment among the
members of a group as distinguished from actions affecting all members equally. In addition,
Douglass (1999) sees performance appraisal as a method of acquiring and processing the
information needed to improve an individual employee’s performance and accomplishments.
Likewise, performance appraisal is defined as the process of evaluating the performance of
employees, sharing that information with them and searching for ways to improve their
performance. Thus, performance appraisal can be seen as the process by which a manager or
consultant examines and evaluates an employee’s work behavior by comparing it with preset
standards, documents the results of the comparison, and uses the results to provide feedback
to the employee to show where improvements are needed. An effective performance
appraisal system has five components which include performance planning, managing of
performance, performance review/ assessment, performance monitoring and rewarding of

11
performance. Performance appraisals are employed to determine who needs what training,
and who will be promoted, demoted, retained or fired (Delery & Doty, 1996).
2.6 Compensation
In competitive business environment both locally and globally, many companies attempting
to identify innovative compensation strategies. It is directly linked to improving
organizational performance. Incentive compensation form has been a common feature of
employment contract. The use of incentive systems is not only a defense mechanism on the
part of failing firms, but more often is also a positive action in recognition of the strategic
role of compensation in furthering corporate goals (David and Robbins, 2006). The basic of
incentive pay and how it correlates with known organizational behavior theories can be
linked with achievement of corporate goals through the use of rewards system. Many
researchers have suggested that, utilization of human resources in organizations is often
below optimum levels, because employees rarely perform at their maximum potential
(Huseild, 1995). Therefore, organizational attempts to obtain discretionary efforts from
employees are likely to provide benefits in excess of costs (Huseild, 1995). There are many
approaches to incentive compensation, such as bonuses, stock purchase, profit sharing and so
on.
Compensation and benefits function is very important to ensure effective compensation and
benefits package can significantly increase the motivation of an individual to increase their
performance. Employee compensation refers to all forms of pay or rewards going to
employee and arising from their employment and it has two main components (Dessler,
2008). Compensation management is one of the strapping features that organizations use to
attract and retain its most valuable and worthy assets. It is includes financial and non-
financial rewards. Direct compensation (financial) is in the form of wages, salaries,
incentives, bonuses, commissions and so on. Indirect compensation is the form of non-
financial benefits like vacation, annual leave entitlement, medical and hospitalization
benefits, employer retirement contribution and etc.Today’s employees not only require
money to fulfill their basic needs but they also necessitate various non-financial rewards and
benefits often known as the “Fringe Benefits”. These include bonus, retirement benefits,
gratuity, educational, medical facilities including family and etc. (Khan, Aslam&Lodhi,
2011). For example, INTEL Corporation designed the benefits to keep their employees as the
most important assets to stay in healthy and productive. Their packages is tolerant and

12
personalized, in many cases letting their employees choose the options that are right for
themselves and their family.
The compensation management is considered to be a complex process which requires
accuracy and precision. Failure carried out these properly, may lead to organizational failure.
An ideal compensation policy encourages the employees to work harder and with more
determination that can help the organizations to set the standards that are job related, realistic
and measurable. The policies should have integration with other practices of human resource
management and may provide growth opportunities to its employees and to create a vigorous
competition among the employees in order to have an urge work more efficiently and
proficiently. Again, the compensation management policy is used to motivate and retain
employees and ultimately its aims at improving the overall effectiveness of an organization.
The organization should develop its compensation structures in accordance with its goals,
objectives and strategies. Compensation management is advantageous to both employees and
employers. It is beneficial for the employer in the sense that it lowers the absenteeism rate.
Low satisfaction from job and increased absenteeism rate are the consequences arising from
the insufficient and inadequate benefits (Khan, Aslam, Lodhi, 2011).
The purpose of any compensation, whether direct or indirect, is to recognize the performance
value of employees and to establish ways to motivate them to work with full efficiency and
could link with the improvement organizational performance. Effective rewards system can
significantly increase the motivation of individuals to increase their performance. In real
situation people not only looking for a job that suitable with their qualification and talents
only but they also consider the compensation and benefit that employer can provide to them
in term of salary and other benefits. This topic is very important because no body work for
free and everybody wants to be valued. An empirical study shows that five factors of
employee satisfaction have been chosen namely empowerment and participation, working
conditions, reward and recognition, team work and training and personal development (Ali &
Ahmed, 2009).
2.7 Organizational Performance
Studies on SHRM emphasize the role of human resources practices in achieving
organizational objectives (Combs, 2006; Ferguson; Reio Jr., 2010; Huselid; Jackson; Schuler,
1997; Oliveira; 2011; Wright; Mcmahan, 1992). However, one of the key challenges of

13
understanding organizational performance lies in the alignment of its theoretical definition,
methodological design and research objectives.
Since organizational performance is a multidimensional concept, it seeks to measure
companies’ success in achieving the objectives proposed for different stakeholders in a given
period (Richard, 2009). The various dimensions of organizational performance seek to
encompass the diversity of interests in the company’s success. One of the most influential
approaches states that organizational performance is made up of three dimensions that can be
considered as spheres that superimpose and complement each other (Venkatraman &
Ramanujam, 1986). The wider dimension of organizational performance would be
organizational effectiveness, including economic and social goals that take into consideration
the Organization’s relationship with society and its stakeholders. The operational dimension
encompasses aspects such as technology, innovation, productivity and quality, and mediates
the relationship between the company’s resources and its financial performance. Finally, the
financial dimension incorporates aspects of financial returns, market value and growth
(Combs; Crook; Shook, 2005; Venkatraman; Ramanujam, 1986).
Far from a consensus, the debate on organizational performance recognizes the existence of
different approaches and metrics. Most of authors recognize the importance of linking
performance measures to a theoretical approach and even to a greater construct that explains
the strategic advantage (Combs; Crook; Shook, 2005; Richard, 2009; Venkatraman;
Ramanujam, 1986).
2.8 Relationship between HRM Practices and organizational Performance
The main premise of studies on SHRM is that human resource management practices are
causal antecedents of performance (Barney; Wright, 1998; Huselid, 1995). Therefore, to
analyze the causal relationship among constructs, it is necessary to evaluate longitudinal data.
Furthermore, due to the very nature of the process by which people management practices
develop resources and capabilities that impact performance, it is argued that there is a
maturation period for the results to be observable. Therefore, it is recommended the
observation of longitudinal data, in a period compatible with the development of resources,
and a lagged analysis between cause and effect (Wright, 2005).

14
Another important aspect of performance evaluation is in its hierarchical nature, with
different levels of analysis or spheres of influence: business, industry and institutional context
(Mcgahan; Porter, 1997). The evaluation of superior performance depends on the competitive
environment in which the company is inserted. Similarly, the effect of investments in human
resources depends on the context and the level of expertise of human capital (Crook , 2011).
The more human capital-intensive sectors demand more investments, whilst less intensive
ones may seek competitiveness from other strategic factors (Shaw; Park; Kim, 2013). Seen in
these terms, results from HRM analysis between sectors with different specificities of
resources cannot be comparable (Crook, 2011).
Finally, it is important to consider that the relationship between investments in HRM and
performance is mediated by resources and capabilities generated in the process. This aspect
can be even more relevant when one observes only the financial performance of the
organization. This is because the value created may not revert into superior profitability if
appropriated by transaction partners (Coff, 1999). In the bargaining process for the value
created, employees increase their bargaining power as they become more specialized and not
easily replaceable (Coff, 1999). In addition, managers are recognized as actors in privileged
condition of appropriating value, given their access to important information (Coff, 1999;
Coff; Lee, 2003). The influence of employees and managers in the process of distribution of
the value created has an impact on the costs of the company and, consequently, on its
profitability (Blyler; Coff, 2003). In this sense, the relationship between HRM and operating
performance can be more easily observed, both from the direct relationship between the two
concepts and the fact that the operational performance precedes the process of appropriation
(Combs, 2006; Crook , 2011). Financial variables, however, are more impacted by the
process of appropriation and may not reflect the value created by the resources.
Over the years, researchers have devoted a great deal of time and attention to establishing and
examining the linkage between HRM practices and organizational performance. Based on the
evidence and findings, it is becoming increasingly clear that HRM is an important component
that can impact on organizational effectiveness leading to improved performance.
Khan (2010) conducted a study in Pakistan to investigate the effect of human resource
management practices such as recruitment and selection, training and development,
performance on organizational performance and he found a significant positive relationship
between these practices and firm performance. Boohene and Asuinura (2011) stressed that

15
HRM practices, specifically, recruitment and selection, performance appraisal, compensation,
and training and development have positive impact on organizational performance.
In a recent study conducted by Soomro, (2011) it was found that HRM practices (training,
selection, career planning, employee participation, job definition, performance appraisal and
compensation) correlated positively with the employee performance
2.2 Conceptual Framework of the Study
This conceptual framework human resource management practice and organizational
performance tries to explain how a human resource practice has positive influences on
organizational performance.

Recruitment and
Selection

Training and
Organizational
Development
Performance

Performance Appraisal

Compensation

Figure 1:- conceptual framework human resource management practice and organizational
performance

16
 Chapter Three
Research Methodology
This chapter was described the research design and methodology used to determine the
influence of human resource management practice on organizational performance at Ministry
of National Defense. The structure of this chapter was began with the research design and
then discuss the study population and sample, sampling techniques, data gathering
instruments, reliability and validity, dependent and independent variables and data analysis
procedures.
3.1 Research Design and approach
This research was conducted with the purpose to assess the influence of human resource
management practice on organizational performance at Ministry of National Defense. The
aim was to seen the relationship between human resource management practice and
organizational performance through the eye of employees being studied. The approach used
to gather data and address the research questions of this study was Quantitative approach.
This approach was appropriated for this study because it was leaded to accurate conclusion.
A correlation descriptive survey design describe a given state of affairs as it exists at present
(Fraenkel and Wallen, 2008). The reason for the selection of such approach is that this
research involves assessing the influence of human resource management practice on
organizational performance and collecting data to test hypothesis.
A cross-sectional survey design was adopted in this study. This is where data is collected at
one point in time from a predetermined population (Franker and Wallet, 2008). The variables
are measured once through a survey where the opinions of the respondents are illustrated.
3.2 Sampling Techniques
The target population of the study includes both leaders and subordinates who are working in
Ministry of National Defense. According to organizational structure of Ministry of National
Defense, there are two forces. They are Ground Force and Air Force. Because of the number
of employees they have, Ground Force was deliberately selected for this study. The total
populations of the study were 2340 employees who are working in Head Quarter of Ground
force.
A stratified random sampling technique was applied so as to obtain a representative sample of
respondents from MoND. This technique is preferred because there are several sections I
each department under the Ground Force. In order to determine the number of respondents
from each section, first the population was partitioned into six departments called strata and

17
then each department was divided in to sections. The number of staff in each section was
divided in to leaders and subordinates. Secondly, a desired sample size was determined in
each section. Then proportional number of sample was allocated to each department of
Ground Force and finally sample was drawn from each section. After having determined the
number of respondents from each stratum, the respondents were selected using simple
random sampling technique. All department and section heads are selected using availability
sampling. To summarize, the researcher was used a combination of stratified and simple
random sampling techniques to select samples. Since it ensures that the sample become
representative and improves efficiency of data collection.
In order to get sufficient and relevant information from the respondents, employees who have
worked for at least two years was participated as respondents in this study. Leaders must have
been also a year in the current leadership position. This is for the reason that at least one year
work experience is enough to identify the current situation of human resource management
practice and organizational performance.
3.3 Population and Sample Size
The total population for this study was 2340 employees who are working in six different
departments of Ground Force. The size of sample depends upon the amount of money
available and time required for the study purpose. These factors should be kept in to
consideration while determining size of sample (Kothari, 2008).
In determining the sample size for the study, Guilford and Flruchter (1973)'s formula for
estimating sample size is used. The formula is expressed below:
The formula: - N= N/ 1+ Q²N Where n is Sample Size, N is Size of Population and Q is
0.05 Sample size for the study is N/ 1+ Q²N = 2340/1+ 0.05² X 2340 = 341.6 which is
approximately equals to 342. Therefore, in order to reach at statistically valid conclusion, the
researcher was selected 342 sample respondents. Summarized population and sample size are
presented in the table below

18
Table 3: 1 Population and Sample Size

Subord Sampl
Institutions Population Leader
inates e Size
Ground Force Head Quarter 198 5 25 30
Operation 448 8 58 66
Human Resource management 178 6 20 26
Logistics 398 11 47 58
Training 756 16 93 109
General service 362 11 42 53

TOTAL 2340 57 285 342

3.4 Source of Data and Data Collection Instruments

In order to obtain relevant data for this study, both primary and secondary source of data has
been considered. According to Franked and Walled (2008) primary data source is data
prepared by individuals who is participant in or a direct witness to the event that is being
described. This type of data is more accurate.
Basically this research is empirical in nature. Because of this, primary data was collected
from leaders and subordinates to address the research questions of the study. Due to the
objective of the research, the more emphasis has been given to primary data source.
For better understanding and explanation of the research problem, the researcher was
collected data from secondary data sources. Information from secondary data source used to
supplement data obtained from primary data source. The secondary source is a document
prepared by an individual who is not a direct witness to an event but who obtained
information from someone (Fraenkel and Wallen, 2008). Secondary data was collected from
books, journals (articles) and internet. This data used to establish the theoretical framework
and to design questionnaire. The main advantage of using secondary data for this research
was to validate and compare the data obtained through questionnaire.
For collecting primary data this study was used questionnaires and interviews. The
questionnaire was based on the research questions. This is because questionnaires are
advantageous in collecting large number of data from respondents and help respondents
to fill the questionnaire at their convenient time without the interviewer bias. In order to
be understandable by all respondents, the questionnaire was translated in Amharic.

19
3.5 Data collection procedure
First the researcher was collected official letter from Yardstick International College which
express about a researcher who is conducting MA research on the influence of human
resource management practice on organizational performance at Ministry of National
Defense. This official letter was helped researcher to collect necessary data in effect of the
consent of MoND.
By the use of a combination of stratified and simple random sampling techniques, the
researcher personally was gave the questionnaires to both leaders and subordinates to fill. The
researcher was distributed 57 questionnaires for leaders and 285 questionnaires for
subordinates. After a week, the researcher personally collects all completed questionnaires
from each employee. After the questionnaires are collected, the researcher was checked the
respondents answered all relevant questions.
For respondents who are not able to fill out the questionnaire on the first visit of the
researcher, one week was given to do so for collection at a later date. After two weeks, all
questionnaires were collected and were started analysis.
The researcher was not conducted interview with leaders. Because of the Federal government
vs. tigray region of Conflict, it is difficult to conduct interview with leaders to collect the
necessary information.
Secondary sources of data were collected from books, journals (articles), annual reports and
internet. They are useful in obtaining relevant data and information to supplement the
primary data.
3.5 Data Analysis Method
Descriptive statistics was applied to compile and analyze the data. The collected data was
analyzed up on receiving completed surveys by using descriptive and inferential statistics.
The survey data was processed using SPSS version 24. The relevant data was coded,
summarized and then transferred to SPSS version 24 to be analyzed and presented. Data
collected from the respondents was presented and analyzed using frequency counts,
descriptive statistics
The researcher was used frequency tables to summarize the characteristics of sample
respondents in the form of frequency and percentage. Frequency and percentage are used to
present the data by the help of SPSS. And Tables and graphs was used to ensure easily
understanding of the analysis. Finally, the result of statistical analysis was summarized,
tabulated and interpreted appropriately.

20
A two-tailed Pearson Correlation analysis was used to investigate the relationship between
human resource management practice and organizational performance. Correlation
coefficient (r) is normally reported as a decimal number somewhere between -1.00 and +1.00
(Huck, 2012). Its result gives the researcher an idea of the extent of the relationship between
the two variables (Human resource management practice and Organizational performance).
According to Huck (2012) a positive correlation coefficient (r) indicates a positive and direct
relationship and a negative correlation coefficient (r) indicates a negative relationship and an
indirect or inverse relationship between the two variables (leadership styles and
organizational commitment). A zero correlation indicates that there is no correlation between
the variables.
The level of significance is defined as the probability a researcher is willing to accept or
reject the null hypothesis when that hypothesis is true (Singh, 2007). For this study
significance level (alpha level)of 0.05 and 0.01 are taken as the standard for a two-tailed test.
It is the probability of the value of the random variable falling in the critical region (Singh,
2007). In accordance with various researchers the significance levels most commonly used in
research are the 0.05 and 0.01 levels (Huck, 2012).
The hypothesis test procedure for this research was if the p-value is less than the alpha level
of 0.05 (P<0.05) or 0.01 (P<0.01), the researcher was rejected the null hypothesis and
conclude that there is significant correlation between human resource management practice
and organizational performance. On the other hand if the p-value is greater than the alpha
level of 0.05 (P>0.05) or 0.01 (P>0.01), the researcher was failed to reject the null hypothesis
and conclude that there is no significant relationship between the two variables.
3.7 Variables of the Study
For this research Human resource management practice is independent variables and
organizational performance is dependent variables. Four separate measures of human
resource management practice was used as independent variables. They are recruitment and
selection, Training and development, performance appraisal and compensation.
3.8 Reliability and Validity of Data Collection Instruments
Reliability (internal consistency) and validity (construct validity) are the statistical criteria
used to assess whether the research provides a good measure. They are the two important
concepts that should be considered when the researcher select or design the instrument.
According to Fraenkel and Wallen (2008) reliability refers to the consistency of scores or

21
answers from one administration of an instrument to another and from one set of items to
another. If an instrument is reliable, it provides consistent result.
The term validity refers to the appropriateness, meaningfulness, correctness, and usefulness
of any inferences a researcher draws based on data obtained through the use of an instrument
(Fraenkel and Wallen, 2008). It is the degree to which an instrument measures what it is
supposed to measure (Kothari, 2008). Reliable measuring instrument does contribute to
validity, but a reliable instrument need not be a valid instrument (Kothari, 2008Cronbach’s
alpha is a commonly used test of internal reliability. A computed alpha coefficient varies
between 1, denoting perfect internal reliability, and 0, denoting no internal reliability. The
figure of .75 or more usually is treated as a rule of thumb to denote an accepted level of
reliability (Singh, 2007).
The questionnaire was distributed to 50 employees who are randomly selected to test the
content validity of the instrument and also to check the clarity, length, word ambiguity
and structure. The sample respondents comment and suggestion was included before the
final distribution of the questionnaire.

Type of validity Description

Content The extent to which a research instrument accurately measures all aspects of a
Validity construct
Construct The extent to which a research instrument (or tool) measures the intended
Validity construct
Criterion The extent to which a research instrument is related to other instruments that
validity measure the same variables

Attributes of reliability
Type of reliability Description

Homogeneity (or The extent to which all the items

internal on a scale measure one construct
consistency)
Stability The consistency of results using an instrument with repeated testing

Equivalence Consistency among responses of multiple users of an instrument, or

among alternate fs of an instrument

3.9 Ethical Considerations

During conducting this research, maximum effort was made to keep the data collected
confidential. A guaranty was given to all respondents where their personal data was not
reported in this study. The final copy of this research report was given to Ministry of
National Defense.

22
 CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF
DATA

4.1 Introduction
This chapter presents information on primary data collected from respondents on HRM
practices in Ministry of National Defense. The data were processed and presented in tables,
graphs and other statistical representations using SPSS. Interpretations given were on
processed data collected from the field that sought to establish the effect of HRM practices
on the organization performance.

4.2 Sample Response Rate

The data for the study was distributed to five different departments: namely Operation
Department, HRM department, Logistics Department, Training Department and General
Service Department. The sample plan of this study was composed of 57 leaders and 285
subordinates. A total of 342 questionnaires were distributed to the respondents and out of
these questionnaires a total of 342 questionnaires were successfully completed and returned.
The total response rate was 99.9 %. As a result, the analysis of this research is based on the
number of questionnaires collected. This is more clarified under the following table.
Table 4: 1 Sample Response Rate
Position Sample Taken Response Rate
Leader 57 16.66%
Subordinate 285 83.33%
Total 342 99.9%
Source: Researcher’s field survey 2022

4.3 Demographic Characteristics of Sample Respondents

A profile of 342 sample respondents who participated in this research was summarized in the
form of frequency and percentage. Data presented explicitly for each of the variables. The
characteristics include Gender, Age, Rank, Work experience and Educational level.
Table 4: 2 Gender Distributions
Gender Frequency Percent Cum. Percent
Male 285 83.33 83.33 %
Female 57 16.66 99.9%
Total 342 99.99 %
Source: Researcher’s field survey 2022

23
Table 4: 2 represents the gender of respondents for the study. The above table shows that 285
respondents representing 83.33% are males and 57 respondent representing 16.33 % is a
female. This clearly confirms the fact that military profession is male dominated. This could
also mean that women do not equally participate in the military. Informal interviews the
researcher had with some respondents revealed that women are not supported to participate in
the military profession in our country because of the hardship of the military activities.

4.3.2Age of the Employees

The data presented in table 4.3 below describe age of the sample respondents distributed
among five age categories.
Table 4: 3 Ages of the Employees
Age of Employees Frequency Percent Cum. Percent
From 21 to 25 Years 15 4.38 4.38
From 26 to 30 Years 57 16.66 16.66
From31 to 35 Years 85 24.85 24.85
From 36 to 40 Years 108 31.57 31.57
Above 41 Years 77 22.51 22.51
Total 342 99.99 99.99
Source: Researcher’s field survey 2022
Table 4: 3 gives the age range of the respondents in MoND for this study. The table shows
77 respondents representing 22.51 % of respondents are between the ages of above 41 years.
45 respondents, representing 24.85 % belong to the age range of 31 to 35 years. 42
respondents, representing 16.66 % belong to the age range of 26 to 30 years. This indicates
that most of these respondents belong to the youthful and mature range of ages. This
therefore means that younger may prefer military profession to serve as a solder. The
majority of the respondents were within the productive age.
Table 4: 4 Ranks of Employees
Rank of Employees Frequency Percent Cum. Percent
Non Commissioned Officer 128 37.42 37.42
Junior Officer 150 43.85 44.90
Senior Officer 64 18.71 29.23
Total 342 99.98
Source: Researcher’s field survey 2022

24
Table 4: 4 gives the rank of the respondents in MoND for this study. The table shows 64
respondents representing 18.71% of respondents are senior officers. 150 respondents
representing 43.85% are junior officers. 128 respondents, representing 37.42 % are Non
Commissioned Officer. This indicates that majority of the respondents are Senior Officers for
this study. This therefore means that senior officers have full information about human
resource management practice carried out in MoND and organizational performance.
4.5 Level of Education
Table 4: 5 Respondents’ Level of Education
Level of Education Frequency Percent Cum. Percent
TVET Diploma 100 29.23 29.23
First Degree 150 43.85 50.1
Master’s Degree 50 14.61 16.01
Doctorate Degree 40 11.69 15.66
Others 2 1.0 99.98
Total 342 99.98 99.98
Source: Researcher’s field survey 2022
Table 4: 5 represents the highest level education of respondents in MoND. A majority of
respondents (n=150, 43.85%) held first degree. Respondents with a master’s degree account
for 14.61 % or n=50. The remaining small number of respondents (n=40) had third degree
(PhD). This evidently shows that respondents have the appropriate level of education to serve
as a military profession.
4.6 Work experience of Responds
As it can be seen in table 4.6 below that the majority (n=85, 24.85 %) of the respondents had
work experience from 21 to 30 Years in the MoND. 17.54 % (n=60) of the respondents
indicated service experience between 11 to 15 Years. This shows that respondents have full
information about human Resource Management and Organizational performance in MoND.
Table 4: 6 Work experiences of Respondents
Service Years Frequency Percent Cum. Percent
Below 10 years 102 2.82 17.7
From 11 to 15 Years 60 17.54 29.8
From 16 to 20 Years 45 13.15 20.00
From 21 to 30 Years 85 24.85 82.6
Above 30 Years 50 14.61 97.50
Total 342 99.98 9.98

25
Source: Researcher’s field survey 2022

4.4 Reliability and Validity

Before applying statistical tools, testing of the reliability of the scale is very much important
as its shows the extent to which a scale produces consistent result if measurements were
made repeatedly. This is done by determining the association in between scores obtained
from different administrations of the scales. If the association is high, the scale yields
consistent result, thus is reliable. Cronbach’s alpha is most widely used method. It may be
mentioned that its value varies from 0 to 1 but satisfactory value is required to be more than
0.6 for the scale to be reliable (Malhotra, 2002; Cronbach, 1951). In this study Cronbach’s
alpha scale is used as a measure of reliability.
Reliability can be expressed in terms of stability, equivalence and consistency of a test.
Consistency check, which is commonly expressed in the form of Cronbach coefficient, is a
popular method. In general speaking, the higher the Alpha is, the more reliable the test is.
There isn’t a commonly agreed cut-off. Usually 0.7 and above is acceptable (Nunnally,
1978). Based on this the below table 8 indicates that the study’s Cronbach's Alpha was
between 0.765 and 0.859. It was above the acceptance level. Therefore the high reliability of
the study is confirmed and can be used in further analysis.
From the table 8 below, it is seen that reliability value was estimated to be α = 0.765 to 0.859,
if we compare reliability value of the scale used in this study with the standard value alpha of
0.6 advocated by Cronbach (1951), it is observed that the scale of this study was highly
reliable for data analysis. Validation procedures involved initial consultation of the
questionnaires. The experts also judged the face and content validity of the questionnaires as
adequate.
Table 4: 7 Reliability of data collection instrument
Item Mean Std. Dev Cronbach's Alpha Remark

Recruitment and Selection 3.6778 .60301 .647 Acceptable

Training and Development 3.9165 .55418 .831 Acceptable
Performance Appraisal 3.5687 .64718 .801 Acceptable
Compensation Scheme 3.6172 .61051 .858 Acceptable
Organizational Performance 3.8763 .64421 .898 Acceptable
Source: Researcher’s field survey 2022

26
4.5 Descriptive Statistics
The major objective of this study was examining of the Human Resource Management
practice on organizational performance at Ministry of National Defense. This objective was
guided by the research questions. According to Zedatol (2008) mean score 3.80 is consider
high, 3.40 - 3.79 is moderate and below 3.39 is low cited by Oumer Mohammed (2012, p.
44). Therefore, humane resource management practice carried out in MoND and
Organizational performances are considered by the above mean value for this study.
Table 4: 8 Descriptive Analyses for Recruitment and Selection
Code Dimension N Mean Std.
Dev.
RS1 Advertisements are used by the MoND to recruit 342 3.72 1.097
RS2 There is formal induction, orientation and familiarization 342 4.12 .915
process designed to help new recruits understand the
organization
RS3 In MoND, line managers and HR managers participate in the 342 3.13 .940
selection process.
RS4 Selection system selects those having the desired knowledge, 342 3.74 .983
skills and attitude
RS5 Vacancies are filled from qualified employees internally 342 3.68 .703
Source: Researcher’s field survey 2022
As the Table 4: 8 indicated that the mean value of respondents towards their level of response
on advertisements is used by the MoND to recruit is 342. This implied that their perception
towards advertisement is moderately agreed. On the other hand respondent’s level of
response on the formal induction, orientation and familiarization process designed to help
new recruits to understand the organization is high. This is assured by the mean value of
4.12.
The mean value for item RS3 is 3.13. These values indicated that respondent’s agreement on
the participation of line manager and HR managers in recruitment process is weak. The mean
value for item RS4 and RS5 is 3.74 and 3.68 respectively. This implied that respondents
have no opinion or moderately agreed on the statement that selection system selects
employees having the desired knowledge, skills and attitude and vacancies are filled from
qualified employees internally.

27
 Table 4: 9 Summary Item Statistics on Recruitment and Selection practice
N Minimum Maximum Mean Std. Deviation
Item Means 342 1.60 4.60 3.6778 .60301
Source: Researcher’s field survey 2022
Table 4: 9 shows summary item statistics of recruitment and selection practices carried out
by MoND. The table gives an average mean of 3.68 which means that respondents
moderately agreed to all the practices related to recruitment and selection in MoND. The
minimum mean of 1.60, stands for the item with the least agreement with the statement of
line managers and HR managers participate in the selection process. The maximum mean
4.60 stands for the statement that there is formal induction, orientation and familiarization
process designed to help new recruits understand the organization in MoND.
Table 4: 10 Descriptive Analysis for Training and Development
Code Dimension N Mean Std.
Dev.
TD1 MoND has a training and development policy applicable to all employees. 342 3.46 1.148
Training and development help create better corporate in which aids 342 3.78 .929
TD2
organizational development, Organizational Cult and Performance.
The training needs of the employees in our organization are assessed on 342 3.67 1.060
TD3
the basis of their performance appraisal
When employees arrive from training, supervisors encourage them to share 342 3.50 1.092
TD4
what they have learned with other employees
I am motivated to learn the concepts that were covered in the training 342 3.79 1.000
TD5
program.
TD6 Training has helped improve my job performance 342 4.10 .890
Training program helps me to improve the quality and quantity of my 342 4.12 .915
TD7
work.
Training program enable the employees to be accountable and 342 4.01 .990
TD8
authoritative in making decision
TD9 Training helps to improve employee –employee relationship 342 4.10 .890
TD10 Training helps to the motivation level of employees 342 4.12 .915
TD11 Training enables employees to be more productive 342 4.01 .990
TD12 I am actively involved in learning during training process 342 4.20 .879
TD13 Training course facilitate you in improving personal competency 342 4.07 .780
Source: Researcher’s field survey 2022

28
Table 4: 10 shows descriptive statistics of training and development practices performed in
Ministry of National Defence. From the above table, the mean value for item TD1 is 3.46. It
indicates that respondents have no opinion or moderately agreed with the statement that
MoND has a training and development policy applicable to all employees. The mean value
for item TD2 is 3.78. It implied that respondents have no opinion or moderately agreed with
the statement that training and development help create better corporate image which aids
organizational development, Organizational Culture and Performance. In the same manner
the mean value of item TD3, TD4 and TD5 is 3.67, 3.50 and 3.79 respectively. This value of
mean indicates that respondents moderately agreed with on the statements that the training
needs of the employees in MoND are assessed on the basis of their performance appraisal,
when employees arrive from training, supervisors encourage them to share what they have
learned with other employees and MoND motivated employees to learn the concepts that was
covered in the training program.
On the other hand the mean value of item TD6 and TD7 is 4.10 and 4.12 consequently. This
implied that respondents strongly agreed with the statement that the training given by MoND
help employees to improve their job performance and the quality and quantity of their work.
In the same way the mean value of item TD8 and TD9 is 4.01 and 4.10 respectively. This
result shows that respondents highly agreed with the statement that the training program
provided by the organization enable the employees to be accountable and responsible to
make decision and to develop harmonious relationship in MoND. The mean value of item
TD10 and TD11 is 4.12 and 4.01 respectively. This indicates that respondents strongly
agreed with the statement that training provided by MoND helps employees to increase the
motivational level and to be more productive. Concerning the involvement of employees in
training process, respondents strongly agreed with the mean value of 4.20. The mean value
for the item (4.07) that respondents strongly agreed with the training given by the MoND
helps employees to improving personal competency.
Table 4: 11 Summary Item Statistics on Training and Development
N Minimum Maximum Mean Std. Deviation
Item Means 342 2.15 5.00 3.9165 .55418
Source: Researcher’s field survey 2022
Table 4: 111 in the above shows summary item statistics of training and development
practices performed by MoND. The table gives an average mean of 3.91 which means that
respondents highly agreed to all the practices related to training and development in MoND.
The minimum mean of 2.15 shows that the least agreement with the statement that MoND

29
has a training and development policy applicable to all employees. On the other hand the
maximum mean value 5.00 shows that respondents strongly agreed with the statement that
employees actively participated in training process provided by MoND.
Table 4: 12 Descriptive Analysis for Performance Appraisal
Code Dimension N Mean Std.
Dev.
PA1 Performance appraisal is fair in MoND 342 3.04 .935
PA2 There is a formal and written performance appraisal system in MoND 342 3.74 .983
PA3 I am informed of how my performance evaluation is done 342 4.20 .879
PA4 Performance of employees is measured on the basis of objective 342 3.49 1.224
quantifiable results
PA5 The objectives of the appraisal system are clear to employees 342 3.49 1.224
PA6 Appraisal system has a strong impact on individual and team 342 3.84 1.022
performance
PA7 Appraisal system helps me to grow and develop my career 342 3.40 1.036
PA8 Employees are provided with performance based feedback and 342 3.37 1.205
counseling
PA9 I feel performance appraisal is just a formality in this organization 342 3.54 .759
Source: Researcher’s field survey 2022
Table 4: 12 shows descriptive statistics of performance appraisal practices in
Ministry of National Defence. From the above table, the mean value for item PA1 is 3.04. It
indicates that respondent’s agreement on the fairness of the performance appraisal is low.
Concerning the formal and written performance appraisal system in MoND, the respondents
moderately agreed with the mean value of 3.74. The mean value of item PA3 is 4.20. It
indicates that respondents strongly agreed with the statement that employees are informed of
how performance evaluation is done. The mean value of PA4 and PA5 is 3.49. This implied
that respondents have no opinion or moderately agreed with the statement that performance
of employees is measured on the basis of objective quantifiable results and the objectives of
the appraisal system are clear to employees in MoND.
Regarding the appraisal system of MOND and its impact on individual and team
performance, respondents strongly agreed with the mean value of 3.84. it means that the
appraisal system has strong impact on employees performance. On the other hand, the mean
value for item PA7, PA8 and PA9 is 3.40, 3.37 and 3.57 respectively. This result indicates

30
that respondents have no opinion or moderately agreed on the statement that the appraisal
system carried out in MoND helps employees to grow and develop their career and
performance appraisal is just a formality in this organization. Respondent’s level of
agreement on the statement that employees are provided with performance based feedback
and counseling is low.
Table 4: 13 Summary Item Statistics on Performance Appraisal
N Minimum Maximum Mean Std. Deviation
Item Means 342 1.67 4.89 3.5687 .64718

Code Dimension N Mean Std.

Dev.
CM1 There is compensation management system in MoND. 342 3.79 1.019
CM2 I am satisfied with compensation management system of 342 3.37 1.205
MoND
CM3 MoND provides a general increase of salary. 342 3.79 1.000
CM4 MoND provides a cost of living increase 342 4.03 .906
CM5 Salary and other benefits are comparable to the market. 342 4.12 .915
CM6 The compensation for all employees is directly linked to 342 3.97 .992
his/her performance.
CM7 Compensation administrators always seek to achieve internal 342 4.12 .912
equity and consistency through organizational belief.
CM8 I am paid adequately for the work I do. 342 4.02 .793
CM9 The pay I receive is competitive compared to that of 342 3.40 1.027
employees doing similar work in other organizations.
CM10 Rewards and incentives are fairly distributed in MoND 342 3.71 .975
CM11 Rewards in MoND are strictly linked to employee’s 342 3.76 1.013
performance
CM12 The existing reward and incentive plan does not motivate me 342 3.49 1.224
for better performance.
CM13 I am satisfied with the salary I draw at present. 342 2.58 1.222
CM14 I am satisfied with the benefits I receive. 342 2.49 1.123
Source: Researcher’s field survey 2022

31
Table 4: 13 shows descriptive statistics of the compensation practices performed in Ministry
of National Defence. From the above table, the mean value for item CM1 is 3.79. It indicates
that respondents have no opinion or moderately agreed with the statement that MoND has
compensation management system. The mean value for item CM2 is 3.37. It implied that the
respondent’s level of agreement on the statement that employees satisfied with compensation
management system of MoND is low. The respondents’ level of agreement on the statement
CM3 is moderate (3.79). It indicates that respondents have no opinion with the item that said
MoND provides a general increase of salary. In the same manner the mean value of item
CM4 and CM5 is 4.03 and 4.12 respectively. This value of mean indicates that respondents
strongly agreed with the statements that MoND provides a cost of living increase and salary
and other benefits are comparable to the market. The mean value of item CM6, CM7 and
CM8 is 3.97, 4.12 and 4.02. This shows that respondents strongly agreed with the statements
that the compensation for all employees is directly linked to employees’ performance, the
increment of cost of living and the comparability of salary and other benefits to the market.
On the other hand the mean value of item CM9, CM10 and CM11 is 3.40, 3.71 and 3.76
consequently. This implied that respondents have no opinion or moderately agreed with the
statement that the payment given by MoND is competitive compared to other organizations,
fare distribution of reward and incentives and the linkage of reward to employees’
performance. In the same way the mean value of item CM12 is 3.49. It implied that
respondents have no opinion to say about the existing reward and incentive plan either it
motivate employees or not for better performance. The mean value of item CM12 and CM13
is 2.58 and 2.49 respectively. It indicated that respondents’ agreement on the satisfaction of
employees’ salary and benefits is low.
Table 4: 14 Summary Item Statistics on Compensation Scheme
N Minimum Maximum Mean Std. Deviation
Item Means 342 1.64 4.71 3.6172 .61051
Source: Researcher’s field survey 2022
Table 4: 14 in the above shows summary item statistics of compensation scheme practices
performed by MoND. The table gives an average mean of 3.61 which means that
respondent’s level of agreement on compensation scheme practices is moderate. The
minimum mean of 1.64 shows that the least agreement with the statement that the satisfaction
of compensation management system applied in MoND. On the other hand the maximum
mean value 4.71 shows that the respondents highest agreement with the statement that the

32
comparability of salary to the market and the internal equity and consistency of compensation
administration performed in MoND.
Table 4: 15 Descriptive Analysis for Organizational Performance
Code Dimension N Mean Std.
Dev.
OP1 My relationship with my supervisor is a harmonious one 342 3.61 1.082
OP2 My relationships with members of my work group are cordial as well as 342 3.64 1.114
professional
OP3 The goals of MoND are clearly known to me. 342 3.49 1.119
OP4 I understand the purpose of MoND 342 3.73 1.089
OP5 I am personally in agreement with the stated goals of my work units. 342 3.63 .958
OP6 The priorities of MoND were understood by its employees 342 3.14 .982
OP7 Other work units are helpful to my work unit whenever assistance is 342 3.40 1.017
requested.
OP8 I have the information that I need to do a good job. 342 3.49 1.012
OP9 MoND has a skilled and competent personnel and capable of providing 342 3.26 1.158
services to guests.
Table 4: 15 shows descriptive statistics of the organizational performance of Ministry of
National Defence. From the above table, the mean value for item OP1 and OP2 is 3.61 and
3.64. It indicates that respondents have no opinion or moderate agreement on the harmony
and professional relationship with supervisors and employees each other. In the same manner
the mean value of respondents for item OP3, OP4 and OP5 is 3.49, 3.73 and 3.63. This
implied that respondents have no opinion or moderate agreement on the statement that the
goals of MoND are clearly known to employees, all employees understand the purpose of
MoND and the agreement of the stated goals of the work unit. On the other hand
respondents’ level of agreement on the item that the priorities of MoND were understood by
its employees is less with mean value 3.14. The mean value of item OP7 and OP8 is 3.40 and
3.49 respectively. This indicates that respondents have no opinion or moderate agreement on
the statement of ones work units which are helpful to other work unit whenever assistance is
requested and employees have information access whenever they need to do a good job.
Respondent’s level of agreement on the statement that MoND has a skilled and competent
personnel and capable of providing services to customers is low. This is assured by the mean
value 3.26.

33
Table 4: 16 Summary Item Statistics on Organizational Performance

N Minimum Maximum Mean Std. Deviation

Item Means 203 1.56 5.00 3.8763 .64421
Source: Researcher’s field survey 2022
Table 4: 16 shows summary item statistics of the organizational performance of MoND. The
table gives an average mean of 3.87 which means that respondent’s level of agreement on
organizational performance of MoND is high. The minimum mean of 1.56 shows that the
least agreement with the statement that MoND has a skilled and competent personnel and
capable of providing services to customers. On the other hand the maximum mean value 5.00
shows that the respondents highest agreement with the statement that employees understand
the purpose of MoND
4.6 Inferential Statistics
Inferential statistics is calculated in order to determine the relationships between the
dependent variable (Organizational Performance) and independent variables (Human
Resource Management). Also, it was used to perform correlation analysis to test the research
hypotheses.
The objective of this study was to examine the influence of Human Resource Management
practice on organizational performance at Ministry of National Defense. In order to examine
the influence, the researcher used two-tailed Pearson Correlation analysis to investigate the
influence of human resource management on organizational performance. The result of the
analysis provides correlation coefficients to indicate the strength and direction of the
influence between human resource management and organizational performance. According
to Huck (2012), a positive correlation coefficient (r) indicates a positive and direct influence
and a negative correlation coefficient (r) indicates a negative and an indirect influence. A
zero correlation indicates that there is no correlation between the two variables. The value of
correlation coefficients (r) nearer to +1 or –1 indicates high degree of correlation between the
two variables.
According to Cohen (1998), the correlation coefficient (r) ranging from 0.10 to 0.29 may be
regarded as indicating a low degree of correlation, (r) ranging from 0.30 to 0.49 may be
considered as a moderate degree of correlation, and (r) ranging from 0.50 to 1.00 may be
regarded as a high degree of correlation.
The significance of influence was determined by p-value. For this study significance level of
0.05 or 0.01 were taken as the standard for a two-tailed test of correlation. For this research,

34
 if the p-value is less than the alpha level of 0.05 (P<0.05) or 0.01 (P<0.01), the researcher
accepted the hypothesis and conclude that there is significant correlation between human
resource management and organizational performance. On the other hand, if the p-value is
not less than the alpha level of 0.05 (P>0.05) or 0.01 (P>0.01), the researcher failed to accept
hypothesis and conclude that there is no significant correlation between human resource
management and organizational performance. The Pearson correlation result is presented in
the Table 4: 17 below.
Table 4: 17 Correlation between Human Resource Management and Organizational
Performance.
RS TD PA CM OP

RS Pearson 1 .843** .810** .852** .552**

Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 342 342 342 342 342
TD Pearson .843** 1 .781* .813** .479**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 342 342 342 342 342
PA Pearson .810** .781** 1 .915** .501**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 342 342 342 342 342
CM Pearson Correlation .852** .813** .915* 1 .517**
Sig. (2-tailed) .000 .000 .000 .000
N 342 342 342 342 342
OP Pearson .552** .479** .501** .517** 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 342 342 342 342 342
Correlation is significant at the 0.01 level (2-tailed).
Source: Researcher’s field survey 2022
The Human Resource Management on Organizational Performance was investigated using
correlation analysis which is presented in Table 4: 17 above. Based on these correlation

35
analyses, the researcher tested each research hypothesis which was presented in chapter one
of this research. The results of research hypothesis are given below.
Hypothesis one
H01: Recruitment and selection practice has a positive influence on organizational
performance at MoND.
As the Table 4: 9 indicated that the mean value of respondents towards their level of response
on advertisements is used by the MoND to recruit is 3.42. This implied that their perception
towards advertisement is moderately agreed. On the other hand respondent’s level of
response on the formal induction, orientation and familiarization process designed to help
new recruits to understand the organization is high. This is assured by the mean value of
4.12. The mean value for item RS3 is 3.13. These values indicated that respondent’s
agreement on the participation of line manager and HR managers in recruitment process is
weak. The mean value for item RS4 and RS5 is 3.74 and 3.68 respectively. This implied that
respondents have no opinion or moderately agreed on the statement that selection system
selects employees having the desired knowledge, skills and attitude and vacancies are filled
from qualified employees internally.
Hypothesis Two
H02: Training and development program has a positive influence on organizational
performance at MoND.
From the Table 4: 10 2above it is clear that there is a relatively high and positive correlation
between Training and Development program and Organizational Performance (r=0.479,
P<0.001). Since the P-value was 0.000 which is less than 0.01. As a result, it can be
concluded that there is sufficient evidence at the 1% level of confidence that training and
development program has a high degree of positive influence on organizational performance
at MoND.
Hypothesis Three
H03: Performance appraisal practice has a positive influence on organizational performance
at MoND
From Table 4: 12 above it is clear that there is a relatively high and positive correlation
between Performance Appraisal practice and Organizational Performance(r=0.501, P<0.000).
Since the P-value was 0.000 which is less than 0.01, the hypothesis was accepted. As a result,
it can be concluded that there is sufficient evidence at the 1% level of confidence that

36
performance appraisal practice has a high degree of positive influences on organizational
performance at MoND.
Hypothesis Four
H04: Compensation scheme has a positive influence on organizational performance at
MoND.
From Table 4: 14 above it is clear that there is a relatively high and positive correlation
between compensation scheme and organizational performance (r=0.517, P<0.000). Since the
P-value was 0.000 which is less than 0.01, the hypothesis was accepted. As a result, it can be
concluded that there is sufficient evidence at the 1% level of confidence that compensation
scheme has a high degree of positive influences on organizational performance at MoND.
Regression analysis
A conduct of Regression
Conduct of regression makes several key assumptions:

 Linear relationship
 Multivariate normality
 No or little multi collinearity
 No auto-correlation Homoscedasticity

Conduct regression needs at least 2 variables of metric (ratio or interval) scale. A rule of
thumb for the sample size is that regression analysis requires at least 20 cases per
independent variable in the analysis.

Firstly, linear regression needs the relationship between the independent and dependent
variables to be management practice also important to check for outliers since linear
regression is sensitive to outlier effects. The linearity assumption can best be tested with
scatter plots; the following two examples depict two cases, where no and little linearity is
present.

Secondly, the linear regression analysis requires all variables to be multivariate normal. This
assumption can best be checked with a histogram and a fitted normal curve or a Q-Q-Plot.
Normality can be checked with a goodness of fit test, e.g., the Kolmogorov-Smirn of test.
When the data is not normally distributed a non-linear transformation, e.g., log-
transformation might fix this issue, however it can introduce effects of multi collinearity.

37
Thirdly, linear regression assumes that there is little or no multi collinearity in the data. Multi
collinearity occurs when the independent variables are not independent from each other. A
second important independence assumption is that the error of the mean has to be
independent from the independent variables.

38
 CHAPTER FIVE
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This study was conducted to examine the Human Resource Management practice on
organizational performance at Ministry of National Defense based on the data collected
through structured questionnaire. The study was conducted through questionnaire data
collected from 342 employees of MoND.
5.1 Major Findings
Based on demographic results as shown in chapter four of this paper, the sample consisted
majority of male respondents (n = 285 or 83.33%) than females (n = 57 or 16.66%). Most of
respondents were senior officer (n= 101 or 49.8%) and junior officers (n = 150 or 43.85%).
According to age category majority of the respondents are above 36 years (n = 108 or
37.57%). This shows that most of the employees are in productive age. The assumptions on
these relatively well understood and matured enough to respond fairly and reasonably to the
The study revealed that a HRM practice has significant impact on organizational
performance. It has been found that AA performance can be attributed to HRM practices
including recruitment and selection, training and development, performance appraisal, and
compensation. The result showed that recruitment and selection practices (r=0.834,
sign=0.000), training and development practices (r=0.843, sign=0.000), compensation (pay)
and rewards (r=0.635, sign=0.000) and performance appraisal(r=0.791, sign=0.000). The
findings shows that HR practices have an impact of nearly 81.4percent on AA performance
questions.

Based on the major findings that have been discussed so far the following points are
recommended for practical application to enhance organizational performance in Ministry of
National Defense.
 Since HRM practices have a positive significant influence on organizational performance,
MoND need to implement all Human Resource management functions in an integrated and
coherent manner to improve organizational performance.
 MoND should allow Line managers (Department Heads) and HR managers to participate in
decision machining on recruitment and selection process. Because if MoND don’t allow to
involve them in the process it is difficult to get skilled and competent employees.
 Strategic leaders of MoND should develop a clearly stated and well-articulated training and
development policy that can be competitive as compared to other best organizations.

39
 Regarding the fairness of performance appraisal, MoND should give training for all
employees to have full information and understanding how performance evaluation is done.
 Regarding compensation, the findings suggested that strategic leaders should revised
compensation policies, and work conditions in order to increase the job satisfaction which
ultimately would lead to enhance organizational performance.
The first objective is to identify the influence of recruitment and selection on organizational
performance at MoND. The result of the descriptive statistics showed that employees seem
moderately agreed with the influence of recruitment and selection practice on
organizational performance. Particularly employees are least agreed with level of the
participation of line managers and HR managers in the recruitment and selection process
(mean= 3.13, SD= 0.940). On the other hand employees are strongly agreed with the level
of formal induction, orientation and familiarization process designed to help new recruits
understand the organization in MoND. The result of correlation analysis showed that
recruitment and selection practice has high and positive influence on organizational
performance in MoND
The second objective is to identify the influence of Training and Development program on
organizational performance at MoND. The result of the descriptive statistics showed that
employees seem highly agreed to all the practices related to training and development in
MoND. Concerning training and development policy applicable in MoND, the level of
employees agreement is least (mean= 3.46, SD= 1.148). On the other hand employees are
strongly agreed with the level of actively participation in training process. The result of
correlation analysis showed that training and development program has high and positive
influence on organizational performance MoND.
The third objective is to identify the influence of performance appraisal on organizational
performance at MoND. The result of the descriptive statistics showed that employees seem
moderately agreed to all the practices related to performance appraisal in MoND. Concerning
the fairness of performance appraisal in MoND, the level of employees agreement is least
(mean= 3.04, SD= 0.935). On the other hand employees are strongly agreed with the level of
information on how performance evaluation is done in MoND. The result of correlation
analysis showed that performance appraisal has high and positive influence on organizational
performance in MoND.
The forth objective is to identify the influence of Compensation on organizational
performance at MoND. The result of the descriptive statistics showed that employees seem
moderately agreed to all the practices related to compensation in MoND. Regarding the

40
employees satisfaction of compensation management system applied in MoND, the level of
employees agreement is least (mean= 2.49, SD= 1.123). On the other hand employees are
strongly agreed with the level of comparability of salary to the market and the internal equity
and consistency of compensation administration performed in MoND. The result of
correlation analysis showed that compensation scheme has high and positive influence on
organizational performance in MoND.
Concerning the descriptive statistics of the overall organizational performance, the result
showed that employees seem highly agreed on organizational performance of MoND. But the
level of employees agreement on statement that MoND has a skilled and competent
personnel and capable of providing services to customers is least (mean= 3.26, SD= 1.158).
On the other hand employees are strongly agreed with the statement that employees
understand the purpose of MoND.
5.2 Conclusion
The objective of the study is to examine the effect of human resource management practices
on organizational performance The study revealed that human resource management
practices have a positive significant influence on organizational performance. It has been
found that MoND performance can be attributed to HRM practices including recruitment and
selection, training and development, performance appraisal and compensation. In this study,
the entire hypothesis accepted.
The Recruitment and selection process determines the decisions as to skilled and competent
employees were got. A better recruitment and selection system can ensure an effective
organizational performance. Recruitment and selection variables have the significant positive
influence on organizational performance. Particularly the formal induction, orientation and
familiarization process designed to help new recruits understand the organization is helpful
for organizational performance in MoND. But the participation of line mangers and HR
managers in the recruitment and selection process is least which affects the organizational
performance of MoND.
Training and development is considered to be the most common HRM practice leads to
superior knowledge, skills, abilities, attitudes, and behavior of employees that eventually
enhance organizational performance. Training and development have the significant positive
influence on organizational performance in MoND. Specifically, employees actively
participated in training and development process which is important to improve

41
organizational performance. But there is no clear and applicable training and development
policy in MoND.
Furthermore, Performance appraisal also influences other HRM practices such as recruitment
and selection, training and development, compensation, and employee relations. It leads to
pay raise, promotion, and training. It is assumed that better performance appraisal can have
impact on organizational performance. From the finding it can be conclude that performance
appraisal has the significant positive influence on organizational performance in MoND.
Employees have full information about the performance appraisal and f how performance
evaluation is done in MoND. But employees complain on the fairness of performance
evaluation in MoND.
Compensation is types of pay or rewards going to employees and arising from their
employment. It is very much important to motivate employees. Compensation scheme has
significant positive influence on organizational performance in MoND. Specifically, Salary
and other benefits are comparable to the market. There is internal equity and consistency of
compensation administration performed in MoND. However, employees are not satisfied by
the compensation management system applied in MoND.
5.3 Recommendations
5.4 Limitations and Future Research Areas
Firstly, in this study, I used a small size sample to analyze the influence of human resource
management practices on organizational performance. As the behaviors of employees change
with changing the environment and organizational practices, so I should collect data more
than one time and compare the results. Future researchers should also consider moderating
variables such as organizational culture, organization climate, labor market and HRM
policies.

42
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 Annex 1
YARDESTIC INTERNATIONA COLLEGE
School of Graduate Studies
Department Of Business Administration
My name is Chimdessa chalchisa (0900281376). I am second year MA student. Currently I
am conducting research on “The Human Resource Management Practice on
Organizational Performance: In case of Ministry of National Defense .In Addis Ababa”
The objective of the study is examining the Human Resource Management practice on
organizational performance at Ministry of National Defense.
To make the study fruitful, the respondents’ intense cooperation in filling the questionnaire is
highly valuable. Hence, the researcher highly demands your support to objectively fill the
questionnaire. The researcher also wants the respondents to assure that the data to be
collected was used only for the acadamic purpose and the personal data of the respondents
was kept confidential.
Thank you in advance!
PART ONE
The following questions concern about your personal information. Its confidentiality is
assured.
1) Sex of Respondents
Male Female
2) Current job title or Responsibility………………………………………………………
3) Total service year for the current position ………………………………….
4) Military Rank………………………………………………………………
5) Age group
21- 25 years 26 – 30 Years Above 41 years
31 -35 Years 36 -40Years
6) Highest Level of Education
TVET Diploma First Degree Master’s Degree
Doctorate Degree
Others, please specify…………………………………
7) Your Marital Status
Single Married Divorced
Other …………………………………

1
 PART TWO
The following questionnaires describe the levels of agreement in each of the items below
with regards to the Human resource Management Practice of Ministry of National Defense.
There are five scales in front of each question. Please tick (√) in the box to the extent of your
agreement or disagreement with each statement regarding Recruitment and Selection Practice
using the scale below (1 – 5).

1 2 3 4 5
Strongly Disagree (SD) Disagree (D) Neutral (N) Agree (A) Strongly Agree (SA)
SD D N A SA
Code Recruitment and Selection
1 2 3 4 5
RS1 Appointments in MoND are based on merit.
RS2 Advertisements are used by the MoND to recruit
RS3 There is formal induction, orientation and familiarization process
designed to help new recruits understand the organization
RS4 In MoND, line managers and HR managers participate in the
selection process.
RS5 Selection system selects those having the desired knowledge,
skills and attitude
RS6 Vacancies are filled from qualified employees internally

PART THREE
The following questionnaires describe the levels of agreement in each of the items below
with regards to the Human resource Management Practice of Ministry of National Defense.
There are five scales in front of each question. Please tick (√) in the box to the extent of your
agreement or disagreement with each statement regarding Training and Development Practice
using the scale below (1 – 5).

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1 2 3 4 5
Strongly Disagree (SD) Disagree (D) Neutral (N) Agree (A) Strongly Agree (SA)

S D NA S
Code Training and Development D A
1 2 3 4 5
TD1 MoND has a training and development policy applicable to all
employees.
TD2 Training and development positively improve the organizational belief.
TD4 Training and development help create better corporate image which
aids organizational development, Organizational Culture and
Performance.
TD5 The training needs of the employees in our organization are assessed on the
basis of their performance appraisal
TD6 Training in our organization includes social skills, general problem solving
skills and broader knowledge of the organization and business.
TD7 When employees arrive from training, supervisors encourage them to share
what they have learned with other employees
TD8 Supervisors support the use of techniques learned in training that employees
bring back to their jobs.
TD9 Supervisors give employees the chance to tryout their training on the job
immediately.
TD10 Supervisors ease the pressure of work for a short time so employees have a
chance to practice new skills that are taught in training.
TD11 I am motivated to learn the concepts that was covered in the training
program.
TD12 Training has helped improve my job performance
TD13 Training for motivation towards performance improvement enabled me to
contribute to increased productivity
TD14 Training program helps me to improve the quality and quantity of my work.
TD15 Training program enable the employees to be accountable and authoritative

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 in making decision
TD16 Training helps to improve employee –employee relationship
Td17 Training helps to the motivation level of employees
TD18 Training enables employees to be more productive
TD19 I am actively involved in learning during training process
TD20 Training course facilitate you in improving personal competency

PART FOUR
The following questionnaires describe the levels of agreement in each of the items below
with regards to the Human resource Management Practice of Ministry of National Defense.
There are five scales in front of each question. Please tick (√) in the box to the extent of your
agreement or disagreement with each statement regarding Performance Appraisal Practice
using the scale below (1 – 5).
1 2 3 4 5
Strongly Disagree (SD) Disagree (D) Neutral (N) Agree (A) Strongly Agree (SA)

SD D N A SA
Code Performance Appraisal
1 2 3 4 5
PA1 Performance appraisal is fair in MoND
PA2 There is a formal and written performance appraisal system in
MoND
PA3 I am informed of how my performance evaluation is done
PA4 Performance of employees is measured on the basis of objective
quantifiable results
PA5 The objectives of the appraisal system are clear to employees
PA6 Appraisal system has a strong impact on individual and team
performance
PA7 Appraisal system helps me to grow and develop my career
PA8 Employees are provided with performance based feedback and
counseling
PA9 I feel performance appraisal is just a formality in this organization

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 PART FIVE
The following questionnaires describe the levels of agreement in each of the items below
with regards to the Human resource Management Practice of Ministry of National Defense.
There are five scales in front of each question. Please tick (√) in the box to the extent of your
agreement or disagreement with each statement regarding Compensation Management
Practice using the scale below (1 – 5).

1 2 3 4 5
Strongly Disagree (SD) Disagree (D) Neutral (N) Agree (A) Strongly Agree (SA)

SD D N A SA
Code Compensation Management
1 2 3 4 5
CM1 There Is compensation management in MoND.
CM2 I am satisfied with compensation management of MoND
CM3 MoND provides a general increase of salary.
CM4 MoND provides a cost of living increase .
CM5 MoND has a bonus or incentive plan.
CM6 MoND has a formal employee merit review process. .
CM7 Salary and other benefits are comparable to the market.
CM8 The compensation for all employees is directly linked to his/her
performance.
CM9 Profit sharing is used as a mechanism to reward higher
performance.
CM10 Compensation administrators always seek to achieve internal
equity and consistency through organizational belief.
CM11 I am paid adequately for the work I do.
CM12 Pay increments offered by our organization are satisfactory.
CM13 MoND follows the policy of matching pay with performance.
CM14 The pay I receive is competitive compared to that of employees
doing similar work in other organizations.
CM15 Rewards and incentives are fairly distributed in MoND

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CM16 Rewards in MoND are strictly linked to employee’s
performance.
CM17 The existing reward and incentive plan does motivate me for
better performance.
CM18 The salary increments given to employees who do their jobs
very well motivates me.
CM19 Financial incentives motivates me more than non-financial
incentives.
CM20 I am satisfied with the salary I draw at present.
CM21 I am satisfied with the benefits I receive.

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 PART SIX
The following questionnaires describe the levels of agreement in each of the items below
with regards to the Human resource Management Practice of Ministry of National Defense.
There are five scales in front of each question. Please tick (√) in the box to the extent of your
agreement or disagreement with each statement regarding Organizational Performance using
the scale below (1 – 5).
1 2 3 4 5
Strongly Disagree (SD) Disagree (D) Neutral (N) Agree (A) Strongly Agree (SA)

SD D N A SA
Code Organizational Performance
1 2 3 4 5
OP1 My relationship with my supervisor is a harmonious one
OP2 My relationships with members of my work group are cordial as
well as professional
OP3 The goals of MoND are clearly known to me.
OP4 I understand the purpose of MoND
OP5 I have enough input in deciding my work-unit goals
OP6 I am personally in agreement with the stated goals of my work
units.
OP7 The priorities of MoND were understood by its employees
OP8 Other work units are helpful to my work unit whenever
assistance is requested.
OP9 I have the information that I need to do a good job.
OP10 MoND has a skilled and competent personnel and capable of
providing services to guests.

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THANK YOU!!