Mamush Aschenaki Research Proposal
Mamush Aschenaki Research Proposal
March, 2021
II
CHAPTER ONE
1. INTRODUCTION
Strategic Human Resource Management (SHRM) is valuable and serves as the backbone of
organizations in the whole world and has an immense influence on employee satisfaction and
retention. Employees are a key resource that can be strategically placed for an organization to
attain competitive advantage (Denisi & Griffin, 2008). Khan (2010) argued that organizations
can increase and sustain competitive advantage through effective management of human
resource as the success of any organization is dependent on the quality and efficiency of its
human resources.
The increasing significance of human resource to organizational success has been observed to
have corresponded with the rise of Strategic Human Resource Management (SHRM) as a field of
study on global scale (Hartel, 2007). Since its emergence, SHRM has been the focus of debate
over whether it exists in reality or is merely rhetoric. Research has, however, shown that human
resource management practices have the ability to create firms that are more intelligent, flexible,
and competent than their rivals through the application of human resource policies and
management practices that concentration recruiting, selecting and training skilled employees,
rewarding, evaluating as well as directing their best efforts to cooperate within the resource
bundle of the organization (Rawashdeh, 2012).
In the recent 50 years, higher management has come to the conclusion that people, not products,
markets, capital, buildings, or machines, are the crucial differentiators of any business. All the
assets of any organization require human application to generate their value. Being aware of this
realization, higher management, industrialists and researchers have been in a state of constant
search of methods to enhance the level of employee effort and activities related to his/her work,
which ultimately improve organizational seccuss (Shaukat, et al, 2015).
According to Dessler (2013), SHRM 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 labor relations. These Innovative SHRM practices are required to be
implemented in today’s knowledge organizations to attract, retain and add value, where value is
based in the talents and skills of the work force, best SHRM practices only can ensure continued
success of business organizations (Shaukat, et al, 2015).
To create a satisfied, productive and efficient workforce, for any organization, proper SHRM
policies and practices are necessary. Satisfied and efficient human resources are the key factors
for any organization to face the challenges of today’s ever-changing environment. Moreover, the
growth, development and expansion of the organization are highly dependent on their
performance. In addition, employees’ performance is related with the satisfaction of employees
(Haquec, et al., 2013).
In Ethiopia, there are large numbers of employees working on banking sector and most of them
are unsure about their satisfaction towards the SHRM practices and with the job. A numbers of
individuals’ prefer to work in the banking sectors and employees working in banks are quite
stable, this might related with better SHRM practices, nice work environment and high
satisfaction from the job. Every individual employee wants satisfaction at job but organization is
wasting its resources by focusing on wrong SHRM practices for employee job satisfaction and
retention practices (Javed, 2012).
Hence, the researcher takes the following combination of strategic Human Resource
Management Practices in the study: (reward and compensation practice, training and
development practice, performance appraisal practice, recruitment and selection practice, and
career management) and examines their implication on employees’ satisfaction and retention in
Commercial Bank of Ethiopia Addis Ababa Eastern District.
2
1.2. Statement of the Problem
No doubt that HR is the back bone of organizations in the world if they placed strategically
(Yamamoto 2011). They can provide innovative solution and ensure that organizations achieve a
competitive advantage. As Armstrong (2009), mentioned that the most successful organizations
are the one that attract, satisfy and retain employees who have the ability to manage a global
organization that is responsive to customers and the opportunities being presented by technology.
Since they are the most vital assets of any institution retaining and satisfy efficient and
experienced workers in banking industry in Ethiopia is very essential in the overall performance
of the institution.
Employees’ satisfaction involves employee’s emotions and their feelings. It has a major impact
on their work lives and for this reason it also influences their behaviour as employees and their
loyalty, commitment, teamwork, relationship with other staff attitude and behaviour. Employee’
satisfaction and retain is a central task of organizational management.
The challenge of employees’ job satisfaction continues to be an issue in today’s most public-
sector organization in Ethiopia like banking sectors context. Recently, most of government
employees are complaining about unfair salary, unsatisfied benefits, lack of recognition and
appreciation, lack of training opportunities, poor performance appraisal system, poor recruitment
and selection procedures, poor rewarding system and career advancement in their
organizations .The results of these complaints is low commitment, high turnover rate,
absenteeism, low morale, poor performance, in discipline acts and poor employer-employee
relationship in organizations(Majumder, 2012). This implies that there is problem of job
dissatisfaction among employees in public sectors that in turn cause the organization to fail to
meets its objectives and goals. There have been suspicions that such employee behaviour could
be linked to employee dissatisfaction with various aspects of the work, SHRM practices being
one of such aspects.
As the organizations grows and increase in size, control becomes more complex. Growth in
organizations makes planning for training, reward, additional recruitment, and even promotion
more difficult. Due to difficulties in planning for the implementation of these HRM practices,
organizations face down turns in employee satisfaction and retention continuously.
3
CBE is among the banking-sector organizations in Ethiopia which not face a great challenges
regarding of employee dissatisfaction and retention among employees that in turn lead the
organization to meets its objectives and goals. There have been suspicions that such employee
emotion could be linked to employee satisfaction with various aspects of SHRM practices, in
Ethiopia there is little research has been done in CBE on the possible link between SHRM
practices and employees’ satisfaction and retention.
Therefore, these studies investigate the implication of SHRM practices and employees’
satisfaction and retention in the Commercial Bank of Ethiopia.
4
Hypothesis2. Employee training and development practice has significant impact to employees’
satisfaction and retention in Commercial Bank of Ethiopia Addis Ababa Eastern District.
Hypothesis3. Employee performance appraisal practice has significant implication to
employees’ satisfaction and retention in Commercial Bank of Ethiopia Addis Ababa Eastern
District.
Hypothesis4. Employee recruitment and selection practice has significant implication to
employees’ satisfaction and retention in Commercial Bank of Ethiopia Addis Ababa Eastern
District.
Hypothesis5. Career management practice has significant implication to employees’ satisfaction
and retention in Commercial Bank of Ethiopia Addis Ababa Eastern District.
1.5. Objectives of the Study
1.5.1. General Objective
The general objective of this study is to analysis the implication of strategic management
practices to employee satisfaction and retention the case of Commercial Bank of Ethiopia Addis
Ababa eastern district.
5
1.6. Significance of the Study
The significance of the study will be seen form the bank, researchers, employee and policy
maker perspective. Strategic management practices to employees’ satisfaction and retention in
the banking sector. The result of this study is not only important for the banking sector but also
for the other sectors; to identify the SM practices that lead to higher employee satisfaction,
retention and higher profitability. For researchers study will give insight to increase their
knowledge on the importance of good strategic management practice to employee satisfaction
and retention and will also serves as reference document for further studies in strategic
management practice and employee satisfaction and retention the banking sector.
The research will be more fruitful if it would conduct on a wider scale of the country. Due to
time and financial constraints might not undertake exhaustive study involving all district and
branches of the CBE. This study carried on the Commercial Bank of Ethiopia Addis Ababa
Eastern district and banks out of eastern district are not part of the study.
The study will delimit conceptually on the following (reward and compensation practice, training
and development practice, performance appraisal practice, recruitment and selection practice,
and career management work environment) strategic management practices.
The study will be organized in to five chapters. Accordingly, the first chapter deals with the
introduction part of the study; the second chapter will discusses the reviews of related literature;
the third chapter focuses on research methodology, the fourth chapter deals with data
presentation, analysis and interpretation, finally, the fifth chapter consists summarizes major
findings, conclusion and recommendations.
6
CHAPTER TWO
2. LITERATURE REVIEW
2.1. Introduction
This chapter will give an overview of theoretical literature, conceptual framework and literatures
that are related and important for this research is reviewed and presented as follows.
Dessler (1994) categorizes HRM systems according to five activities: selection, training,
compensation, labour relations and employee security. A human resource system increases
organizational performance, develops and maximizes an organization’s abilities (Huselid,
1995; Becker & Gerhart, 1996), and contributes to continue competitive advantage of the
organization (Lado & Wilson, 1994). Thus, a good HRM system consists of a coherent set of
practices that enhance employee skills and abilities, provide information, empowerment and
participation in decision-making, and motivation (Pfeffer, 1998; Applebaum et al., 2000).
7
explain the link between the concepts of human resource management and job satisfaction within
an organization.
8
consistent, integrated and strategically focused thus Firms build long-term commitment to retain
their work force. (Choudhary & Lamba, 2013).
Aims of human resource management can change with the definition that you make. Because of
the definition varies from one researcher to another, the aims of HRM can also change in
accordance with the researcher points of view. For example, according to Armstrong (2009, p.8),
“the overall purpose of human resource management is to ensure that the organization is able to
achieve success through people.” In addition, he pointed out that “HRM strategies aim to support
programs for improving organizational effectiveness by developing policies in such areas as
knowledge management, talent management, and generally creating ‘a great place to work’. ”
Since the mid-70’s, human resource management (HRM) has gained prompt acceptance as
professional titles, in seminar programs, in business books in universities and colleges and in the
title of lecturer posts (Huselid, 1995). Human Resource Management (HRM) is considered as a
strategic asset and research has indicated that HR policies and practices are an important source
of a firm’s competitive advantage in the marketplace since they are difficult to trade or imitate.
9
Therefore, the extent to which human resource management practices are strategically oriented
toward high performance work practices (selective 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. In the context of
the research human resource management is the process of acquiring, training, appraising, and
compensating employees, and of attending to their labor relations, health and safety, and fairness
concerns.”
10
linking of benefits to employee performance and the conversion of pension into contributory
pension plans (Conrad, 2009). In addition to that the usage of contingent pay schemes has
undergone a significant change during the last quarter century with a greater probability of
collective forms of compensation systems which means that there are a number of combinations
for applying these schemes (Bryson et al., 2008). In a general context this is attributed to the
changing nature of the work and employment relationships, the new set of expectations of the
stakeholders, technological shifts and increase in globalization. In the context of this research
compensation includes all financial payments, bonuses and a non-financial benefit the
organization provides to employees to attract qualified human resources and to maintain what is
available in the organization.
2.3.3. Training and Development Practices
To meet the challenges inherent in 21s century work careers and organizations, employees
required to continuously update their knowledge, skills and work habits and the organizations to
invest highly in the development of their human capital. Researchers indicate investments in
training employees result in beneficial firm level. Training is the acquisition of knowledge skills,
and competencies as a result of the teaching of vocational or practical skills and knowledge that
relate to the specific useful competencies.
Development needs identified by a training needs analysis so that the time and money invested in
training and management development is linked to the mission or core business of the
organization. To be effective, training and management development programs need to take into
account that employees are adult learners theory of adult learning or “Andragogy” is based on
five ideas; that adults need to know why they are learning something, adults need to be self-
directed, adults bring more work-related experiences into the learning situation, adults enter into
a learning experience with a problem-centered approach to learning, and adults are motivated to
11
learn by both extrinsic and intrinsic motivators. Having a problem-centered approach means that
workers will learn better when they can see how learning will help them perform tasks or deal
with problems that they confront in their work. At different stages of their careers, employees
need different kinds of training and different kinds of development experiences (Miller, 1987).
Categories of training are as follows; On the job training, takes place in a normal working
situation using the actual tools, equipment, documents or materials that trainees will use when
fully trained, and off the job training takes place away from the normal work situations implying
that the employee does not count as a directly productive worker while such training is taking
place. On the job training has the advantage that it allows people to get away from work and
concentrate thoroughly on the training itself. This type of training has proven more effective
inculcating concepts and ideas (Miller, 1987).
There are many different training and development methods on job training namely; informal
training, classroom training, internal training courses, external training courses, skills training,
product training just to mention but a few, all these are some of the available to use and apply to
individual training needs and organizational training needs.
12
2.3.4. Performance appraisal practice
Performance appraisal practices are widely established in most public and private organizations
all over the world. Alqahtani (2010, P.32) defined as “a formal system of review and evaluation
of individual or team task performance”. Armstrong (2009) views performance appraisal as a
process, which is systematic and dedicated to improving both the organization and the
individuals in the organization. Within the process, a framework establishes goals and
performance standards requirements. Guest (2011) also defined Appraisal as a bundle of HR
practices that influence organizational performance and so justifies HRM claims to have a
strategic impact.
Bratton and Gold (2012) emphasized the need to measure individual and team contributions in
the job in order to determine organizational performance. It is therefore, important for
organizations to understand how the totality of HRM Practices including performance appraisal
can affect employees. Towell (2012) argue that to improve performance appraisal we should be
focusing on improving the quality of the conversation. In addition, performance appraisal have
many functions which theoretically serves the stakeholders including employees who are subject
to performance appraisal process; line managers, who conduct the performance appraisal
process; and organizations, which their final goals is subject to the result of performance
appraisal process.
As the above definitions indicate, it is difficult to find a particular definition that includes all the
dimensions of performance appraisal so it is important to consider the common acceptable
features and elements of performance appraisal. According to Alqahtani (2010, P153), it is
important to consider the performance appraisal process as one that contains the following
components:
1. A rated person who is subject to the performance appraisal process. And in accordance to
certain standards,
4. Procedures and process that give the performance appraisal process its validity.
13
All of these definitions illustrate the strategic significance of performance appraisal within
human resource management.
As the above researchers have established one of the main purposes of performance appraisal is
to improve organizational performance through the efforts and outputs of its employees.
Performance as a concept consists of a record of outcomes achieved by the employees. It is a
multi-dimensional construct; it includes both outcomes (outputs) and activities (inputs) the
measurement of which varies depending on a variety of factors, (Armstrong, 2009).
1. Goal-Setting Approach
2. Control Approach
Goal-setting approach was developed by (Locke & Latham, 1990 and 2002) it established from
an inductive study over a 25-year period and involved 400 studies in both laboratory and field
based settings.
Armstrong (2009) explains that Control Approach focuses on the necessity for feedback within
the performance appraisal in order to outline individual’s behavior. His summaries that, as
feedback are received, individuals appreciate understanding any difference between what is
expected and what they are actually doing and then take corrective action.
Social Cognitive Approach is based on (Buchner, 2007) study; he explains that his views on
motivation are influenced by the interaction of three key elements: the work environment in the
organization, what the employees in the organization believe and what the employee does in the
organization believe.
What people thinks or believes about their abilities helps to explain their performance.
Therefore, if an individual does not have sufficient self-belief in their capabilities they are
unlikely to perform as expected.
14
conversation where feedback is exchanged, objectives are jointly established, coaching is
provided where needed, mid-year reviews are applied which address achievement of goals and
progress with personal development plans. In the context of this research performance appraisal
is a fundamental provider of information for making decisions that leads to improve performance
and organizations (Guerra-Lopez, 2008). Evaluating workers in the workplace in relation to pre-
agreed standards (Abu-Doleh,2007).
The general purpose of recruitment according to Gamage (2014) is to provide the organization
with a pool of potentially qualified job candidates. The quality of human resource in an
organization highly depends on the quality of applicants attracted because organization is going
to select employees from those who were attracted. In the same vein, Henry and Temtime (2009)
construed recruitment as the entry point of manpower into an organization and the path an
15
organization must follow from there on in order to make sure that they have attracted the right
individuals for their culture and vibes so that the overall strategic goals are achieved .
On the other hand, selection is the process of making the choice of the most suitable applicant
from the pool of applicants recruited to fill the relevant job vacancy (Opatha, 2010). Selection is
the process by which specific instruments are engaged to choose from the pool of individuals
most suitable for the job available (Ofori & Aryeetey, 2011). Selection involves the use of one or
more methods to assess applicant’s suitability in order to make the correct selection decision and
can be alternatively seen as a process of rejection as it rejects a number of applicants and select
only a few applicants to fill the vacancy. Thus, selection function may be a negative function
rather than a positive function (Gamage, 2014).
According to Gamage (2014) the objectives of selection function are to get the right person to the
right job, establish and maintain a good image as a good employer, and maintain the selection
process as cost effective as possible. Selection is an extremely important aspect to consider for
businesses due to a number of reasons. Often the performance of businesses relates directly to
the people working within it, meaning the right people need to be hired to ensure organizational
success (Henry & Temtime, 2009). It is also an expensive process to hire someone new into the
organization. So it is not something organizations want to put time and money into just to find
they have hired somebody who is not suitable. It is vital that organizations get the process right
the first time round, because resources are scarce enough as it is. Selecting the right applicant can
be a difficult task, but at the end of the day, the organization’s reputation is held by the people it
employs (Henry & Temtime, 2009). Thus, recruitment for this research is the process to obtain
the number and quality of employees that are required to satisfy the strategic objectives of the
organization, at minimal cost (Ofori & Aryeetey, 2011).
16
management practices: person-organization fit, employment security, communication and
training and development are contributing strongly in developing the employees’ intentions to
stay with organization. Further, strong positive inter-relationships were found between human
resource management practices and employees’ retention. It is concluded that adoption of human
resource management practices enhances employees’ retain-ability of organizations.
Employees’ satisfaction has been defined as the collection of feelings and beliefs that employees
have about their current job. Employee’ levels of satisfaction can range from extremely satisfied
to extremely dissatisfy. In addition to having attitudes towered their jobs as a whole. Employees
17
can also have attitudes about various aspects of their jobs such as the kind of work they do, their
coworkers, superiors or subordinates and their pay (George et al., 2008).
Employees’ satisfaction is defined as employees’ own evaluation of their jobs against those
concerned issues that are important to them (Sempane et al., 2002). Similarly, McCormick and
Ilgen (1980) conclude that high satisfaction means that employee like their job in general. Hence,
they appreciate and feel positive about it. They also mention that employees’ satisfaction is an
employee’s personal attitude towards their job, and an attitude is an emotional response to job,
which can be positive or negative.
18
essential for an employer. But retention is even more important than hiring. This is true as many
employers have underestimated costs associated with turnover of key staffs (Ahlrichs, 2000).
Turnover costs can incurred with issues such as reference checks, security clearance, temporary
worker costs, relocation costs, formal training costs and induction expenses. Other invincible
costs and hidden costs such as missed deadlines, loss of organizational knowledge, lower morale,
and client‘s negative perception of company image may also take place.
This is why retaining top talent has become a primary concern for many organizations today.
Managers have to exert a lot of effort in ensuring the employee‘s turnover are always low, as
they are gaining increasing awareness of which, employees are critical to organization since their
values to the organization are not easily replicated. Many critical analysis are conducted to
minimize the possible occurrence of shortage of highly-skilled employees who posses specific
knowledge to perform at high levels, as such event will lead to unfavorable condition to many
organizations who failed to retain these high performers. They would be left with an
understaffed, less qualified workforce that will directly reduce their competitiveness in that
particular industry (Rappaport et.al, 2003).
This is why managers today must take care of their employees personal feelings toward the job
and satisfaction levels from their working conditions, superiors and peers, as these are the keys
to ensure employee retention. The success and survivability of organizations is heavily
dependent on customer evaluations whereby the organization must put effort in satisfying their
employees since the relationship between customer satisfaction and employee‘s satisfaction are
significant.
19
The result shows that training and development, and compensation and social benefits are
positively related to employee satisfaction. Aswathappa (2008) found that employee
compensation is an important factor why people work. He adds that satisfying employees’ living
status in the society, loyalty, and productivity are also influenced by employee compensation.
Oyeniyi et al. (2014) examine the effect of HRM practices on job satisfaction of employees of
selected banks in Nigeria. The results show that compensation practice, promotion practice,
training practice and performance evaluation have a positive effect on job satisfaction among
Nigerian banks staff but only supervisory role practice has an inverse effect on job satisfaction.
The findings of the study by Rathanweera (2010) suggest that human resource management
practices are significant predictors of employee satisfaction, commitment, and retention. Javed et
al. (2012) examine the relationship between
HRM practices and employee job satisfaction in the Public sector of Pakistan. The finding
reveals that recognition and training and development are positively associated with employee
job satisfaction, whereas, reward did not have a significant impact on employee job satisfaction.
Kashfi et al. (2015) examined the effect of human resources planning on the satisfaction of
Mellat Bank employees. The results indicate that there is a significant link between human
resource planning and employee satisfaction. Rahman et al. (2013) in their study of 4
pharmaceutical companies in Bangladesh, found that employees are satisfied with the
recruitment and selection, and training and development policy, whereas, employees are
dissatisfied with the working environment, performance appraisal, human resource planning,
compensation policy, and industrial relations. (2013) found that employee compensation.
20
According to Kennedy (2009), training and development ensures that competent people available
to fill vacant positions at all levels of the organisation. Authors argue that training and
development enable organisations adapt to changing environmental conditions
Research indicates that, hiring and training a replaced worker for a lost employee costs
approximately 50% of the workers‘ annual salary (Johnson et al., 2000); interestingly, the cost
do not end there. Each time an employee leaves a firm, it is assumed that productivity drops due
to the learning curve involved in understanding the job and the organization. Furthermore, the
loss of intellectual capital contribute to this loss because not only do lose human capital and
21
relational capital of the departing employee, but also competitors are potentially gaining these
assets.
Thus, empirical studies have made considerable efforts to link sets of human resource practices
to business outcomes through high performance and greater satisfaction (Becker &Huselid,
1998, Delaney & Huselid, 1996 and Huselid, 1995). The common subject in a lot of studies is
the idea that human resource practices can positively influence firm performance through their
influence on the behavior of its employees. Those employees are affected positively in their
performance, satisfaction and motivation which improve individual and/or group productivity
(Becker & Huselid, 1998 and Guest, D. E., 2011). Although there are some studies that did not
fully confirm theses positive relationships (Guest, et al., 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 enterprise-level
performance (Jackson et al., 2014).
Khan et al. (2015) in their study concluded that there was significant relationship between
training and development and job satisfaction. Chaudhary & Bhaskary (2016) research results
concluded that training and development contribute to job satisfaction.
Salisu, et al. (2015) in their study of impact of compensation on job satisfaction of public sector
construction workers in Nigeria, the study revealed that compensations have positive impact on
employees’ job satisfaction. Yaseen (2013) studied the effect of compensation factors on
employee’s satisfaction and the results showed that pay, recognition, promotion and meaningful
work had effect on job satisfaction.
Kampkotter (2016) studied the performance appraisal and job satisfaction by using cross
sectional survey strategy, questionnaires, regression analysis and samples size were 10,500
German employees. Researchers found that there was positive significant effect of performance
appraisal on job satisfaction. Darehzereshki (2013) study revealed that employees who had been
22
exposed to high quality performance appraisal systems were feeling more satisfied with their
work.
Various studies showed a positive impact between compensations and employee attitudes, there
are indications that different compensations arrangements may increase work (Green, 2004).
This type of compensation that is performance and target based can lead to employees to work
too hard and too intensively, leading to work-related stress or poor well-conditions. To date, little
progress has been made in gathering empirical evidence on whether compensation is in fact
associated with the perception that work is more intense, and how this might impact on
employees' workplace attitudes such as satisfaction (Ogbonnaya et al., 2017).
Mahmood (2013) writes that satisfied employees are more motivated and hardworking than
dissatisfy employees. He states that satisfied employees will respond by working towards the
organization's success. Additionally, satisfied employees will have more pride in their jobs.
Similarly, (Zairi, 2000) also writes that employees satisfaction is the source of excellent quality
and as a result, employees are more likely to work together as a team and effectively to targeted
results, in addition to this satisfied employee are constantly looking for improved practices to do
work, so it is essential for organizations to persuade motivation of their employees (Kallimullah
et al., 2010). Hence, scholars have consistently attempted to understand the impacts of HRM
practices on employees’ satisfaction, because a well performed and satisfied employee is
responsive of the definite goals and objectives he/she must achieve. (Lowery et al., 2002) found
that Blue collar workers in United States were more concerned on satisfaction with coworkers,
satisfaction with supervision, and satisfaction with pay, but less concerned about satisfaction
with opportunities for advancement, satisfaction with the work itself and organizational
commitment.
23
to fill this gap by examining the other dimension of variable that impact to employee satisfaction
and retention CBE.
24
CHAPTER THREE
3. Research Methodology
3.1. Introduction
This chapter explains methods that will be used in carrying out the research, how it will design
and the reasons for the choice. It also discusses the research approach, population, sample,
sampling technique, instruments and procedure of the data collection and methods of data
analysis.
A research design is the program that guides the researchers in the process of collecting,
analyzing and interpreting the data. The researcher will chose to use a quantitative research
method to assess the implication of strategic management practice to employee satisfaction and
retention. The reason for choosing a quantitative method for this research is that the research
emphasizes quantification in the collection and analysis of data.
The researcher will used explanatory research design to analysis the implication of strategic
management practice employee satisfaction and retention. The reason for the choice of
explanatory research design is that, it allows to explaining, understanding, predicting the
relationship between variables and attempts to classify why and how there is a relationship
between two aspect of a situation or phenomenon Kumar (2011).
3.4. Population
The researcher will be conduct a study on 5 CBE branch banks existing in Addis Ababa eastern
districts which is selected with purposive sampling method among 130 branch banks exists in
Addis Ababa CBE eastern districts which have high number of employees.
25
3.5. Sample size of the study
Sampling is significant as budget and time restrictions prevent from surveying the whole
population. Sampling also gives higher truthfulness and fast results (Bakri, 2009). The researcher
will be conduct a study on 5 CBE branch banks existing in Addis Ababa eastern districts which
is selected with purposive sampling method among 130 branch banks exists in Addis Ababa
CBE eastern districts which have high number of employees. The reason for choosing 5 branches
that have high number of employees using purposively is because of resources constraints (time,
money, human resource) in the time of data collection.
After the population is identified, the samples size is determined by using the following Slovin's
formula.
Where: ‘n’ is the sample size, ‘N’ is the population size, and ‘e’ is the level of precision or
sampling error = (0.05)
Given
N = 300
e = 0.05
n = 171
3.6. Sampling Techniques
The researcher will conduct a study on 5 CBE branch banks existing in Addis Ababa eastern
districts which is select by using purposive sampling method among 130 branch banks exist in
Addis Ababa CBE eastern districts. And also the researcher chose a stratified random sampling
in order to determine the number of sample employees in the ten selected branch banks to
represent the population.
26
3.7. Source and Instruments of Data Collection
The main tool/ instrument of the study will be use two types of questionnaires. The first
questionnaire is strategic management practices (SMP) which measure SM practices in the bank
and the other is Minnesota satisfaction questionnaire which measure the employee’s satisfaction
and retention of employees as a tool to achieve the objective of the study. Questionnaires are
prepared in English languages because all are respondents read English.
3.9. Methods of Data Analysis
Data will collect through identified method of data collection instruments from the sample of the
desired population and then quantitative data will gather trough questionnaire. The quality of
collect data will check by the researcher, Quantitative data will summarize and coding to prepare
for statistical data analysis procedures. The collected data will analyze based on descriptive
statistics using Statistical Package for Social Science (SPSS). The research follows the inferential
analysis method mainly involving multiple regression and correlation. And Tables will also use
to present the data properly.
In this research Cronbach’s Alpha of reliability test will be used to assess the reliability of the
four independent variables of SMP and dependent variable employee satisfaction and retention.
The reliability analysis is used to test consistency of respondents’ answers to all the items of
independent and dependent variables in the questionnaire, whether the items are hanged together
as a set which they are highly correlated with one another. Consistency of this research is will
examine through Cronbach’s coefficient Alpha.
3.11. Research Ethics
Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and
recommending concepts of right and wrong conduct. The field of ethics, along with aesthetics,
concerns matters of value, and thus comprises the branch of philosophy called axiology
(Wikipedia).
But, ethics in research concerns the responsibility of researchers to be honest and respectful to all
individuals who are affected by their research studies or their reports of the studies’ results.
27
Therefore we will follow necessary mandates by telling the participants the purpose of our
research, clarify doubts about the research, respecting the right to refuse to participate and give
assurance to protect confidentiality and follow specific procedures; as we have done earlier to get
permission from the CBE Addis Abeba eastern district and selected Branch to carry out the
research.
3.12. Budget
Expenditures Amount of money needed
stationary materials 15000
Transport 800
Others 900
Total 3200 Birr
REFERENCE
28
Abu-Doleh, W. (2007).Dimensions of Performance Appraisal Systems in Jordanian Private and
Public Organizations.International Journal of Human Resource Management. 18(1), 75-
84.
Aguinis, H., Joo, H. &Gottfredson, R. K. (2011). Why we hate performance management – And
Why we should love it. Science Direct 54(6), 503-507.
Al Salem, M. (2010). Human Resources Management Integrated Strategic Approach.
(Unpublished doctoral thesis).University Library, Sharjah UAE.
AL-Nofal, B. (2010). Human Resource Empowerment Strategy and Its impact on achieving
Strategic Objectives in Kuwait Commercial Banks (Master’s thesis, Middle East
University, Amman, Jordan).
Altarawmneh, I., & Al-Kilani, M. (2010).Intentions in the Jordanian Hotel Sector. Human
Resource Management and Turnover Research and Practice in Human Resource
Management, 18(1), 46-59.
Altarawneh, A. (2005). Training and development effectiveness: practices, roles and impacts on
performance in Jordanian banking organisations (Unpublished doctoral thesis) The
University of Huddersfield, West Yorkshire, England.
Armstrong, M. (2009). Performance Management: Key Strategies and Practical Guidelines.
London, United Kingdom: Kogan Page.
Armstrong, M., & Taylor S. (2014).Armstrong's Handbook of Human Resource Management
Practice. London, United Kingdom: Kogan Page.
Aswathappa, K. (2008). Human resource and personnel management text and cases. New York
City, USA: McGraw-hill publishing company.
Aziri, B. (2011). Job Satisfaction: A Literature Review. Management Research and Practice3 (4),
Atif, A., Ijaz-Ur-Rehman, Abdul N., & Nadeem, S. (2011). Employee retention
relationship to training and development: A compensation perspective.
African Journal of Business Management, 5(7), 2679-2685.77-86.
Bacon, N., &Hoque, K. (2005). HRM in the SME sector: Valuable employees and coercive
networks. The International Journal of Human Resource Management, 16 (11): 1976-
1999.
29
Barber, A., Wesson, M., Roberson, Q., & Taylor, S. (1999). A tale of two job markets:
Organizational size and its effects on hiring practices and job search behavior. Personnel
Psychology, 52(4):841-867.
Batti R. (2014). Human Resource Management Challenges Facing Local NGOs. Humanities and
Social Sciences, 2(4), 87-95.
Bosninih, S., & Al-Farsi A. (2003). Human Resources: relevance, organization, responsibilities
and functions, Tripoli, Libya: graduate Academy.
Bratton, J., & Gold, J. (2012). Human Resource Management: Theory and Practice. London,
United Kingdom: Palgrave Macmillan.
Buchner, T. W. (2007). Performance Management Theory: A Look from the Performer’s
Perspective with Implications for HRD. Human Resource Development International, 10
(1), 59-73.
Casio, W. F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits.
New York,USA: McGraw-Hill Irwin.
Chaudhry, N. S. & Bhaskary, P. (2016). Training and development and job satisfaction in
education sector. Journal of Resource Development and Management, 16(1), 42-45.
Choudhary, N., & Lamba, S. (2013).Impact of human resource practices on organizational
commitment of employees. International Journal of Advancements in Research &
Technology, 2(4), 407-422.
Chuang, C., Jackson, S., & Jiang, Y. (2013). Can knowledge-intensive teamwork be managed?
Examining the roles of HRM systems, leadership, and tacit knowledge. Journal of
Management, 42(2), 524-554.
Conrad, H. (2009). From Seniority To Performance Principle: The Evolution Of Pay Practices In
Japanese Firms Since 1990‘s. Social Science Japan Journal, 13(1), 115-135.
Curran, B., &Walsworth, S. (2014). Can you Pay Employees to Innovate? Evidence from the
Canadian Private Sector. Human Resource Management Journal, 24(3), 290–306.
Darehzereshki, M. (2013).Effect of performance appraisal quality on job satisfaction in
multinational companies in Malaysia.International Journal of Enterprises Computing and
Business system, 2(1), 167-176.
Darwish, T. (2013). 10 Strategic HRM and Performance: Theory and Practice. Newcastle,
United Kingdom: Cambridge Scholars Publishing.
30
Denisi, A., & Griffin R. (2005). Human Resource Management, New York, USA: Houghton
Mifflin Company.
Dessler, G. (2013). Human Resource Management. New Jersey, USA: Pearson Education.
Elarabi, H., &Johari, F. (2014).The Impact of Human Resources Management on the Health
Care Quality, Asian Journal of Management Sciences and Education, 3(1).
Farndale, E., &Kelliher, C. (2013).Implementing Performance Appraisal: Exploring the
Employee Experience. Human Resource Management, 52(6), 879–897.
Fening, F., &Amaria, P. (2011).Impact of human resource management practices on small firm
performance in a country in recession. American Journal of Business Research, 4(1), 23-
54.
Fottler, M., &Khatri, N. (2010).Strategic Human Resource Management in Health Care. Bingley,
United Kingdom: Emerald Group Publishing.
Gamage, A. S. (2014). Recruitment and selection practices in manufacturing SMEs in Japan: An
analysis of the link with business performance. Ruhuna Journal of Management and
Finance, 1(1), 37-52
Green, C., & Heywood, J. (2008). Does performance pay increase job satisfaction? Economica
from London School of Economics and Political Science, 75(300), 710–728.
Guest, D. (2011). Human resource management and performance: still searching for some
answers. Human Resource Management Journal, 21(1), 3-13.
Guest, D. E. (2011). Human resource management and performance: a review and research
agenda. The International Journal of Human Resource Management, 8(3) 263- 276.
Guest, D., Michie, J., Conway, N., & Sheehan, M. (2003).Human Resource Management and
Corporate Performance in the UK. International Journal of Employment Relations, 41(2),
291-314.
Halbesleben, J. R. B. (2010). A meta-analysis of work engagement: Relationships with burnout,
demands, resources, and consequences. In A. B. Bakker and M. P. Leiter (Eds.), Work
engagement: A handbook of essential theory and research (pp. 102-117). London:
Psychology Press.
Haquec, R., Islam, S., Chowdhury, S., Akhter, R., &Rahman, M. (2013). HRM Practices and its
Impact on Employee Satisfaction: A Case of Pharmaceutical Companies in Bangladesh.
International Journal of Research in Business and Social Science, 2(3), 62-67.
31
Henry, O., &Temtime, Z. (2009). Recruitment and selection practices in SMEs: Empirical
evidence from a developing country perspective. Advances in Management, 3(2), 52-58.
Heywood, J., & Wei, X. (2006).Performance pay and job satisfaction. Journal of Industrial
Relations, 48(4), 523–540.
Huselid, M. (1995).The impact of Human Resource Management practices on turnover,
Productivity and corporate financial performance. Academy of Management Journal,
38(3), 635-872.
Ichniowski, C., Shaw, K., &Pernnushi, G., (1997). The effect of human resource management
practices on productivity. American economic review, 87(4), 291-313.
Jackson, S.E., Schuler, R.S. & Jiang, K., (2014). Strategic HRM: a review and
framework,Academy of Management Annuals, 8(5), 1-56.
Jiang, K., Takeuchi, R., &Lepak D. P. (2013). Where do we go from here? New perspectives on
the black box in strategic human resource management research. Journal of Management
Studies, 50(8), 1448-1480.
Kampkotter, P. (2016). Performance appraisal and job satisfaction. The International Journal of
Human Resource Management, 28(5) 750-774.
Kang, S., &Yanadori, Y. (2011). Adoption and coverage of performance related-pay during
institutional change: An integration of institutional and agency theories. Journal of
Management Studies. 48(8), 1837-1865.
KHANNA, P. (2014). Recruitment & Selection: A need of the hour for organizational success.
International Journal of Research in Management & Technology 4(3).
Koc, M., ÇAVUŞ, M., &Saraçoglu, T. (2014).Human Resource Management Practices, Job
Satisfaction and Organizational Commitment.International Journal of Academic Research
in Business and Social Sciences, 4(9).
Koon, V. Y. (2015). The Impact of Strategic Human Resource Management on Employee
Outcomes in Private and Public Limited Companies in Malaysia, Journal of human
Values, 21(2).
Koys, D. J., (2001). The effects of employee satisfaction, organizational citizenship behaviour,
and turnover on organizational effectiveness: A unit-level, longitudinal study. Personnel
Psychology, 54(1), 101-114.
32
Kumar, K. (2013). Training And Development Practices And Performance Of
Sccl.International Journal of Pharmaceutical Sciences and Business Management. 1(1),
82-103.
Liao, Y. (2011). The effect of human resource management control systems on the relationship
between knowledge management strategy and firm performance. International Journal of
Manpower, 32 (5/6).
Lim, L. J. W., & Ling, F. Y. Y. (2012). Human resource practices of contractors that lead to job
satisfaction of professional staff. Engineering, Construction and Architectural
Management, 19(1), 101–118.
Mahmood, A. (2013). Evaluation of the Degree to which Employee Satisfaction is related to
Internal Marketing within Pakistani Universities.(Unpublished doctoral thesis).University
of Salford, Salford, United Kingdom.
Majumder, T. (2012). Human Resource Management Practices and Employees’ Satisfaction
Towards Private Banking Sector in Bangladesh. International Review of Management
and Marketing 2(1), 52-58.
Moriones, B. A., &Larraza-Kintana, M. (2009). Profit-sharing plans and affective commitment:
does the context matter?. Human Resource Management, 48(2), 207–226.
Muhammad Javed, Muhammad Rafiq, Maqsood Ahmed and Mustajab Khan. (2012). Impact of
HR Practices on Employee Job Satisfaction in Public Sector Organizations of Pakistan.
Interdisciplinary Journal of Contemporary Research in Business, 4, 348-363.
Murphy, K., & Cleveland, J. (1995).Understanding Performance Appraisal: Social,
Organizational, and Goal-Based Perspectives. London, United Kingdom: SAGE
Publications.
Ofori, D., &Aryeetey, M. (2011).Recruitment and selection practices in small and medium
enterprises. International Journal of Business Administration, 2(3):45-60.
Opatha, H.H.D.N.P. (2010). Human resource management. Colombo: Author published.
Paauwe, J., &Boselie, P. (2005). HRM and performance: what next?. Human Resource
Management Journal, 15(4), 68-83.
Pattanayak, B. (2005). Human resource management, New Delhi, India: prentice hall of India
publishing company.
Petrescu, A., & Simmons, R. (2008). Human resource management practices and workers' job
satisfaction. International Journal of Manpower, 29(7), 651-667.
33
Price, A. (2007). Human Resource Management in a Business Context.(3th Ed.). London:
Thomson Business Press.
Ray, K., &Goppelt, J. (2011).Understanding the effects of leadership development on the
creation of organizational culture change: a research approach. International Journal of
Training and Development, 15(1), 58-75.
Renata, M. (2011).A New Measure of Employees Satisfaction.Global Journal of Business
Research, 5(1).
Sekaran, Uma, (2003). Research Methods for Business, New Jersey, United States: Wiley &
Sons.
Sempane, M. E., Rieger, H. S., &Roodt, G. (2002).Job satisfaction in relation to organisational
culture. South African Journal of Industrial Psychology, 28(2), 23–30.
Shaukat, H., Ashraf, N., &Ghafoor, S. (2015). Impact of Human Resource Management
Practices on Employees Performance. Middle-East Journal of Scientific Research, 23(2),
329-338.
Shih, H., & Chiang, Y. (2005).Strategy alignment between HRM, KM, and corporate
development. International Journal of Manpower, 26(6), 582-603.
Smith, R., &Meso, P. (2000). A resource based view on organizational knowledge management
system. Journal of knowledge management, 4(3), 224-234.
Tiwari, P., &Saxena, K. (2012). Human resource management practices: A comprehensive
review. Pakistan Business Review, 669–705.
TofaelHossainMajumder, Md. (2012). Human Resource Management Practices and Employees’
Satisfaction towards Private Banking Sector in Bangladesh. International Review of
Management and Marketing, 2, 52-58.
Umphress, E. E., K, Smith-Crowe., AP, B., J, D., & M. B. Watkins. (2007). When Birds of a
Feather Flock Together and When They Do Not: Status Composition, Social Dominance
Orientation, and Organizational Attractiveness. Journal of Applied Psychology, 92(2),
396-409.
Wang, Y. (2012). Recruitment and Retention of Knowledge Workers in Taiwan’s High
Technology Industry (Unpublished doctoral thesis).Cardiff University, Wales, United
Kingdom.
Watson, T. J. (2010). Critical social science, pragmatism and the realities of HRM.The
International Journal of Human Resource Management, 21(6), 915–31.
34
Wood, S.J., & Wall, T.D. (2002).Human resource management and business
performance.InP.B.Warr (Ed.), Psychology at work.Harmons worth: Penguin,
Yaseen, A. (2013). Effect of compensation factors on employees’ job satisfaction: A study of
doctors’ dissatisfaction in Punjab. International Journal of Human Resource Studies, 3(1),
142-157.
Zairi, M. (2000).Managing Customer Dissatisfaction through Effective Complaint Management
Systems. The TQM Magazine, 12 (5), 331-335.
Zuelv, M. (2003).People management. Amman, Jordan: Dar Al-Safa for publication and
distribution.
35
APPENDIX
QUESTIONAIRES
I would be thankful if you could spend some time and involve in this study in your organization,
this will take you not more than 5 minutes to fill. Confidentiality is ensured, as everything being
mentioned in this study is just for academic study and your answers will only be used for the
research purposes.
Against each of the statement below please tick (√) the levels of agreement in each of the items
below with regards to the SHRM practices of your organization where 1=strongly disagree
(SD); 2 = Disagree (D); 3 = Neutral (N); 4 = Agree (A), and 5 = Strongly Agree (SA).
No Items scale
1 2 3 4 5
36
processes.
Training Program
37
promotions and salary increases.
Compensation
Organization.
38
PART 3: OVERAL EMPLOYEE SATISFACTION
Questions related to employee satisfaction and retention. Please indicate your level of
agreement with the statements. Where 1= Highly Dissatisfied, 2= Dissatisfied, 3= Neutral, 4=
Satisfied and 5= highly satisfied
39
16 The chance to try my own methods of doing
the job
Questions related to employee retention. Please indicate your level of agreement with the
statements. Where 1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly
40
THANK YOU, FOR YOUR COOPERATION
መጠይቅ
በ 2021 የትምህርት ዓመት በሲቪል ሰርቪስ ዩኒቨርሲቲ በህዝብ አስተዳደር (Public Management) ማስተር እጩ
ተመራቂ ነኝ፡፡ የመመረቂያ ጥናት እየሰራሁ ሲሆን ጥናቱም በኢትዮጲያ ኮሜርሺያል ባንክ ምስራቅ ዲስትሪክት የሰው ሀይል
አስተዳደር ስራዎች በሰራተኞች የስራ እርካታ ደረጃ እና ከተቋሙ ጋር አብሮ የመቀጠል ላይ ያላቸዉን ተፅዕኖ መዳሰስ ላይ
ያተኩራል፡፡
ውድ ጊዜዎን በመስጠት በዚህ ጥናት ውስጥ በመሳተፎ በቅድሚያ እያመሰገንኩ በዚህ መጠይቅ የሚሰጡት መልስ/ምላሽ ለጥናቱ ዓላማ
ብቻ የሚውል በመሆኑ ምስጢራዊነቱ የተጠበቀ ነው፡፡
ለአትኩሮቶዎ አመሰግናለሁ!
41
1. ፆታ፤ ወንድ ሴት
መጠይቆቹ ከተቋማቸሁ የሰዉ ሀይል አስተዳደር ስራዎች ጋር የሚገናኙ ሲሆን የስምምነት ደረጃዎን (√) ምልክትን በመጠቀም
ያስቀምጡ፡፡ የስምምነት ደረጃዎቹ በ 5 የሊከርት ስኬል የተዘጋጁ ሲሆን 1= በፍፁም አልስማማም 2 = አልስማማም ;
3 = ገለልተኛ ; 4 = እስማማለሁ, and 5 = መጣም እስማማለሁ.
1 2 3 4 5
ስልጠናን በተመለከተ
42
እንዳዳብር ይረዳኛል፡፡
Compensation
43
20 ተቋሙ የሠራተኞች ሽልማት ስርዓት ሲያስቀምጥ የሰራተኞቹን ምኞቶች እና
አስተያየቶች ግምት ውስጥ ያስገባል
Career management
መጠይቆቹ ከስራ እርካታ ጋር የሚገናኙ ሲሆን የእርካታ ደረጃዎን (√) ምልክትን በመጠቀም ያስቀምጡ፡፡
44
1 ሁል ጊዜ በስራዮ ተጠምጄ በመዋሌ
የስምምነት ደረጃዎቹ በ 5 የሊከርት ስኬል የተዘጋጁ ሲሆን 1= በፍፁም አልስማማም 2 = አልስማማም ; 3 = ገለልተኛ ; 4 = እስማማለሁ,
and 5 = መጣም እስማማለሁ.
45
አሁን ባለኝ ስራ ከተቋሙ ጋር አብሮ ለመቆየት ያለኝ ስኬል
ፍላጎት 1 2 3 4 5
ለትብብርዎ አመሰግናለሁ!!
46