ST.

MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES

ASSESSEMENT OF HUMAN RESOURCE MANAGEMENT

PRACTICES
THE CASE OF DASHEN BANK

By
SAMRAWIT G/MARIAM
ID NO: SGS/0247/2011A
Advisor: EphremAssefa (Ph.D)

DECEMBER 2020
SMU
ADDIS ABABA
ASSESSEMENT OF HUMAN RESOURCE MANAGEMENT PRACTICES :THE
CASE OF DASHEN BANK

BY
SAMRAWIT G/MARIAM
ID NO: SGS/0247/2011A
Advisor: EphremAssefa (Ph.D)

A THESIS SUBMITTED TO
ST.MARY’S UNIVERSITY,
SCHOOL OF GRADUATE STUDIES IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

DECEMBER 2020
SMU
ADDIS ABABA, ETHIOPIA
 ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES

Title: ASSESSEMENT OF HUMAN RESOURCE MANAGEMENT

PRACTICES: THE CASE OF DASHEN BANK S.C

BY

Samrawit G/Mariam
ID. No. SGS/0247/2011A

APPROVED BY BOARD OF EXAMINERS

____________________ ____________ ________________

Dean, Graduate Studies Signature Date

Ephrem Assefa (Ph.D) _ _____ 26/01/2021

Research Advisor Signature Date

YibeltalNigussie (Asst. Prof.) _____________

External Examiner Signature Date

Mesfin Tesfaye, Ph.D. 23/01/2021

Internal Examiner Signature Date

 ACKNOWLEDGEMENTS

My sincere thanks go to the almighty God for giving me the courage, inspiration and wisdom
required for the successful accomplishment of this thesis.

I wish to express my deepest gratitude to my advisor, Dr. Ephrem Assefa for his thoughtful
guidance, encouragement and helpful advices during the whole process of research
development to write-up.

My special and deepest gratitude goes to my parents because their persistent love and
unlimited support during my undergraduate studies provided me the foundation for
accomplishing my study.

My special and heartfelt thanks go to my beloved mother W/RO ALEM G/MEDHIN.

Nothing was possible without you my MOM. Her continuous support and unreserved
understanding gave me patency. Heradvice and encouragement was immeasurable that I have
no words to express. I always love you my mom. And my greatest gratitude goes to my
lovely sisters specially Tsega G/Mariam, I am also very thankful to Staffs of Dashen Bank
S.C for their cooperation and genuine response during the survey and Human Resource
Department team for their support.

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 TABLE OF CONTENTS

ACKNOWLEDGEMENTS............................................................................................................. i
TABLE OF CONTENTS ............................................................................................................... ii
LIST OF ABBREVIATION ........................................................................................................... v
LIST OF TABLES ......................................................................................................................... vi
ABSTRACT .................................................................................................................................. vii
UNITONE ....................................................................................................................................... 1
INTRODUCTION .......................................................................................................................... 1
1.1. Background of the Study .................................................................................................................. 1

1.2. Background of the organization ............................................................................................................. 2

1.3. Statement of the Problem ...................................................................................................................... 3

1.4. Research questions ........................................................................................................................... 4

1.5. Objective of the study ............................................................................................................................. 5

1.5.1. General Objective ..................................................................................................................................5

1.5.2 Specific Objectives ..................................................................................................................................5
1.6. Significance of the Study ......................................................................................................................... 5

1.7. The scope of the study ............................................................................................................................ 5

1.8. Definition of key operational terms ....................................................................................................... 6

1.9. Organization of the study ....................................................................................................................... 7

UNIT TWO ..................................................................................................................................... 8

REVIEW OF RELATED LITERATURE .................................................................................... 8
2.1. Human resource management concept ................................................................................................. 8

2.2 HRM Models ............................................................................................................................................. 9

2.2.1 The Harvard Business School HRM Model ....................................................................................... 9

2.2.2 The Michigan Business School Model ...............................................................................................10
2.2.3. The best practice HRM model ..........................................................................................................10
2.3. Human Resource Process ...................................................................................................... 11
2.3.1. HRM Formulation .............................................................................................................................11
2.3.2. HRM Implementation........................................................................................................................13
2.3.3. HRM Evaluation ................................................................................................................................15

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2.4. HRM PRACTICES ................................................................................................................ 17
2.4.1 Recruitment and Selection Practices .................................................................................................17
2.4.2 Training and Development Practices ................................................................................................18
2.4.3. Performance Management Practices................................................................................................19
2.4.4. Reward and Compensation Practices ..............................................................................................20
2.4.5. Employ Relation...................................................................................................................................21
2.5. Review of empirical studies ................................................................................................................. 22

2.6. Conceptual framework of the study ..................................................................................................... 22

CHAPTER THREE ...................................................................................................................... 24

RESEARCH DESIGN AND METHODOLOGY ....................................................................... 24
3.1. Introduction ........................................................................................................................................... 24

3.2. Research Design .................................................................................................................................... 24

3.3. Population, Sample Size and Sampling Techniques ............................................................................. 24

3.3.1. Population of the study ......................................................................................................................24

3.3.2. Sample Size ......................................................................................................................................25
3.3.3.Sampling Technique and Sampling frame ...........................................................................................25
1.5. Source of Data and Data Collection Tools...................................................................................... 26

3.5. Data Analysis Method ........................................................................................................................... 27

1.6. Ethical Considerations .................................................................................................................... 27

3.6. Validity and Reliability .......................................................................................................................... 27

3.6.1Validity ...................................................................................................................................................27
3.6.2Reliability ...............................................................................................................................................27
CHAPTER FOUR ........................................................................................................................ 29
DATA PRESENTATION ANALYSIS AND INTERPRETATION .......................................... 29
4.1.Introduction ............................................................................................................................................ 29

4.2. Demographic Characteristics of the Respondents ............................................................................... 29

4.3.Analysis of Collected Data ..................................................................................................................... 31

4.3.1.The level of training and development practices in the bank ............................................................32

4.3.2. The level of performance appraisal practices in the bank. ...............................................................34
4.3.3. The level of recruitment and selection practices in the bank ...........................................................36
4.3.4. The level of employee relations in the bank ......................................................................................37
4.3.5. The level of reward and compensation system in the bank .............................................................39
4.3.6. The alignment between Strategic HRM and corporate strategy ......................................................41
CHAPTER FIVE ............................................................................................................................ 1

iii
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ................................................. 1
5.2. Introduction ............................................................................................................................................. 1

5.2. Summary .................................................................................................................................................. 1

5.3. Conclusion................................................................................................................................................ 2

5.4. Recommendation .................................................................................................................................... 2

REFERENCES ............................................................................................................................... 1
APPENDIX...................................................................................................................................... 1

iv
 LIST OF ABBREVIATION

 DB: Dashen Bank

 S.C: Share Company
 SPSS: Statistical Package for Social Sciences
 SHRM: Strategic Human Resource Management

v
 LIST OF TABLES
Table 2: sample determination table ......................................................................................................................25
Table 3: Sample Size of each stratum ....................................................................................................................26
Table 4: RELIABILITY Statistics..........................................................................................................................28
Table 5: Frequency Distributions of Demographic Characteristics .......................................................................30
Table 6.: Descriptive Statisticsforthe practice of training and development ........................................................32
Table 7: Descriptive Statistics for the Practice of performance appraisal .............................................................34
Table 8. Descriptive Statistics for the practice of Recruitment and selection ........................................................36
Table 9. Descriptive Statisticsfor the practice of employee relation .....................................................................37
Table 10: Descriptive Statisticsforthe practice ofReward and compensation. .......................................................39
Table 11. Descriptive Statistics for the practice ofSHRM alignment with corporate strategy. ............................41

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 ABSTRACT
The purpose of this study was to assess the practicesof strategic human resource
management at Dashen Bank S.C. pertinent data were gathered from West Addis Ababa
District branches clearly looking on the practices of training and development, performance
appraisal, recruitment and selection, employee relation, reward and compensation and
SHRM alignment with corporate strategy.Questionnaire was distributed

125 employees of the bank out of which 120 usable questionnaires were collected and used
for further analysis.Respondents were asked to reflect their perception towards the human
resource management practices in Dashen bank S.C.

Data processed via SPSS Version 20.0 software and analyzed through descriptive statistics
(percentage, frequency and mean analysis).

The result from the survey shows that majority of the Respondents were not happy by the
HRM practices like training and development,performance appraisal, recruitment and
selection,employeerelation, reward and compensation was not good.

Dashen Bank S.C should focus its attention in adjusting the Recruitment and selection
practice; improvingthe employee relation of staffs and creating good reward and
compensation system, giving adequate training at the right time to the staffbased on marker
assessment is recommended.

Key words: Human resource management

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 UNITONE

INTRODUCTION
1.1. Background of the Study
According to Haslinda (2009a), human resource organizations have greatest assets because
without it everyday activities such as managing public service, communication and dealing
with customers could not be completed. This shows that the employees and the potential they
possess are key drivers of the organizations success. Moreover noted by Haslinda (2009b), in
order to maximize organizational effectiveness and to ensure the employees potential,
capabilities and talents must be developed and updated.

Human resource (HR) can be the most important resource to affect production performance
in organizations (Stone, 2008). The study of how to manage employees is extremely
important for organizations in sustaining their competitive advantage in today‘s business
environment. Thus, human resource management (HRM) plays a very significant role in
influencing employee‘s behavior within organizations (Cowham, 2008).

HRM is a techniques which is used to develop and enhance workers motivations, productivity
and performance. According to Peng (2007), HRM clearly indicated that peoples are key
resources of the firm to be actively managed and developed. In last two decades since late
eighties HRM has becomes even more important and often sports the world to make it
strategic from lowly administrative function. Human resource management has now
increasingly been recognized as a strategic function that together with other crucial functions
that help organizational effectiveness and performance.

Human Resource Management ensures that human talent is used effectively and efficiently to
accomplish organizational goals. All over the world now, Human Resource management is
being affected in all aspects by two major forces; changing workforce demographics and
globalization, and, higher education institutions are not being excluded. It is thus becoming
more crucial for human resources to understand these issues and strategize in order to
contribute directly to organizational strategies. Effective human resource management of any
institution should embrace new recruitment/hiring techniques, talent management strategies,
compensation and benefits practices, equal employment opportunity policies, health, safety
and security programs, employee and labor unions and human resource information systems.
Time has shown that human resources managed through these broad practices can make

1
practical difference in terms of three organizational outcomes productivity, quality of work
life and profit.

Human resource management involves all management decisions and action that affect the
nature of the relationship between the organization and its employees – its human
resources(Beer et al, 1984).HRM comprises a set of policies designed to maximize
organizational integration, employee commitment, flexibility and quality of work(Guest,
1987)

1.2. Background of the organization

Dashen Bank was founded by eleven visionary shareholders and veteran bankers with initial
capital of Birr 14.9 million in September 1995. Upon securing license from the National
Bank of Ethiopia, Dashen opened its doors for service on the 1st of January 1996 with eleven
fully-fledged branches. (http://www.dashenbanksc.com)

Dashen Bank coined its name from the highest peak in Ethiopia, mount Dashen, and aspires
to be unparalleled in banking services. Ras Dashen is Part of the Simien Mountains National
Park, an exotic setting with unique wildlife and breath-taking views on a landscape shaped by
nature and traditional agriculture .(http://www.dashenbanksc.com)

Headquartered in Addis Ababa, the Bank is among the biggest private Banks in Ethiopia. It
operates through a network of more than 400+ Branches, ten dedicated Forex Bureaus, 350+
ATMs and 850 plus Point-of-Sale (POS) terminals spread across the length and breadth of the
nation. It has established correspondent banking relationship with 462 banks covering 70
countries and 170 cities across the world. Wherever business takes customers around the
world, Dashen Bank is already there. (http://www.dashenbanksc.com)

Dashen Bank and its technology partner Moneta Technologies introduced ―Amole‖ Digital
Omni channel payment platform that offers subscribers digital payment capacity and access
to aggregated digital product and service from Retailers, Entertainment Industries, Airtime
Dealers, Bill Payment Points, Airlines, Social Media Players and Third-Party Service
providers.(http://www.dashenbanksc.com)

Vision

To be Best-in-Class Bank in Africa

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Mission

To provide efficient customer-centric banking service using the expertise of inspired

professionals and cutting-edge technology, while creating sustainable value for our
stakeholders

Value

 Customer centricity
 Diversity
 Professionalism
 Teamwork
 Integrity
 Social responsibility

1.3. Statement of the Problem

In the 21st century the organization in the competition to provide efficient and effective
service to their customer to satisfy and enhance their need. To achieve this, the organization
should utilize resources properly. Among the resources, human resource is one of the essence
and foundation for other resources such as financial resource, physical & capital assets and
technological resources. It is the most critical one that makes a difference in an organization‘s
performance (Kassa, et al, 2011). According to Allen &Wright(2007 as cited by Seidu2011)
people and the management of people are increasingly seen as key elements of competitive
advantage. The extent to which a workforce is managed effectively is a critical element in
improving and sustaining organizational performance. According to Chandra (2009), HRM
has become even more important and often supports the word strategy to make it; strategic
HRM. From a lowly administrative support function, HRM has now increasingly been
recognized as a strategic function that together with other crucial functions such as finance
and marketing, helps accomplish organizational effectiveness and finance performance.
Similarly, Dyer and Reeves (1995,as cited in Siedu2011) shows the importance of people
management as a critical source of competitive advantage that has been highlighted because
of the increasingly competitive global marketplace facing organizations and the effortlessness
with which other sources of competitive advantage such as technology, manufacturing
processes, structure and business strategy can easily be acquired or imitated. Organizations

3
are therefore seeking to understand how their human resources can be managed for
sustainable competitive advantage.

The study aims to investigate the Human resource management practice in the case of Dashen
bank. The organization has many goals, in order to achieve the objectives of the bank it has to
investigate and give more emphasize to its resource particularly its human resource
management. According to Haslinda (2009a), Human resource isgreatestassetbecause without
it everyday activities such as managing public service, communication and dealing with
customers could not be completed. According to Wilkinson & Holden (2001), the now
extensive literature on human resource management differentiates between human resource
management and human resource strategy, although the former would suggest the day-to-day
implementation of policy while the latter is a long-term perspective‖. HRM, as a long-term
strategy plays an important role in creating and developing an organization's competitive
advantage in the corporate world. Adding value is another interest in HRM, as employees add
value to their organizations with performance improvement. Richard &Johnson(2001) stated
that in order to improve effectiveness and efficiency HR managers must concern themselves
with activities that affect the rank and file in their organizations.Having referred to several
researchers‘ and HRM is not understood as only working for managers or employees, rather
it is a managerial function for creating the organization's competitive advantage by
developing people‘s which in turn benefits the organization.

Without clearly defined and described empirical results in Ethiopian banking sector context,
scholars could not adequately validate the applicability and relevance of such human resource
management strategies and practices to provide useful suggestions to practitioners. There is,
therefore, a great need for additional evidence to support the strategic HRM practices from
different sectors and contexts. Based on this background the study is conducted to investigate
the practices of strategic human resource management of Dashen bank in Ethiopia.

1.4. Research questions

1. How do Dashen bank recruit and select employees fair and transparent?
2. How training and development practices are perceived by employees?
3. What is the nature of performance appraisal practices in the bank?
4. What is the perception of employees towards the bank‘ reward and compensation
practices?

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 5. How do managements support to encourage employee‘s relations?
6. How do HRM strategies align with corporate business strategies?
1.5. Objective of the study
1.5.1. General Objective
The general objective of the study is to assess human resource management practices in
Dashen bank.

1.5.2 Specific Objectives

The specific objectives of the study include:

1. To assess the overall Recruitment and Selection practices in Dashen bank.

2. To assess the overall Training and Development practices in Dashen bank.

3. To identify the overall Performance Appraisal practices in Dashen bank.

4. To examine the overall Reward and Compensation practices in Dashen bank.

5. To assess the overall Employee Relations practices in Dashen bank.

6. To assess HRM practices integration with corporate strategy in Dashen bank.

1.6. Significance of the Study

The research finding will help the bank‘s policy formulating bodies and decision makers to
give due emphasis to HRM and to advice different mechanisms in order to scale up and
continuously upgrade the employees expertise to improve organizations performance.

Moreover, the study can be used as a guideline to address HRMand improve the level of
understanding in HRM practices and other organizations which have similar problems can
also extrapolate its findings. Italso serves as a reference for further researchers who have an
interest in this area and it helps the researcher to acquire knowledge and skills.

1.7. The scope of the study

Topic wise, the study is delimited to assess human resource management practices,
specifically recruitment and selection, training and development, performance, appraisal
employee relation, and compensation and reward, system.

In terms of study area, the study is delimited to a single financial institution named Dashen
Bank Western Addis Ababadistrict. These human resource activities have an important role
compared to other HR activities. Hence, major focus is given to these selected human
resource management practices.

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1.8. Definition of key operational terms

 Recruitment:
 Selection:
 Training:
 Development:
 Performance appraisal:
 Reward

―Recruitment is the process of locating individuals who might join and encouraging them
to apply for existing or anticipated job openings‖ (Dessler, 2007). Recruitment is the
development of a pool of job candidates in accordance with the human resource plan. Further
it can be explained as the process of locating, identifying and attracting capable applicants.
During this process, efforts are made to inform the applicants fully about the qualifications
required to perform the job and the career opportunities the organization can offer its
employees. Compensation

Selection

Is the process of choosing individuals who have relevant qualification to fill existing or
projected job openings (Dessler, 2007). It is the process of assessing candidates and
appointing a post holder to ensure that the most appropriate candidates are hired. Successful
employee hiring decisions are the foundation of any organizations‘ success

Training and development

Is defined as activities within organizations, and managers have limited control over these
activities. Training and development as a learning opportunity provides employees with an
in-depth understanding of their organization's value and performance standard
(Antonacopoulou, 2000). General training is understood by its applicability to most
employers, and specific training is understood as the attainment of KSAs valuable to one
employer (Garavan, 1997). As supported by the literature, training and development is an
essential function in human resource management; and it plays a key role in giving
employees an opportunity to improve their performance, and to gather more understanding of
their organization's expectations and future directions. The literature leads to the sub-question

6
requesting information from the respondents regarding HRM practices such as training and
development.

Performance appraisal

Lawler and McDemott (2003) suggested that it is very difficult to manage human capital
without a system that measures performance capability. Companies need a performance
management system that can identify the capabilities of its human capital so that can identify
the capabilities of its human capital so that they can effectively staff projects, implement
strategies initiative and manage development of their work force.

Compensation and Reward

Compensation system are designed to attract, retain and motivate employees while complying
with all legal rule and regulations. Compensation refers not only to extrinsic rewards such as
salary and benefits but also to intrinsic rewards such as achieving personal goals. Autonomy
and more challenging job opportunities (carrell et al ...1995).Job evaluation is used to
evaluate jobs systematically and to assign them to pay grades. Standard method of evaluation
include ranking, classification, point and factor compensation.

1.9. Organization of the study

This study is organized in five chapters. The first chapter deals with introduction and includes
background of the study, statement of the problem, research question, objective of the study,
significance of the study, scope and definition of key terms and organization of the study.
The second chapter reviews theoretical and empirical in relation to human resource
management practices. The third chapter discusses the research methodology including
research design, sampling and sample size determination, data collection instruments,
research respondents, methods of data analyses and ethical considerations. The fourth chapter
presents and discusses the collected data. The fifth chapter deals with summary, conclusion
and recommendation based on the research findings.

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UNIT TWO

REVIEW OF RELATED LITERATURE

In the previous chapter, a brief overview of the components in the research was given. The
purpose of this chapter is to present an understandable explanation of human resource
concepts from various sources to support the research with related theories .The relevant
HRM concepts can explain benefits of undertaking effective HRM practices in organizations.
The chapter gives an overview of HRM model to indicate the importance of HRM in
managing people in any organization. HR practices are explained in order to make a clear
distinction of elements which play main roles in HRM. The HRM process including HRM
formulation, HRM implementation, and HRM evaluation/auditing/monitoring is discussed to
present a logical frame work for HRM, and explains how HRM practices.

2.1. Human resource management concept

Because this section has been devoted to HRM definition, it is logical to start with the
Definitions given by the founding fathers of the human resource management school, namely
Becker (2012).

Beer et al. (1984) defined HRM as involving all those management decisions and actions that
affect the nature of the relationship between the organization and the employee. Important to
note about this definition is the inclusion of the phrase "action'. This has made Beer and his
colleagues the first to declare that conducting effective HRM practices is the responsibility of
line managers (Armstrong, 2008).

A particular definition of HRM which this study has found very interesting, is the one
provided by Robinson (2009) when he defined HRM as "those decisions and actions which
concern the management of employees at all levels in the business and which are related to
the implementation of strategies directed towards creating and sustaining competitive
advantage". This definition of HRM is interesting because it encompasses the main parts
involved in the relationship between HRM practices and aspects of organizational
performance. We can see that this definition stipulates the availability of HRM practices,
performance standards or strategies, and a way of linking the two issues together in order to
have these combinations work. To give further elaboration on the comprehensiveness and

8
clarity of this definition, hospital management, for instance, can develop and implement
comprehensive HRM practices but it cannot claim that organizational performance will
improve without having performance strategies or standards established and an approach to
manage these two issues together.

HRM is defined as ―planning, organizing, directing, controlling of procurement,

development, compensation, integration, maintenance and separation of human resources to
the end that individual, organizational and social objectives are achieved.‖

―HRM is a distinctive approach to employment management which seeks to achieve

competitive advantage through the strategic deployment of a highly committed and capable
workforce, using an array of cultural, structural and personnel techniques.‖ Storey (2009: 5)

Although there is no consensus on the definition or the characteristics of HRM it can be seen
from the above definitions that HRM is a combination of people-oriented management
practices that views employees as assets, not costs; and its main aim is to create and maintain
a skillful and committed workforce to gain competitive advantage.

The differences in the interpretation of HRM have created two different schools of thought:
soft and hard variants of HRM. Soft and hard HRM are also often defined as two main
models of HRM. Soft HRM focuses on employee training, development, commitment and
participation. It is used to define HR functions aimed to develop motivation, quality and
commitment of employees; hard HRM, on the other hand, concentrates mostly on strategy
where human resources are used to achieve organizational goals. It is also associated with
cost control and head count strategies, especially in business processes like downsizing,
lowering the wages, shortening comfort breaks, etc. (Storey, 2009).

2.2HRM Models
This section reviews some of the HRM models which have been recognized as sources in
adopting HRM practices which could be linked with aspects of organizational performance.

1. The Harvard Business School HRM Model;

2. The Michigan Business School HRM Model; and
3. The Best Practice HRM Model

2.2.1 The Harvard Business School HRM Model

The Harvard school suggested that HRM had two characteristic features-

9
  Line Managers accept more responsibility for ensuring the alignment of competitive
strategy and personal policies
 Personnel has the mission of setting policies that govern how personnel activities are
developed and implemented in ways that make them.

It emphasizes on the importance of proper management of the human assets of an

organization to promote harmony and hence promote the output. The Harvard model of HRM
sees employees as resources. With respect to how these HRM models view the management
of human resources in organizational, each has its own view. Starting with the Harvard
Business School Model and the Michigan Business School Model, the core theme of the first
is to use the talents of employees to enhance aspects of organizational performance. The
latter uses employees to achieve organizational goals. There is a significant difference
between the two views. For example the Harvard Business School Model stresses the human
aspect of human resource Management while the Michigan Business School is considered as
instrumental in the implementation of organizational performance. Thus, the Harvard
Business School Model is widely recognized as drawing its academic lineage from the school
of human relations while

2.2.2The Michigan Business School Model

Seems to follow the line of the Scientific Management School and other approaches which
ignore the importance of questions about culture and non-economic factors in the
management of human resources Pfeffer (1998). He pointed out that,

"The goal of control human resource systems is to reduce direct labor costs, to enforce
employees to comply with specified rules and procedures and to base employee rewards on
some measurable output criteria. In contrast, the goal of the commitment human resource
systems is to shape desired employee behavior and attitudes by forging psychological links
between organizational and employee needs".

2.2.3. The best practice HRM model

The best practice tool of HRM is based on Universalism. The assumption here is that asset of
practices aimed at high commitment or high performance will benefit all organizations
regardless of context. The elements of best practices identified by Pfeffer (1998) are now
widely recognized, if not widely accepted: Employment security/Job security; Sophisticated
selection / Selective hiring; Team working and Decentralization; High Wages linked to

10
Organization performance; Extensive training; Narrow status differentials and
Communication and Employee involvement

2.3. Human Resource Process

In this section, the HRM process is discussed in three stages human resource management
formulation, HRM implementation, and HRM evaluation/auditing/monitoring. The human
resource management process becomes strategic in influencing organizational decision
making.

Utilizing human resource management practices and policy will determine the formulation
and implementation of the human resource management process, and the control perspective
is also defined by human resource management practices in order to regulate employees‘
behavior within organizations as well as avoiding internal conflicts (Andolsek&Stebe, 2005).

2.3.1. HRM Formulation

The design of human resource management human resource management policy is an
initially important step to develop HRM process in organizations. To design an effective
human resource management policy, human resource management needs to create the
conditions which authorize the utilization of human capital. Human resource management
should integrate the designed policy with the organization's business strategy, and that is the
way to align human resource management policy and the organization's goal coherently
(Heijltjes, 2000). HRM policy can be the central role in setting business performance in
organizations, and it is an important stage in formulating an effective human resource
management system for employees to comply with and operate by in order to complete their
tasks in the appropriate way (Chandrakumara& Sparrow, 2004). Another sub-question
requires the respondents‘ views on HR strategy in formulating an effective HRM process.
Literature supports this in saying that by emphasizing the importance of formulating human
resource management effectively in organizations. According to Godard (2009), there are
four different types of HRM practices: traditional human resource management practices,
new human resource management practices, contingent pay schemes, and alternative work
practices. Traditional human resource management practices focus on maintaining a
competent and stable work force and minimizing problems such as turnover, absenteeism,
and strikes (Godard, 2009). New human resource management practices focus on developing
a highly committed and performance-oriented organization, and the purpose of new human
resource management practices includes values-based selection, team skill training,

11
performance appraisals, career development, and continuous learning (Godard, 2009).
Contingent pay schemes focus more attention on employee self-interest rather than
commitment; thus, they are considered as ‗human resource management best practices‘
(Godard, 2009). Alternative work practices are ‗flexible‘ work forms in organizations,
including autonomous or semi-autonomous teamwork, crosstraining, and job rotation
(Godard, 2009). Specific human resource management human resource management
practices are also considered in formulating human resource management in organizations.
Specific HRM practices are used to enhance employee activity and performance; as well as
selective staffing, training and providing equitable rewards (Rodwell&Teo, 2004).

The concept of integration does not only focus on individual human resource management
policies and practices; it focuses on a set of human resource management practices in
organizations that are integrated and consistent with an organization's business development
(Bjorkman&Lervik, 2007). Alignment of human resource management practices with
specific organizational competencies is important for organizations to sustain their
competitive advantage (Myloni, Harzing&Mirza, 2007). There is a positive relationship
between high commitment or high performance of HRM practices, and organizational
performance (Haynes & Fryer, 2000). Consequently, HRM practices have an essential
linkage with organizational performance and outcome as well as the quality of an
organization's goal achievement. This gave rise to a subquestion designed to analyze human
resource management practices. Associated with the organization's development. Paul
&Anantharaman (2004) state that HRM practices have a significant positive relationship with
organizational commitment, and organizational commitment has a positive influence on
employee turnover rate. Organizations often operate their human resource management
practices through employee skills, motivation, and job design, resulting in their employee‘s
improved productivity, creativity, and discretionary efforts (Wright & Kehoe, 2008). There
are three common dimensions in describing aligning human resource management practices
in different departments within an organization in order to improve employee commitment
and performance quality. The first is human resource management practices intended to
improve employees‘ KSAs to match the organization's business strategy and requirements.
The second is HRM practices which motivate employee behavior in order to create an
effective and efficient team performance, especially in aligning different employees from
various departments. Thirdly, HRM practices provide opportunities for employees to
participate in decision making as a way of making employees become more involved in their

12
organizations and contribute their commitment and loyalty (Wright & Kehoe, 2008). Thus,
human resource management practices positively relate to organizational commitment and
negatively relate to employee turnover (Gardner, Moynihan & Wright, 2007). HR strategy is
formulated to improve the level of an organization's performance, and HR strategy is also
important in improving the organization's business development and consistency. This means
that integrating HR and organizational strategies can help ensure the developing direction in
organizations (Zhao, 2008). Thus, human resource management is not just a procedural
management knowledge or function; it is considered as a weapon that integrates people from
different departments, and motivates and monitors them to contribute their efforts in order to
achieve their organization's goals. From the above, it can be seen that formulating a positive
human resource management system means designing an effective human resource
management policy to conduct employees‘ behavior and attitudes, and utilizing human
resource management practices to align and integrate people of various competencies from
different departments within an organization in such a way as they align with the
organization's goals and expectations.

2.3.2. HRM Implementation

HRM implementation refers to the varied involvement of managers within their
organizations conducting and applying the designed HRM policy and practices in their
working environment in order to manage their employees and lead them to achieve their
organization's expectations (Houtzagers, 1998). HRM implementation also has an important
relationship with total quality management (TQM), and TQM requires the motivation of all
employees within organizations to achieve both the organization's goals and customer
satisfaction (Yang, 2006). The involvement of managers provides an opportunity for non-HR
managers (such as line managers, production supervisors, marketing managers, and financial
managers) to improve their relationships with their employees as well as achieving a
harmonious working environment (Birdi et al., 2008). This section focuses on the sub-
question of responsible involvement for developing and implementing HRM practices.

Most line managers have limited HR or HR-related knowledge, but line managers need
human resource management knowledge in their interaction with their employees (Perry &
Kulik,2008). From the literature review, it can be seen that implementing the human resource
management process improves managers‘ HR knowledge in both decision making, and
employee empowerment. HR activities to be performed by line managers, including design of

13
training programmes, HR budgeting, provision of coaching and mentoring initiatives, and
creating positive working conditions (Watson & Maxwell, 2007).

Although line managers or production managers are dealing with quality of products or
services, employees‘ working attitudes will strongly affect their performance. Employee
satisfaction in organizations implementing human resource management practices such as
staff promotion, motivation, and training and development will definitely influence customer
satisfaction which is also related to employee performance (Hay, 2002). Moreover,
involvement of managers, especially line managers, in implementing human resource
management activities will improve the manager‘s skills and knowledge of dealing with
employee issues over and above than the technical skills and knowledge in their own working
areas (McGuire, Stoner &Mylona, 2008). In modern organizational design, human resource
management involves line managers in implementing HRM policy and practices, because line
managers can integrate their knowledge and experience in a way that benefits the entire
organization (Zupan&Kase, 2007).

Involvement of senior managers is also importantly relevant to implement the human

resource management process. Senior managers are mostly looking at their organization's
strategic force and development of organizational effectiveness; thus senior managers play
their roles as long term planners, and need effective communication techniques to
communicate with their employees to make them understand what their managers want them
to achieve for their organizations (Maxwell &Farquharson, 2008).

The best organizational strategy needs the best people to implement it; whether they are
managers or employees, and people can drive the success of organizations by their behavior
(Chien, 2004). From this perspective, implementing an effective human resource
management process is an important way to create an organization's competitive advantage.
In regards dealing with people, communication is the main tool between managers and
employees; and communication skills can be defined as managerial knowledge to build good
relationships with their employees (Desmarais, 2008). Organizational performance is affected
positively by managers‘ and employees‘ behavior effectively communicating their ideas and
problems (Jorgensen, Laugen& Boer,2007).

14
From reviewing the above, it can be seen that people are a strongly competitive advantage in
organizations, and it is also difficult to sustain and develop this competitive advantage for an
organization's future improvement. For HR managers, communication is a fundamental
technique in making every employee valuable for their organization and in implementing the
HRM process, communication between managers and employees can provide a straight
pathway towards giving accurate direction and guidelines to satisfy the entire organization
(Gowen&Tallon, 2003).

From a HRM point of view, implementing communication well can reduce conflict between
managers and employees in the work place as well as improving their understanding and
interaction in carrying out their tasks (Cheng, Dainty & Moore, 2007). As with the previous
discussion of integration of HRM practices and organizational business strategies in
formulating the HRM system, communication with employees is a functional way to help
employees understand their organization's developing direction and expectations (Cakar,
Bititci&MacBryde, 2003). Not only are HR managers responsible for developing and
implementing an organization's human resource management practices and policies; as
managers they need the ‗HR‘ capability of managing their relationships with their employees.
HR managers are the professionals who design and illustrate the organization's human
resource management practices and policies, and they play the role of leading other managers
to implement HRM practices and policies to employees as well.

2.3.3. HRM Evaluation

HRM evaluation and auditing relate to an organization's performance and goal attainment,
employee attitudes, reputation, assessment of human resource management practices, and
activity analysis (Baruch, 1997). The evaluation of human resource management
effectiveness looks at the ‗fit‘ of human resource management activities with an
organization's business strategy, and the integration of human resource management , is the
‗fit‘ between human resource management policy and practices and the organization's
strategic direction (Gibb, 2000). HRM evaluation has the purpose of examining employees‘
actions and behaviors, against their organization's requirements (Fleetwood &Hesketh, 2008).
Thus human resource management contributes to creating an organization's competitive
advantage, and human resource management evaluation properly configured gives a
competitive strategy through using, motivating and monitoring employee performance to
accomplish the organization's goals (Wang &Shyu, 2008).

15
The sub-question that covers the analysis and evaluating of human resource management
practices in the human resource management process is supported by the literature in the
section. Employee recognition is an important factor in human resource management
evaluation. Performance-based compensation is a dominant human resource management
practice, and it is used in order to evaluate employees‘ contribution to their organizations
(Vlachos, 2008). Employees‘ recognition is mostly relevant to their quality of performance;
human resource management playing the role of leading and monitoring employee
performance as well as analyzing the results to make decisions (Boselie&Wiele, 2002).
Employee recognition is also a tool to encourage and motivate the employee‘s intention to
achieve a higher quality of performance‘ employees believe that there is a relationship
existing between their efforts and their final performance (Vlachos, 2008).

The well-recognized employees will be more confident for their further tasks and they will
put more efforts into their tasks to achieve more success and recognition from their
organizations (Taylor, Li, Shi &Borman, 2008). Employee recognition can also be defined as
an instrument to create a positively competitive environment within organizations (Budhwar,
2000). For instance, the employee is recognized by his or her organization with money
reward or any other nonmonetary compensation, and this stimulates other employees‘
willingness to put forth more effort in order to also achieve the organization's recognition. It
can therefore be seen that employee satisfaction is an effective way to evaluate whether an
organization's human resource management practices are implemented profitably.

In evaluating the human resource management process, it can be seen that monitoring is both
important, and sometimes neglected, in organizations. Monitoring is consistent with
behavioral perspectives and integrated with HRM practices in order to control employees‘
actions by setting the organizational constitution and policies (Liao, 2005). HRM evaluation
also obtains employee perspectives regarding their organization's rules and policy, and
communicates with employees regarding the application of organizational rules and policy
(Drumm, 1999). HRM monitoring is the way to control employees‘ behavior under an
organization's designed constitution, to make an effective and harmonious working
environment (Huang, 2001).

HRM evaluation has another important factor – appraisal. Appraisal, especially performance
appraisal, is the managers‘ observation of employees‘ behavior when they are carrying out

16
their job (Liao, 2005). Performance appraisal is when managers give their feedback to
employees‘ about their tasks; therefore feedback is the most important source of evaluation
showing whether an employee‘s contribution is recognized by their organization (Verreault&
Hyland, 2005). HRM evaluation/auditing/monitoring is to reduce an organization's strategic
risk and create more value by restricting and limiting employee behavior under organizational
rules and policy (Hyland &Verreault, 2003).

2.4. HRM PRACTICES

Successful organizations are those which value, develop and nurture their human capital to
achieve their organizational goals and objectives. They try to bring out the best in people by
creating a congenial environment where their employees can continue to grow, improve their
professional skills, exercise their creativity and derive greater job satisfaction.

2.4.1 Recruitment and Selection Practices

―Recruitment is the process of locating individuals who might join and encouraging them to
apply for existing or anticipated job openings‖ (Dessler, 2007). Recruitment is the
development of a pool of job candidates in accordance with the human resource plan. Further
it can be explained as the process of locating, identifying and attracting capable applicants.
During this process, efforts are made to inform the applicants fully about the qualifications
required to perform the job and the career opportunities the organization can offer its
employees.

Selection is the process of choosing individuals who have relevant qualification to fill
existing or projected job openings (Dessler, 2007). It is the process of assessing candidates
and appointing a post holder to ensure that the most appropriate candidates are hired.
Successful employee hiring decisions are the foundation of any organizations‘ success. Most
managers and senior executives would agree that the task of hiring can be one of the
responsibilities with the impact in their organization. There is no doubt; hiring mistakes are
quite costly to the organizations, regardless of the size of the organization. Hiring mistakes
cause disruption in the workplace. People who do not perform up to desired standard cause a
drain on other staff resources, making that staff far less productive, costing real dollars. In
addition, management must devote time to attempt corrective actions. This takes away time
from other duties for managers.

To sustain the high level of competitive advantage a firm requires talented and skilled
workers Huselid (1995). He has found that organizational productivity and high performance

17
depends on the selection of the right person, which is also a pathway to reduced turnover
more so, they identified a positive link between hiring a manager and employees, and the
creation of the right culture for organizational growth. Selection is the process of choosing a
candidate from a group of applicants who best meets the selection criteria for a particular
position. In this process the right person chosen for the requisite qualifications and
knowledge is placed in the appropriate job position to decrease the costs and maximum the
profits by means of their merit and talent. He also identified that there is a positive and
significant relationship among human resource management practices and staffing
(recruitment source, pre-selection test, IQ test, structured interview and biographical
information blank of the organization) for improving financial or profit performance. As a
result, organizations are encouraged to attract qualified candidate for survival and growth
thus for improving financial or profit performance.

2.4.2 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.

The purpose of training and management development programs is to improve employee

capabilities and organizational capabilities. The knowledge and skills of its employees, the
investment is returned in the form of more Productive and effective employees. Training and
development programs may be focused on individual performance or team performance. The
creation and implementation of training and management development programs should be
based on training and management.

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 intoaccount 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

18
motivated to 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).

Investing in human resources through training and management development improves

individual employee capabilities and organizational capabilities. But investing in people is
not the same as investing in equipment or machinery. When an organization invests in new
computers, for example, the cost can be depreciated over multiple years; but when an
organization invests in management development, it is a cost for that year and cannot be
depreciated. So from an accounting point of view, dollar for dollar, it is better to invest in the
equipment that employees use than it is to invest in the employees using that equipment. If an
organization invests in new equipment, it is expected that the equipment will pay for itself in
faster production, less waste, lower maintenance costs, and so forth. But if an organization
invests in improving the knowledge and skills of its employees, there should be some benefit
to the organizations (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.

2.4.3. Performance Management Practices

Effective performance management system enables the organization to objectively and
systemically rate employee performance while providing tool necessary to take that
performance level and equate it to compensation actions. The core of any organization is its
staff. How effectively organization maintains a quality of employees is linked to its ability to

19
manage its staff and recognize the contribution of each player. Employees have always
expressed the desire for open feedback regarding their performance. More and more
companies embracing the pay for the pay concept and it‘s the compensation. A well-executed
performance plan enables the organization to achieve critical goals. Performance critical
goals are as follows; recognize the efforts and contribution of the current staff, reward staff
with compensation directly linked to performance, motivate staff and improve performance,
orient staff toward goal achievement retain key employees through the use of competitive
compensation program, and to attract quality employees with effective performance
management system (Dessler, 2007).

A performance evaluation tool is utilized for this purpose. Its‘ key element is the
establishment of individual performance objectives at the beginning of each. An employee
performance may be evaluated into four levels of performance as follows; for the purpose of
determining personal actions, outstanding performance sustainability and consistently above
required standard for the position, competent, constantly meets objectives and produces the
desired results that are expected for a qualified employee in this position, performance meets
required standard for the position. Consideration must be given to probationary status
pending improvement performance unsatisfactory; employee‘s performance does not meet
objectives. Performance sustainability and consistently below required standards for the
position, if significant improvement is not made, termination will follow.

The performance evaluation is conducted between employee and his or her supervisor, in
which the supervisor evaluates the performance of the employee. The supervisor provides the
feedback to the employee regarding his or her performance and areas of concern. The
evaluated performance during the evaluation will be used to justifying personnel actions
relative to promotion, transfer, and salary adjustments. It is the intent of the organization to
make salary increases and related personnel actions based on an employee‘s evaluated
performance in his or her assigned position, and the individual‘s overall contribution.

2.4.4. Reward and Compensation Practices

Reward systems practices have become popular in order to align reward systems with the
important changes that are occurring in the way organizations are designed and managed
Lawler et al., (1992). One of important attributes of work organization is the ability to give
reward to their members. Pay, promotions, fringe benefits, and status symbols are perhaps the
25 most important rewards. Because these rewards are important, the ways they are

20
distributed have a profound effect on the quality of work life as well as on the effectiveness
of organization. Organization typically rely to do four things namely; Motivate employees to
perform effectively, motivate employee to join the organization, Motivate employee to come
to work, and Motivate individuals by indicating their position in the organization structure.
There are several principles for setting up an effective reward system in an organization; Give
value to reward system, employees must have preference for the type of rewards being
offered, many employees prefer cash reward and plaques. Some employees like to see their
name in company newsletter, others like the public recognition surrounding award ceremony,
make the reward system simple to understand, and elaborate procedures for evaluating
performance, filling out forms, and review by several levels of management lead to
conclusion (Lewis, 2003).

2.4.5. Employ Relation

The scope of employee relations covers, institutional relations, employeesafety, health,
employment security, working condition and assistance with non-work problems.
Government law regulates employee safety. Apart from fulfilling the obligations spelled out
under law, employee's organized safety awareness programs to stress upon the the
organizations commitment to safety. The components of program are hazard identification,
communication and education to those t risk and reinforcement of safe practices. Employee
health is taken care by employee assistance programs and employee wellness programs.
Disciplinary procedures, compressed workweek, flexi time, job sharing and part-time work
fall under the gamut of employment security and working conditions. To help the employees
to manage their work and private life both, companies have started family friendly policies,
which include childcare, elder care and family leave policy. The purpose of all these
programs is to ensure the workforce's economy and psychological well-beingThese programs
help in enhancing productivity, reducing turnover and making the organization more
competitive. Therefore, employee relations are meant to cultivate a sense of belonging to and
oneness with the organization.

21
2.5. Review of empirical studies
This section reviews related studies conducted on human resource management practices
faced by firms to implement these practices.According to Noe (2008) staffing strategy refers
to a company‘s decision regarding where to find employees, how to select them and the mix
of employee skills and statuses (temporary, full time etc.). Researchers and scholars argue
that excellent management of people is crucial to maintain a foothold in the market.
According to Hitt(2006), people should be placed in positions that fit them best, this is based
on believe that failure to properly allocate employees would result in forfeiture of the
company‘s competitive position. Successful firms have ability and willingness to dismiss
employees who engage in counterproductive behavior. This ensures that productive
employees are not made miserable by supervisors or coworkers who engage in unproductive,
disruptive or dangerous behavior. Thus as explained by Noe (2008) job satisfaction and
retention are significantly related to employee recruitment and selection practices of the given
organization.Business strategy has a major impact on the type and amount of training that
occurs and whether resources (money, trainers‘ time and program development) should be
devoted to training. Also strategy influences the type, level and mix of skills needed in the
company (Noe, 2008).
According to Hitt, (2006) human resource managers need to be well trained to ensure proper
staffing skills, change management, counseling, project management and organizational
design.The overall reward system needs to be multifaceted. Because all people are different,
managers must provide a range of rewards—pay, time off, recognition, or promotion
(Armstrong, 2008). Rewards demonstrate to employees that their behavior is appropriate and
should be repeated. Different scholars have spoken strongly on the use of team incentives, for
example, Dessler (2007) says that firms that rely on teams to manage their work must
develop incentive plans that encourage teamwork and focus team member‘s attention on
performance.

2.6. Conceptual framework of the study

The present conceptual framework was developed with objective to assess the overall SHRM
practices of private bank of Dashen in Ethiopia based on six different direction such as
recruitment and selection; training and development; performance appraisal; rewardand
compensation and employee relations. The stated dimensions should be linked to the strategy
of the organization to achieve the intended or desired short-and long-term Goals.

22
 Recruitment Integration
and Selection Business
Strategy
Employee
Relation
HRM Practices
Training and
Development

Resource Based View

Reward and
Compensation
Human Resource
Skill, Knowledge and
Performance
Appraisal
attitude

[Source: Charles Greer, 2012]

23
CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1. Introduction
In this chapter the researcher tried to explain the research design, source of data and data
collection tools, sampling and sampling techniques, instrument and methods and procedures
of data analysis.

3.2. Research Design

In assessing the practices human resource management at Dashen Bank S.C. a descriptive
research design was used Descriptive research design helps provide answers to the questions
of who, what, when, where and how associated with a particular research problem, and used
to obtain information concerning the status of the phenomena; moreover, it addresses large
number of people and merely describes what people say, think, and do.Descriptive studies are
aimed at finding out "what is," so observational and survey methods are frequently used to
collect descriptive data (Borg and Gall, 1989).
This study used combination of both the qualitative and quantitative research Approch
qualitative and quantitative approaches are used to provide an in-depth look at context,
processes, and interactions and make precise measurement. In this mixed method the
presentation of the results can be convincing and powerful (Marguerit, Dean and Katherine,
2006).

3.3. Population, Sample Size and Sampling Techniques

In most cases it is impracticable for a researcher to collect data from the entire population that
it is necessary to take sample through appropriate sampling techniques. A good sampling
design is achieved by representative sample, which also results in small sampling error,
viable in the context of available fund and result of sample study can be applied to the total
population (Kothari:1985).

3.3.1. Population of the study

The total population of the study was 514 clerical and line managementemployeesofDashen
Bank S.C whowork at West Addis Ababa Distract. The researcher excluded employees of

24
non-clerical posts like janitors andsecurities who are outsourced from other organization. And
also employees who have less than one year service were excluded from target population.

3.3.2. Sample Size

The researcher used the sample determination table to determine the representative sample
size which was developed by Carvalho (1984), as referred in NareshMalhotra (2007). Since
the target population size is 514, it is categorized inthe fifth row wherethe lowest sample size
is 32, the medium sample size 80 and the highest sample sizeis 125. In order to be more
representative the higher sample size of 125 was taken. The following table shows the
breakdown of population range.

TABLE 1: SAMPLE DETERMINATION TABLE

Sample Size
Population size
Low Medium High

51-90 5 13 20
91-150 8 20 32
151-280 13 32 50
281-500 20 50 80
501-1,200 32 80 125
1,201-3,200 50 125 200
3,201-10,000 80 200 315
10,001-35,000 125 315 500
35,001-150,000 200 500 800

(source: MalhortaNaresh, Marketing Research an applied approach, 2007)

3.3.3. Sampling Technique and Sampling frame

The researcher used proportionate stratified sampling technique to select samples from each
branch of the total population, and distribute questionnaire and collect the required
information from the samples determined.This technique was preferred because it assists in
minimizing bias when dealing with the population. With this technique, the sampling frame
was organized into relatively homogeneous groups (strata) before selecting elements for the

25
sample. According to Janet (2006), this step increases the probability that the final sample
would be representative in terms of the stratified groups. The strata would be branches
located in West Addis Ababa District. According to Catherine Dawson (2009), the correct
sample size in a study is dependent on the nature of the population and the purpose of the
study. Although there are no general rules, the sample size usually depends on the population
to be sampled.

The total sample frame or population size was 514 employees and sample sizes have been
125.The study has been covered only clerical and line management permanent employee
those who have above one year experience in the Bank.

There are four grading system for dividing branches on West Addis Ababa Distract of
Dashen Bank S.C namely Grade I Branch, Grade II Branch, Grade III Branch and Grade IV
Branch. The study used the Branches as a stratum. Then to estimate the number of samples
for each stratum multiply number of staffs in each strata by sample size and divided by the
target population.

Sample frame: Sample size = Number of staffs in each strata X 125

Total population
TABLE 2: SAMPLE S IZE OF EACH STRATUM
Type Total Number of Staff Sample Size

Grade I Branch 334 80

Grade II Branch 70 17
Grade III Branch 30 7
Grade IV Branch 80 19
Total 514 125
Source: Dashen Bank West Addis Ababa Distract

1.4. Source of Data and Data Collection Tools

The study employed both primary and secondary sources of data collection. In order to
realizethe target, the study uses well-designed questionnaire and observation as best
instrument. The questionnaire was adopted from different sources which were found to be
appropriate for the study. Thequestionnaire method as instrument of data collection was used

26
because it provides widercoverage to the sample.Thequestionnaire contained closed ended
questions with 5 Likert Scale from ―Strongly Disagree‖ =1to ―Strongly Agree‖ =5 and
Employees of Dashen Bank, in West AddisAbaba district brancheswere chosen to fill the
questionnaire
Secondary data was collected From the Banks human resources policy and procedures,
annual reports, published and unpublished researchesabout the study area, books and journals
from library and internet.

3.5. Data Analysis Method

Data from questionnaires was processed via SPSS software (statistical package for social
science) version 20.0 and analyzed through descriptive statics (percentage, frequency,mean
and standard deviation)he descriptive statistics(frequency distribution, percentile, minimum
and maximum) helped the researcher to examine the general level of human resource
management practice.

1.6. Ethical Considerations

Confidentiality and privacy are the corner stone of field research activities in order to get
relevant and appropriate data. The researcher assured the purpose of the study and
confidentiality of information. Respondents were assured any information gathered through
data collection instruments will be used only for the academic purpose. The data and
documents were secured during the research and kept safely, not being transferred to third
parties. Back up of the research inputs and outputs were archived. Moreover, the study was
conducted with consent of the organization and data collected from the respondents based on
their consent. On the other hand, all sources and materials consulted have been duly
acknowledged.

3.6. Validity and Reliability

3.6.1Validity
The validity of research instrument can be considered how accurate the instrument measures
what is supposed to measure (Joubert and Ehrlich, 2005). The face validity of the instrument
wasassessed during pretest of the questionnaire on 15 employees of the bank.

3.6.2Reliability
The reliability of instrument refers to a precision of the test even if the test is done again and
again (Joubert and Ehrlich, 2005). The HRM,selection and recruitment, performance

27
appraisal, training and development of the study were adopted from previous work and used
with some modification.

Different authors accept different values of this test in order to achieve internal reliability, but
the most commonly accepted value is 0.70 as it should be equal to or higher than to reach
internal reliability (Hair et al., 2003). The result of the Cronbach‘s alpha for this study‘s
instrument was found to be in the acceptance range i.e. > 0.70. Thus, showing as indication of
acceptability of the scale for further analysis since all the six dimensions of SHRM (Strategic
Alignment, Placement, Training and Development, Employee Relation; Performance;
Reward and Compensation) were found to be above 0.7. The Cronbach‘s alpha coefficient of
the six dimensions of SHRM is shown

TABLE 3: RELIABILITY STATISTICS

Variables Cronbach's Alpha N of Items
Strategic Alignment .821 3
Recruitment & Selection .785 4
Performance .864 5
Reward & Compensation .910 5
Training & Development .756 5
Employee Relation .882 5
.819 27
Own survey, 2020

28
CHAPTER FOUR

DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1. Introduction

This chapter dealt with data analysis and interpretation. Accordingly, the demographic
characteristics of the respondents and the data obtained from the questionnaire for the title
assessing the practices of HRM in Dashen Bank S.C. had been presented and interpreted.As
described on the methodology part of this thesis, the total population of the study were 514
employees of Dashen Bank S.C which was found in West Addis Ababa District and from
these total population 125 samples were taken and questionnaire was distributed to
125respondents and 120 usable questionnaires were collected. The data analysis was made
based on the valid 120 (96%) questionnaires completed by the employees‘ of the bank. The
rest (2) were not returned and (3) were found to be incomplete. Statistical Package for Social
Science (SPSS) version 20.0 was used to process data.

4.2. Demographic Characteristics of the Respondents

The first part of the Questionnaire consisted of the demographic characteristics of the study
participants. Accordingly, demographic variables were summarized as indicated in table
4.1.The first part of the questionnaire consists of five items about the biographic information
of therespondents. It covers the personal data of respondents, such as gender, age,
educationalqualification, and job category and work experience.

Table 4.1.1depicts the each biological characteristic of the respondents.

29
TABLE 4: FREQUENCY DISTRIBUTIONS OF DEMOGRAPHIC CHARACTERISTICS
No. Description Type Frequency Percent%

1 Gender Male 87 72.5

Female 33 27.5

Total 120 100.0

2 Age 21-30 66 55.0

31-40 45 37.5

41-50 7 5.8

Above 50 2 1.7

Total 120 100.0

3 Educational Diploma 4 3.3

level
First Degree 110 91.7

Master‘s Degree &

6 5.0
Above

Total 120 100.0

4 Job Category Line management 85 70.8

Clerical 35 29.2

Total 120 100.0

5 Work 1Upto 2 years 53 44.2

Experience
3 to 5 years 29 24.2

6 to 10 years 24 20.0

Over 10 years 14 11.7

Total 120 100.0

Own Survey 2020

Table 5 showed 72.5% of the respondents were male while 27.5% of them were female this
indicate that the bank employees are more of male than the female. as far as the age of the

30
respondents is concerned 55% of respondents belonged to the age category of 21-30; 37.5%
of the respondents to be among 31-40; 5.8% of the respondents aged between 41-50; and
respondents who aged above 50 constituted only 1.7%. The majority of the respondents
were between the age of 21-30 and 31-40 together composed of 92.5% of the total sample
age that made up young forces even though the young forces are productive; the management
would think over it about sensitive and quick to emotive.It can be understood from the result
of this study thatmost of respondents are young, adult whoare considered to be productive
workforce so it can have positive impact on the practice of human resource management of
the bank.

Moreover, from the sample data obtained, the educational level of the respondents indicated
5% were MBA holders, 91.7% were first degree holders, and 3.3% were diploma holders.
This indicated that the majority of the respondents had bachelorDegree so the bank had
staffed with educated employees.

As far as job category is concerned,29.8% of the respondents were from clerical job category
and 70.2% were from Line management.This is a good finding for the researcher to get
valuable information from line management on the study matter.

Furthermore, the finding from demographic part of the research elaborated 44.2% of
respondents served at the bank 1-2 years; 24.2% of them 3-5 years; 20% of them 6-10 years;
and only 11.7% of the respondents worked at the bank for more than 10 years. Thus, this
might indicate that the bank is in short of experienced employees.

4.3. Analysis of Collected Data

In this section responses perception on the general consideration of strategic human resource
management factors were presented and interpreted. Descriptive statistics was used in the
form of frequency, percentage, mean and Std. Deviationto analyse the data. Moreover the
five criteria set for evaluation (1=Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree,
5=Strongly Agree) merges in to three criteria‘s, the strongly disagree and disagree combined
together as disagree and strongly agree and agree also combined together as agree. Therefore,
the three criteria‘s would be Disagree; Neutral and Agree) the analysis was made base on
those criteria‘s. Further more, for Likert scale data from 1 (StronglyDisagree) to 5 (Strongly
Agree) if the sample is approximately normally distributed the interpretation should be for
mean up to 2.8 is ―Disagree‖, mean between 2.9 and 3.2 is ―Neutral‖, and mean above 3.2 is

31
―Agree‖ (Scott 1999). Therefore, the decision of the each variable statistics is done based on
these criteria‘s.

4.3.1. The level of training and development practices in the bank

Survey respondents were asked to rate the extent to which they agree or disagree on five
statements aimed to gauge their perception towards training and development practices
offered by the bank.

TABLE 5.: DESCRIPTIVE STATISTICS FOR THE PRACTICE OF TRAINING AND DEVELOPMENT
№ Statements Frequency Percent Mean Std.
Responses
Deviation
%

Internal and external Disagree 87 72.5

Trainings are
Neutral 18 15.0
sufficiently aided with 2.14 .901
Agree 15 12.5
required materials and
1 facilities Total 120 100.0

Disagree 91 75.8
Selection that the bank
made for training is Neutral 16 13.3
2 2.04 .754
based on a proper need Agree 13 10.9
assessment.
Total 120 100.0

Disagree 104 86.7

Is there equal access to
Neutral 10 8.3
3 training at Dashen 1.73 .867
Agree 6 5.0
bank?
Total 120 100.0

Training and Disagree 73 60.8

development activities Neutral 33 27.5
4 of the bank are 2.30 1.022
Agree 14 11.7
satisfactory as
compared with similar Total 120 100.0

32
 banks.

Disagree 94 78.3
The knowledge and
skill acquired from Neutral 18 15.0
5 1.91 .961
training can be applied Agree 8 6.7
at workplace.
Total 120 100.0

Overall Mean 2.04

Own Survey 2020

As depicted on the above Table 4.2 regarding, the satisfaction in relation with internal and
external training sufficient aide with required materials and facilities. 72.5% were
dissatisfied, 15% neutral and 12.5% agreed. This implies that majority of the respondents
were not satisfied by the current training materials and facilities for internal and external
training the material the bank used is insufficient. Concerning the selection that the bank
made for training, 75.8% disagreed 13.3% remainedneutral and 10.9% agreed on the
selection criteria. This implies that majority of the respondents were not happy about the
bank selection process for training because the training was not based on proper need
assessment. Regarding access of equal trainingopportunity,86.7% disagree, 8.3% neutral and
5% agreed. Here one can say that majority of the respondents were not agree on the
availability of equal access of training treat each employee equally.

Concerning training and development activities of the bank satisfaction compared to similar
banks60.8% disagreed; 27.5% neutral and 11.7% agree. This implies that the majority of the
respondentsare not happyon the training given by the bank as compared to trainings offered
by other banks.

Finally regarding the skill and the knowledge acquired from training application in the work
place, 78.3% disagreed; 15% neutral and 6.7% agree. This also implies that the bank training
is just a waste of time and money because it doesn‘t applicable and used in the important
working area. It is unquestionable fact that the organization‘s productivity is determined by
the motivation level and effectiveness of its workforce. Training and development implies to
the systematic process of developing the competencies relating to the job of employees for
the present and future roles and responsibilities. Today most organizations believe that a

33
 competitive success is achieved through people as the skills and performanceof people are
critical resources. Many organizations spend much money on training, considering that
training will improve their employees‘ performance and productivity. Recruiting, selecting,
orienting and then placing employees in jobs do not ensure success. Organizations can
develop and enhance the quality of the current employees by providing
comprehensive training and development. Indeed, research indicates that investments in
training employees in problem-solving, teamwork and interpersonal relations result in
beneficial firm level outcomes (Barak et al., 1999).

4.3.2. The level of performance appraisal practices in the bank.

Survey respondents were asked to rate the extent to which they agree or disagree on five
statements aimed to gauge their perception towards the bank‘s performance appraisal
practices.

T ABLE 6: D ESCRIPTIVE STATISTICS FOR THE PRACTICE OF PERFORMANCE APPRAISAL

№ Statements Frequency Percent Mean Std.
Responses
Deviation
%

The current performance Disagree 87 72.5

appraisal system is
1 Neutral 10 8.3
capable of encouraging 2.17 1.110
Agree 23 19.2
the good performers vis-
a-vis nonperformers Total 120 100.0

Disagree 62 51.7
Performance appraisal is
Neutral 16 13.3
2 free from evaluator‘s 2.64 .891
Agree 42 35
personal interest
Total 120 100.0

Disagree 71 59.2
Is there
Neutral 26 21.7
3 Acknowledgement for 2.39 .743
Agree 23 19.2
good performances
Total 120 100.0

34
 Performance appraisal Disagree 88 73.3
review helps in
Neutral 13 10.8
4 identifying my personal 2.12 1.022
Agree 19 15.8
development
opportunities. Total 120 100.0

The working Disagree 95 79.2

environment in your
Neutral 17 14.2
5 bank facilitates the 1.84 .961
Agree 8 6.7
appraising of
performance. Total 120 100.0

Overall Mean 2.23

Own Survey 2020

As illustrated on the above Table 4.3 concerning, when survey respondents were asked
whether performance appraisal system of the bank differentiates good performers from poor
performers, 72.5% were disagreed, 8.3% neutral and 19.2% agreed. This implies that
majority of the respondents workers were not encouraged and motivated by the performance
appraisal that the bank gave for their good working performance in their job.

Regarding the performance appraisal made by evaluator personal interest 51.7% were
Agreed, 13.3% neutral and 35% unhappy. One can say that the majority of the respondents
were agreed because the evaluator doesn‘t see the performance that the workers made the
evaluator decision according to their interest not in accordance with performance rather their
personal feeling.

When survey respondents were asked whether there is acknowledgement for good
performers, 59.2% disagree; 21.7% neutral and 19.2% agreed. This implies that majority of
the respondent replied that the bank doesn‘t Acknowledge to their good performance they
made for the bank.

When survey respondents were asked whether performance appraisal review helps
identifying their personal development opportunities, 73.3% disagree; 10.8% neutral and
15% agreed. This also implies that he majority of the respondents were unhappy by the

35
 opportunities becauseaccomplishments or contributions since last year that the employee
done are not valuable at the bank so they don‘t even know the worker perform so the
employees doesn‘t know their qualificationinthe other position. Lastly, when survey
respondents were asked whether the working environment is helpful or performance
appraisal, 79.2% disagreed, 14.2% neutral and 6.7% agreed.

4.3.3. The level of recruitment and selection practices in the bank

Survey respondents were asked to rate the extent to which they agree or disagree on four
statements aimed to gauge their perception towards the bank‘s recruitment and selection
practices.

TABLE 7. DESCRIPTIVE STATISTICS FOR THE PRACTICE OF R ECRUITMENT AND SELECTION

№ Statements Responses Frequency Percent Mean Std.
Deviation
%

Recruitment and Disagree 69 57.5

Selection processes of
Neutral 22 18.3
1 the bank are conducted 2.48 .953
Agree 29 24.2
by trained and impartial
people. Total 120 100.0

In the bank, line Disagree 62 51.7

managers (supervisors)
Neutral 37 30.8
participate in selection 2.47 .921
Agree 21 17.2
process.
2 Total 120 100.0

Recruitment and Disagree 67 55.8

selection system of
Neutral 18 15.0
Dashen bank is effective 2.57 1.193
Agree 35 29.2
and suitable for the
3 organizational goal. Total 120 100.0

Disagree 70 58.3
The recruitment and
4 2.49 .892
selection outcome affects Neutral 21 17.5

36
 the performance of the Agree 29 24.2
bank
Total 120 100.0

Overall Mean 2.50

Own Survey 2020

As described on the above Table 4.4When survey respondents were asked whether
recruitment and selection processes of the bank are conducted by trained and impartial
people, 7.5% were disagreed 18.3% neutral and 24.2% agreedThis implies that majority of
the respondents were not happy by the selection process that the bank made because the
selection conducted by persons which are not well trained

When survey respondents whether line managers (supervisors) participate in selection

process, 51.7% were disagreed, 30.8% neutral and 17.5% agreed. One can say that the
majority of the respondents were dissatisfied by supervisor mostly they are not occupied this
make the employee dissatisfied.

When survey respondents whetherrecruitment and selection system of the bank is effective
and suitable for the organizational goal, 55.8% were disagree, 15% neutral and 29.2% agreed.
This implies that majority of the respondents were unhappy.

When survey respondents were asked whetherthe recruitment and selection outcome affects
the performance of the bank, 58.3% were disagree, 17.5% neutral and 14.2% agreed. This
implies that majority of the respondents were dissatisfied the selection made doesn‘t affect
the performance of the bank.The recruitment and selection is major factor to a company to
accomplished its organizational objective the bank update its system of recruiting and
selection process.

4.3.4. The level of employee relations in the bank

Survey respondents were asked to rate the extent to which they agree or disagree on five
statements aimed to gauge their perception employee relations in the bank.

TABLE 8. DESCRIPTIVE STATISTICS FOR THE PRACTICE OF EMPLOYEE RELATION

№ Statements Responses Frequency Percent% Mean Std.
Deviation

37
 There is an Disagree 71 59.2
environment of
Neutral 17 14.2
understanding and
1 Agree 32 26.7 2.49 .786
confidence between
managers and Total
120 100.0
employee

Disagree 74 61.7
I often volunteer to
participate in work Neutral 21 17.5
2 2.35 .991
that are not directly Agree 25 20.8
related to my job
Total 120 100.0

Disagree 72 60.0
There is an
Neutral 28 23.3
3 environment of trust 2.19 1.140
Agree 20 16.6
among coworker.
Total 120 100.0

The bank Encourages Disagree 42 35

interaction among its
Neutral 6 5.0
employees (e.g.,
4 Agree 72 60 3.17 .916
social gatherings,
social events, sports Total
120 100.0
events, etc.)

Managers and Disagree 32 26.7

employees enjoy
Neutral 12 10.0
constant exchange of
5 Agree 76 63.4 3.36 1.165
information in order
to perform their Total
120 100.0
duties properly.

Overall Mean 2.71

Own Survey 2020

38
As per the result shown in the table 4.5 above, When survey respondents were asked whether
there is an environment of understanding and confidence between managers and employee,
59.2% were dissatisfied, 14.2% neutral and 16.7% agreed. The results showed that majority
of the respondents werenot contented with environment of understanding.
When survey respondents were asked whether they are volunteer to participate in work that
are not directly related to their job,

61.7% were disagreed, 17.5% neutral and 20.8% agreed. One can say that majority of the
respondents were dissatisfied by the volunteer participant of the work.

When survey respondents were asked about the environment among coworkers 60% of the
respondents were respond 60% disagreed,23.3% neutral and 16.6% agreed.it imply the
environment of trust among the employees are not good at the bank .

With reference bank encourage interaction among its employees 35% were disagreed, 5%
neutral and 60% agreed which means much of the respondent were have good social
interaction among the employees so it‘s good for the bank because social interaction close
the workers each other so the work done with good potential because of their good social
interaction

When survey respondents whether the work creates a constant exchange of information,

35% were disagreed, 10% neutral and 63.4% agreed. Thus the majority of the respondents
were agreed on the sense of responsibility so this is good implication because banking
industries are sensitive in nature since every transaction relates with cash. It need care and
responsibility

Finally the responses regarding the work have of great value in my bank 26.7% were
disagreed, 10% neutral and 63.4% agreed. This also good implication to the bank because if
the assume their work have a value to their bank, we can say they are motivate somehow.

4.3.5. The level of reward and compensation system in the bank

Survey respondents were asked to rate the extent to which they agree or disagree on four
statements aimed to gauge their perception towards the bank‘s reward and compensation
system.

TABLE 9: DESCRIPTIVE STATISTICSFORTHE PRACTICE OFREWARD AND COMPENSATION.

39
№ Statements Responses Frequency Percent Mean Std.
Deviation
%

Disagree 92 76.7
There is a reward system
Neutral 20 16.7
1 based on performance in 1.90 .965
Agree 8 6.7
your office
Total 120 100.0

Considers the Disagree 84 70.0

suggestions of its
Neutral 14 11.7
2 employees when 2.11 1.129
Agree 22 18.3
designing a system of
employee rewards Total 120 100.0

Disagree 64 53.3
Rewards and
Neutral 19 15.8
3 compensation is directly 2.45 .873
Agree 37 30.8
linked to performance
Total 120 100.0

The bank‘s rewards and Disagree 60 50.0

compensation practices
Neutral 11 9.2
4 can attract and 2.76 .946
Agree 49 40.8
retain high quality
Total 120 100.0
employees

Overall Mean 2.31

Own survey 2020

As can show from Table 4.6,when survey respondents were asked whether there ward system
of the bank is based on performance, 76.7% were disagreed, 16.7% neutral and 6.7% agreed.
This showed that the majority of respondents were disagreed. Thus the bank had to do to link
reward with performance.

40
When survey respondents were asked whether the bank considers the suggestions of its
employees when designing a system of employee rewards, 70% were disagreed, 11.7%
neutral and 18% agreed. This implies that the majority of respondents were disagreed.

When survey respondents were asked whether rewards and compensation is directly linked to
performance,53.3% were disagreed, 15.8% of the respondent‘s neutral and 23.8% of the
respondents agreed. The majority of respondents were disagreed.

When survey respondents were asked whether the bank‘s rewards and compensation
practices can attract and retain high quality employees 50% were disagreed, 9.2% neutral and
40.8% agreed. The majority of respondents were disagreed. The overall mean (2.31) showed
that they disagreed on the relation with reward and compensation. This implies that the bank
reward and compensation must be update to attract new employees and to retain experienced
workers in the bank environment.

4.3.6. The alignment between Strategic HRM and corporate strategy

Survey respondents were asked to rate the extent to which they agree or disagree on three
statements aimed to gauge their perception towards the alignment between the bank‘s
Strategic HRM practices and the corporate strategy.

TABLE 10.DESCRIPTIVE STATISTICS FOR THE PRACTICE OF HRM ALIGNMENT WITH

CORPORATE STRATEGY .

№ Statements Responses Frequency Percent Mean Std.

Deviation
%

Disagree 42 35.0
HR Strategies are
Neutral 18 15.0
1 derived from Corporate 3.09 .987
Agree 60 50.0
Strategy
Total 120 100.0

Senior managers Disagree 35 29.2

support the best HR
Neutral 14 11.7
2 practices and have a 3.27 .856
Agree 71 59.2
proactive approach to
people management Total 120 100.0

41
 Line managers expedite Disagree 32 26.7
their responsibility to
Neutral 20 16.7
ensure the
3 Agree 68 56.6 3.27 1.172
implementation HR
practices in line with Total
120 100.0
corporate strategy

Overall Mean 3.21

Own Survey 2020

When survey respondents were asked whether HR Strategies are derived from Corporate
Strategy, 35% disagreed, 15% neutral and 50% agreed.

This imply that strategic integration and alignment of HRM with business strategies, a
documented HRM strategy would also be useful (Budhwar, 2000; Teo, 2002) as it can make
more concrete the role and authority of HR managers in corporate decision making and
increase capacity to cope with externalities such as a tight labour market (Cunningham
and Deborah, 1995). A documented HRM strategy helps the organization to develop an
HRM vision and objectives and to monitor performance

When survey respondents were asked whether senior managers support the best HR practices
and have a proactive approach to people management, 29.2% disagreed, 11.7% neutral and
59.2% agreed. This also positive implication to the bank.

Concerning Line managers expedite their responsibility to ensure the implementation HR

practice 28% of the respondents respond disagreed, 16% of the respondents neutral and 56%
of the respondents respond agreed. The majorfinding of the result showed generally, the
majority of respondents were agreed on the relation with HRM alignment with corporate
strategy.

42
CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.2. Introduction
This research had an aim to assess the practices of Human resource management item such
as training and development, Performance appraisal ,recruitment and selection, employee
relation, HRM alignment with corporate strategy. In addition, the research study examines
how well the selected human resource management factors are being practiced and how well
the HR Department are done their job by looking at their percentage scores of the responses
which are summarized under the descriptive statistical Analysis.

5.2. Summary
In general, a summary description of descriptive analyses is generated from the questionnaire
survey results. The data analyzed using descriptive statistics; percentage and frequency of
major findings were presented below in a summarized as follows:

 The study indicates on the Training and development as the HRM practice with
regard to the five components, the finding in general 74.7% of the respondent
dissatisfied; 15.8% Neutral and 9.3% agree.
 The overall response towards performance appraisal as the HRM practice with regard
to the five components, the finding in general 67.2% of the respondent dissatisfied;
13.3% Neutral and 19.2% agree.
 The overall response towards the Recruitment and selection as the HRM practice with
regard to the four components, the finding in general 55.8% of the respondent
dissatisfied by the selection of the bank, 20% Neutral and 23.8% agree. Thus possible
to predict that the recruitment and selection of the bank not attractive
 The overall response towards the employee relation as the HRM practice with regard
to the five components, the finding in general 48.5% of the respondent dissatisfied by
the employee relation of their job, 14% Neutral and% 37.5% agree. But the 37.5%
agreed result not bad as compare to the other HRM practice looking above.

 The overall response towards reward and compensationrespondents responds 62.5%

were disagreed on the relation reward and compensation, 13.3% Neutral, 24.2%

1
 agreed. This implies that the bank must build good reward and compensation structure
to retain good and experienced employees.
 To generalize the alignment between HRM & corporate strategy as the HRM practice
with regard to the three components, the finding in general 31.4% of the respondent
dissatisfied by the relation with co-worker; 13.9% Neutral and 54.7% agreed.
Generally, the majority of respondents were agreed on the alignment of HRM strategy
with corporate strategy.

5.3. Conclusion
Based on the research basic questions the following conclusions were drawn.
 The perception of employees towards the strategic human resource management
practices with all variables majority of the respondents were not satisfied by the
practice(training and development, compensation and reward, selection and
recruitment).

5.4. Recommendation
Based on the entry study the following recommendations were made for bank management
consideration

 Based on the research questions, the perception of employees towards the HRM
practices at Dashen Bank S.C the employee were not interested by the practices ,the
study found that the employees of the bank not satisfied by the HRM packages like
Training and . Thus the bank management should revise the practice in order to retain
the employees because employees are vital resources of the organization and to
achieve organization goal working on the manpower is a responsibility of the
company because noting can do without manpower.

Recruitment and Selection Practices

Whatever the mode of recruitment (external/ internal) preferred by the banks, it should be
detailed and communicated clearly in what an organization needs and easily understandable
by prospective employees at large so as to avoid favoritism (ethnical/ political/ Nepotism).
Hence bank should be clear and thoroughly check its requirements before posting
recruitment; disclose its evaluation criteria procedures; and update results (if possible) with
justification online Medias. You can‘t just hire anyone; you want people who are fit for the

2
job. The bank do their utmost best to hire exceptional people because they add the most value
to the business.

Training and Development Practices

The Banks should formulate strategies for both short and long-term training and
development policies for their employees. To achieve this: goal and objective of the bank.
And also the bank must do the training based on the need that a person or the department
need to do more improvement, the training that the bank give must use for further importance

Performance Appraisal Practices

The banks need to re-evaluate their performance appraisal within the context of their
corporate and HR strategy to ensure that they are consistent with the necessary performance
measures required by the banking sector. Hence, the banks should apply standard techniques
for employees‘ job evaluation, performance measurement.

Reward and Compensation Practices

The bank reward should be given to the employees who are performing better than others and
such incentives should be kept as a variable factor. The bank must done good reward system
to retain most qualified, experienced employees to motivate and work more and more.

Employee Relations Practices

Managers must strive to maintain an enjoyable, family oriented atmosphere in which all
employees focus on achieving team goals. This can be achieved through: Organizing
seminars, workshops, conferences, different short courses, and training programs on financial
matters, current issues, software up-gradation on regular basis that would definitely help to
develop knowledgeable manpower, create awareness and change mental attitudes among the
professionals

The alignment of the HRM with corporate strategies is good alignment at dashen bank this is
good practice keep it up and do more good practice.

3
REFERENCES
Armstrong M., (2006).Hand Book of Human resource Management Practice.10th edition,
London: Cambridge University Press.

Armstrong, M., (2008). Strategic Human Resource Management: A Guide to Action,

4rdEdition. London and Philadelphia: Kogan-Page.

(Armstrong and Murlis 2004 sited (Stoner, Freeman and Gilbert 1995)

Belcourt M. andMcBey K. (2009). Strategic Human Resource Planning. 2nd edition: USA.

Boselie, P., & Van Der Wiele, T. (2002).Employee perceptions of HRM and TQM, and the
effects on satisfaction and intention to leave. Managing Service Quality,

Boxall, P.F, (1996). The strategic HRM debate and the resource-based view of the firm,
Human Resource Management Journal, 6 (3), p 59–75.

Budhwar, P. S. (2000). Evaluating strategic levels of integration and development of human

resource management in the UK. Personnel Review

Burke, L. A., & Hsieh, C. (2005).Operationalising the strategic net benefit (SNB) of HR.
Journal of Human Resource Costing and Accounting

Dess, Gregory G., G.T. Lumpkin and Marilyn L. Taylor (2005).Strategic Management.2nd
edition. New York: McGraw-Hill Irwin

Greer C.R. (2001). Strategic Human resource management: a general Managerial Approach;
2nd edition, Singapore: Beer, M., Spector, B., Lawrence, P.R., Quinn-Mills, D., & Walton,
R.E. (1984); Managing Human Assets. New York: Free Press. Pearson education

Houtzagers, G. (1998).Business models for human resource management discipline: A key

instrument for selection, implementation and optimizing your HRM system

Kothari C.R.(1985). Research Methodology Methods and Techniques. New Delhi: Wiley
Estern limited
Lepak, D. P., & Shaw, J. (2008).Strategic HRM in North America: Looking to the future.

International Journal of Human Resource Management, J9(8), 1486-1499

Rawashdeh, A.M., & Al-Adwan, I.K. (2012). The impact of human resource management

practices on corporate performance: Empirical study in Jordanian commercial banks. African

Journal of Business Management, 6 (41), 10591-10595.

1
Thory, K. (2008).The internationalization of HRM through reverse transfer: Two case studies
of French multinationals in Scotland. Human Resource Management Journal.

Watson, S., & Maxwell, G. A. (2007).HRD from a functionalist perspective: The views of
line managers.Advances in Developing Human Resources, 9(1), 31 –41.

/www.dashenbanksc.com/.
The bank procedures, manuals, reports and Bulletins

2
APPENDIX

1
ST MARY'S UNIVERSITY

SCHOOL OF GRADUATES

PROGRAM OF MASTERS OF BUSINESS ADMINISTRATION (MBA)

Questionnaire for Employees of Dashen Bank

Dear survey participants,

This study is conducted in partial fulfillment for the Masters of Business Administration
(MBA) in St. Mary's University. It is conducted to assess human resource practices in
Dashen Bank. To this end, questionnaire survey is used to collect pertinent data from
respondents. The survey has two parts. Part one includes background of survey respondents.
Part two consists of measurement items used to assess human resource management practices
in Dashen Bank. The survey will take 15 minutes to complete. The information you provided
will be used only for academic purposes and hence remain confidential. Thus, you are not
required to write your name, address and other personal information. Given the importance of
the topic covered in the study, your genuine responses are vital for the success of this study.
So, you are kindly requested to fill the questionnaire honestly and responsibly. Thank you in
advance for your willingness to participate in this survey by sparing your precious time.

Part I: Biography of survey respondents

1. Gender
a) Male
b) Female
2. Age
a) 21-30
b) 31-40
c) 41-50
d) Above 50
3. Level of education
a) Diploma
b) Bachelor degree
c) Second Degree
d) Master‘s degree and above
e) Other _________________
4. Work unit or department:
a) Clerical management
b) Line manger

i
5. Service experience in year
a) 1-2 years
b) 3-5 years
c) 7-10 years
d) Above 10 years

ii
 Part II: Strategic Human Resource Management Practices

This part of the survey is aimed to assess the challenges of strategic human resource
management practices in Dashen Bank.

1. Strongly Disagreed (SD)

2. Disagreed (D)

3. Neither Agreed nor Disagreed (NAD)

4. Agreed (A)

5. Stronglyagree (SA)

Item Dimensions Scale

Item Training and development SD D NAD A SA

5 4 3 2 1

1 Internal and external Trainings are sufficiently aided with

required materials and facilities.

2 Selection that the bank made for training is based on a

proper need assessment.

3 Is there equal access to training at dashen bank?

4 Training and development activities of the bank are

satisfactory as compared with similar banks.

5 The knowledge and skill acquired from training can be

applied at workplace.

Performance Appraisal Practices SD D NAD A SA

5 4 3 2 1

iii
1 The current performance appraisal system is capable of
encouraging the good performers vis-a-vis nonperformers

2 Performance appraisal is free from evaluator‘s personal

interest

3 Is there Acknowledgement for good performances

5 Performance appraisal review helps in identifying my

personal development opportunities.

6 The working environment in your bank facilitates the

appraising of performance.

Recruitment and selection SD D NAD A SA

4 3 2 1
5

1 Recruitment and Selection processes of the bank are

conducted by trained and impartial people.

2 In the bank, line managers (supervisors) participate in

selection process.

3 Recruitment and selection system of dashen bank is

effective and suitable for the organizational goal.

4 The recruitment and selection outcome affects the

performance of the bank

Employee Relation SD D NAD A SA

5 4 3 2 1

1 There is an environment of understanding and confidence

between managers and employee

iv
2 I often volunteer to participate in work that are not
directly related to my job

3 There is an environment of trust among coworker.

4 The bank Encourages interaction among its employees

(e.g., social gatherings, social events, sports events, etc.)

5 Managers and employees enjoy constant exchange of

information in order to perform their duties properly.

Reward and Compensation Practices SD D NAD A SA

4 3 2 1
5

1 There is a reward system based on performance in your

office

2 Considers the suggestions of its employees when

designing a system of employee rewards

3 Rewards and compensation is directly linked to

performance

SHRM alignment with Corporate Strategy SD D NAD A SA

5 4 3 2 1

1 HR Strategies are derived from Corporate Strategy

2 Senior managers support the best HR practices and have

a proactive approach to people management

3 Line managers expedite their responsibility to ensure the

implementation HR practices in line with corporate
strategy

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Many thanks for your kind cooperation!!

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