Human Resource Management Practices and Organizational Performance: The Mediating Role of Human Resource Outcomes in Batu Town Administration, Oromia Regional State

Abstract

The purpose of this study was to examine Human Resource Management practices and Organizational Performance: The Mediating Role of HR outcome in Batu Town Administration, Oromia Regional State. The study adopted both descriptive research design. A quantitative research approach was employed in data analysis. The self-administered questionnaires were used to collect data from the sample of 268 employees working in the Batu public service organizations.  Exploratory Factor Analysis (EFA) and Structural Equation modeling (SEM) were applied with use of SPSS-version 26 and AMOS.  To measure the intercorrelation, suitability and reliability of the data for analysis Exploratory factor analysis used whereas confirmatory factor analysis (CFA) has been used to determine composite reliability, convergent and discriminant validity and hypothesis test. The findings of the study reveals that certain HRM practices (placement, employee training, performance evaluation and reward system) positively significant effect on organizational performance and human resource outcomes (competence, motivation, role clarity and commitment). And consequently, HR outcomes has positive significant influence on organizational performance. The study also found HR outcome has mediation effect on the relationship between HRM practices and organizational performance. Thus, the higher HR out comes in organization the better contribution to organizational effectiveness and efficiency.

DOI: 10.7176/EJBM/14-9-02

Publication date:May 31^st 2022