The Impact of Human Resource Management Practices on Public Institutions’ Performance: Case of Muhanga District, Rwanda

This research set out to examine the impact of human resource management practices on organizational performance, with a case study of Muhanga District in Rwanda. This study was guided by the Human Capital Theory and the Abilities, Motivation, and Opportunity (AMO) Theory. For this study, 243 participants were chosen at random from 20 public organizations. The inquiry was conducted using an explanatory research design. Employees at all levels of management were surveyed using a five-point Likert scale. The data obtained were analyzed descriptively using frequencies and percentages, as well as inferentially using correlations and regressions. The findings show that human resource practices significantly impact organizational performance. Recruitment and selection (β = 0.827, p = 0.000), compensation and rewards (β = 0.695, p = 0.000), and training and development (β = 0.698, p = 0.000) all show positive effects on performance. The R-squared value of 0.7942 indicates that 79.42% of the variation in performance is explained by these practices. Correlation analysis also reveals strong positive relationships between HR practices and organizational outcomes. Control variables, education (p = 0.046) and marital status (p = 0.035), are statistically significant. It is thus evident that training and development, compensation and rewards, and selection and recruitment are three separate factors that have considerable impacts on public organizational effectiveness. Therefore, it was concluded that institutions in Rwanda should prioritize government entities and other organizations consistently investing in their employees' professional growth through training and development programs. This study also recommended that organizations devise a continual incentive and pay program for their staff, with the Human Resources team being responsible for all hiring decisions.