THE EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICE ON MEDIUM BUSINESS ENTERPRISE PERFORMANCE IN WERABE TOWN, ETHIOPIA

ABSTRACT The general objective of this study to examine the effects of human resource management<br> practices on medium scale enterprises performance in Werabe Town. To achieve the objective<br> of the study necessary data were collected through the five points Likert Scale of<br> questionnaires through stratified and simple random sampling methods. To achieve the<br> intended objective explanatory and descriptive research design with a quantitative research<br> approach was implemented. In the descriptive analysis tools such as frequency, percentage,<br> mean and standard deviation were used while for the inferential analysis correlation and<br> multiple liner regression was adopted by using SPSS V.21 and Questionnaire’s reliability<br> was estimated by calculating Cronbach’s Alpha. Correlation analysis assessed the<br> relationship between human resource management practices and medium business<br> enterprises performance, and multiple regression analysis used to assess the influence of<br> HRM practices on performance. The findings confirm that all the independent variables<br> (HRM planning, recruitment and selection, training and development, performance appraisal<br> and compensation and benefits have a positive and significant relationship with medium<br> business enterprises performance as well as the variables have a positive and significant<br> influence on performance. Among the variables HRM planning has the highest influence on<br> medium scale business performance, followed by recruitment and selection which is the next<br> significant factor of human resource management practices in study area. Therefore, the<br> Werabe town enterprises office better to implement HRM practices appropriately and<br> continuously, and to build long-term performance with their competitive advantage and in<br> order to achieve long life business.