The Effect of Human Resource Management Practices on Employees' Job Satisfaction: The Case of East Region Ethio Telecom

In present situation, companies can gain strong competitive advantage through applying effective and efficient human resource practices. If the human resources are managed properly, they can contribute to the success for the company. The effective management of human resource is possible through the implementation of sound HRM practices. The aim of this study was to investigate the effect of selected human resource management practices on employees’ job satisfaction in Ethio Telecom East Region, Diredawa Administration. Recruitment and selection, compensation and benefit, Training and development, and performance appraisal were human resource management practices on which the researcher focused to find out their real effect on employees’ job satisfaction. Cross-sectional conclusive research design which includes both descriptive and causal methods was employed. The researcher adopted mixed research method for collecting and analyzing the data. Both primary and secondary data were collected using questionnaire, interview, observation and document analysis. Primary data was collected from 150 permanent employees using questionnaire. The researcher conducted interview with selected employees as an additional input for primary data. The questionnaire comprised of closed ended questions in line with the objectives of the study. Simple random sampling was the main sampling method to sample the respondents. In addition to this, purposive sampling was used for the qualitative part of the study. The Quantitative data was analyzed using the Statistical Package for Social Sciences (SPSS) Version 20, and the qualitative data was analyzed on theme base. The result of correlation analysis evidenced that recruitment and selection, compensation and benefit, Training and development, and performance appraisal have a strong relationship with employees’ job satisfaction. Furthermore, the model summary of regression revealed that the four independent variables significantly influenced employees’ job satisfaction. The study forwarded both theoretical as well as empirical implications for human resource literatures, telecom industry, case companies, academicians, stakeholders, policy makers, researchers and interested readers. Based on the findings, the researcher made sound conclusion and put appropriate recommendation.