An Assesment of Human Resource Practices
An Assesment of Human Resource Practices
ACKNOWLEDGEMENTS .................................................................. iv
ENDORSEMENT .............................................................................. ix
List of Tables................................................................................... x
INTRODUCTION............................................................................... 1
2.1 Introduction................................................................................ 7
i
2.1.2 Human resource management ............................................... 7
Introduction ..................................................................................... 18
Introduction ..................................................................................... 24
ii
4.4.1. Employees perception on Salary, Benefits and Packages ..... 27
CHAPTER FIVE.............................................................................. 47
6. References ................................................................................ 53
APPENDIXES ................................................................................. 58
Appendix I..................................................................................... 58
Appendix II ................................................................................... 62
iii
ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
MBA PROGRAM
By
FIKIRU GEDA
JUNE, 2017
iv
AN ASSESMENT OF HUMAN RESOURCE PRACTICES AND
EMPLOYEES’ JOB SATISFACTION:
By
FIKIRU GEDA
JUNE, 2017
v
ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF BUSINESS
By
FIKIRU GEDA
Advisor Signature
vi
ACKNOWLEDGEMENTS
First and foremost, I would like to thank the Almighty God for directing me
with his true spirit all the time with success. Secondly, I thank
Dr.MulatuTakele my advisor, for his enthusiastic support, advice, patience and
constant energy for knowledge sharing throughout my research work, without
his support the result of this work is imperceptible. His influence is inherited
in both the theoretical and practical aspects of this work. I remain thankful to
employees of Development Bank of Ethiopia (DBE) Burayu branch for their
cooperation during printing all materials used for this study starting from
proposal to the end of this thesis. Finally, I present my respect for all the staffs
of the Burayu town administration that assisted me in data collection with
patience, commitment and dedication. Their cooperation was not on the basis
of their material benefit but is really their own commitment to help me.
vii
DECLARATION
I, the under signed, declare that this thesis is my original work and all sources
of materials used for this thesis have been duly acknowledged. The paper has
never been presented in this or any other university for the award of any
Name: FikiruGeda
Signature_____________
Date_________________
viii
ENDORSEMENT
This thesis has been submitted to St. Mary’s university, School of Graduate
Studies for examination with my approval as a university advisor.
Advisor Signature
ix
List of Tables
Table Page
x
List of Abbreviations
JS Job Satisfaction
HR Human Resource
LSH Leadership
PA Performance Appraisal
xi
Abstract
xii
CHAPTER ONE
INTRODUCTION
This part deals with the background of the research; statement of the problem;
objectives of the study; significance of the study; scope of the study; limitations
of the study; operational definition of key terms, and organization of the study.
Human Capital, which gives competitive edge due to its uniqueness, is one of
the resources that work as a pillar for an organization (Holland, Sheehan and
de Cieri, 2007). The focus has therefore shifted to “people”, the employees of
the organizations (Cohen, 2005). Employees play an important role in
organizations, they are the greatest resource an organization can have
and it is through their involvement and commitment that the organization can
become competitive (Sempane, 2002).
1
1.2. . Statement of the Problem
Competent employees are necessary for organization’s productivity, efficiency
and effectiveness, therefore there is need to find out the relationship between
human resource practicing and crucial element for an organization (employee)
job satisfaction. The study of organizational human resource practicing and job
satisfaction has been accounted many years by different researchers. Most of
these studies have been conducted to know the relationship between
organizational climate, Leadership style and different organizational variables
such as Job satisfaction, Job commitment, Employee motivation,
organizational performance, employee’s turn over and Intention to leave
(Ahmed, 2013).
2
Therefore, there is a need for the organizations to ensure and create optimal
climate which enable them to effectively and efficiently serve their organization
specifically and society in general (Yair, 2011).
To date the factors which hinders as the employees not satisfied with their job
and consequently deliver their services to respective customer is not clearly
shown though some studies attempt to depict by ignoring other supportive
employees. Hence To come up with this and its severity on the organization
and stakeholders, the current study provide information about the human
resource practices variables and try to include the whole employee’s
perceptions toward those variables and its impacts on their job satisfactions in
Burayu town administration.
1.4.1.General Objectives
The general Objective of the study is to assess the Human Resource practices
and employee job satisfaction in Burayu town Administration.
3
1.4.2. Specific Objectives
The specific objectives of this study are;
4
1.7. Scope/Delimitation of the study
This research was delimited to Oromia Regional State Finfine special Vicinity
Burayu town Administration (Burayu) specifically employees of Finance and
Economic Development, Civil Service, Land Development administration, Trade
and Market Development, Communication, Youth and sport, Education, Water
and Irrigation Bureaus .The variables studied in this research were those
related with salary, Benefits & packages, interpersonal relationship,
communication, training & development, Performance appraisals,
Administrations and Job satisfaction.
5
1.10. Organization of the Research
This research is organized into five chapters. The first chapter focused on the
background of the study. The second chapter reviews related theoretical and
empirical studies. The third chapter focused on the methodology used for the
collection and Analysis of the data. The next chapter (chapter4) deals with the
data, analysis and interpretation followed by the last Chapter (chapter5) which
focused on summery, conclusion and recommendation of the study.
6
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter deals with the theoretical concepts; Empirical studies and lastly
draws the conceptual frame works of the study conducted on relationship
between Human Resource practices and employee job satisfaction.
8
2.1.4 Empirical Studies
Long years back and currently, a number of studies conducted to explore the
relation between organizational climate and employee job satisfaction. Almost
the overall studies showed that Human Resource practices affect the
organizational performance and employee directly as well as indirectly. There
is a positive and meaningful relation between organizational environment
and managerial skills of managers which are the most rare and at the
same time the most valuable capital of the organizations and are of the major
and effective factors in/ the society that has fundamental and vital role in
flourishing and development of human beings (Samaneh,2014).
On the other hand there is only an average level of overall job satisfaction;
where employees are most satisfied with the relationship that they have
with their coworkers, nature of the work, communication, supervision but
least satisfied with the pay and promotion that they receive (Tekile , 2016 ).
9
There are also numerous studies investigating the relationship between
organizational climate and job satisfaction, with many researchers finding
evidence to support the relationship between the two constructs (Field , 1982).
10
2.1.5 Organizational change and job satisfaction
The concept of the organizational change comes from the nature and
environment of the organization. Change basically means a serious of events
which supports the process of development in an organization
(KassimTahajud,2010).organizational change generally means rightsizing , new
development and change in technologies, rescheduling operation and major
partnerships.(McNamara,2011).
11
2.1.5.1 Employee performance
Employee performance is vital for the success of every organization and
profitability in this dynamic environment (Chien, 2004).now a day’s
organizations require such type of employees who contribute more than their
job scope and far from goals expectations. Most of the organizations copping
with contemporary challenges put more emphasis on employee
performance(Gruman&Saks,2011).according to same authors service firms or
organization like government sectors invest more on their force in order to
maintain long term relationships with them and to increase their performance
along with job satisfaction. The deficiencies of employee performance will be
overcome by effective leadership, communication, motivation, employee
performance and organizational culture (Karatep, ,2006).
2.1.5.2 Leadership
A leader is one whose behavior guides people towards their goal achievement.
Leadership influences managers; employees of the organization and
organization performance with goal achievement (Stogdill, 1974).Different
styles of the leader play a vital role towards enhancing employee’s performance
in order to achieve their goals (Wang , 2009).
12
leaders depends on vision rather than analysis on learning rather than on
knowing because leader has a strong communication of the vision because this
is more important in today’s leaders (Wesley, 1996).a leader has the ability to
influence their employees so that they can work efficiently and get the things
done in order to achieve organizational goals (Wang Law, Hacket, Wang
&Chen,2005). the performance of the organization will increases if employees
share their ideas and values each other. A leader is one increase if employees
share their ideas and values with each other. A leader is one who can give
reward to his employees, motivate their employees towards task achievement,
giving incentives; give moral support so that employees put more effort to their
work (Webb, 2007).
2.1.5.3 Communication
Communication is a process through which information, ideas, and knowledge
can be exchanged. There are many ways through which communication
process can be delivered as writing, print or electronic media and through
speech. It is a tool by which people can communicate with each other with
effective communication ideas and information can be conveyed (Wanguri,
1995).organizational communication is defined as the method in which
language is used as a toll to make different kind of societal structures, such as
teams, relationships, and network((Eisenberg, 2007).
13
When management changes organizational structure those employees who are
career oriented put their extra efforts to groom themselves and make extra
commitment to maintain organizational change efforts (Rashid, 2010).
14
they are satisfied with their job which will ultimately lead to increase employee
performance(Elena,2000).When organizations invest on employee development
sessions this will improve employee’s skills, they have better carrier ,growth
and in this way cultural, economical growth will be enhanced on the society
level(Champathes,2006).
The concept of human resource management and job satisfaction has been
long lasting in organizational behavior discipline. Several studies have been
conducted to show the relationship between the two constructs. Human
resource focuses on organizational/institutional attributes as perceived by
organizational members, while job satisfaction addresses perceptions and
attitudes that people have towards and exhibit in their work. In their field
experiments, Litwin and Stringer (1968) created different climates, and
discovered that these contributed to different levels of employee satisfaction.
15
2.1.7 The Conceptual Frameworks of the Research
The conceptual frame work for this study was developed based upon or related
to the concepts or convenient to the statement of the problems, objectives and
research questions research want to answer.
This frame work is suitable for the current study as it explains the relationship
between human resource practices and important variables. The frame work
involves both constructs of organizational human recourse practices and job
satisfaction and take into account the relationship between the constructs.
Gerber’s (2003) model depicts several influences on climate. It includes both
internal and external influences, which can be divided into three categories,
namely external, organizational and personal influences. The way in which
individuals observe these influences (perceptions) and form feelings about them
(feelings and attitudes) are different from group to group.
However, the model of this study was limited to internal factors involving
organizational and personal variables. In this conceptual model the human
resource practices dimensions and job satisfactions are either positively or
negatively perceived by organizational and biographical variables. It is theorized
that these variables potentially affect the organization’s perceived climate
categories and employees’ job satisfaction. The frame work also depicted those
different human resource practices categories that can influence employees’ job
satisfaction.
16
Independent Variables
Demographic factors
Dependent Variable
Salary and benefit
Package
Job satisfaction
Leadership
Interpersonal
relationship
RESEARCH METHODOLOGY
Introduction
This chapter focused on research approach, sampling design, instruments of
data collection, procedures of data collection, data analysis procedures and
validity and reliability test.
In order to answer the research questions and achieve the stated objectives,
the study used a combination of descriptive and casual research designs. As it
is clearly annexed the second part from question number1 up to 29 are all
about examining the practices of human resource managements practices in
captioned town. Therefore, in order to analyze the existing situation under
consideration, descriptive research design was employed. Moreover, the third
part of the annexed questioners showed as the qualitative data obtained from
the administration also used for this study. On the other hand, causal research
design was employed for the relation between the effects of human resource
practices on employee job satisfaction. Causal research is designed to collect
raw data and create data structures and information that will allow the
decision maker or researcher to model cause-and-effect relationships between
two or more decision variables (Hair et al.1998).
The research also used a cross sectional survey because the data was collected
at one point in a time to compare the effect of human resources practices on
the job satisfaction. Cross sectional design is a study in which various
segments of population are sampled at a single point in a time (Zikmend,
2003).
18
3.3. Target Population
The population of the study was the selected offices under Burayu town
administration (Finance and Economic Development Bureau, Civil Service
Bureau, Trade and Market Development Bureau, Land Development
administration Bureau, Communication Bureau, Youth and Sport Bureau,
Education Bureau, Water and Irrigation Bureau).
Source: Burayu town administration civil service bureau and own computation
19
3.5. Data Type and Source
The study was employed both qualitative and quantitative data. The qualitative
data are those collected through interview whereas quantitative data are the
objective items which were collected through questionnaires. Regarding the
data source, the study used both primary and secondary sources.
Primary source of data were employed of the sampled and secondary was the
materials used (referred) from the administration office.
The main tool used in this study for data collection was a questionnaire. A
questionnaire is a formalized set of questions for obtaining information from
respondents that translate the researcher’s information needs into a set of
specific questions that respondents are willing and able to answer.
20
3.8. Data Processing and Analysis
Y = X0 +X1 (SBP) +X2 (IPRSH) +X3 (COC) +X4 (TD) X5 (PA) +X6 (ADMLS) +e
Where: Y= Employee Job satisfaction.
SBP = Salary, Benefit and Packages.
IPRSH = Interpersonal Relationship.
21
COC = Communication.
TD =Training and Development
PA=Performance Appraisal
ADMLS = Administration and leadership styles
X0= the constant parameter.
X1= Salary, Benefit and Packages.
X2= Interpersonal Relationship.
X3= Communication
X4= Training and Development
X5= Performance Appraisal
X6= Administration and leadership styles
e=error term
In accordance with the above mathematical model the constructed hypothesis
were tested by considering significance level of each constant parameter in
multiple regression analysis.
In any research results, the issue of validity and reliability are important
confidence measures. The validity of the instrument was and found valid
Cronbach's alpha is one of the most commonly accepted measures of reliability.
It measures the internal consistency of the items in a scale. It indicates that
the extent to which the items in a questionnaire are related to each other
Fubara and Mguni, (2005). The normal range of Cronbach’s coefficient alpha
value ranges between 0-1 and the higher values reflects a higher degree of
internal consistency. Different authors accept different values of this test in
order to achieve internal reliability, but, satisfactory value is required to be
more than 0.6 for the scale to be reliable (Sekaran, 2003 as cited by Sirbel,
2012).
22
Table 3.2 Cronbach's Alpha for each field of the questionnaire
In the study the Cronbach’s alpha coefficient was calculated for each field of
the questionnaire. Table 3.1 above shows the values of Cronbach’s Alpha for
each variable of the questionnaire and the entire questionnaire. For the fields,
the values Cronbach's Alpha ranged between 0.568 and 0.857 and the overall
Cronbach’s Alpha for entire questioner was 0.911. This range is considered
high. Hence, the result ensures the reliability of each field of the questionnaire
Cronbach's Alpha for the entire questionnaire equals 0.911 which indicates
very good reliability. Therefore, it can be said that the above questionnaire is
adequately reliable.
23
CHAPTER FOUR
Introduction
This chapter deals with presentation and discussion of the statistical result of
both the descriptive and inferential statistics. Moreover, the correlation,
regression analysis and hypothesis testing were conducted for the studied
variables.
For this study a questionnaire with 39 and 5 close-ended items for general
(objective) and demographic related respectively were used to collect
information from employees of Burayu town administration regarding the
independent variables (Salary benefit and Packages, Interpersonal relationship
among the employee, leadership, training and development offered,
Communication, performance appraisal, administration of the organization
issues) and the dependent variable Job satisfaction.
24
Table 4.1: Number of distributed, collected and Response rate
Sr. Response
No. Bureaus Distributed Returned Rate in (%)
Finance and Economic
1 Development 44 39 88.6
2 Civil Service 25 21 84.0
Land Development
3 administration 32 29 90.6
Trade and Market
4 Development 33 30 90.9
5 Communication 23 21 91.3
6 Youth and Sport 28 26 92.9
7 Education 27 26 96.3
8 Water and Irrigation 29 29 100.0
221
Total
Source: Own Survey (May, 2017) n=221
As shown in the Table 4.1 below, a total of 241 questionnaires were distributed
to employees of captioned administration. Of the total dispatched
questionnaires, 221 (91.7%) were filled up and returned. This clearly indicated
that by considering 5% contingency held for non respondents, 96.1% of the
sample was cooperative and responds accordingly.
25
4.2. Demographic Characteristics of the Respondent
As shown in table 4.2 above regarding genders, 133 (60.2%) are male and the
remaining 88 (39.8%) are females’ .this shows gender distribution in the
sample was not equal.
As indicated in the 4.2 above concerning marital status, 125 (56.6%) are
unmarried (single), 90 (40.7%) are married and 6 (2.7%) are divorced.
26
This describes majority of the respondents are single and not engaged in
marriage so far. As indicated in the same table 4.2 above, 167 (75.6%) of the
respondents are BA degree holders, 30(13.6%) are Diploma holder, 17 (7.7%)
are masters, 7(3.2%) less than Diploma holders.
The current position (Job level) of the employee was also other demographic
variables assessed. Accordingly, out of 221 respondents majority of them
160(72.4%) are Expert (professionals).whereas 31(14%) are management and
the rest 30(13.6%) are supportive staffs such as Guard, Messengers and
typewriters which clearly shows as almost all operating units were participated.
again same table 4.2 above indicates that the majority, 106 (48%) of the
respondents had been working in the administration for the last 5 or less
years. Similarly, 52 (23.5%) and 39 (17.6%) of them are working in the
captioned administration for the year between 6 - 10 and 11 to 15years,
respectively. In the same situation, 24(10.9%) individuals respond as they have
been working in the same administration for more than 15years. This indicates
that most of the employees are joined the organization in the last five years and
the number of employee who served in the organization for more than 15 years
are very stumpy.
27
In the analysis to make the interpretations understandable, the mean scores
are converted into percentage scores using the formula, (Rao and Abraham,
1991) cited in Mulatu Takele (2013): as
Std.
Deviation % age
N Mean
1. I am fairly paid for 221 2.90 1.11 47.62
my position
2. I am satisfied with 221 2.85 1.05 46.15
my salary package
3. My salary package
is fair in
comparison with 221 2.64 1.14
similar positions in 41.06
the market
4. I am satisfied with 221 2.59 1.06
my benefit 39.71
packages
Overall score 221 2.75 1.09 43.64
28
As clearly shown in the table 4.3 above the percentage score result of
descriptive statics for SBP ranges from 39.71% to 47.62%.
As indicated in the above (table 4.3) the mean value for the item1 is
2.9(standard Deviation=1.11)which is below average .Also for item 2 the mean
value is 2.85(standard deviation 1.05),which is also below average. For item 3
the mean value is 2.64(standard deviation 1.14) again which is below the
average. For item 4 the mean value is 2.58(standard deviation 1.06) which is
below the average value too. All the values for each items are below average, as
well as the overall mean value is 2.75 (1.09 standard deviation) this shows that
employees have poor perception on SBP.
On the other hand, the interview made with concerned government organ of the
bureaus related with SBP, the SBP their organization provides was obsolete
and currently administration of newly adopted SBP is under progress. This
poorly perceived organizational climate is mostly originated from already
obsolete SBP used and the position in which most of the employee is currently
possessed is expert (which is less than salary, benefit and packages offered for
the management).
29
Table 4.4: Perception of the employees on Interpersonal relationship
Std.
Deviati %Age
Questionnaires’ Items N Mean on
1. I am Happy with my coworkers 221 3.87 .93 71.8
30
4.4.3 Employees’ Perception on leadership Organization’s Dimension.
As the statistical results on Table 4.5 above depicts, the mean results indicates
employees are slightly perceived similarly in all items of OCV. As clearly shown
in the above table, the respondents’ immediate leader sees and positively
Reponses for issues raised to s/he weight more than others 59.95% with
3.3982 mean scores and1.02016 standard deviation.
31
The next highest Leadership item of Human Resource practices variable is the
responsiveness of the respondents’ immediate leader for the customers 59.84%
with mean sores =3.3937 and 0.9880 standard deviation.
From both sceneries it is possible to say the immediate leader for the
administration under consideration responds positively to employees and
customers is supported by majority of respondents which is slightly higher
than the minimum standard required for the conducive environmental
condition for smooth operation of an organization. Moreover, the other two
interrelated items of Leadership (My immediate leader is knowledgeable and
handles well his/her work & the management style of my immediate leader is
generally participative) were also almost similarly and significantly supported
by the respondents. It is also inferred from the above table, even though the
immediate leader of the respondents has respond positively for employees and
customers as well as had skills and knowledge to do his/her work, as there
were strong leadership style is existed perceived by respondents
simultaneously.
32
Table 4.6: Perception of the employee’s on Training and Development
Std.
Deviat
%age
Questionnaires’ Items N Mean ion
Training and development
is given for employee 2.89 1.12 47.4
221
based on job needs
Development and Training
is provided based on 2.98
221 1.27 49.5
political ideology
Clear promotion criteria
are available in the 221 2.9 1.01 47.5
organization
Valid N (listwise) 221
Overall scores 221 2.92 1.13 48.2
Source: Own Survey (May, 2017) n=221
As it is shown in the Table 4.6 above, in this section of the questionnaire the
mean result indicates employee’s perception on Training and Development
provision slightly below the minimum standard. As shown in the same table,
the statement training and development given based on political ideology of the
employees supported by majority of the respondents (49.5) with mean
score=2.9819 and standard deviation 1.27908. moreover, the statement there
is clear promotion are available in the organization and T and D given based on
job needs were perceived poorly by the respondents 47.5 and 47.4 respectively
with mean=2.9005, standard deviation=1.00411 & Mean =2.8959,standered
deviation 1.12534 correspondingly.
33
On the other hand information gathered through interview from concerned
government organ of the municipality explained that even though awareness
and stands to achieve government’s policy is a crucial and main point, in most
cases training rather than related with political ideology usually given based on
job needs as deemed necessarily.
Std. % age
Deviati
Questionnaires’ Items N Mean on
There is clear communication among employees in my 221 3.35 1.01 58.90
Bureau
As it can be seen from Table 4.7 above, the highest mean value from employees
perception was attached to the item “I freely communicated with my staff as
a whole” and adequately supported by 66.4% with mean scores =3.66561 and
standard deviation =1.02217 where as the rest items considered (there is clear
34
communication among employees, the communication and strategic plan in the
organization is transparent) 58.9 and 58.3 respectively slightly balanced with
the item stated as the organization spent too much times on unessential
issues(58.5).
35
Table 4.8: Perception of the employees on Performance Appraisal
Std. % age
Deviati
Questionnaires’ Items N Mean on
My performance is appraised based on pre planned
221 3.39 0.93 60.0
activities and actual performance
I am satisfied with the way my work is evaluated 221 3.11 0.93 52.9
The overall average score 53.9% with average mean=3.15 and average standard
deviation=0.94 shows as majority of the respondents perceived the items of
performance appraisal Human Resource practices which is around the
minimum requirement is moderately and slightly above the standard provided
that the appraisal result and employee performance is really match and
practical is poorly practiced and should not override.
36
On the other hand, the interview made with municipality head related with the
issues (performance Appraisal and employees’ complain management office) the
organization practicing the practical effort wise measured performance
appraisals though the full administration of the system is very difficult not only
for their municipality but also for the country(Ethiopia) as a whole.
37
Table 4.9Perception of the employees on Job satisfaction
Std.
N Mean Deviation
% age
I find my work challenging 219 3.47 1.02 62.0
I find my work is
221 3.47 1.05 61.8
interesting
I am satisfied with my
221 3.302 1.04 57.6
chances for promotion
As shown in the above table, the variable (items) sated as “I am happy with the
way my co-workers get along with each other” weight (supported) by the
respondents more than other items which is 65% with mean= 3.6018,
38
Standard Deviation =0.93 which is greater than minimum requirement
stipulated. Moreover, the items stated as “I sometimes feel my job is
meaningless” is poorly supported by the employee (respondents) only40.3%
with mean score=2.6126 and standard deviation=1.19
As the statistical results on Table 4.9 above depicts, the moderated mean of
items in this section was attached to the items that are intended to address
employee’s perception towards work challenging, Job interesting, feeling on
organization’s future feeling, motivation aspects which account approximately
around 61%. Additionally, the statement “I am satisfied with my chance of
promotion is poorly supported compare to the others variables.
The overall average score of the job satisfaction ten items assessed (10) shows
the job satisfaction in the area under consideration is supported slightly by
majority the respondents 57% with averaged mean score=3.2924 and standard
deviation=1.0503 which is somewhat above minimum requirement though
significant items were unsupported by a number respondents.
In this study, to process the correlation analysis, data from the scale typed
questionnaires were entered in to the SPSS software version 24.
Pearson correlation coefficient is used to specify the strength and the direction
of the relationship between the independent variable (Salary, benefit and
package, interpersonal relationship, leadership, training & development,
communication, performance appraisal and administration and leadership
style) and the dependent variable i.e. Job satisfaction.
39
Table 4.10: Correlations between HR practices and Job satisfaction
Correlations
T
SBP IPRSH LSH &D COC PA ADLDSH JS
SBP Pearson 1 .240** .249** .281** .273** .421** .324** .407**
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
IPRSH Pearson .240** 1 .490** .402** .388** .394** .510** .297**
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
** ** ** ** ** **
LSH Pearson .249 .490 1 .356 .627 .727 .638 .509**
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
** ** ** ** ** **
T and D Pearson .281 .402 .356 1 .557 .470 .477 .267**
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
** ** ** ** ** **
COC Pearson .273 .388 .627 .557 1 .643 .575 .460**
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
** ** ** ** ** **
PA Pearson .421 .394 .727 .470 .643 1 .614 .587**
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
ADLDSH Pearson .324** .510** .638** .477** .575** .614** 1 .336**
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
JS Pearson .407** .297** .509** .267** .460** .587** .336** 1
Correlation
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
N 221 221 221 221 221 221 221 221
40
Training and development. The findings of this research supported the earlier
works on this subject matter with slightly differed on strength of the correlation
with finding of research done by Mulatu Takele et al, 2013, Fikadu Abdisa et
al,2014. Similarly a hypotheses attempt to approve the relationship or
correlation between organizational climate and job satisfaction is positively
supported.
By taking the strength of their relationship, the finding further indicates that in
the captioned organization (municipality) the correlation among the practice of
human resources and Job satisfaction ordered as follow; Performance
Appraisal, Leadership, communication, salary benefit & packages,
Interpersonal relationship administration styles and Training &development
from highly correlation to least correlation. These results also correlate with
the studies conducted by Field & Abelson (1982), Hellriegel & Slocum (1974)
Kerego and Mthupa (1997), FikaduAbdisa (2014) and Solomon Markos
&TekleAbeba (2016).
The regression analysis was conducted to know by how much the independent
variable explains the dependent variable. In this study, regression was
employed to examine the effect of the independent OCVs such as salary benefit
and packages, Interpersonal relationship, Leadership, Training and
Development, communication and performance Appraisal on dependent
variable Job satisfaction.
Unstandardized Standardized
Coefficients Coefficients
Std.
B Error Beta t Sig.
Model
1 (Constant) 1.445 0.216 6.678 0.000
41
Salary, Benefit 0.138 0.037 0.223 3.789 0.000
and Packages
Interpersonal 0.049 0.056 0.057 0.884 0.377
relationship
Leadership 0.143 0.064 0.196 2.231 0.027
Training and -0.053 0.055 -0.064 - 0.343
Development 0.951
Communication 0.155 0.078 0.155 1.977 0.049
Performance 0.315 0.076 0.365 4.134 0.000
Appraisal
Administration -0.167 0.074 -0.172 - 0.026
and Leadership 2.247
styles
Source on survey(may,2017)
Model Summary
ANOVA
Sum of Mean
Model Squares df Square F Sig.
1 Regression 33.058 7 4.723 21.814 .000
Residual 46.114 213 0.216
Total 79.172 220
a. Dependent Variable: Job Satisfaction
b. Predictors: (Constant), Administration and Leadership styles, Salary,
Benefit and Packages, Training and Development, Interpersonal relationship,
Communication, Leadership , Performance Appraisal
42
The values of the unstandardized Beta Coefficients (β) indicate the effects of
each independent variable on dependent variable. Furthermore, the values of
the unstandardized Beta Coefficients, indicate which independent variable
(OCV) makes the strongest contribution to explain the dependent variable (Job
satisfaction), when the variance explained by all other independent variables in
the model is controlled. The t value and the sig (p) value indicate whether the
independent variable is significantly contributing to the prediction of the
dependent variable. This correlates with the results of the previous studies of
Eweet (2001).
As clearly shown in the above table 4.11, an Human Resource practices (salary,
Benefits & packages, Communication, leadership, performance Appraisal)
significantly affects the job satisfaction of employees. However the extent of
their effect was varies ranging from salary benefit and packages and
Performance Appraisal are the highest to administration and leadership stales
the least one. On the other hand two variables (Inter personal relationship and
Training & Development perceived by majority of the respondents has no
significant effect on their job satisfaction. Therefore, the Null hypothesis there
is no significant effect of these variables on employees’ job satisfaction was
rejected and an alternative (there is statically significant effect of an
organizational climate on the employee job satisfaction) was accepted.
43
Table 4.12. Regression result of Demographic variables on Job
satisfaction.
Unstandardized Standardized
Coefficients Coefficients
Std.
B Error Beta t Sig.
Model
1 (Constant) 3.458 0.336 10.299 0.000
As clearly shown in the above table 4.11 the respondents perception on their
job satisfaction has no significant difference by demographic variables (Gender,
Marital status) with p-values 0.449 and 0.650 respectively which is higher
44
than 0.05.this result support the study done by Me sempane et al(2002), and
Tekile Abeba& Solomon Markos (2016).
As depicted under table 4.11 to know the impact and variances of the positions
(employee current job level) effects on their job satisfaction, there was no
significant scores scored for the item(current position of an employee) which is
p-value .560.i.e.. There is no statically significant effect happened. Hence Null
hypothesis there is no statically difference in perception on Human Resource
practices and job satisfaction among the employees that varies by their job
level or positions was supported.
Hypothesis 3.1
45
To know the employee’s tenure in the municipality under considerations effect
on Human Resource practices and weather it is varies among the employees
based on the experiences the possessed again regression analysis applied as
put in the same table (table 4.11). it clearly shows as there is no significant
employees’ job satisfaction deviate (differ) by the position they have with p-
value 0.189 which is greater than 0.05.Hence, the null hypothesis stated as
(Ho) There is no statically difference in perception on Human Resource
practices and job satisfaction among the employees that varies by their
experiences/tenure was accepted and the alternative hypothesis (H1) rejected.
46
CHAPTER FIVE
The main purpose of this study is to explore the effect of human resource
practicing on employee job satisfaction in Burayu town. To examine the effect
of these HR practices, the specific objectives were:
The reliability test shown in the Table 3.1 illustrates all the quaternaries
were reliable and acceptable with Cronbach's Alpha result 0.911.
47
Related to the demographic characteristics Table 4.2 specify that majority of
the employees 133(60.2%) were male and the rest 80(39.8) were female
employees. The major Findings are;
48
Regarding the hypothesis as Table 4.13 illustrate since all the beta
coefficients were found significant all the hypothesis in the study are
accepted except for the first hypothesis.
Generally, the finding revealed that, performance appraisal and
Administration & leadership styles is found being the most dominant
dimension in determining the variation of Job satisfaction in town under
consideration.
5.2. Conclusion
49
satisfaction. Similarly, from multiple regression analysis result that variability
in Job Satisfaction is resulted from the variability in practicing of HR variables.
Hence, from this the study concludes that the employees’ job satisfaction
which intern in high performance for the overall goal of the organization and
the country as a whole is determined by the emphasis that the administration
(municipality) and government in general give to each dimensions of Human
Resource practices stipulated formerly.
Finally, the results of this study revealed that human resource practicing
variables implementation influences the job satisfaction of employees. Hence, it
can be concluded that job satisfaction of an employees in the arena under
consideration was not admirable due to low practice of human resource
practicing.
50
The administration should develop realistic and applicable system of
performance appraisal that participate employees from its early planning
and owned by all stakeholders.
The administration need to identify, differentiate and plan training need
assessment before conducting (giving) training and development
opportunity for the employees though currently few encouragements is
seen. Hence, Job based (needs) provision of training and development
with rational, transparent way system should be applied.
In order to improve the salary, benefit and packages the administration
should quickly adopt the newly developed salary and benefit packages
reform by the government before the employees more and more tedious
More over an administration should ensures none financial benefits like
life insurance, health care and public transportation services.
The administration (Burayu town) need to give due attention for all
grievances arises from different stake holders and bargaining with the
unions of employees so that the opportunity to listening and lessoning
opportunity will be created which adversely improve and create
awareness between employee and employer.
I.e. via good and two ways of communication (participative) an
organization can create a conducive employee Employer relationship
(Integration).
In addition to improving poorly perceived Human Resource practices, an
administration should appreciate their strength, to be continued and
participatory; servant serve administration leadership styles should be
followed.
51
5.4. Recommendations for the Employees of an administration (Burayu)
52
6. References
Afalobi, O. A. (2005). The Influence of Organizational climate and Locus of
control on Job Satisfaction. International Journal of Development Research Vol.4
May, 2014.
Ahmed, Z.U. The impact of organizational change on the employee’s
performance in banking sector of Pakistan. Ethiopian International Journal of
Multidisciplinary Research 2013; 1(1): 1-12.
Batool, (2013). An Empirical Study on Effect of Transformational Leadership
IOSR Journal of Business and Management (IOSR-JBM), 38-44.
Brief, A.P. (1998). Attitudes in and around organizations thousand Oaks, CA:
Sage Publication.
Dahlberg, L. C. (2007). Supervisor-Subordinate communication during
organizational change: The effects in employee trust and morale. Queens
University of Charlotte, 1-13.
53
Farokih (2003). Factors Influencing Organizational Climate. International
Monthly Refereed Journal of Research in Management & Technology, Volume 3.
54
Lafollette (1975). Is Satisfaction Redundant with Organizational Climate
Organizational Behavior and Human Performance. 13: 257-298.
55
Pritchard, R (1993).The Effects of Organizational Climate on Managerial Job
Performance and Job Satisfaction.
Qanke Development, Magazine prepared for Burayu town administration Vol.
2, 2007
Rashid, H., & Zhao, L. (2010).The significance of career commitment in
generating commitment to organizational change among information
technology personnel. journal, 13 (1), 111-131.
Robbins, S.P. (1998). Organizational behavior: Concepts, controversies and
applications (8thed.). Engel wood Cliffs, NJ: Prentice-Hall.
56
Schuler (2007). Strategic Human Resource management (second edition).
Blackwell Publishing Ltd.
West, (1999). A path to profit Team work at the top. Centerpiece, 4, 6–11.
57
APPENDIXES
Appendix I
St. Mary’s University
MBA Program
Survey Questionnaire
Dear respondent,
The purpose of this questionnaire is to collect data about “Relationship
Between Human Resource practices and employee Job satisfaction “for the
partial fulfillment of MA degree in General MBA. I kindly request you to provide
me reliable information for the quality of my work. Thus, your response for
each question is used only for research purpose, and its confidentiality is
preserved.
Thank you in advance for your cooperation.
Fikiru Geda
General Direction
No need to write your name
Read each question and put () on the given space/ box.
For any ambiguity do not hesitate to Contact me via 09-20-64-72-90
58
Part Two:
General questions related with the topic (objectives)
Please put tick (√) in the table provided for each given statement using the
following scales
59
18 I am freely communicate with my staff as whole
19 my organization spends too much time on unessential
issue/problems
Performance Appraisal
20 My performance is appraised based on pre planned activities
and actual performance
21 Appraisal result and employee performance is really match and
practical
22 I am satisfied with the way my work is evaluated
23 I am satisfied with the recognition given to my good work
Administration and Leadership styles
24 Employee spent much time on unnecessary meeting
25 timely meeting had adversely affect the performance of the
organization
26 My immediate leader is knowledgeable and productive
27 My immediate supervisor is clear and help full
28 I am clear with my job and the direction is given
from my immediate supervisor
29 the rule and regulation of my organization is realistic and
applicable
Job Satisfaction
30 I find the organization cares for its employees
31 I find the organization retains its best and experienced
employees
32 I find my work challenging
33 I find my work is interesting
34 I feel my future in the organization is bright
35 I am motivated by job and am happy with it
36 I am happy with the way my co-workers get along with each other
37 I am satisfied with my chances for promotion
38 I do not feel that the work I do is appreciated.
39 I sometimes feel my job is meaningless
Thank you!
60
PART III: Interview Questions (Management)
1. Do you think that, your employees are satisfied with your administration’s
Salary, Benefit and Packages and what attempts are done to satisfy your
organization’s backbone (employees)?
2. Do you think that your employees are good interrelation ship with each
other and with your administration?
3. What are the preconditions required to give Training and Development for
the employees in your administration?
4. Do you think that, the administration and leadership styles are self servant
or civil servant) is there smooth and participatory leading ways in your
administration?
5. Does your organization believe that there is dual and healthy
communication within your staffs?
6. Is that the performance Appraisal of your organization is pre-known by all
employees and owned before performance appraisal is measured?
7. What do you think about the environmental climates in which your
employees are operating to achieve the organizations over all goals and
missions?
8. Do you think that your employees generally satisfied with their jobs with
currently practicing HR?
61
Appendix II
Mean Standard Deviation and level of agreement results of Salary, Benefit
and Packages
Descriptive Statistics
Std.
N Mean
Deviation
I am fairly paid for my position 221 2.9050 1.10988
I am satisfied with my salary package 221 2.8462 1.05479
My salary package is fair in comparison
221 2.6425 1.14169
with similar positions in the market
I am satisfied with my benefit packages 221 2.5882 1.06500
Valid N (listwise) 221
Descriptive Statistics
Std.
N Mean Deviation
I am Happy with my coworkers 221 3.8733 0.93530
I am solving the problem with my team 221 3.7421 1.03199
member
There is fear among the team members 221 3.2398 1.28327
Valid N (listwise) 221
Descriptive Statistics
Std.
N Mean Deviation
My immediate leader sees and positively 221 3.3982 1.02016
responses to issues I raise to him/her
The management style of my immediate 221 3.2851 1.01139
leader is generally participative
My immediate leader reflects strong 221 3.2081 1.04539
leadership skills
My immediate leader positively 221 3.3937 0.98800
62
responses to customers
My immediate leader is knowledgeable 221 3.2941 1.00878
and handles well his/her work
Valid N (listwise) 221
Descriptive Statistics
Std.
N Mean Deviation
Training and development is given for 221 2.8959 1.12534
employee based on job needs
Development and Training is provided 221 2.9819 1.27908
based on political ideology
Clear promotion criteria are available in 221 2.9005 1.00411
the organization
Valid N (listwise) 221
Descriptive Statistics
Std.
N Mean Deviation
There is clear communication among 221 3.3575 1.01076
employees in my Bureau
The communication and strategic plan 221 3.3303 0.96032
of my organization is transparent and
two ways
I am freely communicate with my staff 221 3.6561 1.02217
as whole
my organization spends too much time 221 3.3394 1.08198
on unessential issue/problems
Valid N (listwise) 221
63
Mean and Standard Deviation Results of Performance Apriasl Dimension
Descriptive Statistics
Std.
N Mean Deviation
My performance is appraised based on 221 3.3982 0.93166
pre planned activities and actual
performance
Appraisal result and employee 221 2.9050 0.93177
performance is really match and
practical
I am satisfied with the way my work is 221 3.1176 0.93649
evaluated
I am satisfied with the recognition given 221 3.2036 0.99507
to my good work
Valid N (listwise) 221
Descriptive Statistics
Std.
N Mean Deviation
Employee spent much time on 221 3.1855 1.30627
unnecessary meeting
timely meeting had adversely affect the 221 3.2760 1.14844
performance of the organization
My immediate leader is knowledgeable 221 3.2760 0.96804
and productive
My immediate supervisor is clear and 221 3.2579 0.90025
help full
I am clear with my job and the direction 221 3.3710 0.96195
is given
the rule and regulation of my 221 3.1629 1.12034
organization is realistic and applicable
Valid N (listwise) 221
64
Mean and Standard Deviation Results of Job Satisfaction
Descriptive Statistics
Std.
N Mean Deviation
I find the organization cares for its 221 3.2217 1.00031
employees
I find the organization retains its best 221 3.4118 0.91832
and experienced employees
I find my work challenging 219 3.4795 1.02415
I find my work is interesting 221 3.4706 1.05971
I feel my future in the organization is 221 3.4163 1.10310
bright
I am motivated by job and am happy 221 3.4434 1.10071
with it
I am happy with the way my co-workers 221 3.6018 0.93653
get along with each other
I am satisfied with my chances for 221 3.3032 1.04161
promotion
I do not feel that the work I do is 218 2.9633 1.11897
appreciated
I sometimes feel my job is meaningless 191 2.6126 1.19941
Valid N (listwise) 186
Descriptive Statistics
Std.
N Mean Deviation
Salary, Benefit and Packages 221 2.7455 0.96500
Interpersonal relationship 221 3.6184 0.69317
Leadership 221 3.3158 0.81974
Training and Development 221 2.9261 0.73173
Communication 221 3.4208 0.59920
Performance Appraisal 221 3.1561 0.69491
Administration and Leadership styles 221 3.2549 0.62088
Job Satisfaction 221 3.3071 0.59990
Valid N (listwise) 221
65
Correlations
IPRS T ADLDS
SBP H LSH &D COC PA H JS
SBP Pearson 1 .240** .249 .281* .273* .421* .324** .407
Correlatio ** * * * **
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.000 0.00
tailed) 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
IPRSH Pearson .240 1 .490 .402* .388* .394* .510** .297
Correlatio ** ** * * * **
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.000 0.00
tailed) 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
LSH Pearson .249 .490** 1 .356* .627* .727* .638** .509
Correlatio ** * * * **
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.000 0.00
tailed) 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
T and Pearson .281 .402** .356 1 .557* .470* .477** .267
D Correlatio ** ** * * **
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.000 0.00
tailed) 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
COC Pearson .273 .388** .627 .557* 1 .643* .575** .460
Correlatio ** ** * * **
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.000 0.00
tailed) 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
PA Pearson .421 .394** .727 .470* .643* 1 .614** .587
Correlatio ** ** * * **
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.000 0.00
tailed) 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
ADLDS Pearson .324 .510** .638 .477* .575* .614* 1 .336
H Correlatio ** ** * * * **
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
tailed) 0 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
66
JS Pearson .407 .297** .509 .267* .460* .587* .336** 1
Correlatio ** ** * * *
n
Sig. (2- 0.00 0.00 0.00 0.00 0.00 0.00 0.000
tailed) 0 0 0 0 0 0
N 221 221 221 221 221 221 221 221
**. Correlation is significant at the 0.01 level (2-tailed).
Model Summary
ANOVA
Mean
Sum of Squar
Model Squares df e F Sig.
1 Regression 33.058 7 4.723 21.81 .000
4
Residual 46.114 213 0.216
Total 79.172 220
a. Dependent Variable: Job Satisfaction
b. Predictors: (Constant), Administration and Leadership styles, Salary,
Benefit and Packages, Training and Development, Interpersonal
relationship, Communication, Leadership , Performance Appraisal
67
Coefficients
Unstandardized Standardized
Coefficients Coefficients
Std.
Model B Error Beta t Sig.
1 (Constant) 1.445 0.216 6.678 0.000
Salary, Benefit 0.138 0.037 0.223 3.789 0.000
and Packages
Interpersonal 0.049 0.056 0.057 0.884 0.377
relationship
Leadership 0.143 0.064 0.196 2.231 0.027
Training and -0.053 0.055 -0.064 - 0.343
Development 0.951
Reliability
Salary, Benefit and Packages
Reliability Statistics
Cronbach's Alpha N of Items
0.905 4
68
Interpersonal relationship
Reliability Statistics
Cronbach's
Alpha N of Items
0.56 3
Leadership
Reliability Statistics
Cronbach's
Alpha N of Items
0.867 5
69
Reliability Statistics
Cronbach's
Alpha N of Items
0.283 3
Communication
Reliability Statistics
Cronbach's
Alpha N of Items
0.368 4
Performance Appraisal
Reliability Statistics
Cronbach's
Alpha N of Items
0.712 4
70
Administration and Leadership styles
Reliability Statistics
Cronbach's
Alpha N of Items
0.599 6
Jab Satisfaction
Reliability Statistics
Cronbach's
Alpha N of Items
0.751 10
All Variables
71
Reliability Statistics
Cronbach's
Alpha N of Items
0.911 39
72