Abstract:
The aim of this study was to examine the assessment of strategic human resource management practices and its effects on organizational performance: the case of manufacturing industries in Amhara region Debre Berhan town. The study used six SHRM practices using the 1998, Pfeffer’s classification. as independent variables such as recruitment and selection, training and development, employee participation, performance management system; promotion practices and compensation and reward system and organizational performance as a dependent variable. The research design of the study was both explanatory and descriptive research design. A total of 156 questions were distributed to respondents out of which 144 question were returned for analysis. Data was mainly collected through both primary and secondary sources. The collected data was analyzed by using SPSS. Version 22.00. The conceptual frame work of the study shows the relationship between strategic human resource management and organizational performance and its effects on organizational performance. The study uses correlation analysis to test the hypotheses. The study also used regression analysis to predict the impacts of strategic HRM on organizational performance in manufacturing industries. The result shows that SHRM practices except compensation and reward system SHRM practices are significantly affect organizational performance.. The R2 result of the study shows that the six SHRM practices explain 34.1% of organizational performance.
