EFFECTS OF STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICE ON ORGANIZATIONAL COMPETITIVENESS THE CASEOF COMMERCIAL BANKS OPERATING IN WOLKITE CITY

Abstract

The general objective of this study was to examine the effect of SHRM practice on organizational competitiveness in commercial banks in Wolkite town branches. An explanatory and descriptive research design was employed. A sample size of 179 was drawn from the 325 employees of twenty commercial banks. The respondents were chosen using stratified random sampling and basic random sampling select the respondents. The study used questionnaires as a tool for data collection. Pearson correlation and multiple linear regression analysis were employed to estimate the causal relationships between independent and dependent variables. The analysis is done using SPSS. The responses of the respondents were analyzed using descriptive Statistics, correlation, and regression. The findings of the study showed that strategic recruitment and selection, strategic reward and compensation, strategic training and development and strategic performance appraisal positively influence organizational competitiveness. hypothesis in relation to these factors were also accepted. Strategic reward and compensation were the most dominant strategic human resource management practices that supply more for competitiveness. the regression model explained 55.1% of the variance in organizational competitiveness (R² = 0.551), demonstrating the effectiveness of SHRM practices in enhancing competitiveness. So, it has been recommended that the bank Develop a strategic recruitment process that aligns with organizational goals to attract and retain top talent Implement competitive and equitable compensation packages to effectively origination competitiveness, thereby improving overall performance Regularly assess training needs and establish programs to enhance employee skills, fostering adaptability and innovation in the workforce Create a comprehensive performance appraisal system that motivates employees, aligns their objectives with organizational goals, and provides constructive feedback for continuous improvement competitiveness of the bank.