Unity University Faculty of Business and Economics Department Of Marketing

Management

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT PRACTICES WITHIN THE

ORGANIZATION OF BANK OF ABYSSINIA (BOA)

Distributed By: Kaleb Zeru

ID No: UU90286R

Submitted To: Ins. Wondosen

Submission Date: May 21/2024
Table of Content

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INTRODUCTION...........................................................................................................................1
1. Background of the Company.......................................................................................................3
1.1. General objective of the reports............................................................................................4
1.2. Summary of objectives of HRP............................................................................................5
2. METHODOLOGY......................................................................................................................5
2.1. Qualitative.............................................................................................................................6
3. Target population of the study.....................................................................................................6
4. Source of Data.............................................................................................................................6
4.1. Primary source of data..........................................................................................................6
4.2. Secondary source of data......................................................................................................6
5. Method of data analysis and presentation....................................................................................6
5.1. Top level manager................................................................................................................7
5.2. Middle-level manager...........................................................................................................7
5.3. One clerical staff member.....................................................................................................7
6. Job Analysis and Design............................................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

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 INTRODUCTION
Human Resource (HR) is the most important asset for any organization. It is the source of
achieving goals and increasing the productivity and competitive advantage to be successful in the
business. Greater use of HR practices is associated with higher levels of employee commitment
and contribution and is in turn linked to higher levels of productivity and quality of services.
Several studies and journals show the benefit of HR. this system provided in the organization the
human resource maintained administrating and used effectively.(Guest et al, 2000b)
Armstrong and Baron (2002) stated that: People and their collective skills, abilities, and
experience, coupled with their ability to deploy these in the interests of the employing
organization, are now recognized as making a significant contribution to organizational success
and as constituting a major source of competitive advantage. Human resource management is a
distinctive approach to employment management that seeks to achieve competitive advantage
through the strategic deployment of a highly committed and capable workforce, using an
integrated array of cultural, structural, and personnel techniques. (Storey, 1995)
Reports function Human resource management is crucial for organizational success as it relies on
effectively utilizing and mobilizing human resources. While material and financial resources are
important, they are lifeless without people to convert them into outputs. Human resources play a
vital role in achieving organizational goals and objectives by mobilizing and organizing other
resources. HR is considered the most important asset for any organization, contributing to
increased productivity, competitive advantage, and success in business. Effective HR practices
are associated with higher employee commitment, contribution, productivity, and service quality.
Implementing a well-structured HR system ensures efficient management and utilization of
human resources in organizations (Guest et al, 2000b)Armstrong and Baron (2002) stated that:
People and their collective skills, abilities, and experience, coupled with their ability to deploy
these in the interests of the employing organization, are now recognized as making a significant
contribution to organizational success and as constituting a major source of competitive
advantage. Human resource management is a distinctive approach to employment management
that seeks to achieve competitive advantage through the strategic deployment of a highly
committed and capable workforce, using an integrated array of cultural, structural, and personnel
techniques. (Storey, 1995)Human resource practices include selecting human resource needs,

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screening, recruiting, training, rewarding, appraising as well as attending to labor relations,
safety and health, and fairness concerns (Dessler, 2007).
Improving human resource management practices, such as training and growth, performance
management, compensation, and benefits management, and maintaining employee and employer
relationships, is one of the major practices used to improve a company's performance morale and
physical motivation in the organization further duties. Change in the globalization process,
human resource practices in recruiting employees also changed to include other forces such as
diversity, compensation, and benefits package (Ruona& Gibson,2011) With the expansion of
globalization and the emergence of different work cultures, it is important to implement new
scholarly concepts to improve HRM
Banks are a vital part of a nation‘s economy; they play a key role in improving efficiency by
facilitating the flows of financial assets from several to those with investment and consumption
needs. Banks greatly contribute to the establishment and sustainability of the industry by lending
money to the expansion of the industry and facilitating the diversification of the industry. The
banking system is also important since any instability in the banking system has the potential to
lead to financial instability and economic crisis. Hence, the superior performance of banks is
considered a mainstay for market economic growth. Policymakers try to ensure that the banking
system is stable and besides ensure that it is competitive and efficient. In developing countries,
like Ethiopia, a bank-dominated financial sector, when effective and efficient plays a significant
role in promoting economic growth.

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1. Background of the Company

Bank of Abyssinia (BOA) is one of Ethiopia's oldest banks, established in 1906. It transitioned
from a private bank to government ownership in 1931 and later became a privately owned bank
with the same name in 1996. BOA has experienced significant growth in capital, assets, and
customers. It operates through a board of directors, with day-to-day activities managed by the
president and vice presidents. The bank has a large branch network, digital channels, and self-
service machines. BOA's financial performance has been positive, with increasing revenue,
profit, assets, and equity. The bank aims to become the leading commercial bank in East Africa
and emphasizes HRM, including training and development for its employees. BOA also engages
in corporate social responsibility initiatives.

Human resource management is critical to the success of organizations because one of the most
important success factors in today‘s competitive business environment is an energetic,
competent, motivated, and highly committed and innovative human resource (Martin et l
2003).The functions of HRM hold great significance in the growth and overall development of
the organizations. After all, when the employees grow and develop their skills, the organization
will automatically experience growth and expansion. Some of the primary functions of HRM
include selection, training and development, compensation and benefits, performance
management, managerial relations, and labor relations.

Human resource training practice‖ identify the finding ―training and development programs are
found very relevant in improving job performance as per the response obtained from most of the
respondents.

However, it doesn't show to compile general information. Therefore, this study is intended to
review HRM practice at the Bank of BOA The previous HRM studies in BOA focus only some
part of HRM and did not cover the following HRP, recruitment and selection, and compensation
and benefit. This leads to the importance of further studies that assess more aspects of HRM.
Here by this research gave attention in describing the fact of uncovered HRM functions in the
case of BOA head office.

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1.1. General objective of the reports
Specific objective of the reports function Human resource management (HRM) in the case of
Bank of Abysinya are:

1. To report the existing HRM functions in BOA

2. To report the HRP implemented in BOA

3. To report the procedure of recruitment and selection in BOA.

1.2. Summary of objectives of HRP

Forecasting Human Resources Requirements: HRP is essential to determine the future needs of
HR in an organization. In the absence of this plan it is very difficult to provide the right kind of
people at the right time. Effective Management of Change: Proper planning is required to cope
with changes in the different aspects which affect the organization. These changes need
continuation of allocation/ reallocation and effective utilization of HR in organization.
In order to meet the expansion and other organizational activities the organizational HR planning
is essential to realizing the Organizational Goals. In Promoting Employees, HRP gives the
feedback in the form of employee data which can be used in decision-making in promotional
opportunities to be made available for the organization. The data base will provide the useful
information in identifying surplus and deficiency in human resources for effective utilization of
HR. The objective of HRP is to maintain and improve the organizational capacity to reach its
goals by developing appropriate strategies that will result in the maximum contribution of HR.

2. METHODOLOGY

This part describes the methodologies that were used in this study: the choice of particular report
designs, source of data and instruments, sampling and sampling techniques and result to analysis.

According to Kothari, C. (2004), report design is the arrangement of conditions for data
collection and analysis in a way that aims to combine relevance to the report purpose with
economy in procedure. In fact, report design is the conceptual framework within which report is
carried out; it serves as the blueprint for data collection, measurement, and analysis.

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The type of report design used is determined by the nature and purpose of the study; for this
study, a descriptive cross sectional design will be used. The descriptive research design will be
used in gathering information, the techniques for analysis, and the presentation of data that will
be collected because it tries to describe and explain the data for the purpose of describing the
nature of existing conditions and finally to describe facts in the field.

2.1. Qualitative
A qualitative report approach is a method for investigating and comprehending the meaning that
individuals or groups ascribe to a social or human problem. The report process includes
emerging questions and procedures, data typically collected in the participant's setting, inductive
data analysis building from particulars to general themes, and the researcher making
interpretations of the data's meaning (Creswell, 2007). In this study, the qualitative report the
students will be used to describe the type and quality of a subject while interpreting and
attempting to understand the qualitative aspect of the study.

3. Target population of the study

The student selected three employees from Abyssinia Bank due to time and budget constraints:
top-level of manager, one middle-level manager, and one clerical staff member.

4. Source of Data
4.1. Primary source of data
Primary data are originated by a students for the specific purpose of addressing the problem at
hand. Obtaining primary data can be expensive and time consuming (Naresh K. Malhotra, 2010).
In this report the students will be uses primary data for the entire analysis of this study. Primary
data will be gathered through the use of structured questionnaires distributed to employees of
Abyssinia bank and interview with manager.

4.2. Secondary source of data

According to Naresh K. Malhotra (2010), secondary data is data that has already been collected
for purposes other than the current problem. These records can be found quickly and cheaply.
Secondary data will be gathered from text books, journals, published articles, Abyssinia bank
periodic reports, publications, and from different literatures in the area.

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5. Method of data analysis and presentation
After collecting the relevant data the next step is data analysis collected from various sources by
using different data collection tools. In this analysis the students used descriptive data analysis
method. The data that have qualitative nature will be present in an organized paragraph which is
used to analyze content from questionnaire, interview of respondent and observation.

5.1. Top level manager

 What measures should be taken to improve HRM practices of the organization?

 What is the effect of human resource practices on employees‘performance at your bank?

 Which is the HRM implementing best performance in the organization?

 Can you identify the barriers that affect the HRM practices at your organization?

 What type of techniques your organizations apply during planning process?

5.2. Middle-level manager

 How would you describe the recruitment and selection provided by your company?

 How would you describe compensation and benefit provided by your company?

 Do you believe your organization strictly implements compensation and benefit programs
as per the manual, policy and procedure? If the answer is no how?

 What is the measure you have been taken to improve compensation and benefit package?

 The bank places the right person in the right job?

5.3. One clerical staff member

 My job responsibility and what is expected from me is clearly stated.

 The bank has generally good HRM practice.

 The human resource management planning system is clearly defined in the bank

 The means of communication on the recruitment procedure gives equal opportunity to all
the potential applicants.

 Competencies and skill required for the different job positions are well defined and used
in recruitment process
We understand on interview from the respondents that the Bank is conducting various studies at
HRM to improve itself and identify problems and increasing the organizational goal.

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Human resource seeks to create a variety of perspectives, which helps to identify defect and
minimize disruptions to work. As a result, HRM has a significant role to play in the success of
the organization, and it is often suggested that special care better.
The information we received from the interview shows that there are few obstacles in the bank,
but the questions that come to the attention of the employee are often ignored. At the same time,
we have received suggestions from the respondents that there is a serious problem with employee
motivation and that the bank shall pay attention to this and check for barriers to better
performance.

In connection with the plan, the Bank will follow its own technical procedures, to provide in its
current state.
Recruitment and selection are among the most applied in the bank activities terms of
compensation and benefits. According to the interview, the bank will implement strong
procedures in this regard.
The benefits and compensation provided by the Bank are unequalled in by any other bank, which
has a major commendation by the staff in this regard. They suggest that it contributes to better
performance.
In an interview, we observe that the bank provides timely compensation and benefits to the
employees in accordance with the organization's procedures and that they are happy with the
services provided.
The Bank's subsequent adjustment to previous benefit and compensation complaints has created
an opportunity for other organizations to attract our staff.

Lastly, Among the issues that need to be addressed in the banking system are the lack of
attention to the questions posed to the employee, there is a high workload on a few employees
and the bank has not given due attention to the grievances of the employees.
1. To improve HRM practices at Abyssinia Bank, several measures can be taken:

- Enhancing employee training and development programs to enhance their skills and
knowledge.

- Implementing a performance management system that sets clear goals, provides feedback,
and recognizes employee achievements.

- Improving communication channels to foster employee engagement and involvement.

- Establishing a comprehensive employee feedback and grievance mechanism.

- Ensuring fair and equitable HR policies and practices.

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 - Cultivating a positive work culture that promotes teamwork and collaboration.

2. Human resource practices have a significant effect on employee performance at Abyssinia

Bank. Well-implemented HR practices can lead to:

- Higher employee satisfaction and engagement levels.

- Increased productivity and efficiency in job performance.

- Achievement of individual and team goals.

- Improved quality of work and customer service.

- Enhanced employee retention and reduced turnover rates.

3. The HRM department that demonstrates the best performance at Abyssinia Bank would be
determined based on specific metrics and evaluations conducted within the organization. These
may include factors such as employee satisfaction, productivity, retention, and overall
organizational performance.

4. Barriers that can affect HRM practices at Abyssinia Bank may include:

- Limited resources and budget constraints.

- Resistance to change from employees or management.

- Misalignment between HR strategies and organizational goals.

- Inadequate communication and feedback mechanisms.

- Compliance challenges with legal and regulatory requirements.

- Limited access to training and development opportunities.

5. Abyssinia Bank applies various techniques during the planning process, which may include:

- Workforce analysis to identify current and future staffing needs.

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 - Succession planning to develop potential leaders.

- Job analysis and job design to define roles and responsibilities.

- Forecasting and budgeting to allocate resources effectively.

- Strategic workforce planning to align HR initiatives with organizational objectives.

6. The recruitment and selection process provided by Abyssinia Bank can be described as
follows:

- Job vacancies are advertised internally and externally.

- Applications are screened and candidates are shortlisted.

- Interviews, assessments, and background checks are conducted.

- The most suitable candidates are selected based on qualifications, skills, and alignment with
the bank's culture.

- Job offers are extended and necessary documentation is completed.

7. The compensation and benefits provided by Abyssinia Bank are designed to attract and retain
talented employees. They may include:

- Competitive salary structures based on job levels and market benchmarks.

- Employee benefits such as health insurance, retirement plans, and leave policies.

- Performance-based incentives and bonuses.

- Recognition and reward programs.

- Opportunities for career growth and development.

8. Abyssinia Bank strives to strictly implement compensation and benefit programs as per the
manual, policy, and procedure. However, if there are deviations, they would be addressed based
on specific circumstances and reasons. The bank may periodically review and update policies to
ensure alignment.

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9. Measures taken to improve the compensation and benefit package at Abyssinia Bank may
include:

- Conducting market research and benchmarking to ensure competitiveness.

- Gathering feedback from employees and conducting surveys to identify areas for
improvement.

- Regularly reviewing compensation structures and benefits to align with industry standards.

- Offering additional perks or incentives to enhance employee satisfaction.

10. Abyssinia Bank aims to place the right person in the right job by following effective
recruitment and selection processes. These processes assess candidates' qualifications, skills, and
suitability for specific roles. The bank may also provide training and development opportunities
to ensure employees are adequately prepared for their job responsibilities.

6. Job Analysis and Design

 The bank conducts comprehensive job analyses to thoroughly understand the
requirements, responsibilities, and tasks associated with each position. This involves

Collecting detailed information about the duties, skills, knowledge, and abilities required for
effective job performance.

- Analyzing the working conditions, equipment used, and reporting relationships for each role.

- Gathering input from subject matter experts, supervisors, and incumbents to ensure an
accurate understanding of the job.

- The job analysis process at Bank of Abyssinia is an ongoing effort, with regular reviews and
updates to account for changes in the business, technology, and regulatory environment.

- The insights gathered from job analysis are then used to create detailed job descriptions and job
specifications, which serve as the foundation for the bank's talent management practices.

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Job Design at Bank of Abyssinia: Leveraging the information gathered through job analysis,
Bank of Abyssinia employs various job design strategies to optimize job roles and enhance
employee performance and satisfaction:

Job Enlargement: The bank may expand the scope of certain roles by adding more tasks and
responsibilities, providing employees with greater variety and challenge in their work.

Job Enrichment: The bank empowers employees by granting them more autonomy,
responsibility, and decision-making authority within their roles, fostering a sense of ownership
and accomplishment.

Job Rotation: The bank may rotate employees through different job assignments, allowing them
to develop a broader range of skills and gain a deeper understanding of the organization's
operations.

Team-based Work Design: The bank encourages the formation of cross-functional teams to
tackle complex challenges, promoting collaboration, communication, and knowledge sharing
among employees.

These job design strategies are aligned with the bank's strategic objectives, such as improving
customer service, enhancing operational efficiency, and fostering a culture of continuous
learning and improvement.

By implementing robust job analysis and design practices, Bank of Abyssinia is able to create
well-defined and meaningful job roles that enable employees to contribute effectively to the
organization's success, while also supporting their professional development and personal
growth.

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Conclusion
 Abyssinia Bank recognizes the importance of clearly stating job responsibilities and
expectations for employees. By providing this clarity, employees can understand their
roles, responsibilities, and performance expectations within the organization.

 Abyssinia Bank demonstrates good HRM practices overall, indicating that it values its
human resources and implements effective strategies and policies to manage and develop
its employees.

 Abyssinia Bank has a clearly defined human resource management planning system. This
system enables the bank to effectively plan and manage its workforce, aligning HR
initiatives with the organization's overall goals and objectives.

 Abyssinia Bank ensures equal opportunity for all potential applicants during the
recruitment procedure. The bank follows fair and unbiased selection processes, providing
an equal chance for all candidates to compete based on their qualifications and merits.

 Abyssinia Bank follows best practices by clearly defining the competencies and skills
required for different job positions. These requirements are utilized in the recruitment
process, allowing the bank to identify and select candidates who possess the necessary
qualifications and abilities to succeed in their respective roles.

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