Human Resource Management Practice and Its Impact on Organizational Performance in Selected Chinese Construction Companies in Ethiopia

Abstract

This study investigates the impact of human resource management (HRM) practices on organizational performance in selected Chinese construction companies operating in Ethiopia. The research employs a mixed-methods approach, gathering quantitative data through questionnaires and qualitative insights via interviews from 15 key personnel across various managerial and technical roles. Findings reveal that fair recruitment processes and ongoing training programs, particularly those emphasizing safety and technical skills, are foundational to workforce effectiveness. Employee motivation and structured performance appraisal systems contribute significantly to retention and productivity. Cross-cultural adaptation strategies, including cultural sensitivity training and locally tailored HR policies, facilitate smoother integration of expatriate and local workers, although some language and cultural challenges persist. Technological integration through digital HR systems enhances recruitment, training delivery, and performance monitoring but faces limitations due to infrastructure constraints and digital literacy gaps. Organizational performance indicators such as project timely completion, budget adherence, quality standards, and safety compliance are positively associated with effective HR practices and employee wellbeing initiatives. The study concludes that adaptive HRM aligned with cultural contexts, combined with cross cultural competence and technology adoption, is essential for improving project outcomes and sustaining competitive advantage. Recommendations include developing targeted training, enhancing cross-cultural communication, investing in digital infrastructure, establishing conflict resolution mechanisms, and fostering employee wellbeing. Further research is suggested to explore longitudinal impacts, larger samples, and comparative analyses with other international firms. This research contributes practical insights to improve HRM in Chinese construction companies in Ethiopia, supporting their operational success and sustainable development within the local construction sector.