The Effect of Human Resource Development on the Performance of Selected EFFORT Companies

Abstract

This study aims to examine the effect of Human Resource Development (HRD) on the Performance of selected Endowment Fund for the Rehabilitation of Tigray (EFFORT) companies, Abergele International Livestock Development (AILD), Bruhtesfa Plastic Factory (BTPF), and Trans Ethiopia (TE) in Mekelle, Tigray, Ethiopia. In spite of the HRD has recognized importance, its implementation practices, especially in large corporations such as EFFORT, have remained understudied. The study employed a mixed-methods approach, combining both quantitative and qualitative methods to collect data from AILD, BTPF, and TE. A well-structured questionnaire was used as a data collection tool, and a total of 332 employees actively participated in the study. The study assessed the current HRD practices, identified main challenges, and explored the relationship between HRD and company performance. Based on the HRD need assessment results, the weighted mean values for AILD, BTPF, and TE were 3.26, 3.83, and 3.93, respectively, which indicates that employees have recognized the importance of HRD for EFFORT companies. The weighted mean values of HRD design and implementation practices for AILD, BTPF, and TE were 1.764, 2.58, and 3.93, respectively. This showed that the design and implementation practices in AILD, BTPF, and TE were strongly dissatisfied, dissatisfied, and satisfied, respectively. Additionally, the employees at AILD and BTPF expressed their dissatisfaction with the current HRD design and delivery, career development opportunities, and financial support for training and education. This suggests that although the respondents recognized the importance of HRD for their companies, they feel HRD practices are not sufficiently aligned with staff needs. Conversely, the weighted mean values of TE employees with respect to HRD design and delivery, career development opportunities, and financial support for training and education were 3.93, 3.93, 3.77, and 3.89, respectively. This implies that the employees of TE had a more positive view of HRD practices and their influence on the performance of the company, and perceived that they are satisfied with the current HRD design and delivery, career development opportunities, and financial support for training and education. Thus, conducting HRD needs assessment, providing HRD based on identified gaps, bolstering career development initiatives, and increasing employees’ financial support for HRD and educational growth are crucial to enhance employees’ competency and the company’s productivity, which boosts the company’s competitiveness.