Bahir Dar University

College of Business and Economics

Assignment

HRM Practices of Agricultural Transformation Agency and Bunna

International Bank

Department of Management
MBA Program (Extension)

Course Title- Human Resource Management (MBA 6072)

Prepared By: - Adane Wolelaw

Student ID: - BDU1208314

Submitted To: - Alebachew Asfaw (PhD)

Date: January,2021
Table of Contents
ABSTRACT....................................................................................................................................................3
INTRODUCTION...........................................................................................................................................3
Agricultural Transformation Agency/ATA/ -Public Sector HR Practices.......................................................4
1. Job Design and Analysis...................................................................................................................5
2. Recruitment and Selection..............................................................................................................6
Selection Process.................................................................................................................................6
Appointing Employees.........................................................................................................................7
Salary negotiation:...............................................................................................................................7
Employment Contract..........................................................................................................................8
3. Training and Development..............................................................................................................8
4. Performance management..............................................................................................................9
5. Compensation and benefits...........................................................................................................11
Bunna international Bank -Private Sector HR Practices.............................................................................13
1.Job Analysis........................................................................................................................................14
2.Recruitment and Selection.................................................................................................................15
3.Training and Development.................................................................................................................17
4.Performance Management.................................................................................................................18
5.Compensation and benefits................................................................................................................20
The need of applying selected HR activities in both organizations (4 marks)............................................20
The nature of the two organizations in relation the environment they are working in (5 marks).............21
Identify key differences and make a recommendation for improvement based on your observation and
knowledge from the field (4 mark)............................................................................................................22
Recommendations.....................................................................................................................................23
Conclusion.................................................................................................................................................24
References.................................................................................................................................................25
ABSTRACT

The purpose of this study is to evaluate in the way that HRM practices are performed in the
private and public sectors of the economy if there are differences. The theoretical base of this
investigation is anchored on the proposition that some HR practices are always better than others
and that all organizations should adopt these "high performance work practices." In recent years,
organizations in the public and private sectors have witnessed many changes in their
environment. These pressures have pushed organizations from both sectors to continuously
improve their performance.

I try to see the private and public organization using data, that is just from regarding human
resource management operation. From my experience I found that public sector management
emphasizes those HRM activities that deal with employee selection and grievance procedures
because of the sector's high level of unionization. On the other hand, private sector management
emphasizes employee growth and pay for performance or result based payment. Now adays also
trends show that the public sector is "moving" closer and closer to the private sector model by
adopting "high performance work practices" in order to overcome the turbulent environment and
public demand.

INTRODUCTION

In recent years, organizations in the public and private sectors have witnessed many changes in
their environment. They must both compete with other private organizations and face new
competition from public sector organizations privatizing various parts of their operations (Pitelis
and Clarke, 1993; Ponak and Thompson, 1995). These pressures have pushed organizations from
both sectors to continuously improve their performance.

Normally in our country a number of large of mid-level business organization will have Human
Resource Department.

HRM as a concept of managing human capital is widely explored and discussed in private sector
organizations. Most of the themes are related to the exploration of HRM activities (HR planning,
staffing, training and development, compensation, retention, communication) in large private
organizations, where HRM is found as a factor for gaining competitive advantage, especially if
HR practices are implemented in the way of ‘high performance’, ‘high commitment’, or ‘high
involvement’ practices as they are “thought to release untapped reserves of ‘human
resourcefulness’ by increasing employee commitment, participation and involvement”(Gould‐
Williams, 2004). In the public sector, in the UK for example, HRM is usually seen as
paternalistic management, with the standardization of employment practices, collective
bargaining and working practices that emphasize equal opportunities for employees (Boyne et
al., 1999; Gould‐Williams, 2004).

The purpose of this study, to explore the practice of HRM in the public sector organizations in
comparison with the HRM in the private sector organizations. The goal of this research is to
explore the characteristics and differences between HRM practice in organizations from the
private and public sector. The subject of the research is HRM practice (Job Design and Analysis,
Recruitment and Selection, Training and Development, Performance Management, and
Compensation and Benefits) in the private and public sector organizations in Ethiopia.

For my purpose, I selected Amhara Agricultural Transformation Agency(ATA) as public

organization and Bunna International Bank as private organization. Here after ATA will referred
to as public and Bunna International Bank (BIB) as private.

The Human Resource practice of Amhara Agricultural Transformation Agency discussed below
in detail from the perspective of job analysis and job design, recruitment and Selection,
Employees training and development, performance management, and compensation and benefits.

Agricultural Transformation Agency/ATA/ -Public Sector HR Practices

The ATA Vision, Mission and Core Values

Vision
By 2025, smallholder farmers are commercialized with greater incomes, inclusiveness, resilience
and sustainability, contributing to Ethiopia’s achievement of middle-income country status.
Mission
To catalyze the transformation of the agriculture sector by addressing systemic constraints and
developing sustainable value chains.
Core Values
ATA has the following Core Values which are central to all its operations and development
interventions and towards which all employees are striving to foster a shared commitment.
• Innovative: We search for and generate transformational ideas and technologies that catalyse
change. Through continual learning, we conceptualize new ideas; adopt efficient ways of
working and creative problem solving
• Evidence-Based: Our decisions and actions are driven by data, analysis, evaluation and
learning. We produce analytical, accurate and reliable data to inform our work, share knowledge
and influence policy and decision-makers.
Focused: We work on a limited set of priorities that best use resources, reduce complexity, and
maximize impact. We strive to excel in our prioritized, niche intervention areas, minimize
wasteful use of resources, refrain from doing everything, and build on our successes.

• Collaborative: We closely engage diverse colleagues and partners to decide, act and learn
together. Teamwork, constructive engagement internally and externally, shared objectives,
mutual respect, openness, transparency, inclusiveness and accountability mark our organizational
identity.
• Impact-driven: We strive to transform the lives of smallholder farmers by understanding and
addressing their evolving priorities. We promote and support continual learning and rigorous use
of data to evaluate our success based on progressive and lasting improvements in the lives of
smallholder farmers.

The major functions implemented by Human Resource Department of ATA are as follows:

1. Job Design and Analysis

ATA always conducting job analysis before hiring any personnel. once the job analysis study
describing the nature of a job and specifying the human requirements, such as skills, and
experience needed to perform it and consequently sort out the job description. A job description
gives an answer to the question what that post supposed to do and gives a clue to the employee
what their duties and responsibilities on the organization. According to ATA Job descriptions are
a vital source of information to employees, managers, and personnel people because job content
has a great influence on personnel programs and practices. Even according to ATA, Salaries of
the personnel determined by job analysis and job description because job analysis shows the
workload of the position.

ATA’s job Analysis has two components which are job Discerption and job specification.

Job Discerption has job title/ name of the job, working hours, duties, and responsibilities,
working conditions, salary, and incentives.

Job specification also has qualifications, qualities, work experience, Training, and Interpersonal
skills.

2. Recruitment and Selection

The ATA will seek to attract and recruit qualified applicants with the relevant knowledge,
experience, skills, and attitude (internally or externally) who will contribute to the effectiveness
of the organization. It is the policy of the ATA to promote equality and fairness in all aspects of
the recruitment and selection process.

The ATA strives to be an organization which can attract, develop, and retain the right fit person
for the position. All vacant positions will be posted Internal/External where internal staff could
also apply to compete with external applicants. All applicants will be treated fairly and equally.
However, an internal staff should not be shortlisted if he/she is downgraded from his/her position
and salary for disciplinary breach as per the Civil Service Law.

Selection Process
Screening assessment: first, HR department have to screen CV’s from CV pool of ethiojobs or
emails. After that resumes are analyzed and compared with job requirement, job specification
and description. If candidates satisfy the criteria of the organization then they will be contacted
for further examination.

Evaluation assessment:

- HR and respective department employees prepare a written exam and interview questionnaire
and Examine the candidate. only those are performed best in written exam and interview will be
selected.
Those candidates performed best lists are emailed to staffs for internal reference checking and
Once HR department got positive information about the candidate, they sent a letter to the
candidate that has to be filled by three references to the candidate.

-once the three references of the candidate fill the letter and email to HR department then once
HR department get the feedback of the three references, the candidate will start salary
negotiation with HR director and if there is an agreement on salary and other benefit packages,
the job offer will be on place.

Successful internal candidates shall stay in their current position/team for a maximum of one-
month period before reporting to the new position/team to ensure smooth transition.

Candidates who are in 2nd and 3rd place and reserve as potential will be maintained in the
Candidate Pool. They will be invited in case the first scored candidate declines the offer or the
new hire leaves the ATA within six months or if similar positions open in the next six months
with the approval of the Hiring Manager.

Appointing Employees
Once approved to hire and following candidate’s acceptance of salary offer, a Conditional Offer
Letter will be issued to the selected candidate by HR. The letter will outline the terms and
conditions of employment such as: position title, duty station, monthly salary, employment
duration, benefits, reporting line and additional requirements when applicable.

Salary negotiation:
• If internal staff applies for a position similar position, she/he holds and become successful, the
move shall be considered as lateral move and salary will not be negotiated. The successful staff
shall assume the position keeping the current salary.

• Salary for successful candidates shall be determined through negotiation based on earning
history, the market rate and internal equity. This also applies for successful internal staff who
competed for higher position to her/his current position.

• The salary increment range for a successful candidate except for the lateral move salary
increment shall be 10% - 15% referring to the recent earning history.
In case where the position is hard to fill, re-advertised, the required skill set is found rare in the
labor market and the candidate’s salary expectation is more than the average, the Hiring Manager
shall be involved in the negotiation process. If HR and the hiring managers fail in determining
salary through negotiating with the candidate, the issue shall be escalated to Senior Director
Operations and/or CEO as deemed necessary.
Employment Contract
HR issues a written contract once the selected candidate provides the following:
• Evidence of clearance and work certificate from current/former employer (which shall be
maximum within one month from issuance of the Conditional Offer Letter date)
• Copy and all original educational credential documents for verification
• Police Certificate
• Medical checkup report
The employment contract shall clearly specify the title of the position, duration of the contract
for temporary employees, the monthly basic salary, reporting line, vertical & team, probation
period, benefit package and other terms and conditions. And signed job description should be
attached with the contract.
ATA also uses another recruitment and selection criteria without any vacancy announcement by
pursuing fresh graduates from university who are top scorers from their department.

Overall ATA’s recruitment and selection procedure are looks like on the following diagram.
 3. Training and Development

Training and development programs provide useful means of assuring that employees can
perform their jobs at acceptable levels.

According to ATA, training and development is one of the core functions of the human resource
management. As it the core function of HR, Training gives employees the skills and knowledge
to perform their jobs effectively and efficiently.

As I mentioned in the recruitment and selection part, ATA hiring fresh graduates directly from
university. For those selected and hired graduates ATA prepare and deliver detailed and special
training for 6 months that may extend to a year before letting them join the actual work
environment.

In Addition to training for new or inexperienced employees, ATA often provide training
programs for experienced employees whose jobs are undergoing change and sometimes deliver
development programs which prepare employees for higher level responsibilities within the
organization.

For managers also ATA have a development program, that enable managers to share experience
abroad and mostly there is a frequent short term capacity development training like project
management trainings.

Agricultural Transformation Agency have a budget for employees for those interested to upgrade
their educational background up to PhD level.

4. Performance management

The fundamental goal of ATA’s performance management is to promote and improve employee
effectiveness. It is a continuous process where employees and managers work together to plan,
monitor, and review the work, objectives/goals and the overall contribution to the organization’s
strategy. The Performance Management is an annual cycle, with a formal, documented goal
setting, check-in at mid-year & at the end of the 3rd quarter and year end overall review.
ATA shall establish overall organizational goals which shall be cascaded down to teams and
individuals. Annually supervisors and employees are required to set performance Goals with key
performance indicators/outputs that should be attained over the plan period.
At the end of the year employees conduct self-assessment of their actual performance against
their performance indicators without rating and submit to their supervisor.
The supervisor evaluates the achievement of KPIs commenting on the extent to which the
employee applies Competencies relevant to the achievement of each indicators/targets for all
staff except Analysts.
The KPIs developed under each goal are checked and assessed in order to determine their level
of achievement by practical evidence and facts.
The supervisor assesses objectively each KPI under the Goals and Stretch KPIs of the employees
as indicated the PM guideline and determine the level of achievement in percentage, assign
rating and values based on the values indicated in the following table. The overall rating is
subject to Vertical and organizational calibration.

Performance Rating for Staff and supervisor

KPIs accomplishment Overall Rating Value of rating

90% or more of average goals Outstanding (OS) 5
and 95% of Stretch KPIs
90% or more of average goal Exceed (EE) 4
and 75% of the Stretch KPIs
90% or more of average Goals Meets Expectation (ME) 3
KPIs
75% -89% of average Goals Below Expectation (BE) 2
KPIs
74% or Less of average Goals Well Below Expectation 1
KPIs (WBE)
Supervisors
Overall Performance Rating 75%
Competencies and Values 25%

Supervisors rating is based on performance goal and the extent to which they demonstrate the
ATA competences as follow:
• Performance Goals weighted for - 75%
• Competency and Values weighted for - 25%
For the formal annual Performance evaluation two level Calibrations will be conducted:
• Vertical Level: at vertical level all supervisors shall attend the calibration session and facilitated
by SDs. Team or vertical level distribution should still be consistent with other teams or
verticals. Rating distribution by Reviewer should be considered in each performance period and
all reviewers should approach target distribution in the long-term.
• SMT Level: SMT members and HR attend the organizational level calibration which is
facilitated by CEO.

Performance management outcomes will be used to determine performance related incentives

such as career promotions, salary increment and education grant programs.
Performance based promotion or salary increment will take place on annual basis following the
year end performance evaluation.
Employees who will get performance rating as “outstanding’ will be entitled for promotion to the
next higher position in the ATA career path which is subject to availability of vacant position, or
a salary increment upon the approval of the Senior Management Team (SMT). Employees who
exceed and meet expectation will also be entitled for salary increment. Salary increment is based
on the availability of budget and upon the approval of the SMT. The percentage of salary
increment is determined by SMT based on availability of budget.

5. Compensation and benefits

Compensation
Compensation or remuneration is the basic motivating factor for any employee, it also acts as
primary factor for retention of employees in an organization which is the frenetic task for any
human resource manager. Unjustified or improper remuneration will trigger dissatisfaction and
sometimes may lead to unrest among the employees which may lead to strikes that will hurt
organization badly in all aspects.
The ATA seeks to be competitive in the marketplace and strives to attract and retain high
performing employees. Based on guidance from the Transformation Council, the ATA salary
structure and compensation levels are established based on a periodic survey (every two years)
undertaken to assess the market rate. The base salary of new hires shall be negotiated within the
approved salary range of the position, considering the employee’s former salary history, market
rate etc.
Salary Review
It is ATA’s policy to ensure that its remuneration package is internally equitable and externally
competitive with similar organizations. Terms and conditions will be applied consistently
throughout the organization and will be fair, adequate, and non-discriminatory.
An overall salary review will be conducted every two years following an SMT decision and
implemented depending on budget availability.
Salary Increment
Salary increment shall be made annually in July based on budget availability. There will not be
annual employment anniversary increment. Salary increment shall be aligned with the
performance management cycle, in July, based on the performance rating result.
All employees with six months and more service in ATA or on current position will be eligible
for a salary increase based on their performance rating in July. Employees with less than six
months service in ATA or who served less than six months on new position on July 8 will not be
eligible for salary increment until the following year or performance management cycle.
Expectations will be set with new hires upon joining, so they understand the system well.
Benefits
Employee Benefits are another form of compensation to employees other than direct pay for
work performed.
Pension
Locally recruited employees of the ATA shall be covered and administered by Public Servant’s
Pension Proclamation 714/2011. As per the Federal pension proclamation amendment no.
907/2015, all project employees and employees with temporary contract greater than 45(forty-
five) days are entitled for pension benefits as well.
Insurance Coverage
ATA has the following insurance coverage: -
-Group Personal Accident Insurance Policy (Independent Contractors Only)
-Life Term Insurance Policy (Group Yearly Renewable Life Term Policy) -This is an insurance
scheme that covers partial or full disablements due to accident, including death. Moreover, death
of the employee due to reasons not related to accidents is also covered as per the insurance
policy. All employees are entitled to the Life Term Insurance Policy coverage. The details of this
coverage will be as per the procured insurance policy.
Medical Benefit
The ATA offers medical coverage to all permanent and temporary employees. The medical
insurance covers the employee and his/her immediate family members (spouse, biological and or
legally adopted children) and have Maternity cost coverage, Dental medication cost coverage,
Eye glass cost coverage, as per the insurance policy procured by the ATA.

Transportation Allowance

Transport allowances and other benefits provided by ATA are subject to revision based on
market conditions. Transport allowance is subject to the appropriate income tax.
Communication (Mobile & EVDO) Allowance
ATA will provide different communication/mobile and EVDO allowances to employees at
different levels based on the nature of the work. The ATA SMT in consultation with respective
Directors will set the type and the maximum amount of the allowance required for employees to
perform their job effectively.
Granting education opportunity

Bunna international Bank -Private Sector HR Practices

Bunna International Bank has fairly articulated primary and clearly placed its human resource–
as a means of learning and growth - the base for operational excellence and business growth,
which are the ultimate results of the Bank.

The bank considers motivated, skilled, and disciplined employees are essential to the customers
satisfaction and achievement of the overall objectives of the Bank. The bank has talent
management system that includes recruitment and selection, learning and development, career
and succession planning, employee performance management, human resources business
partnering, employee relations and communication as well as human resource transaction
management systems are focused on capacitating employees to handle increasingly complex
tasks.

HR Practices in Bunna International bank

Human Resource Department of Bunna International bank is always preferred multitasked
employee in its organization. Human resource department always ensure right people
in the right place. Moreover, HR department maintains communication with all other
department to make sure 100% working environment for employee. Bunna International bank
values efficiency as the spontaneous contribution of Human Resources. Strategic Human
Resource Development Programs are the energy sources for Bunna International bank HR for
running towards of success. Flow of clear and specific information and justification of queries
play the vital role to ensure the market reputation of Bunna International bank as the most trusted
and transparent bank and it enriches the motivation on level of HR who are the real contributors
and owners of his/her own job. HR department has very effective and efficient employee
who led their department smoothly and ensures the strong supporting role to develop
and implement HR policy guidelines for ensuring uninterrupted operation and
spontaneous participation to achieve organizational objectives as well as fulfilment of
employee needs. HR is maintaining an effective way to deal with labor union and still no unrest
has been recorded as dispute personnel working here are taking care of Bunna International bank
as their own family.

Some of the major functions implemented by Human Resource Department of Bunna

international Bank are as follows: Job analysis, Recruitment and selection, training and
development, performance management, and compensation and benefit.

1.Job Analysis

According to Bunna international Bank Job analysis is the procedure through which you
determine the duties of these positions and the characteristics of the people to hire for them. Job
analysis produces information used for writing Job descriptions (a list of what the job entails)
and job specification (what kind of people to hire for the job).

job analysis is the procedure for determining the duties and skill requirements of a job and the
kind of person who should be hired for the position.

Job description also a list of a job duties, responsibilities reporting relationships working
conditions and supervisory responsibilities – one product analysis.
Job Specifications A list of a job’s human requirement that is the requisite education skills
personality and so on — another product of a job analysis:
Bunna international bank human resources specialists normally collect the following types of
information via the job analysis: which are Work activities, Human behavior, Performance
standards, etc.

The employer may also want information about the job’s performance standards (in terms of
quantity or quality levels for each job duty, for instance). Management will use these standards
to appraise employees.
Job context: Here is information about such matters as physical working conditions work
schedule and the organizational and social context – for instance, the number of people with
whom the employee would normally interact. Information the number of people with whom the
employee would normally interact. Information regarding incentives might also be included here.

Human requirements: This includes information regarding the job’s human requirements, such
as job-related knowledge or skills (education, training, work experience) and required personal
attributes (aptitudes, physical characteristics, personality, interests).

2.Recruitment and Selection

Recruitment and selection Process of Bunna International bank

It is the process of finding and hiring the best-qualified candidate (from within or outside) of an
organization for a job opening, in a timely and cost-effective manner. The recruitment process
includes analyzing the requirements of a job, attracting employees to that job, screening and
selecting applicants, hiring, and integrating the new employee to the organization. So,
recruitment is endless and continuous process. An employee is representative of an
organization for this reason recruitment is very important for hiring new employee. If HR could
not manage right people in right place, then HR plans and organizational goals could not be
executed by employee. As a result, HR department gives best effort in hunting best candidate as
new employee.

Recruiting Sources
Certain recruiting sources are more effective than others for filling certain types of
jobs. Bunna International Bank has the option of choosing the candidate for its
recruitment processes from two kind of sources. Those are: - Internal sources and External
sources.

Internal Sources

HR post job vacancy through notice board and Email to all Bunna International bank internal
employee. Sometimes external employee applies for that seat. However, if candidate fulfill all
requirements of that job the HR director directly appoint him/her as internal employee.

External Sources

Bunna International bank are using their website https://bunnabanksc.com/, ethiojobs.com,

ezega.com, ethopianreporterjobs.com sites to find candidates and using a print media’s like
newspapers or in a voice media like television or radio.

Selection Process

This is the process of choosing from a group of applicants that individual demand to be best
qualified for job opening. There are three steps to selecting a new employee for Bunna
International bank. These are:

a) Screening assessment: first, HR department have to screen CV’s from CV pool of ethiojobs
or applications made through in person, post office or emails. After that resumes are
analyzed and compared without job requirement, job specification and description. Candidate
can be called when his/her resume can satisfy to CV screener.

b) Evaluation assessment: HR and respective department employees take interview; it would be

written test if candidate is fresh. After the second interview is taken by department director and
head only those are performed best in first interview. After that HR department checks
candidate’s reference. At last candidates have been invited those are best according to director
that respective department for salary negotiation with HR director.
c) Contingency assessment: after offering job to candidate, Bunna International bank HR
department want medical certificate of that candidate that is fix for all candidates. If candidate
does not have any problem or health issues, then HR check candidate previous organization
record and criminal record. If candidate pass all of them then he/she get offer letter and join
Bunna International bank as employee. Moreover, candidate has to fulfill employee information
form, all academic certificates, work profile, and last but not least release letter from previous
company.

3.Training and Development

Training and Development is a key factor in human resource management practices. To improve
an employee’s performance in an organization training and development is an attempt, which
also enhance the knowledge and skills in his/her through learning or by changing the attitudes in
employees.
In Bunna International bank human resource development is a continuous process, which ensure
the competencies, effectiveness, and motivation for the employee’s development. The bank
believes that to work efficiently and effectively in the organization training motivates employees
and proved as a problem-solving tool in the organization.
The bank provides trainings in a timely manner in the usage of new applications and services
when the bank develops, customize, and procure a system.
Bunna bank are using different technologies like: -
- ATM machines for the quick withdrawal of money
- Mobile banking is also providing by the banks for banking transactions.
- online banking facility for the transactions of money from one place to another over
the internet.
- Newly opened branches
Those services are new to employees so that the bank always give training for staffs that enable
them to deliver their services efficiently and effectively. Most of the training programs lead by
the bank senior figures and the delivery of training conducted most of the time by internal staffs
and by outsourcing.
In addition, Bunna International Bank has a staff retreat program once in a year that enable staffs
to know each other well and helps to build team spirit.
Overall BIB delivers Trainings and development programs in a planned and continuous manner
for the following reasons as a profit-making organization: -
1.To Optimum Utilization of Human Resources
2. To Creating a Highly Skilled, Motivated and Enthusiastic Workforce
3. To Increase Productivity
4. To Improve Quality of Work
5. To Decrease Learning Period
6. Build Team Spirit
8. To Reduce Cost
Among their development programs staff retreat is one of them, which enable staffs to know
each other and used to create motivated workforce.

4.Performance Management

Bunna international bank uses performance management system as a critical business tool in
interpreting strategy into results.

The Bank’s performance management system focuses on employee’s competency development,

on ongoing and continuous process of communicating and clarifying job responsibilities,
priorities, performance expectations, and development planning optimizing employee’s
performance alignment with the strategic goals.

The Bank’s employees, in view of respective duties and responsibilities, have quarterly
performance plan that consider both financial and nonfinancial expectations from the business
and behavioral aspects of activities.

All line managers of the Bank shall uphold continuous monitoring and feedback to ensure
performance conversations that support employees’ development and performance
improvements.

Performance management is a set of actions and assessments that ensure the company is being
effective and efficient in the process of achieving its goals. Performance management systems
are one of the core practices of human resources management, which typically include:
performance appraisal and Employee development.
Performance appraisal: It is the particular evaluation of the performance of employees inside the
company. Performance appraisal has following features:
-Operational
- Short to mid-run goals
- Individualistic
- Focus on mistakes, misbehaviors
- Focus on quantitative aspect of performance
- Linked with financial rewards
Bunna International Bank are implementing the Balanced Scorecard (BSC), and the bank set
customer related KPI’s and branch Performance evaluation measurements like how many deposit
accounts created and how much money saved on this account, number of digital banking
account, how many customers served in specific branches, ATM transactions, Expansion of
branches, ATM card distributions and mobile banking users, Expense Management, and
Customer base by all products. All these KPI’s are used to measure the performance of an
employee. When you come to performance appraisal of the employee, the bank already set factor
weight for each KPI depending on the position of the employee. Then performance appraisal is
conducted between an employee and the immediate supervisor.

The activity performed by the employee automatically stored in the banking system of the server
which depending on the employee position. For instance, a teller per a day may serve around 100
customers. then the system generates a report how much customer that teller serves per a day, per
month and per year. So that to evaluate this teller, the manager already set a target for this teller
and now the manager supposed to do is just generate a report and cross check whether the target
is achieved or not.
Then the supervisor gives a result to an employee among one of the following:
- Below Expectation
- Meets Expectation
- Exceeds Expectation
- Outstanding
Depending on the performance appraisal result, the employee get salary increment from 1% to
3% per a year, promotion, certificates, and bonus and place shift.
Overall Performance Management helps employees of Bunna international bank to Boost
Employee Engagement and Productivity. Engaged employees stay longer, actively involve
themselves in the workplace and produce better results. Improving levels of employee
engagement is key to boosting productivity and maximizing Return on Investment.

5.Compensation and benefits

Compensation or benefit packages is the basic motivating factor for any employee specially for
business organizations.

Bunna international Bank provides different compensation and benefit packages to their
employees so as to stay competitive on the banking Industry and to reduce turnover.

Benefits

Bunna International Bank providing the following benefit packages to its employees.

-Hardship allowance

-Life insurance 24/7

-Medical cost reimbursement

-Housing Allowance

-Fuel Allowance

-Loan or Mortgages

- Position Allowance

The need of applying selected HR activities in both organizations (4 marks)

HRM practices involve a number of benefits for both Amhara Agricultural Transformation
Agency and Bunna international Bank. The different HRM practices such as training the
employees has developed their productivity and professional skills thereby helping in reaching
higher productivity and enabling them to fulfil organizational objectives.
The HRM practices contributes to the creation of added value by ensuring that people with the
required competences and levels of motivation are available and by helping to create a culture
and environment which stimulates quality performance.

Moreover, practices such as rewarding the employees and performance appraisals serves in
motivating employees towards hard work and determination for excellence. The HRM practices
create opportunities in the business processes of the organization. It would influence the market
as its practices results in better good and services and organization get the chance to overtake the
market.

HR plays a key role in developing, reinforcing, and changing the culture of an organization. Pay,
performance management, training and development, recruitment and onboarding and
reinforcing the values of the business are all essential elements of business culture covered
by HR.

The most successful HR leaders are able to link people programs to business results and engage
other leaders to achieve those goals. They think of themselves as driving business results through
people so any key people initiatives they undertake support a documented business goal.

The nature of the two organizations in relation the environment they are working in (5
marks)

ATA founded in 2010 GC and public organization. Its main objective is to improve the lives of
smallholder farmers. Since then, ATA works on and supports the transformation of Ethiopia’s
smallholder farmers into commercialized actors with greater incomes, inclusiveness, resilience,
and sustainability, contributing to Ethiopia’s achievement of middle-income country status and
its main objective is to improve the lives of small holder farmers by focusing on two national
approaches: -

First, the ATA supports partners to identify and address systemic bottlenecks within an
Agricultural Transformation Agenda, owned largely by the Ministry of Agriculture and
Livestock Resources (MoALR) and its affiliate institutions. Second, the ATA supports
integration of solutions to systemic bottlenecks in high-priority commodity value chains and
geographies through the Agricultural Commercialization Clusters (ACC) Initiative, owned
mainly by Regional Governments and the Regional Bureaus of Agriculture and Livestock
Resources (RBoALRs) in particular.

Since the organization’s establishment, the programmatic and geographic areas of focus have
continuously evolved based on the strategic priorities of the government. The ATA’s focus areas
are always in line with the growth corridor strategies of the government of Ethiopia specifically
in agriculture sector. Some of which were Growth and Transformation Plan (GTP I and II).

When we come to Bunna International Bank, it is one of the banks of Ethiopia. it is a private
sector that makes business and main objective is making profit. They are working under the
environment of stiff competition with other similar commercial banks. They are aggressively
working to Provide Commercial Banking Services to enhance values of key stakeholders and
win public trust using professional employees and State-of-the-art technology.

Identify key differences and make a recommendation for improvement based on your
observation and knowledge from the field (4 mark)

When we come to Agricultural transformation Agency and Bunna International Bank almost
they do have the same HR practices. But there is a little bit variation regards to Recruitment and
selection process, compensation, and benefit.

Regards to recruitment and selection, Agricultural transformation Agency’s internal reference

checking open to biasness and has a problem. According to ATA, a candidate once after passing
the exam, they ask a reference from internal staff and if that staff gives a negative feedback, the
candidate recruitment and selection process terminated. I think which is not fair.

The other thing ATA, giving less emphasis to its job analysis. Most of the current job description
was prepared years ago, while the company was in establishment process, and no further review
or update has been made. It should have changed according to current requirements.

In addition, there is a wide range of salary variation between staffs even though they do have the
same position. Due to this salary variation, there is high turnover in Agricultural Transformation
Agency.

When we see Bunna International Bank, regards to medical cost coverage, their policy does not
cover the medical cost of their family.
What I observed also there is high workload on some staffs while others simply sitting and
talking with their colleagues.

There is also staff absenteeism.

Recommendations

According to ATA, there has to be an equal payment structure for the same position. The
recruitment process also has to minimize some steps like internal reference checking, and I think
it’s enough to use external reference checking.
Job analysis has to be update continuously according to the requirements of the requesting
program and department.
As an organization turnover is a cost but most of the time according to ATA there is a
miscalculation. The organization thought it as a normal scenario.so the organization has to work
to retain talented staffs by providing better benefit and compensation, salary, bonus, etc.
Bunna international bank as a business organization has to provide competitive salary to its staff
so as to minimize staff turnover and migration to other competitive banks.
Directors and department heads must ensure that employees are getting proper work balance and
friendly environment. One employee will be multi-tasked but that should be balanced. So, for
this these important personnel can monitor the office workers and their works by moving around
the office.
Human resource department should organize get together where employees can bring his/her
family member. Bunna International bank organize annual program every year for their staffs
that enhance intimacy and I think ATA and I advised to include some of their esteem customers.
Both organizations have to work on successional plan. Succession plan is equally important
to career development for an organization to achieve organizational goal. Considerable
that majority of the employees are high-skilled workers; it has the advantage in human capital
resources. Therefore, it is advised to utilize its competency and capability advantages to source
and plan for its succession development for a sustainable future growth. Succession levels shall
not solely focus on key executives but best to be extended to low levels in the organization.
Subsequently, the organization shall identify and locate the talent at right place. Although
experienced employees appeared to have mature abilities to solve problems in a shorter time,
opportunities should be given to younger employees to cultivate and develop their abilities. The
experienced employees should be played a role in mentoring and consulting.

Conclusion

Effective HRM practices allows organizations to address human resource issues strategically.
This helps the workforce deliver high quality performance, despite internal and external
challenges to the organization. HRM helps to attract and retain competent employees, assists
employees and managers in adapting to organizational change, and facilitates the use of
technology to determine how and where work is done.

Human resource management always act to bring out effectiveness, to develop and to also meet
all the demand of the work force. In doing this job analysis, recruitment and selection, training
and Development, performance management and compensation and benefit are the pillars of
human resource management. All aspects of human resources management including how
organization manages the human resource environment, acquiring and preparing, assessment and
development, compensating human resources, new role of human resources management and its
competencies can help organization meeting their competitive challenges and create
value. Human resources management is very crucial for organization without it they cannot
reach their goal and objective. Human resources management helps organization to design
employees work, recruit and select right person for right job, training and develop
employees to be a knowledge worker and empowerment for working environment.
So, if organizations that have not considered effective of human resources management,
they will not manage their staff at work effective and cannot examine what they will do to make
working people more productive and effective. In this regard, both organizations have gone far in
doing all aspects of HRM practices except what we mentioned earlier as a problem.
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Abbreviation

ATA Agricultural Transformation Agency

BIB Bunna International Bank
KPI Key Performance Indicator
HRM Human Resource Practices

PM Performance Management

CV Curriculum Vieta

MoALR Ministry of Agriculture Livestock Resources

ACC Agricultural Commercialization Clusters Regional RBoALRs

Regional Bureaus of Agriculture and Livestock Resources.

GTP Growth and Transformation Plan (and II).