YARDSTICK INTERNATIONAL COLLEGE

DEPARTEMENT OF MASTERS OF BUSINESS ADMINISTRATION (MBA)

HUMAN RESOURCE MANAGEMENT

ASSIGNMENT 02

TITLE: REVIEW THE PRACTICES OF HUMAN RESOURCE MANAGEMENT IN LINE

WITH ETHIOPIAN HR PROCLAMATIONS AND DIRECTIVES OF ETHIOTELECOM

SUBMITTED TO: BERIHUN MUCHIE (PHD)

PREPARED BY: ENDRIS ASEFAW HASSEN
ID NO=

JULY, 2023

ADDIS ABABA, ETHIOPIA

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Contents Page No.
Background......................................................................................................................................2

Objective of the review....................................................................................................................3

Human Resource Management (HRM) practices of Ethiotelecom.................................................4

A. Performance Appraisal:........................................................................................................4

B. Types of Leaves:...................................................................................................................5

C. Compensation Determination:..............................................................................................7

D. Human Resource Planning:..................................................................................................8

E. Job Analysis:.........................................................................................................................8

F. Employee Benefits and Services........................................................................................10

G. Working Environment: Employee Safety and Health:.......................................................11

H. Employee Relations:...........................................................................................................11

I. Employee Grievances and Discipline:................................................................................11

Summary........................................................................................................................................11

Reference.......................................................................................................................................12

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Background
Ethiotelecom, previously known as the Ethiopian Telecommunications Corporation, is an
Ethiopian telecommunication company serving as the major internet and telephone service
provider. Ethio telecom is owned by the Ethiopian government and maintains telecommunication
services in Ethiopia.The vision of the ‟new ETC‟‟ is to position ethio telecom as a world class
service provider of telecommunications, and to ensure that the company will run parallel with
top telecom operators. Its mission is to connect every Ethiopian through ICT, to provide products
and services that enhance the development of our nation and to build successful brand known for
its customer consideration. With meeting international standards ethio teleocm remain faithful
for the following values:
Being committed to understand, meet and exceed the telecommunications needs and expectations
of our country at large and of customers in particular. Respect customers and recognize that their
revenues allow ethio teleocm to operate and recognize that the company employees are the most
valuable assets and want to create an efficient corporate management environment that allows to
develop and grow. Being committed to high level job performance, customer service quality,
organizational excellence and continuous improvement in all areas and make every effort to
achieve a superior financial return, Uphold ethical standards, being honest in all assignments ,
and Hold ourselves accountable to all our stakeholders.
Strategic Objectives of Ethiotelecom
 Ethio telecom will achieve its goal of both providing a reliable network and of improving
customer services though a range of different levels that are part of its development strategy.
 Ethio telecom will develop and enhance the information system. This will help to decrease
the delay for provision, sales and activation as well as to provide more reliable information to
customers.
 Ethio telecom will develop a world class human resource management. This will help to
improve employee‟s ability to meet the needs and expectations of customers.
 Ethio telecom will implement and control standard processes. This will help to increase
reactivity and to faster customer access to services.
 Ethio teleocm will develop better sourcing and facilities processes. This will help faster
delivery and repair and will offer more transparency to customers.

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Objective of the review
The main objctive of this review is to assess Human Resource Management (HRM) practices in
line with Ethiopian HR Proclamations and Directives in case of Ethiotelecom.

Human Resource Management (HRM) practices of Ethiotelecom

In this sction th key components of Human Resource Management (HRM) practices of
Ethiotelecom such as Performance appraisal, types of leaves, compensation is determined,
Human Resource Planning, How to practicing Job Analysis, Employee, Benefits and Services,
Working Environment, Employee Relations,Employee Grievances and Discipline were
reviewed.

A. Performance Appraisal:
Evaluate whether the performance appraisal method and tools used in the Ethiotelecom are well-
designed. This includes assessing if they effectively measure employee performance and provide
constructive feedback for improvement. Performance appraisal is a process to assess how
individual employees are performing and how they can improve their job performance and
contribute to overall organizational performance. If performance is conducted with good
intensions to manage and improve performance of individual employees with a proper appraisal
process, criteria, and purpose, it will lead to enhanced organizational efficiency, effectiveness
and productivity. This research focused on the effectives of staff performance appraisal in ethio
telecm in correlation with personal improvement and organizational development.

An organization‟s success or failure is highly determined by effective and efficient utilization of

resources at its disposal, such as human, material, financial, and information resources. Among
these four resources, the human resource is the most important part and crucial of all resources
for the survival of an organization. According to Ivancevich (1989), “It is important to remember
that people do the work and create ideas that show the organizational service”. Therefore, it is
agreed that resources remain unutilized unless the human element is involved. The degree of
human resource contribution should be evaluated in the development of an organization and the
system is called Performance Appraisal.

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Performance Appraisal benefits both employees and employers. Employers benefit from
understanding their employees weaknesses and strengths. Understanding the employees helps to
make basic enforcement for weakly performing employee by giving training and development in
order to improve his/her performance before rushing to punishment. It also helps to make
remuneration and promotion readily available for those who performed well. Performance
appraisal is not only important to employee‟s problem identification, but also important to the
organization for effective utilization of human resource by identifying strong employees from
best for utilization of manpower, to bring effectiveness and efficiency. The effectiveness and
success of an organization therefore lies on the people who form and work within the
organization. The ultimate objective of performance appraisal is identifying, measuring, and
managing of human performance in an organization and to give feedback to employees who may
improve their performance on job and also organizations success. To all intent and purposes, an
organization is judged by its performance. However, the biggest influence on organizations
performance is the quality of the labour force at all levels of the business. The most important
role for human resource managers is to raise the performance of employees in the organization.

B. Types of Leaves:
We examine the types of leaves provided to employees in the Ethiotelecom. Ensure that they
align with the regulations outlined in the Ethiopian Civil Servants Proclamation and related
directives.
a) Annual Leave. Annual leave is According to Ethiopian labor proclamation, workers are
entitled to 16 working days of paid annual leave on completion of one year of service plus one
working day for every additional year of service. For a worker with 5 years of service, the period
of paid annual leave is 18 working days (one day extra for every two additional years of service).
A worker is granted his first period of leave after one year of service and his next and subsequent
periods in the course of each calendar year, in accordance with a leave schedule drawn up by the
employer on worker's consent and to the need for maintaining the normal functioning of his
undertaking. A worker may request the employer to take his annual leave in two parts, or defer a
period of leave on employer's consent. However, such deferment cannot exceed two consecutive
years. If the employment contract expires before a worker could avail the right to annual leave,
compensation for leave is made in proportion to the length of his/her service. Apart from this
provision, any agreement, collective agreement or other agreement, providing compensation in

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lieu of annual leave or renouncing or waiving the right to paid annual leave is null and void. In
case a worker falls sick during the annual leave, the provisions related to sick leave are
applicable.
b) Holyday. Workers are entitled to fully paid festival (public and religious) holidays. These
include memorial holidays and religious holidays (Christian and Muslim origin). Public holidays
are usually 13 in number. These days, in 2019, are Christmas (January 07), Birthday of the
Prophet Muhammad (Moulid), Epiphany/Timket (January 19), Victory of Adwa (March 02),
Good Friday (April 18), Ethiopian Easter (April 20), May Day/International Labor Day (May
01), Patriot’s Victory Day (May 05), Downfall of the Derg (May 28), Eid al-Fitre /End of
Ramadan, Ethiopian New Year (September 11), Meskel/Discovery of the True Cross (September
27), Eid Al Adha/Arefa. The Muslim religious holidays are based on lunar calendar. If a public
holiday coincides with another public holiday or falls on a rest day designated by law, such
worker is entitled to only one public holiday payment for working on such a day. Labor
Proclamation No. 1156/2019.
c) Maternity Leave. Is a period of absence from work granted to a mother before and after the
birth of her child. In accordance with Labor Proclamation, female workers are entitled to fully
pay maternity leave of 120 working days (30 days antenatal and 90 days postnatal) on the
recommendation of a medical doctor. If a pregnant woman does not deliver within 30 days of
antenatal leave, she is entitled to additional leave until her confinement. If a pregnant woman
delivers before the 30 days period has elapsed, postnatal leave commences after delivery. Under
the 2019 law, the duration of maternity leave has increased from 90 working days to 120
working days.
d) Paternity Leave Paternity leave is when an employee takes time off because their partner is
having a baby, adopting a child or having a baby through a surrogacy arrangement. They could
have either 1 or 2 weeks leave which must be taken in one go and this remains the same despite
their partner having a multiple birth (such as twins). e) Sick Leave Due to medical treatments,
such as accidents or an illness, employees can take a medical leave of absence from work.
According to the HR Daily Advisor, “it applies to employers with over 50 employees. It provides
up to 12 weeks of leave annually for a serious illness of an employee or an employee’s
immediate family member, or for an employee to assist an immediate family member for
qualifying exigencies related to military service.”

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f) Bereavement. This type of leave occurs when someone close to an employee passes away,
often an immediate family member. Many businesses have policies about which types of family
members qualify an employee for bereavement leave.
g) Paid or Unpaid Sabbatical. Sabbaticals are a type of leave that allows an employee to take off
an extended amount of time. Some companies offer sabbaticals in which the employee receives
full pay, some offer half pay, and others offer unpaid sabbaticals. This type of leave is not
required by law, and is at the discretion of the company (often as a fringe benefit).
h) Other Leaves
Caretaker duty. If someone close to your employee is in failing health or needs assistance, they
can consider “caretaker duty.”
Leave of Absence: Upon request, employees shall be granted unpaid leave of absence due to
different personal reasons
Training Leave: Employees are entitled to request unpaid time off to carry out any training that
will improve their performance at work
Study Leave: Employees don’t have any statutory rights to take unpaid leave for a study break.
It is up to the employer if they would like to offer them
Jury Service: You must grant an employee time off if they are called for jury service. Typically,
jury service will last up to 10 days, but can be longer.

C. Compensation Determination:
Analyze how compensation is determined in the PSNP. This involves assessing the fairness and
transparency of the process, including factors such as job evaluation, market rates, and
performance-based incentives. Compensation is one of many human resource tools that
organizations use to manage their employees. For an organization to receive its money’s worth
and motivate and retain skilled employees, it needs to ensure that its compensation system is not
an island by itself. Not only is it important for an organization to link compensation to its overall
goals and strategies, it is important that its compensation system aligns with its HR strategy.
Smart, successful organizations do regular planning and evaluating of their compensation and
performance appraisal systems. Because compensation is visible and important to employees, it
is critical to consistently communicate a clear message regarding how pay decisions are made.
The main objective is to “drive desired behaviors in your workforce” (WorldatWork, 2000). As
WorldatWork noted, the goals of compensation packages for employees are:

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 First, the compensation package should be positive enough to attract the best people for the job.
An organization that does not pay as well as others within the same industry will likely not be
able to attract the best candidates, resulting in a poorer overall company performance.
Second, once the best employees and talent come to work for your organization, you want the
compensation to be competitive enough to motivate people to stay with your organization.
Although we know that compensation packages are not the only thing that motivates people,
compensation is a key component.
Third, compensation can be used to improve morale, motivation, and satisfaction among
employees. If employees are not satisfied, this can result not only in higher turnover but also in
poor quality of work for those employees who do stay.
Ethio Telecom, which formerly known to be Ethiopia Telecommunication Corporation has made
a restructuring program with a major objective of being a world class telecom operator. Telecom
sector plays a great or leading role in building countries national economy since telecom serves
as the major source of income in Ethiopia and is the strength of Ethiopian economy. However,
the success of the industry rests so much on its human resources capability, which is the most
valuable asset of any organization. The challenging tasks of every manager at all level are how to
build an appropriate compensation system to incorporate both organizational goals and
individual needs, thus, have a motivated workforce and improve productivity.

D. Human Resource Planning:

Evaluate how the Ethiotelecom practices human resource planning. This includes assessing if
there is a systematic approach to forecasting and addressing future HR needs, such as
recruitment, training, and succession planning. Thus, it is well practiced by the managements of
Ethio Telecom. Some of steps for human resource planning practicd are.
 Step 1: Understand business goals.
 Step 2: Assess the current workforce.
 Step 3: Forecast demand.
 Step 4: Estimate gaps.
 Step 5: Formulate a plan.
 Step 6: Implement the plan.
 Step 7: Monitor the plan.

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E. Job Analysis:
We assess how job analysis is conducted in the Ethiotelecom. This involves examining the
methods used to gather information about job duties, responsibilities, and requirements to ensure
accurate job descriptions and specifications. Job Analysis is a systematic process used to identify
and determine, in detail, the particular job duties and requirements and the relative importance of
these duties for a given job. It allows HR managers to understand what tasks people actually
perform in their jobs and the human abilities required to perform these tasks. Job analysis aims to
answer questions such as:

 What are the specific elements of the job?

 What physical and mental activities does the worker undertake?
 When is the job to be performed?
 Where is the job to be performed?
 Under what conditions is it to be performed?

A major aspect of job analysis includes research, which may mean reviewing job responsibilities
of current employees, researching job descriptions for similar jobs with competitors, and
analyzing any new responsibilities that need to be accomplished by the person with the position.

For HRM professionals, the job analysis process results feed job design, work structure and
process engineering, as well as team and department structure. The data collected informs a
multitude of HR policies and processes. For this reason, job analysis is often referred to as the
‘building block’ of HRM. Here are some examples of how the results of job analysis can be used
in HRM:

 Production of accurate job postings to attract strong candidates;

 Identification of critical knowledge, skills, and abilities required for success to include as
hiring criteria;
 Identification of risks associated with the job responsibilities to prevent accidents;
 Design of performance appraisal systems that measure actual job elements;

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 Development of equitable compensation plans;
 Design training programs that address specific and relevant knowledge, skills, and abilities.

Task-based job analysis: This type of job analysis is the most common and seeks to identify
elements of the jobs. Tasks are to be expressed in the format of a task statement. The task
statement is considered the single most important element of the task analysis process. It
provides a standardized, concise format to describe worker actions. If done correctly, task
statements can eliminate the need for the personnel analyst to make subjective interpretations of
worker actions. Task statements should provide a clear, complete picture of what is being done,
how it is being done and why it is being done. A complete task statement will answer four
questions:

 Performs what action?

 To whom or what?
 To produce what? or Why is it necessary? (expected output)
 Using what tools, equipment, work aids, processes?

When writing task statements, always begin each task statement with a verb to show the action
you are taking. Also, do not use abbreviations and rely on common and easily understood terms.
Be sure to make statements very clear so that a person with no knowledge of the department or
the job will understand what is actually done. Here are some examples of appropriate task
statements:

 Analyze and define architecture baselines for the Program Office

 Analyze and support Process Improvements for XYZ System
 Analyze, scan, test, and audit the network for the Computer Lab
 Assess emerging technology and capabilities for the Computer Lab
 Assist in and develop Information Assurance (IA) policy and procedure documents for
the Program Office
 Automate and generate online reports for the Program Office using XYZ System
 Capture, collate, and report installation safety issues for XYZ System
 Conduct periodic facility requirements analysis for the Program Office

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  Copy, collate, print, and bind technical publications and presentation materials for the
Program Office

Competency-based job analysis: A competency-based analysis focuses on the specific

knowledge and abilities an employee must have to perform the job. This method is less precise
and more subjective. Competency-based analysis is more appropriate for specific, high-level
positions.

F. Employee Benefits and Services:

Review the employee benefits and services provided by the Ethioptelecom. Ethiotelecom meet
the requirements outlined in the Ethiopian HR Proclamations and Directives, such as health
insurance, retirement plans, and other welfare programs.

G. Working Environment: Employee Safety and Health:

In this we evaluate the working environment in the Ethiotelecom to ensure employee safety and
health. This includes assessing if there are proper safety measures in place, adherence to
occupational health standards, and mechanisms for reporting and addressing workplace hazards.
Ethiotelecom meet the requirements outlined in the Ethiopian HR Proclamations and Directives.

H. Employee Relations:
In this section we examine the employee relations practices in the Ethiotelecom. This involves
assessing the communication channels, grievance handling procedures, and mechanisms for
promoting positive employee relations and resolving conflicts. Ethiotelecom meet the
requirements outlined in the Ethiopian HR Proclamations and Directives.

I. Employee Grievances and Discipline:

Review how employee grievances and discipline are handled in the Ethiotelecom. This includes
assessing if there are fair and transparent procedures in place for addressing employee
complaints and disciplinary actions. These points are considered and, the Ethiotelecom can
ensure that its HRM practices align with the Ethiopian HR Proclamations and Directives,
promoting effective management of human resources and creating a conducive work
environment for its employees.

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Summary
The objctive of this review is to assess Human Resource Management (HRM) practices in line
with Ethiopian HR Proclamations and Directives in case of Ethiotelecom. Accordingly, In this
review key points to be considered with Ethiopia Civil servants Proclamation and direction
related with HRM were assessed. Performance appraisal, types of leaves, compensation is
determined, Human Resource Planning, How to practicing Job Analysis, Employee, Benefits and
Services, Working Environment, Employee Relations,Employee Grievances and Discipline were
among the assessed and all are satisfied by Ethiotelecom that ensure its HRM practices align
with the Ethiopian HR Proclamations and Directives.

Reference
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edition,( 1999). Laerence Erlbaum Associates, Inc, Great Britain Ivancevich, John M. and
Cluech William F. (1989).
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4. Dunn, D. 2001. “Establishing a satisfying sick leave policy”. Association Management
Washington, Vol 53, No. 6, June.
5. Evans, A. 1998. Family Friendly Policies, Special Leave and the Parental Leave
Directive. Bicester: CCH
6. Evans, A. and Palmer, S. 1999. From Absence to Attendance. London: Institute of
Personnel Development.
7. Evans, A, Walter, M. and Palmer, S. (2002). From Absence to Attendance (2nd Ed).
London, UK: Cromwell Press
8. Baron, R.A, (1983), Behavior in organizations, Published by New York Allyn bacon, Inc
9. Brian, G. (2005), Ensuring that Your Reward and Performance Management Systems Do
Not Create Compensatory Damages, Organization, pp. 1- 22. Compensation & Benefits
Policy and Procedural Manual (2011), Published by Ethiopian Ethio Telecom.

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10. Dave Ulrich and Dale Lake (1990), Organizational Capability, Published by John Wiley
& Son, Inc, Canada

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