Electronic Human Resource Management: A Key Driver Of Service Quality In Ethiopian Banks

In today's fast-changing financial market, service differentiation is essential when customer demands are rising and competition is severe. In this constant pursuit, Electronic Human Resource Management (E-HRM) has become a powerful tool, allowing organizations to find untapped labor potential and turn it into customer service advantages. Thus, this paper investigates the link between relational E-HRM functions, employee performance, and service quality delivery. This research utilized a quantitative approach through a survey design. A questionnaire instrument was used to collect the data. Analysis was done on 448 observations made by customers and employees of Ethiopian private banks. For analysis, SPSS and structural equation modeling (SEM) was applied. The hypothesis test suggests a significant and positive relationship between relational E-HRM implementation and service quality, and employee performance acts as a mediator in this relationship. This implies that E-HRM implementation initiatives directly impact employee performance, positively influencing service quality. This suggests that financial institutions can leverage E-HRM as a strategic tool to differentiate themselves in the competitive market.