ISSN 2394-7322

International Journal of Novel Research in Marketing Management and Economics

Vol. 8, Issue 3, pp: (33-45), Month: September - December 2021, Available at: www.noveltyjournals.com

A Factor Analysis: Human Resource

Management Practices on the
Telecommunication Companies in Somaliland
Abdiaziz Harun Mohamed 1, Saed Jama Abdi 2

Abstract: HR management practices are a vital component of any company, so that in order to reach its values the
company must pay a huge importance in HR management. The objectives of this study was to investigate the HR
management practices on the telecommunication companies in Somaliland, and to examine the role of HR
management practices on employee job satisfaction and the overall impact on the companies performances. The
study was used a closed-end questionnaire, and the target population were the employees and middle managers of
the two telecom companies in Somaliland specifically, Hargeisa. The study was applied non-probability sampling
technique, particularly convenient sampling. Before data collection, a self-administered a pilot study was
conducted based on 20 employees. A sample of 115 employees were contacted and distributed questionnaires. In
order to analyze the collected data, both descriptive statistics and confirmatory factor analysis was used while
reliability test was used before the data analysis. The findings of this paper showed that “recruitment & selection”,
“staff training & development”, “employee motivation & rewards” and “teamwork & collaboration” had been the
highest loading factors while “Job description & analysis”, “performance & promotion”, “Compensation &
Benefits”, and “Communication” had been the least loading factors and were ignored from the analysis to improve
clarity. Finally, the study recommends that telecom companies in Somaliland should redouble their efforts in
looking experienced employees in the recruitment & selection processes and increase training & development of
their staff. The study also recommends to motivate and reward to all staff in their respective area and create a
favorable environment of teamwork and collaboration.
Keywords: Factor Analysis, HR Management, Practices, Telecommunication, Somaliland.

1. INTRODUCTION
The Management of people in organization was first referred to over fifty years ago as personnel management which were
viewed as recruiting, organizing, and motivating the human resources required by an enterprise (Dba, 2018). Human
Resource Management practices became widespread in the 1980s and ever since then, there has been an increased interest
in the notion as well as in the area of research. Pioneer works carried out on HR Management were mostly theoretical and
not based on significant practical evidence for their soundness (Peter et al., 2017). The theory of HRM is utilized for
understanding the necessities and prerequisites of individuals, to be reinforce and grows in a better way (Sai Krishna &
Kumar, 2020).
Human Resource Development is the piece of human asset, the executives that explicitly manages preparing and
improvement of the workers in the companies (Shashila et al., 2020). Workers are significant resources of an association.
Every worker has distinctive aptitudes, learning, recognition and experience from different representatives (Hayat et al.,
2019). HR is the central and core issue of socio-economic development in every organization, country and territory all
over the world. Within business context, according to Wright and others (2001), human resource are defined as human
capital under the control of an enterprise in a direct relationship with employment (Pham, 2020). HRM is known as the
design of management systems which ensures the human talent and uses it efficiently to garner organizational goals
(Shrestha, 2019).
The multidimensionality of HR practice allows organizations to accomplish the corporate and personal objectives and
therefore the approach of the HR Management plays a pivotal role in the success of the company (Jawaad et al., 2019).
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International Journal of Novel Research in Marketing Management and Economics
Vol. 8, Issue 3, pp: (33-45), Month: September - December 2021, Available at: www.noveltyjournals.com

The backbone on which daily operations of an organization run its Human Resource practices. The organization has
everything to do within them (Robinson & Anitha Rajathi, 2020). Lately it has become a shared belief that HRM practices
are the main basis of maintainable competitive advantage and achievement, it highlights the significance of the
organizational outcome and achievement (Kawani, 2018).
The eruption of Civil War in 1988 and the subsequent collapse of Somalia in 1991 all infrastructures including
Telecommunication entire destroyed. Prolonged periods of instability and intermittent conflict constrained the ability
government to rehabilitate the country‟s communication systems (Yassin sheikh Ali et al., 2015). After the fall down of
Somalia government in 1991 many Telecommunication companies which all of them were publicly owned appeared and
some private companies immediately start their operations with very limited and insufficient infrastructure (Ahmed &
Kising‟u, 2019). Somaliland is a Sub-Saharan country located in the Horn of Africa, sharing boundaries with the Gulf of
Aden in the North, Somalia in the east, Ethiopia in the southwest, and Djibouti in the Northwest. Somaliland unilaterally
declared independence from South Somalia in 1991; although internationally unrecognized, Somaliland has been self-
governing ever since that declaration (A. H. Mohamed, 2021).
After two and a half of decades of conflict and civil war concentrated mainly in southern Somalia, destroyed much of the
country‟s communications systems like telephone and posts however; but now Somaliland country makes improvement
of many industries such as Telecommunication services (Ahmed & Kising‟u, 2019). In Somaliland there were previously
more than three main companies which had been providing telecommunication services, these companies were Soltelco,
STC, and Nation-link but currently there are two largest telecommunication companies in Somaliland which are Telesom
and Somtel. These companies provide a range of services which include Land-line, GSM, roaming services, Internet
services, top-up services, data messaging, MMT, voice services and security services, 3G, GPRS and much more and
these services are all geared towards growth and competition (J. A. Mohamed & Gichinga, 2018).
In addition to that, all of them offered local and international services to its intrinsic customers on its own network and the
privatization in Somaliland expands the scope of telecommunication in Somaliland covers the entire cities and towns
(Karie, 2017). Although some studies have noted that the importance of some elements of HRM practices in
telecommunication companies in Somaliland, a few have utilized the elements of this practices on a frequent basic (Eid
Mohamoud, 2019). Most of companies in Somaliland put more efforts on the focus of only some elements of HR
Management practices like recruitment and selection, compensation, training and development but give less concern on
the other Human Resource Management practices (Dahie et al., 2016).
1.1 Problem Statement
Human Resource Management practices raises the efficiency and effectiveness of companies by improving both current
and future operations. HR Management practices provides a framework for management‟s vision of the future (Ahmed &
Kising‟u, 2019).
The telecommunication companies in Somaliland, as many other countries in the world, has in the recent past been among
the most competitive industry of the economy. Initially there were only two players but the entry of two other operators
made the industry very competitive. Consequently, the growing competitive environment led to malfunction of HRM
practices which lead to poor performance, decrease of income and price wars (J. A. Mohamed & Gichinga, 2018). In
telecommunication companies, some employees were very little motivated as there is no recognition after good
performance and no feedback after performance of duties, some of them were poorly payed and while others were highly
paid (Mohamud et al., 2017).
Employee turnover have much negative effect on the company‟s efficiency if skilled workers often leave the company,
however in the Telecommunication companies in Somaliland; specifically Nation link and Hormuud, these companies
experience highest form of employee turnover (Karie, 2017). Some products and services suffer and fail in the
Telecommunication companies in Somaliland, Some services like International roaming and E-payments for example
suffer shortly after they are inaugurated. It is not known whether their failure is attributed to poor Human Resource
Management strategies and no study explicitly outlining the influence of the practices on the services success has been
done in Somaliland (Eid Mohamoud, 2019).

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International Journal of Novel Research in Marketing Management and Economics
Vol. 8, Issue 3, pp: (33-45), Month: September - December 2021, Available at: www.noveltyjournals.com

1.2 Objectives of the study

 To investigate the human resource management practices on the telecommunication companies in Somaliland.
 To examine the role of human resource management practices on employee Job Satisfaction for the
telecommunication companies in Somaliland.
 To investigate the effectiveness and the overall impact of human resource management practices on
telecommunication companies in Somaliland.

2. LITERATURE REVIEW
2.1 Recruitment and Selection
Recruitment is the process of searching the suitable candidate for fulfilling the vacancies (Gusdorf, 2008) which happen
in the organization. It can be referred as the certain process of generating a pool of competent candidates for job in
organization. Thus, recruiting itself is a key component of enacting a HR plan. Wilton (2011) divulges „Under strategies
for organizational growth, or development where organizations seek to replace leavers, this will require firms to recruit
new members of staff or reposition existing employees. Recruitment and Selection refer the selection of staff, Wright et
al. (2005), points out that the staff selection includes interviewing and official testing of the candidates through the
process of employment (Mulolli & Boskovska^, 2020). Selection is the process of HRM which comes after the
recruitment and ends at the placement process. It is the term which implies choosing few from those who applied
(Shrestha, 2019).
Ryan and Ployhart (2014) revealed that the concept of Recruitment and Selection is widely known among the HR
practitioners and researchers. According to Flippo, recruitment is the process of searching for prospective employees and
stimulation encouraging them to apply for jobs in an organization (M. Mutua et al., 2016). The primary aim of
Recruitment and Selection technique is to hire the knowledgeable and skilled workers at the minimum cost to meet the
HR demands. To achieve the business objectives, the appropriate team of employees is needed (Jawaad et al., 2019).
Increasingly, firms adopt a formal recruitment and selection process in an attempt to choose the „best fit‟ for the
organization. The selection process comprises eight steps constituting a comprehensive approach: initial screening,
completing application form, testing, interviews, background examination, conditional job offer, and extra (Dba, 2018).
The recruitment is the act of obtaining names of the potential candidates for the job while the process of selection includes
carefully appointing the right people for the job. The policy related to the HR must be in accordance with the business
strategies. Therefore, organizations are required to maintain a balance between the recruitment and selection and the HR
practices. Majority of the large-scale companies are heavily dependent on formal methodology and bureaucratic
techniques by the experts in HR divisions of the companies (Jawaad et al., 2019). A global survey conducted by Stiles and
Trevor (2006) shows that companies use a variety of channels for recruitment including internal and external labor
markets, selective hiring is highly preferred using different testing tools, while human capital inventories are maintained:
succession planning is carried out and the involvement of immediate supervisors in the whole process is found to be the
most effective practice among all (Mahmood Iraqi et al., 2015). Recruitment and selection of professionals is linked to the
concept of talent management that comprises the dimensions of attracting, sourcing, recruiting, and retaining, deploying
and transitioning, growing and developing, managing performance, and rewarding talented professionals (Dba, 2018).
2.2 Training and Development
According to Pfeffer (1998), training is a common factor in superior high-performance management practices, especially
when based on commitment rather than control-oriented management systems, and noted that it takes time for the benefits
of such training to be realized (Dba, 2018). Employee training and development aims to escalate the proficiency and
ability of the employees for completing a specific task. In light of the fact that employees are viewed as important
resource of the organizations therefore, firms invest in their training and development programs to magnify the expertise
and potential of their employees (Jawaad et al., 2019). According to Harel and Tzafrir (1999), training can influence
performance in two ways: first, training improves relevant skills and abilities, and second, training increases employees‟
satisfaction with their current job and workplace (Mulolli & Boskovska^, 2020).

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Vol. 8, Issue 3, pp: (33-45), Month: September - December 2021, Available at: www.noveltyjournals.com

Thang and Buyens (2008) through reviewing 66 studies conducted in different parts of the world opined that training and
development leads to superior knowledge, skills, abilities, attitudes and behavior of employees that eventually enhance
organizational performance. Training refers to improving competencies needed today or very soon (Mutahi & Busienei,
2015). Training improves manpower utilization and by so doing, enhancing job satisfaction. It is thus very importance for
any organization to provide employees with sufficient training to equip them with the required competence, skills, and
knowledge to enable them to adapt to new challenges (Ndung‟ & Kipkebut, 2015). Development is related process, it
covers not only those activities but also those which bring about growth of the personality and professionalism (M. Mutua
et al., 2016).
On the job training improves work efficiency, develops interest in work, and reinforces the commitment towards the
organizations leading to employee retention. Also of the job training causes employees pay more attention to the
particular training activities, learn new skills and knowledge without distractions paying the complete focus on the
training (Imna & Hassan, 2015). A recent survey by Henley Business School (2014) shows that 54% of the survey
organizations intend to continue their spending on training and development while 31% plan to increase the amount spent.
Furthermore leadership, decision making, customer service, coaching, entrepreneurship and innovation are the top priority
areas for training across the world (Mahmood Iraqi et al., 2015). As Boxall (1996) points out, „by hiring and developing
talented staff and synergizing their contributions within the resource bundle of the company, HR Management may lay
the basis for sustained competitive advantage (Nyamubarwa et al., 2013).
2.3 Compensation and Benefits
Compensation is defined as the cumulative financial and non-financial rewards payable to employees in return for their
services. The financial and non-financial rewards are usually based on the value of job, level of personal contributions,
efforts and performance (Amaeshi Uzoma Francis, 2014). The general purpose of the compensation policy covers
respecting employees‟ performance, maintain a competitive labor market conditions, maintain justice employees‟ salaries,
motivating employee performance and reduce employee turnover (M & Prabakaran G., 2013). Compensation and benefits
are much important for employee because it has a motivational effect and it is one of the main reason for people to work
(Mohamed Abdalkrim, 2012).
Bondarouk, et al (2016) opined that compensation planning ensures that managers administer salary increment equally
across the firm while still operating within the budget guidelines (Ebenezer Adebisi & Oladeji Michael, 2020). A
compensation and benefit system and a successful pay structure is essential as it can increase employees‟ motivation to
work, which further enhances productivity, efficiency and competitiveness of the company (Jawaad et al., 2019).
Monetary or cash compensation was the traditional way of rewarding employees, but increasingly non-monetary rewards
gained prominence in most companies. DeCenzo and Robbins (2007) see non-financial rewards are gained directly
increasing „the employee‟s financial position, but rather add attraction to life on the job‟ and provides intrinsic and
extrinsic motivation (Dba, 2018).
Financial rewards normally include: pay for performance, competence or contribution, variable pay (bonuses), share
ownership and other financial incentives. Non-financial rewards normally include: recognition, responsibility, meaningful
work, autonomy, and opportunity to use and develop skills, career opportunities and extra (Dba, 2018). Islami Xh. And
Islami V. (2019) suggested that applying performance appraisal in the correct way and for appropriate goals, improves job
satisfaction, motivation to employees, and as a result the quality of working life. The usage of this technique pushes
employees to make continues attempted tasks to realize with success the duties with the purpose to raise their personal
performance. The growing recognition and consensus that compensation promotes productivity is consistent with the
early work of Peter Drucker (1956) that states „happy workers are productive workers (Dahie & Mohamed, 2017). Islami
et al (2018) arguments that employees are more productive, increase their efforts and output when they know they will be
rewarded from the company based on the work that they do in organization (Mulolli & Boskovska^, 2020).
2.4 Performance Appraisal
Performance appraisal is the procedure of identifying how well human resources do their jobs in relation to the well-
established standard and communicate this information to them. It is used to assess a staff‟s performance and gives a
platform for advising the expected performance about past, culture and future (Shrestha, 2019). Performance appraisal is a

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Vol. 8, Issue 3, pp: (33-45), Month: September - December 2021, Available at: www.noveltyjournals.com

process of evaluating employee‟s performance on the assigned tasks to facilitate further career development; it is mainly
the communication between the employee and management (Imna & Hassan, 2015). At the heart of the performance
management appraisal system is the performance appraisal processes which according to DeCenzo and Robbins (2007)
„must convey to employees how well they have performed on established goals‟ and that preferably, these goals should be
set jointly between the employee and supervisor (Dba, 2018).
Some of the key components of performance appraisal are employee feedback, communication, goal setting, performance
evaluation, and period review. Employee feedback approach helps in shaping the behavior and improves learning that
drives the performance (Imna & Hassan, 2015). Performance appraisal is an indispensable tool for an organization
because the information it provides is highly useful in decision making regarding issues such as promotion, merit
increases transfers, discharge, training and development. A vehicle for the enhancing the Organizational Commitment is
the effective performance appraisal framework (Jawaad et al., 2019). However, there has been a great realization that is
more important to focus on defining, planning and managing performance than merely appraising performance (Dahie &
Mohamed, 2017).
Through performance appraisal processes, employees may get aware of their performance level and realize their weakness
through valuable feedback or guidance from top management. Therefore, performance appraisal needs to be done
periodically for the purpose of human capital development (Amaeshi Uzoma Francis, 2014). Also performance evaluation
contributed to employee retention as it gives the confidence to employees that the organization is committed to
accomplish the needs and development of employee that enhances performance (Imna & Hassan, 2015). However,
performance appraisal system has potential advantages such as facilitation of communication, enhancement of employee
focus through promoting trust, and determination of training needs (Mohamed Abdalkrim, 2012). Employee commitment,
productivity, and employee retention can be improved with performance appraisal system (Amaeshi Uzoma Francis,
2014).
2.5 Rewards and Recognition
Reward may be defined as those forces that cause people to behave in certain ways. It encompasses all those pressures
and influences that trigger, channel and sustain human behavior (M. Mutua et al., 2016). When we hear of employee
reward or recognition, we think of merit, acknowledgement, gratitude, appreciation and some thanks for the job well-done
by an employee. Employee Recognition may be in the forms of awards, employee merits, promotions and monetary
incentives (Mutahi & Busienei, 2015). Human Resource managers are constantly searching for standardized solutions so
that they can reward and recognize the accomplishments of their employees appropriately. A reward framework ought to
be a bundle/structure that comprises of benefits, for example, pay, leaves, medical allowances, transport allowances and
commissions for the employees of the firms (Jawaad et al., 2019).
Reward is the financial or non-financial return and benefits received by the employees in return of their professional
services or products for the organization. These include performance based rewards, employee recognition, non-monetary
incentives, extrinsic rewards and intrinsic reward (Imna & Hassan, 2015). The two basic objectives of reward
management pursued by most firms identified by Stiles and Trevor (2006) are attraction and retention of requisite talent,
and promotion of desired employee behavior and efforts (Mahmood Iraqi et al., 2015). Reward is an effective instrument
in the hands of a manager for inspiring the work force and creating confidence in it. By motivating the workforce,
management creates „will of work‟ which is necessary for the achievement of organizational goals (M. Mutua et al.,
2016).
According to Armstrong (2000) reward management is concerned with the formulation and implementation of strategies
and policies, the purpose of which to reward people fairly, equitably and consistently in accordance with their value to the
organization and its stakeholders. It involves the analysis and effective control of employee remuneration (M. Mutua et
al., 2016). The most effective practices in this area however, include performance led pay, maintenance of internal and
external equality, short-term and long term incentives, and employee share ownership programs (Mahmood Iraqi et al.,
2015). In the recognition process, employees are praised which is a key essential as employees seek the need to be valued
and respected. This increased individual productivity, loyalty, retention and high employee satisfaction. Extrinsic rewards
increases the level of employee performance and satisfaction and also found as a strong factor for employee motivation
(Imna & Hassan, 2015).
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International Journal of Novel Research in Marketing Management and Economics
Vol. 8, Issue 3, pp: (33-45), Month: September - December 2021, Available at: www.noveltyjournals.com

3. RESEARCH METHODOLOGY
This part demonstrates the conceptual framework and methodology used in this study including sampling technique, data
collection method, instruments used to collect data, and the data analysis technique which was used.
3.1 Questionnaire Design
To examine the human resource management practices from the Telecommunication companies in Somaliland a closed-
ended questionnaire was prepared. The population used in this research study were the telecommunication companies in
Somaliland, especially Hargeisa. To understand the topic more deeply, a 5-point Likert type scale (Strongly Disagree,
Disagree, Neutral, Agree, and Strongly Agree) questions were used. In addition to that, demographic questions were
included in the study such as age, gender, education level, and years of working experience in the two companies.
3.2 Sampling Technique
After preparing the questionnaire, we selected a sample from each of two of the biggest Telecommunication Companies
in Somaliland which are Telesom and Somtel. This study applied non-probability sampling technique, particularly a
convenient sampling technique. Unlike probability sampling, convenient sampling is the easiest, cheapest, and least time
consuming and does not require having sample frame. The respondents were middle level managers who had been
working the company for at least two years and their subordinates at the companies.
Another, reason we decided to use non-probability sampling is to prevent loss of information. For example, if respondents
refuses to fill questionnaire because of his/her working schedule, or business we moved to the next persons available to
answer questions in the survey questionnaire.
3.3 Data Collection
The target population of the study was the employees of Telecommunication companies in Somaliland. The data were
collected using questionnaire from July to September, 2021 and the respondents came from two largest
Telecommunication Companies across Somaliland.
Before data collection, a self-administered a pilot test study was conducted based on 20 (10 responses from each of two
largest telecommunication companies in Somaliland) responses collected by visiting the firm‟s head by the researchers.
After completing, the pilot study minor modifications were made to the questionnaires in order make easily
understandable and improve readability of some questions. Data were collected from each telecommunication company
by distributing revised questionnaires.
A sample of 115 employees were contacted and distributed questionnaires. However, 107 employees were returned and
answered the questions completely. While the remaining 8 questionnaires were not returned or had more missing data. To
minimize any chance of misunderstanding about the study, we gave each respondent a brief introduction about the study
and the questionnaire before they start answering questions and we translated into Somali those who felt difficult to
understand and answer questions.
3.4 Data Analysis
In order to analyze the collected data, different data analysis techniques were used in this study. To understand the
demographic distribution of the respondent, descriptive statistics was employed. Reliability test was used before the data
analysis. In addition to that, confirmatory factor analysis was used to reduce the number of questions and to examine the
objectives of this study. The data analysis package used in the analysis of data was Statistical Process of Social Science
(SPSS version 23).
4. ANALYSIS RESULTS
4.1 Demographic analysis
The purpose of this section is to measure the respondent‟s background based on their gender, education level, age, and
years of working experience in the companies. The analysis depicts that majority of the participants were male with a total
of 87 (81.3%), while out the total 20 (18.7%) of the respondents were female. This indicates that majority of the
respondents were male employees.

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Vol. 8, Issue 3, pp: (33-45), Month: September - December 2021, Available at: www.noveltyjournals.com

The analysis also revealed that almost two-third 69 (64.5%) of the respondents were within the age group of 26 to 36
years old. While 18 (16.8%) and 16 (15%) were between 18-25 and 37-47 years old respectively. However, only 1 (0.9%)
was 58 years old and above. Based on this result we concluded that most of the employees were at the perfect age to
represent the current trend of employees at work.
The analysis also shows that most 68 (63.6%) of the respondents have bachelor degree, while slightly same 10 (9.3%) and
9 (8.4%) number of respondents have secondary certificate and diploma respectively. However, only 18(16.8%) of the
participants have Master‟s degree and above.
The last analysis of the demographic factor deals with years of working experience in the companies. Most of the
employees 44 (41.1%) have worked in the telecommunication sector between 1 to 5 years, followed by 39 (36.4%) who
have 6-10 years of working experience in this sector. While 15 (14%) have 11-15 years of working experience. Table 4.1
below shows the result of the demographic analysis.
Table 4.1. Demographic analysis
Demographic factors Analysis
N Frequency (%)
Gender Male 87 81.3
Female 20 18.7
Age 18-25 18 16.8
26-36 69 64.5
37-47 16 15.0
48-58 3 2.8
Above 58 1 0.9
Highest level of education completed Primary 2 1,9
Secondary 10 9.3
Diploma 9 8.4
Degree 68 63.6
Master and above 18 16.8
Years of experience 1-5 44 41.1
6-10 39 36.4
11-15 15 14.0
16-20 6 5.6
21-25 3 2.8
Source: Field Survey Data, 2021
4.2 Reliability Test
Table 4.2. Reliability Test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .778

Bartlett's Test of Sphericity Approx. Chi-Square 967.627

df 120
Sig. .000

Source: Field Survey data, 2021

In the above table, Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy shows the proportion of variance in the
variables that might be caused by underlying factors. KMO value on this data is 0.778, which close to 1, therefore we can
state that factor analysis is useful in this data.

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On the other hand, Bartlett‟s Test of Sphericity is used to test the null hypothesis that the correlation matrix is an identity
matrix, which shows the variables are unrelated and not appropriate for structure detection. The significance value (Sig. =
0.000) is very small (less than 0.05), which indicates that a factor analysis is useful with this data. Together these two
tests, we can conclude this data in appropriate for factor analysis.
4.3 Factor Analysis
Factor analysis is a multivariate data analysis technique that is used to reduce a large number of uncorrelated variables to
smaller latent variables known as factors without losing much of the information (Abdi & Greenacre, 2020).
Factors analysis, especially expletory factor analysis is widely used in business. The purpose of using exploratory factor
analysis also known as principal component analysis is to reduce the large number of items (questions) into groups of
similar concept and this reduced the total number of required variables. In this application, factors were rotated using
Varimax Rotation with Kaiser Normalization to evaluate the underlying structures for the 16 items of employee‟s job
satisfaction.

Based on the results from factor analysis, table 4.3 shows that Factors 1 has an eigenvalue of 4.561 and illustrates 28.5%
of the total variation in the data set, Factor 2 has an eigenvalue of 3.574 and explains 22.34%. Similarly, Factor 3 and
Factor 4 have an eigenvalues of 1.416 and 1.109, which are greater than 1, both Factors explains 8.85% and 6.93% of the
variation of the data respectively. These four Factors explain 66.62% of the total variability of the data, whereas the
remaining factors have smaller contributions, with eigenvalues less than 1. Therefore, we can conclude that based on our
initial eigenvalue, the result showed there were only four Factors after running Factor.

Table 4.3 Total Variance Explained

Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
% of Cumulative % of Cumulative % of Cumulative
Component Total Variance % Total Variance % Total Variance %
1 4.561 28.504 28.504 4.561 28.504 28.504 3.593 22.455 22.455
2 3.574 22.335 50.839 3.574 22.335 50.839 2.895 18.095 40.550
3 1.416 8.852 59.691 1.416 8.852 59.691 2.409 15.058 55.608
4 1.109 6.930 66.621 1.109 6.930 66.621 1.762 11.013 66.621
5 .767 4.796 71.417
6 .726 4.539 75.956
7 .663 4.146 80.102
8 .616 3.849 83.952
9 .588 3.676 87.627
10 .563 3.520 91.148
11 .478 2.987 94.135
12 .303 1.894 96.029
13 .277 1.730 97.759
14 .232 1.447 99.206
15 .088 .549 99.755
16 .039 .245 100.000

Extraction Method: Principal Component Analysis.

Table 4.4 below indicates that the data was condensed into four Factors only and the highest loading items were selected
from each factor. The results for the items and factor loading for the rotated factors with loading less than 0.40 was
ignored to improve clarity.

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The findings in Table 4.4, the highest loading items in factor 3 (Recruitment and selection process) are listed in four
items. Item 1 “The practice of employing one person over the expense of another is practiced in all recruitment and
selection process in the company” is highest loading with a loading of 0.772. However, item 2 “When recruiting new
employees, tests and interviews are conducted by trained and impartial people” has the lowest (0.584) loading compared
to all other items in Factor 3.
Four items have the highest loading in Factor 1 (Staff Training and Development). The highest loading item in Factor 1 is
Item 6 “Our employees have received training in generic skills, like problem solving and communication skills”, which
have a loading of 0.969, while item 4 “In our company, employees have trained in a variety of jobs or skills and routinely
perform more than one job” with a loading of 0.893.
Next, the five items, which have the highest loading from Factor 2 (Employees Motivation and Reward), are listed from
the highest loading to lowest loading items and items 10 “Employees have a high degree of job security” with loading
0.826 to lowest item, item 11 “Our company encourages learning and application of knowledge at workplace” with a
loading of 0.566.
Finally, three items that have the highest loading from Factor 4 (Teamwork and Collaboration). Item 15 “In our company,
knowledge is shared with colleagues and units through collaboration” with a loading of 0.787 load highest to lowest
loading item, item 14 “Our Company supports cross-functional teamwork for learning through collaboration” with a
loading of 0.619.
Table 4.4. Factor Loading after varimax rotation
Component
Items 1 2 3 4
The practice of employing one person over the expense of another is practiced in .772
all recruitment and selection process in the company.
When recruiting new employees, tests and interviews are conducted by trained .584
and impartial people.
Our company discloses information to applicants regarding the steps and criteria .722
of the selection process.
In our company, employees have trained in a variety of jobs or skills and .893
routinely perform more than one job.
I do not have the required skills and abilities to do my work effectively. .968
Our employees have received training in generic skills, like problem solving and .969
communication skills.
Employees are empowered to make decisions. .939
Our company rewards employees who make extra efforts. .727
Employees receive a fair recognition as a result of their contribution to team .671
efforts.
Employees have a high degree of job security. .826
All appointment in the company is based on merit; the best person for the job is .585
selected.
Our company encourages learning and application of knowledge at workplace. .566 .465
Our company promotes employees personal and professional growth. .729
Our company supports cross-functional teamwork for learning through .619
collaboration.
In our company, knowledge is shared with colleagues and units through .787
collaboration.
My company usually encourages teamwork and collaboration. .660
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
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5. CONCLUSION, RECOMMENDATION & FUTURE RESEARCH WORK

5.1 Conclusion
A piece of human asset or the executives that explicitly manages preparation and improvement of the workers in the
companies is the Human Resource Development. The success of the companies depends on the approach of the HR
Management. Human Resource Management Practices improves both current and future operations by raising the
efficiency and effectiveness of companies. Nevertheless Human Resource is the cornerstone of socio-economic
development in every organization, territory and countries all over the Globe.
As many other countries in the world, the telecommunication companies in Somaliland has in the recent past been among
the most competitive industry of the economy. Consequently, the improving competitive environment led to malfunction
of Human Resource Management practices which lead to poor performance. Employee turnover have much negative
effect on efficiency of the Telecommunication companies in Somaliland since skilled workers often leave.
However, to investigate the HR Management practices in the Telecommunication Companies in Somaliland a closed-end
questionnaire was prepared. The population used in this research study were the telecommunication companies in
Somaliland, especially Hargeisa. After preparation of the questionnaire we selected a sample from each of two of the
biggest telecommunication companies in Somaliland (Telesom & Somtel). The study applied non-probability sampling
technique particularly convenient sampling technique.
The respondents were middle level managers and their subordinates at the companies. To prevent loss of information we
decided to use non-probability sampling. Before data collection, a self-administered a pilot test study was conducted
based on 20, 10 from each of two largest telecommunication companies in Somaliland. In order to make easily
understandable and improve readability of the questions the pilot study a minor modifications were made for the
questionnaires.
A sample of 115 employees were contacted and distributed questionnaires. To decrease any chance of misunderstanding
about the research, before answering respondents from the questions we gave each person a brief introductory about the
study and we translated in to Somali to those who were felt difficult to understand the content of the questions. In the
study different data analysis techniques were used. In the demographic part descriptive statistics was employed and
reliability test was used before the data analysis. In addition to that, to reduce the number of questions and to examine the
objectives of this study confirmatory factor analysis was used.
To measure the respondents‟ background based on their gender, education level, age, and years of working experience in
the companies. The analysis depicted that the majority of the participants were male. The analysis was also revealed that
almost two-third of the respondents were within the age of group of 26 to 36 years old. The analysis also shown that most
of the participants have a Bachelor Degree and the last analysis of the demographic part revealed that majority of the
respondents were working 1 to 5 years at the companies.
In this study, factors were rotated using Varimax Rotation with Kaiser Normalization to evaluate the underlying structures
for the 16 factors of employees‟ job satisfaction. The results of the factor analysis, factor one illustrated 28.5% of the total
variation in the data set, factor two illustrates 22.34% of the data and finally factor three and four explained 8.85% and
6.93% of the variations of the data respectively. The four Factors explained 66.62% of the total variability of the data.
Therefore, the data analysis of this study concluded that based on initial eigenvalue which showed that there were only
four Factors after running Factor.
In the principle component analysis, the data was condensed into four factors only and the highest loading items were
selected from each factor. The results for the items and factor loading for the rotated factors with less loading was ignored
to improve clarity. The highest loading items in Factor 3 “Recruitment and Selection Process” are listed in four times.
Item 1 „the practice of employing one person over the expense of another is practiced in all recruitment and selection
process in the company‟ has the highest loading. Item 2 „When recruiting new employees, tests and interviews are
conducted by trained and impartial people‟ has the lowest loading compared to all other items in Factor 3.
In factor 1 “Staff Training and Development” four items have the highest loading. The highest item for Factor 1 is item 6
„Our employees have received training in generic skills, like problem solving and communication skills‟, while item 4 „In
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our Company, employees have trained in a variety of jobs or skills and routinely perform more than one job‟ is the lowest
item which have a loading factor. Next, Factor 2 “Employee Motivation and Reward”, item 10 „Employees have a high
degree of job security‟ has the highest loading variable while item 11 „Our Company encourages learning and application
of knowledge at workplace has the lowest loading item in factor 2. Finally, Factor 4 “Teamwork and Collaboration” item
15 “In our company, knowledge is shared with colleagues and units through collaboration had the highest loading in
factor four, while item 14 „Our company supports cross-functional teamwork for learning through collaboration‟ have the
lowest loading factor 4.
5.2 Recommendations
In light of the evidence on the findings and conclusion of the study, the researchers suggests the following germane
recommendations:
 Telecommunication companies in Somaliland should redouble their efforts in looking for experienced employees in
the recruitment and selection processes, while employing one person over the expense of another, conducting test and
interviews from impartial people and the disclosure of information to applicants during selection process.
 Telecom companies in Somaliland should increase Training and Development of their staff by investing time and
effort in building competencies on a continuous basis so that employees become professionals to perform their duties
while providing low performers training to develop their skills.
 Telecommunication Companies in Somaliland should effectively motivate and reward to all staff in their respective
area, valuing for what they do and achieve and use of incentives to boost individual, and team performance and ultimately
inform the staff about their performance.
 Telecommunication Companies of Somaliland should create a favorable environment of teamwork and collaboration,
while supporting cross-functional teamwork for learning, cooperation among staff and encouraging sharing knowledge
with colleagues and units.
5.3 Future Research Work
In this study, evaluation was only based on employee perceptions of job satisfaction. Therefore, in order to expand the
scope of the study and methods used, further research will be performed by allowing participants in-depth interviews.
Also this study focused on private telecommunications companies in Somaliland, particularly Hargeisa, based on this fact
among others, it is therefore recommended that a broad based study covering all regions of Telecommunication
Companies be done to find out the relationship between human resource management practices and employee job
satisfaction. According to this study, further studies should be undertaken to establish what increases job satisfaction since
there are other variables like nature of work and work environment methodologies that could motivate employees.
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