EFFECT OF STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN THE KENYAN PUBLIC SECTOR.
Keywords:
Board, OECD Principles, the International Corporate Governance Network (ICGN), StakeholdersAbstract
Purpose: The purpose of the study was effect of strategic human resource management practices on organizational performance in the Kenyan public sector.
Methodology: The research design used a descriptive design. The target population of this study was the large manufacturing firms in Kenya which were members of Kenya Association of Manufacturers. The population was 108 large manufacturing firms. A sample size of 54 firms was taken. The study used both primary data and secondary data. Data was collected by use of questionnaire. Analysis was done by descriptive statistics using Statistical Package for Social Sciences version 21.0. Data was analyzed mainly by use of descriptive and inferential statistics. Descriptive statistics included mean and standard deviation. Data was also presented by use of graphs, pie charts and tables. Regression analysis was also used to show the sensitivity of financial performance, ROA to various independent variables.
Results: Following the study findings it was possible to conclude that all the Independent variables had an effect on a company's financial performance. This was supported by majority who concluded that independent directors had a mandate to decision making in financial performance, the Independent directors effectively monitor and control firm activities by reducing opportunistic managerial behaviors and expropriation of firm resources board committees. Enhance effective monitoring in financial performance, the board committees in our firm ensures that executive directors make decisions that are in the best interests of shareholders. Coordination and communication problems impede company performance when the number of directors' increases, overcrowded boards causes shareholders to lose money in the company, the post of the chairman is part-time and the main responsibility is to ensure that the board works effectively. Regression results indicated that there was a positive and significant relationship between independent directors, board committees, board size and CEO's dual role as a company's chairman on a company's financial performance and financial performance of manufacturing firms.
Unique contribution to theory, practice and policy: The study recommended that the firm should have nonexecutive directors who act as "professional referees" to ensure that competition among insiders stimulates actions consistent with shareholder value maximization, A company should have small boards so as to have more favorable performance, the appropriate board size should be 7 to 8 members and the post of the CEO/chairman should be full-time
Downloads
References
Albizu, E. (1997). Flexibilidadlaboral y gestión de los recursoshumanos.Barcelona: Ariel
Armstrong,M.(1995).A handbook of personnel Management Practices, Kogan Page Limited London.
Arnoff, J. (1971) Achievement Motivations Training and Executives advancement, Journal of Applied Science New York
Arthur, J. B. (1994). Effects of human resource systems on manufacturing performance and
turnover. Academy of Management Journal, 37(3), 670-687.
Atkinson, J. (1984). Manpower strategies for flexible organisations.Personnel Management. 16(2), 32-35.
Almer, E. D., Cohen, J. R., & Single, L. E. (2003), Factors affecting the choice to participate in flexible work arrangements. Auditing, 22, 69-91.
Barney, J. (1991), "Firm resources and sustained competitive advantage", Journal of Management, Vol. 17 No. 1, pp. 99-120.
Becker, B. E. &Huselid, M. A. (1998). "High performance work systems and firm performance: A synthesis of research and managerial implications". Research in Personnel and
Human Resource Management, 16, 53-101.
Becker, B., &Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy ofManagement Journal, 39(4), 779-801
Burke, R., & Ng, E. (2006). The changing nature of work and organizations:Implications for human resource management. Human ResourceManagement Review, 16(2), 86-94.
Bowen, D.E. &Ostroff, C. (2004).Understanding HRM-firm performance linkages: Therole of the strength of the HRM system.Academy of Management Review, 29, 203-221.
Cappelli, P. (2008), Talent on Demand, Harvard Business School Press, Boston, MA.
Chandler, G. N., and G. M. McEvoy, 2000, "Human ResourceManagement, TQM, and Firm Performance in Small and Medium-Size Enterprises", Entrepreneurship: Theory andPractice,Vol.25,No.1,pp.43-58
Chiu,R.K.,Luk,V.W.M and Tang, T.L.P(2001). Hong Kong and China: the cash mentalityrevisted.Compensation and BenefitsReview, May/June,pp66-72
Cohen, J. R., & Single, L. E. (2001), An examination of the perceived impact of flexible work arrangements on professional opportunities in public accounting Journal of Business Ethics, 32, 317-328
Delery, J., & Doty, D.H. (1996). Modes of theorizing in strategic human resource management: test of universalistic, contingency and configurational performance predictions. Academy of Management Journal, 39, 802-835.
Dessler, G. (2000). Human resource management. U.S.A.:Prentice Hall.
Dimba, B. and K'Obonyo, P. (2009), "The effect of strategic human resource management practices on performance of manufacturing multinational companies in Kenya: a moderating role of employee cultural orientations", in Simon, S. (Ed.), RepositioningAfrican Business and Development for the 21st Century of 2009, Proceedings ofInternational Academy of African Business and Development, Kampala, Uganda, May 19-23, pp. 403-8.
Dyer, L. and Reeves, T. (1995), "Human resource strategies and firm performance: what do we know and where do we need to go?" International Journal of Human Resource Management, Vol. 6, pp. 656-70.
Ejiogu, A.(2000), Human Resource Management towards Greater Productivity, Generation Press Ltd Lagos
Njiru, E.(2008), The role of State Corporations in developmental state: The Kenyan experience, Kenya Institute of Administration.
Guest, D.E. (1997), "Human resource management and performance: a review and research agenda", International Journal of Human Resource Management, Vol. 8 No. 3, pp. 263-76.
Hill, E. J., Hawkins, A. J., Ferris, M., & Weitzman, M. (2001), Finding an extra day a week: The positive influence of perceived job flexibility on work and family life balance. Family Relations, 50, 49-58
Huselid, M.A. (1995), "The impact of human resource management practices on turnover, productivity, and corporate financial performance", Academy of Management Journal,
Vol. 38 No. 3, pp. 635-72.
Holtom, B.C., Mitchell, T.R., Lee, T.W. and Inderrieden, E.J. (2005), "Shocks as causes of turnover:what they are and how organizations can manage them", Human Resource Management,Vol. 44 No. 3, pp. 337-52
Iftikhar,A.,&Siraj. D,(2009). ).Evaluating training and development.Gomal Medical College and Gomal University, D.I.Khan,Pakistan
Kaplan, R.S. and Norton, D.P. (1996), The Balanced Scorecard, Translating Strategy into Action,Harvard Business School Press, Boston, MA.
Katou, A. and Budhwar, P.S. (2006), "Human resource management systems on organizational
performance: a test of mediating model in the Greek manufacturing context", International
Journal of Human Resource Management, Vol. 19 No. 7, pp. 1223-53.
Katou, A.A., &Budhwar, P.S. (2007).The effect of human resource management policies on organisational performance in Greek manufacturing firms.ThunderbirdInternational Business Review, 49, 1-35.
Khandekar, A. and Sharma, A. (2005), "Organizational learning in Indian organizations:
a strategic HRM perspective", Journal of Small Business and Enterprise Development,
Vol. 12, pp. 211-26.
Khatri, N. (2000). Managing human resource for competitive advantage: a study of
companies in Singapore. International Journal of Human Resource
Management, 11, 2, 336-365.
Kothari C.R. (2008). Research Methodology: Methods and Techniques (2nd Ed). New Delhi:
New Age International (P) Limited
Lazear,E.P.(1998),Personnel Economic for Managers,John Wiley &Sons,NewYork,NY
List of state corporation (2012).from http://www.scac.go.ke
MacDuffie, J. (1995). Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry. Industrial & Labor Relations Review, 48(2), 197-221.
Mamoria, C.B (1995)."Personnel Management", Himalaya Publishing House New Delhi.
Meyer, J. (1997), Examining workplace flexibility across work and family domains. Dissertation Abstracts International, Section B: Sciences and Engineering. 57,
Milkovich,G.T. AND Newman,J.M.(1999), Compensation,6thed.,Irwin/McGraw-Hill,Boston,MA
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2000).Human Resource Management.Chicago, IL: Irwin.
Obisi Chris (2001), Employee development, Issues and dimensions, Unical Journal of public Administrator Sept Vol. 1
Panayotopoulou, L., Bourantas, D. and Papalexandris, N. (2003). Strategic human resource
management and its effects on firm performance: an implementation of the competing
values framework, International Journal of Human Resource Management, Vol. 14 No. 4,
pp. 680-99.
Pfeffer, J. (1994), "Producing sustainable competitive advantage through the effective management of people", Academy of Management Executive, Vol. 9 No. 1, pp. 55-69.
Pfeffer, J. & Baron, J.N. (1988). Taking the workers back out: recent trends in the structuring of employment, in Barry M. Staw and L. L. Cummings (eds.), Research in Organizational Behavior. 10, 257-303. Greenwich, CN: JAI Press.
Redman T & Mathews P.B (1998), "Service quality and humanresource management: A review and research agends", Personnel Review, Vol.27, Issue.1, pp.57-77.
Singh, K. (2003), "The effect of human resources practices on firm performance in India", Human Resource Development International, Vol. 6 No. 1, pp. 101-16.
Scott.Clotheir&Spriegel,(1977). Personnel Management: Principles, practices and point of View. Tata McGraw-Hill Publishing Company Ltd. New Delhi, Sixth Edition. Steinmetz, Lawrence (1969) Unrecognized Enigna of Executive Development, "Management of Personnel, New York Vol. (8) 5".
Tzafrir,S.S.(2005). A universalistic perspective for explaining the relationship between.HRM practices and firm performance at different points in time. Journal of Management Psychology, 21(2),109-130.
Wall, T.D. & Wood, S.J. (2005).The romance of human resource management andbusiness performance, and the case for big science. Human Relations, 58, 4, 429-462.
Werbel, J. &Demarie S. (2001). Strategic human resourcemanagement and person-environment fit: A Strategiccontingency perspective. Academy of managementproceedings and membership directory, PG1-G6.
Woodruffe, C. (1999).Assessment Centres: Identifying and Developing Competence.London: Institute Personnel Management.
Youndt,M.A.,Vnell,S.A.,Dean,J.W.,andLepart D.P.(1996).Human Resource Management Manufacturing Strategy and Firm Performance. Academy of Mangement Journal,39(4),836-66
Zupan, N., &Kase, R. (2005). Strategic human resource management in Europeantransition economies: Building a conceptual model on the case of Slovenia.International Journal of Human Resource Management, 16, 882-906.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
