THE MODERATING EFFECT OF CORPORATE GOVERNANCE ON THE RELATIONSHIP BETWEEN EMPLOYEES SEPARATION PERFORMANCE OF SELECTED PARASTATALS IN KENYA
Keywords:
Corporate Governance, Performance, ParastatalsAbstract
Purpose: Most organizations effect employee separation programme with an aim of improving productivity and performance, increase competitiveness, decrease costs and improve quality. However, a number of separation processes in several Parastatals have negated this position. Some unexpected undesirable results have attracted both theoretical and practical experts' attention to the output of separation and the main questions involved in managing separation. The aim of this study was to probe employee separation effects on the performance of the selected Parastatals in Kenya. The study sought to determine the moderating effect of corporate governance on the relationship between employee separation and performance of the selected Parastatals in Kenya.
Methodology: The study analyzed six Parastatals in Kenya. Qualitative data was collected using questionnaires from 96 employees of the affected Parastatals. Regression analysis and independent t-test was used to analyze the data. A questionnaire was used to collect data from ninety six employees sampled through stratified random sampling. Linear regression and independent t-test were used to test the relationship between the independent and dependent variable.
Results: The study found evidence of positive association between corporate restructuring after separation with performance. From the findings the benefits of separation as envisioned in the structural adjustment programme are yet to be met by the affected Parastatals. Majority of Parastatals employed a mix of voluntary and involuntary methods of separation, the study finds no evidence of relationship between method of separation and organization performance.
Unique Contribution to Theory, Practice and Policy: The study recommends that employers manage the separation strategy in such a way that it minimizes disadvantages, whereas employee separation may be desirable in instances where employees underperform or whose skills are not matched with the organization's mandate or goals, managers should limit the turnover rate of employees and ensure key employees are retained in the organization. Further the new employers should undergo a thorough vetting to ensure organizations tap best talent that can be retained in the long run in the organization.
Downloads
References
Baron, A. & Greenberg, H., (1990). Organization Theory and Design, 4e. St Paul MN: West Publishing.
Behn, R. D., (1988). The Fundamental of Cutback Management in Cameron, K. S. Sutton R I and Whetten D.A., (ed): Readings in Organizational Decline: Frameworks, Research, and Prescriptions, Ballinger Cambridge, MA.
Cassio, W. P., (1986). Managing Human Resources: Productivity, Quality of Work Life, Profits. New York, and McGraw Hill.
Erickson, R. A. & Roloff, M. E. (2007). Reduce attrition after downsizing: Analyzing the effect of organizational support, supervisor support and ganger on organizational commitment, International Journal of Organizational Analysis: 15(1), 35-55
Figart, D., (2010). Equal pay for equal work: the role of job evaluation in an evolving social norm, Journal of Economic Issues, 34 No. 1, l-19.
Geralis, M.,Terziovski, M.(2003). "A quantity analysis of the relationship between empowerment practices and service quality", Total Quality Management and Business Excellence, 14.1.45-62.
Gomez-Mejia, L.R., Balkin, D.B & Cardy, R.L., (2008). Managing Human Resource, 4th Ed. New Delhi, Prentice-Hall of India.
Johnson G., Scholes. K., Whittington. R. (2005). Exploring corporate strategy. Harlow : Financial Times Prentice Hall.
Levine, I., (1984). Organizational Crisis and Individual Response: New Trends for Human Service Professionals in Canadian Journal of Community Mental Health: 3
Makawats-Akul, N. & Kleiner, H. (2003). The effect of downsizing on morale and attrition, management: Research News: 26
Meier, H. E. (2011). Quality assessment of atmospheric surface fields over the Baltic Sea of an ensemble of regional climate model simulations with respect to ocean dynamics; Oceanologia, 53, 193-227.
Munoz-Bullon, F. &, Sanchez Bueno M., (2010). Downsizing implementation and financial performance: Management decision: 48:8.
Mwangi .E. N. (2002). A survey of factors that influence the attitudes of survivors of downsizing towards management and job security in the banking sector.
Opiyo, H. (2006). Civil Service Reform Policy in Kenya: A review of the Retrenchment Strategy: Discussion Paper Series: Institute of Policy Analysis and Research.
Teddlie, C., & Tashakkori, A. (2009). Foundations of Mixed Methods Research: Integrating Quantitative and Qualitative Approaches in the Social and Behavioral Sciences. SAGE Publications Inc.
Zatzick, C. D., Marks, M.L., & Iverson, R.D.: Which way should you downsize in crises?" MIT Sloan Management Review, 51(1), 78-86. (2009).
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.
