Academic journal article Journal of Emerging Trends in Economics and Management Sciences

Effectiveness of Strategic Human Resource Management on Organizational Performance at Kenya Seed Company-Kitale

Academic journal article Journal of Emerging Trends in Economics and Management Sciences

Effectiveness of Strategic Human Resource Management on Organizational Performance at Kenya Seed Company-Kitale

Article excerpt

Abstract

Strategic Human Resource Practices are particular to any organization and are meant to contribute to productivity, expansion and growth of a company. However, not all organizations realize these organizational performance related benefits. We do not know how Kenyan organizations are performing in terms of strategic human resource management. The objective of the study was to examine the relationship between strategic human resource practices and organizational performance. The study was aided by the theory of high performance management approach to strategic HRM. The study targeted a population of 314 from Kenya Seed Company - Kitale, and a sample size of 115. The target population was first stratified into three groups representing the three levels of management, namely: management, supervisory and lower cadre. Simple random sampling was then used to select the cases from each group to raise the sample size. The study revealed that Kenya Seed Company makes use of the following strategic human resource practices: employee development strategy, motivation strategy, maintenance strategy and staffing strategy. The descriptive statistics results suggested that the most common strategic human resource practices are motivation strategy (53.0%), and the employee development (21.7%). Other fairly common strategic human resources practices are staffing strategy (20.0%) and maintenance strategy (5.2%). The results imply that the most common strategic practice at the Kenya Seed Company is the motivation strategy. Using multiple regression analysis it was found that there was a linear positive relationship between performance and strategic human resource management practices (r = 0.708, p=0.000). With F = 30.082 and a p-value =0.000 meant that the regression model constructed was good enough to capture the relationship between strategic human resource management practices and performance. The sufficiently large coefficient of determination, r^sup 2^ = 0.501, meant that 50.1% of the variation in performance could be attributed to strategic human resource management practices. Thus the researcher rejected the null hypothesis and concluded that there is a linear positive relationship between performance and strategic human resource management practices. The findings of the study will be beneficial to the company, and other manufacturing companies in their quest to improve their performance. Other researchers in strategic human resource and organizational performance will equally find the study useful literature, and a base from which to formulate further studies. Furthermore, the results of the study will be significant to other organizations as they plan for human resource management.

Keywords: strategic human resource practices, organizational performance, employee development, motivation, maintenance.

(ProQuest: ... denotes formulae omitted.)

INTRODUCTION

The term strategy has been defined by Cramer (1991) as the direction and scope of an organization over the longer term which ideally matches its resources to its changing environment and in particular, to its markets, customers and clients to meet stakeholders expectations. The changing environment itself needs to be managed proactively, hence the need for strategy which anticipates and manages change (Carey, 1997). The strategy therefore determines the direction in which the organization is going in relation to organizational management. Strategy therefore according to Johnson and Scholes (1993) is the process of defining intentions (strategic intent) and allocating or matching resources to opportunities and needs (resource based strategy). The writers conclude that strategy is concerned with achieving competitive advantage through sustainable organizational management.

According to Armstrong (2002), Strategic Human Resource Management (SHRM) is an approach to making decisions on the intentions and plans of the organization in the shape of policies, programmes and practices concerning the employment relationships, resourcing, learning and development, performance management, reward and employee relations. …

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