EFFECTS OF EMPLOYEE DEVELOPMENT ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF RIFT VALLEY MACHINERY SERVICES LIMITED
Ann Njeri Muiruri - Master of Business Administration, St. Paul’s University, Kenya
Dr. Julius Kahuthia - St. Paul’s University, Kenya
Dr. Charity Muraguri (PhD) - St. Paul’s University, Kenya
ABSTRACT
Organizations operate in a very dynamic business environment occasioned by advancement in technology and globalization. These sudden changes have led to some organizations to underperform to the extent of even closing down. This has called for appropriate measures by organizations to enable them manage change effectively as it occurs. Despite the formulation of these strategies in response to change, some organizations still continue to perform dismally in terms of profitability and market share, necessitating the need to evaluate the effects of employee development on organizational performance in Rift Valley Machinery Services Limited. The study adopted a case design to answer questions in relation to the study. The target population was 180 respondents who are employees in Rift Valley Machinery Services Limited and 54 respondents were sampled randomly for the study representing 30% of the target population. The study was conducted between February 2019 and May 2019. The researcher acquired information from finance, ICT, security, Human Resources, procurement and production division. Questionnaires were employed to acquire pertinent information from respondents by the researcher. In addition, interviews were also administered to managers in selected departments who were sampled purposively using the same questionnaire. The data was then analyzed quantitively and qualitatively and presented using frequency distribution tables, bar graphs and pie-charts. The study established that compensation management and employee development were found to have greater positive effects on organizational performance. The study concluded employee development impacts on change management had varied effects on organization performance which means more than helping employees become continuous learners, regardless of the requirements of the organization, and that effective compensation management enhances employee commitment. The study recommends that the organization with regard to employee development, should give the employee a greater understanding of their responsibilities within their role, and in turn build their confidence.
