INFLUENCE OF RESOURCE ALLOCATION ON ORGANIZATIONAL PERFORMANCE OF CEMENT MANUFACTURING FIRMS IN KENYA
Mohamed Amin Hussein Ali - School of Business and Economics, Kenya Methodist University, Kenya.
Douglas Ogolla - School of Business and Economics, Kenya Methodist University, Kenya.
Suzan Nzioki - School of Business and Economics, Kenya Methodist University, Kenya.
ABSTRACT
Implementation of a strategy in an organization involves a critical look at the firm’s human and non-human resources to achieve its objectives. A firm’s organizational performance is measured by a prescribed yardstick which is based on evaluating both the financial and non-financial metrics. Kenyan cement manufacturing has experienced a decline in performance in the last few years; the main reason for this trend is the adoption of alternative construction materials that has replaced the use of cement as well as the adoption of strategies in management that focus on fundamental standards of strategic management. Specifically, the study evaluated the effect of resource allocation on the organizational performance of Kenyan cement manufacturing firms. The target population was 209 staff in five leading cement manufacturing companies in Kenya. The sampling method was stratified random sampling to obtain a sample of 137 respondents. The researcher used questionnaires to collect data. Data was analyzed through both descriptive and correlation analysis. The study concluded that resource allocation positively and significantly influences the organizational performance of cement manufacturing companies in Kenya. The study recommended that different departments of cement manufacturing companies have adequate human resources to avoid workforce shortfall by utilizing the best recruitment and selection policies. The study also recommended that the management of the companies should ensure that there are adequate financial resources that will enhance the achievement of the preset objectives and that there is proper planning for these resources to enhance organizational performance.