INFLUENCE OF STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM) PRACTICES ON EMPLOYEE PRODUCTIVITY: A CASE OF THE ENERGY SECTOR IN KENYA
Rhodah Thuo - Master of Business Administration in Strategic Management, Kenya Methodist University, Kenya
Dr. Eng. Thomas Senaji - Kenya Methodist University, Kenya
Dr. Eunice Kirimi - Kenya Methodist University, Kenya
ABSTRACT
HR strategy greatly recognizes HR's partnership role in the strategizing process to achieve organizational excellence in all respects through a highly committed and competent workforce, preferably in a non-union environment. The study sought to establish the influence of strategic human resources management (SHRM) practices on employee productivity: A case of the energy sector, Kenya. The study was guided by the following specific objectives: effect of socialization to employee productivity in the energy sector, strategic compensation affects employee productivity in the energy sector, effect of strategic Work life balance on employee productivity in the energy sector and the influence of succession practice on employee productivity in the energy sector, Kenya. A comprehensive literature review has been carried out in chapter two outlining previous research on same area of study. Based on comprehensive literature review a suitable conceptual framework which dramatically depicts the key areas of study was be developed. This conceptual framework outlines the independent variables (socialization, strategic compensation, and strategic Work life balance and succession practice) and dependent variables (employee productivity in the energy sector). The study adopted a descriptive survey design. The total population is 8 firms in the energy sector which has 1250 employees, but the study target population includes human resource department, top management and operation level management, the sample size was 10% of the target population which was 125 respondents. The study relied on primary data collected through administering a structured questionnaire comprising closed and open-ended questions. The data was analysed using descriptive analysis such as descriptive statistics, mean scores and standard deviations, frequencies distributions and percentages. The results were presented in form of table, pie charts, graphs and figures. The study established that A unit increase in strategic compensation would significantly result into 30.4% improvement in employee productivity p=0.001<0.05. A unit increase in Succession practice would significantly lead to 66.3% increase in employee productivity p=0.000<0.05. The study concluded there were several aspects of socialization at the work place of the studied organization that included encouraging formation of self-managing teams, team building days and promotion of top down social interactions. Based on both correlation and regression results, strategic compensation significantly affected employee’s productivity. The highly practiced aspect of strategic work life balance was appropriate leave programs, appropriate part time working schedule and understanding that long daily and weekly working hours caused conflicts between work and relationships with respondents’ families. From both correlation and regression analysis, succession practices significantly affected employee`s productivity. The study recommends that all organizations in the Energy sector in Kenya should strengthen on their socialization practices at their work place. The management team of Energy sector in Kenya should ensure that the pay to is equitable to the work they perform. Employees with greater tasks should be rewarded highly relative to staff with low amount of work performed. The top management team of all Energy firms operating in Kenya should provide technological resources that allow staff to work from home if they have family affairs to attend to.
