HUMAN RESOURCE MANAGEMENT PRACTICES AND PERFORMANCE OF MANUFACTURING COMPANIES IN NAIROBI CITY COUNTY, KENYA
Pamella Kathambi Njue - Master in Business Administration (Human Resource Management), Kenyatta University, Kenya
Dr. David Kiiru - Department of Human Resource, School of Business, Kenyatta University, Kenya
ABSTRACT
Performance of manufacturing firms in Kenya has been low compared to other countries. Research over the years, has established significantly a positive correlation between HR practices and performance. The assumption underpinning the practice of HRP is that people are the organisations key resource and performance largely depends on them. Therefore, if an appropriate range of HRP are developed and implemented effectively, HR will make a substantial impact on performance. However, the majority of the manufacturing firms in Nairobi City county are yet to catch up with the HRP . The general objective of this study was to investigate the effects of human resource practices on the performance of manufacturing companies in Nairobi city county, Kenya and Specific objectives are to establish how compensation affects the performance of manufacturing companies in Nairobi City county,Kenya,to establish how training affect performance of manufacturing companies in Nairobi City county, Kenya, to assess the relationship between recruitment and performance of manufacturing companies in Nairobi city county, Kenya and to determine the extent to which information sharing influence Performance of Manufacturing Companies in Nairobi city county, Kenya. The study utilized descriptive research design. The study population comprised of all the 95 manufacturing firms in Nairobi City county, Kenya as outlined in the manufacturing association of Kenya 2016. Self-administered questionnaires was used to collect primary data. Descriptive statistics was computed to describe the characteristics of the variables in the study while multiple regression analysis was used to establish the nature of the relationships between the independent and dependent variables. The findings indicate that there is significant positive relationship between compensation and manufacturing companies performance in Nairobi City, training has a significant positive relationship with performance of manufacturing firms while recruitment had a significant positive relationship with manufacturing firms performance in Nairobi City County information sharing also had significant relationship with organizational performance. The findings support the theory of resource based view that competitive advantage comes from the resources that are possessed by an organization. The recommendations are; human resource managers should offer a competitive compensation to their staff,offer adequate training and recruitment while having information sharing that ultimately improved manufacturing performance as shown by the research findings.
