INFLUENCE OF LABOR RELATIONS ON PERFORMANCE OF AIRLINE INDUSTRY: A CASE STUDY OF KENYA AIRWAYS LIMITED
Owen Ouma Odongo - Master of Business Administration (Strategic Leadership and Management), St. Paul’s University, Kenya
Dr. Hellen Mugambi - Lecturer, Department of Business Studies, St. Paul’s University, Kenya
Robert Abayo - Lecturer, Department of Business Studies, St. Paul’s University, Kenya
ABSTRACT
The aviation industry performance in Africa is behind from the global aviation industry, accounting only for less than three percent of revenue globally like Revenue Persons Kilometers (RPKs). The profitability of airline is nearly connected to the economic growth and development of a country. The purpose of this study was to establish the influence of labor relations on performance of airline industry by undertaking a case study of Kenya Airways Limited. To achieve this objective, the study adopted descriptive research design. The study targeted 300 employees from the three-management level (senior, middle and lower) working at Kenya Airways. The population was stratified as per position and for each stratum 30% was picked to obtain the sample size of 90. Data was collected by use of questionnaire which was both open and close ended questionnaire. The data was analyzed using descriptive and inferential statistics that covered means, standard deviations and regression analysis. The findings were presented in form of figures and tables followed by clear interpretation and formulation of generalization. The study established that labor relations have positive and significant influence on performance of Kenya Airways. The study concludes that labor relations are critical in performance of the airline industry. The study recommends that Kenya Airways should formulate policies and strategies that make the employees working condition favorable. Kenya Airways should be up to date and in line with the organization goals, mission and vision by so doing the study enhances service delivery, maintains and competitiveness. The policies and strategies used by human resource department should be in line with employee’s needs, expectation and meant to improve the working condition of the employees. Effective communication network should be established at Kenya Airways.
