Human Resource Management Practices and Firm Effectiveness of Consumer Goods Manufacturing Firms In Kenya

Show simple item record Bulitia, Godrick 2017-02-28T07:38:07Z 2017-02-28T07:38:07Z 2016
dc.description.abstract Manufacturing sector is salient to the Kenyan economy, with a total workforce of 13% in the formal sector and 1.4 million labour-force in the informal sector. Despite the significance, its contribution to the regional market is low at 7% export and GDP remains stagnant at 10% since 1960s. This has raised the concerns about Kenyan manufacturing sector’s performance in relation to effectiveness. Previous studies in Kenya have focused on strategic human resource management practices and firm performance. While the HRM practices - firm effectiveness relationship is key to the growth of any sector, no research has been undertaken in consumer goods manufacturing firms in Kenya. The main objective was to establish the HRM practices - Effectiveness relationship in consumer goods manufacturing firms in Kenya. Drawing from Resource Based theory, it was conceptualized that the independent and dependent variables are HRM practices; and firm effectiveness respectively. A cross sectional survey design and population of 65 firms were used. It was a census study with response at 76.9%. The results revealed that there is significant association between HRM practices and firm effectiveness with most significant association being on material incentives and firm effectiveness with R2 of 66.9% (β=.303, p<0.01), indicating that material incentives account for 30.3% of variance in effectiveness. R2 increase was 46.2% (β=.509, p<0.01) implying a unit rise in HR practices enhances firm effectiveness increase with HRM practices by .509. Conclusions are that among the firms, HRM practices predict firm effectiveness. It is recommended that the firms’ efforts should be directed on HRM practices in order to enhance firm effectiveness. Contrary to prior research, this study has revealed that HRM practices, affect firm effectiveness. Other performance indicators and designs may be considered in future. en_US
dc.language.iso en en_US
dc.subject Human resource management en_US
dc.title Human Resource Management Practices and Firm Effectiveness of Consumer Goods Manufacturing Firms In Kenya en_US
dc.type Article en_US

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