Human resource management practices and their effect on employee performance in the manufacturing companies in Meru county of Kenya

Abstract

This study focused on the effect that human resource management (HRM) practices have on employee performance within the manufacturing industry in Meru County of Kenya. The study specifically sought to establish the effect of recruitment and selection, training and development, and compensation and rewards, on employee performance. The research design used was descriptive research design. The total population was 158 permanent employees working in six firms drawn from manufacturing firms within Meru Country: Companies that comprised the sample were Mafuko Manufacturing Ltd, Unga Group Ltd, British American Tobacco Kenya Ltd, Meru Timbers Ltd, Githongo Tea Ltd, and Kenya Electricity Generating Company. The target population were human resource managers and non-managerial staff. Companies were selected randomly from the directory of quoted manufacturing companies in Meru County 2012. A sample of 90 was selected using probability sampling method. Primary data was collected using open-ended and closed ended questionnaires and personal interviews. Secondary data was collected from company's records and documentation as well as electronic database. Data collected was analysed using Statistical package for the social sciences computer packages and descriptive statistics such frequencies and percentages. Regression analysis was done to establish the relationship between various HRM practices and employee performance. Data was coded and presented in form of tables, charts and graphs. Based on the findings, investments in recruitment and selection, training and development, and compensation and rewards system were found to have a significant positive causal link on employee performance in terms of commitment, innovativeness, efficiency and effectiveness which lead to company performance. The effectiveness, in which companies managed, motivated and engaged the willing contribution of the people who worked in them is a key determinant on how well those companies performed. The more the effective implementation, the more motivated, satisfied, and productive employees.