Human Resource Management Practices and Employees’ Performance of Selected Local Pharmaceutical Manufacturing Companies in Nairobi City County, Kenya
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Date
2022
Authors
Munguti, Janet Mwikali
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Increased business competition and the desire to have strong competitive advantage has pushed organisations to give more emphasis to employees, and their performance at the workplace because employees are the key driving force of the organisation’s performance and success.The local pharmaceutical manufacturing companies have been faced with several employees’ performance challenges such as shortage of skilled manpower, customer complaints due to poor quality of drugs, insider theft, lack of innovation and declining sales. These employee performance issues have forced the pharmaceutical companies to put in place several human resource practices so as to augment employee performance, however, despite the implementation of these practices, there still exists employee performance related issues, thus this study.The study’s specific objectives entailed determining the effect of recruitment and selection, training, compensation and employee participation on employee performance of selected local pharmaceutical companies in Nairobi City County, Kenya. This study was anchored on the Equity Theory of Motivation, Contingency Theory and Universalistic Theory, and employed an explanatory research design with a target population consisting of 8549 employees of these companies, with a purposeful sample selection of the 70 HR personnel in these companies as they were best suited to provide information on the human resource practices in these companies. The data collection process was completed through the employment of structured questionnaires, which contained six sections. Face validity was conducted by the researcher through cross checking and reviewing the questionnaire to establish the efficiency of the questionnaire in fulfilling its intended measuring objective; additionally, a cross-check was done by five experts in the field study to establish validity. A pre-test validity test was also conducted on three HR Managers to establish validity and amendments done. Reliability of the study was established by conducting a pilot test in 5 similar manufacturing companies as they had similar volume of operations, using the questionnaire to ensure the questionnaire yielded or produced consistent results. Additionally, a Cronbach Alpha test was undertaken to test reliability, which was established to be 0.8612, which meets the minimum threshold value of 0.7. The quantitative data analysis was achieved using the inferential statistical analysis and descriptive statistical analysis like mean, percentages and standard deviation. The inferential analysis was completed through multiple regression analysis. Data analysed was presented through appropriate tables and graphs. The study concluded that generally, human resource practices had a positive, but insignificant effect on employee performance at the selected locally owned pharmaceutical companies in Nairobi City County, Kenya. On the specific objectives, the research findings highlighted that recruitment and selection, and compensation had a positive effect on employee performance, whereas training and employee participation have a negative upshot on employee performance in these organisations. The study recommends that for these human resource practices to be effective in augmenting employee performance, they should be implemented in a fair way, and aligned with the desired organisation performance. Moreover, organisations should be cautious of the unintended negative effects of these human resource practices on employee performance.
Description
A Research Project Submitted to School of Business in Partial Fulfilment of the Requirement for the Award of Degree in Master of Business Administration (Human Resource Management) of Kenyatta University March 2022
Keywords
Local Pharmaceutical Manufacturing Companies, Practices and Performance of Pharmaceutical Companies, Human Resource Management Practices of Pharmaceutical Manufacturing Companies, Employees’ Performance of Pharmaceutical Manufacturing Companies