ISSN 2348-1218 (print) International Journal of Interdisciplinary Research and Innovations ISSN 2348-1226 (online) Vol. 9, Issue 2, pp: (41-50), Month: April - June 2021, Available at: www.researchpublish.com
Influence of Human Resource Business Processes on the Performance of Kenya’s Manufacturing Sector Esther Waiganjo Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
Abstract: Effective human resource business processes are instrumental in helping achieve organizational objectives and enhance productivity. Firm performance is positively impacted by the presence of human resource practices which tend to create a significant contribution on organizational competencies, and this in turn becomes a great boost further enhancing innovativeness. To compete effectively, organizations must constantly improve their performance by designing human resource management processes to diagnose a firm’s strategic human resource needs. The study sought to determine the influence of human resource business processes (selective resourcing, teams and decentralization, extensive training, sharing of information, incentives) on the performance of Kenya’s manufacturing sector. The study adopted a cross sectional survey research design and the target population was the manufacturing sector in Kenya. Data was collected using questionnaires and interviews and analyzed using SPSS and Microsoft Excel. Inferential data analysis was carried out by the use of factor analysis, correlation analysis and multiple regression analysis. The findings indicated that performance was positively influenced by selective resourcing, extensive training, sharing information and incentives. Correlation analysis results revealed that the use of teams and decentralization had a strong and positive association with performance. Based on the results of this study, it could, therefore, be concluded that human resource business processes significantly influenced performance of the manufacturing sector in Kenya. The study recommends that organizations should focus on the use of human resource business processes as its involvement is necessary to ensure that human resources support its mission. Keywords: Human resource business processes, Resourcing, Teams and decentralization, Training, Sharing information, Incentives.
I. INTRODUCTION Human resource management (HRM) is a planned approach to managing people effectively for performance. It aims to establish a more open, flexible and caring management style so that staff will be motivated, developed and managed in a way that they can give of their best to support departments’ missions( Armstrong,2009). Effective human resource business processes are instrumental in helping achieve organizational objectives and enhance productivity. Human resource management entails the processes, practices, systems and procedures implemented to attract, acquire, develop and manage human resources (HR) to achieve the goals of an organization. Effective human resource management is based on strong, simple and effective modern human resources processes which are measured and constantly monitored as an organization identifies the gaps in the processes and brings the real improvements for the benefit of the organization. Firm performance is positively impacted by the presence of HRM practices which tend to create a significant contribution on organizational competencies, and this in turn becomes a great boost for further enhancing innovativeness (Noe et al.2003 ; Youndt et al. 2004). According to Horngren (2000) and Anantharaman (2003), organizations link the maximization of performance with HRM practices. As a result of intensive competition, shorter product life cycles, volatile product and market environments, firms constantly search for newer sources of competitive advantage, one of the most important being HRM, that has the potential to improve and determine an organization’s fate ( Kelliher & Perrett,2001).
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