Effect of Human Resource Management Strategies on Organization Performance: A case study ff Kisii Bottlers Limited

Abstract

The understanding of HRM strategies has changed considerably since strategy first became the subject of great attention. Strategy as argued by some writers can only be identified in retrospect and is best seen in the ultimate behaviour of the organization. Employees are seen as key in the implementation of the declared organizational strategy and HRM strategies designed to fit with this. Schemes are therefore actively developed to involve all employees in strategic planning, with the aim of making every employee productively contribute to the performance of the organization. A key feature of managing performance is developing people so that they can perform but most often this feature is not delivered. The performance initiatives in bundle therefore, have to stimulate both individual and team performance, working together within the envelope of organizational objectives. The specific objectives of the study were to establish the effect of recruitment, training, monetary reward, and performance appraisal strategies on organization performance. A survey was on the employees currently in Kisii Bottlers Limited (KBL), so as to get the necessary data and information. KBL comprises a population of 180 permanent employees, 57 contracted and an average of 20 daily-rated casuals every month. The study targeted getting responses from all the employees using stratified random sampling technique. However, permanent employees were stratified as the study population. This meant that the study sought to obtain information from not more than 180 respondents of which only 135 randomly sampled as study unit. Casuals were preferred left out from the study, in the sense that they unreliably and most often change their work stations. Structured questionnaires to collect primary data from the participants designed to accommodate all the critical aspects covered in the identified variables. After coding the findings, it was run through the statistical program for social science (SPSS). Descriptive and inferential types of statistics analyzed the data, the mean and standard deviation being used as tools in descriptive statistics. Weighted mean applied, identified and evaluated the degree of influence and importance of each factor. Multiple regression analysis in action, deduced a model which explained the effect of HRM strategies on organization performance. Frequency distributions were prepared from the questionnaire responses and results of the analysis summarized using tables. The findings indicated that; appraisal strategy was not a product of organization performance; most of the employees had no complaints with the activities employed under the company‟s reward strategy; training strategy has an effect on organization performance and among the four identified strategies, recruitment strategy has a significant effect on organization performance. Conclusion then brought out that the implementation of performance appraisal strategy in the organization has not yet been felt by employees.This may be responsible for the contradictory results that seemed to suggest that performance appraisal has no significant effect on organization performance. Of help, the management of the organization made to realize how Human Resource Management strategies affect the organization performance, employees knowing the effect reactions to the organization human resource management strategies have on organization performance.