dc.description.abstract |
The performance of some government corporations has been wanting. For instance, East
African Portland Cement Company posted Ksh.3.4 billion loss in 2019. It was also reported
Wilson Airport had potholes in some of the runways signifying poor performance by the
Kenya Airports Authority. A study by Transparency International indicated there is a high
level of service inconsistencies such as delayed service delivery and inability to innovate
services among most of the state corporations. Further previous studies revealed public
organizations and more specifically State-owned Corporations in the Ministry of Industry,
Trade and Cooperatives in Kenya are experiencing deteriorating performance characterized
by inefficiencies and ineffectiveness in service delivery. This formed the basis to conduct
the study about the influence of strategic human resource management practices on
performance of state-owned corporations in the ministry of industry, trade and cooperatives
in Kenya. The specific objectives of the study were to establish the effect of strategic human
resource planning, strategic staffing and retention, strategic training and development on
performance of State-owned Corporations in the Ministry of Industry, Trade and
Cooperatives in Kenya and to determine the moderating effect of technology on the
relationship between strategic human resource management and performance of State-
owned Corporations in the Ministry of Industry, Trade and Cooperatives in Kenya. The
study was anchored on empowerment theory, Herzberg’s two factor theory and Human
capital theory. Positivist research philosophy and cross-sectional research design were
adopted for this study. A structured questionnaire was used to collect data from a sample
of 185 respondents who were selected from a target population of 344 employees from 13
State owned Corporations in the Ministry of Industry, Trade and Cooperatives by
employing stratified sampling. The unit of analysis were State-owned Corporations while
unit of observation were middle level managers and lower-level employees of State-owned
Corporations in the Ministry of Industry, Trade and Cooperatives in Kenya. Quantitative
data was analyzed using descriptive statistics, correlation and regression methods which
were effected using the Statistical Package for Social Sciences version 24. Mean scores,
standard deviation, minimum, maximum, kurtosis and skewness were used for descriptive
analysis of the study variables by their indicators. Inferential analysis was based on fitting
ordinary least squares regression models which formed the basis of hypotheses testing used
to draw conclusions on the study objectives. The inferential analysis results revealed that
the performance of State-owned Corporations is significantly influenced by Strategic
Human Resource (β = 0.376, t − statistic = 5.603, p − value = 0.000), by Strategic
Staffing and Retention (β = 0.464, t − statistic = 7.918, p − value = 0.000) and by
Strategic training and development (β = 0.205, t − statistic = 2.712, p − value =
0.008). The study also found that technology has a significant moderating effect on the
relationship between the Strategic Human Resource Management (SHRM) Practices and
Performance of State-owned Corporations (R-square change = 0.090, F−change = 16.535,
P-value = 0.000). The study therefore concluded that SHRM Practices influences
performance of the state-owned Corporations and that technology significantly moderates
the relationship between SHRM Practices and Performance. The study recommends the
findings to be applied in State-owned Corporations during policy formulation and decision
making. |
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