Effect of HRM Practices on the Performance of Companies Listed on NSE



Abstract Views
555

Downloads
362

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Sep 22, 2021
Published Oct 14, 2021
10.24018/ejbmr.2021.6.5.1120

Abstract viewed = 555 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

The human resource function can make a crucial contribution in developing the key competencies in the institutions and individual employees that lead to high performance. The human resource configurations effectiveness is affected by the weak social capital among most organizations in Kenya, as evidenced by a lack of knowledge sharing and knowledge hoarding. The study's main objective was to see how HRM practices influenced the performance of firms listed on the Nairobi Securities Exchange (NSE). The research was guided by the ability-motivation-opportunity theory. This research utilized a descriptive research design and applied the positivist approach. The population of the study included 65 companies listed on the Nairobi Stock Exchange (NSE), and it employed both primary and secondary data, with secondary data consisting of the financial indicator Return on Assets (ROA). Questionnaires were employed to gather primary data, and descriptive and inferential statistics were utilized to analyze the data. The method utilized was linear regression. According to the findings, human resource practices have a beneficial influence on the performance of companies listed on the NSE. This study recommends that the organizations should put mechanisms in place to ensure that all stakeholders are aware of the organizations culture, structure and human reward practices so as to attract the best applicants.

Keywords: HRM practices and performance of firms listed on the Nairobi Securities Exchange (NSE)

Downloads

Download data is not yet available.

References

  1. I. Tadić & S. Pivac, “Defining human resources “bundles” and Its’ correlation with companies’ financial performances,” International Journal of Economics and Management Engineering, vol. 8(4), pp. 1032-1036, 2014.
     Google Scholar
  2. S. Wasserman, & K. Faust, “Social network analysis: Methods and applications”, 1994.
     Google Scholar
  3. J. E. Mathieu, S. I. Tannenbaum, & E. Salas, “Influences of individual and situational characteristics on measures of training effectiveness,” Academy of management journal, vol. 35, no. 4, pp. 828-847, 1992.
     Google Scholar
  4. M. E. McGill, & J. W. Slocum, “The smarter organization: How to build a business that learns and adapts to marketplace needs,” John Wiley & Sons, 1994.
     Google Scholar
  5. J. S. Margulies & B. H. Kleiner, “New designs of work groups: applications of empowerment,” Empowerment in Organizations, 1995.
     Google Scholar
  6. J. L. Bradach & R. G. Eccles, „Price, authority, and trust: From ideal types to plural forms,” Annual review of sociology, vol, 15, no. 1, pp. 97-118, 1989.
     Google Scholar
  7. D. M. Rousseau, S. B. Sitkin, R. S. Burt, & C. Camerer, “Not so different after all: A cross-discipline view of trust,” Academy of management review, vol. 23, no. 3, pp. 393-404, 1998.
     Google Scholar
  8. J. E. McGrath & L. Argote, “Group processes in organizational contexts,” Blackwell handbook of social psychology: Group processes, 603-627, 2001.
     Google Scholar
  9. J. Nahapiet, & S. Ghoshal, “Social capital, intellectual capital, and the organizational advantage,’ Academy of management review, vol. 23, no. 2, pp. 242-266, 2008.
     Google Scholar
  10. S. C. Kang, S. S. Morris, & S. A. Snell, “Relational archetypes, organizational learning, and value creation: Extending the human resource architecture,” Academy of management review, vol. 32, no. 1, pp. 236-256, 2007.
     Google Scholar
  11. M. Makhija, “Comparing the resource-based and market-based views of the firm: empirical evidence from privatization,” Strategic management journal, vol. 24, no. 5, pp. 433-451, 2003.
     Google Scholar
  12. S. Mayson & R. Barrett, “The science and practice of HRM in small firms,” Human Resource Management Review, vol. 16, no. 4, pp. 447-455, 2006.
     Google Scholar
  13. D. Nickson, “Human resource management for hospitality, tourism and events,” Routledge, 2013.
     Google Scholar
  14. M. Subramony, “A meta-analytic investigation of the relationship between firm bundles and firm performance,” Human Resource Management, vol. 48, no. 5, pp. 745-768, 2009.
     Google Scholar
  15. W. J. Tettey, “Regenerating scholarly capacity through diaspora engagement: the case of a Ghana diaspora knowledge network,” In Diasporas, Development and Governance (pp. 171-186). Springer, Cham, 2016.
     Google Scholar
  16. A. Waleed, “The Relationship Between Human Resource Practices and Employee Retention In Public Organization: An Exploratory Study Conducted In The United Arab Emirates,” Unpublished Thesis, Edith Cowan University, 2011.
     Google Scholar
  17. S. M. Toh, F. P. Morgeson, M. A. Campion, “Human resource configurations: investigating fit with the organizational context,” Journal of Applied Psychology, vol. 93, no. 4, p. 864, 2008.
     Google Scholar
  18. N. Lin, Social capital: A theory of social structure and action, Vol. 19, Cambridge university press, 2002.
     Google Scholar
  19. P. Boxall & J. Purcell, “Strategy and human resource management,” Macmillan International Higher Education, 2008.
     Google Scholar
  20. R. S. Schuler & S. E. Jackson, „A quarter-century review of human resource management in the US: The growth in importance of the international perspective,” Management revue, pp. 11-35, 2005.
     Google Scholar
  21. D. E. Guest, “Human resource management and performance: still searching for some answers,” Human resource management journal, vol. 21, no. 1, pp. 3-13, 2011.
     Google Scholar
  22. M. Alvesson, “Critical leadership studies: The case for critical performativity,” Human Relations, vol. 65, no. 3, pp. 367-390, 2012.
     Google Scholar
  23. P. S. Adler, S. W. Kwon, “Social capital: Prospects for a new concept,” Academy of Management Review, vol. 27, no. 1, pp. 17-40, 2002.
     Google Scholar
  24. M. W. Mwaniki, “Modelling the Impacts of Predicted Environmental Change on the Frequency and Magnitude of Rainfall-Induced Landslides in Central Kenya,” 2016.
     Google Scholar
  25. C. Lee, “How does HRM enhance strategic capabilities? Evidence from the Korean management consulting industry,” The International Journal of Human Resource Management, vol. 2, no. 1, pp. 126-146, 2012.
     Google Scholar
  26. H. Sarwar, B. Khan, K. Nadeem, and J. Aftab, “Human Capital HRM Practices and Organizational Performance In Pakistani Construction Organizations: The Mediating Role of Innovation,” Business research, vol. 4, no. 6, pp. 23-45, 2016.
     Google Scholar
  27. P. K. Choudhury, “Role of private sector in medical education and human resource development for health in India,” Institute for Studies in Industrial Development, 2014.
     Google Scholar
  28. E. V. Sagwa, P. K’Obonyo, M. Ogutu, “Human Resource Management Practices and Performance of Firms Listed on the Nairobi Securities Exchange,” 2015.
     Google Scholar
  29. M. A. Sabine, “Human resource configurations: investigating fit with the organizational context,” Journal of Applied Psychology, vol. 93, no. 4, p. 864, 2010.
     Google Scholar
  30. T. Bailey, “Discretionary effort and the organization of work: Employee participation and work reform since Hawthorne,” Teachers College and Conservation of Human Resources, Columbia University, 1993.
     Google Scholar
  31. E. Appelbaum, T. Bailey, P. Berg, A. L. Kalleberg, “Manufacturing advantage: Why high-performance work systems pay off,” London: ILR Press, 2000.
     Google Scholar
  32. A. C. Claudia, “Hrm – Well-Being At Work Relation. A Case Study,” Annals – Economy Series, vol. 4, pp. 140 145, 2015.
     Google Scholar
  33. E. Knies, P. Leisink, “Linking people management and extra‐role behaviour: results of a longitudinal study,” Human Resource Management Journal, vol. 24, np. 1, pp. 57-76, 2014.
     Google Scholar
  34. A. Munteanu, “What Means High Performance Work Practices for Human Practices – Performance Relationship: Testing a Three Pathways Amo Model,” Academy of Management Annual Meeting Proceedings, (M), pp. 1201-1206, 2014.
     Google Scholar
  35. J.-H. Choi, “The HR-performance link using two differently measured HR practices,” Asia Pacific Journal of Human Resources, vol. 52, no. 3, pp. 370-387, 2014.
     Google Scholar
  36. J. A. Marin-Garcia, “What do we know about the relationship between High Involvement Work Practices and Performance?” WPOM-Working Papers on Operations Management, vol. 4, no. 2, pp. 01-15, 2013.
     Google Scholar
  37. A.-L. Demortier, N. Delobbe, A. El Akremi, “Opening the Black Box of Hr Practices - Performance Relationship: Testing a Three Pathways Amo Model,” Academy of Management Annual Meeting Proceedings, (M), pp. 1201-1206, 2014.
     Google Scholar
  38. M. Ehrnrooth, I. Björkman, “An integrative HRM process theorization: Beyond signalling effects and mutual gains,” Journal of Management Studies, vol. 49, no. 6, pp. 1109-1135, 2012.
     Google Scholar
  39. C. Chadwick, “Theoretical insights on the nature of performance synergies in human resource: Toward greater precision,” Human Resource Management, vol. 20, pp. 85-101, 2010.
     Google Scholar
  40. I. Tadić, S. Pivac, “Defining human resources “bundles” and Its’ correlation with companies’ financial performances,” International Journal of Social, Management, Economics and Business Engineering, vol. 8, no. 4, pp. 999-1003, 2014.
     Google Scholar
  41. N. W. Hatch, J. H. Dyer, “Human capital and learning as a source of sustainable competitive advantage,” Strategic management journal, vol. 25, no. 12, pp. 1155-1178, 2004.
     Google Scholar
  42. C. C. Chan, B. Scott‐Ladd, “Organisational learning: Some considerations for human resource practitioners,” Asia Pacific journal of human resources, vol. 42, no. 3, pp. 336-347, 2004.
     Google Scholar
  43. D. Cooper, P. Schindler, “International Edition: Business Research Methods.; New Delhi; MacGraw-Hill,” Bulletin. District Development Report,(2007). Ministry of Planning, Murang’a District, Kenya government District Development reports issue Bulletin, 2008.
     Google Scholar
  44. M. Easterby-Smith, S. Li, J. Bartunek, “Research methods for organizational learning: The transatlantic gap,” Management Learning, vol. 40, no. 4, pp. 439-447, 2002.
     Google Scholar
  45. C. Robson, “How to do a research project: a guide for undergraduate students,” Wiley Global Education, 2014.
     Google Scholar
  46. O. Mugenda, A. Mugenda, “Research methods: quantitative and qualitative approaches,” 2003.
     Google Scholar
  47. J. A. Orodho, “Techniques of writing research proposals and reports in education and social sciences,” Nairobi: Masola Publishers, 2004.
     Google Scholar
  48. L. D. Sanders, “Discovering research methods in Psychology: A student's guide,” John Wiley & Sons, 2010.
     Google Scholar
  49. Resources in an organization. Annals of the University of Petrosani, Economics, vol. 14, no. 1, pp. 243-250.
     Google Scholar