A STUDY TO INVESTIGATE EFFECTS OF HUMAN RESOURCE

MANAGEMENT ON EMPLOYEES’ PERFORMANCE IN NAIROBI

COUNTY.

INDEX NUMBER: 4030990030

INSTITUTION: ZETECH COLLEGE
COURSE: CERTIFICATE IN HUMAN RESOURCE MANAGEMENT
SERIES: JULY 2024
SUPERVISORS: George Muga

A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF

BUSINESS IN PARTIAL FULFILLMENT OF
THE AWARD OF THE CERTIFICATE IN HUMAN RESOURCE
MANAGEMENT AT ZETECH COLLEGE

JULY 2024
 DECLARATION

STUDENT’S DECLARATION
I declare that this is my original work and has not been submitted to any other institution for
academic purposes
SIGNATURE: Date:

NAME:
ADMISSION NUMBER:
DEPARTMENT:

SUPERVISOR’S DECLARATION
This project has been submitted for examination purposes with my approval as the University
supervisor.
Signature: Date:

NAME:
LECTURER:
DEPATMENT:
DEDICATION
This project is dedicated to my lecturers, family, and all those who supported me in my
research project. A special dedication to my parents who have been supporting me in my
further studies.
ACKNOWLEDGMENT
Firstly, I thank the almighty God for giving me the strength, skill, and knowledge required for
this research project and this far he has brought me. Secondly, I thank God for Zetech
College for the opportunity to pursue a certificate and to do this project while they assist me
in whichever way. I am grateful to my supervisor for his guidance and support throughout
the course of this project.
 TABLE OF CONTENTS
TABLE OF CONTENT
DECLARATION......................................................................................................................2
ACKNOWLEDGMENT..........................................................................................................4
CHAPTER ONE.......................................................................................................................7
1.1 Background of the Study...................................................................................................7
1.2 Statement of the Problem..................................................................................................7
1.3 Purpose of the Study..........................................................................................................8
1.4 Objectives of the Study......................................................................................................8
1.5 Research questions.............................................................................................................8
1.6 Significance of the Study...................................................................................................8
1.7 Limitations of the Study....................................................................................................9
CHAPTER TWO....................................................................................................................10
2.1 Introduction......................................................................................................................10
2.2 Theoretical Framework...................................................................................................10
2.2.1 Scientific Management Theory............................................................................................10
2.2.2 Administrative Management Theory..................................................................................10
2.2.3 System Theory.......................................................................................................................11
2.3 Empirical Review.............................................................................................................11
2.4 Research Gap....................................................................................................................12
2.5 Conceptual Framework...................................................................................................12
CHAPTER THREE...............................................................................................................13
3.1 Introduction......................................................................................................................13
3.2 Target Population.............................................................................................................13
3.3 Research Design................................................................................................................13
3.4 Sampling technique and Sample size..............................................................................13
3.5 Data Collection Techniques.............................................................................................13
3.6 Data analysis and presentation.......................................................................................13
CHAPTER FOUR..................................................................................................................14
4.1 Introduction......................................................................................................................14
4.2 Response Rate...................................................................................................................14
4.3 Demographic characteristics of respondents.................................................................14
4.3.1 Gender distribution..............................................................................................................14
4.4 Analysis of variables...................................................................................................14
4.4.1 Team building........................................................................................................................14
 4.4.2 Training.................................................................................................................................15
4.4.3 Creativity and Innovation....................................................................................................15
4.4.4 Delegation of Authority........................................................................................................15
4.5 Employee Job Performance............................................................................................16
4.5.1 Absenteeism...........................................................................................................................16
4.5.2 Quality Work........................................................................................................................16
4.5.3 Speed......................................................................................................................................16
 CHAPTER ONE

INTRODUCTION
This chapter briefly describes the background of the study, the statement of the study, the
purpose of the study, the objectives of the study, the research question, the delimitation of the
study, and the limitations of the study.

1.1 Background of the Study.

Human resource management is a process that plays a crucial role in increasing employee
performance. It deals with various operations such as recruitment, assessment of the
employees, promotion of the employees, and maintaining the relationship with the
employees. HR works in areas like conducting jobs, payment of wages, planning, training
employees, and creating a better workplace. The organization uses the effectiveness of HRM
for the utilization of their resources in the company and it is dependent on the HR policies set
in a certain organization.
HRM is to establish a greater employee performance culture in which it take responsibility
for the improvement of the businesses and their skills. The guidelines of HRM are: it
provides details on terms of employment, it gives an overview of an organization’s culture,
and it gives the employee training to gain a new skill. Guest [2007) HRM is a set of policies
designed to enhance an organization’s employee commitment, quality of work, and flexibility
of work.
There is the importance of analyzing the wider stream within the organization. Schuler and
Jackson (1987) which argues that performance
According to Michael Armstrong (1997), HR is defined as a strategic approach to acquiring,
developing, managing, motivating, and gaining the commitment of the organization’s key
resources. According to scholars, HR is a set of people who make up the workforce of an
organization. The father of human resource management is George Elton Mayo, an Australian
psychologist, and sociologist who conducted the Hawthorne studies in the 1920s and 1930s.

1.2 Statement of the Problem.

Several organizations, over the years, have their competitiveness in the traditional sources of
success like technology and the product. Businesses have completely disrupted the traditional
HRM works overall development of the employees by reducing stress and creating a clean
atmosphere in the workplace. If the employee is not well maintained during working hours,
they will perform poorly in the organization. In most organizations, it has been noticed that
the affecting factor is the poor admin of HR towards the employees, inadequate funds, poor
policy on employees, and poor HR planning.
Lack of HR planning in an organization may bring the crisis of huge financial losses and
costs that may affect the employee’s performance which will introduce recruitment and
selection and have a great impact on the employee performance
1.3 Purpose of the Study
The purpose of this study is to thoroughly investigate the effects of Human Resource
Management (HRM) practices on employee performance within Nairobi County. This
research aims to understand how various HRM strategies, such as recruitment, training,
performance appraisals, and compensation management, impact the productivity, job
satisfaction, and overall performance of employees. By conducting detailed surveys, and
interviews, and analyzing performance metrics, the study seeks to provide a comprehensive
analysis of how effective HRM practices can enhance employee performance and contribute
to organizational success in Nairobi County. The findings of this research will offer valuable
insights for organizations looking to improve their HRM practices and achieve better
performance outcomes.

1.4 Objectives of the Study

The main objective of the study is to examine the effect of HRM on employee performance.
It seeks:
1) To examine the role of HRM in an organization
2) Effect of HRM in an organization.
3) To determine if HRM promotes employee performance.
4) Functions of HRM in an organization

1.5 Research questions.

The research is guided by the following questions:
a) What is the role of HRM in an organization?
b) Effect of appraisal policy on employee’s performance?
c) What ways does HRM promote employee performance?

1.6 Significance of the Study

1. Contribution to HRM Understanding: This study aims to deepen our understanding of
the relationship between Human Resource Management (HRM) practices and
employees' performance within the context of Nairobi County. By exploring this
relationship, the study contributes to the broader field of HRM, offering insights into
how HRM strategies can impact employee performance in urban settings.

2. Enhancing Organizational Effectiveness: By examining the effects of HRM on

employees' performance, this study has the potential to provide valuable insights for
organizations operating within Nairobi County. Understanding which HRM practices
positively influence employee performance can help organizations enhance their
HRM strategies to improve overall organizational effectiveness and competitiveness.

3. Informing HRM Practices: The findings of this study can inform HRM practitioners
and policymakers in Nairobi County about the most effective HRM practices for
optimizing employee performance. By identifying specific HRM strategies that
correlate with improved performance, organizations can tailor their HRM approaches
 to better meet the needs and expectations of their employees, ultimately leading to
higher levels of productivity and job satisfaction.
4. Addressing Talent Management Challenges: Nairobi County, as a hub of economic
activity and urban development, faces unique talent management challenges. This
study can shed light on how HRM practices can address these challenges by
attracting, retaining, and developing talent effectively. Such insights are crucial for
organizations seeking to build a skilled and motivated workforce in Nairobi County's
competitive employment market.

1.7 Limitations of the Study

i. Sample Size and Representation: Due to constraints such as time and resources, the
study may have a limited sample size or may not be able to capture the diversity of
organizations and industries within Nairobi County. This could potentially impact the
generalizability of the findings to the broader population of employees in the county.

ii. Data Collection Methods: The study's reliance on self-reported data or survey
responses may introduce response bias or social desirability bias, affecting the
accuracy and reliability of the results. Additionally, the use of cross-sectional data
may limit the ability to establish causality between HRM practices and employees'
performance.

iii. Measurement Validity: The study's measures of HRM practices and employee
performance may lack comprehensive validity or reliability, leading to potential
measurement error or misrepresentation of the constructs under investigation. This
could undermine the robustness of the study's conclusions and interpretations.

iv. External Factors and Confounding Variables: There may be external factors or
confounding variables, such as economic conditions, industry trends, or individual
differences among employees, that are not adequately controlled for in the study.
Failure to account for these factors could obscure the true relationship between HRM
practices and employees' performance.

v. Cross-Cultural Considerations: Nairobi County is culturally diverse, with employees

from various backgrounds and ethnicities. The study may not fully account for
cultural differences in perceptions of HRM practices and performance outcomes,
potentially limiting the generalizability of the findings across different cultural
contexts.

vi. Temporal Dynamics: HRM practices and employees' performance may vary over time
due to changes in organizational priorities, leadership turnover, or external market
conditions. The study's static snapshot of HRM practices and performance outcomes
may not capture these temporal dynamics, limiting the longitudinal validity of the
findings
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction
This chapter briefly describes a review of existing literature on the effect of HRM on
employee performance. The review aims to give an accurate understanding of the relationship
between the employee's performance within Nairobi county and the HRM practices. It is
featured in several ways: conceptual work, theoretical framework, research work, and
empirical review.

2.2 Theoretical Framework

The theoretical framework explores many sites into the effects of HRM on employee
performance. The theories include: scientific management theory, administrative management
theory, and systems theory.

2.2.1 Scientific Management Theory

This is developed in the 1880s by Fredrick Taylor to focus on improving Labor productivity
through scientific methods [ Bell & Martin, 2012]. This theory aims to enhance the fair
distribution of goods, and waste reduction and to enhance adequate production methods for
good mass production.
The theory encourages the improvement of organizational performance through scientific
engineering and mathematical analysis to enhance task efficiency and production. [Bell &
Martin, 2012]
The key principle of SMT includes:
 Selection and training
This is the most essential principle to the employees on improving performance. The
managers are responsible for selecting and training the workers to add skills and
knowledge to the organization.

 Scientific Analysis
The managers should analyze, collect, and use the data to get information and develop
the rules that enhance efficiency in the organization.

 Adequate techniques
The managers are responsible for ensuring that workers apply the techniques
developed to maintain accurate productivity in an organization.

 Equity in work distribution - This ensures that there is an adequate fair distribution of
work between managers and workers according to time and leave

2.2.2 Administrative Management Theory

It is advanced by Henry Fayol and James D. Mooney and focuses on the design of
organizational structures. It advocates for clarity in the administrative structures, division of
labor, and the delegation of employees’ designations. [Waldo,2006]
This principle encourages performance by ensuring a clear administration, enabling
supervision and encouraging specialization. [ Waldo, 2006]
Principles of the theory
 Span of control
This limits the number of subordinates a manager can easily supervise

 Unity of command
This whereby it promotes specialization by ensuring that the employees report to one
supervisor

 Departmentalization
This is where groups of similar activities are into independent units for efficient
administrative

 Exceptional principles
These routine matters are given by the subordinates while exceptional issues are
raised to the senior management.

 Scalar principle
This advocates for a control of administrative function with a clear history of the
organization

2.2.3 System Theory

According to Midgely [2006], effective organizational performance requires an efficient
system that facilitates collaboration among employees.
It focuses on the components within the organization of the work to achieve a common goal.
This theory supports performance by promoting an inclusive system where employees work
together effectively [Midgley,2006]
The key aspects of systems theory
 Interconnected components
This emphasizes the need for all parts of the organization to work together.

2.3 Empirical Review

It examines the studies on the impact of HRM practices on employee performance.
1. Training and development
Jehanzeb and Bashir [2013] demonstrated that training and development enhance
employee performance by improving skills

2. Recruitment and selection

Ekwoaba, Ikejie, and Ufoma [2015) found that effective recruitment and selection
practices positively influence employee performance which leads to higher
productivity and lower turnover rates.
 3. Employee Relations
Guest (2002) found that positive employee relations, characterized by good
communication and conflict resolution, are linked to improving employee
performance

4. Compensation and benefits

Milkovich, Newman, and Gerhart (2011) showed that competitive compensation and
benefits are associated with higher employee performance due to increased job
satisfaction and organizational commitment.

5. Employee relation
Guest (2002) found that positive employee relations, characterized by good
communication and conflict resolution encourage performance in an organization.

2.4 Research Gap

In numerous studies of HRM practices and employee performance, there is a lack of training
and research mainly in Nairobi County. This study aims to fill the gap by examining how
HRM practices affect employee performance in Nairobi County by understanding the HRM’s
impacts in different styles

2.5 Conceptual Framework

It illustrates the relationships between the variables in a study. Independent and dependent
variables. In the research, the framework examines the impact of HRM practices on
employee performance.
a) Dependent Variable
i. Employee Performance
b) Independent Variable
i. Training and Development
ii. Recruitment and Selection
iii. Compensation and Benefits
iv. Employee Relation
v. Performance Appraisal
 CHAPTER THREE

METHODOLOGY

3.1 Introduction
This chapter describes the methodological approach that guides the study. The methodology
acts as the blueprint of the research (Cooper & Schindler, 2017), data collection, analysis, and
estimation. The methodological approach illustrates how data was gathered, processed, and
analyzed.

3.2 Target Population

The target population consisted of employees in organizations across Nairobi County a total
of 150 individuals. The HR departments of different organizations obtained the number.

3.3 Research Design

The study aims to investigate the effects of HRM on employee performance in Nairobi
County, this research design is appropriate to achieve the study objectives effectively.

3.4 Sampling technique and Sample size

The study utilized stratified random sampling to ensure all populations were adequately
represented. This technique was favorable as it allowed every employee within the
organization a chance of being selected thus eliminating bias (Kothari, 2004).
According to Mugenda (2003), a sample size between 10-30% is sufficient and
representative of the entire population.

3.5 Data Collection Techniques

The primary data was collected using the structured questionnaires. They are divided into
three sections: a) Demographic data
B) HRM practices
C) Employee performance

3.6 Data analysis and presentation

After the data collection, the researcher reviewed all questionnaires for accuracy and
consistency.
Descriptive statistics were primarily used for data analysis including tables, percentage, and
measures of central tendency such as mean, frequency, and standard deviation. This tool
ensures effective interpretation of collection data
 CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION OF FINDINGS

4.1 Introduction
This chapter presents the analysis, findings, and interpretation of the data collected by the
study objective which was to investigate the effect of HRM practices on employee
performance in Nairobi County.

4.2 Response Rate

The study aims at a total population of 150 respondents. Among the 150, 120 completed
and returned the questionnaires, resulting in a response rate of 80%. According to Mugenda
and Mugenda (2003), a respondent rate above 70% is verified as excellent making this
response rate efficient for data analysis.
Response rate analysis Frequency Percentage Valid Cumulative
percentage Percentage
Respondent 120 80% 80 80
Non-respondent 30 20% 20 20
Total 150 100% 100 100

4.3 Demographic characteristics of respondents

4.3.1 Gender distribution
The gender distribution of respondents is shown in the figure 4.1. The majority of the
respondents were male (60%) while the females were 40%.
Gender Respondents Non-respondents
Male 60 15
Female 60 15

4.4 Analysis of variables

4.4.1 Team building

Team building was assessed and the result is shown in table 4.1. activities were found
trusted and cohesiveness and reflected by a mean of 4.1 and a standard deviation of 1.01.
Fewer felt that the team building boos morale indicating a mean of 307 and a standard
deviation of 1.41. the overall team building was acknowledged as a factor with a mean of 3.9
and a standard deviation of 1.17
Statement Number Mean Standard deviation
Team building activities increased trust and 120 4.1 1.01
cohesiveness
Teamwork and bonding efforts boosted morale 120 3.7 1.41
 Aggregate 120 3.9 1.71
Source researcher (2023)

4.4.2 Training
The study examined the issue of training on employee performance. The findings are shown
in Table 4.2 which indicates that most employees agreed that training workshops have
improved their performance with a mean of 3.8 and a standard deviation of 1.29. Those who
got an educational opportunity like scholarships contributed well though to a low rate with a
mean of 3.4 and a standard deviation of 1.39. The overall training was seen as a factor in
promoting job performance with a mean of 3.6 and a standard deviation of 1.30.
Statement Number mean Standard
Workshop on job performance improved 120 3.8 1.29
performance
Educational opportunities improved performance 120 3.4 1.39
Aggregate 120 3.6 1.30
Source: Research (2023)

4.4.3 Creativity and Innovation

The study examines on the influence of creativity and innovation on job performance as
shown in Table 4.3. The management enhances the creation of new ideas and decision-
making process which scored a mean of 3.4 and a standard deviation of 1.40. However,
fewer respondents agreed that employees are trying new methods which came to a mean of
3.0 and a standard deviation of 1.65. Overall/ creativity and innovation were considered as a
factor with a mean of 3.2 and a standard deviation of 1.50.
Statement Number Mean Standard deviation
Management encourages new ideas 120 3.4 1.40
and decision-making
Employees are trying new methods 120 3.0 1.65
Empowered employees are a source of 120 3.2 1.53
new ideas and innovation
There is a culture of creativity and 120 3.3 1.43
innovation
Aggregate 120 3.2 1.50

Source Research (2023)

4.4.4 Delegation of Authority

The study examines on the effect of delegation of authority on job performance with a mean
of 4.3 and a standard deviation of 0.94. Delegation also exposes employees to new tasks,
with a mean of 3.8 and a standard deviation of 1.11. Overall, delegation of authority is
important for employee performance with a mean of 3.9 and a standard deviation of 1.16.
 Statement Number Mean Standard
deviation
Supervisors delegated authority to employees 120 4.3 0.94
Delegation exposes employees to a new task 120 3.8 1.11
Extensive delegation, individual, responsibility 120 4.0 1.10
and decision-making
Delegation reduces top management workload 120 3.8 1.39

Source research (2023)

4.5 Employee Job Performance

The study examined various aspects of employee job performance including absenteeism,
quality of work, service delivery, and speed of the task.

4.5.1 Absenteeism
Most respondents agreed that employees consistently reported to work duties with a mean
of 4.0 and a standard deviation of 1.61. Reports have been reported that some noted
instances of absenteeism with a mean of 3.2 and a standard deviation of 1.48. the overall
indicated that absenteeism is a factor that affects performance with a mean of 3.8 and a
standard deviation of 1.5.
Statement Number mean Standard deviation
Most employees report working 120 4.0 1.61
regularly
Some of the employees are frequently 120 3.2 1.48
absent

4.5.2 Quality Work

Most respondents agreed that the quality of work was high with a mean of 4.0 and a
standard deviation of 1.61. Some indicated that some of the work needed to be done to be
redone with a mean score of 3.6 and a standard deviation of 1.24. Overall, the quality of
work is an important performance factor with a mean of 3.7 and a standard deviation of
1.19.
Statement Number Mean Standard deviation
Most employee's work is accurate and 120 4.0 1.61
maintained
Some employee's work needs to be 120 3.6 1.24
redone

4.5.3 Speed
Most respondents agreed that employees finished their tasks before the deadline with a mean
of 4.3 and a standard deviation of 0.94. Some indicated that the employees did not meet
deadlines with a mean score of 3.7 and a standard deviation of 1.28. Overall, speed is an
important determinant of performance that shows the mean was 3.9, and the standard
deviation of 1.16
Gender Respondents Non- Mean Speed Standard
respondents Deviation
Male 60 15 4.0 1.03
Female 60 15 4.0 1.03
 CHAPTER FIVE
SUMMARY CONCLUSIONS AND RECOMMENDATION
5.1 Introduction
In this chapter the research presents summary, conclusion and the recommendation. The
summary provides the main component which are the methodology, the objectives and the
findings. The findings are obtained from the research question and the recommendations of
the improvement based on the finding of study.
5.2 Summary
The purpose of the study is to investigate the effects of Human Resource management on
employee’s performance. The study was guided by the following research question: What
ways does HRM promotes employee’s performance? What are the roles of the HRM in an
organisation?
Research was aimed at collecting information from the respondent on how the employees
are assessed during training, the quality work, misconduct in the organisation and in what
does the HRM promote the employee’s performance. Further, the correlational approach
was adopted as the study was seeking to describe the relationship between the independent
variables which is the employee’s performance in an organisation and the independent
variables: training and development, recruitment and selection, performance appraisal and
the employee’s relation. The target population is Nairobi County’s employee’s
The findings in determine the factors that demonstrates the effect of HRM on employees
‘performance: training, quality work, creativity and innovating, gender distribution and team
building
The first research was to how do we understand the relationship between the employees
within Nairobi County and the HRM practices and how does it perform employees’
performance. The researcher found out there is lack of training on the employees in Nairobi
County. Training and development are one of the most efficient factors that each employee
has to undergo in an organisation. It helps the employee to add more skill and knowledge
and to learn new things. It was noted that the organizations had a good span of control
where by the supervisors are made easier to supervise the employees and the employee are
able to share thing with there supervisors.
Second research question was what is the role of HRM in an organisation. HR has many
different and interrelated functions. According to Gary Dessler, HRM is the process of
acquiring, training, appraising and compensating employees and attending to their labour
relations, health, safety and fairness concerns. the HR department have a wider role in an
organisation:
1.Recruitment- This is the main role of HR to ensure the organization has the right people in
the right time and at the right job. It means that the HR staff ought to have a firm
understanding of various role in the organisation and the qualification that the employee
need to fill to get the person who is best suited for the job.
2.Health and safety
-The HR team is responsible for ensuring that employees safety training is safe and the
workplace safety records are maintained. In ensuring that the workplace is safety, the
organisation must necessarily take action.
3. Training and development
- A key aspect of the HR department is to facilitate training to acquire an adequate training
being provided and to encourage the employee’s development to play a significant role staff
retention in the organization.
4. Employee relations
- The HR department helps as a liaison between the organisation and employees to make
sure that the employees are kept in place of relevant information, and they are represented
in the HR team in decision making.
Third research question was the effect of appraisal in employee’s performance. It identifies
performance problems to improve employee productivity and motivation. Appraisal helps
bringing about progressive feedback to improve employee productivity. It has been not by
researcher that the performance appraisal has many advantages but sometimes it promotes
low productivity in the organization and can act as a demotivator and affects the employee’s
morale. The benefits of performance appraisal:
 Creates career growth
 Increases the employee performance
 It helps in determining training
 It evaluates the goal for an organization
 It strengthens team building.
 It improves on performance

5.3 Conclusion
HR planning is a vital process which enables organization to align their workforce with the
strategy objectives, adapt to change, adequate resource utilization and employee retention.
It faces numerous challenges that required strategic solutions are needed in organisation.
The employee management system allows for a better manage resources. The study found a
significant positive correlation between employee performance and the human resource
development practices.

5.4 Recommendation
5.5.1 Recommendation for improvements.
Employee performance can be increased by development policies, training and
development, performance appraisal, rewards policy and recruitment and selection. This
study has enhanced to the existing knowledge by ensuring the HR policies have an affect on
the performance of employees. HRM can create a culture of trust and communication to the
employees to make performance better in the organisation.
REFRENCES
 APPENDIX
INTRODUCTION LETTER
STELLAMARRIS MUINDE
P.O. BOXOO-OOO1
NAIROBI.
Dear sir /madam,
I am a student in Zetech college pursuing Certificate in Human Resource Management. I am
conducting research on the effect of human resource management on employee’s
performance.
Please note that the information stated will be treated with confidentiality and there will e
no instance that the information will be used for any other purposes other than for this
project.
Yours faithfully,
Stellamarris muinde
 APPENDIX 2: QUESTIONNAIRES
Answer appropriately using () or ()
1. What is your gender?
( ) Male ( ) Female
2. What is your age range?
( )18-25 ( ) 26 - 34
( )44 - 52 ( )53 and above

3. What is your highest level of education?

( ) Highschool ( ) college ( ) university
4. what is your marital status?
( ) Single
( )Married
5. How long have you worked for your organization?
( ) Under one year ( ) 1-5 years
( ) 5 – 10 years ( )10 years and above
6. What is your employment level?
( )General employee ( )senior manager ( )mid- level manager