A STUDY TO INVESTIGATE EFFECTS OF HUMAN RESOUCRE MANAGEMENT ON EMPLOYEES’ P

ERFORMANCE IN NAIROBI COUNTY.

INDEX NUMBER: 4030990051

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

A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FUFILMENT OF

THE AWARD OF THE CERTIFICATE IN HUMAN RESORCE 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 superviso
r.
Signature: Date:

NAME:
LECTURER:
DEPATMENT:
 DEDICATION
This project is dedicated to my lecturers, family and all those who supported me in my resea
rch project. A special dedication to my parents who have been supporting me in my further s
tudies.
 ACKNOWLEDGEMENTS
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 the
y assist me in whichever way. Gratitude to my supervisor for his guidance and support throu
gh out the course of this project.
TABLE OF CONTENT
DECLARATION........................................................................................................................................2
DEDICATION...........................................................................................................................................3
ACKNOWLEDGEMENTS..........................................................................................................................4
CHAPTER ONE........................................................................................................................................7
Introduction...........................................................................................................................................7
1.1 Background of the study..................................................................................................................7
1.2 Statement of the problem...............................................................................................................9
1.3 Purpose of the study........................................................................................................................9
1.4 Objectives of the study....................................................................................................................9
1.5 Research questions..........................................................................................................................9
CHAPTER ONE

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

1.1 Background of the study.

Human resource management is the process that play a crucial role in increasing employee p
erformance. It deals with various operational such as recruitment, assessment of the employ
ees, promotion of the employees and maintain the relationship with the employees. HR wor
ks in areas like conducting jobs, payment of wages, planning, training the employees and cre
ating a better workplace. The organization uses effectiveness of HRM for utilization of their r
esources in the company and it is a dependant on the HR policies set in a certain organisatio
n.
HRM is to establish a greater employee perform culture in which it takes responsibility for th
e improvement of the businesses and their own skills. The guidelines of HRM are: it provides
details on terms of employment, it gives an overview of an organisation’s culture, it gives the
employee being trained to gain a new skill. Guest [2007) HRM is as a set of policies designed
to enhance organization’s employee commitment, quality of work and the flexibity of work.
There is the importance of analysing the wider stream with the organization. Schuler and Jac
kson (1987) which argues that performance
1.2 Statement of the problem.
In several organisation, over the years place it competitiveness on the traditional sources of
success like technology and the product. In business, have completely disrupted the traditio
nal
HRM works overall development of the employees by reducing stress and creating a clean at
mosphere in the work place. If the employee is not well maintained during working hour, the
y will perform poorly in the organisation. Most of the organisation, it has been noticed that t
he affecting factor is poor admin oh HR towards the employees, inadequate funds, poor poli
cy on employees and poor HR planning.
Lack of HR planning in an organization may bring crisis of huge finances losses and cost that
may affect the employees performance which will introduce recruitment and selection and a
great impact on the employee performance

1.3 Purpose of the study

The purpose of the study is to investigate the effects on human Resource Management on e
mployee’s performance.

1.4 Objectives of the study

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

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 promotes employee performance?
### CHAPTER TWO

#### 2.1 Introduction

This chapter presents a review of existing literature on the effects of human resource manag
ement (HRM) on employees' performance. It is structured into several sections: the theoreti
cal framework, empirical review, conceptual framework, and research gap. This review aims
to provide a comprehensive understanding of the relationship between HRM practices and e
mployee performance within the context of Nairobi County.

#### 2.2 Theoretical Framework

The theoretical framework explores various theories that provide insights into the effects of
HRM on employee performance. These theories include Administrative Management Theory,
Scientific Management Theory, and Systems Theory.

##### 2.2.1 Administrative Management Theory

Administrative Management Theory, advanced by Henry Fayol and James D. Mooney, focuse
s on the optimal design of organizational structures. It advocates for clarity and formality in a
dministrative structures, emphasizing division of labor and delegation of authority based on
employee designations (Waldo, 2006).

Key principles of this theory include:

- **Scalar Principle:** Advocates for a clear hierarchy to control administrative functions.
- **Exceptional Principle:** Routine matters are handled by subordinates, while exceptional
issues are escalated to senior management.
- **Span of Control:** Limits the number of subordinates a manager can effectively supervis
e.
- **Departmentalization:** Groups similar activities into independent units for administrativ
e efficiency.
- **Unity of Command:** Promotes specialization by ensuring each employee reports to onl
y one supervisor.
These principles support organizational performance by ensuring clarity in administrative lin
es, enabling continuous supervision, and encouraging specialization, thereby improving prod
uctivity (Waldo, 2006).

##### 2.2.2 Scientific Management Theory

Developed in the 1880s by Frederick Taylor, Scientific Management Theory focuses on impro
ving labor productivity through scientific methods (Bell & Martin, 2012). The theory aims to
reduce waste, ensure fair distribution of goods, and enhance production methods for efficie
nt mass production.

Key principles of Taylorism include:

- **Scientific Analysis:** Managers should collect, analyze, and use data to develop rules an
d formulas that enhance efficiency.
- **Selection and Training:** Managers are responsible for selecting and training workers to
improve performance.
- **Implementation of Techniques:** Managers ensure that workers apply the techniques d
eveloped to enhance productivity.
- **Equity in Work Distribution:** Ensures fair distribution of work between managers and
workers for timely task completion.

This theory supports the improvement of organizational performance through scientific engi
neering and mathematical analysis to enhance task efficiency and production (Bell & Martin,
2012).

##### 2.2.3 Systems Theory

Systems Theory focuses on the interrelated components within an organization that work to
gether to achieve a common goal. According to Midgley (2006), effective organizational perf
ormance requires efficient systems that facilitate collaboration among employees.

Key aspects of Systems Theory include:

- **Interconnected Components:** Emphasizes the need for all parts of the organization to
work together harmoniously.
- **Organizational Synergy:** Improved employee relations and a cohesive system enhance
overall productivity.

This theory supports organizational performance by promoting an inclusive system where e

mployees work together effectively, increasing organizational synergy (Midgley, 2006).

#### 2.3 Empirical Review

The empirical review examines previous studies on the impact of HRM practices on employe
e performance.

1. **Recruitment and Selection:**

Ekwoaba, Ikeije, and Ufoma (2015) found that effective recruitment and selection practices
positively influence employee performance, leading to higher productivity and lower turnov
er rates.

2. **Training and Development:**

Jehanzeb and Bashir (2013) demonstrated that training and development programs signific
antly enhance employee performance by improving skills and job satisfaction.

3. **Performance Appraisal:**
Khan (2013) revealed that performance appraisals motivate employees and improve job pe
rformance through regular feedback and recognition.

4. **Compensation and Benefits:**

Milkovich, Newman, and Gerhart (2011) showed that competitive compensation and bene
fits packages are associated with higher employee performance due to increased job satisfac
tion and organizational commitment.

5. **Employee Relations:**
Guest (2002) found that positive employee relations, characterized by good communicatio
n and conflict resolution, are linked to improved performance outcomes.
#### 2.4 Conceptual Framework

A conceptual framework illustrates the relationships between variables in a study. In this res
earch, the framework examines the impact of HRM practices (independent variables) on em
ployee performance (dependent variable).

**Independent Variables:**
1. Recruitment and Selection
2. Training and Development
3. Performance Appraisal
4. Compensation and Benefits
5. Employee Relations

**Dependent Variable:**
- Employee Performance

The framework posits that effective HRM practices lead to improved employee performance,
which includes higher productivity, job satisfaction, and organizational commitment.

#### 2.5 Research Gap

While numerous studies have explored the relationship between HRM practices and employ
ee performance, there is a lack of research focusing specifically on Nairobi County. Most exis
ting literature centers on Western developed countries, with limited attention to African con
texts. This study aims to fill this gap by examining how HRM practices affect employee perfor
mance in Nairobi County, providing localized insights and contributing to the broader unders
tanding of HRM's impact in different settings.