INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEE PERFORMANCE IN BRITISH AMERICAN INSURANCE COMPANY, KENYA.

Oduor Beatrice Atieno ¹

Msc. Human Resource Management,

Jomo Kenyatta University of Agriculture &Technology

Dr. Abok Mwajuma Alice ²

Jomo Kenyatta University of Agriculture and Technology

Dr. David Kiarie Mburu ³

Jomo Kenyatta University of Agriculture and Technology

CITATION: Atieno, O., B., Abok, A., M., Mburu, D., K. (2016). Influence Of Human Resource Management Practices On Employee Performance In British American Insurance Company, Kenya. International Journal of Human Resources and Procurement. Vol. 5(10) pp 32- 47.

ABSTRACT

As organizations continue to face mounting competitive pressures, human resources have been recognized as providing a source of competitive advantage to the firms. In support of this, many scholars have reiterated that the increasing interest in human resources is due to the assumptions that employees’ role and the way they are managed is critical to the success of a firm. Hence, the importance of having a competitive human resource is synonymous with the success of today’s organizations to meet their interests and challenges of today’s competitive business climate. This study used a descriptive research design to gather information from the target population on the influence of recruitment, training, compensation and talent management on employee performance in British American Insurance Company in Kenya. Sample size was determined using Barreiro & Albandoz (2014) statistical technique which indicates that a sample has to be representative of the population. The study targeted 200 employees comprising of Management and supervisory staff. A sample size of 50% was drawn from the target population using simple random sampling method. 100 questionnaires were distributed to respondents, out of 100 questionnaires 82 were filled and returned. Both primary and secondary data were used to obtain information on employee performance. The primary data was collected by use of self-administered questionnaires with both open and closed ended questions. The questionnaire was pre-tested in a pilot study to determine the reliability and validity of the instrument. Analysis of Variance (ANOVA) was conducted using SPSS-21 to test if the model is statistically significant in predicting employee performance. The study found out that F-calculated value (7.549) was greater than F-tabulated (3.23) value at 5% significant level. Hence, the model is statistically suitable for predicting employee performance. A multiple regression analysis was conducted and results showed that recruitment, training, compensation and talent management have influence on employee performance in British American Insurance Company in Kenya and the correlation analysis results also indicated a strong positive relationship between the independent variables with dependent variable. The results were presented using tables, percentage distributions and charts. This study concludes that there is an existence of strong relationship between human resource management practices and employees performance in British American Insurance Company. Hence, there is need to embrace good human resource management practices in order to promote employee performance for the insurance companies to succeed. Finally, recommendation were made in the following; that British American Insurance Company should support employees’ attachments to the compensation issues; enhance employees’ personal developments; Managers coaching and job rotations to develop capabilities and improve employee performance and that the company should align employees’ talent management system to meet up with the business requirements; and management should know what factors contribute to difficulties in attraction and retention of employees so that effort should be made to keep various retention factors in balance in order to ensure continuity of its operations and productivity.

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