Contingency Human Resource Management and Performance of Listed Commercial Banks in Kenya
DOI:
https://doi.org/10.53819/81018102t5009Abstract
Effective management of Human resources that includes Contingency HRM is a major determinant of success in businesses. Little information is available on the impact of Contingency HRM on performance of listed commercial banks in Kenya. The main objective of this study was to assess the effects of Contingency HRM on performance of listed commercial banks in Kenya. The research addressed four specific objectives, namely: to assess the influence of continuous gap analysis on performance of the listed banks, to establish to what extent head hunting of personnel influences performance of the listed banks, to examine the influence staff training on performance of the listed banks and lastly to assess the influence of staff rewards on performance of the banks. This study adopted a survey design that incorporated quantitative methods to help establish the relationship between Contingency HRM and performance of listed commercial banks. The population was the senior and middle level managers based at the head offices in Nairobi County. The researcher adopted stratified random sampling where the managerial staff was stratified into top, middle and low-level managers and the banks was grouped differently. Purposive sampling was then used to select the senior level managers while simple random sampling was used to select the middle level managers so as to represent their entire population. Data for the study was collected from a sample of the senior level and middle level managers of the listed banks at the head offices through questionnaires and financial statements. The questionnaires contained specific close ended questions to gather the required information. The financial statements of the banks were compared with the previous year to establish the dependent variables of profitability, market share and the number of bank branches. The research analysis included descriptive statistics i.e. mean, standard deviation, frequencies and percentages. Correlation analysis and factor analysis was also used to analyze the data. The descriptive statistics indicated that most of the commercial banks has contingency human resources management which influence their performance. Spearman’s correlations revealed a positive correlation between the independent variable (continuous gap analysis, staff training, staff rewards and head-hunting) and the dependent variable (performance of commercial banks in Kenya). Finally, the study concluded that staff rewards, staff training, continuous gap analysis and head-hunting affects performance of commercial banks in Kenya.
Keywords: Continuous gap analysis, head hunting of personnel, staff training, staff rewards, performance, banks, Kenya
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