The Mediating Effect of Human Resource Management Practice on the Relationship between Corporate Governance and Performance of Insurance Companies in Kenya
DOI:
https://doi.org/10.53819/81018102t20010Abstract
Human resource management practice is conceptualized as a set of internally consistent policies and practices designed and implemented to ensure that a firm’s human capital contribute to the achievement of its business objectives. Human resource management practices are posited to play a very important role in ensuring overall performance. This study sought to assess the mediating effect of human resource management practice on the relationship between corporate governance and performance of insurance companies in Kenya. The philosophical foundation of this study was positivism, where quantitative data was used. Cross-sectional survey design was adopted for this study. The study population comprised of 52 insurance companies licensed in Kenya as at December 2017. The respondents were the Senior Managers and the general employees. Census method was used to obtain the number of senior management where a CEO and Human Resource Manager were used from each insurance company. This study utilized primary that was collected using questionnaires. The study concludes that there exist a full mediation effect of human resource management practice on the relationship between corporate governance and performance. A well-defined framework of human resource management practice benefits the organization and the employees. Human resource management practice of an organization benefits the employee by providing better opportunities for growth in terms of better compensation, benefits, training and development opportunities and career management in turn leading to job satisfaction, self-fulfillment and improved performance. The study recommends on developing training programs for the managers on the need for good corporate governance and mechanisms of improving organization performance through creating competitive advantage.
Keywords: Human Resource Management Practice, Corporate Governance, Performance, Insurance Companies & Kenya.
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