Influence of Strategic Human Resource Management Practices on Employee Performance: A Case of United States International University- Africa

Abstract

The purpose of the study was to study the influences of strategic human resource management practices on employee performance. The study was guided by the following research questions: How do financial rewards affect employee performance? To what extent do manager’s attitudes affect employee performance? What are the effects of organizational culture on employee performance?

A descriptive design approach was used in the study. The target population was 174 employees of USIU-A. Stratified random sampling was used to select a sample size of 52 respondents. A structured questionnaire was used to collect data. Data was analyzed using descriptive statistics such as frequencies, mean and standard deviation. Pearson correlation and regression analysis were used to determine the influence of independent variables on the dependent variable. Statistical Package for Social Sciences (SPSS) software was also used to analyze data. Data was presented in the form of Tables, Figures and Charts.

Findings on financial rewards and employee performance revealed that respondents agreed that pension scheme motivate them to work harder and the organization pays them on time. However, respondents could not reach an agreement on the organization contributes on employee pension scheme, the organization does not give employees bonus based on performance, and salary employee receive motivate them to perform significantly. In addition, respondents disagreed on salary motivates them, bonus influence has an impact on work performance, salary is based on employee qualification and bonus motivates employee performance and employee are satisfied with the bonus the organization gives them.

Findings on manager’s attitudes and employee performance revealed that respondents could not reach an agreement on employees work well without supervision and employee collaboration and solving problems with their colleagues and managers, employees produce and present a quality work to their superior and managers are flexible when making decisions. In addition, respondents could not reach an agreement on managers take time to build relationship with individual employees, managers show employee recognition, managers influences employee performance and employee attitude affects managers on decision making. However respondents disagreed on managers communicates on all matters concerning employees on time.

Findings on organization culture revealed that respondents could not reach an agreement on organization values individual contribution, high performance is a strong organizational culture, the organization develops human capabilities, employees work to achieve organizational goal, the organization encourages some input into decisions that affect employee’s work, top management and supervisors are accessible and the organization gives employees authority and ability to manage their work.

In conclusion pension motivates employees to work harder, the organization pays employees on time, employees work well without supervision. However, salary does not motivate employees and bonus does not influence employee performance, managers do not show recognition to employees and managers empowerment do not to influence employee’s performance. In addition the organization does not value individual contribution, the organization does not develop human capabilities for all employees and the organization does not have a culture of high performance.

The study recommends that the organization should develop a better bonus package that will motivate employee performance, give employee’s salary based on their performance, communicate on time matters concerning employees, managers should build relationship with employees, managers should develop empowerment strategies hence which will influence employee performance, employees should be given the ability to manage their own work, employees should be able to access top management and supervisors and employees should be motivated to work hard and achieve organizational goals.