THE INFLUENCE OF HUMAN RESOURCE POLICIES ON EMPLOYEE PERFORMANCE: INSIGHTS FROM CO-OPERATIVE BANK KENYA
Sandra Caren Ouma , PhD, United States International University Africa, NAIROBI, KenyaAbstract
This study aims to explore and analyze the impact of human resource (HR) policies on employee performance within Co-Operative Bank Kenya. It seeks to identify how various HR policies contribute to or hinder employee productivity, job satisfaction, and overall performance.
Human Resource Management (HRM) plays a crucial role in shaping the work environment and influencing employee outcomes. Effective HR policies are essential for fostering a productive workforce, enhancing job satisfaction, and achieving organizational goals. In the context of the banking sector, where performance and service quality are critical, understanding the relationship between HR policies and employee performance becomes increasingly significant.
This research employs a mixed-method approach, combining quantitative and qualitative data collection techniques. Surveys were distributed to employees at various levels within Co-Operative Bank Kenya to gather quantitative data on their perceptions of HR policies and their impact on their performance. Additionally, in-depth interviews were conducted with HR managers and department heads to gain qualitative insights into the implementation and effects of HR policies. The data were analyzed using statistical methods and thematic analysis to draw comprehensive conclusions.
The study reveals that HR policies at Co-Operative Bank Kenya have a substantial impact on employee performance. Key areas of influence include recruitment and selection practices, training and development programs, performance appraisal systems, and compensation and benefits structures. Employees reported that clear and equitable HR policies contribute positively to their motivation and job satisfaction, which, in turn, enhances their performance. Conversely, inconsistencies and perceived unfairness in policy implementation were linked to decreased morale and productivity.
Effective recruitment and selection policies were found to align employee skills and job roles, leading to better performance outcomes. Employees who felt that the selection process was transparent and merit-based were more likely to demonstrate high levels of commitment and performance.
Comprehensive training and development programs significantly influenced employee performance by equipping staff with necessary skills and knowledge. Continuous professional development opportunities were associated with increased job satisfaction and enhanced performance.
A well-structured performance appraisal system, characterized by clear performance metrics and regular feedback, was positively correlated with improved employee performance. Employees who received constructive feedback and recognition were more motivated and engaged.
Competitive compensation and benefits packages were crucial for maintaining high performance levels. Employees who perceived their compensation as fair and reflective of their contributions reported higher job satisfaction and performance.
Despite the overall positive impact of HR policies, some challenges were identified, including inconsistencies in policy application and communication gaps between HR and employees.
Recommendations include standardizing HR practices, enhancing communication, and ensuring fairness in policy implementation to address these challenges.
Keywords
Human Resource Policies, Employee Performance, Co-Operative Bank Kenya
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