International Journal of Human Resource

Management and Research (IJHRMR)

ISSN(P): 2249-6874; ISSN(E): 2249-7986
Vol. 4, Issue 6, Dec 2014, 39-52
TJPRC Pvt. Ltd.

EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEE

PERFORMANCE IN KENYA: A CASE OF LARGE SCALE TEA FARMS IN KURESOI
SOUTH DISTRICT, KENYA
CHRISTOPHER KIPYEGON KIPTIS, JOSPHAT KWASIRA & PETER KIPROTICH CHERUIYOT
Jomo Kenyatta University of Agriculture and Technology, Nakuru CBD Campus, Nakuru, Kenya

ABSTRACT
As the business environment is becoming more competitive and unstable than ever before, organizations are
seeking to gain competitive advantage through enhanced employee performance. To achieve this, organizations have
recently focused on the human resources practices through more innovative approaches. The aim of the present study was
to establish the effect of human resource management practices on employee performance in large scale tea farms in
Kenya. The study specifically looked at the effect of selected practices and how they impact on the overall employee
performance. The study employed a descriptive research design specifically a case study of tea firms. The target population
was employees of all three large scale tea farms in Kuresoi South District. The target population was 2750 employees and
the study used cluster sampling due to the geographical coverage of the tea farms to have a representative sample of 96
employees. The study used both qualitative and quantitative data approach in its data collection. The collected data was
summarized and analyzed using both descriptive both descriptive and inferential statistics and then presented in tables,
graphs and charts. The findings indicated that there was a strong relationship between employee training, employee welfare
practices, compensation and job security measures and employee performance. Compensation and employee welfare
practices with correlation coefficients of r = 0.673 and r = 0.485 were found to have the most significant effect on
employee performance. The study recommended that tea farms need to put in place effective compensation schemes and
progressive employee welfare practices in order to enhance employee performance. Further, the large scale farms need to
enhance both their employee training processes and job security measures in a bid to motivate their employees if employee
performance is to be increased.

KEYWORDS: Employee Performance, Compensation, Job Security

1. INTRODUCTION
The increasing interest in human resources is due to the assumption that employees and the way they are managed
is critical to the success of organization and can be a source of sustainable competitive advantage (Omolo et al, 2013).
Human Resource Management (HRM) practices is an innovative view of workplace management than the traditional
approach because its techniques force the managers of enterprises to express their goals with specificity so that they are
understood and undertaken by the workforce and to provide the resources needed for them to successfully accomplish them
(Becker & Gerhart, 1996). They further note that HRM practices when strategically implemented will be the key
components that will drive spur the creation of competitive value in current and future organizations. HRM practices
techniques, when properly practiced, are expressive of the goals and operating practices of the overall enterprise (Delery &
Doty, 1996). Organizations must align with various HRM practices to achieve their strategic goal. The practices applies
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Christopher Kipyegon Kiptis, Josphat Kwasira & Peter Kiprotich Cheruiyot

must also balance one another to accomplish the firms business strategy. A firms HRM practices must develop
employees knowledge, skills, and motivation to behave in ways that should be implemented (Dessler, 2013). According to
Katou and Budhwar (2007), HRM practices can be grouped into two HRM systems, namely the HRM system aiming at
attracting and developing human resources, and those aiming at retaining human resources. Among the HRM practices
aimed at attracting and developing employees are recruitment and selection, training and development; and those aimed at
retaining employees are performance appraisals and reward and compensation systems. Such activities have been linked to
organizational competitiveness, increased productivity, higher quality of work life and greater profitability (Cascio, 1992).
Consequently, many researchers link the Human capital with organizational performance through the HRM practices
(recruitment and selection, training and development, performance appraisal and reward and compensation (Schuler and
Jackson 1996). This assumption is shared by Katou and Budhwar (2007) who are of the opinion that human resource are
capable of contributing to organization performance. Previous studies indicate essential HRM practices, as workforce
planning (Mathis & Jackson, 2004); job analysis (Cascio, 2006); training and development (Kundo, 2003); recruitment and
selection (Kulik, 2004); compensation and reward (Milkovich & Newman, 1999); performance appraisal; career
management; human resource information system; quality of work-life, personnel diversity and employees attitude surveys
(Armstrong, 2005) affect the performance of a firm. Recent studies (Katou & Budhwar, 2007) have identified four
essential HRM practices namely; recruitment and selection, training and development, performance appraisal and
compensation and reward.
As most developed countries are collaborating with developing countries in business developments there is the
need to adopt a new dimension to the study of HRM. Studies need to factor in the perspective of other economies,
especially those in Africa since others in Asia and Latin America have been given ample attention (Mukanzi, 2013).
Relationships between Human Resource Management and productivity have been studied from different perspectives.
Organizations in general face continuous challenges ranging from heightened national consciousness, employment and
labour law requirements not to mention the need to ensure maximum utilization of their resources to their own advantage, a
necessity for organizational survival (Kundo, 2006). Since both indigenous and foreign companies operate in the same
competitive and volatile environment in Kenya both are bound to readjust their management practices to boost their
performance. The current disposition of HRM is largely associated with the drastic expansion of businesses globally,
technological innovations and fierce competition that characterizes the environment in which businesses operate today and
the Kenyan business environment is no exception to this global development. Kenya has recently developed into one of the
stable and growing economies on the African continent. The growth can be attributed to the diversification of agriculture,
infrastructural development and increased expansion of the telecommunication sector. Other growth areas include tourism
sector, manufacturing and retail sector. In the agriculture sector, tea stands out as having been a consistent foreign
exchange earner for the Kenyan government in the past decade surpassed recently by cut flowers (van der Wals, 2008).
Today, with a production of 350,000 tonnes per year, Kenya stands as the world third tea producer after China and India,
and as the worlds top black tea exporter (van der Wals, 2008). Different from the other world leading tea-producing
countries, Kenya only consumes around 5% of its production. As the rest is exported, Kenyan tea production represent
around 20 percent of the worlds tea exports making it one of the major contributors to national income and the private
sector main employer. The work in tea fields is labor-intensive, with planting, maintenance and harvesting done by hand
with a few cases of reported mechanized cases. The main cost for plantations is labour, representing about 55 to 73 percent
of made tea at factory gate (van der Wals, 2008). If the performance of the tea sector is to be enhanced, further research
Impact Factor (JCC): 4.9135

Index Copernicus Value (ICV): 3.0

Effect of Human Resource Management Practices on Employee Performance

in Kenya: A Case of Large Scale Tea Farms in Kuresoi South District, Kenya

41

need to be carried out to understand the effect of HRM practices on employee performance. Furthermore, some studies
(Wekesa et al, 2013; Mukanzi 2013 & Guest, 1997) propose that it is important to examine HRM practices in as many
settings as possible to justify these results. Consequently, it is worth establishing the effect of HRM practices on
organization performance in a developing country, such as Kenya, as opposed to developed countries.

2. STATEMENT OF THE PROBLEM

Previous studies indicate an increased interest in human resource practices due to the assumption that employees
and the way they are managed is critical to their performance and that of organizations which can be a source of
sustainable competitive advantage. HRM practices techniques, when properly practiced, are expressive of the goals and
operating practices of the overall enterprise. Although literature in the field of human resource management is abundant,
most focuses upon developed economies to the neglect of developing economies. Furthermore, a number of studies show
that it is important to examine HRM practices in as many settings as possible to justify these results. The tea sector being a
key foreign exchange earner and a mass employer of is of critical importance if the country is to achieve its growth vision.
Consequently, it is worth establishing the effect of HRM practices on employee performance in a developing country, such
as Kenya, as opposed to developed countries.

3. OBJECTIVES OF THE STUDY

The general objective of the study was to establish the effect of Human Resource Management practices on
employee performance in Kenya. The study was guided by the following specific objectives:

To assess the effect of employee welfare practices on employee performance in large scale tea farms in Kuresoi
South Sub-County, Kenya.

To determine the effect of employee training on employee performance in large scale tea farms in Kuresoi South
Sub-County, Kenya.

To evaluate the effect of compensation on employee performance in large scale tea farms in Kuresoi South
Sub-County, Kenya.

To establish the effect of job security measures on employee performance in large scale tea farms in Kuresoi
South Sub-County, Kenya.

4. LITERATURE REVIEW
Recently, the dominant focus of Human Resource Management literature has been to demonstrate the importance
of effectively managing human resources of organizations. Management scholars and practitioners alike have become
increasingly interested in learning more about human resource practices to enhance employee and organization
performance. The HRM function has emerged as one of the most important areas of organizational practice. It has not been
developed in isolation but rather in the context of industrial change and economic development. The present study
therefore presents various theories adopted by various researchers, a conceptual review of the variables, a framework
depicting a functional relationship and summary of available literature. The section ends with a critical identification of
gaps in the available literature. Human Resource Practices are informal approaches used in managing people (Armstrong,
2010). Wall and Wood (2005) outline HRM practices as sophisticated selection methods, appraisal, training, teamwork,

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Christopher Kipyegon Kiptis, Josphat Kwasira & Peter Kiprotich Cheruiyot

communications, empowerment, performance related pay and employment security. Huselid (1995) used eleven HRM
practices in his study and these include personnel selection, performance appraisal, incentive compensation, job design,
grievance procedures, information sharing, attitude assessment, labour management participation, recruitment efforts,
employee training and promotion criteria. It is thus clear that various scholars have adopted various HRM practices and
their impact on performance. For the purpose of the study, we will limit ourselves to employee welfare, training,
compensation and job security which are perceived to directly affect employee performance.
4.1 Employee Welfare and Employee Performance
Employee welfare has been used by many organizations as a strategy of improving productivity of employees
since work related problems can lead to poor quality of life for employees and a decline in performance (Manzini &
Gwandure, 2011). Priti (2009) argues that the role of welfare activities is to promote economic development by increasing
efficiency and productivity with the underlying principle being making workers give their loyal services ungrudgingly in
genuine spirit of co-operation and the general well-being of the employee. Despite this, Mwiti (2007) points out that
naturally welfare services may not directly relate to an employee's job but the presence or absence of the services is notable
through employee performance, attitude, high or low labour turnover. It is argued that, welfare services can be used to
secure the labour force by providing proper human conditions of work and living through minimizing the hazardous effect
on the life of the workers and their family members (Manzini & Gwandure, 2011). Welfare services may be provided for
matters concerning employees in terms of supplementing the income of the workers by providing services such as housing,
medical assistance, canteens and recreation facilities (Mishra & Manju (2007). Further, welfare facilities help in raising
employees standards of living. This makes workers to pay more attention towards work and thus increases their
productivity and foster better industrial relations, help organizations visibility and popularity (Priti, 2009). Historically
employee welfare services were meant to reduce absenteeism and time off due to illness. However, today they have taken a
broader scope and they include almost all aspects that relate to an employees wellness and personal development in the
work place (Manzini & Gwandure, 2011). Logically, the provision of welfare schemes is to create an efficient, healthy,
loyal and satisfied labour force for the organization. The purpose of providing such facilities is to make their work life
better and also to raise their standard of living (Priti, 2009). Employee welfare is a comprehensive term which refers to the
various services, benefits and facilities offered by the employer to employees with a purpose of enriching the life of
employees and to keep them happy and contented (Mishra & Manju, 2007). The success of these employee welfare
activities depend on the approach which has been taken to account in providing such activities to employees. Welfare
policy should be guided by idealistic morale and human value and such services include the provision of medical facilities,
sanitary and the accommodation of workers employed, amenities and industrial social security measures, training and
education facilities, HIV and AIDS risk reduction and counseling services (Harika, 2010). Morwabe (2009) argues that
work environment should comprise of issues such as the working hours, employment policy, workers health and welfare,
workplace design and the general conduct of workers at the workplace. Labour welfare activities in both developed and
developing society have an impact not only on the workforce but also on the facets of human resources (Manju & Mishra,
2007). These services may be provided by the government, trade unions and non-governmental agencies (Ankita, 2010).
4. 2Compensation and Employee Performance
Compensation or reward is a systematic approach to providing monetary value to employees in exchange for work
performed. Compensation may achieve several purposes; assisting in recruitment, job performance and job satisfaction.
Impact Factor (JCC): 4.9135

Index Copernicus Value (ICV): 3.0

Effect of Human Resource Management Practices on Employee Performance

in Kenya: A Case of Large Scale Tea Farms in Kuresoi South District, Kenya

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Compensation is a tool used by management for a variety of purposes to further the existence of the company.
Compensation may be adjusted according to the business needs, goals and availability of resources. Compensation may be
used to: recruit and retain qualified staff, increase and maintain the morale of staff, reward and encourage peak
performance, achieve internal and external equity, reduce turnover and encourage company loyalty, modify through
negotiations practices of unions (Cole 2004; Graham & Bennett 1998). Frye (2004) examined the relationship between
equity based compensation and firm performance and found positive relationship between the two. He argued that for the
human capital intensive firms compensation plays a crucial role in attracting and retaining highly skilled employees.
As banks are capital intensive organizations, compensation practices of a bank can be of great help in hiring and keeping
hold of highly skilled and competent bankers. Incentive pay plans positively and substantially affect performance of
workers if combined with innovative work practices like, flexible job design, employee participation in problem-solving
teams, training, extensive screening and communication and employment security (Ichniowski et al, 1997).
High Performance work practices (including compensation) have a statistically significant relationship with employee
outcomes and corporate financial performance (Huselid 1995). Significantly, positive correlation has been reported
between compensation practices and perceived employee performance (Taseema & Soeters 2006).
4. 3Employee Training and Employee Performance
Training and development are processes that attempt to provide an employee with information, skills and
understanding of the organizations and its goals. Training and development is designed to help a person continue to make
positive contribution in the form of good performance. Training is defined as any attempt to improve employees
performance on a currently held job or one related to it. This usually means changes in specific knowledge, skills, attitudes
or behavior. It is the method used to give new or present employees the skills they need to perform their job. It may mean
job orientation, showing employees how to use new equipment or showing a sales person how to sell. It is a systematic
process of altering the behavior of employees in a direction that will achieve organizational goals. Development refers to
learning opportunities designed to help employees grow. Such opportunities do not have to be limited to improving
employees performance on their current job. The focus on development is on the long term to help employees prepare for
future work demand while training often focuses on the immediate period to help fit any current deficit in employees skills
(Cole 2004; Graham & Bennett 1998). Training is designed to provide learners with the knowledge and skills needed for
their present job (Fitzgerald 1992) because few people come to the job with the complete knowledge and experience
necessary to perform their assigned job. Becker (1962) provides a systematic explanation of investment in human capital
and associated productivity, wages, and mobility of workers. Such investment not only creates competitive advantages for
an organization (Salas & Cannon-Bowers, 2001), but also provides innovations and opportunities to learn new technologies
and improve employee skills, knowledge and firm performance. In fact, there is an increasing awareness in organizations
that the investment in training could improve organizational performance in terms of increased sales and productivity,
enhanced quality and market share, reduced turnover, absence and conflict (Martocchio & Baldwin 1997, Salas &
Cannon-Bowers 2001). In contrast, training has been criticised as faddish, or too expensive (Salas & Cannon-Bowers 2000,
Kraiger et al, 2004), and there is an increasing skepticism about the practice and theoretical underpinning of linking
training with firm performance (Alliger, et al, 1997, Wright & Geroy 2001).
4. 4Job Security and Employee Performance
Job security creates a climate of confidence among employees which cultivates their commitment on the
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Christopher Kipyegon Kiptis, Josphat Kwasira & Peter Kiprotich Cheruiyot

companys workforce. Job security requires a certain degree of reciprocity: firstly, a company must signal a clear message
that jobs are secure; then, employees believing that this is true, feel confident and commit themselves to expend extra effort
for the companys benefit; finally, a company that have learnt that job security contributes to its performance, invests again
in job security (Pfeffer, 1998). Fajana (2000) developed a conceptual model of the antecedents and consequences of job
security. Antecedents include worker characteristics, job characteristics, organizational change and job technology change.
Consequences include psychological health, physical health, organizational withdrawal, unionization activity,
organizational commitment and job stress. Job involvement, cultural values, and procedural justice moderates job security
perceptions and attitudes. Smith and Kelly (1997) assessed the relationship between job insecurity, job satisfaction and
affective organizational commitment of maintenance workers in a parastatal in Gauteng. Study results revealed small but
significant relationships between job insecurity and extrinsic job satisfaction and job insecurity and affective organizational
commitment. However, todays business environments are far from providing job security to their employees.
For example, in an analysis of involuntary job loss in France between 1982 and 2002, Gregory and Milner (2009) found
evidence that technological changes contribute to keeping the employees for shorter periods of time, thus increasing job
insecurity. March and Sutton (2000) carried out a study on the underlying correlation between job security and firm
performance and found that among others, job security impacts operational performance indirectly through organizational
commitment. Kok et al, (2005) used psychological contract and social cognition theories to explore the role of full-time
employees' perceived job security in explaining their reactions to the use of temporary workers by using a sample of one
hundred and forty nine full-time employees who worked with temporaries. Results demonstrated that employees perceived
job security negatively related to their perceptions that temporaries pose a threat to their jobs.

5. RESEARCH METHODOLOGY
A descriptive research design was used specifically using a case study technique to carry out the study. The study
employed both a qualitative and quantitative approach using a structured questionnaire with open and close ended
questions. The questionnaires was administered using both the interview method and hand-delivered where the respondents
filled the questionnaires on their own and return them to the researcher. The target population was all employees of
Kiptagich Tea Estate, Chemusian Tea Estate and KTDA Farm which together had a combined workforce of 2750
employees. Statistical formulae for sample allocation gave a sample size of 96 respondents who were proportionately
allocated across the three farms. The study employed questionnaires for data collection with both open and closed ended
question. Questionnaires were appropriate as they are self administered; ensure anonymity, respondent acceptability, save
costs as well as confidentiality. Cronbach alpha analysis was used to determine the reliability of the questionnaires. Data
collected was analyzed with the aid of SPSS 21 computer software. Out of 96 questionnaires that were issued to the
sampled respondents, 90 of them were filled and returned. Of the returned questionnaires, 15 were incorrectly filled and
thus were not used in the final analysis. Therefore, 75 were correctly filled and hence were used for analysis representing a
response rate of 78%.

6. RESEARCH FINDINGS AND DISCUSSIONS

Following the processing and analyzing of the collected data, the findings are presented and discussed in this
section. The researcher sought to find out the distribution of the respondents according to their gender, age bracket,
education level and working experience. The focus on experience was mainly on number of years worked in the current
institution. According to the findings, majority of employees are male (56%) while female were 44%. The reason attributed
Impact Factor (JCC): 4.9135

Index Copernicus Value (ICV): 3.0

45

Effect of Human Resource Management Practices on Employee Performance

in Kenya: A Case of Large Scale Tea Farms in Kuresoi South District, Kenya

to this may be due to the existing gender gap in employment in Kenya and the manual nature of the work in the tea sector
which require a lot of physical strength. The findings also indicate that a majority of employees in the tea firms are of the
age group 31-40 years (43%) while the least age group is above 50 years (16%). This can be attributed to the high rate of
unemployment in Kenya which has made the younger generation to seek employment in the agricultural sector. The study
deduced that 57.3% of the respondents had a high school certificate and below which was attributed to the manual nature
of majority of activities in the tea sector in Kenya. Further, only 17% of the respondents had either a bachelors or masters
degree indicating further the nature of the workings of the sector. A significant number (25.3%) had a attained diploma
education level. The researcher further wanted to establish the working experience of the respondents. This was important
since previous studies indicated strong relationship between experience of employees and employee performance. Most of
the respondents (33.33%) had between 3 5 years working experience in the tea sector. Cumulatively, more than 55% had
less than 5 years of experience while only 18.67% had more than 5 years working experience. This can be attributed to the
fact that most private sector institutions have employees on short-term contracts in an attempt to minimize human resource
costs, measure productivity and to enhance employee performance which ultimately is geared towards enhanced
organizational performance.
6. 1 Employee Training and Employee Performance
The results of the analysis on factors associated with employee training as it relates to employee performance are
shown in Table 1.
Table 1: Employee Training and Employee Performance
n

Min Max Mean Std. Dev.

Our organization conducts extensive training programs for its

employees in all aspects of quality.

75

2.01

0.956

Employees in each job will normally go through training

programs every year.

75

2.31

1.109

Training needs are identified through a formal performance

appraisal mechanism.

75

2.59

1.213

There are formal training programs to teach new employees

the skills they need to perform their jobs.

75

2.88

1.267

New knowledge and skills are imparted to employees

periodically to work in teams.

75

2.40

1.161

Training needs identified are realistic, useful and based on the

business strategy of the organization.

75

2.12

0.984

The training opportunities greatly improve my performance as

75
an employee.

3.44

1.185

Majority of the respondents with a mean of 2.00 disagreed when asked about their organization conducting
extensive training programs for employees. With means of 2.31, 2.40 and 2.12 the respondents disagreed when asked about
going through trainings annually, new knowledge being imparted periodically to work in teams and training needs being
identified based on organizational strategy. The respondents further were unsure when asked about identification of
training needs through a formal performance appraisal mechanism (2.59), the presence of formal training programs for new
employees (2.88) and whether the training opportunities improved their individual performance (3.44). This could be
attributed to the manual nature of jobs prevalent in the tea sector in Kenya. The researcher therefore deduced that employee

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Christopher Kipyegon Kiptis, Josphat Kwasira & Peter Kiprotich Cheruiyot

training is one of the key HRM practices that enhance employee performance. The respondents ratings in the statements
related to employee training were cumulated to obtain a composite score and correlation analysis undertaken. The findings
of the correlation analysis indicated that there was a fairly weak positive relationship between employee training and
employee performance (r = 0.431). Although the correlation was weak in strength, the positive nature of the relationship
implies that high levels of employee performance in tea arms associated with effective employee training.
6. 2 Employee Welfare Practices and Employee Performance
Table 2 shows the findings related to employee welfare practices in large scale tea farms in Kuresoi South
District. The respondents, on average, agreed that employers keen interest in their welfare increases their output (3.95), a
good working environment enhances their individual and organizational performance (4.13) and that support in
bereavement helps employees cope with their loss (3.80). The respondents were unsure whether policies on sexual
harassment and bullying reduced complaints (2.71) and also on provision of health services contributing to organizational
commitment (3.20). The respondents however disagreed that counseling services contribute to commitment (2.45) and that
recreational facilities provided enhances organizational growth (2.23).
Table 2: Employee Welfare Practices and Employee Performance

The researcher therefore deduced that that employers keen interest in employee welfare, a good working
environment and general support such as bereavement enhances their individual performance which ultimately results in
enhanced organizational performance. The study further deduced that though the respondents were unsure on whether
policies on sexual harassment and bullying reduced complaints and provision of health services contributed to
organizational commitment, the farms should strive to enhance them since previous researchers have reported a strong
relationship between employee health and policies on sexual harassment with employee performance. Further, the study
concludes that counseling services and recreational facilities should be enhanced. The respondents ratings in the
statements related to leader style were cumulated to obtain a composite score and a correlation analysis undertaken.
The findings of the correlation analysis indicated that there was a fairly strong positive relationship between employee
welfare practices and employee performance (r = 0.485). The fairly strong positive relationship implies that employee
performance is greatly influenced by the welfare practices that the organization puts in place. The results are in agreement
with those of Wekesa et al, (2013) who concluded that welfare practices plays a key role in employee performance.

Impact Factor (JCC): 4.9135

Index Copernicus Value (ICV): 3.0

Effect of Human Resource Management Practices on Employee Performance

in Kenya: A Case of Large Scale Tea Farms in Kuresoi South District, Kenya

47

6. 2 Compensation and Employee Performance

In this section the researcher presents various aspects touching on compensation as it relates to employee
performance. The findings are based on a 5-point Likert scale and are depicted in Table 3. Regarding compensation, most
of the respondents disagreed on a number of issues. Notably, the respondents disagreed that job performance is an
important factor in determining compensation (2.17), salaries and other benefits were comparable to those in the market
(2.32), compensation is based on competence and ability (2.07), profit sharing is used as a mechanism to reward
performance (1.80), the farms have formal merit review process (1.97) and that the compensation package greatly
influences their performance. However, the respondents were unsure whether compensation of all employees was linked to
their performance (2.49).
Table 3: Compensation and Employee Performance

The study concluded that compensation greatly affects employee performance and therefore large scale tea farms
must continue to enhance employee compensation while linking performance measurements to individual performance,
merit and ability. The respondents ratings in the statements related to compensation were cumulated to obtain a composite
score and correlation analysis undertaken. The findings of the correlation analysis indicated that there was a strong positive
relationship between compensation and employee performance (r = 0.673). The strong positive relationship implies that
high levels of employee performance in tea farms can be associated with the level of compensation offered by the farms.
The result concurs with Ihsan and Naeem (2009) who rated pay and fringe benefits as the most important employee
performance factor.
6. 4 Job Security Measures and Employee Performance
Table 4 shows the findings related to job security measures. From the findings, the respondents generally
disagreed on a number of issues. Notably, they disagreed on whether their jobs in the farms were secure (2.08), whether the
grading system did not affect their job security (2.28), whether it took a short time to get absorbed permanently in the
organization (1.73), whether the jobs are well described and analyzed (2.16) and whether jobs allocated are based on
competency and skills (2.09).

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Christopher Kipyegon Kiptis, Josphat Kwasira & Peter Kiprotich Cheruiyot

Table 4: Job Security Measures and Employee Performance

However the respondents were unsure whether the annual employee turnover was low and whether the job
security measures greatly influenced their performance (2.57). The study concluded that job security measures greatly
influence employee performance and as such tea farms must devise ways of enhancing job security such as giving secure
contracts and benefits to their employees if their performance is to increase. The respondents ratings in the statements
related to job security measures were cumulated to obtain a composite score and correlation analysis carried out.
The findings of the correlation analysis showed that there was a weak positive relationship between job security measures
and employee performance (r = 0.327). The nature of the relationship implies that higher levels of employee performance
in tea farms can be achieved with better job security measures being put in place. The results are in agreement with
previous studies that concluded that there exist significant relationships between job security measures and employee
performance.

CONCLUSIONS
Based on the findings of the study, the researcher has drawn several conclusions. Firstly, it is concluded that large
scale tea farms must strive to enhance their employee training schemes in order to enhance employee performance. The tea
farms therefore must ensure that structures and systems that enhance employee training are in place so as to nurture and
sustain employee training and development. Employee training therefore is a key component in enhancing employee
performance and as such organizations must invest more on employee training. Secondly, it is concluded that although
there is evidence of employee welfare practices in large scale tea farms, more needs to be done on the said employee
welfare practices if employee performance is to be enhanced. Moreover, it is inferred that employee welfare practices
would positively influence employee performance and as such it is paramount that these farms continuously upgrade and
enhance their employee welfare practices.
Thirdly, it was concluded that offering comparable compensation schemes, basing compensation on individual
performance and having an effective merit review system greatly enhances employee performance. Further, having a bonus
or incentive plan for performers had significant influence on employee performance. The study established a very strong
positive relationship between the compensation package and employee performance in tea farms. Lastly, It is concluded
that in order to enhance employee performance, organization must ensure that employee jobs are fairly secure, jobs are
well described, jobs are allocated based on competency and that the organizations must take shorter time periods to absorb
Impact Factor (JCC): 4.9135

Index Copernicus Value (ICV): 3.0

49

Effect of Human Resource Management Practices on Employee Performance

in Kenya: A Case of Large Scale Tea Farms in Kuresoi South District, Kenya

employees. The study therefore concludes that job security measures play a significant role in enhancing employee
performance. After drawing inferences in line with the study objectives, the researcher has recommended that employee
training and development, compensation, employee welfare practice and job security measures be incorporated as a key
component of enhancing employee performance. The farms should engage employees based on contractual agreements that
give a win-win situation for all parties.

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