The Effect of Human Resource Management Practices on Employee Outcomes: A Study of Firms Listed on the Nairobi Securities Exchange

Abstract

Most empirical research on the link between Human Resource Management Practices (HRMP) and employee outcomes has concentrated on the private sector, yet understanding this relationship in publicly listed firms, in the Developing World context is equally important. The effect of HRMP on employee outcomes - has not been established amongst Nairobi Securities Exchange (NSE) listed firms, yet theory has demonstrated that HRMP can have an effect on employee outcomes. This study was motivated by the desire to fill this gap in knowledge. The study objective was to assess the relationship between HRMP and employee outcomes. The research design was cross sectional descriptive survey. Data was collected using a self-administered questionnaire, from a population of 60 NSE listed firms. The response rate was 36(60%). Descriptive statistics, correlation and regression techniques were used to analyze the data. The results indicate that HRMP have a significant effect on employee outcomes. This study confirms the findings of previous studies that have found a significant link between HRMP and employee outcomes. It was recommended that firms have to ensure that they formulate Human Resource Management Practices that will lead to employee outcomes that can enhance employee commitment, competence and empowerment. This will assist the firms towards attainment and sustenance of superior and competitive advantage in their activities.

Keywords: Human Resource Management Practices (HRMP); Employee Outcomes; Nairobi Securities Exchange (NSE)