Influence of Strategic Human Resource Alignment on Organization’s Performance in Selected Companies Listed in Nairobi Securities Exchange in Kenya

Abstract

Competition in business is a worrying phenomenon for all managers of business organizations. There is increasing and rapidly changing business environment which is turbulent and highly competitive which requires firms to efficiently allocate resources and use such resources as sources of competitive advantage. The study adopted a mixed research methodology that allowed qualitative and quantitative data to be collected.  The study employed an explanatory research design. There were 156 senior managers in the 12 selected companies who constituted the Target Population; from this a sample of 112 respondents were sampled. The data collection method constituted adapted and well-tested structured questionnaires. The Statistical Package for Social Sciences (SPSS) was applied in data analysis. Descriptive statistics were applied in analysing the data which included frequencies and percentages while inferential statistics used was majorly regression. The study found that companies listed in NSE aligned their human resource according to their strategic plan. This was evidenced by continuous training to sharpen the skills of the staff members, developed policies to ensure continuous knowledge and skills development among the staff members. Also the study found that the staff members working with those companies had enhanced their abilities, helped to generate information about the firms and creation of customer satisfaction loyalty. Further, a regression test found that human resource alignment had significant effect on the performance of the firms listed in NSE showing that human resource alignment was key to the performance of the firms listed in NSE.

Keywords: Human resource, Alignment, Resource, Performance