EMPLOYEE PERCEPTIONS ON HUMAN RESOURCE PRACTICES AND EMPLOYEE JOB PERFORMANCE AMONG MICRO AND SMALL ENTERPRISES IN THE MANUFACTURING SECTOR IN KENYA

Abstract

Human resource management (HRM) practices play an important role in improving productivity and survival of the organization. With rising competition among firms globally, firms have turned to HRM to enhance their competitive advantage. This study sought to examine Employee perceptions on HRM practices and employee job performance among Micro and Small Enterprises in the Manufacturing Sector in Kenya. The specific objectives were: To establish the relationship between staffing practices, training, pay and reward, the work environment and employee job performance. Theoretical review examined relevant theories: Social Exchange, Motivation Hygiene, Experiential Learning and Cognitive Evaluation. The study adopted a descriptive research design. The population was 210 MSMEs listed at KEBS. A sample of 55 was drawn through systematic random sampling. A semi-structured questionnaire was used to collect data. The questionnaires were distributed and administered through the use of trained research assistants.  Data analysis was done using SPSS with the main statistical tools being percentages, correlation and regression analysis. Results were presented using tables and charts. The study found that the staffing function of SMEs was largely underdeveloped and that it has a statistically significant relationship with employee job performance. Training was found to have a positive and statistically significant relationship with employee performance. Most employees found pay and reward to be average with a positive and significant relationship with employee performance. Working conditions were found to be above average with no statistically significant relationship with employee performance among manufacturing SMEs in Kenya. Keywords: Employee Perception, Human Resource Practices, Job Performance