Role of Human Resource Management Functions On Organizational Performance with reference to Kenya Power & Lighting Company – Nairobi West Region

Abstract

Human Resource is an important corporate asset and performance of organizations depends upon the way it is put in use through human resource management, which aims at ensuring that organizations achieve success through people. The distinctive feature of HRM is its assumption that improved performance is achieved through the people in the organization. Kenya Power in its bid to embrace the idea of sustained performance and flexibility has engaged approximately 11,000 human capital who are charged with the responsibilities of ensuring supply of adequate and reliable electricity to its customers; improvement of customer service; acceleration of electricity access to the public; and creating value for the shareholders. Despite this, Kenya still faces challenges like prolonged power outages, delayed constructions of power lines, delayed connections and reconnections are experienced, thus calling for appropriate measures besides increase in human capital to enhance the company's performance. A study that examined the role of HR functions of recruitment and performance contracting on organizational performance through reduction in power outages, increased customer base and increased revenue levels was carried out with reference to Kenya Power, Nairobi West Region. A questionnaire was administered to the respondents and an analysis of the responses established that high percentages of 46.7 and 47.8 respectfully agreed that there had been continuous reduction in power outages in the year under research and an increase in customer base was experienced. A high percentage of 33.7 strongly agreed on that there had been increased revenue levels in the year under research. The study found out that the HR functions of recruitment and performance contracting positively affected organizational performance and recommended continuous improvement on the HR functions to ensure continuity in increased organizational performance. 1.0 Introduction Energy is a key enabler to achieving Kenyas' aspirations captured in the country's development blue print-the Vision 2030. According to a Workshop on energy scenarios July 24, 2013, the overall goal of Kenya's energy sector is to provide affordable, sustainable and reliable supply of energy that will stimulate high and sustained economic growth leading to higher incomes, increased employment and reduced poverty. In this light, Kenya Power which is a limited liability company in the energy sector in Kenya, transmits, distributes and retails electricity to customers throughout Kenya. Kenya Power owns and operates the National Transmission and Distribution Grid and retails to more than 2,038,625 customers throughout the country. The company has been providing power for both industrial and domestic use throughout Kenya. In support of the country's development goals, Kenya Power is strategizing for growth through improvement in distribution efficiency and reduction of commercial losses by introducing the stima flow procedures which are aimed at enhancing customer satisfaction thereby winning customer confidence. Better service delivery to customers require urgent attentions and failing to appreciate this fact is the worst mistake that can ever be made since it would lead to: unreliable power supply and loss of revenue since the more the sales the more the revenue; loss of employment as the company relies on the income generated in order to service its operations thus can only retain a sustainable human resource; disruptions and interruptions of production lines which has an adverse effect in economic growth as the affected organizations would never meet their production targets which in return affects income generation. 1.1.1 Human Resources According to Nzuve (1997), Human Resource refers to the individuals within an organization whose activities contribute to the organization´s success that is, achievement of organizational goals and objectives. Macgregor (2011) also points out that the backbone or foundation of an organization is its core staff. Every organization should therefore have the right people in the right places at the right time to enhance success. 1.1.2 Human Resource Management Human Resource Management as defined by Michael Armstrong (2009), is a strategic, integrated and coherent approach to the employment, development and well-being of people working in organizations. The overall purpose of human resource management is to ensure that the organization is able to achieve success through people. HRM aims to improve organizational effectiveness and capability-the capacity of an organization to achieve its goals by making the best use of the resources available to it. 1.1.3 Organizational Performance According to Michael Armstrong (2009), the concept of performance covers both what has been achieved and how it has been achieved. Performance is measured through key performance indicators which are usually to do with financial results or productivity. A considerable amount of research has been conducted recently on the impact of HRM on organizational performance for example Arthur (1990,1992,1994) obtained data from 30 US strip mills and assessed impact on labour efficiency and crap rate by reference to the existence