HUMAN CAPITAL MANAGEMENT AND PERFORMANCE OF ORGANIZATIONS IN THE BUILDING AND CONSTRUCTION SECTOR IN KENYA: A CASE OF TILE AND CARPET CENTRE

Abstract

Across the globe, most organizations fail to deliver as expected due to poor human capital management. Given this scenario, it is apparently more important than ever for such organizations to come up with multi-faceted strategies such as Human Capital Management (HCM) to strengthen employee engagement and enhance organization performance. The current study aimed to investigate relationship between Human Capital Management and Organizational Performance at Tile and Carpet Centre (T&C). The study sought to determine the effect of employee training, employee motivation, employee creativity and teamwork development on performance of Tile and Carpet Centre. The study was of importance to management of T&C, other companies in the building and construction sector, management staffs across all sectors, HR practitioners, scholars and academicians. The human resource management theory and goal setting theory anchored the variables of the present study. The study adopted descriptive research design. The study population was 750 staff working in 3 T&C locations while stratified random sampling technique was used to sample 100 respondents. The pilot testing was conducted using the questionnaire on 10 staff from ICD warehouse, Nairobi County. The measure of reliability was tested using Cronbach’s alpha at 0.7. The study was a descriptive research and primary data was collected using a questionnaire. Frequency distribution tables and figures were used to present the findings where interpretation was done in prose form. The researcher conducted simple and multiple regression analysis in order to find out the relationship between HCM and organizational performance of T&C. The inferential results on effect of employee training on organization performance show R=0.660 indicating a strong positive correlation and R2=0.435 and there was a significant effect between employee training and organization performance (t=8.286, p<0.05). The inferential results on effect of employee motivation on organization performance show R=0.608 indicating a strong positive correlation and R2=0.370 and there was a significant effect between employee motivation and organization performance (t=7.232, p<0.05). The inferential results on effect of employee creativity on organization performance show R=0.588 indicating a strong positive correlation and R2=0.346 and there was a significant effect between employee creativity and organization performance (t=6.866, p<0.05). The inferential results on effect of teamwork development on organization performance show R=0.623 indicating a strong positive correlation and R2=0.389 and there was a significant effect between teamwork development and organization performance (t=7.522, p<0.05). Therefore, the study recommends that T&C and other organizations in the building and construction sector need to ensure they utilize effectively the untapped labour force resource within their disposal. Every employee joins the organization with several different skills set and experiences that can be successfully tapped by the management to increase overall productivity, maximize employee performance, increase overall cost efficiency, enhance market share, new market product introduction and profitability. Furthermore, the study recommends that T&C needs to make adjustments on employee matters such as working time, self-confidence, responsibility and own initiative which will eventually eliminate poor work attitudes, ethics and practices the affect organizational performance. Finally, the study recommends that human capital practitioners need to apply proper management of human capital in organizations and incorporate the way human capital is applied in work processes; scholars and academicians need to utilize the research analysis and findings on human capital thereby adding critical knowledge and literature for future reference and research studie