INTERVENING EFFECT OF EMPLOYEE OUTCOMES ON THE LINK BETWEEN STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES AND PERFORMANCE OF PUBLIC UNIVERSITIES IN KENYA

Abstract

Contrary to empirical evidence that Strategic Human Resource Management Practices (SHRMPs) positively impacted performance of enterprises worldwide, public universities in Kenya, which are expected to apply SHRMPs have continued to perform below expectations, in terms of financial prospects, research and innovation, new programs development rate, learner enrolment rates, graduation rates, and employee promotion rates. Available empirical literature does not seem to address the role of employee outcomes in the link between SHRMPs and performance of public universities as conceptualized in this study. This study addressed this gap. The specific objective of this study was to determine the intervening effect of employee outcomes on the link between SHRMPs and performance of public universities in Kenya. The study tested the hypothesis that employee outcomes do not have an intervening effect on the link between SHRMPs and performance of public universities in Kenya. The study was anchored on the Human Capital Theory. The study adopted a descriptive research design in a census approach. The target population was academic and non-academic employees of the 31 public universities in Kenya, using a sample of 155 respondents purposively selected from the three union representatives respectively; University Academic Staff Union (UASU), Kenya University Staff Union (KUSU), Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA), as well as one senior representative each from Academic Registrar and HR departments respectively. A self-administered five-level Likert type questionnaire was used for data collection. Based on the 110(71%) response rate, data was descriptively and inferentially analyzed using stepwise multiple linear regressions. It was found that there was a positive and statistically significant intervening influence of employee outcomes on the SHRMPs– public universities’ performance relationship. The study recommended that public universities in Kenya evidenced to be facing declining performance, exacerbated by dwindling government capitation ought to strategically select SHRMPs bundles that can enable them to optimize on the generation of desired employee outcomes, which would result in enhanced performance, sustainably and creatively.