EFFECT OF STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE.

ABSTRACT

The purpose of this study was to ascertain the effect of strategic human resource management practices on organizational performance. To actualize the objectives of this study, the study raised five research questions which was aligned to the five strategic human resource management practices (organizational development, capacity building, performance management, involvement in decision making and motivation). The study covered a sample size of three hundred (300), of which same number of questionnaires was distributed, retrieved and used for data analysis. Descriptive statistics and regression analysis were used for the study’s empirical analysis. The findings arrived at after the empirical analysis is stated below: there is a significant relationship between organizational development and organizational performance; capacity building has a significant relationship with organizational performance; performance management has a significant relationship with organizational performance; involvement in decision making does not have a significant relationship with organizational performance; and mmotivation was found to have a significant effect on organizational performance. Based on the findings of the study, the following recommendations were made: HR managers should offer different diverse organizational which must be relevant to the jobs of employees; the banks’ management should create an adequate performance management framework that will effectively link performance of banks to their goals and hence adequately link individual performance to bank performance; the banks should conduct frequent capacity building programmes for employees as doing so ensures the continuous development of employees’ capabilities; among others.