Impact of Strategic Human Resource Management Practices on Organizational Performance (A Case Study of Safaricom)

Abstract

Purpose: The purpose of the study is to investigate the impact of strategic human resource practices on performance of Safaricom Ltd Methodology: The study adopted a cases study research design. Stratified random sampling technique was applied to select the managers from various departments in order to best inform the study results. A questionnaire was the preferred data collection instrument due to its convenience and confidential nature. The data was analyzed using descriptive statistics. Specifically, means, mode and median were the preferred descriptive statistics. The findings were presented in bar charts and graphs. Results: Findings indicated that that the human resource factors, personal factors and firm level factors contributed to the vertical and horizontal firm between strategic human resource management and competitive strategy. Consequently, it was concluded that Strategic Human management impacted on the superior performance of Safaricom Ltd. Unique contribution to theory, practice and policy: Since the study established the presence of horizontal fit among human resource function factors, the researcher recommended that Safaricom should continue to align its human recruitment policy with its motivation policy, compensation policy and training policy. For instance, Safaricom should continue recruiting highly qualified individuals, compensate the individuals highly, motivate the individuals highly and train them effectively. In addition, the Safaricom management should allow the HR function to operate flexibly such that the department is able to exercise all the available options relevant to carrying out human resource activities. Furthermore, the investment budget towards Safaricom HR function should be increased so as to enhance the strategic fit and the consequent superior organization performance. The study further recommended a causal study on the statistical relationship between investment in HR function and the performance of Safaricom using the balanced score card concept advocated by Kaplan and Norton