| dc.description.abstract | The objective of the study was to determine the relationship between human capital management
(HCM) practices and performance of commercial banks in Kenya. It was carried out using a
cross sectional survey design as well as a correlation research. The study population and sample
was 45 commercial banks. A total of 23 banks took part in the final survey. The primary data
was generated through questionnaires whose respondents were head of human resource
departments in banks while secondary data was sought from the financial statements of banks by
means of content analysis. In order to test for the relationship between HCM practices and firm
performance, the ordinary least squares (OLS) method was used to perform a regression analysis.
The investigation established that the most used human capital management practices were in
recruitment excellence, collegial and flexible work place and rewards and accountability. The
least used practice was communications integrity. The study also noted that with the exception of
communication, other human capital management practices had a positive influence on turnover
growth. It is concluded that most commercial banks adopt human capital management practices
to an average degree. The study further concludes that human capital management practices
generally have a positive influence on performance as measured by both turnover growth and
return on assets. The study recommends that there is need for commercial banks in Kenya to
enhance the human capital management practices.
Key Words- Human capital management, competitive advantage, technological change, human
capital advantage, intangible assets, organizational performance and human capital | en |
