Influence of manpower outsourcing on electricity supply to customers: A case of Kenya Power and Lighting company, Eldoret West Sub county, Kenya
Abstract
Companies have always sought ways to gain quality service delivery as an
improvement of past poor services; one avenue that firms have pursued to improve
their service quality position in this new business environment has been to increase
the role of outsourcing in their operations, which has been found to provide a
competitive advantage and heightened performance to these firms. However,
companies industries under the context of increasing use of outsourcing arrangements,
as well as the unfamiliar complexity, are unaware of how to effectively utilize this
strategy to improve their services. The study therefore purposed to establish the
influence of cost reduction on electricity supply to customers; determine the influence
of employee competence on electricity supply to customers; determine the influence
of lead time on electricity supply to customers; and determine the influence of quality
of supply on electricity supply to customers in Eldoret West Sub County. This study
employed the Resource-Based View theory and employed descriptive survey research
design to target the 120 sub-contractors at Eldoret West Sub County. Simple random
sampling was used to get 60 respondents, while purposive sampling was used on
KPLC managers and customers. Questionnaires were used to collect data. To test the
reliability of the instruments test retest method was used while validity of the
instruments was measured by two experts at Nairobi University reviewing the
instruments. Data was analyzed using descriptive, correlation and regression analysis
then presented in tables. The findings of the study were: Knowledge and skills
(β=.393, t=5.968, p<0.000), cost reduction(β=.193, t=2.593, p<0.004), lead-time,
(β=.324, t=4.383, p<0.000), and quality of supply, (β=.352, t=5.129, p<0.000), had a
significant influence on connection of electricity to customers in Eldoret West sub
county, Kenya. The study therefore recommends: KPLC should employ strategic and
well thought out outsourcing to further reduce operating and overhead costs for
further firm growth and effective connection of electricity to customers. Further,
KPLC and the contractors should offer better terms of service and proper training to
help improve employee competence and reduce costs of outsourcing its HR functions
for connection of electricity to customers. They should carefully consider the issue of
shortened lead-time to ensure that the customers are getting the services on time.
KPLC and the contractors should invest in quality connection of electricity tools to
give customers a return on their money with quality supply services.
Publisher
University of Nairobi