Employee Age, Human Resource Management Practices, Employee Competence and Employee Performance In Kenyan State Corporations

Abstract

There has been considerable academic and practitioner interest in the relationship between employee age and employee performance due to changing population and age structures in both developed and developing countries. Age plays an important role in a wide range of employee behaviors that determine their performance. Measurement of employee performance indicates organization performance. This study was anchored on the premise that, age alone is not sufficient to determine employee performance, other factors come in as moderators. The study objective was to investigate the influence of human resource management practices and employee competence on the relationship between employee age and employee performance in Kenyan State Corporations. The specific objectives were to establish the effect of employee age on employee performance in Kenyan State corporations, to determine the influence of HRM practices on the relationship between employee age and employee performance, to determine the influence of employee competence on the relationship between employee age and employee performance and finally to establish whether the joint effect of employee age, human resource management practices and employee competence on employee performance is greater than the effect of individual predictor variables on employee performance. Four hypotheses were formulated based on a conceptual framework to test the relations and basis of the conclusions drawn. The study was anchored on the expectancy, human capital and continuity theories. It adopted logical positivism as the philosophical foundation and descriptive cross sectional survey research design to find out the relationship between the study variables. A population sample of 384 employees at all levels was drawn using Webster (1995) formula. A stratified and simple random sampling technique was used to pick the number and type of respondents. The study relied on primary data collected on employee age, HRM practices, employee competence and employee performance using a structured questionnaire comprising a five point likert type scale. Descriptive and inferential statistics were used to analyze the data. Hypothesis testing was used to determine the relationship between the study variables. Pearson Product Moment correlation (r) assessed the relationship between the study variables and stepwise regression analysis technique was used to test the study hypotheses. Content validity of the research instruments was done through a pilot study. Cronbach alpha coefficient was used to test reliability of data sets used in the study. A coefficient ˃ 6 was recommended. Results indicated a statistically non significant relationship between employee age and employee performance rejecting hypothesis 1. The study confirmed that HRM practices and employee competence significantly influenced the relationship between employee age and employee performance accepting hypothesis 2 and 3. It was also confirmed that the joint effect of the study variables was greater than the effect of the average individual predictor variables on employee performance. Findings supported the theoretical views integrating them in a framework which is a theoretical contribution. The study concludes that age alone is not enough to make decisions on issues pertaining to human resource management such as recruitment, placement and retirement. It is recommended that State Corporations should formulate human resource policies and practices that will help reap maximum benefits from their employees. Particularly enhancing training and development programs, empowering employees to participate in decision making and adequately compensating them to enhance their performance as these areas were rated low. The study extends the body of knowledge in age management practices. Policy makers in state corporations will use the findings to effectively undertake organization decisions on age management practices and aligning to policies that will enhance the corporations’ prosperity. Further research needs to be done in other sectors such as the private and NGOs sectors, incorporating other variables like gender.