HUMAN RESOURCE AUDIT AND ORGANIZATIONAL PERFORMANCE IN THE COUNTY GOVERNMENT OF KISUMU, KENYA

Abstract

Human resource audit (HRA) is responsible for identifying human resource problems that affect the human resource functions of an organization and improve organizational performance. Effectiveness of a HRA in the public sector needs to be investigated because the audits are always done but there is still evidence of underperformance, strikes and complaints in most sectors. Human resource audit is an annual and costly activity carried out in forty seven counties in Kenya and its effects on organizational performance need to be investigated. The purpose of this study was to investigate the relationship between selected HRA approaches and organizational performance in Kisumu County, Kenya. The specific objectives of the study were to establish the relationship between compliance audit approach and organizational performance, to determine the relationship between productivity audit approach and organizational performance and to establish moderating effect of organizational factors on the relationship between HRA and organizational performance. The study was guided by a conceptual framework which shows the interrelationship between the variables as conceptualized by the author. Descriptive survey design was used in this study. The target population included 750 managers and 1360 operational level employees. A sample size of 15% was extracted from the universe of 2110 employees which gave a total of 330 employees. The employees were stratified and then randomly picked so as to participate in the study. The study used questionnaire as the main data collection tool. Reliability of the research instrument was ascertained by a test re-test method and validity by careful scrutiny by the supervisors. The data was analyzed using descriptive statistics and the findings presented by use of frequency distribution tables, means, mode and percentages. Correlation coefficient and regression were the main tools employed to test the relationship among the variables and also in answering the research questions. From the results, it can be established that 53.1% of variance in organization performance could be explained by variance in the independence variables; compliance audit, productivity audit and value-for-money audit. Further the result indicated that compliance audit is positively related to organizational performance at 99% with p value<0.001 confidence level. This revealed that organizations that regularly audit compliance with employment rules and regulation will improve in performance. Organizational factor as a control variable has a greater significant positive moderating effect on the relationship between HRA and organizational performance as it changes R squared from 0.531 to 0.746 meaning organizational factors make the relationship more strong. The findings of the study may be useful to the managers of immediate organization involved in the study as well as other County governments in Kenya. County government should strengthen HRA policies in their counties, so as to improve the performance of its human resource function, there is need that HRA process in an organization should involve every employee and not only the managerial staff. County government need to re-look at a number of key HR products and services if they want to improve their current level of performance. Further research should be extended to other counties and the effect of organizational factors on the performance of Kisumu County Government can be established.