i Relationship between labour relations practices and organizational performance in Kenyas horticultural sector

Abstract

Agriculture is the mainstay of the Kenyan economy and currently represents 24% of Gross Domestic Product. The agricultural sector accounts for 18 per cent of total formal employment in the country. The objective of this study was to investigate the relationship between labour relations practices and organizational performance in the horticultural sector in Kenya. The specific objectives of the study were: to establish the relationship between employee communication on organisational performance in the horticultural sector in Kenya, to determine the relationship between employee involvement on organisational performance in the horticultural sector, to examine the relationship between human resources procedures on organisational performance in the horticultural sector and to determine the moderating effect of leadership styles on the relationship between labour relation practices and organization performance in thehorticultural sector in Kenya. The cross sectional survey design was used. The population for the study comprised of fourteen flower farms based in Naivasha. The study targeted the human resource managers and their deputies and the general workers in targ eted farms. Stratified sampling technique was used to sample the firms for the study. Questionnaires were used as instrument for data collection. A total of 2488 respondents were targeted (constituting of 2460 employees and 28 Human Resource Managers and their deputies)by the studyout of which 1912 responded giving a response rate of 76.8%.The study found that employee communication was one of the strategies by organizations in the horticultural sector to improve their performance as evidenced by the fact that communication facilitated exchange of information and opinion with the organization as indicated by 65% of the respondents. The study found that employee engagement was one of the strategies used by organizations in the horticultural sector to improve their performance. This is evidenced by the fact that engagement facilitatedlearning and growth within the organization as indicated by 67% of the respondents.The study also found that Human Resource Procedures was one of the strategies used by organizations in the horticultural sector to improve their performance. This was evidenced by the fact that employees agreed that there were clear policies on Health and Safety Procedures with in the organization as indicated by 45% of the respondents. The study concludes that employee communication, employee engagement and human resource procedures are major determinants of organization performance in the horticultural sector. The study recommends that organizations should develop effective communication strategies to facilitate passing of information both within and outside the organization thus improving performance. The study further recommends that when employees are engaged, they are more likely to put energy into interactions with clients, and there may be a spillover effect onto colleagues, creating a more engaged workplace generally. The study finally recommends that the same study be replicated in other sectors of the economy since it was only undertaken in the Horticulture Sector.