Influence of Employee Relations Practices on Organisational Performance of Public Healthcare Sector in Kenya

Abstract

Organisational performance has received wide attention in literature and research due to its importance since every organization aims to achieve higher performance. Critique of existing literature on Employee Relations Practices reveals that gaps exist on their influence on Organisational Performance in Public Healthcare Sector in Kenya. The main aim of this study was to establish the extent to which various employee relations practices such as conflict resolution, employee empowerment, employee compensation, and employee voice influence organisational performance in public healthcare sector in Kenya. The study targeted hospitals categorized in levels four (4) and five (5) as per the government of Kenya categorization structure. Information was gathered by use of questionnaires which were subjected to pre-test to ensure both validity and reliability of the instruments. The study adopted descriptive research design and used census to gather data from four hundred and fifty (450) Hospital Administrators, Human Resources Managers and Employee representatives from all the 150 hospitals of level 4 & 5 in Public Healthcare Sector in Kenya. The study generated both qualitative and quantitative data which was collected using likert scales and later analyzed descriptively using Measure of Central Tendency and inferentially using Multiple Regression Model. Analyzed data was presented using tables, charts and graphs. All the questionnaires were received as valid. This constituted 100% response rate. The questionnaire was pilot tested on respondents drawn from Public healthcare Sector which was not included in the final research. Reliability of the questions was tested by use of Cronbach’s alpha. Normality test was done for dependent variable in order to aid subsequent analysis. Factor analysis was also done to reduce the data to meaningful size and all the items met the required threshold. Correlation analysis was used to test the direction of relationship between the independent variables and dependent variable. Multiple regression was used to test whether conflict resolution practices, employee empowerment practices, employee compensation practices and employee voice practices have any influence on organizational performance. The study established a multiple coefficient correlation of 0.693 (69.3%) between employee relations practices and organizational performance. The study concludes that employee relations practices influence organisational performance of Public Healthcare Sector in Kenya. The study recommends to the management in public healthcare sector to embrace sound employee relations practices such as alternative conflict resolution practices as current union voice does not influence Organisational performance. They should also come up with innovative practice to reinforce sense of self efficacy among healthcare worker. The study also recommends that the Ministry of Health to come up with an elaborate plan to equip all hospitals elevated to levels 4 and 5 as these acts as centers of excellence in Medicare. The study recommends further study on other factors such as technology that influence organisational performance of Public Healthcare Sector other that those covered in the study.