INFLUENCE OF HUMAN RESOURCE AUDIT ON PERFOMANCE OF MULTIPLE GROUP OF TRANSPORT COMPANIES IN KENYA

Abstract

In Kenya, the transport industry employs large number of employees. It is the responsibility of the management to ensure that employees have the right skills and knowledge that necessitates the organization to achieve its objective. To achieve this, employers have adopted a variety of human resource policies and practices with the aim of improving organization performance but despite all these efforts, performances of these organizations are perennially low. The human resource function in the transport sector cannot be considered to be a complete system of efficiency and effectiveness unless it is followed by an equally competent system of audit. It is for this reason that the researcher assessed the influence of HR audit on performance of Multiple group of transport companies. The key variables of the study were: training, the reward system, recruitment and selection and how they influence performance. The study was guided by three theories namely: Human capital theory, contingency theory and the best fit theory. The study employed a descriptive survey design; collected data from all the 5 group companies of multiple using questionnaires. The target population of the study comprised of 28 HR staff at Multiple group of companies. Since the whole population was involved, 28 Questionnaires were self-administered to all the respondents. The collected data was then subjected to SPSS for analysis and interpretations. Hypotheses were tested at 0.05 level of significance and findings presented in form of tables. The coefficient of correlation for the relationship between independent variables and the dependent variable is 0.905 which shows a strong positive correlation. The value of R-square of 0.819 implies that 81.9% of the variation in organization performance at Multiple group of Transport Companies is explained by the independent variables. As from the inferences drawn from the regression analysis and conclusions drawn, the study recommended a regular audit on major HR practices as they are key factors that influence organization performance. The study was significant as it will be used by organization directors in formulating human resource policies and operational procedures that will work on improving performance.