A Study on Collective Bargaining Agreement and the Performance of State Corporations in Kenya

Abstract

Collective bargaining agreements (CBA) are integral for any organizational growth and the country’s economic development. High levels of unrest have been observed in state corporations such as public universities, Nairobi water, Kenya Broadcasting Corporation, among others. The industrial actions seem unending since most of their solutions are temporary. To bring normalcy and improve organizational performance, employees need to be engaged all the time in productive work. The study sought to establish the determinants of collective bargaining agreement (CBA) on the performance of state corporations in Kenya. The specific objectives were four and included: to establish the influence of leadership; to determine the extent of economic factors; to evaluate employer policies; and to examine organizational structure as a determinant of collective bargaining agreement on the performance of State Corporations in Kenya. The researcher presented a broad literature review including theories on leadership, path-goal theory; theories on economic factors, efficiency wage theory; theories of employer policies, human relations theory; theories of organizational structure, alienation theory; and theories of performance, profit maximization theory; and through a conceptual framework. The study adopted descriptive survey with exploratory approach. The target population was all 187 state corporations in Kenya as of 27th April 2015. The unit of analysis was all the State Corporations while the unit of observation was the Heads of Human Resources in each corporation. The sample was 95 and primary data was collected using a self-administered questionnaire. Analysis used descriptive statistics comprising of mean, standard deviations, frequency distribution, percentages, factor analysis, correlation analysis, structural equation modeling and regression analysis; SPSS Version 24 was used. The study established that leadership, economic factors, employer policies and organizational culture had a significant and positive influence on the performance of state corporations in Kenya. The study concluded that all the variables were critical drivers of successful CBA. The study recommended that firm leaders should embrace employee involvement, apply the determinants and lead by example to promote employee performance. The study contributes to existing knowledge by pointing out the determinants of collective bargaining and how they singularly contribute to firm performance; to policy by exemplifying the main pillars of collective bargaining agreement as employer policies, organizational structure, economic factors and leadership; to theory by pointing out that the four determinants of collective bargaining agreement can best be explained by human relations theory, efficiency wage theory, path-goal theory as well as theory of alienation; to practice by pointing out that employer policy, organizational structure, economic factors and leadership have a statistical relationship with organizational performance hence when formulating collective bargaining agreement, both the employees and the management should put into consideration the structure of the firm, the economic factors, the leadership in place as well as the employer policies.