Antecedents of Selection in Service Oriented State Corporations in Kenya

Abstract

The government of Kenya has been struggling to cut down the wage bill that takes approximately 11 per cent of the gross domestic product (GDP) and 52 per cent of domestic revenues annually. For this reason, selection in the public service including all state corporations was frozen in 2013 and new measures were announced to curtail spending. The unemployment rate in Kenya stayed unchanged between 2010 (50%) and the corresponding quarter of 2012 (50.2%). Between 2013 to 2018 Public Service Commission (PSC) experienced a higher unemployment rate that increased from 56% to 70% leading to challenges in succession management as most senior employees are about to retire in public sectors. This study therefore sought to determine the antecedents that influence selection in the organization, with a specific reference to Service State Corporations in Kenya. The study was guided by the following specific objectives in relation to selection:-human resource qualifications, leadership style, legal framework, organizational culture and political influence on selection. The study was underpinned by human capital theory, situational theory of leadership, equity approach theory and the resource based view theory. The study employed a descriptive cross sectional type of research design that enabled investigation of the various factors that influence selection. The study targeted 154 executives of Service State Corporations in Kenya. A stratified random sampling technique was used to achieve desired representation. Data was collected using structured questionnaires. A pilot test was carried out to establish the validity and reliability of the questionnaire. Reliability of the survey questionnaire was calculated according to Cronbach’s alpha coefficient and in order to measure the validity of research, content validity was used. To analyze the collected data, descriptive and inferential statistics were used. Statistical software used was SPSS version 20. Results were presented using tables and pie charts. The findings of the study revealed a positive and significant relationship between human resource qualification and selection in Service State in Kenya (β=729, p=.000<.05). The results also showed a positive and significant relationship between leadership style and selection in Service State Corporation’s in Kenya (β=.696, p=000<.05) Similarly, the Study found a positive and significant relationship between legal framework and selection in Service State Corporations in Kenya (β=.872, p=000<.05). The study further found that there was positive and significant relationship between organizational culture and selection in Service State Corporations in Kenya (β=.796, p=000<.05). Regarding the moderating effect of political influence, the study found that political influence moderates the relationship between legal framework, organizational culture and selection in Service State Corporations in Kenya (p<.05). However, political influence does not moderate the relationship between human resource qualifications and leadership style on selection in Service State Corporations in Kenya. It was concluded that since Human resource qualification, legal framework and leadership style have significant positive influence on selection, then proper measures should be put in place on improving these factors for proper selection process to take place. The study recommends enacting policies that support strategic employee selection and skill management to boost retention in Kenyan state corporations. It concludes that HR qualifications significantly influence employee selection.