Human Resource Management Bundles and Performance of Firms Listed on the Nairobi Securities Exchange, Kenya

Abstract

The objective of the study was to determine the effect of human resource management (HRM) bundles on the performance of firms listed on the Nairobi Securities Exchange (NSE) and a corresponding hypothesis was formulated and tested. The study targeted human resource managers of each of the 64 companies listed on the NSE as at December, 2014, and 34 of them responded. The study adopted a positivist research philosophy and a descriptive survey design. SPSS Version 21 was used to analyze data using regression analysis. The research findings from the test of hypothesis established that HRM bundles had a significant effect on firm performance. The research findings support the Ability-Motivation-Opportunity (AMO) Theory which underscores the crucial role of HRM bundles in firm performance. The study recommends further investigation of the study variables in other types of organizations such as learning institutions and non-governmental organizations.