Human Resource Practices and Performance Contracting in the Petroleum Industry in Kenya: A Case Study of Vivo Energy Investment Mombasa

Abstract

The main objective of the research was to examine the human resource practices and performance contracting in the petroleum industry in Kenya. The research was done at vivo energy investment based in Mombasa County. The study was supported by Expectancy Theory and also McGregor’s theory X and Y. The research adopted a descriptive research design for data collection and analysis. The target population of the research was 300 staff of the Vivo Energy Investment Mombasa and the investigator targeted a sample size of 90 respondents which is 30% of the total respondents. . The questionnaire was used as the research instrument for data collection in the study and analyzed through descriptive data analysis tools like tables, figures, percentages and SPSS. The research also applied the regression analysis to establish the affiliation amid the dependent as well as the independent variables. The coefficient of determination implied that the set of independent variables in this study accounts for 52% of variations in the performance contracting in the petroleum industry. The remaining percentage (48%) is accounted for by other variables outside the model. The result indicates that knowledge and information regarding the independent variables provides a great proportion of information regarding performance contracting in the petroleum industry in Kenya. The study recommended that vivo energy investment ought to include in their individual rewards a real reward administration in lieu of safeguarding efficacy as well as impartiality in their reward system. Such a system must observe the diverse areas work fairly. Consequently, the employee, cleaners and the like must be handled just like the senior fiscal administrators during the rewarding. The study findings lead to concluding that employee training at vivo energy investment in Mombasa Kenya has a positive effect on employee recital of these establishments. The correlation between the independent variables (employee’s training, employee compensation, and performance appraisal and employee promotion) and the dependent variable (performance contracting) results shows that all are positive and significant. In particular, employee’s training is positively and significantly correlated (r=.033, p<.05). Similarly, employee compensation (r=.203, p<.05), performance appraisal (r=.075, p<.05), and employee promotion (r=.230, p<.05) are positively and significantly correlated with performance contracting. The businesses design training agendas in lieu of certifying that employee training requirements are constantly met via counseling, assemblies, and support workers’ exertions in refining their flaws. Efficacy as well as competence of worker’s training amongst employees at Vivo energy investment in Kenya contributes considerably to the employee recital at individual and therefore the organizational performance.