The Adoption of Strategic Human Resource Management Practices in Commercial Banks: The Process and Challenges in Kenya

Abstract

Developing an effective human resource system that is compatible with organizational strategy is critical for the functioning and success of an organization in the competitive business arena. The main objectives of the study were to establish the extent of adoption of strategic human resource management practices among commercial banks in Kenya; and to determine the factors that influence adoption of strategic human resource management practices by commercial banks in Kenya. The research questions were systematically generated from the objectives. In the data analysis, descriptive statistics and factor analysis were used to help draw comparisons and conclusions based on the results. It was assumed in the data analysis that the results obtained were quite representative for the general population considering the sampled size. The conclusions of the study are based on the research questions leading to the main purpose of the study. First, a number of human resource practices can be used as strategic weapons for organization to remain competitive. The key strategic resources management practices can be broken into two components. The first component is post-entry/ on-the-job strategic human resources management practices, which include the implementation of chosen human resources management strategy. The second component is pre-entry strategic human resources management practices, which include the recognition of the individual roles of employees before they are employed, keen selection and development. Secondly, the factors that have discouraged the adoption of strategic human resource management practices by commercial banks in Kenya can be broken into three components. The first component is poor communication and decision making process, which include failure of union representatives and managers to meet often to discuss concerns and cooperate in finding solutions to human resources issues. The second component is poor planning on HR issues, which include the failure to cover employees by a non-traditional incentive pay plan which applies across shifts of workers. The third component is on poor job orientations which includes lack of extensive efforts to set clear expectations about required work behaviors of the new workers.