Factors Affecting Organizational Performance in the Manufacturing Sector: a Case Study of Bidco Africa
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FACTORS AFFECTING ORGANIZATIONAL PERFORMANCE IN THE MANUFACTURING SECTOR: A CASE STUDY OF BIDCO AFRICA LILIAN NYABUTO A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF MANAGEMENT AND LEADERSHIP IN PARTIAL FULFILMENT OF THE REQUIREMENT OF THE AWARD OF THE DEGREE OF BACHELOR OF MANAGEMENT AND LEADERSHIP AT THE MANAGEMENT UNIVERSITY OF AFRICA OCTOBER 2017 1 DECLARATION Declaration by the Student This research project is my original work and has not been presented to any other examination body. Name .LILIAN M. NYABUTO Sign.......................... Date...................................... ADM: BML/10/00333/1/2015 Declaration by the supervisor This research project has been submitted for examination with my approval as The Management University of Africa Supervisor. Name........................................ Sign........................................ Date........................... i DEDICATION This work is dedicated to My Family members for their love and support. ii ACKNOWLEDGEMENT This study is a result of support from several sources and I wish to acknowledge them all. First, great thanks to the Almighty God for the sustenance and strength He has accorded me to carry out this study. Secondly, thanks to my Family members for their love and moral support through the time of my studies. Special thanks to the Management University of Africa for giving me the opportunity to carry out this study. I also accord my sincere thanks to my supervisor David Kanyanjua for guidance and support to ensure that I carry out this study successfully. And much more, I give my sincere thanks to Bidco Africa for allowing me to carry out this study their organization. iii ABSTRACT The general objective of the study was to examine factors affecting organizational performance in the manufacturing sector in Kenya. The specific objectives of the study were to determine the effect of recruitment on organizational performance at Bidco Africa, to establish the effect of employee performance appraisal on organizational performance at Bidco Africa, to determine the extent to which training contribute to organizational performance at Bidco Africa and to assess the contribution of talent management on organizational performance at Bidco Africa. This study is of significance to Management of Bidco Africa, Researchers and Scholars. This study used a descriptive research design. The target population was 400 staff members from Bidco Africa out of which a stratified random sampling was applied to obtain a sample at least 25% of the population. Data collection was through questionnaires. The data was analyzed using qualitative and quantitative techniques. Qualitative methods involved content analysis and evaluation of text material. Quantitative methods involved the use of diagrams such as tables and charts.Findings indicated that the recruitment and selection process adopted improves performance in the organization especially where candidates are selected on the basis of their competency and qualification. Free and objective performance appraisal improves performance because when the management conducts individual assessments and evaluation the process gives feedback to employer/employee about their performance expectations. Training improves performance and efficiency. Good training analyses the needs before the actual process. From the findings relating to whether the company has recruitment and selection practices that attract best talents respondents ,the company has recruitment and selection practices that attract best talents to ensure that talents are identified and nurtured with a view of having them applied in various departments. For recruitment to be effective first candidates are selected on the basis of their competency and qualification. Secondly the organization should conduct recruitment following the correct procedure and that the organization use both internal and external recruitment.Performance appraisal should be conducted frequently and management should make sure that the employees are oriented on performance appraisal procedures. All staff should also be subjected to the appraisal system. The management should conduct individual assessments and evaluation and ensure that all managers are involved in the appraisal process.The company should support employee training and career progression and ensure that training opportunities to learn and grow exist at the company.Senior executives should spend significant amount of time devoted to managing talent management issues in the company. The researcher recommends that the study be extended to other organizations a part from Bidco Africa to identify other factors a part from those identified by this study. iv TABLE OF CONTENTS DECLARATION ............................................................................................................. i DEDICATION ............................................................................................................... ii ACKNOWLEDGEMENT ............................................................................................. iii ABSTRACT .................................................................................................................. iv TABLE OF CONTENTS .................................................................................................v LIST OF TABLES ............................................................................................................vii LIST OF FIGURES ....................................................................................................... ix ABBREVIATIONS AND ACRONYMS .........................................................................x OPERATIONAL DEFINITION OF TERMS ................................................................. xi CHAPTER ONE..............................................................................................................1 INTRODUCTION TO THE STUDY...............................................................................1 1.0 Introduction ...............................................................................................................1 1.1 Background of the Study ............................................................................................1 1.2 Statement of Problem .................................................................................................4 1.3 Objectives of the Study ..............................................................................................4 1.4 Research Questions ....................................................................................................5 1.5 Significance of the Study ...........................................................................................5 1.6 Scope of the Study .....................................................................................................5 1.7 Chapter Summary ......................................................................................................5 CHAPTER TWO .............................................................................................................6 LITERATURE REVIEW ................................................................................................6 2.0 Introduction ...............................................................................................................6 2.1Theoretical Literature Review .....................................................................................6 2.2 Empirical Literature Review .................................................................................... 10 2.3 Summary and Research Gaps ................................................................................... 18 2.4 Conceptual Framework ............................................................................................ 18 2.5 Operationalization of Research Variables…………………………………………...19 2.6 Chapter Summary .................................................................................................... 21 v CHAPTER THREE ....................................................................................................... 22 RESEARCH DESIGN AND METHODOLOGY ........................................................... 22 3.0 Introduction ............................................................................................................. 22 3.1 Research Design ...................................................................................................... 22 3.2 Target Population .................................................................................................... 22 3.3 Sample and Sampling Technique ............................................................................. 23 3.4 Data Collection Instruments ..................................................................................... 23 3.5 Pilot Study....................................................................................................................23 3.6 Data Collection Procedures ...................................................................................... 24 3.7 Data Analysis and presentation ................................................................................ 24 3.8 Ethical Considerations ............................................................................................. 24 3.9 Chapter summary ..................................................................................................... 25 CHAPTER FOUR ........................................................................................................