i 

 

INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES 

ON EMPLOYEE PERFORMANCE:  CASE OF NANDI COUNTY 

GOVERNMENT,KENYA 

 

 

 

 

 

 

JEBITOK PAMELA 

 

 

 

 

A RESEARCH PROJECT  SUBMITTED TO THE SCHOOL OF 

BUSINESS & ECONOMICS IN PARTIAL FULFILMENT OF THE 

REQUIREMENTS FOR THE AWARD OF MASTERS DEGREE IN 

HUMAN RESOURCEMANAGEMENT 

 OF MOUNT KENYA UNIVERSITY 

 

 

 

JULY,2024 

 



 

ii 

 

DECLARATION AND APPROVAL 

 

Student’s Declaration 

I declare that this research project is my original work and has never been presented for a 

degree in any other university. 

 

Jebitok Pamela 

MBA/2022/49951 

 

Signed…  Date: 5/7/2024 

 

Supervisor’s Approval 

This research project has been presented for examination with my approval as the University 

Supervisor. 

Signed: …                           Date: 5/7/2024 

Dr. Ibrahim Nyaboga (PhD) 

Mount Kenya University  

 

 



 

iii 

 

DEDICATION 

I dedicate this project to my husband Mr.Edward Bungei and my son Blessing Kipchumba 

and daughter Joy Jemutai  for the support and encouragement they gave me during  my 

studies  may God Bless them all. 

  



 

iv 

 

ACKNOWLEDGEMENT 

First and foremost, I thank God for being kind to me and giving me strength and good health 

that enabled me to complete this research project. I sincerely acknowledge the mentorship, 

commitment, support, and tireless effort of my supervisors Dr. Mary Odenyo and Dr. Ibrahim 

Nyaboga for their instructive feedbacks that encouraged me to complete this work.  It is my 

pleasure to thank my Mum Margaret, My sisters, brothers and everyone who supported me in 

having this project work completed. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

v 

 

ABSTRACT 

There has been a considerable amount of empirical research on the relationship 

betweencertainHumanResourceManagementPracticesandbusinessperformance.The   purpose 

of the study was to investigate the Influence of Human Resource Management Practices on 

Employee Performance:  A case Study of Nandi County Government, Kenya. The study was  

guided by the following specific objectives which include to determine the  influence of 

Performance appraisal practices  on employee performance in Nandi County Government; to  

establish influence  of recruitment and selection practices on employee performance in Nandi 

County Government; ‘to determine  the  influence  of  Reward management systems on 

employee performance in  Nandi County Government and to  examine  the influence  of 

training  and development practice  on  employee performance in Nandi County Government. 

The research study adopted   a descriptive survey design. The population to be included in the 

study was 204 employees in Nandi County Government, Kenya. The sample size was 61. 

This study made use of structured interview; face to face interview was conducted. The data 

collected was coded and analysed using the Statistical Package for Social Sciences. It 

employed descriptive statistics which included frequencies and percentages. After this, the 

findings were presented by the use of tables in chapter four. Ethical issues in the research was 

taken care of by the researcher assuring the participants that information to be provided was 

used for purposes of research only and not to malign their integrity and interest in the 

business. Furthermore, the respondents were advised not to indicate their names anywhere on 

the questionnaires. The researcher concluded that, Performance appraisal practices played a 

pivotal role in enhancing employee performance. They provide a structured framework for 

recognizing and motivating employees, aligning individual goals with organizational 

objectives, and fostering a culture of continuous improvement. Additionally, performance 

appraisals are crucial for data-driven HR and management decisions. The researcher 

recommended that, the county government should invest in more comprehensive training and 

development programs for employees. This includes technical skills, leadership development, 

and soft skills training. Regular workshops, seminars, and e-learning opportunities should be 

provided to ensure that employees continuously improve their skills and knowledge. The 

recruitment and selection process should be further refined to ensure that it identifies 

candidates who not only have the required qualifications but also align with the county 

government's goals and values. Emphasis should be placed on competency-based assessments 

and structured interviews to make the process more robust. The performance appraisal 

process should be made more continuous and feedback-driven. Managers should engage in 

regular performance discussions with their subordinates, offering constructive feedback and 

recognizing accomplishments promptly. Performance appraisals should not be seen as a once-

a-year event but as an ongoing process. Implement a comprehensive reward and recognition 

program that acknowledges and appreciates outstanding employee contributions. This 

program should include monetary rewards, non-monetary incentives, and public recognition 

to motivate and engage employees. The researcher suggested, further studies should be done 

on Comparing the HRM practices and their impact on employee performance in the Nandi 

County Government with other counties or local governments in Kenya. This comparative 

approach should help identify best practices and areas for improvement. 

 

  



 

vi 

 

TABLE OF CONTENTS 

 

DECLARATION APPROVAL ................................................................................................. ii 

DEDICATION ......................................................................................................................... iii 

ACKNOWLEDGEMENT ........................................................................................................ iv 

ABSTRACT ............................................................................................................................... v 

TABLE OF CONTENTS .......................................................................................................... vi 

LIST OF TABLES ..................................................................................................................... x 

LIST OF FIGURES .................................................................................................................. xi 

LIST OF ABBREVIATIONS AND ACRONYMS................................................................. xii 

CHAPTER ONE ...................................................................................................................... 1 

INTRODUCTION OF THE STUDY ..................................................................................... 1 

1.0 Introduction .......................................................................................................................... 1 

1.1  Background of the Study ……………………………………………………………………………………………………………1 

1.2 Statement of the problem ..................................................................................................... 3 

1.3 Purpose of the Study ............................................................................................................ 3 

1.4 Specific Objectives .............................................................................................................. 4 

1.5 Research Questions ..............................................................................................................4 

1.6 Significance of the Study ..................................................................................................... 4 

1.7 Justification  of the Study  .................................................................................................... 6 

1.8  Scope of the Study .............................................................................................................. 6 

1.9  Limitation of the study ........................................................................................................ 6 

1.10 Delimitations ...................................................................................................................... 6 

1.11 Assumptions of the study ................................................................................................... 7 

1.12 Operational Definition of Key Terms ................................................................................ 8 

CHAPTER TWO ..................................................................................................................... 9 

LITERATURE REVIEW ........................................................................................................ 9 



 

vii 

 

2.0 Introduction .......................................................................................................................... 9 

2.1Theoretical Framework ......................................................................................................... 9 

2.1.1 Universalistic Perspective ................................................................................................. 9 

2.1.2 Resource Based Theory ....................................................................................................... 10 

2.2 Empirical Literature Review .............................................................................................. 14 

2.2.1 Performance appraisal practices  on employee performance .......................................... 14 

2.2.3  Training  and Development Practice  On  Employee Performance ............................... 27 

2.2.4 Reward Management Systems On Employee Performance ........................................... 33 

2.3 Conceptual Framework ...................................................................................................... 36 

2.4 Conceptual Framework ...................................................................................................... 37 

2.4 Gap Analysis ...................................................................................................................... 38 

CHAPTER THREE ...............................................................................................................40 

RESEARCH METHODOLOGY .........................................................................................40 

3.0 Introduction ........................................................................................................................40 

3.1 Research Design.................................................................................................................40 

3.2 Target Population ...............................................................................................................40 

3.4 Sampling procedure and sample size .................................................................................40 

3.4 Data Collection Document .................................................................................................42 

3.5 Questionnaires....................................................................................................................42 

3.5.1 Interview .........................................................................................................................42 

3.6 Validity and Reliability ......................................................................................................43 

3.6.1 Reliability ........................................................................................................................43 

3.6.2 Validity of Research Instruments....................................................................................43 

3.7 Data Collection Procedures................................................................................................44 

3.8 Method of data presentation and Analysis .........................................................................44 

3.9 Ethical Considerations .......................................................................................................44 

 



 

viii 

 

 

CHAPTER FOUR .................................................................................................................. 46 

RESEARCH FINDINGS, ANALYSIS AND PRESENTATION ...................................... 46 

4.1 Introduction ........................................................................................................................ 46 

4.2 Response Rate .................................................................................................................... 46 

4.3 Respondents Demographic Information ............................................................................ 46 

4.3.1 Age bracket ..................................................................................................................... 46 

4.3.2 Marital Status .................................................................................................................. 47 

4.3.3 Education level ................................................................................................................ 48 

4.4.4 Working Experience (Years) .......................................................................................... 49 

4.4 Descriptive statistics .......................................................................................................... 50 

4.4.1 Performance Appraisal Practices on Employee Performance ......................................... 50 

4.4.2 Recruitment and Selection Practices on Employee Performance ................................... 52 

4.4.3 Training and Development Practice On Employee Performance ................................... 54 

4.4.4 Reward Management Systems on Employee Performance ............................................ 56 

CHAPTER FIVE .................................................................................................................... 58 

SUMMARY, CONCLUSION, AND RECOMMEDATIONS ............................................ 58 

5.1 Introduction ........................................................................................................................ 58 

5.2 Summary of Findings ......................................................................................................... 58 

5.2.1 Performance Appraisal Practices on Employee Performance ......................................... 58 

5.2.2 Recruitment and Selection Practices on Employee Performance ................................... 59 

5.2.3 Training and Development Practice on Employee Performance .................................... 59 

5.3 Conclusion ......................................................................................................................... 60 

5.3 Recommendation ............................................................................................................... 61 

5.4  Suggestion for further Study ............................................................................................. 62 

REFERENCES ....................................................................................................................... 63 

APPENDICES ........................................................................................................................ 53 



 

ix 

 

Appendix I: Letter of Introduction ...................................................................................... 53 

APPENDIX  II: QUESTIONNAIRES .................................................................................54 

Appendix II: Informed Consent ........................................................................................... 59 

APPENDIX III: Authorization Letter from Mount Kenya University ............................ 60 

APPENDIX IV: RESEARCH PERMIT .............................................................................. 61 

APPENDIX V: WORK PLAN .............................................................................................. 62 

APPENDIX VI: ESTMATED RESEARCH BUDGET ...................................................... 63 

 

  



 

x 

 

LIST OF TABLES 

Table 3.1 Target Population       40 

Table 3.2 Sample size        41 

Table 3.2 Sample size        41 

Table  4.1 Age bracket       46 

Table 4.2 Marital Status       47 

Table 4.3 Education level       48 

Table 4.4 Working Experience (Years)     49 

Table 4.5 Performance Appraisal Practices on Employee Performance 50 

Table 4.6 Recruitment and Selection Practices on Employee Performance 52 

Table 4.7 Training and Development Practice On Employee Performance 54 

Table 4.8 Reward Management Systems on Employee Performance 56 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

xi 

 

LIST OF FIGURES 

Figure  2.1  Conceptual Framework ……………………………………………………21

      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

xii 

 

LIST OF ABBREVIATIONS AND ACRONYMS 

HoDs-   Head of Departments 

HR-  Human Resource  

HRMP:  Human  Resource Management Practices  

SPSS-   Statistical Package of Social Sciences 

 

 

 

 

 

 

 

 

 

 

 

 



 

1 
 

CHAPTER ONE 

INTRODUCTION OF THE STUDY 

1.0 Introduction 

This  chapter presents  the background  of  the study, statement  of the problems, ,purpose of  the  

study,  specific objective, research questions ,significance of the study ,scope of  the  study 

,limitation of  the  study ,delimitations ,assumptions of  the  study and operational definition terms. 

1.1 Background of the Study  

In South Africa studies have consistently shown that investing in employee training and development 

leads to improved job skills, knowledge, and overall performance. Well-designed training programs 

have been associated with higher productivity and job satisfaction. Effective performance appraisal 

systems, when properly implemented, provide employees with clear feedback on their performance, 

leading to increased motivation and productivity. Regular performance feedback helps employees 

align their goals with organizational objectives. A fair and competitive compensation package, along 

with appropriate rewards and recognition, can positively impact employee satisfaction and 

commitment to the organization. Employees are more likely to be motivated to perform well when 

they feel their efforts are appropriately recognized and rewarded. Studies have found a strong 

correlation between employee engagement and job performance. Engaged employees tend to be 

more committed to their work, show higher levels of productivity, and contribute positively to the 

overall work environment. Organizations that promote work-life balance through flexible working 

arrangements and supportive policies tend to have more satisfied and productive employees. A 

healthy work-life balance contributes to reduced burnout and improved well-being, which can 

positively influence job performance. Positive employee relations, effective communication 

channels, and a supportive work culture are associated with better employee morale and 

performance. When employees feel valued and supported, they are more likely to go the extra mile 

in their roles. Hiring the right candidates through effective recruitment and selection processes can 

have a significant impact on employee performance. Employees who possess the right skills, 

qualifications, and fit with the organization tend to perform better in their roles (Kinicki,2010). 

 In  Uganda the recent past, competition has been increasing due to flooded market in the business 

environment. The availability of both skilled and unskilled employees has positively contributed to 



 

2 
 

the growth of many organizations. The performance of the workers in almost all firms solely relies 

on the top management. Performance concern has therefore necessitated the management of many 

organizations to devise a mechanism of mitigating poor performance. This is the reason as to why 

many organizations have for instance adopted various critical stages that include: setting targets; 

enhancing communication between employer and employee; and monitoring specific performance of 

each individual relative to the expectations (Ndungu, 2016). It has become very important and 

complex to monitor individual and group work. 

In Kenya the idea that workers and the manner in which they are managed is important to the 

prosperity of a company giving business a competitive advantage has led to an increasing focus on 

human resource (Omolo, Oginda & Otengah, 2013). As a result of the intense business competition 

and unpredictable business atmosphere, organizations are expected to improve in their performance 

to align with such great expectations; in order to overcome many problems that may arise, including 

the risk of a bankruptcy. This performance associated to the company or individual level considers 

human resource as the most dependent factor to accomplish the firm’s goals.  

Human resource management has a sole aim of ensuring that the individual and overall performance 

of employees is maximized. Therefore companies need to come up with policies and practices to 

ensure employees utilize their skills to maximize their ability and performance at the place of work 

(Armstrong, 2005). Performance is a measure of employees’ effectiveness at work and is a crucial 

factor in making human resource decisions. Therefore, the failure or success of any organization is 

anchored on work performance of the persons in that organization.  

In Uasin  Gishu County, The performance of an employee is anchored on a list of elements; certainly 

there are workers that execute their work well because of their amounts of incentives. Some workers 

perform good due to the availability of good working environment and benefits that are encouraging. 



 

3 
 

It is important therefore, that organizations assess their human resources practices to see if they 

enhance employee productivity 

1.2 Statement of the problem 

Employees may become demotivated and less engaged if they perceive limited opportunities for 

growth within the organization. A flawed or inconsistent performance appraisal process can lead to 

dissatisfaction and reduced productivity among employees. Insufficient communication channels 

between management and employees can result in misunderstandings and reduced collaboration. 

Excessive workloads and inadequate work-life balance can lead to employee burnout and decreased 

efficiency. Employees who feel underappreciated for their efforts are less likely to be motivated and 

committed to their tasks. Becker and Huselid (2012) argue that selective employee procurement 

positively correlates to enhanced employee job performance. 

In Kenya has a HR department which mainly deals with payroll and training of their 

employees. This therefore puts the organization at an awkward position to deal with other 

aspects of HRMP which are crucial for employee job performance. A research done by Saira 

(2016) on a study in Pakistan Textile industry indicated that practices such as Compensation, 

Career development, employee evaluation, and employee engagement impact positively on 

performance of employees. Amendi (2015) did a descriptive survey research on the impact of 

HRM practices on performance of SACCO’s in Vihiga County, Kenya. The study found that 

most practices of HR lead to employee performance. Dimba and K’Óbonyo (2009), 

investigated impact of HRP on performance of organizations. Results revealed innovative 

employee resourcing and compensation practices correlate positively with performance.  

Human Resource Management practices on employee job performance at Nandi County 

Government, Kenya. The study seeks to address the research question on influence of human 

resource management practices on employee performance in Nandi County Government, 

Kenya which other researchers have but have tried to show the gap. 

1.3 Purpose of the Study 

The purpose of the study was to investigate the influence of human resource management practices 

on employee performance in   Nandi County Government, Kenya. 



 

4 
 

 

1.4 Specific Objectives 

The study was guided by the following specific objectives which include  

1. To determine the influence of Performance appraisal practices  on employee performance in 

Nandi County Government. 

2. To establish  influence   of recruitment and selection practices on employee performance in 

Nandi County Government. 

3. To assess the influence of Reward management systems on employee performance in Nandi 

County Government. 

4. To examine the influence of training and development practice on  employee performance in   

Nandi County Government. 

1.5 Research Questions 

The study was guided by the following research questions:  

1. What is the   influence of Performance appraisal practices on employee performance in Nandi 

County Government? 

2. What is the influence of recruitment and selection practices on employee performance in 

Nandi County Government?  

3. What  is the    influence  of  Reward management systems  on employee performance in  

Nandi County Government? 

4. What  is  the  influence  of training  and development practice  on  employee performance in   

Nandi County Government? 

1.6 Significance of the Study 

The study will give more insight to policy makers on human resource management practices 

and lay down policyframeworksandlegislationthroughwhichorganizationscanadoptthehuman 

resource  management  practices  in their quest to gain competitiveness. The findings will help 

Nandi County Government, Kenya to review policies on human resource management 



 

5 
 

practicesandtheirimpactonemployeeperformancesoasmaximizeperformance and increase 

competitive advantage. 

To scholars, it was broaden the existing literature besides adding more insight to the available 

knowledge as well as act as a source of literature for institutions of higher learning. 

The findings were also assisting the Kenyan government in formulation of guidelines and 

policies in the county sector and other government parastatals in adopting HRMP so as to 

enhance both employee and organizational performance. The government was able to realize 

the level to which HRMP influence employee job performance. 

1.7 Justification of the Study  

The performance of employees within the Nandi County Government directly impacts the 

organization's ability to fulfill its mandate of delivering essential services to its residents. 

Investigating the influence of HRM practices on employee performance is crucial for identifying 

strategies to enhance organizational effectiveness and service delivery. 

Despite the growing importance of HRM practices in organizational management, there is a lack of 

empirical research specifically focusing on the relationship between HRM practices and employee 

performance within county governments in Kenya, particularly in Nandi County. This study seeks to 

address this gap by providing insights into how HRM practices influence employee performance in 

the unique context of Nandi County Government. 

Findings from this study can inform evidence-based policy decisions and strategic interventions 

aimed at improving HRM practices and enhancing employee performance within Nandi County 

Government. By identifying effective HRM strategies tailored to the specific needs and challenges of 

the County, policymakers and administrators can implement targeted initiatives to optimize 

organizational performance and service delivery. 

Effective management of human resources is essential for achieving organizational objectives and 

fostering a conducive work environment. Understanding the influence of HRM practices on 

employee performance can enable Nandi County Government to adopt best practices in recruitment, 

training, performance appraisal, and employee relations, thereby enhancing overall organizational 

effectiveness and productivity. 



 

6 
 

This study contributes to the academic literature by providing empirical evidence on the relationship 

between HRM practices and employee performance in the public sector, particularly within county 

governments in Kenya. By advancing theoretical understanding and empirical knowledge in this 

field, the study adds to the body of literature on HRM practices and their impact on organizational 

performance. 

Improving employee performance within Nandi County Government can have broader implications 

for socio-economic development within the County. A more efficient and motivated workforce can 

lead to improved service delivery, increased citizen satisfaction, and ultimately, contribute to the 

overall development and prosperity of the region. 

1.8 Scope of the Study 

The geographical scope of this study was limited to Nandi County to investigate the influence of 

human resource management practices on employee performance .This study was carried  out  

during the months of  January 2023  to May 2023.The population to be included in the study was 204 

employees in Nandi County Government, Kenya. 

1.9 Limitation of the study 

The study took descriptive research approach which had a number of limitations. One of the 

limitations were that some of the respondents understand the questions and end up giving misleading 

information. To counter this challenge, the language that was used to set the questions was simple 

and direct to ensure that respondents misinterpret them. Getting the respondents to answer the 

question thoughtfully and honestly were another limitation in the study. However, the study gave a 

brief introduction of the study to sensitize respondents on the purpose of the study and how honesty 

it was crucial in getting the correct information. The respondents were also be required to write their 

names on the questionnaires. 

 

1.10 Delimitations 

The content scope of this study was limited to the following determinants of motivation; salary 

increase, bonuses, promotion and recognition. This is because these was the major factors identified 

by other studies as the major determinants of employee motivation. 

 



 

7 
 

1.11 Assumptions of the study 

This study assumed with an expectation that all respondents were expected to be honest, accurate and 

detailed in providing information. It was assumed that the data collections instruments answered the 

desired questions and that the sample was represent the population. 

  



 

8 
 

1.12 Operational Definition of Key Terms 

Human Resource Management the policies and practices required to perform the routines of 

human resources in an organization. 

Performance appraisal practices: refers a systematic and periodic process of measuring an 

individual's work performance against the established requirements of the job 

Recruitment and selection practices: Employee selection methods are criteria for choosing an 

optimal candidate for a particular job position. 

Reward management practices: refers to a strategic approach to incentivizing your workforce to 

improve performance, engagement and morale. 

Training practices: It refers to a type of learning intervention that can improve workplace 

performance and facilitate the introduction of new job responsibilities by improving workers' 

knowledge, skills and behaviors. 

  



 

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CHAPTER TWO 

LITERATURE REVIEW 

2.0 Introduction 

This chapter covered the theories that underpin the study, empirical literature, conceptual framework 

and summary of the literature review. 

2.1 Theoretical Framework  

2.1.1 Universalistic Perspective 

Researchers in the universalistic approach posit that some set of HRP are always superior to 

others and firms ought to embrace these practices to improve their performance. Best 

practices are appropriate for all organizations regardless of size, industry, or business strategy 

(Arthur, 1994; Delery & Doty, 1996). Researchers stress that internal fit and alignment of 

human resource practices helps to produce a considerable improvement of an organization’s 

performance. The proponents of the universalistic model such as Pfeffer (1994, 1998) and 

Huselid (1996) have highlighted a number of best practices that comprise the best practice 

bundles that go along with performance. Delery and Doty (1996) recognized seven ‘best 

practices’ which include career development opportunities, official training structures, 

evaluation procedures, proceeds distribution, employment security, right to be heard means, 

and occupation description. The human resource management practices are assumed to help 

a firm develop its human resources cost benefits, encourage operating efficiency, boost 

innovation and enhance organizational performance (Dyer, 1985). 

 

The universalistic theory implies there are some best HRM practices that contribute to 

enhanced performance of an organization. Although many scholars agree with this 

assumption of Best HRMP there has been little concurrence as to what constitutes the ‘best 

practice’, which seems to undermine this approach in some way. Certain inconsistencies have 

arisen from the universalistic model such as researchers use different practices when 

examining best practices. 

In the context of the study of the influence of human resource management practices, the 

Universalistic Perspective theory can be applied to understand how certain HR practices can 

influence employee outcomes across different organizations. For example, the theory suggests 



 

10 
 

that practices such as performance appraisal, training and development, and compensation can 

have a positive impact on employee performance and motivation, regardless of the 

organization in which they are implemented. 

 

Researchers studying the influence of human resource management practices can use the 

Universalistic Perspective theory to identify which practices are most effective in achieving 

desired outcomes and to develop best practices that can be applied across different 

organizations. By identifying universal practices, researchers can help organizations improve 

their HR management practices and ultimately enhance their overall performance (Doty, 

1996). 

 

2.1.2 Resource Based Theory 

The resource based view provides an explanation of how the human resources of an 

organization contribute to enhanced performance and competitiveness. It recommends that the 

competitive edge arises from the internal resources within an organization reach. Wright et al. 

(2001) alleges that these resources must be valuable, rare, inimitable and non- substitutable in 

order to lead to competitive edge. When the human capital within an organization meet the 

criteria of valuability, rarity, inimitability and non substutability they contribute to 

competitiveness of the organization by having resources that cannot be imitated by 

competitors.This view found that HR practices or HR systems could easily be replicated by 

other firms whilst the knowledge skills and abilities possessed by individuals within a firm 

(human resources) would be harder to imitate. This view focuses on the unique resources an 

organization possess and explains why the rarity, inimitability, non substutability and 

valuability of the human resources might lead to a sustained competitive niche, thus leading 

to enhanced organizational performance. with its focus on the internal resources possessed by 

a firm has given the field a theoretical understanding of why human resource systems might 

lead to sustained competitive advantage that cause a better firm performance. It further 

contends that the HR systems can be easily imitated but the resources are hard to imitate as 

they differ and are unique in their own way. However, RBV has been criticized for not having 

looked beyond the properties of resources to explain sustained competitive advantage. In 

particular, it has not examined the extent to which an employee becomes a resource. 



 

11 
 

 

In the context of the influence of human resource management practices, the Resource-Based Theory 

can be applied to understand how a firm's human resources can contribute to its competitive 

advantage. Specifically, the theory suggests that HR practices can be used to develop and maintain 

valuable human resources that are difficult for competitors to imitate or substitute.For example, HR 

practices such as training and development, performance appraisal, and compensation can be used to 

develop and maintain a skilled and motivated workforce that is capable of achieving the firm's 

strategic goals. By investing in these practices, a firm can develop a unique set of human resources 

that is difficult for competitors to imitate, leading to a sustainable competitive advantage.Researchers 

studying the influence of human resource management practices can use the Resource-Based Theory 

to identify which HR practices are most effective in developing and maintaining valuable human 

resources. By doing so, they can help firms develop and implement HR practices that provide a 

sustainable competitive advantage and ultimately enhance their overall performance (Wright et 

al,2001). 

It has been demonstrated that merit-based performance reviews increase employee zeal and 

dedication, which has a significant effect on organizational performance (Kidombo, 2018). An 

organization's ability to succeed depends on its employees' willingness to take on increased 

responsibility (Schroeder, 2003). Employee satisfaction reduces turnover and absenteeism. The 

ongoing assessment of workers' conduct and performance is one facet of performance management. 

Workers need to know precisely what is expected of them as well as the standard by which their 

efforts and results are assessed (Jackson, 2018). In order to facilitate a shared evaluation of workers' 

work, pinpoint areas in need of improvement, and determine what training and development needs 

were, a structured and methodical approach for performance reviews was put in place. In particular, 

future performance of employees can be enhanced via an efficient appraisal procedure (Burney & 

Widener, 2008). The assessment plan can also function as the basis for a poll regarding intended 

career progression and monetary rewards. According to the research, worker assessment and 

performance management, as well as organizational performance, are logically and strongly 

correlated (Hundley, 2008). The association has a far better chance of actually accomplishing its 

objectives when all tiers of management are operating in unison. Moreover, this guarantees that each 



 

12 
 

association member is aware of their responsibilities and what is essential to the group (Michael, 

2019).  

 

2.1.3 Expectancy theory 

Expectancy theory was developed by Victor H. Vroom in 1964 through his study of the 

motivations. According to Torrington et al (2011), advocates of expectancy theory holds that 

the behavior of individual employee is dependent on the expected reward. Thus employees 

will work harder when they believe that their effort will be rewarded with something they 

value. 

 

Vroom's expectancy theory believes that there is positive correlation between the effort 

employed, and performance supported by presence of the right resources, right skills as well 

as the necessary support to get the job done. Performance appraisal is rooted in the 

expectancy theory which submits that without an effective appraisal system, it is quite 

challenging to rate performance (either as good or poor), ensure equitable allocation of 

rewards, share desired work expectations and promote expected performance outcomes 

(Adams, 1963). 

In the context of the influence of human resource management practices, the Expectancy 

Theory can be applied to understand how HR practices can influence employee motivation 

and behavior. Specifically, the theory suggests that HR practices can influence employee 

motivation by shaping their perception of the outcomes of their behavior, the effort required 

to achieve those outcomes, and the likelihood of achieving those outcomes (Torrington et al, 

2011), 

The theory has been applied in almost all organizations and basically in all aspects of 

employment relationships. However, it is mainly used in employee performance monitoring, 

analyzing outcomes of training against the expected organizational performance outcomes, 

as well as other processes which include but not limited to targeted recruitment and selection 

of employees. The theory is also used to identify employees’ motivators and also interpret 

specific behaviours (Lee, 2018; Nsofor, 2009). 

(Nsofor ,2009) studied the influence of Expectancy Theory on employees' performance in 

https://onlinelibrary.wiley.com/doi/full/10.1111/j.1467-6486.2010.00937.x#b1


 

13 
 

Lagos State and found out that the theory has a role to play as an employee motivator tool. 

However, he cautions managers and advises them to be alert when applying the Expectancy 

theory of performance management since motivators differ from one employee to another. 

To succeed, therefore, they should endeavour to understand what motivates each of the 

employees and provide it in order to create a positive influence. This includes both physical 

rewards and building of positive character. 

Porter and Lawler (1968) developed their expectancy model based on Victor Vroom's 

Expectancy theory. As they developed their expectancy theory, they contended that the 

simplicity of Vroom's model made it misleading, therefore they added more factors. Since 

staff productivity is correlated with motivating initiatives, they criticized it as being 

misleading. This claim can only be true, though, if the employee connects the reward to a 

particular need in their own life (Graen, 2019). 

Graen (1969), Porter and Lawler (1968), Lawler and Porter (1967), and Lawler (1971) were 

among the authors who challenged the expectation theory for being overly simplistic. A 

number of critics, including Lawler (1971), were prompted by the criticism to begin 

modifying Vroom's model. They did so by based it on the following four arguments: 

whenever employees are presented with a range of outcomes, they will always have 

preferences; every individual believes that their efforts will result in the desired outcomes; 

every individual behavior produces the desired outcomes; and as a result, each person's 

actions are determined by their expectations and preferred outcomes. Vroom himself agreed 

with some of the criticisms made by other writers, who suggested that the theory should be 

broadened to include the conclusions and suggestions of more research (Jackson, 2016). 

 

This theory is relevant to this study as it helps managers understand what individuals in an 

organization want, value and expect from the organization and thus they are able to provide 

them in order to reap maximum benefits in terms of employee outcomes. The theory is also 

applicable because it explains how some work-system elements such as extensive training, 

fair performance appraisal or job rotation practices can cause the individuals in an 

organization to behave in a desired manner. Specifically, they lead to motivation of 

employees; hence they focus their efforts towards improving their performance for benefit 

of entire organization. 



 

14 
 

Vroom's expectation theory holds that performance and effort are positively correlated when 

the right tools, people, and support are available to complete the task at hand. Performance 

evaluation is based on the expectancy theory, which states that it is difficult to rate 

performance (as good or poor), guarantee a fair distribution of rewards, communicate 

desired work expectations, and encourage expected performance outcomes in the absence of 

an efficient appraisal system (Adams, 1963). 

Using the Expectancy Theory, one can comprehend how HR procedures affect employee 

motivation and behavior in the context of human resource management. The idea posits that 

HR practices have the potential to impact employee motivation by molding their 

understanding of the consequences of their actions, the amount of work necessary to attain 

those consequences, and the probability of obtaining those results (Torrington et al, 2011), 

Almost every type of organization and nearly every facet of work relationships has made use 

of this principle. It is mostly utilized, therefore, for targeted hiring and personnel selection, 

as well as other activities like evaluating training results versus anticipated organizational 

performance outcomes and employee performance monitoring. According to Lee (2018) and 

Nsofor (2009), the theory is also utilized to determine the motivators of employees and to 

understand particular behaviors. 

 

The idea can be used as a tool to motivate employees, according to a 2009 study by Nsofor 

in Lagos State that examined the impact of expectation theory on worker performance. 

Though motivators vary from employee to employee, he warns managers and counsels them 

to exercise caution when implementing the Expectancy theory of performance management. 

So that they may have a positive impact, they should try to find out what drives each 

individual and deliver that to them. Both material benefits and the development of virtue are 

included in this. 

 

2.2 Empirical Literature Review 

2.2.1 Performance appraisal practices  on employee performance 

The greatest asset in nearly all organizations is their human resource. These surpass in value 

and in importance than physical assets i.e. building, land, equipment and vehicles. (Anstey 

et al., 2017) To enable organizations achieve competitive advantage over competitors 



 

15 
 

globally, employees play a very critical role (Oaya et al., (2017). Employees' performance 

determines company's success, conducting employee performance appraisal ought to be 

done appropriately and regularly in order to improve quality of work, reduce employee 

dissatisfaction and decline in work performance. (Shrestha, S. & Chalidabhongse, J., 2016). 

 

(Obeidat et al., 2014) Performance appraisal plays a role that is valuable in employee 

training and development and can be used to identify and initiate the process of providing 

relevant training and development in their study. Mwema and Gacunga (2014), found out 

that performance appraisal enables identification of training needs for staff and accordingly 

organization is able to provide the required training thus helping employees achieve their 

performance targets. 

Belcourt et al, (2002) examined that the main purpose for training is to help the organization 

achieve its goals. In addition training programs should be established with a focus on 

organizational goals and strategies. Most organizations emphasize on capacity building 

programmes to the employees as a critical human resource management practice towards 

employees commitment. 

Eliphas et al., (2017) using recognition, feedback, and training and development as 

performance appraisal tools found out that productivity in the organization is mainly 

influenced by recognition and feedback while training and development does not play a 

critical role. 

Merit-based performance appraisals have been shown to boost employee enthusiasm and 

commitment, which has a major impact on organizational performance (Kidombo, 2018). 

Employee willingness to take on more responsibilities is crucial to an organization's success 

(Schroeder, 2003). Employee satisfaction lowers absenteeism and turnover. One aspect of 

performance management is the constant evaluation of employees' performance and 

behavior. Employees must understand exactly what is expected of them as well as the 

benchmark by which their work and outcomes are evaluated (Jackson, 2018).  

 

An organized and systematic process for performance reviews was implemented to enable a 

common assessment of employees' work, identify areas for improvement, and identify 

training and development requirements. Specifically, an effective appraisal process can 



 

16 
 

improve employees' performance going forward (Burney & Widener, 2008). The evaluation 

plan can also serve as the foundation for a survey on planned career advancement and 

financial incentives. The research showed that there is a logical and strong relationship 

between worker appraisal and performance management as well as organizational 

performance (Hundley, 2008). When all levels of management are in sync with one another, 

the association's chances of really achieving its goals are greatly increased. Furthermore, this 

ensures that every member of the association understands what is expected of them and what 

is crucial for the association (Michael, 2019)  

 

Global economy has forced organizations in public sector to emphasize on transparency, 

accountability and efficiency to enhance productivity. (Bouckaert & Halligan, 2016; 

O’Toole & Meier, 2015). One key factor to staff performance is organization goal 

achievement and for employees to be considered successful, they are expected to achieve 

their performance goals. (Campbell, 2019). According to Armstrong (2019) managing 

performance is the means of getting better results within an agreed certain time period while 

upholding the organization standards and competency. McDougall and Levesque (2019) 

elucidates that poor or ineffective, service delivery will result to loss of confidence by the 

customers who becomes dissatisfied and end up seeking for alternatives. Performance 

appraisal is widespread and it is potentially a crucial instrument for organizations to make 

the most of their employees. (Armstrong and Baron, 2005) While performance appraisal is 

applied to a cross section of employees and in different levels, at times they are seen as 

merely administrative in nature, quite mechanical, ineffective and serve little or no purpose 

towards improvement of employee performance as reported by (Torrington et al., 2011). 

Critiques argue that performance appraisal is not a very reliable tool to measure employee 

and organizational performance. That notwithstanding, performance appraisal system is 

considered efficient enough and seem to be achieving good results for organizations. (Dauda 

& Luki, 2021). 

Eliphas et al., (2017) did a study on the influence of performance appraisal practices on 

employee productivity. The study focused on three aspects; recognition, feedback, and 

training and development. The findings of the study revealed that productivity in 

organizations is mainly influenced by recognition and feedback while training and 



 

17 
 

development does not play a critical role. 

Riego and Lapuz (2020) using descriptive-correlation research design carried out their 

study in an academic institution in Philippines where they examined the relationship 

between management style, performance appraisal, and employee development of selected 

personnel. The study found out that there was a low-moderate positive relationship between 

management style, performance appraisal and employee development. 

Supervisor, peer, and self-evaluation—in which employees assess themselves and other 

employees with similar job rankings—are among the steps included in the performance 

appraisal process, according to Dubrin (2018). Due to the great significance placed on the 

customer, several appraisal tools incorporate the customer appraisal component. Moreover, 

they assert that performance evaluations should emphasize the advantages and 

disadvantages of employees, aid in identifying great performers, and provide them the 

opportunity to strengthen their areas of weakness. Enhancing staff development and 

performance is the aim of all these programs (Schuler, 2017).Businesses that place a high 

priority on punishment and discipline in their performance appraisal processes for 

compliance and conformity may not get the full benefits of these essential HRM strategies, 

claim Benson et al. (2020). This is because such managerial practices will lead to a decrease 

in confidence and mistrust. If evaluation results are not used effectively, employees may get 

less confident in the process because they will think that management lacks faith in it 

(Hegar, 2016). Therefore, it is imperative that performance assessments uphold employees' 

trust, be viewed as fair, and focus on the employee's total well-being, including growth and 

rewarding positive achievements, according to Kampkötter (2016). 

The employee performance appraisal makes productivity and performance enhancement 

possible. Appraisals are used to determine a candidate's strengths, shortcomings, and talents 

as well as to make decisions on promotions (Hegar, 2016). A performance appraisal's main 

goal is to confirm that an employee is operating at the anticipated levels and in accordance 

with all relevant laws and regulations (Schuler, 2017). Numerous academics have 

investigated the effect of performance reviews on employee performance. Through a 

comprehensive review of the literature, Jackson (2018) discovered that performance 

appraisals directly lead to performance improvement. 

Huselid's (2017) study, which looked at whether performance evaluations at NHIF head 



 

18 
 

offices led to improved performance, found a positive association between worker 

performance and reviews. A study conducted at Kenyan colleges on the effect of 

performance reviews on employee productivity found that these reviews increase individual 

productivity, which raises the performance of the overall company (Hundley, 2008). 

Performance reviews were found to have a positive impact on employees' propensity for 

innovation and problem-solving among 166 workers in Spanish industrial enterprises. The 

good behavior leads to better performance (Ghebregiorgis, 2017). However, the 

performance appraisal may not have the desired effect of raising performance because of the 

weak rapport between the assessor and the appraised employee (Lin & Kellough, 2018). 

Employee performance is improved when the evaluated individuals perceive a successful 

performance review positively. 

Hee and Jing (2018) using questionnaire to collect data from 161 employees carried out a 

study on the influence of human resource management practices on employee performance 

in the manufacturing sector in Malaysia. The study focused on the following human 

resource management practices; compensation and benefits, work-life policies, performance 

appraisal and training and development to examine their relationship on employee 

performance. According to the multiple regression analysis, performance appraisal and 

training and development were significantly related to employee performance. 

2.2.2  Recruitment and selection practices on employee performance 

Globally, recruitment is one of the core areas of human resource management. The success or failure 

of the recruitment practices has a significant impact on the organization’s growth and the process 

should be consistent with the organizational strategy, vision and values. According to Armstrong 

(2010) the current labor market is making it more difficult for organizations to find, recruit and select 

talented people. The competition for talent is intensifying, as there are fewer qualified applicants 

available. The shortage of applicants makes it all the more important for organization to be able to 

effectively attract, select and maintain quality candidates. Effective recruitment and selection 

strategies result in improved organization outcome, hence the more effectively organizations recruit 

and select candidates, the more likely they are to hire and retain satisfied employees, and 

Recruitment is the process of finding and attracting capable applicants for employment. People and 

their collective skills, abilities and experience, coupled with their ability to deploy these in the 

interests of the employing organization, are now recognized as making a significant contribution to 



 

19 
 

organizational success and also constitution a significant source of competitive advantage 

(Armstrong & Boron 2002). This is the premise in the human capital theory. It underlines that people 

possess innate abilities, behavior and personal energy and these elements make up the human capital 

they bring to their work. It is indeed the knowledge, skills and abilities of individuals that create 

value. Individuals generate, retain and use knowledge and skill (human capital) creating intellectual 

capital. The human capital theory considers people as assets and stresses that investment in people 

by organizations will bring worthwhile returns. 

 

Recruitment begins with identifying the need for new hires and involves a series of steps, including 

job analysis, advertising, and attracting candidates. Organizations may use internal recruitment, 

promoting existing employees, or external recruitment, attracting candidates from outside the 

organization(Mangham and Silver 2009. Each method has its advantages: internal recruitment boosts 

employee morale and reduces training time, while external recruitment brings fresh perspectives and 

skills. The selection process involves screening candidates, conducting interviews, and using various 

assessment tools to determine the best fit for the job. Effective selection practices, such as structured 

interviews and psychometric testing, help ensure that the chosen candidates possess the required 

competencies and align with the organizational culture. The impact of these practices on employee 

performance is profound. Properly recruited and selected employees tend to perform better, are more 

engaged, and contribute positively to organizational goals. Conversely, poor recruitment and 

selection can lead to high turnover, low morale, and decreased productivity. Therefore, investing in 

robust recruitment and selection processes is essential for enhancing employee performance and 

achieving long-term organizational success. 

 

Armstrong points out that the human capital theory is closely linked to the Resource 

Based View (RBV) of firms by Barney, (1991). In Africa, several key Human Resources 

Management Practices have been employed in recent times by different SME business and 

organizations due to growing awareness of the key importance of the role played by employees in 

the success of all business. The efficiency and effectiveness of business depends largely on the 

human resources employed by an organization. The availability of competent and efficient labour 

force does not happen by gambling but through an articulated recruitment exercise (Peretomode and 

Premotomede, 2001). SME business goes beyond just the sales of products, as such product market 



 

20 
 

based competitive advantages are inadequate to guarantee business success in the business industry, 

due to the fact that SME product are based on the sales of combinations of provision of physiological 

and psychological product to their customer (Ofobruku 2013). 

 

In Uganda however, underlying the achievement of very successful business and products are the 

strong presents of the acquisition and development of strong and efficient pools of skilled 

employees, these has necessitated the inclusion of skill-based competition in most industries in 

Uganda (Klein, Egbe and Kass 2011), again it is worthy of note that from most of the recent studies 

and experiences, rest on employee as instrument to the organizational effectiveness as it involve the 

competence used skills of employee that will influence or secured organization investment in human 

and material capital (Mangham and Silver 2009). Based on the above the need to identify employee 

skills that underpin SME business organization performance cannot be overemphasized, if those 

underling skill, knowledge and attitude have been identified, recruitment and selection process 

becomes presently the only known way to ensure that the applicant with the requisite skills and 

qualities are successfully attracted to the SME business or organizations.  

Theoretically, the Resource Based View theory suggests that sustainable competitive advantage is 

attainable when firms have a human resource pool which cannot be imitated or substituted by rivals 

and firms would constantly evaluate their workforce to ensure that they have the right people with 

the right skills in the right places to ensure sustained competitive advantage, (Barney, 2001). A 

major part of any firms’ strength or weakness stem from the caliber of the people employed and the 

quality of their working relationships. Identifying what is most valuable and protecting it with 

“Barriers to imitation” is at the heart of resource based thinking. Firms which recruit and retain 

exceptional individuals have the capability of generating human capital advantage, Catano et aL, 

(2010) stress that, employers must aspire to hire applicant who possess the knowledge, skills abilities 

or other attributes (KSAOs) required to successfully performing the job most effectively. 

 

Conceptually, Bratton and Gold, (2007) defined Recruitment as the overall process of attracting, 

selecting and appointing suitable candidates for jobs within an organization Ryan and Derous, (2013) 

asserted that, recruitment and selection can play a pivotally important role in shaping an 

organization’s effectiveness and performance, if work organizations are able to acquire workers who 

already possess relevant knowledge, skills and aptitudes and are able to make an accurate prediction 



 

21 
 

regarding their future abilities. Recruitment and selection also has an important role to play in 

ensuring worker performance and positive organizational outcomes (Ballantyne, 2009). 

 

According to (Storey, 2015), Selection is the process of choosing the most suitable candidate for the 

vacant position in the organization. In other words, selection means weeding out unsuitable 

applicants and selecting those individuals with prerequisite qualifications and capabilities to fill the 

jobs in the organization. 

The general theories of recruitment, as emphasized by Cole (2002), Armstrong (2008), and Dessler 

(2006), place pressure on the recruitment team to foster an organizational culture that supports high 

performance because they identify the necessity for employees to have a fit-in culture in order to 

thrive in a new work environment. Organizations should target their recruitment efforts toward 

particular positions that need to be filled. In the contemporary global setting, these tactics include 

print and electronic media advertisements, agencies and services, forums for schools and 

colleges/universities, professional groups, and internal resources. Each strategy will result in specific 

employees who perform differently. (2016, Abbott).  

According to Ahmad (2011), behavior-based interviews are a standard procedure used by most firms 

during the hiring process. These interviews have the potential to be somewhat more predictive of an 

employee's future performance than, say, situational interviews. According to Nwabuzor and 

Amendi (2015), the theory of recruiting is a collection of academic research on the best ways to 

convince people to apply for jobs. Generally speaking, expanding the application pool will provide 

employers more chances to choose the best candidates for open positions. "Fit" is a factor that both 

parties involved in the application process should and do consider. Research by Armstrong (2018) 

indicates that candidates will be drawn to the company to the degree that they believe it to be a good 

fit for them, a concept known as "person-organization (P-O) "fit" in the literature. Prospective 

candidates 

based on their knowledge of the employer's culture, determine the potential P-O fit in the first 

instance.  

Any management process revolves around recruitment, and a company's inability to succeed in this 

area may face more challenges in the road, such as reduced profitability and inadequate staffing or 

skill levels (Baron, 2018). Bennett (2015) notes that selection can be understood as either selecting 

the candidates who are deemed "fit" or rejecting the applicants, or as combining the two. The 



 

22 
 

selection method correctly assumes that there are more applicants than there are positions available 

(Prasad, 2005). The main idea behind the selection process is to gather as much information as you 

can about the candidates in order to determine whether or not they are qualified for the position, 

while keeping in mind that there are several aspects that may influence how much information is 

gathered.  

According to Kirkpatrick (2011), the requirement for organizations, whether in the public or private 

sector, to produce goods and services effectively and efficiently has made it more important than 

ever to obtain and manage competent human resources, which are an organization's most valuable 

asset. Thus, effective methods for hiring and choosing employees can lead to higher labor 

productivity, which can help a company achieve its objectives. Scholars have concurred that one of 

the primary obstacles to an organization's performance in the performance domain is its incapacity to 

implement strategies that can attract and retain qualified personnel in order to accomplish 

organizational objectives (Gberevbie, 2008). Among the tactics that can aid in hiring are techniques 

for attractiveness. Employer branding and employer of choice programs are two tactics for attracting 

talent that, according to Armstrong (2010), aid an organization in luring in workers who can make a 

substantial impact on its success. Current developments in recruitment tactics also include the usage 

of e-recruitment, or online recruitment. E-recruitment, or online recruitment, uses web-based tools to 

assist attract, advertise, screen, and track applications, choose, and offer employment to candidates 

or reject them (Armstrong, 2010). The usage of social media, placement agencies, and employee 

referral programs are further recruitment tactics that can assist businesses in their focused hiring. 

Recruitment should, in the opinion of (Gberevbie, 2010), be based on suitable educational 

credentials, skills, and experience, even within the framework of equal regional and gender 

representation. This can serve as a foundation for increased labor productivity. A correlation was 

found between an organization's performance and its recruitment approach for employees in a study 

on organizational behavior by McOliver (2005). Armstrong notes that Barney's Resource Based 

View (RBV) of organizations and the human capital theory are closely related (1991). Due to a rising 

understanding of the critical role that employees play in the success of every business, some 

important HRM practices have been implemented recently in Africa by various SME businesses and 

organizations. The human resources a company uses have a significant impact on its efficacy and 

efficiency. Competent and effective labor is not randomly available; rather, it is the result of a well-

thought-out recruitment process (Peretomode and Premotomede, 2001). Since SME products are 



 

23 
 

based on the sales of combinations of providing physiological and psychological products to their 

customers, they go beyond simple product sales. According to Ofobruku (2013), product market-

based competitive advantages are insufficient to ensure business success in the business industry. 

 

However, the foundation of very successful businesses and products in Uganda is the acquisition and 

development of strong and efficient pools of skilled workers, which has made skill-based 

competition necessary in most Ugandan industries (Klein, Egbe, and Kass 2011). It is also important 

to note that the majority of recent studies and experiences point to employees as the key to 

organizational effectiveness because it involves the use of their competencies, which in turn 

influences or secures the organization's investment in human and material capital (Mangham and 

Silver 2009). As a result of the aforementioned, it is imperative that the employee skills that support 

the performance of SMEs be identified. Once these underlying skills, knowledge, and attitude have 

been identified, the recruitment and selection process is currently the only known means of ensuring 

that the applicant with the necessary skills and qualities is successfully attracted to the SMEs.  

According to the Resource Based View theory, firms can achieve sustainable competitive advantage 

if they have a pool of human resources that their competitors cannot duplicate or replace. They can 

also maintain a sustained competitive advantage by regularly assessing their workforce to make sure 

the right people are employed in the right positions. (Barney, 2001). The quality of working 

relationships and employee caliber play a significant role in a firm's strength or weakness. Resource-

based thinking rests on determining what is most important and safeguarding it via "Barriers to 

imitation." Employers who successfully acquire and retain exceptional personnel can gain a 

competitive edge in the human capital market. Catano et al. (2010) emphasize that employers should 

strive to select candidates who have the knowledge, skills, abilities, or other attributes (KSAOs) 

necessary for carrying out the job in the most efficient and effective manner. 

 

Recruitment is conceptually defined by Bratton and Gold (2007) as the complete process of 

attracting, choosing, and assigning qualified applicants to positions inside a company. According to 

Ryan and Derous (2013), if employers are able to hire employees who already have the necessary 

knowledge, skills, and aptitudes and who can accurately predict their future abilities, recruitment and 

selection processes can have a significant impact on how effectively and successfully an organization 



 

24 
 

performs. In order to guarantee employee performance and favorable organizational outcomes, 

recruitment and selection are equally crucial (Ballantyne, 2009). 

 

(Storey, 2015) defines selection as the process of selecting the best applicant for a position that has 

to be filled in an organization. Stated differently, selection refers to the process of eliminating 

applicants who are deemed unfit and choosing those who possess the necessary skills and credentials 

to occupy open positions inside the company. 

The general theories of recruitment, which highlight the importance of fit-in cultures for employees 

to succeed in a new work environment, put pressure on the recruitment team to cultivate an 

organizational culture that supports high performance (Cole, 2002; Armstrong, 2008; Dessler, 2006). 

Employers should concentrate their hiring efforts on specific roles that require filling. These 

strategies are used in the modern, global environment in print and electronic media ads, agencies and 

services, forums for colleges and universities, professional associations, and internal resources. 

Every approach will produce particular personnel with distinct performance profiles. Abbott, 2016.  

As per Ahmad's (2011) report, behavior-based interviews are a customary practice employed by the 

majority of companies in their employment process. Compared to situational interviews, for 

example, these interviews may be a little more indicative of an employee's future success. The theory 

of recruiting, according to Nwabuzor and Amendi (2015), is a compilation of scholarly studies on the 

most effective approaches to persuade people to apply for jobs. In general, companies will have more 

opportunities to select the most qualified applicants for available positions if the pool of applications 

is increased. Both applicants and the other stakeholders involved in the process should and do take 

"fit" into consideration. According to Armstrong's (2018) research, candidates are lured to a 

company based on how well they think it fits them; this idea is referred to in the literature as 

"person-organization (P-O) "fit." First, prospective candidates assess the possible P-O fit based on 

their familiarity with the company culture.  

Recruitment is the foundation of any management process, and a business that struggles in this area 

now may have further difficulties later on, including decreased profitability and insufficient 

workforce or skill levels (Baron, 2018). Bennett (2015) points out that the process of selection can be 

interpreted as a combination of rejecting applications and choosing the candidates who are judged 

"fit" or as both. According to Prasad (2005), the selection process appropriately considers that there 

are more candidates than there are open posts. While there are a number of factors that could affect 



 

25 
 

the amount of information acquired, the basic goal of the selection process is to learn as much as you 

can about the candidates in order to assess whether or not they are qualified for the role.  

According to Kirkpatrick (2011), obtaining and managing competent human resources—an 

organization's most valuable asset—is more crucial than ever due to the need for organizations, 

whether in the public or private sector, to create goods and services successfully and efficiently. 

Thus, efficient hiring and selection procedures can result in increased labor productivity, which can 

aid a business in reaching its goals. Academics generally agree that one of the biggest challenges 

facing an organization in the performance domain is its inability to put strategies into place that can 

draw in and keep talented employees in order to meet organizational goals (Gberevbie, 2008). 

Aesthetic strategies are among the tools that can help with recruitment. According to Armstrong 

(2010), employer branding and employer of choice initiatives are two strategies for drawing in talent 

that help a company attract employees who can have a significant impact on its performance. The 

use of e-recruitment, or online recruitment, is another recent advancement in recruitment strategies. 

Web-based technologies are used in e-recruitment, also known as online recruiting, to help recruit, 

publicize, screen, and track applications, choose, and either accept or reject job offers from 

candidates (Armstrong, 2010). Using placement agencies, employee referral programs, and social 

media are other recruitment strategies that can help organizations hire with focus. 

According to (Gberevbie, 2010), hiring decisions should be made based on candidates' appropriate 

educational backgrounds, experience, and skills—even while taking into account gender and regional 

parity. This could be the starting point for higher worker productivity. In a study on organizational 

behavior, McOliver (2005) discovered a relationship between an organization's hiring practices and 

its performance. The studies found that the base for the subpar performance of Nigerian employees 

of State enterprises was issues with nepotism, favoritism, political consideration, and the national 

character principle in employee recruitment. An analogous problem exists in Kenya, where hiring 

personnel for the Kenyan Civil Service requires adherence to a national character concept due to the 

country's multiethnic, multireligious, and multicultural society.According to (Ondrack, 2019), 

requiring national character to be considered for hiring, appointment, or promotion discriminates 

against talent and is consequently unjust to some parts of the nation while benefiting others. The 

result is the hiring of inept personnel into the public sector, which leads to subpar performance. 

explains how using assessment centers, which use a variety of methods to more accurately predict 

prospective applicants' future performance, can help to improve the recruiting and selection process. 



 

26 
 

Other modern techniques that can aid in improving recruiting choices include the use of selection 

exams, such as psychometric exams, which can offer an impartial way to evaluate a candidate's skills 

or qualities. This can support the proper person-job and person-organization fit, which are essential 

components of labor productivity. 

According to (Mansour,2010), there is a positive correlation between labor productivity and human 

resource recruitment and selection because businesses that employ a selective recruiting process 

make sure that the proper candidates are hired who are qualified and skilled for the job. A person 

should fit both the job and the organization when they are properly recruited and selected, according 

to Sekiguchi (2004). This will make it easier to make sure that a person's skills and the requirements 

of a position, as well as the person and the company, match. In order to ensure labor productivity, 

these two fits are essential. 

 

According to a 2015 Construction Industry Development Board report on labor and working 

conditions in South Africa, 54% of survey participants said their organizations had no formal 

procedures in place for hiring unskilled and semi-skilled labor. In the sector, it's common practice to 

use word-of-mouth marketing, with current employees inviting their friends and family along. On the 

other hand, when employees have expertise working on the same sites, they are "poached" from 

other businesses. Workers attested to this when they said that, as mentioned below, their primary 

sources of employment are informal recruitment processes and personal connections. Word of mouth 

is the most popular approach to hiring. 

 

As noted by (Byars, 2017), there are various techniques that can be used to evaluate a candidate's 

suitability for a certain position. These techniques include of one-on-one interviews, panels of 

interviews, selection boards, and assessment centers. Organizations adopting recruitment processes 

may encounter major implementation challenges even with a carefully thought-out plan for 

recruitment and selection as well as the participation of a qualified management team. Therefore, 

theories of human resource management (HRM) may offer insights into the most effective 

recruitment strategies; but, businesses will need to apply general theories within particular 

organizational contexts using their internal management talents. 



 

27 
 

2.2.3  Training  and Development Practice  On  Employee Performance 

Organizations are facing increased competition due to globalization, changes in technology, political 

and economic environments (Evans, Pucik & Barsoux 2002, 32) and therefore prompting these 

organizations to train their employees as one of the ways to prepare them to adjust to the increases 

above and thus enhance their performance. It is important to not ignore the prevailing evidence on 

growth of knowledge in the business corporate world in the last decade. This growth has not only 

been brought about by improvements in technology nor a combination of factors of production but 

increased efforts towards development of organizational human resources. It is ,therefore , in every 

organizations responsibility to enhance the job performance of the employees and certainly 

implementation of training  and development is one of the major steps that most companies need to 

achieve this. As is evident that employees are a crucial resource, it is important to optimize the 

contribution of employees to the company aims and goals as a means of sustaining effective 

performance. This therefore calls for managers to ensure an adequate supply of staff that is 

technically and socially competent and capable of career development into specialist departments or 

management positions (Afshan, Sobia, Kamran & Nasir 2012, 646).  

 

The question that may arise in many instances is why human resources are important. Bearing in 

mind that human resources are the intellectual property of the firm, employees prove to be a good 

source of gaining competitive advantage (Houger 2006), and training is the only way of developing 

organizational intellectual property through building employees competencies. In order to succeed. 

Organizations have to obtain and utilize human resources effectively. Organizations ,therefore, need 

to design its human resource mananagement in ways that fit into the organization’s structure as this it 

will make the organizations achieve their goals and objectives. Moreover, it is also important for 

organizations to assist their workforce in obtaining the necessary skills needed and, increase 

commitment. The management of human resources in Africa in general and Uganda in particular is 

rather challenging as most organizations have difficulties finding proper human resources. This may 

partly be a result of the different kinds of problems, for example, political instability, corruption, 

bureaucracy, poor infrastructure, low levels of education and purchasing power, diseases and famine 

known to prevail in the African business context (Kamoche 2002, 994 – 995).  

Effective training and development programs start with a needs assessment to identify skill gaps and 

areas for improvement. These programs can include on-the-job training, workshops, seminars, e-



 

28 
 

learning, and mentorship. By providing employees with opportunities to upgrade their skills and 

knowledge, organizations can ensure that their workforce remains competitive and adaptable to 

changing business environments. Training helps employees perform their current jobs more 

efficiently, reduces errors, and increases productivity((Murage, 2015).. Development initiatives, such 

as leadership training and succession planning, prepare employees for higher responsibilities, 

fostering a culture of continuous improvement and career growth. The impact on employee 

performance is significant; well-trained employees are more competent, confident, and motivated. 

They are better equipped to handle job challenges and contribute to the organization’s objectives. 

Moreover, investment in training and development signals to employees that the organization values 

their growth, leading to higher job satisfaction and retention. In contrast, the lack of training 

opportunities can result in skill stagnation, decreased performance, and higher turnover rates. 

Therefore, a strategic approach to training and development is essential for boosting employee 

performance, fostering innovation, and achieving sustainable organizational success. 

Nadler (1984:1.16) noted that all the human resource development activities are meant to either 

improve performance on the present job of the individual, train new skills for new job or new 

position in the future and general growth for both individuals and organization so as to be able to 

meet organization’s current and future objectives. There are broadly two different methods that 

organizations may choose from for training and developing skills of its employees. These are on-the-

job training given to organizational employees while conducting their regular work at the same 

working venues and off-the-job training involves taking employees away from their usual work 

environments and therefore all concentration is left out to the training. Examples of the on-the-job 

training include but are not limited to job rotations and transfers, coaching and/or mentoring. On the 

other hand, off-the-job training examples include conferences, role playing, and many more as 

explained below in detail. Armstrong (1995) 

Argues that on-the-job training may consist of teaching or coaching by more experienced people or 

trainers at the desk or at the bench. Different organizations are motivated to take on different training 

methods for a number of reasons for example; (1) depending on the organization’s strategy, goals 

and resources available, (2) depending on the needs identified at the time, and (2) the target group to 

be trained which may include among others individual workers, groups, teams, department or the 

entire organization.Different training methods have been implemented by organizations to meet the 



 

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demands of specific employee groups. These include, among others, induction training for recently 

hired employees of the company, coaching or mentoring to help employees fit in or prepare for 

future roles in the workplace, improving a technical aspect of their work (like reacting to a new 

technological development at work), developing skills, or getting ready for future career 

opportunities.  

Training initiatives must be carried out methodically in order to be successful. This indicates that a 

need or gap found during the training needs assessment is being addressed by the training. 

Assessments of training needs compare the employees' abilities and competencies to the skills and 

competencies needed to do a particular job. The most effective way to close the skills and 

competency gap depends on it (Murage, 2015). 

Training techniques utilized in any organization for a specific group of employees have an effect on 

employee performance, despite the fact that training is highly valued.The growth of the organization 

is influenced by several dynamic elements. Consequently, staff training is essential for adjusting to 

environmental changes such new laws and technology (McDuffie, 2006). This argument suggests 

that there is a discernible difference between companies who provide staff training and those that do 

not. The body of research suggests that staff performance and training and development are related. 

In order to determine the correlation between employee performance and training, (Afroz, 2018) 

employed a sample of fourteen Bangladeshi banks. She proved that skill development for employees 

led to higher productivity and effectiveness when carrying out given activities. There is a correlation 

between employee work performance and training, according to a study conducted by Atan (2015) to 

determine the relationship between SMEs' performance and training in Malaysia. 

Opportunities for growth and training play a significant role in determining a person's career. In the 

hiring process, training-related aspects are assessed. (Murage, 2015) discovered a favorable 

correlation between organizational commitment and workplace training. From the perspective of the 

employee, the training they receive has a major impact on how satisfied they are at work and how 

much they value their jobs and training. From an internal perspective, employees see training as a 

means of improving their performance and helping them to be more satisfied themselves, which in 

turn makes them better able to provide customer satisfaction.  



 

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Employee training demonstrates the employer's strong commitment to its workforce and its 

appreciation of its workers. Schmidt (2004) discovered that the components of job training and the 

amount of time spent in training determined a substantial relationship to employee performance on 

the job in his study on the relationship between workplace training and overall job performance. 

Since an employee's ability to do work depends on their level of expertise, the quality of their 

training has the biggest impact on their performance (Mugenda, 2013).  

Training affects performance since it establishes whether an individual will continue with the task at 

hand or, if not completed well, lose it entirely. Employee unhappiness is frequently caused by a lack 

of fundamental abilities for the work. It is evident that they struggle to complete tasks, and as a 

result, the discrepancy between their performance expectations and skill level prevents people from 

feeling satisfied in their work. (Murage, 2015) makes the point that before any training is conducted, 

a needs analysis that is completely inclusive of all employees must be completed. Specifically, 

(Kirkpatrick, 2015) points out that in order to prevent talent loss that could impair the performance 

of other employees as well as the organization as a whole, personnel must be trained and developed 

inclusively.  

One of the developments in most businesses is the teaching and training programs for lifelong adult 

learning that are offered by higher education systems (Foley, 2004). Given the quickly evolving 

socioeconomic landscape of today, it is well acknowledged how important it is to have developed 

competencies and abilities (Gove, 2012). In the last ten years, new trends in education have surfaced, 

with an emphasis on staff development and training in addition to quickening the pace of knowledge-

based economic growth (Jackson, 2018). The secret to staff development and the accomplishment of 

organizational objectives is the optimization of human resources through the reformation and 

upgrading of their expertise (Kidombo, 2017).But in order to remain in line with contemporary 

innovations in education, the cohabitation of inherently diverse human capital necessitates the 

creation of particular programs, particularly for adult and other non-traditional learners (Kiptis, 

2014).  

Planning an organization's human resources has been seen as its most effective tool for success, and 

developing and educating staff members is one of the key components of efficient resource 

management (Nelson & Wei, 2012). Training and development that produces a highly productive 

workforce is required to get a competitive edge in offering the finest services to clients (Hyz & 



 

31 
 

Pappas, 2005). Therefore, in order to consistently increase their output, new professionals could need 

the same. On the other hand, some could require it for a particular objective, like creating a new 

service. in an environment with less development. People require training even more since they 

cannot execute a job effectively if it becomes drudgery (Kiptis, 2014).  

Training and development must be seen as an essential component of the organization's core strategy 

rather than an as-needed operational concern in order to preserve the organization's human resource 

base (Rowley, 2001). Therefore, a lack of training and development leads to a person's inability to 

use their existing knowledge, which impairs their ability to provide effective services, lowers their 

level of client satisfaction, and ultimately lowers their productivity. The breadth, depth, and demands 

of their work are understood by well-trained and developed individuals, who may also add 

professional building blocks to their resumes as they advance in their careers. Thus, 

organizational/staff development and human resource planning depend heavily on training and 

development. 

Even though training is highly appreciated, the methods used in any firm for a particular group of 

employees have an impact on employee performance.A number of dynamic factors impact the 

organization's growth. As a result, staff training is crucial for assisting in the adaptation of new 

legislation and technologies as well as other environmental changes (McDuffie, 2006). This 

argument makes the case that businesses that offer employee training differ noticeably from those 

that don't. A substantial amount of research indicates a relationship between employee performance 

and training and development. To ascertain the relationship between training and employee 

performance, a sample of fourteen Bangladeshi banks was used by (Afroz, 2018). She provided 

evidence that when workers developed their skills, they were more productive and effective at 

completing tasks. A study by Atan (2015) to ascertain the relationship between SMEs' performance 

and training in Malaysia found that there is a correlation between employee job performance and 

training. 

A person's career is mostly determined by their opportunities for training and growth. Aspects 

pertaining to training are evaluated during the employment process. (Murage, 2015) found that 

workplace training and organizational commitment were positively correlated. From the viewpoint 

of the employee, the training they obtain significantly influences their level of job satisfaction and 

their appreciation of their training and positions. From an internal standpoint, staff members view 



 

32 
 

training as a way to enhance their output and increase their personal satisfaction, both of which 

improve their capacity to satisfy clients.  

Employee appreciation and strong dedication to the workforce are demonstrated by the business 

through employee training. Schmidt (2004) found that in his study on the relationship between 

workplace training and overall job performance, the elements of job training and the length of time 

spent in training indicated a significant relationship to employee success on the job. According to 

Mugenda (2013), an employee's performance is mostly influenced by the quality of their training, as 

their level of competence determines their ability to perform.  

Performance is impacted by training since it determines whether a person will stick with the activity 

at hand or, if not, give up on it completely. A lack of basic skills for the job is often the root of 

employee dissatisfaction. It is clear that individuals have difficulty finishing assignments, and as a 

result, people are unable to feel content with their work due to the mismatch between their 

performance goals and ability level. According to (Murage, 2015), a needs analysis that fully 

considers the needs of every employee must be finished prior to any training taking place. In 

particular, Kirkpatrick (2015) emphasizes that inclusive training and development of workers is 

necessary to minimize talent loss, which could negatively impact the performance of other 

employees and the organization as a whole.  

The teaching and training programs for lifelong adult learning that higher education systems offer 

are one of the improvements that most firms have adopted (Foley, 2004). It is widely known how 

crucial it is to have established competences and abilities given the rapidly changing socioeconomic 

landscape of today (Gove, 2012). Over the past decade, there have been emerging trends in 

education that prioritize staff development and training, while also increasing the rate of knowledge-

based economic growth (Jackson, 2018). The utilization of human resources through the reformation 

and upgrading of their knowledge is the key to staff development and the achievement of 

organizational objectives (Kidombo, 2017).However, the coexistence of naturally different human 

capital demands the development of specific programs in order to stay in step with modern 

developments in education, especially for adult and other non-traditional learners (Kiptis, 2014).  

 

 



 

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2.2.4 Reward Management Systems On Employee Performance 

Armstrong (2010) explain that reward management is concerned with the formulation and 

implementation of strategies and policies, aimed at rewarding people fairly, equitably and 

consistently in accordance with their value to the organization and thus help the organization to 

achieve its strategic goals. It deals with the design, implementation and maintenance of reward 

systems (reward processes, practices and procedures) that aim to meet the needs of both the 

organization and its stakeholders.  

Reward management practice is one of the strategies used by human resource managers for attracting 

and retaining suitable employees as well as facilitating them to improve their performance. Therefore 

human resource managers must design reward structures that facilitate the organizations strategic 

goals and the goals of individual employees (Maund 2011). Fundamental purpose is to provide 

positive consequences for contributions to desired performance (Wilson, 2013). Reward practices 

include; salaries and wages, awards and other forms of recognition, promotions, reassignments, and 

non-monetary bonuses like vacations or simple appreciations (Kotelnikov 2010). Gerhart and Rynes 

(2013) explain that reward relates to pay, both fixed in the form of salaries and wages, and variable 

through schemes such as incentives and bonuses. Reward management practices have been 

conceptualized through the use of the ratio of base salary to short term bonus payments (Eisenhardt 

2018; Bloom and Milkovich 2008). Others scholars have widened this simple ratio to examine the 

proportion of base pay to cash compensation, including short and long term incentives (Tremblay et 

al 2003; Burke and Hsieh 2006). Others have used the closely related area of bonus to cash 

compensation (Gomez-Mejia et al 2007; Elvira 2011).  

The aggregate of financial and non-financial rewards that any employer offers are thus meant to 

attract, retain and elicit reciprocal performance of its employees. This aggregate has been described 

as the new pay (Schuster and Zingheim 2012) or total rewards. (Armstrong 2017) first defined as 

consisting of compensation, benefits and the work experience, with the latter component including 

acknowledgement, balance (of work and personal life), culture, learning and development as well as 

the work environment. The latest consists of five components; compensation, benefits, work-life, 

performance and recognition, development and career opportunities (World at Work 2017). 

In many organizations, reward management has been seen to be a vital instrument in employee 

performance (Guest, 2002). A well rewarded employee feels that they are valued by the company. 



 

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Such employees are encouraged to work harder and better if they are aware that their well-being is 

taken seriously by their employers, and that their career and self-development are also being honed 

and taken care of by their company. Employees are the engine of organization vehicles while reward 

is the fuel. No organization can achieve its stated objectives without its employees. Akerele, (2011) 

blamed the productivity of many employees on several factors; employer’s failure to provide 

adequate compensation for hard work. Markova and Ford (2011) mentions that the real success of 

companies originate from employees’ willingness to use their creativity, abilities and know-how in 

favour of the company and it is organization’s task to encourage and nourish these positive employee 

inputs by putting effective reward practices in place.  

 

The importance of rewarded employees is very significant towards employee performance among 

many companies (Lotta, 2012). Well rewarded employees are more productive, more efficient and 

more willing to work towards organizational goals than the employees who are experiencing low 

levels of rewards (Hun