Abstract: Recent conceptual works have argued that a firm’s performance may not be directly linked to human resource management; but complementary or synergies, both among and between an organization’s human resource management practices and its competitive human resource strategy can have an additional and positive effect on performance. This study, therefore, focused on analyzing the moderating effect of a cost led human resource strategy on the relationship between human resource management and firm performance. The study adopted a cross sectional survey research design and corporate organizations comprised the target population. Data was collected using self-administered questionnaires and analyzed using statistical package for social sciences and Microsoft Excel. Hypothesis testing was done through multiple regression analysis, using standard F and t tests. The findings of the study indicated that a cost led human resource strategy had no significant moderating effect on the relationship between human resource management and firm performance of corporate organizations in Kenya. The research, therefore, concluded that the sampled organizations lay more emphasis on other aspects of their products but not the price and that irrespective of whether a cost led human resource strategy was being pursued or not, human resource management remained significant in influencing firm performance. The study recommends organizations should promote human resource practitioners to the strategic level, making them to be directly involved in critical decision making and business strategy formulation from the beginning stage. Organizations should also carefully consider the alignment among human resource management practices, as well as between the human resource management and the competitive human resource strategies adopted so that they support and supplement one another.
Keywords: Cost led human resource strategy, Human resource management, Performance.
Title: An Analysis of the Moderating Effect of a Cost led Human Resource Strategy on the Relationship between Human Resource Management and Firm Performance of Corporate Organizations in Kenya
Author: Esther Waiganjo
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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