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knowledge, or skills in
various fields according to organizational needs. Managers and supervisors need
to be trained on basic leadership skills in order to enable them to function
effectively in their positions. The design of training programmes covers the
planning and creation of training and development programmes through the use of
systematic models, methods and processes of instruction system design.
According to Taylor (2002), training has a complementary role to play in
accelerating learning and conditional training model has a tendency to
emphasize subject – specific knowledge, rather than trying to build core
learning abilities.

 

2.3.3 Performance Management and
Employee Retention

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According to Pollard (2001)
effective performance management systems have a well -articulated process for
accomplishing evaluation activities with defined roles and timelines for both
managers and employees and that it is a process consisting of five steps as
follows:

 

Performance planning occurs
at the beginning of the performance management cycle and involves reviewing of the employees
performance expectations including both the behaviours
employees are expected to exhibit and the results they are expected to achieve
during the upcoming rating cycle), ongoing feedback (during performance
planning process, both behavioural and results expectations should have been
set. Performance in both areas should be discussed and feedback provided on an
ongoing basis throughout the rating period. Periodic feedback on day to day
accomplishments and contributions should be given.

A two way communication
should be adopted with joint responsibilities for both managers and employees),
Employee input (involves asking employees to provide self -ratings on performance
standards which are then compared with the manager’s ratings and then
discussed. The method most appropriate involves asking employees to prepare
statements of their key result areas at the end of the rating period,
Performance evaluation (competencies should be defined to reflect different
levels of responsibility, complexity and difficulty that characterize employees
job at different levels in the organization. A numerical rating on ranking
employees is required if performance information is to be used for decision
making) and Performance review (this is a recap of what has occurred throughout
the rating period. Development activities with employees should be done at this
review and any performance standard that is not being met agreed.

 

2.3.4 Employee commitment and Employee
Retention

According to Maheshwari
(2005), the implementation of human resource practices leads to enhanced
employee commitment. He suggested increased bonding and states need to reform
their human resource management practices in an effort geared towards increased
employee involvement and hence commitment. Smeenk (2006) examined the factors
affecting organizational commitment and found that issues like compensation,
training, career mobility, age organizational culture, working hours,
organizational tenure and social importance all affect the employees’
organizational commitment and hence overall performance.

 

Zhu (2007) gives that
various human resource management practices significantly determine
organizational commitment and that organizational commitment was affected by
person-organization fit, remuneration, recognition, and opportunities to
undertake challenging organizational assignments. Chan (2004) examined the
impact of human resource practices on organizational commitment and found that
training and career development was not significantly related to organizational
commitment and challenging assignments were not related with intention to stay.
Human resource management practices help the organization develop better human
resource development climate in the o

rganization.

 

2.4
Human Resource Policy framework for SACCOs in Kenya

Human resource policies are the formal rules and
guidelines that businesses put in place to hire, train, assess, and reward the
members of their workforce. These policies, when organized and disseminated in
an easily used form, can serve to preempt many misunderstandings between
employees and employers about their rights and obligations in the business
place. It is tempting, as a new small business owner, to focus on the concerns
of the business at hand, and put off the task of writing up a human resource
policy. All business analysts and employment lawyers will advise a new business
owner to get a policy down on paper, even if it is a simple one drafted from a
boilerplate model. Having policies written is important so that it is clear to
all what the policies are and that they are applied consistently and fairly
across the organization. Moreover, when issues concerning employee rights and
company policies come before federal and state courts, it is standard practice
to assume that the company’s human resource policies, whether written or
verbal, are a part of an employment contract between the employee and the
company. Without clearly written policies, the company is at a disadvantage (Raub & Streit, 2006).

 

Having a human resource policy in place from the
start can help to avoid this situation. The business owner who takes the time
to establish sound, comprehensive human resource policies will be far better
equipped to succeed over the long run than the business owner who deals with
each policy decision as it erupts. The latter ad hoc style is much more likely
to produce inconsistent, uninformed, and legally questionable decisions that
may cripple an otherwise prosperous business. For as many small business
consultants state, human resource policies that are inconsistently applied or
based on faulty or incomplete data will almost inevitably result in declines in
worker morale, deterioration in employee loyalty, and increased vulnerability
to legal penalties. To help ensure that personnel management policies are
applied fairly, business owners and consultants alike recommend that small
business enterprises produce and maintain a written record of its HR policies
and of instances in which those policies came into play (Zhu, 2007).

In Kenya, most SACCOs have
an existing human resource policy with a working human resource department. Human Resources is concerned with the issues of managing people in
the organization. The Human Resources department is responsible for many people
related issues in an organization. Under the HR department’s remit are the
following roles:• The process of recruiting suitable candidates for the
organization, identifying and meeting the training needs of existing staff, ensuring
employee welfare and employee relations are positive, ensure the working
environment is safe for employees and raising awareness of current workplace
legislation. These roles however they are partially implemented with few of the
SACCOs implementing or having a workable human resource policy hence the laxity
in effectively applying the human resource practices. This clearly indicates a
gap in the human resource policy framework for SACCOs in Kenya. There are policy
frameworks developed but their implementation has not been taken into account
rendering the process futile.  

2.4 Summary of Research Gaps

 The various human resource practices have been
looked at and their relationship to employee retention. It is very clear from
the theories discussed in this chapter and as raised by Tiwari (2012), that
Human resource practices is the source of achieving staff retention because of
its capacity to convert the other resources (money, machine, methods and
material ) into product or service. The competitor can imitate other resources
like technology and capital but the human resource are unique. Thus it can be
deduced that for an organization to retain its staff over its competitors it
must have in place unique best human resource practices in place which will
make it ahead of its competitors.

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