AN EVALUATION ON THE EFFECT OF HUMAN RESOURCE PLANNING

PRACTICES ON ORGANIZATIONAL PERFORMANCE: A CASE OF BRITISH

AMERICAN TOBACCO COMPANY LTD. MIGORI COUNTY

ADHIAMBO MILDRED O.

A Research Project Submitted to the Board of Undergraduate Studies in Partial Fulfilment

of the Requirement of the Award of Diploma in Human Resource Management, School of

Business and Economics, Kisii University

NOVEMBER, 2017

DECLARATION AND RECOMMENDATION

DECLARATION

I declare that this Research Project is my original work and has not been presented for

examination in any other institution of higher learning or University for Diploma or Degree.

…………………………………. …………………………. Signature Date

Adhiambo Mildred O.

CB04/10745/14

RECOMMENDATION

This Research Project has been submitted for examination with my approval as university

supervisor.

…………………………………. …………………………. Signature Date

Mr. Justine Onyoni

Lecturer, School of Business and Economics

Kisii University

ii

DEDICATION

This Research Project is dedicated to my lovely parents and siblings for providing me with

financial and moral support at various stages. I would also to dedicate this Research Project

Kenya Relief Organization for their support in my education

iii

ACKNOWLEDGEMENT

I would like to express my appreciation for the support, advice and guidance I received from my

supervisor Mr. Justine Onyoni of Kisii University. I thank him dearly for the time he devoted to

this study and the guidance he provided in the final preparation of this Research Project. I would

like to thank Kisii University for providing me with the learning facilities that facilitated the

success of this Research Project. Last but not least I would like to acknowledge the efforts put by

my colleagues for the support they offered me through this period.

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ABSTRACT

The general objective of this study was to evaluate the effect of human resource planning

practices on organizational performance. The specific objectives of the study was to find out the

effect of job analysis on performance of B.A.T company Ltd., to determine the effect of

employees demand and supply forecasting on performance of B.A.T company Ltd. and to

establish the effect of employees retention planning on performance of B.A.T company Ltd.

Descriptive research design was used in collecting data from the respondents. The target

population of the study was 100 employees from B.T.A Company ltd. Stratified random

sampling procedure was used to select a sample size of 30 employees which was 30% of target

population. Questionnaire was used as tool in collecting data. Reliability of the instrument was

ensured by test retest method while validity of the instrument was ensured by seeking expert

opinion of University supervisor. Collected data was analyzed by use of weighted average and

percentages then presented inform of frequency tables and charts. The study found that, the

company regularly use job analysis questionnaire. Job analysis in the company increases

completive advantage of the company. Demand for product and services is the major factor

considered by B.A.T company Ltd in Migori in employees demand forecasting and internal

promotion is the major factor considered by the company in employees supply forecasting.

Employees demand supply forecasting the company in meeting current and future personnel

needs. Attractive compensation package is the major determinant for effective employees

retention planning in the company. Support for personal and professional development is the

major factor affecting retention planning in the company. Retention planning in the company

increases competitive advantage of the company. The researcher concluded that job analysis,

demand supply forecasting and employees retention planning affect organization performance. It

was recommended that, there is need for the companies to have well documented human

resource plans as well as mechanisms to operationalize them. There is need for top management

to be sensitized on the potential influence of human resource planning and organizational

performance to win their commitment and support. There is need for the companies to develop

career development guidelines and have each and every employee develop meaningful individual

accountability plans clearly outlining their objectives and their career aspirations in line with the

guidelines.

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TABLE OF CONTENT

DECLARATION AND RECOMMENDATION.........................................................................ii

DECLARATION...........................................................................................................................ii

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

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

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

LIST OF FIGURES......................................................................................................................ix

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

ACRONYMS/ ABBREVIATIONS..............................................................................................xi

CHAPTER ONE

INTRODUCTION.........................................................................................................................1

1.1 Background of the Study.......................................................................................................1

1.2 Statement of the Problem.......................................................................................................2

1.3 Objectives of the Study..........................................................................................................3

1.4 Research Questions................................................................................................................3

1.5 Significance of the Study.......................................................................................................4

1.6 Scope of the Study.................................................................................................................4

1.7 Limitations of the Study........................................................................................................4

1.8 Assumptions of the Study......................................................................................................4

1.9. Operational Definition of Terms...........................................................................................5

CHAPTER TWO

LITERATURE REVIEW..............................................................................................................6

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2.1. Concept of Human Resource Planning.................................................................................6

2.2. Theoretical Review...............................................................................................................7

2.2.1 Human capital theory.........................................................................................................7

2.2.2 Resource based Theory......................................................................................................8

2.3 Empirical Review..................................................................................................................9

2.3.1Effect of Job Analysis on Organizational Performance......................................................9

2.3.2 Effect of Employees Demand Supply Forecasting on Organization Performance..........11

2.3.3 Effect of Employees Retention Planning on Organization Performance.........................12

2.4 Conceptual Framework........................................................................................................14

CHAPTER THREE

RESEARCH METHODOLOGY...............................................................................................15

3.1. Research Design.................................................................................................................15

3.2. Study Area..........................................................................................................................15

3.3. Target Population................................................................................................................15

3.4. Sample size and Sampling Procedures...............................................................................15

3.5 Data Collection and Procedure............................................................................................16

3.6. Instrumentation...................................................................................................................16

3.6.1. Reliability of the Instrument...........................................................................................16

3.6.2. Validity of the Instrument................................................................................................16

3.7 Data Analysis and Presentation...........................................................................................17

CHAPTER FOUR

DATA ANALYSIS, DISCUSSION AND PRESENTATION....................................................18

4.1 Response Rate......................................................................................................................18

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4.2 Demographic Characteristics of Respondents.....................................................................19

4.2.1Age Analysis.....................................................................................................................19

4.2.3 Educational Level.............................................................................................................19

4.2.3 Duration of Service..........................................................................................................20

4.3 Job analysis..........................................................................................................................21

4.4 Employees Demand Supply Forecasting.............................................................................23

4.5 Employees Retention Planning............................................................................................26

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS.....................29

5.1 Summary of Findings..........................................................................................................29

5.2 Conclusion...........................................................................................................................29

5.3 Recommendations................................................................................................................30

5.4 Suggestions for Further Studies...........................................................................................30

REFFERENCE............................................................................................................................31

APPENDICES..............................................................................................................................33

APPENDIX I: LETTER OF INTRODUCTION......................................................................33

APPENDIX II: QUESTIONNAIRE..........................................................................................34

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LIST OF FIGURESFigure 2.1: Conceptual Framework……………………………………………………………..14

Figure 4.1: Duration of Service…………………………………………………………………20

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LIST OF TABLES

Table 3.1Target Population and Sample Size .…………………………………………………16

Table 4.1: Response Rate………………………………………………………………………18

Table 4.2: Age Categorization of Respondents………………………………………………...19

Table4.3: Level of Education…………………………………………………………………..19

Table 4.4: Regular use of job analysis technique……………………………………………….21

Table 4.5: Effect of job analysis on organization performance………………………………...22

Table 4.6: Factor considered in employees demand forecasting ………………………………23

Table 4.7: Factor considered in employees supply forecasting ………………………………..24

Table 4.8: Effect of employee demand supply forecasting on organizational performance…....25

Table 4.9: Major determinants of effective employees retention plan…………………………26

Table 4.10: Factors influencing employees retention plan……………………………………..27

Table 4.11: Effect of employees retention planning on organization performance…………….28

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ACRONYMS/ ABBREVIATIONSBAT: British American Tobacco

GNL: Government Newfoundland Labrador

HR: Human Resource

HRM: Human Resource Management

HRP: Human Resource Planning

IEA: Institute of Economic Affairs

IT: Information Technology

NMS: National Manpower Survey

SWOT: Strength Weakness Opportunity Threats

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CHAPTER ONE

INTRODUCTION

1.1 Background of the StudyKeeping in view the concurrent situation, organizations are in search of solutions which not only

take them out of perplexing circumstances that are particularly concerned while dealing with

human resources but also make them come by competitive advantage over others if not more.

Human resource planning here comes into play and results in ultimate organizational

performance. Many eminent academicians and researches came up with their own perspectives

while defining human resource planning and its ramifications (Speamerfam, G., 2011). Similarly

Walker (2000) explained that human resource planning occupies an important role to forecast

future demands of business and environmental factors in organization and it also helps to

generate and manage the human resource demands as required and as conditions depict. Human

resource planning seems to be in practice by those firms and/or enterprises which consider their

employees the most essential part of the organization. Organizations usually become unable to

meet the desired objectives just due to the fact that at times of stiff competition, the moral of

their employees is not as that good as it is of their counterparts. The reason is quite clear to

everyone that the employees of that firm are not having that level of potential or motivation

which becomes due while operating at that level in the industry. However, those organizations

outperform in the market which does well with the employees in terms of boosting their

satisfaction level at work through different ways, motivating them enough to take courage and

making them put forth the level best effort to meet the targets (Noe, 2003).

At times, there are many factors that change the entire way human resource planning is done.

Those could be external and internal factors that may influence the whole process of human

resource planning like for instance, the external environment and the internal one and open

competition in the market, etc. that organization follows and the way through which it aligns the

workforce planning with various departmental planning. All these contribute to design different

policies and procedures in crafting Human resource planning. Organizations tend to consistently

work on capacity building of their workforce in acute manner and similarly manage the talent of

their number of employees in different ways like doing succession planning for best individuals

so that they may discharge their responsibility for key positions in future course of time.

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Therefore, organizations work on numerous ingredients of human resources planning; one of

which is that organizations use to streamline the flow of communication across the whole

organization which in turn not only boosts the satisfaction of the employees but also adds up

significantly to the overall performance of the organization (Speamerfam, 2011).

The strategic role of human resource planning not only assists the organization in short span of

time but also in many times to come. Thus it is being seen that those organization which consider

human resource planning as the significant and essential part of their human resource

management, this could turn out to be very helpful in terms of dealing with its human capital

which could possibly make the organization to standout of the competition prevailing in the

market (Biles, 2000).

According to Edwards and Pearce (1998) “Human resource planning is particularly important for

emerging, rapid-growth and high tech business. Mature business in need of new products,

services, markets, acquisitions or divestitures must also plan to identify, attract or reallocate the

talent necessary for revitalization and continued competition”. For satisfying training and career

development needs of employees and fulfilling organizational demands, succession planning and

organization development occupy an important role. If, in case, the in-house supply of labour is

more than needed, this problem of resource rearrangement needs to be dealt with. According to

Craft (1990), Human resource planning owns a significant role in deciding and specifying the

characteristics of applicants, in order to select the best fit that organization looks for. Noe et al

(2003) elaborated that it is important to rightly implement human resource planning in order to

create the lead time necessary to confront potential problems and threats to the organization’s

competitive edge.

1.2 Statement of the Problem Organizations typically plan their future needs for supplies, equipment, building capacity, and

financing. Organizations must also plan to ensure that their human resource needs are satisfied.

Human resource planning involves identifying staffing needs, forecasting available personnel,

and determining what additions or replacements are required to maintain a staff of the desired

quantity and quality to achieve the organization’s goals. The human resource planning function

involves at least three different elements: job analysis, forecasting demand and supply, and legal

restraints. Like many organizations in the world, B.A.T company ltd is facing challenges of

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attracting and retaining skilled and valuable employees to meet changing customer’s needs.

Many studies have been conducted on how human resource planning affects organization

performance eg. Yaw (2012) conducted study on the analysis of human resource planning and its

effect on organizational effectiveness in Ghana. Farman (2013) conducted study on effect of

human resource planning on organizational performance of telecom sector. Maina & Kwasira

(2017) conducted study on role of human resource planning practices on employee performance

in county governments in Kenya. It is evident that no study has been conducted on the same

problem in manufacturing organization. The study therefore sought to fill this gap by evaluating

how human resource planning practices affects organizational performance with reference to

British American Tobacco company ltd.

1.3 Objectives of the Study

The general objective of the study was to evaluate the effect of human resource planning

practices on organizational performance. The study was guided by the following specific

objectives:

i. To find out the effect of job analysis on performance of B.A.T company Ltd.

ii. To determine the effect of employees demand supply forecasting on performance of

B.A.T company Ltd.

iii. To establish the effect of employees retention planning on performance of B.A.T

company Ltd.

1.4 Research Questions

i. What is the effect of job analysis on performance of B.A.T company Ltd.?

ii. What is the effect of employees demand supply forecasting on performance of B.A.T

company Ltd.?

iii. How does employees attraction retention planning affect performance of B.A.T company

Ltd.?

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1.5 Significance of the Study

The study would assist organizations maintain high performance through focusing on manpower

planning which leads to the right number of employees required, with right skills at the right

time. The study would assist human resource managers to have effective recruitment process,

motivation, training and performance appraisal. The findings of the study will provide a broad

knowledge to human resource managers of organizations on how they can effectively plan for

their human resource and meets the ever changing customer’s needs. It will aid in further theory

formation and add up to the existing bank of knowledge. It may also benefit other scholars and

students of human resource management who may use the findings for academic purposes.

1.6 Scope of the Study

The studies addressed the effect of human resource planning on organizational performance with

reference to B.A.T company ltd in Migori County. The researcher specifically evaluated job

analysis, employees demand supply forecasting and employees retention planning with their

effects on organizational performance.

1.7 Limitations of the Study

The study was limited to the effect of human resource planning on performance of B.A.T

Company Ltd in Migori County; therefore its findings may not be generalized to other

manufacturing organizations in Kenya. Some employees did not contribute to the study due to

pressure from work.

1.8 Assumptions of the Study

It was assumed that the respondents were available during the study and gave their honest

opinion concerning the research questions. It was also assumed that the respondents would

interpret the questions in the manner set out in the objectives. It would also be assumed that the

limitations of this study were overcome. All the employees from B.A.T company Ltd in Migori

County had knowledge on human resource planning and how it affect organizational

performance.

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1.9. Operational Definition of TermsDemand forecasting : Forecasting demand involves determining the numbers and

kinds of personnel that an organization will need at some point

in the future.

Human resource planning: Is described as the process of identifying current and future

needs of the human resource so that an organization may

achieve its goals (Reilly, 2003).

Human resource: People who make up workforce of an organizations

Job analysis: The procedure of identifying the content of a job in terms of

activities involved and attributes or job requirements needed to

perform the activities.

Organization performance : Comprises of the actual output or results of an organization.

According to Richard (2009) organizational performance

encompasses three specific areas of firm outcome (return on

assets, profits, return on investment etc).

Supply forecasting: Forecasting supply involves determining what personnel will

be available. The two sources are internal and external: people

already employed by the firm and those outside the

organization.

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CHAPTER TWO

LITERATURE REVIEW

2.1. Concept of Human Resource Planning Human resource planning (HRP) is described as the process of identifying current and future

needs of the human resource so that an organization may achieve its goals (Reilly, 2003).

Human resource planning (HRP) is a crucial process in every organization. It is essential to

conduct human resource planning (HRP) since hiring the wrong employees or failure to

anticipate fluctuations in hiring needs could be costly in the long run. The process of HRP

ensures that, an organization’s employees have the requisite skills and competencies an

enterprise needs for it to succeed (Ghazala & Habib, 2012). Gupta (2008) adds that, HRP

prepares appropriately employees for potential rationalization. It further enables a firm to make

adequate preparations for recruitment and strategic hiring.

According to Gould, (2004), HRP is defined as, “the strategically driven human resource

function will be devoted to finding ways to help the organization gain important advantages over

its competitors”. Those advantages are often described in terms of the capacity that a business

has with which to pursue its objectives. “The capacity of an organization to achieve its strategic

objectives is influenced by human resources in three fundamental ways: cost economics;

capacity to operate effectively; capacity to undertake new enterprises and change operations”

(Biles and Holmberg, 2000).

Mullins (2006) acknowledges that in recent years increasingly more attention has been given to

the important of planning human resources as well other economic resources such as capital,

materials, machinery and equipment‟. Bulla and Scott (2004) has shown that, Human Resource

Planning (HRP) as „the process for ensuring that the human resources requirements of an

organization are identified and plans are made for satisfying those requirements‟.

Human resource planning basically refers to the planning of all the various activities carried out

by the human resource department or even planning how the activities of the human resource

department can be executed. Some of these human resource activities are recruitment, selection,

motivation, coaching, career development, empowering, and evaluations among others.

According to Mondy et al (1996) HRP is defined as a systematic analysis of HR needs in order to

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ensure that correct numbers of employees with the necessary skills are available when they are

required. When we prepare our planning programme, Practitioners should bear in mind that their

staff members have their objective they need to achieve. This is the reason why employees seek

employment. Neglecting these needs would result in poor motivation that may lead to

unnecessary poor performance and even Industrial actions.

2.2. Theoretical Review

2.2.1 Human capital theoryIt is asserted that, recent challenges such as globalization, a knowledge-based economy, and

technological evolution have obliged many countries and organizations to seek new ways to

maintain competitive advantage (Kwon, 2009). The standard approach in labour economics is

said to view human capital as a set of skills or characteristics that enhance a worker’s

productivity. Human capital is said to refer to the stock of productive knowledge and skills

possessed by workers. Boldizzon (2008) adds that, the concept of human capital is semantically

the mixture of human and capital. In tandem with the meaning of capital in the economic

perspective, the human is the subject to take charge of all economic activities such as production,

consumption, and transaction. On the establishment of the aforementioned concepts, it can be

recognized that, human capital means one of the production elements which can generate added-

values through inputting it.

According to the human capital theory, the method to create human capital can be put into two

categories. The first is to employ human as labour force in the classical economic perspective.

The other is based on the assumption that, the investment of physical capital may illustrate the

same effectiveness with that of human capital on education and training (Little, 2003).

Considering that the assumption accepts as a premise, the human capital expansively includes the

meaning of ‘human as creator’ who frames knowledge, skills, competency, and experience

originated by continuously connecting between ‘self’ and ‘environment’. Among those concepts

of the human capital, it tends to be recognized that the latter is more important than the former

(Beach, 2009).

Indeed, many empirical literatures show that human capital affects various social components.

Woodhall (2001) asserts that, the investment of human capital is more effective than that of

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physical capital. Throughout the investment of human capital, an individual’s acquired

knowledge and skills can easily transfer to certain goods and services. Considering that

accumulation of knowledge and skills takes charge of important role for that of human capital,

there is a widespread belief that learning is the core factor to increase the human capital. In other

words, learning is an important component to obtain much knowledge and skills through lots of

acquisition ways including relationship between the individual and the others.

Currently, it is acceptable that the conceptual foundation of one’s human capital is based on

‘something like knowledge and skills’ acquired by an individual’s learning activities. Assuming

that knowledge can broadly include other factors of human capital such as skills, experience, and

competency, human capital and ‘knowledge as broad meaning’ is recognized as synonymous

expression (Sleezer et al., 2003). In the context of human resource planning practices, the theory

of human capital can be employed to emphasize on the rationale of attracting and retaining

workforce with the requisite knowledge, skills and competencies.

2.2.2 Resource based Theory An organization’s resources can be divided into tangible (financial, technological, physical and

human) and intangible (brand-name, reputation and know-how) resources. Barney (2001) argued

that resources lead to sustainable competitive advantage when they are valuable, rare, inimitable,

and non substitutable. Resources such as technology, natural resources, finances and economies

of scale can create value, however the resource based theory argues that this sources of value are

available to all and easy to copy, compared to complex social systems like human resources.

The resource based view of the firm is a model of firm performance that focuses on the resources

and capabilities controlled by a firm as sources of competitive advantage (Perce and Robinson,

2007). The genesis of the resource-based model can be traced back to Selznick (1997), who

suggested that work organizations each possess ‘distinctive competence’ that enables them to

outperform their competitors, and to Penrose (1999), who conceptualized the firm as a

‘collection of productive resources’. This view focuses on the quality of the human resource

available to the organization and their ability to learn and adapt more quickly than their

competitors. These resources include the human resources such as the training, experience,

judgments, intelligence, relationships and insights of individual managers and workers in an

organization. The sum of people’s knowledge and expertise, and social relationships, has the

8

potential to provide non- substitutable capabilities that serve as a source of competitive

advantage (Cappelli & Singh, 1992).

Perce and Robinson (2007) argue that the resource based view of a firm helps improve upon the

SWOT analysis by examining a variety of different yet specific types of resources and

capabilities any firm possesses and then evaluating the degree to which they become the basis for

sustained competitive advantage based on industry and competitor considerations. Thus

theoretical work on the resource based view of the firm (Barney, 2001; Perce and Robinson,

2007) supports the notion that HRM may be an important source of competitive advantage.

2.3 Empirical Review

2.3.1Effect of Job Analysis on Organizational Performance

To recruit and select the appropriate personnel for specific jobs, it is necessary to know what the

jobs entail. Job analysis is the process of obtaining information about jobs through a systematic

examination of job content (U.S. Department of Labor, 2012). A job analysis usually consists of

two parts: a job description and a job specification. The job description is a written statement that

outlines the duties and responsibilities expected of a job incumbent. It usually includes a job title,

the title of the incumbent’s immediate supervisor, a brief statement of the job goal, and a list of

duties and responsibilities. The job specification is a written document that outlines the

qualifications that a person needs in order to accomplish the duties and responsibilities set forth

in the job description. Job analysis provides valuable information for forecasting future staffing

needs and other personnel management functions. For example, the data produced by the job

analysis can be used to develop appropriate recruitment and selection methods to determine

dimensions on which personnel should be evaluated, to determine the worth of jobs for

compensation purposes, and to develop training programs for personnel (Baired et al, 2003).

According to Byars, (2004), varieties of techniques are available for conducting a job analysis.

The technique most appropriate for a given situation depends on a number of factors, such as the

type of job being analyzed, the resources available for doing a job analysis, the scope of the job,

and the size of the organization. Some of the most commonly used techniques for conducting a

job analysis include observation, work sampling, critical incidents, interviews, and

questionnaires.

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Observation; the most straightforward method of job analysis is observation of people

performing the job. Observation can be a good way of examining jobs that consist mainly of

observable physical activity. Jobs such as maintenance worker, groundskeeper, and machine

operator are examples. Analyzing a job through observation is not appropriate where the job

requires much abstract thinking, planning, or decision making (e.g., company president, labor

relations specialist, legal counsel) (Michael, A, 2006).

Work sampling; a variation of the observation technique is the work sampling approach. The job

analyst periodically samples employees’ activities and behavior on jobs that have long cycles,

that have irregular patterns of activity, or that require a variety of different tasks. For example,

research on the administrative demands of department heads consistently shows that they are

fragmented and rapid fire. A personnel administrator could examine the job activities of twenty-

five or thirty company executives on a given day or randomly select twenty-five or thirty days of

the year and observe the job activities of five executives during those days. This approach is

similar to the one used by Henry Mintzberg (1998) when he undertook a careful study of five

executives to determine what they did on their jobs. On the basis of his observations, Mintzberg

concluded that company executives perform ten different, highly interrelated roles, which he

divided into three categories: figurehead, leader, liaison (interpersonal); monitor, disseminator,

spokesperson, decisional (informational); and entrepreneur, disturbance handler, resource

allocator, negotiator (decisional). Mintzberg, however, went well beyond the work sampling

approach in his analysis of executives. He used a combination of ethnographic techniques

including observation, interviews, document analysis, and structured questionnaires to obtain his

data (Byars, 2004).

Critical incidents; another variation of the observation technique, known as critical incidents,

examines only those job activities leading to successful or unsuccessful performance. This

approach is similar to the trait approach used to identify effective and ineffective leaders. An

outside consultant, an immediate supervisor, or a job incumbent can conduct this technique.

Direct observation and the two variations thereof are frequently used in conjunction with

interviewing (Noe, 2003).

Interviews; probably the most widely used technique for determining what a job entails is the

interview technique, and its wide use attests to its advantages. Observation of an organization’s

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labor relations specialist, for example, would only reveal that the role incumbent conducts

research, handles conflicts, prepares projects and counterprojects, confers with management, and

negotiates at the bargaining table. This method fails to identify other important aspects of the job,

such as analytic thinking and problem solving. Interviewing the labor relations specialist allows

that person to describe important activities of the job that might not be revealed through direct

observation (Michael, A, 2006).

Questionnaires; many organizations use job analysis questionnaires to elicit information

concerning what a job entails. Such questionnaires have at least two advantages. First, they can

pool the responses of numerous job incumbents and compare job activities across many jobs,

using a standard set of common dimensions. Second, questionnaire can generate much

information quickly and inexpensively. For example, a job analyst could administer a

questionnaire to 100 job incumbents in less than it would take to observe a single job or

interview one job occupant (Baired et al, 2003).

2.3.2 Effect of Employees Demand Supply Forecasting on Organization Performance

The second phase of human resource planning, forecasting demand and supply, involves using

any number of sophisticated statistical procedures based on analysis and projections. Such

forecasting techniques are beyond the scope of this discussion. At a more practical level,

forecasting demand involves determining the numbers and kinds of personnel that an

organization will need at some point in the future. Most managers consider several factors when

forecasting future personnel needs. The demand for the organization’s product or service is

paramount. Thus, in a business, markets and sales figures are projected first. Then, the personnel

needed to serve the projected capacity is estimated. Other factors typically considered when

forecasting the demand for personnel include budget constraints; turnover due to resignations,

terminations, transfers, and retirement; new technology in the field; decisions to upgrade the

quality of services provided; and minority hiring goals (Noe, 2012).

Forecasting supply involves determining what personnel will be available. The two sources are

internal and external: people already employed by the firm and those outside the organization.

Factors managers typically consider when forecasting the supply of personnel include promoting

employees from within the organization; identifying employees willing and able to be trained;

availability of required talent in local, regional, and national labor markets; competition for talent

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within the field; population trends (such as movement of families in the United States from

Northeast to the Southwest); and college and university enrollment trends in the needed field

(Ball, 2012; Henderson, 2010).

Internal sources of employees to fill projected vacancies must be monitored. This is facilitated by

the use of the human resource audit, or the systematic inventory of the qualifications of existing

personnel. A human resource audit is simply an organizational chart of a unit or entire

organization with all positions (usually administrative) indicated and keyed as to the

“promotability” of each role incumbent (Frantzeh, 2001).

2.3.3 Effect of Employees Retention Planning on Organization Performance

Employees retention in today’s changing labour market is said to require government to look at

major drivers that are fundamental to employers and potential employees. The foregoing is

according to the Government of Newfoundland and Labrador (GNL, 2008). Some of these

drivers include, diversified and challenging work, attractive compensation package which

constitutes more than just salary, career advancement opportunities, opportunities for personal

and professional growth, an inclusive workplace, work-life balance, and ongoing recognition of

contributions to the organization.

Being a preferred employer is asserted to be integral to competing for talent. In order to be a

preferred employer, it is emphasized that, it is necessary to both attract new employees to the

organization and retain the talent that the organization currently employs. It is posited that, there

are many factors that influence the attraction and retention of workers, in addition to

compensation (GNL, 2008). It is noted though, compensation is vital to competitiveness, it is

more often than not, not the single most important factor to employees or potential employees.

Indeed, people would prefer working for an organization that they are proud to be working with.

The influencing factors to retain current workforce and attract new crop of employees include

support for professional development, career advancement opportunities, having respected and

trusted leaders, ability to influence organizational initiatives and directions, flexible working

environment, workplace innovation, communication, and recognition and respect. Abdullah

(2014) in his study noted that, Saudi Arabia banks are making a lot of efforts to attract talent and

skilful staff who possess good banking experience.

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A report on the dynamics and trends of employment in Kenya by the Institute of Economic

Affairs (IEA, 2010) indicated that, quality of the workforce, achievement of the optimal mix of

managerial-technical support staff, management skills and manpower issues are some of the

areas with the greatest potential of affecting organizational productivity. The report further

observes that, a National Manpower Survey (NMS) is one of the inputs that provides baseline

information necessary in formulation and implementation of effective labour market policies. In

a study on the effect of placement practices on employee performance in small service firms in

the information technology (IT) sector in Kenya (Kavoo-Linge & Kiruri, 2013) , it is noted that,

a well-done induction process could improve employee confidence and performance and also

provide a competitive advantage in attracting and keeping good staff. When assessing the ethical

considerations in HRM in Kenya, Mathenge (2011) complained that, most organizations in

Kenya are currently facing conspicuous challenges of attracting and retaining qualified

personnel.

The reviewed global, regional, and local studies have underscored the essence of attraction and

retention in organization. Organizations are asserted to compete to attract the best talent in the

labour market while retaining the most competent workforce (GNL, 2008). Yet in the public

service, the foregoing has been a huge challenge. The extent to which attraction and retention

strategies impact on performance of employees is undoubtedly under-researched especially in the

public sector. The situation is not different in the County Governments in Kenya.

13

2.4 Conceptual Framework Orodho (2009), defines a conceptual framework as a model which diagrammatically shows the

relationship between variables in the study.

Independent Variable Dependent Variable

Intervening Variable

Figure 2.1: Conceptual Framework

Source: Researcher (2016)

In figure 2.1 above the study conceptualizes independent variables which include what the

researcher specifically assessed ie resourcing strategy, supply demand forecasting and employees

retention planning; the dependent variable is organization performance in terms of productivity.

For B.A.T company Ltd to achieve high organizational performance through effective human

resource planning, the human resource manager has to focus on job analysis, supply and demand

strategy and attraction and retention planning. However, this will depend on the existing human

resource policies and organizational culture

14

Job analysis

Employees demand supply forecasting

Employees retention planning

Organization performance

Productivity Competitive advantage Cost reduction

Organizational culture

Human resource policies

CHAPTER THREE

RESEARCH METHODOLOGY

3.1. Research Design

According to Kothari (2004), research design refers to the plan and structure of investigating that

helps the researcher to obtain answers to research questions. The researcher used descriptive

research design in order to gather facts on the effects of human resource planning on

performance of an organization. This type of design was appropriate for gathering information,

summarizing, presenting and interpreting it for the purpose of clarifying on how human resource

planning affect performance of an organization. Orodho (2004), recommended this as one of the

best research designs. The design also gave results immediately and therefore was useful in

fixing shortcomings realized in the process of the study.

3.2. Study Area

The research was carried out in B.A.T Company Ltd in Migori County. The county is located in

wastern Kenya, bodering Kisii, Homabay and Kisumu County. It is approximately 376 Kilometer

from Nairobi the capital city of Kenya. B.A.T Company Ltd was chosen because it was

convenient for the researcher and the required information for this study was obtained.

3.3. Target Population

Population refers to an entire group of individual, events or objects having common observable

characteristics (Kothari, 2004). The study targeted a population of 100 employees from B.A.T

Company Ltd. This comprised employees from human resource department and finance

department

3.4. Sample size and Sampling Procedures

Sample size is the number of items involved in the study as the respondents in the study.

Sampling procedure on the other hand is the scientific process through which the sample

elements are selected (Mugenda & Mugenda, 2003). This research used stratified random

sampling procedure to select a sample to represent the entire population. According to Mugenda

and Mugenda (2003) recommendations of sample size of at least 10%, 30% of target population

was used to calculate the sample size and therefore 30% of the targeted employees was selected

15

and that led to 30 employees working in B.A.T Company Ltd in Migori. The table below shows

target population and sample size for each respondent’s category.

Table 3.1Targeted and Sample Population

Respondents category Target Population Sample SizeHuman resource 75 22Finance and accounting 25 8Total 100 30

Source: Researcher, 2017

3.5 Data Collection and Procedure The researcher adopted the use of questionnaire as a method of data collection instrument to the

identified set of respondents. Questionnaire is an instrument used to gather data, which allows

measurement for or against a particular viewpoint. Questionnaire is useful in that; it is efficient

use of time that is information can be collected from a large number of people and the questions

can be easily analyzed, anonymity is possible and everyone gets the same questions that is, it

is standardized (Orodho, 2009). Questionnaire was chosen because the sample population is

literate and they are able to read interpret and write. Closed ended questionnaire was preferred

because it enabled the researcher to get feedback according to the research objectives. The

questionnaire was physically dropped to the selected respondents and picked after two weeks.

3.6. Instrumentation

3.6.1. Reliability of the Instrument

Reliability is a measure of the degree to which research instrument yield consistent results or

data after repeated trials (Mugenda & Mugenda, 2003). Reliability is the degree to which a

particular measuring procedure gives equivalent results over a number of repeated trials

(Orodho, 2009). To ensure reliability of the instruments, the researcher used test retest method in

the study area using respondent from the targeted population who were not part of the study

sample.

3.6.2. Validity of the Instrument

Validity has to do with how accurately the data obtained in the study represents the variables of

the study. If such data will be a true reflection of the variable, then inferences based on such data

was accurate and meaningful (Mugenda and Mugenda, 2003). Validity is the degree to which a

16

test measures what it is supposed to measure, therefore it measures the accuracy and the

meaningfulness of results obtained from the analysis of data collected by the researcher (Orodho,

2009).Validity is a measure to the degree to which data obtained from research instruments

meaningfully and accurately, reflect or represent theoretical concept (Omollo, 2009). To ensure

validity of the questionnaire, the researcher sought the expert opinion of the University

supervisor before going to the field to collect data.

3.7 Data Analysis and Presentation

According to Mugenda and Mugenda (2003) data analysis is the process of bringing order,

structure and meaning of the data collected. Basing on (Mugenda & Mugenda 2003)

recommendations on the use of descriptive statistics as a method of data analysis, the collected

data was analyzed by descriptive statistics like weighted average and percentages. It was then

presented in form of frequency tables, charts. These methods were used since it’s easier for one

to analyze, present and interpret the collected data from the filled.

17

CHAPTER FOUR

DATA ANALYSIS, DISCUSSION AND PRESENTATION

4.1 Response Rate

Questionnaires were administered to 30 employees through drop and pick methods where

questionnaires were distributed to sample employees and collected after two weeks in order to

have high response rate. The researcher managed to collect 27 questionnaires completely filled.

This yielded a response rate of 90% with none response rate of 10%.

Table 4.1: Response Rate

Category of Response Frequency Percentages

Response

Non response

rateHuman resource 20 66.7 6.7Finance and accounting 7 23.3 3.3Total 27 90% 10%Source: Field Data, 2017

According to Dixon (2012), a response rate of 50% is adequate while a response rate greater than

70% is very good. This agreed with Mugenda and Mugenda (2003), that a 50% response rate is

adequate, 60% good and above 70% very good. This therefore implied the response rate of 90%

is very good. The study therefore received good response rate showing respondents willingness

to positive participates in the study.

4.2 Demographic Characteristics of Respondents

The study analyzed age, educational level and period of working in the organization then

presented them as below in the following tables.

18

4.2.1Age Analysis

Table 4.2: Age Categorization of RespondentsAge Frequency Percentages18-27 4 14.828-37 7 25.938-47 10 37.1Above 48 6 22.2Total 27 100Source: Field Data, 2017

From the table 4.2 above, age categorization of respondents was such that 14.8% of the

respondents were aged between 18–27 years, 25.9% of the respondents were aged between 28–

37 years, 20.8% of the respondents were aged between 38-47 and 22.2% of the respondents were

age above 48 years. This implies that most of the employees from B.A.T company Ltd are young

age between (28-37). This reflects the views of older respondents.

4.2.3 Educational Level

Respondents were asked to indicate their educational level

Table4.3: Level of EducationEducational Level Frequency PercentagesMasters 8 29.6Degree 10 37.1Diploma 7 25.9Certificate 2 7.4Total 27 100Source: Field Data, 2017

Further investigations were made in table 4.3 to evaluate education levels of respondents and

findings revealed that 29.6% of the respondents had masters, 37.1% of the respondents are

degree holder, 25.9% of the respondents had diploma, and 7.4% of the respondents had

certificate. The data shows that most of the employees in B.A.T company Ltd are degree holders

putting them at a better position to effectively contribute to the study.

4.2.3 Duration of Service

Figure 4.1: Duration of Service

19

11.11%

14.81%

18.52%

55.56%

1-5 years

6-10 years

11-15 years

over 15 years

Source: Field Data 2017

It is evident from the figure that, out of 27 employees, 56% of them have been working for the

organization for more than 15 years, 18% have been working between 11-15 years, 15% of them

have been working for between 6-10 years and 11% of them have been working for between 1-5

years. This shows that most of the employees in B.A.T Company Ltd have worked for the

organization for more than 15 years. Indicating that, they have experience to effectively

contribute to the study.

4.3 Job analysis

The first objective of the study sought to find out the effect of job analysis on performance of

B.A.T company Ltd. The findings were presented in the tables below;

Table 4.4: Regular use of job analysis techniqueMore

often

Very

often

Often Less

often

Not at

all

∑fi ∑fiwi ∑fiwi

∑fi

20

5 4 3 2 1Observation 8 2 10 4 3 27 89 3.3Work sampling 0 9 2 7 9 27 65 2.4Critical incidents 1 3 6 5 12 27 57 2.1Interviews 10 8 5 4 0 27 105 3.9Questionnaire 14 5 3 5 0 27 109 4.0Source: Field Data, 2017

It is evident from the table 4.4 above that, questionnaire scored the highest weight of 4.0,

interview rated 3.9, observation rated 3.3, work sampling 2.4 and critical incidents rated 2.1. This

shows that, B.A.T company Ltd in Migori regularly use job analysis questionnaire. This finding

is supported by Baired et al, (2003) who stated that, many organizations use job analysis

questionnaires to elicit information concerning what a job entails. Such questionnaires have at

least two advantages. First, they can pool the responses of numerous job incumbents and

compare job activities across many jobs, using a standard set of common dimensions. Second,

questionnaire can generate much information quickly and inexpensively.

Table 4.5: Effect of job analysis on organization performanceVery

high

5

High

4

Moderate

3

Low

2

Very

low

1

∑fi ∑fiwi ∑fiwi

∑fi

Cost reduction 2 4 5 6 10 27 63 2.3Competitive

advantage

12 7 4 4 0 27 108 4.0

Quality production 8 8 6 5 0 27 100 3.7Employees turnover 8 7 7 4 1 27 98 3.6

21

Meeting current and

future personnel

needs

0 5 8 6 8 27 64 2.4

Source: Field Data, 2017

Table 4.5 above shows that, competitive advantage had highest weight of 4.0, quality production

rated 3.7, employees turnover rated 3.6, meeting current and future personnel needs rated 2.4 and

cost reduction rated 2.3. This shows that, job analysis in B.A.T company Ltd in Migori increase

completive advantage of the company. Clifford (2004) has different opinion that, companies that

regularly conduct job analysis possess much better knowledge of their strength and weaknesses

and can take timely corrective actions to improve any deficiencies in their skills and job

behavior.

4.4 Employees Demand Supply Forecasting

The second objective of the study sought to determine the effect of employees demand supply

forecasting on performance of B.A.T company Ltd. The findings were presented below;

Table 4.6: Factor considered in employees demand forecasting More

often

5

Very

often

4

often

3

Less

often

2

Not at all

1

∑fi ∑fiwi ∑fiwi

∑fi

Demand for product and

services

13 9 2 2 1 27 112 4.1

Budget constraints 3 7 3 7 7 27 73 2.7Employees turnover 8 6 0 5 8 27 82 3.0New technology in the field 1 4 5 4 13 27 57 2.1

22

Decisions to upgrade

quality of services

9 11 3 4 0 27 106 3.9

Source: Field Data, 2017

The findings in table 4.6 show that, demand for product and services was rated high of 4.0

decisions to upgrade quality of services 3.9, employees turnover rated 3.0, budget constraints

rated 2.7 and new technology in the field 2.1. This shows that, demand for product and services

is the major factor considered by B.A.T company Ltd in Migori in employees demand

forecasting. This finding is supported by Noe (2012) who stated that demand for the

organization’s product or service is paramount. Thus, in a business, markets and sales figures are

projected first. Then, the personnel needed to serve the projected capacity is estimated. Other

factors typically considered when forecasting the demand for personnel include budget

constraints; turnover due to resignations, terminations, transfers, and retirement; new technology

in the field; decisions to upgrade the quality of services provided; and minority hiring goals.

Table 4.7: Factor considered in employees supply forecasting

More

often

5

Very

often

4

often

3

Less

often

2

Not at all

1

∑fi ∑fiwi ∑fiwi

∑fi

Internal promotion 12 12 3 0 0 27 117 4.3Employees available for

training

12 9 6 0 0 27 114 4.2

Availability of required

talents

14 8 0 5 0 27 112 4.1

Competition for talent

within the field

0 6 2 4 15 27 53 2.0

College and university

enrolment trends

2 7 0 9 9 27 65 2.4

Source: Field Data, 2017

23

The table 4.6 above shows that, internal promotion was rated high of 4.3, employees available

for training rated 4.2, availability of required talents 4.1, college and university enrollment trends

rated 2.4 and competition for talent within the field rated 2.0. This shows that, internal promotion

is the major factor considered by B.A.T company Ltd in Migori in employees demand

forecasting. This finding is supported by Henderson (2010) who found that factors managers

typically consider when forecasting the supply of personnel include promoting employees from

within the organization; identifying employees willing and able to be trained; availability of

required talent in local, regional, and national labor markets; competition for talent within the

field; population trends.

Table 4.8: Effect of employee demand supply forecasting on organizational performance More

often

5

Very

often

4

often

3

Less

often

2

Not at all

1

∑fi ∑fiwi ∑fiwi

∑fi

Cost reduction 0 6 7 5 9 27 64 2.4Competitive advantage 12 11 4 0 0 27 116 4.3Quality production 8 8 7 4 0 27 101 3.7Employees turnover 1 8 4 5 9 27 68 2.5Meeting current and future

personnel needs

13 11 3 0 0 27 118 4.4

Source: Field Data, 2017

Table 4.8 shows that meeting current and future personnel needs was rated 4.4 competitive

advantages rated 4.3, quality production rated 3.7, employee’s turnover rated 2.5 and cost

reduction rated 2.4. This shows that, employees demand supply forecasting help B.A.T company

Ltd in Migori in meeting current and future personnel needs.

24

25

4.5 Employees Retention PlanningThe third objective of the study sought to establish the effect of employees retention planning on

performance of B.A.T company Ltd. The findings are presented below;

Table 4.9: Major determinants of effective employees retention planStrongly

agree

5

Agree

4

Undecided

3

Disagree

2

Strongly

disagree

1

∑fi ∑fiwi ∑fiwi

∑fi

Diversified and

challenging work

7 6 0 3 11 27 76 2.8

Attractive

compensation

package

12 10 1 0 4 27 107 4.0

Career

development

opportunities

11 9 2 0 5 27 102 3.8

Opportunities for

personal and

professional

growth

8 7 5 4 3 27 94 3.5

Inclusive

workplace

3 4 6 6 8 27 69 2.6

Source: Field Data, 2017

Table 4.9 above show that, attractive compensation package 4.0, career development

opportunities rated 3.8, opportunities for personal and professional growth 3.5, Diversified and

challenging work rated 2.8 and inclusive work place rated 2.6. This shows that attractive

compensation package is the major determinant for effective employees retention planning in

B.A.T company Ltd in Migori. According to GNL, (2008), it is noted though, compensation is

vital to competitiveness, it is more often than not, not the single most important factor to

employees or potential employees.

Table 4.10: Factors influencing employees retention planStrongly Agree Undecided Disagree Strongly ∑fi ∑fiwi ∑fiwi

26

agree

5 4 3 2

disagree

1

∑fi

Flexible working

environment

8 7 5 5 2 27 95 3.5

Workplace

innovation

0 0 4 10 13 27 45 1.7

Communication 10 11 3 0 3 27 106 3.9Support for

personal and

professional

development

12 12 2 1 0 27 116 4.3

Recognition 1 4 5 5 12 27 58 2.1Source: Field Data, 2017

Table 4.10 above show that, support for personal and professional development rated 4.3

communication rated 3.9, flexible working environment rated 3.5, recognition rated 2.9 and

workplace innovation rated 2.1. This shows that support for personal and professional

development is the major factor affecting retention planning in B.A.T company Ltd in Migori.

Table 4.11: Effect of employees retention planning on organization performanceStrongly

agree

5

Agree

4

Undecided

3

Disagree

2

Strongly

disagree

1

∑fi ∑fiwi ∑fiwi

∑fi

Cost reduction 0 5 5 8 9 27 60 2.2

27

Competitive

advantage

11 11 5 0 0 27 114 4.2

Quality

production

13 11 3 0 0 27 118 4.4

Employees

turnover

0 4 7 3 13 27 56 2.1

Meeting current

and future

personnel needs

0 6 9 4 8 27 67 2.5

Source: Field Data, 2017

Table 4.11 shows that, competitive advantage was rated high of 4.4, quality production rated 4.2,

meeting current and future personnel needs rated 2.5, employees turnover rated 2.2 and cost

reduction rated 2.1. This shows that retention planning in B.A.T company Ltd in Migori

increases competitive advantage of the company.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings

The study is based on evaluate the effect of human resource planning practices on organizational

performance. The first objective of the study sought to find out the effect of job analysis on

performance of B.A.T company Ltd where it was found that, the company regularly use job

analysis questionnaire. Job analysis in the company increases completive advantage of the

company.

28

The second objective of the study sought to sought to determine the effect of employees demand

supply forecasting on performance of B.A.T company Ltd where it was found that, demand for

product and services is the major factor considered by B.A.T company Ltd in Migori in

employees demand forecasting and internal promotion is the major factor considered by the

company in employees supply forecasting. Employees demand supply forecasting help B.A.T

company Ltd in Migori in meeting current and future personnel needs.

The third objective of the study sought to establish the effect of employees retention planning on

performance of B.A.T company Ltd where it was found that attractive compensation package is

the major determinant for effective employees retention planning in B.A.T company Ltd in

Migori. Support for personal and professional development is the major factor affecting retention

planning in the company. Retention planning in B.A.T company Ltd in Migori increases

competitive advantage of the company.

5.2 Conclusion

From these findings, it was concluded that most companies regularly use job analysis

questionnaire to analyze jobs. Job analysis in the company increases competitive advantage of

the company.

Secondly, it was concluded that, demand for product and services is the major factor considered

by companies in employees demand forecasting and internal promotion is the major factor

considered by the companies in employees supply forecasting. Employees demand supply

forecasting help companies in meeting current and future personnel needs.

Lastly, it was concluded that attractive compensation package is the major determinant for

effective employees retention planning in companies. Support for personal and professional

development is the major factor affecting retention planning in companies. Retention planning in

companies increases competitive advantage of the company.

5.3 Recommendations

From the findings, the following recommendations were made; there is need for the companies

to have well documented human resource plans as well as mechanisms to operationalize them;

this should be done with the participation of all the staff and frequent feedback taken for possible

modifications.

29

There is need for top management to be sensitized on the potential influence of human resource

planning and organizational performance to win their commitment and support. There is need for

the companies to develop career development guidelines and have each and every employee

develop meaningful individual accountability plans clearly outlining their objectives and their

career aspirations in line with the guidelines. There is need for the organizations to review their

training programs so that they can be able to fully address career development issues among their

employees.

Appraisal and individual accountability plans should be used as a basis for identifying skill and

competency gaps in each and every employee and recommending appropriate trainings to

prepare employees‟ for succession. There is need for organizations to support their employees in

identifying their learning needs and goals, selecting suitable learning strategies and participating

in learning opportunities that place them in a better position with regard to succession planning.

5.4 Suggestions for Further Studies

The researchers suggest that, similar study should be carried in other companies in Kenya and on

the same subject. Further stud should also be carried out on the following areas: effect of job

analysis, employees retention, demand and supply forecasting affect organizational performance.

REFFERENCE

Baired et al (2003) Human resource practices and organizational performance: review

synthesis and research implications.

Barnard, W. (2006) seven steps of effective workforce planning.

Barrett, K., Richard, G. (2006) “seven steps of effective workforce planning” “When

Boomers retire,” Governing Magazine.

Biles, G. E. and Holmberg, S.R. (2000). Strategic Human Resource Planning. Glenn

Ridge, New Jersey: Thomas Horton and Daughters. P78.

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Bowey, A.M. (2004). A Guide to Manpower Planning. MacMillan, London.

Bulla, D. N.; Scott. (2004). Manpower requirements forecasting: a case example, in Human.

Burack, Elmer H. (2001) “Linking Corporate Business and Human Resource Planning: Strategic

Issues and Concerns,” Human Resource Planning.

Butler, J. E. Ferris. G. R. and Napier, N. K. (2001). Strategy and Human Resource

Management, Cincinnati: South-Western Publishing Co.

Byars, Lloyd L. and Rue, Leslie W. (2004) Human Resource Management, 7th ed.

Frantzeh, R. B. (2001) Human Resource Planning: Forecasting Manpower Needs,

Personnel Journal Vol.60. No. 11.

Gould, R. (2004), “Gaining a Competitive Edge through Human Resource Strategies,”

Human Resource Planning, P.31.

Harvey, D., & Bowin, R. B. (2006). Human resource management: An experiential approach.

New Jersey: Prentice Hall.

Katua, T., Mukulu, E., & Gachunga, H. (2014). Effect of employee resourcing strategies on the

performance of commercial banks in Kenya. International Journal of Education and

Research, 2(1): 1-20.

Kavoo-Linge, T., & Kiruri, J. (2013). The effect of placement practices on employee

performance in small service firms in the information technology sector in Kenya.

International Journal of Business and Social Science, 4(15): 213-219.

Michael, A. (2006). Human Resource Management Practice. Cambridge UniversityPress.

Mugenda O.M. and Mugenda A. G. (2003). Research methods qualitative and

quantitative aproaches. Nairobi : Acts Press.

Noe et al (2003) Human resource practices and organizational performance: review

synthesis and research implications.

31

Orodho, (2003).Essentials of educational and Social Sciences Research Method. Nairobi: Masola

Publishers.

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Maseno, Kenya.

Speamerfam, G. (2011) “What is human resource planning and the level of importance to an

organization”?

APPENDICES

APPENDIX I

LETTER OF INTRODUCTION

ADHIAMBO MILDRED O.

KISII UNIVERSITY

P.O. BOX 408 – 40200,

KISII.

32

TO

HUMAN RESOURCE MANAGER

BAT COMPANY LTD

P.O.BOX ………………………..

MIGORI

Dear Sir/Madam,

RE: REQUEST TO COLLECT DATA FROM YOUR EMPLOYEES

I am a student at Kisii University, pursuing a Diploma in Human Resource Management as a

partial fulfillment of the requirement for Award of a Diploma. I am to carry out a research

entitled; ‘An assessment on effect of human resource planning on organization performance with

reference to BAT Company Ltd. I am seeking your permission to collect data in your

organization in order to complete my studies. The information obtained will be treated with

utmost confidentially and the result of the research will be for academic purpose only.

Yours faithfully,

Adhiambo Mildred O.

APPENDIX II

QUESTIONNAIRE

Dear respondent,

I am a student of Kisii University taking diploma course in human resource management. I am

undertaking a research on an evaluation on effects of human resource planning on

performance of an organization. The information gathered during this research study is for

learning purposes and it’s totally private, confidential and anonymous.

33

Instructions

Do not write your name anywhere on the questionnaire Tick where is appropriate and provide the relevant response where applicable Kindly answer all question carefully

PART I

GENERAL QUESTIONS

1. What is your age bracket?

a) 18- 27

b) 28- 37

c) 38- 47

d) Above 48

2. What is your highest education level?

a) Certificate

b) Diploma

c) Degree

d) Masters

3. How long have you worked in the organization?

a) 1-5

b) 6-10

c) 11-15

d) Over 15

34

PART II: SPECIFIC INFORMATION

Please tick (√) where necessary

4. Kindly rate job analysis practices in your organization?

a) Excellent

b) Very good

c) Good

d) Poor

5. Which of the following job analysis techniques do you regularly use in the organization?

More often Very often Often Less often Not at all

Observation Work sampling Critical incidents

Interviews Questionnaire

6. Which of the following factors do you mostly consider when selecting job analysis

technique?

a) type of job

b) Availability of resources

c) scope of the job

d) Size of the organization

7. To what extent does effective job analysis affect your organization performance?

Effect Very high High Moderate Low Very low

Cost reduction

35

Competitive

advantage Quality production

Employees

turnover Meeting current

and future

personnel needs

8. Kindly rate the employees demand supply forecasting practices in your organization?

a) Excellent

b) Very good

c) Good

d) Poor

9. Which of the following factors do you regularly consider in forecasting demand of

personnel in your organization?

More often Very often Often Less often Not at all Demand for product

and services Budget constraints Employees turnover

36

New technology in the

fieldDecisions to upgrade

quality of services

10. Which of the following factors do you regularly consider in forecasting supply of

personnel in your organization?

More often Very often Often Less often Not at all Internal promotion Employees available for

training Availability of required

talents Competition for talent

within the fieldCollege and university

enrolment trends

11. To what extent does personnel demand supply forecasting affect your organization

performance?

Effect Very high High Moderate Low Very low

Cost reduction Competitive

advantage Quality production

37

Employees

turnover Meeting current

and future

personnel needs

12. Kindly rate the employees retention plans in your organization?

a) Excellent

b) Very good

c) Good

d) Poor

13. Which of the following do you agree that is a major determinants of effective employees

retention plan in your organization

Strongly

agree

Agree Undecided Disagree Strongly

disagree

Diversified and challenging

work Attractive compensation

package

38

Career development

opportunities Opportunities for personal and

professional growth Inclusive workplace

14. Which of the following do you agree that is a major factor influencing effective

employees retention plan in your organization?

Strongly

agree

Agree Undecided Disagree Strongly

disagree

Flexible working environment Workplace innovation Communication

Support for personal and

professional developmentRecognition

15. To what extent does employees retention planning affect your organization performance?

Effect Very high High Moderate Low Very low

Cost reduction Competitive

advantage Quality production

Employees

turnover

39

Meeting current

and future

personnel needs

Thanks for your co-operation

…………………

40