Relationship of human resources turnaround strategies and organizational performance in KCB bank and Uchumi supermarket in Kenya

https://doi.org/10.59952/tuj.v1i3.29

Authors

  • Martin Kimemia Gathiru
  • Mwakammah Khamah Khamah
  • Musa Nyakora

Keywords:

human resource, KCB bank, organizational performance, turnaround strategies, Uchumi supermarket

Abstract

Many organizations across the world are facing declining organization performance due to ever
changing business environment. One of the major variables threatening their performance is the human
resource. The organizations fight hard in the hostile environment for survival in their distress. To do
this they initiate and implement human resource turnaround strategies to attain recovery and
sustainable performance. This paper is an effort to study and establish the relationship between human
resources turnaround and organizational performance. Specific human resource turnaround strategies
studied include workforce reorganization, talent acquisition in senior management, training and
development of new organizational culture, workforce retrenchment, performance targets formulation,
and staff performance appraisals. Other metrics included teamwork among colleagues, talent
development, staff credentials revaluation, and team building activities. The study adopted a casual
and mixed research design where data was analyzed based on case analysis where both inferential and
statistical data was addressed. The findings reveal that the ten human resource turnaround strategies
affected the organizational performance and contributed to turning around KCB bank and Uchumi
supermarket.

References

Abong’o, L. (2009) Strategic human resource Management Practices Among Commercial Banks in

Kenya, The Master of Business Administration Degree, School of Business University of

Nairobi, 8-27

Achieng’, O. (2013). Strategic Management Practices and Mobile Money Transfer Services in the

Telephony Industry in Kenya. International Journal for Management Science and

Terchnology, 1(1), 11–15.

Adembesa, J. M. (2014). Perceived Effects of Mergers and Acquisitions on Employee Productivity in

Commercial Banks in Kenya. Journal of Business and Management, 2(3), 45–50.

Adeyemi, B. (2011). Bank Failure in Nigeria: A Consequence of Capital Inadequacy, Lack of

Transparency and Non-Performing Loans. Banks and Bank System, 6(1), 99- 109

Al-alak, B., &Tarabieh, A. S. (M. Z. (2011). Gaining Compatitive& Organizational Performance

through Customer Orientation, Innovation Differentiation and Market Differentiation.

International Journal of Economics and Management Sciences, 1(5), 80–91.

Cameron, K.S., Sutton, R. &Whetten, D. (2011). Issues in organizational decline. In Readings in

Organizational Decline: Frameworks, Research, and Prescriptions, 3–19.

Catherine, K. (2009). Turnaround Strategies adopted by Uchumi Supermarket Ltd: Under receivership.

The Master of Business Administration Degree, School of Business University of Nairobi, 10-

Cooper, R., & Schindler, P. (2008). Business Research Methods (10th ed.). New York, United States:

McGraw-Hill Publications.

~ 104 ~

Gathiru, et al. Relationship of Human Resources Turnaround Strategies and …

Dimba, B. (2010). Strategic human resource management practices: Effect on performance.

AfricanJournal of Economic and Management Studies, 1(2), 128–137.

http://dx.doi.org/10.1108/20400701011073455

Gibson, E. & Billings, A. (2010). Best practices at Best Buy: A Turnaround strategy. Journal of

Business Strategy, 6(24), 10-16.

Githige, R. (2011). Factors that Influence Strategic Choices Adopted by Community Based

Organization Competing for Donor Funding in Nairobi Kenya. International Journal for

Management Science and Terchnology, 1(1), 39–45.

Grant, M., (1991) "The resource-based theory of competitive advantage: implications for strategy

formulation" from California Management Review 33 (3)

Jeruto, K. (2015). Strategic Management at Kenya Rural Roads Authority. International Journal of

Innovative Research and Development, 3(4), 89–95.

Kabue, L. (2013). Strategic Planning in Cooperative Societies in Nairobi.

Kamau, N. (2014). Turnaround Strategies Adopted by Kenya Planters Cooperative Union in Kenya.

Journal of Business and Management, 2(3), 84–94.

Kapoor, B. (2011). Impact of Globalization on Human Resource Management. Journal of International

Management Studies, 6(1), 1–8.

Karingithi, M. (2012). Strategic Management Practices at DHL Global Forwarding Kenya Limited.

Journal of Economics and International Business Research, 3(2), 5–10.

Katua, T. (2014). Effect of Human Resource Management Strategies on Organizational Performance:

A Case Study of Kisii Bottlers Limited. International Journal for Management Science and

Terchnology, 2(3), 36–45

Kebu, N. (2015). The Balanced Scorecard and Strategy Implementation at the Kenya Electricity

Generating Company. Journal of Social Science and Enterprenuership, 2(3), 94–110.

Mbandu, A. (2016). Turnaround Strategies and their influence on the financial performance of

organizations. A case study of Uchumi Supermarkets Ltd- Nairobi County Branches.

International Journal of Finance and Accounting, 1(1), 92-107

Mousavi, S., Hosseini, S. & Hassanpour, N. (2015). On the effects of organizational culture on

organizational performance: An Iranian experience in State Bank branches. Iranian Journal of

Management Studies, 8(1), 97-116

Muchira, W. (2013). Relationship between strategy implementation and performance in Commercial

Banks in Kenya. Master of Business Administration, School of Business, University of Nairobi,

-60

Mulwa, R. (2012). Management of Strategic Change at National Social Security Fund of Kenya.

Journal of Business and Management, 3(4), 25–30.

Muraga, K. (2015). HR Practices and Performance of Parastatals in Kenya. International Journal of

Science and Research, 2(3), 49–54.

Muthoka, M. N., &Ogutu, M. (2014). Response Strategies to Challenges Faced by the Horticultural

Firms in Nairobi County of Kenya. Journal of Economics and Sustainable Development, 5(5),

–172.

Mwangi, C. (2013). Corporate strategy and marketing of products and services at KCB Ltd.

Unpublished MBA Project, School of Business, University of Nairobi

Ngati, M. (2009). Turnaround Strategies Adopted by New Kenya Cooperative. IOSR Journal of

Business and ManagementVer. IV, 2(3), 45–54

Ngugi, K. & Karina, B. (2013). Effect of innovation strategy on performance of commercial banks in

Kenya. International Journal of Economics and Finances, 1(3), 1-13.

The University Journal Volume 1 Issue 3 2019 ISSN: 2519 – 0997 (Print)

Njeru, W. (2010). Turnaround strategies adopted by the National Bank of Kenya. Unpublished MBA

Project. School of Business, University of Nairobi

Njihia N.N. (2009). Strategic responses of Kenya Commercial Bank limited to changes in the Kenyan

banking industry. Unpublished MBA Project. University of Nairobi.

Nthini, E. (2013). Effect of Strategic Leadership on the Perfromance of Commercial and Finance State

Corporations in kenya. International Journal for Management Science and Terchnology, 1(3),

–26.

Nyaberi, D., Sakwa, M. &Kiriago, A. (2013). Effects of retrenchment on the motivating and loyalty of

surviving employees of Telcom Kenya Limited. International Journal of Academic in Business

and Social Sciences, 3(9), 7-15

Obae, P. (2009). A Study of the Turnaround Strategy Adopted by the Kenya Revenue Authority (KRA).

International Journal of Business and Social Sciences, 2(3), 25–34.

Obonyo, G. (2013). Evaluating marketing Strategies adopted by supermarkets for competitive edge: A

case of Kisii town supermarkets. Interdisciplinary Journal of Contemporary Research in

Business, 4(12), 15-40

Ochieno, C. N. (2013). Effects of Retrenchment on Organizational Performance at the Telkom Kenya,

Eldoret Branch. Journal of Emerging Trends in Economics and Management Sciences, 4 (4),

– 416.

Oketch, J. (2015). The Balanced Scorecard as a tool for strategy implementation at Chase Bank Kenya

Limited. Journal of Business Administration and Management Sciences Research, 2(3), 4–5.

Osoro, W. N. (2012). Entrepreneurial Orientation Effects on Business Performance of Small and

Medium Enterprises in Information Technology Sector in Nairobi, 166.

Otieno, P. (2015). Challenges in The Implementation of Turn Around Strategy by The National Police

Service in Kenya. International Journal for Management Science and Terchnology, 2(3), 64–

Panicker, Sunitha; Manimala, M. J. (2015). Successful turnarounds: the role of appropriate

entrepreneurial Strategies. Journal of Strategy and Management, 8(1), 40–21.

Petrovsky, N., James, O., Boyne, G. A. (2015). New Leaders' Managerial Background and the

Performance of Public Organizations: The Theory of Publicness Fit. Journal of Public

Administration Research and Theory, 25 (1), 217 – 230.

Randa, R. A. (2015). Challenges of the Implementation of Turnaround Strategy of the Large Micro

Finance Institutions in Nairobi County. International Journal for Management Science and

Terchnology, 2(3), 74–84.

Riany, C. O., Musa, G. H., Odera, O.&Okaka, O. (2012). Effects of Restructuring on Organization

Performance of Mobile Phone Service Providers. International Review of Social Sciences and

Humanities, 4 (1), 198 – 204.

Santana, M., Valle, R. & Galan, J. (2017). Turnaround strategies for companies in crisis: Watch out the

causes of decline before firing people. Business Research Quarterly, 20(3), 206-211.

Sanu, F. (2015). The Effect of Employee Turnover of Organizational Performance of Wema Bank,

Nigeria. Journal of Accounting and Finance, 1(2), 44–49.

Scovier, J. (2013). Effect of Bancassurance on Financial Performance of Insurance Companies in

Kenya; A Survey of Insurance Companies in Nairobi County. Journal of Management

Research, 2(1), 36–44.

Sekaran, U., &Bougie, R. (2011). Research Methods for Business: A Skill Building Approach (5th ed.).

Delhi: Aggarwal Printing Press.

~ 106 ~

Gathiru, et al. Relationship of Human Resources Turnaround Strategies and …

Shipton, H., Budhwar, P. & Crawshaw, J. (2012) ‘HRM, organizational capacity for change, and

performance: A global perspective.’ Thunderbird International Business Review, 54(6): 777-

Shisia, A. et al. (2014). An in- depth analysis of the Altman’s failure prediction model on corporate

financial distress in Uchumi Supermarket in Kenya. European Journal of Business and

Management, 6(23), 27-39.

Simba, O. (2013). Challenges of Implementation of Turnaround Strategy at the Kenya Meat

Commission. International Research Journal of Finance and Economics, 2(3), 45–49.

Stroh, L., &Caligiuri, P. (2014). Strategic Human Resources: A New Source for Competitive Advantage

in the Global Arena. International Journal of Human Resource Management, 9(3), 1–17.

Wanyonyi, R. &Nyakweba, O. (2016). Assessment of turnaround strategy on organizational

performance: A case of Kenya Industrial Estates, Kenya. The International Journal of Business

and Management, 4(10), 354-361.

Weitzel, W. &Jonsson, E. (2010). Decline in organizations: A literature integration and extension.

Administrative Science Quarterly, 34, 91–109.

Published

2021-12-21

How to Cite

Gathiru, M. K., Khamah, . M. K., & Nyakora, . M. (2021). Relationship of human resources turnaround strategies and organizational performance in KCB bank and Uchumi supermarket in Kenya. The University Journal, 1(3), XX-XX. https://doi.org/10.59952/tuj.v1i3.29