Strategic human resource management practices and employee productivity at tourism parastatals in Kenya

Abstract

This study explored the relationship between Strategic Human Resource Management (SHRM) practices and employee productivity within Kenya's tourism parastatals. The tourism sector is a vital part of Kenya’s economy, contributing significantly to GDP and employment. The sector faces unique challenges, such as workforce inefficiency, high turnover, and the need for sustainable service delivery, making effective SHRM practices crucial for improving productivity and competitiveness. The research focused on four key SHRM practices: succession planning, employee training and development, performance appraisal, and employee engagement. The study was grounded in the Resource-Based View (RBV), Human Capital Theory (HCT), and Institutional Theory, providing a framework for understanding how internal HR capabilities and external institutional pressures influence organizational performance. Data was collected from 296 employees across six tourism parastatals. The findings revealed that SHRM practices significantly influence employee productivity. Performance appraisal had the most substantial impact, contributing to the largest variance in productivity, followed by employee engagement, training and development, and succession planning. The combined impact of all SHRM practices explained nearly 88% of the variance in employee productivity, with p-values indicating strong statistical significance for all practices (p < 0.001). The study recommends that tourism parastatals invest in structured performance appraisal systems, enhance employee engagement, provide continuous training, and refine succession planning to align with career advancement. These efforts are essential for improving employee productivity, service quality, and the sustainability of Kenya’s tourism sector. Future studies could use a longitudinal approach to assess the long-term effects of SHRM practices. Expanding the sample to other sectors or conducting cross-country comparisons would improve generalizability. Additionally, incorporating multiple data sources, such as objective performance data, could offer a more comprehensive understanding of SHRM’s impact on productivity.