Influence of Manpower Cost Saving Strategy on Organizational Performance of Tea Manufacturing Firms in Kenya

Abstract

The purpose of the study was to assess the influence of manpower cost saving Strategy on organizational performance of tea manufacturing firms in Kenya. The study was based on the cost containment theory, chain value analysis model and theory of manpower planning. The study used interpretive research philosophy. This is the study of phenomena in which an environment takes main point to the acknowledgement of scientist understudy. The study adopted descriptive research design. The study targeted 1928 employees from all the factories in the selected regions of KTDA.A sample size of 432 was used comprising of top management, directors, extension officers, supervisors and junior staff. The study used stratified random sampling and simple random sampling techniques to determine the sample size. Data was collected using questionnaire. The validity of the research instruments was verified by researchers' supervisors while reliability of the instruments was tested by piloting test through crobach's Alpha coefficient. The collected data was analyzed by SPSS version 22 to generate both descriptive and inferential statistics. Data was presented by use of tables and figures. Inferential statistics was used to give relationship between the variables. The findings indicate that there is a significant relationship between manpower cost saving strategy and tea manufacturing firm's organizational performance, where manpower cost saving strategy explained9.4% in the firms organizational performance. The study concludes that manpower management strategy has a statistically significant effect on tea manufacturing firms in Kenya. The study recommends that tea firms should minimize do proper staffing and training to achieve cost effectiveness that will spur organizational performance.