Effect of Interpersonal Competence on Organizational Performance

Abstract

The objective of the study was to determine the effect of interpersonal competence on the performance of firms listed on the Nairobi Securities Exchange and the corresponding hypothesis was formulated and tested. The study targeted Human resource managers of each of the 64 firms listed on the Nairobi Securities Exchange as at December, 2014, and 34 of them responded. The study adopted the positivist research philosophy and a descriptive survey design.  SPSS Version 21 was used to analyze data using regression analysis. Research findings from the test of hypothesis established that interpersonal competence has positive and significant effect on organizational performance. The study finding supports the Resource-Based View and Knowledge Space Theory which underscore the crucial role of interpersonal competence in company performance. The study recommends further investigation of the study variables in non-governmental organizations, academic institutions and churches.