High Performance Work Practices and Performance of Level 4, 5 And 6 Public Hospitals in Kenya

Abstract

Performance of hospitals is vital in addressing health related challenges. The key objective of this study was to determine the effect of High-Performance Work Practices on the performance of level 4-6 public hospitals in Kenya. Specifically, it sought to determine the effect of the following practices: performance appraisal, employee participation, employee training, and compensation. It also sought to analysis the moderating effect of Human Resource Management Professionals act, 2012 perceived compliance on the relationship between High Performance Work Practices and performance of level 4- 6 public hospitals in Kenya. The study was anchored on Strategic Human Resource Theories, Ability Motivation and Opportunity model, Resource Based View theory, Equity theory and Theory of regulatory compliance. Descriptive survey research design was used while sampling was done through stratified random sampling techniques. The research philosophy was based on positivism and the targeted population was 180 level 4-6 public hospitals in Kenya. A sample size consisted of 123 public hospitals. Data was collected through questionnaires while data analysis was done descriptively using mean and standard deviation. Inferential statistics analysis used analysis of variance, and Pearson correlation. Diagnostic analysis was done using multicollinearity, normality, outliers, homoscedasticity, and autocorrelation tests. Data was presented through frequency distribution tables and charts. Regression of coefficients showed that all the variables had a positive and significant effect on public hospital performance with the following values: performance appraisal practices (β=0.410, p=0.000); employee training practices (β=0.456, p=0.000); employee participation practices (β=0.113, p=0.029); and, compensation practices (β=0.145, p=0.000). The results also showed that Human Resource Management Professionals

act 2012 perceived compliance is a good moderator of the relationship between High Performance Work Practices and performance of public hospitals, with F statistic of 226.908 and the reported p-value 0.000. Study conclusion: All the variables had a positive and significant effect on public hospital performance with employee training practices having the highest impact. Study recommendation: Policy makers should formulate policies that reinforce the need for training, networking skills and employee’s specific jobs. Additionally, managers should focus more on employee training practices for optimum performance.