Strathmore University SU+ @ Strathmore University Library Electronic Theses and Dissertations 2018 Analysis of talent management strategies and its influence on the performance of Non- Governmental Organizations in Kenya Eunice A. Ogolo Strathmore Business School (SBS) Strathmore University Follow this and additional works at https://su-plus.strathmore.edu/handle/11071/6014 Recommended Citation Ogolo, E. A. (2018). Analysis of talent management strategies and its influence on the performance of Non-Governmental Organizations in Kenya (Thesis). Strathmore University. Retrieved from http://su-plus.strathmore.edu/handle/11071/6014 This Thesis - Open Access is brought to you for free and open access by DSpace @Strathmore University. It has been accepted for inclusion in Electronic Theses and Dissertations by an authorized administrator of DSpace @Strathmore University. For more information, please contact librarian@strathmore.edu i ANALYSIS OF TALENT MANAGEMENT STRATEGIES AND ITS INFLUENCE ON THE PERFORMANCE OF NON-GOVERNMENTAL ORGANIZATIONS IN KENYA EUNICE OGOLO Submitted in partial fulfillment of the requirements for the award of a Master’s in Business Administration (MBA) Degree of Strathmore Business School MAY, 2018 This dissertation is available for Library use on the understanding that it is copyright material and that no quotation from the thesis may be published without proper acknowledgement. ii DECLARATION I declare that this work has not been previously submitted and approved for the award of a degree by this or any other university. To the best of my knowledge and belief, the dissertation contains no material previously published or written by another person except where due reference is made in the thesis itself. © No part of this thesis may be reproduced without the permission of the author and Strathmore University Eunice Ogolo May 2018 Approval The dissertation of Eunice Ogolo was reviewed and approved by: Dr. Joseph Onyango (Supervisor) Strathmore Business School Dr. George Njenga Dean, Strathmore Business School Prof. Ruth Kiraka Dean, School of Graduate Studies Strathmore University iii ABSTRACT Effective talent management is a critical factor in the performance of any organization. Non- Governmental organizations depend on reliable and dedicated workforce to achieve their social missions in order to gain legitimacy with a broad range of stakeholders, manage the dependence on donors and reconcile diverse performance expectations. Yet they often experience difficulties in recruiting and retaining top quality workers given their unique context, including reliance on time-bound donor funding. Although NGOs are increasingly being deliberate on strategic talent management, a lot more need to be done. This research analyzed talent management strategies among NGOs in Kenya and how these influence their performance. The specific objectives were: to determine the influence of employee attraction strategies on non-governmental organizations’ performance; to evaluate the influence of Training and Development on non-governmental organizations’ performance; to assess the influence of Employee Retention on non-governmental organizations’ performance and to explore the influence of Employee relation on non-governmental organizations performance in Kenya. The study applied quantitative research method using departmental questionnaire survey. The target population comprised of 47 departmental heads within the 17 Non-governmental organization funded by the UK Department for International Development (DFID) in Kenya. Since the number was manageable, the sample size was all the 47 departmental heads. SPSS was used for data analysis and interpretation of the data was done using quantitative methods according to the research objectives and research questions. The data collected was summarized, classified, tabulated and analyzed quantitatively. The study found that non-governmental organizations in Kenya are increasingly putting in place measures to ensure that they attract, train, maintain and retail talent in order to achieve their objectives. Key strategies used include building positive reputation in order to attract the right caliber of employees, applying a mix of formal training as well as on the job learning, flexible working arrangement and competitive remuneration to retain employees and leadership engagement and adequate communication for employee retention. Key words: Talent management, non-governmental organizations. iv TABLE OF CONTENTS DECLARATION........................................................................................................................... ii TABLE OF CONTENTS ............................................................................................................ iv LIST OF TABLES ...................................................................................................................... vii LIST OF FIGURES ................................................................................................................... viii LIST OF APPENDICES ............................................................................................................. ix LIST OF ABBREVIATIONS ...................................................................................................... x DEFINITION OF TERMS.......................................................................................................... xi DEDICATION............................................................................................................................. xii ACKNOWLEDGEMENT ......................................................................................................... xiii CHAPTER ONE ........................................................................................................................... 1 INTRODUCTION TO THE STUDY .......................................................................................... 1 1.1 Background of the Study ............................................................................................... 1 1.1.1 Non-Governmental Organizations in Kenya ................................................................. 2 1.2 Statement of the Problem .............................................................................................. 5 1.3 Objective of the study .................................................................................................... 6 1.3.1 Specific Objectives ...................................................................................................... 7 1.4 Research Questions ........................................................................................................ 7 1.5 Justification of the Study ............................................................................................... 7 1.6 Scope of the Study .......................................................................................................... 8 CHAPTER TWO .......................................................................................................................... 9 LITERATURE REVIEW ............................................................................................................ 9 2.1 Introduction ....................................................................................................................... 9 2.2 Theoretical Framework .................................................................................................... 9 2.3.1 Employee Attraction Strategy ....................................................................................... 11 2.3.2 Employee Training and development Strategy ........................................................... 11 2.3.3 Employee Retention Strategy ........................................................................................ 12 2.3.4 Employee Relations Strategy ........................................................................................ 13 2.3.5 Non-Governmental Organization Performance .......................................................... 14 2.4 Conceptual Framework .................................................................................................... 14 2.5 Empirical Review ............................................................................................................ 16 2.6 Research Gap ..................................................................................................................... 16 2.7 Summary ............................................................................................................................ 17 v CHAPTER THREE .................................................................................................................... 18 RESEARCH METHODOLOGY .............................................................................................. 18 3.0 Introduction ....................................................................................................................... 18 3.1 Research Design................................................................................................................. 18 3.2 Population of the study ..................................................................................................... 18 3.3 Sampling Frame ................................................................................................................ 18 3.4 Sample and Sampling Technique .................................................................................... 19 3.5 Data Collection Procedure................................................................................................ 19 3.6 Pilot Testing ....................................................................................................................... 20 3.6.1 Validity ............................................................................................................................ 20 3.6.2 Reliability ........................................................................................................................ 20 3.8 Data Processing and Analysis........................................................................................... 22 3.8.1 Quantitative Data Analysis ............................................................................................ 22 3.8.3 Data Analysis Methods .................................................................................................. 22 CHAPTER FOUR ....................................................................................................................... 23 RESULTS AND DISCUSSION ................................................................................................. 23 4.0 Introduction ....................................................................................................................... 23 4.2 Response Rate .................................................................................................................... 23 4.3 Talent Management Strategies ........................................................................................ 27 4.3.1 Employee Attraction Strategies. ................................................................................... 29 4.3.2 Employee Training and Development .......................................................................... 31 4.3.3 Employee Retention ..................................................................................................... 33 4.2.4 Employee Relations ...................................................................................................... 36 4.3.5 Performance of Non-Governmental Organization ....................................................... 38 CHAPTER FIVE ........................................................................................................................ 42 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ............................................ 42 5.1 Introduction ....................................................................................................................... 42 5.2 Summary ............................................................................................................................ 42 5.2.1 Employee Attraction and Retention Strategies ............................................................. 42 5.2.2 Training and Development Strategies .......................................................................... 43 5.2.3 Employee Retention Strategies ..................................................................................... 43 5.2.4 Employee Relation Strategies ....................................................................................... 44 5.2.5 Non-governmental Organizations’ Performance .......................................................... 44 5.3 Conclusions ........................................................................................................................ 45 vi 5.4 Recommendations ............................................................................................................. 45 5.4.1 Employee Attraction and Retention Strategies ............................................................. 45 5.4.2 Training and Development Strategies .......................................................................... 46 5.4.3 Employee Retention Strategies ..................................................................................... 46 5.4.4 Employee Relation Strategies ....................................................................................... 46 5.5 Suggestions for further Research .................................................................................... 47 REFERENCES ............................................................................................................................ 48 vii LIST OF TABLES Table 3.1 Number of non-governmental organizations funded per pillar .................................... 19 Table 4.1 Educational Qualification ............................................................................................. 25 Table 4.2 Key strategies used by organization to attract employees ............................................ 28 Table 4.3 Employee attraction Strategies ..................................................................................... 30 Table 4.4 Employee training and development ............................................................................ 32 Table 4.5 Strategies applied by the organization on employee retention ..................................... 33 Table 4.6 Employee Retention ...................................................................................................... 34 Table 4.7 Employee relations ....................................................................................................... 37 Table 4.8 Performance of non-governmental organization .......................................................... 39 viii LIST OF FIGURES Figure 1.1 Conceptual Framework ........................................................................................... 15 Figure 4.1 Response rate ............................................................................................................... 24 Figure 4.2 Gender of the Respondents .......................................................................................... 24 Figure 4.3 Management Level ...................................................................................................... 25 Figure 4.4 Work Experience ......................................................................................................... 26 Figure 4.5 Position held by respondents in an organization ......................................................... 27 Figure 4.6 Training and Development .......................................................................................... 31 Figure 4.7 Reduced Funding ......................................................................................................... 35 Figure 4.8 Relations Strategies ..................................................................................................... 36 Figure 4.9 Organization’s Productivity in terms of Service Delivery .......................................... 38 Figure 4.10 Job Accomplishment ................................................................................................. 41 ix LIST OF APPENDICES APPENDIX I- INTRODUCTION LETTER ................................................................................ 50 APPENDIX II QUESTIONNAIRE .............................................................................................. 51 x LIST OF ABBREVIATIONS CJS: coaching & job shadowing CR: Competitive Remuneration CT: class training DFID: Department for International Development ECDev: Economic Development FOT- formal online training FWA: Flexible Working Arrangement HRM: Human Resource Management NGOs: Non-governmental Organization OCED: Organization for Economic Co-operation and Development OJL: On Job Learning OR: Organizational Reputation POB: Public Benefits Organizations PHV: Poverty, Hunger and Vulnerability TDO: Training and Development Opportunities xi DEFINITION OF TERMS Talent Management Strategy: is the way of controlling the human resource in an organization to ensure fully utilization of the employee talents (Lewis & Heckman, 2006). Employee Attraction and Recruitment strategy: Attraction is the process of finding suitably qualified people to apply for job vacancies in the organization. It is a set of activities an organization uses to attract job candidates who have the needed abilities and attitudes while Recruitment is the process of generating a pool of qualified applicants for organizational job vacancies (Opatha, 2010). Employee Training and Development Strategy: Training and Development strategy is a way of enhancing the capabilities of employees through induction and continues learning new things in an organization (Stone, 2002). Employee Retention Strategy: Is a process by which employee connotes the means, plan or set of decision-making behavior put in place by Non-governmental organizations to retain their competent workforce for performance (Samuel, 2008). Non-governmental Organization: is a private organization that pursues activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development". (World Bank, 1995). xii DEDICATION I dedicate this work to my husband and Children, who have been a great source of inspiration and motivation. xiii ACKNOWLEDGEMENT I would also like to acknowledge my family members, friends and colleagues whose support made it possible for me to go through the academia process successfully. I express my gratitude to my supervisor Dr. Onyango for his professional guidance and constant motivation. I would also like to thank my classmates who have provided both emotional and academic guidance throughout this study. Above all, I thank God for giving me the gift of life to write this work. 1 CHAPTER ONE INTRODUCTION TO THE STUDY 1.1 Background of the Study The terms “talent management”, “talent strategy”, “succession management” and “human resource planning” are often used interchangeably to mean controlling the human resource in an organization so as to ensure full utilization of employee talents. It is therefore difficult to identify the meaning of talent management because of the confusion regarding definitions of the terms and the many assumptions made by authors who write about talent management (Lewis & Heckman, 2006). In a critical review of talent management literature, (Lewis & Heckman, 2006) argued that there are three different strains of thought regarding talent management. The first defines talent as a collection of typical human resource department practices, functions and activities such as recruiting, selection, development and career and succession development. Managing talent for this school of thought requires doing what human resource management has always done, but doing it faster. Second are those who define talent management as a set of processes that ensures an adequate supply of employees into jobs throughout the organization. The third perspective sees talent management beyond organizational boundaries or specific positions. Talent management can therefore be seen as the study of management that focuses on how organizations attract, hire, train, motivate and maintain employees with the aim to achieve sustainable competitive advantage in a rapidly changing global context (Decenzo & Robbins, 2010). It is a strategic and coherent approach to the management of an organization’s most valuable asset – the people, who individually and collectively contribute to the achievement of its goals. Strategic talent management is therefore a concept that defines how an organization’s goals will be achieved through people by means of human resource strategies and integrated policies and practices (Armstrong, 2008). Strategic talent management is based on three propositions: firstly, the human resources of an organization play a critical role in its success as it is a source of competitive advantage; secondly, human resource strategies should be integrated with business plans; and three, individual human resource strategies should be coherent with one another and provide mutual support (Armstrong, 2008). Effective talent management can form 2 the foundation of a high-performance work system, an organization in which technology, organizational structure, people and processes work together seamlessly to support organizational objectives (Noe, Hollenbeck, Gerhart, & Wright, 2016). Moreover, employees are increasingly demanding flexibility in the changing organizational context (Decenzo & Robbins, 2010). 1.1.1 Non-Governmental Organizations in Kenya The World Bank defines NGOs as 'private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development". (World Bank, 1995). NGOs are however diverse group organizations that defy generalization, ranging from small informal groups to large formal agencies that play different roles and take different shapes within and across varying societies (Levis, 2009). In wider usage, the term NGO can be applied to any non-profit organization which is independent from government (World Bank, 1995). NGOs are best known for two distinct but closely related types of activity – the delivery of services to people in need and the organization of policy advocacy and public campaigns to attain social transformation (Levis, 2009). Since the colonial period, non-governmental organizations have played a key role in social- economic development in Africa. The role increased after independence, following the failure of most states in Africa to act as credible providers of basic needs services to its citizens, hence prompting most donors to channel development funds through non-state organizations, especially the NGOs (Oyugi, 2004). NGOs were recognized for specific dimensions that made them the preferred channel for development aid: firstly, their focus on local level development; secondly the small-scale nature of development efforts, which emphasized looking at development as a problem of human development which should be tackled and monitored by small groups of human beings; thirdly, the integrated approach, which implied looking at the individual, her family and community as an integrated whole and designing a mix of projects that would benefit all; and fourthly, the participatory approach, which believed that the engagement of people, their environment and resources is key to sustainable development (Tandon, 2000). The global context in which organizations operate is rapidly changing in a complicated manner (Decenzo & Robbins, 2010). “The second decade of the twenty-first century is a time of severe 3 economic and geopolitical turbulence and uncertainty, accompanied by rapid developments in new technologies. The ability of organizations to anticipate shocks, trends and opportunities, and to respond rapidly in appropriate ways, is clearly vital to performance and survival” (Huczynski & Buchanan, 2013). The NGO sector has not been spared of this changing context. From the late 1980s, NGOs assumed a greater role in development, as they were discovered and applauded by international donor community as bringing new solutions to long-standing development problems characterized by inefficient government to government aid. This new attention led to large quantities of aid resources and effort at building the capacity of NGOs to scale up their work. It also led to a shift in mainstream development thinking and practice, including new concepts of participation, empowerment and gender in alleviating poverty. However, too much was expected of the NGOs, and by the end of the 1990s, it was evident that NGOs had only lived up to some of these unrealistic expectations. A global shift also occurred among donors on how they relate with the developing countries. (Levis, 2009). The vision of the NGOs sector in Kenya is to “promote the provision of goods and services in the most equitable and transparent way while being accountable to both the donors and societies they are serving” (Office of the Vice President and Ministry of Home Affairs, 2006). The government of Kenya has recognized NGOs as key stakeholders and complimentary partners in the provision of basic social services as well as contributors to the county’s Gross Domestic Product (GDP) (Office of the Vice President and Ministry of Home Affairs, 2006). In Kenya, the NGO sector is regulated and enabled by the Non-Governmental Organizations Co-ordination Board, which is a State Corporation established by the Non-Governmental Organizations Co-ordination Act (Cap 19) of 1990. The NGOs Co-ordination Board is responsible for inter alia registering, facilitating and coordinating all national and international NGOs operating in Kenya; advising the government on their contribution to national development; providing policy guidelines for NGOs to align their activities with national priorities and receiving and analyzing NGOs annual reports. In 2013, the government of Kenya developed the Public Benefits Organizations (PBO ACT) to provide for the establishment and operation of public benefit organizations (described as a voluntary membership or non-membership of individuals or organizations which is autonomous, non-partisan, and not profit-making). This is in recognition of the important role that PBOs play in serving the public good and in supporting development and social cohesion; and in realizing 4 that Kenya’s development goals depend not only on the contribution of public and private sector, but also of the PBOs. In regards to human resource, the Act provides that PBOs can only obtain entry permits for foreign employees if: the services of such employees are necessary for the proper function of the organization; no persons with comparable skills are available locally or such employees will contribute towards the training of Kenyans to obtain scientific, technical and managerial skills. 1.1.2 NGOs and performance measurement Performance measurement has become critical for nonprofit organizations as the demand for transparency and accountability has increased among donors, foundations and governments, and as they encounter increasing competition from a proliferation of a number of agencies (Kaplan, 2001). The overall purpose of human resource management is to ensure that organizations are able to achieve success through people; and that human resource practices can make a significant impact on organization performance. (Armstrong, 2008). Noe et al (2016), echoes that talent management is critical to the success of organizations. They observe that whereas managers and economists have traditionally seen talent management as a necessary expense rather than a source of value to the organization, it is increasingly acknowledged that human resource decisions such as whom to hire, what to pay, what training to offer, and how to evaluate employee performance are central to the performance of organizations. This is because, human resources have unique characteristics that contribute to sustained competitive advantage, including: i) they are valuable. High quality employees perform many critical functions that are required to meet the organization’s goals; ii) they are rare. This is particularly so for roles requiring specialist skills, knowledge and abilities. An organization may spend months looking for such skills iii) human resources cannot be imitated; and iv) human resources have no good substitutes. (Noe, Hollenbeck, Gerhart, & Wright, 2016). According to Andrzej & David (2013), organizational effectiveness is a multi-dimensional concept defined differently by different stakeholders, including a mix of quantitative and qualitative measures (Huczynski & Buchanan, 2013). As such, they recommend the concept of balanced scorecard, which is an approach to defining organizational effectiveness using a combination of quantitative and qualitative measures to assess performance. 5 “For commercial companies, effectiveness usually means ‘profit’, but this raises other issues. First, timescale is important, as improving short-term profits may damage future profitability. Second, some organizations forego profits temporarily, in order to increase market share, which contributes to corporate survival and growth. Shareholders want a return on investment; customers want quality products or services as reasonable prices; managers want high-flying careers; most employees want decent pay, good working conditions, development and promotion and job security. Environmental groups want organizations to protect wildlife, reduce carbon dioxide emissions and other forms of emissions, reduce traffic and noise levels and so on” (Huczynski & Buchanan, 2013).However, evidence show that organizational effectiveness in the nonprofit sector might be different in many ways from its counterparts in Private and public sector. In the absence of a clear financial bottom line, nonprofit organizations rely on their mission to attract resources (including employees and volunteers) and to guide decision making (Gou, Brown, & Ashcraft, 2011). The Organizations for Economic Cooperation and Development (OECD) championed an evaluation framework that seeks to enhance accountability and transparency by providing evidence about the effectiveness and impact of development aid programmes, while contributing to institutional learning and global knowledge (OECD, 2016). The framework recommends the following criteria in evaluating the performance of aid programmes: relevance, effectiveness, efficiency, impact and sustainability. It is this framework that was adopted for this study. 1.2 Statement of the Problem Nonprofit organizations need to gain legitimacy with a broad range of stakeholders, manage the dependence on donors and reconcile diverse performance expectations (Akinbola, 2013). They depend on a reliable and dedicated workforce to achieve their social missions, and yet, they often experience difficulties in recruiting and retaining top quality workers (Ban, Drahnak-Faller, & Towers, 2003). There has been growing interest in talent management among senior managers and academics alike since the late 1990s when McKinsey consultants coined the phrase “the war for talent” to underscore the key role of leaders and high potentials played in the success of leading companies (Vaiman, Scullion, & Collings, 2012). An empirical study conducted by (Gou, Brown, & Ashcraft, 2011) in Maricopa County, Azirona, explored the prevalence of 6 strategic talent management practices among nonprofit organizations as well as their organizational and contextual determinants. The study was guided by two questions: What current strategic HRM practices are used in nonprofit organizations? What organizational and contextual determinants are associated with the prevalence of such practices? Based on survey data of 229 charitable organizations, the study concluded that organizations that were larger in size and technologically savvy were more likely to implement strategic talent practices. On the contrary, smaller local affiliates are less likely to implement strategic talent practices. In a changing context, NGOs in Kenya are faced with new sets of challenges in their operations, particularly that of their own sustainability. (Tandon, 2000) (Mesch, 2010). Historically, NGOs have relied on development aid, which is mainly externally generated. Consequently, as donors increasingly change their strategies, for instance, some of them preferring to channel development aid through governments, while others narrowing their support to specific sectors, NGOs have experienced shrinking budgets and uncertainty of resources. Moreover, NGOs have had to demonstrate stronger governance systems, and show more efficiency, transparency and accountability (Tandon, 2000). Another major dilemma facing the NGOs is a tension between shorter project goals and their longer-term institutional goals. Most development aid is tied to specific projects which are time bound. It is therefore harder for the NGOs to graft longer-term plans. This uncertain flow of resources, coupled with the fact that NGOs operate in the social field, and that their target population generally expect to be understood and supported, makes human resource management crucial yet difficult (Schmidt, 2016). This study examined the talent management strategies applied by nonprofit organizations in Kenya to attract, train, maintain and retain talent, in the midst of uncertainty of resources and how these have affected their performance. 1.3 Objective of the study The overall objective of this study was to examine the influence of talent management strategies on non-governmental organizations performance in Kenya. 7 1.3.1 Specific Objectives The specific objectives of the study are: i. To determine the influence of employee Attraction strategies on non-governmental organizations performance. ii. To evaluate the influence of Training and Development strategies on non-governmental organizations performance. iii. To assess the influence of Employee Retention strategies on non-governmental organizations performance. iv. To explore the influence of Employee relation strategies on non-governmental organizations performance. 1.4 Research Questions This study sought to address the following research questions i. What is the influence of employee attraction strategies on non-governmental organizations performance? ii. What is the influence of Training and Development strategies on non-governmental organizations performance? iii. What is the influence of Employee Retention strategies on non-governmental organizations performance? iv. What is the influence of Employee relation strategies on non-governmental organizations performance? 1.5 Justification of the Study This study’s findings will be of significance to NGOs, particularly in Kenya, but also globally as it will show case strategies for managing hiring, training, maintaining and retaining employees, which is crucial in achieving the objects of NGOs. It will also help Kenya NGOs co-ordination board in supporting and regulating policies of the organization. The study will be of benefit to the partners who are the founders of NGOs where they will use the study as a mechanism to implement aid program. This paper will also help them to understand and take into account the dynamics of talent management as they design the aid programs. 8 The study will help policy makers to come up with relevant policies to support NGOs in their quest to maintain a credible workforce; as well as protect NGO employees. The findings and conclusions of this study will add value to existing literature as well as open gaps for further research work to be conducted in the field. 1.6 Scope of the Study The conceptual scope of the study examined the effects of talent management strategies on non- governmental organizations performance in Kenya. The geographical scope of the study was all the 17 Non-Governmental Organization funded by DFID in Kenya and the focus included 47 Departmental heads of the mention above NGOs in Kenya. 9 CHAPTER TWO LITERATURE REVIEW 2.1 Introduction This chapter reviews scholarly literature related to effects of talent management strategies on the performance of non-profit organizations in Kenya. It includes Theoretical framework, Literature Review of the variables, empirical review, Critique of existing literature research gap and the summary of the chapter. 2.2 Theoretical Framework A theoretical framework is defined as a reasoned set of prepositions, which are derived and supported by data or evidence and explains a phenomenon (Mathooko et al, 2011). This research was anchored on the motivational theories including: Emotional needs theory, Theory X and Theory Y and Equity theory in assessing the effects of talent management strategies on the performance of non-profit organizations in Kenya. 2.2.1 Theory X and Theory Y The theories was developed by Douglas Murray McGregor (1960), This theory outlines two sets of motivational proposition: employees can either be motivated by financial rewards (Theory X) this theory tend to address the variable of attraction and retention where for an individual to be part and parcel in the organization fringe benefits must be put in place and the salary must be good enough for a particular task, hence NGO that travels to arid areas must be given hardship allowances and they will deliver the benefits can also be by non-financial rewards (Theory Y) where recognition for the work well done by the employees is considered vital (Vaiman et al. 2012). Managers who subscribe to Theory X believe in giving orders and direct supervision and in the motivating power of money. On the other hand, managers who subscribe to Theory Y believe in giving more autonomy and responsibility, and in the motivating power of interesting jobs. McGregor argued that Theory Y was a more accurate description of most people’s attitudes to work, and that Theory X, in practice, demotivated people. 10 2.2.2 Emotional needs theory This theory was developed by Nitin Nohria, Boris Gloyberg and Linda-Eling Lee (2008) and claims that people are driven by four basic and innate drives: the drive to acquire; the drive to bond; the drive to comprehend and the drive to defend. Organizations ability to meet the four drives contributes to employee motivation by influencing feelings of involvement, energy and initiative, satisfaction, commitment and intention to stay (or quit). Fulfilling employees drive to bond has the greatest impact on commitment, while meeting the drive to comprehend is closely linked to involvement, energy and initiative. However, the best way to improve motivation is to meet all four drives as poor showing on one drive substantially diminishes the impact of high scores on the other three. 2.2.3 Equity theory The theory was developed by Stacy Adams (1965), Equity theory is based on the perception of fair treatment. Stacy Adams argues that human beings are motivated to act in situations which we consider to be inequitable or unjust. Inequity occurs when we think that we have either less or more that we deserve. This theory explains behavior using perceptions of social comparisons. The more intense the perceived inequity, the higher the tension, and the stronger the motivation to act. Adam argues that we respond differently to “over –reward” and “under-reward”. We tend to perceive a modest amount of “over-reward” as good-luck and do nothing, while a modest “under-reward” is not so readily tolerated. Adams propose that we compare our rewards (pay, recognition) and contributions (time, effort, ideas) with the outputs and inputs of others. Equity this exist when these ratios are equal. Rewards can include a range of tangible and intangible factors: pay, status symbol, fringe benefits, promotion prospects, satisfaction, job security etc. Inputs relate to any factor that you believe you bring to the situation, including age, experience, skills, education, effort, loyalty and commitment. The relative priority of these various factors depends on the individual’s perception. 11 2.3 Talent management strategies and non-governmental organization performance This section will cover a review of the aspects of talent management strategies and organization performance, including employee attraction strategy, employee training and development strategy, employee retention strategy and employee relation strategy. 2.3.1 Employee Attraction Strategy To achieve organizational objectives, most NGOs engage both paid staff (employees) as well as individuals who offer their services for free (volunteers) (Schmidt, 2016) Employee attraction is a vital function of human resource management for any type of business organization. It is defined as the process of attracting and choosing candidates for employment (Gamage, 2014). The overall aim of recruitment and selection within the organization is to obtain the number and quality of employees that are required to satisfy the strategic objectives of the organization, at minimal cost (Ofori & Aryeetey, 2011). According to Opatha (2010) attraction is the process of finding suitably qualified people to apply for job vacancies in the organization. It is a set of activities an organization uses to attract job candidates who have the needed abilities and attitudes. Evidence has shown that larger corporations are more likely than smaller organizations to implement sophisticated employee attraction and recruitment processes, (Bacon & Hoque, 2005) with majority of smaller organizations relying on referrals and advertising as their recruitment practices of choice (Barber, Wesson, Roberso & Taylor, 1999). Gamage (2014) asserts that the quality of human resource in an organization highly depends on the quality of applicants attracted by the organization. 2.3.2 Employee Training and development Strategy Training has the distinct role in the achievement of an organizational goal by incorporating the interests of Non-governmental organization and the workforce (Stone, 2002). Increasingly, training is seen as an important factor in organizations as it increases the efficiency and the effectiveness of both employees and the organization. Training is an important factor in employee performance as it enhances the capabilities of employees (Stone, 2002). 12 As such, to improve organizational performance, NGOs are increasingly putting value and effort on employee training and development. (Iftikhar Ahmad & Siraj-ud-din, 2009). However, Amisano, 2010 argues that employee performance depends on many other factors like job satisfaction, knowledge, and management, but there is still a relationship between training and performance (Amisano,2010). Despite focusing on efficiency and cost control, NGOs should allocate adequate budget for training and development of employees as organizations become more efficient and effective as a result of appropriately trained workforce (workforce special report, 2006). There are different training methods that could be applied in an organization, including: classroom instruction, audiovisual training, computer-based training, on the job training, simulations, business games and case studies, behavior modeling and experiential programs among others (Noe, Hollenbeck, Gerhart, & Wright, 2016). They further argue that training and development design should logically begin with a needs assessment, the process of evaluating an organization, individual employees and employees’ tasks to determine what kind of training is required. Subsequently, a training program that responds to the identified needs should be designed. (Noe, Hollenbeck, Gerhart, & Wright, 2016). After the training program, or at intervals during the training, organizations should measure whether the training program has met its objectives. 2.3.3 Employee Retention Strategy Globally, the retention of skilled employees has been a serious concern to management. The desired critical measures for retention of employees have therefore become strategic to sustainable competition among Non-governmental organizations in a globalizing economy as of the third world countries. This development has dramatically changed human resource practice in the area of attracting skilled employees into organizations, and most importantly is the strategy for retaining them (Samuel, 2008). Employee retention connotes the means, plan or set of decision-making behavior put in place by Non-governmental organizations to retain their competent workforce for performance. There has been many talent management strategies provided to retain employees for the advantage of the organizations. These strategies are aimed at avoiding employee turnover. 13 Organizations rely on the expertise, knowledge, skills, and capital resource and capacity development of their employees in order to compete favorably and indeed gain competitive advantage in the international market. However, recent studies have shown that retention of highly skilled employees has become a difficult task for NGO managers due to increased competition. This behooves on management to create an enabling and sustainable critical culture and strategies to work out retention systems and structures for their existing core employees. According to Czkan (2005), the motivational strategies used to attain retention in the past are or may no longer be appropriate to motivate critically talented and mobile employees to remain, thereby increasing the rate of turnover. As such, many organizations are faced with the important task of retaining their employees as well as making sure that their employees remain loyal and committed to their organizations. Employer’s inability to retain employees brings about employee turnover and high employee turnover is costly to the organization and the economy. A research finding in the US by Ramlall (2003) indicate that the total cost of employee turnover is about 150% of an employee’s annual salary, given the cost of filling vacant positions, loss in productivity from vacant jobs and the cost of training new employees which increase operational cost of an organization. 2.3.4 Employee Relations Strategy Globally, employee relations in Non-governmental organization is a pre-requisite for organizational success in service delivery. Strong employee relations are required for high productivity and human satisfaction. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the performance of employees (Noe, Hollenbeck, Gerhart, & Wright, 2016). Strong employee relation depends upon a healthy work environment. Employee involvement and commitment in an organization normally improve with the degree of relation strategies in an organization, including incentives for employee motivation and effective communication system in the organization. Healthy employee relations lead to more efficient, motivated and productive employees which further lead to increase in production level (Huczynski & Buchanan, 2013). A study conducted by Blyton (2008) revealed that employees do not put up their best performances at workplaces when they are un-happy with management, government, or even 14 their fellow colleagues. Bad employee-employer relationship results in strike actions and lockouts. All these actions taken by employees to display their grievances only do the organization harm than good as productivity will be reduced drastically. 2.3.5 Non-Governmental Organization Performance Job performance is defined as the total expected value to the organization of the discrete behavioral episodes that an individual carries out over a standard period (Motowidlo, 2003). The Organization for Economic Cooperation and Development championed the DAC principles for evaluating the performance of development assistance (OECD, 2000). These principles include: i) Relevance, which is the extent to which the aid activity is suited to the priorities and policies of the target group, recipient and donor; ii) Effectiveness, which is a measure of the extent to which the activity attains its objectives; iii) Efficiency, which measures the outputs (qualitative and quantitative) in relation to the inputs. It is an economic term which signifies that the aid uses the least costly resources possible in order to achieve the desired results; iv) Impact, which is the positive and negative changes produced by development intervention, directly and indirectly, intended and unintended. This involves the main impacts and effects resulting from the activity on local social, economic, environmental and other development indicators; and v) Sustainability, which is concerned with measuring whether the benefits of an activity are likely to continue after donor funding has been withdrawn. Projects need to be environmentally as well as financially sustainable. 2.4 Conceptual Framework According to Mugenda and Mugenda, (2003), conceptual framework involves forming ideas about relationships between variables in the study and showing these relationships diagrammatically in the study, the main independent variables are employee attraction, employee training and development, employee retention and employee relations. The dependent variable is the Non-Governmental organization performance. For the purpose of this research, a figure 2.1 below has been developed to display on how the independent variables impact on the dependent variable. 15 Independent Variable Dependent variable Figure 1.1 Conceptual Framework Employee Attraction  Ability  Attitude  Experience  Willingness or commitment Employee Training and Development  Efficiency  Competence  Effectiveness Employee Retention  Expertise  Knowledge  Skills  Capital resource Employee Relations  Communication  Motivation  Socialization Performance of Non- Governmental Organization  Effectiveness  Efficiency  Impact  sustainability  Relevance 16 2.5 Empirical Review A study by (Vaiman, Scullion, & Collings, 2012) sought to understand the key talent management issues that emerge in the context of decision making among firms worldwide. The study concluded that some of the key factors influencing talent management decision making in the global context include: i) shortage of talent as there is increasingly intense completion for the same pool of talent by firms; ii) demographics and societal trends including declining birth rates and increasing life expectancy rates; iii) corporate social responsibility as increasingly many companies need to consider Corporate Social Responsibility (CSR) as an important element of their approach to decision making in talent management; iv) the challenge of managing diverse employee groups in a globalized environment; and v) the increasing mobility of people across geographical and cultural boundaries. The authors recognized that the study of talent management is still a relatively new and continually evolving area of research, and that more empirical studies are required to better understand talent management decision making in relation to the context in which it takes place. They recommended that further empirical research is required on the different nature of the challenges associated with the implementation of global talent management strategies and policies in a variety of different contexts. In 2013, Rana, Goel and Rastogi conducted a study entitled "Talent management: a paradigm shift in Indian public sector" with the aim to examine the talent retention practices in Bharat Heavy Electricals Limited (BHEL), a Navratna PSE of the Government of India. The study concluded that at BHEL, talent management practices are focused on competencies, knowledge, learning and increased broad group engineering and technology transference; and that effective talent management practices help the Indian public sectors in general to retain their best talent (Rana, Goel, & Rastogi, 2013). 2.6 Research Gap Several studies have been conducted on talent management as shown in this chapter. However, not much empirical study has been done on non-governmental institutions on Kenya, particularly in the recently changing global context. Further, the definition of performance management is varied and mean different things to different researchers. Motowildo, (2003) focuses on influence of Talent management on Job performance where the researcher defines job performance as the total expected value to the organization of the discrete behavioral episodes 17 that an individual carries out over a standard period” (Motowidlo, 2003). Thus, performance is defined by judgmental actions and evaluative processes. For this study, the researcher used the parameters championed by The Organization of Economic Cooperation and Development to define performance of development aid programmes i.e. effectiveness, efficiency, impact, sustainability and relevance to study the effect of talent management on the performance of non- governmental organizations in Kenya. 2.7 Summary When an organization decides to change, it should assess its current state and clearly identify its desired state checking the talent management strategy in an organization is one of the most preferable way of improving the NGOs performance. This chapter discussed the literatures that are related to the employee perception and talent management strategic change. Theories used in the explaining of the variables were also discussed. Conceptual framework has also been provided and operationalized. 18 CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction This chapter describes the various methodologies that were used in the study and includes the research design, the target population, sampling technique, data collection instrument, data collection procedures, data processing and data analysis. 3.1 Research Design A research design is the general plan of how one goes about answering the research questions Sauders, Lewis & Thornhill, (2007). To achieve the objectives of the study, a descriptive survey approach was employed in order to enable the researcher carry out in-depth investigations leading to the understanding of strategies applied by non-profit organizations to attract, train, retain and maintain employees in a way that ensures organizational performance. Survey design is a way of organizing data in strata and looking at the object to be studied in group, (Kothari, 2006). Survey design approach was selected because this could bring a researcher to an understanding of a complex issue and can extend experience or add strength to what is already known through previous research in different Department of International development. (Yin, 1997). 3.2 Population of the study Mugenda and Mugenda (2003) describes the target population as a complete set of individuals with some common characteristics to which the researcher want to generalize the results of the study. Therefore, target population of this study included the 47 departmental heads from the 17 Non-profit making organization working under the umbrella of DFID Kenya, The targeted population of this study is believed to have experience and knowledge in the area of study. A sample frame was drawn to present the elements of the entire population of this study as shown in the table 3.1. 3.3 Sampling Frame A sampling frame is a list of population units from which elements to be sampled are selected (Gill &Johnson, 2002). Denscombe (2003) emphasizes that a good sampling frame should be 19 relevant, meaning that it should contain things directly connected to the research topic, be complete by covering all relevant items, and be precise and up to date. The study intended to focus on employee attraction, Training and development, Retention and Employee relation on NGOs performance, the study dealt with all the 17 NGOs under the DFID in Kenya since they have the necessary data containing the number of personnel serving in this respective organization. 3.4 Sample and Sampling Technique According to Gay (2005), Sampling is the act, process, or technique of selecting a suitable sample, or a representative part of a population for the purpose of determining parameters or characteristics of the whole population. For this study, the entire population of 47 departmental heads from the 17 organizations funded by DFID in Kenya was included in the study. Table 3.1 shows the organizations funded under each pillar within DFID Kenya. Table 3.1 Number of non-governmental organizations funded per pillar First Tier Partners No of Partners Humanitarian pillar 2 Health pillar 3 Poverty Hunger and Vulnerability pillar 1 Governance pillar 3 Climate Change pillar 6 Economic Development 2 Total 17 Source (DFID Kenya, 2017) 3.5 Data Collection Procedure In order to meet the objective of the study, the researcher developed questionnaires to collect data. Questionnaires are used primarily in survey research, but also in experiments, field research, and other modes of observation (Singleton, Straits & Straits, 1993), for the purpose of gathering information. The questionnaires were used to obtain primary data from the sampled population. All the respondents were asked the same questions in the same order. The questionnaire contained both open and closed ended questions. Likert type scale was also included. It was standardized and completely predetermined. The main advantage of the 20 instrument is that it allows the researcher to control and focus responses to the research objectives, thereby enhancing the relevance of the data to be collected. 3.6 Pilot Testing Kothari (2004) describes a pilot test as a replica and rehearsal of the main survey which establishes the reliability and validity of the instruments. To determine and improve the validity and reliability of the questionnaires, the researcher undertook a pilot study on four (4) NGOs that are not funded by DFID but that operate in similar sectors. Mugenda and Mugenda (2003), states that a pretest sample should be between 1% and 10% depending on the sample size. The list of NGOs was obtained from the NGO coordination board website. The researcher then corrected ambiguity of questions with the assistance of the supervisor. This allowed for the preparation of the final questionnaire. 3.6.1 Validity Validity of the questionnaire was tested. According to Mugenda and Mugenda (2003), validity is the accuracy and meaningfulness of inferences, which are based on the research results. To ensure content validity, the questionnaire was subjected to thorough examination the supervisor who evaluated the statements in the questionnaire for relevance and whether they were meaningful and clear. On the basis of the evaluation, the instrument was adjusted appropriately before subjecting it to the final data collection exercise. 3.6.2 Reliability The reliability of the questionnaire was also tested. Reliability is the consistency of a set of measurement items (Cronbach, 1951). Reliability is the consistency of measurement, or the degree to which an instrument measures the same way each time it is used under the same condition with the same subjects. A measure is considered reliable if a person's score on the same test given twice is similar. The six questionnaires were coded and responses input into SPSS which was used to generate the reliability coefficient. The researcher used the most common internal consistency measure known as Cronbach’s Alpha (α) which was generated by SPSS. The recommended value of 0.7 was used as a cut–off of reliability for this study. 21 Table 3.2 Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .746 .733 5 The resulting αα coefficient of reliability ranges from 0 to 1 in providing this overall assessment of a measure’s reliability. If all of the scale items are entirely independent from one another (i.e., are not correlated or share no covariance), then αα = 0; and, if all of the items have high covariance, then αα will approach 1 as the number of items in the scale approaches infinity. In other words, the higher the αα coefficient, the more the items have shared covariance and probably measure the same underlying concept. From the analyzed data, the study’s standardized Cronbach’s alpha based on standardized items is .733 signifying that the model is highly reliable. 3.6.3 Testing and fitting the model Regression equation for establishing the NGO performance is: Y = βo + β1X1 + β2X2 + β3X3 + β4X4 + ε. Regression analysis was conducted so as to establish the association between NGO performance and four other independent variables. According to coefficient regression, a unit increase of employee attraction strategy leads to a .28 increase in performance, a unit increase of employee training and development leads to .163-unit increase of performance, a unit increase of employee retention leads to a .282-unit increase in performance and a unit increase in employee relations leads to a .272-unit increase of performance. Y = βo + β1X1 + β2X2+ β3X3 + β4X4 + ε Y=-3.94+ β1X1 + β2X2+ β3X3 + β4X4 + ε Y= -3.92+ 0.280X1+ 0.163X2 + 0.282X3 + 0.272X4 + ε 22 Where Y= NGO performance βo = Constant β1- β4 Are the coefficient regression or change induced in y by change in x X1 = Employee attraction strategies X2 = Employee training and development X3 = Employee retention X4 = Employee relations 3.8 Data Processing and Analysis Data analysis is a practice in which raw data is ordered and organized so that useful information can be extracted from it (Gall et al, 2007). Data was analyzed using both qualitative and quantitative techniques as explained in the following sections: 3.8.1 Quantitative Data Analysis Data was checked for completeness, accuracy, errors in responses, omissions and other inconsistencies. Qualitative data was analyzed by content analysis method. 3.8.3 Data Analysis Methods Data analysis is an examination of what have been collected and making deductions and inferences, (Kothari, 2005). Data was analyzed by quantitative approach. The data obtained from questionnaire was entered into a computer and analyzed using Statistical Package for Social Sciences software (SPSS version 21.0). The data was summarized and presented using tables, bars, charts, graphs and percentage. 3.9 Ethical Considerations The researcher upheld respect, transparency and clarity in the process of the study and gave respondents assurance that confidentiality was observed and data collected was used for academic research purposes only. The researcher obtained an informed consent from every respondent, from University and the permit from respective NGOs was adhered to. 23 CHAPTER FOUR RESULTS AND DISCUSSION 4.0 Introduction This chapter presents analyzed data together with discussions of the research findings. The purpose of the study was to examine the influence of talent management strategies on non- governmental organizations performance in Kenya. Data was gathered through the administration of questionnaires and interpreted according to the research questions and objectives. The data collected was both qualitative and quantitative in nature, which was analyzed using statistical Package for Social Science (SPSS version 21.0) and report were done using tables and chats and the descriptive statistics were used to analyze the data as presented here below. 4.2 Response Rate The researcher went about to collect information from the 47 respondents from the 17non- governmental organizations funded by DFID Kenya. However, 39 questionnaires were returned dully filled as was required. Only 8 questionnaires were not returned. This translates to 83 % response rate. Orodho (2009) observes that a response rate of above 50% contributes towards gathering of sufficient data that could be generalized to represent the opinions of respondents about the study problem. 24 Figure 4.1 Response rate The study also sought to know the gender of the respondents where the study found out that there were 49% of the respondents as male while 51 % were female. Figure 4.2 Gender of the Respondents The study sought to know the level of education of the respondents and from the respondent the majority of the managers had undergraduate degree. Out of the total number of females who took part in the study, 15% had diplomas, 50% had a first degree and 35% had masters’ degree. On the other hand, 10.5% of the males had diplomas, 47.4% had degrees and 42.1% others had masters’ degree. Returned Questionnaires 83% Questionnaires not returned 17% MALE 51% FEMALE 49% 25 Table 4.1 Educational Qualification Total Diploma Degree Masters What is your gender Female 3 10 7 20 Male 2 9 8 19 Total 5 19 15 39 On the management level of the respondents, the study found out that the 56.41 % of the respondents were in top-level management of their respective NGOs while 43.59% of the respondents were in the Middle management. This led to the conclusion that all the respondent had were conversant with how talent management strategies are being handled in their organization. Figure 4.3 Management Level Top level 44% Middle level 56% Management level 26 As for duration of service in the respective organizations, the study revealed that 26.64% of the respondents have been in the organization for between 0-3 years, 33.33% for between 4-6 years, 28.21% for between 7-10 years and 12.82% for a period of 11 years. Figure 4.4 Work Experience As to how long each respondent had been on the current position, the study found out that 53.80% of the respondents have been in the position for between a period of 0-3 years, 28.20% for a period between 4-6 years, 12.80% for a period between 7-10 years and only 5.10% for a period of 11 years and above, as shown in figure 4.5 below. 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 0-3 years 4-6 years 7-10 years 11 years & above 25.64% 33.33% 28.21% 12.82% 27 Figure 4.5 Position held by respondents in an organization 4.3 Talent Management Strategies The researcher sought to know the level of agreement from different NGOs on whether they have put good strategies for the management of employees’ talents and several questions were asked and discussions were as shown in table 4.2. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 0-3 years 4-6 years 7-10 years 11 years & above 53.80% 28.20% 12.80% 5.10% 28 Table 4.2 Key strategies used by organization to attract employees Frequency Percent Cumulative Percent Training & development opportunities / Availability of funds/ multiple donor funding 1 2.6 2.6 Competitive remuneration, flexible working arrangement, training & development opportunities 4 10.3 12.8 Organizational Reputation, Training & development opportunities, availability of funds, multiple donor funding. 1 2.6 15.4 Training & development opportunities, availability of funding, multiple donor funding 1 2.6 17.9 Organizational Reputation, competitive remuneration, flexible working arrangement, TDO 16 41.0 59.0 Organizational reputation 2 5.1 64.1 Competitive remuneration 3 7.7 71.8 Flexible working arrangement 8 20.5 92.3 Training and Development Opportunities 3 7.7 100.0 Total 39 100.0 Most organizations use a combination of strategies to attract employees. From the study, it was established that 41% of the NGOs used a combination of Organizational reputation, training and development opportunities, competitive remuneration together with flexible working 29 arrangement as the key strategies to attract employees. 20.5% of the NGOs used flexible working arrangement while 10.3% combined competitive remunerations, flexible working arrangement and training & development opportunities as a means of employee attraction. Other strategies are summarized in table 4.2. 4.3.1 Employee Attraction Strategies. The study sought to know the opinions of respondents on sufficiency of strategies in place used to attract employees in organization, where majority of the respondent summing up to 62% agreed that their organization has put in place employee attraction strategies. However, 38% felt that employee attraction was not strategically prioritized in their organizations. This supports various literature that emphasis employee attraction as a key strategy to building credible talent within organization (Gamage, 2014). The study further sought to know the kind of strategies the organization is using to achieve this and this was achieved through asking the respondents to tick their level of agreement with the following , Organizational reputation where 27% of the responded noted that through organization’s good reputation, employees get attracted, 24 % agreed that their organization attracts the employee through the means of Organizational pay scheme and stressed that through a good payment scheme they sought for the job, 22 % noted that through Staff motivation they got attracted while 27% were in concern with their Existing healthy environment and noted that they are only attracted to organization that cares about their good health. The study also sought to establish the level of agreement with the statements relating to the employee Attraction Strategies and used the scale to rate their agreement and the reactions were observed as indicated in table 4.3 below: 30 Table 4.3 Employee attraction Strategies Statement Strongly disagree Disagree Neutral Agree Strongly agree My organization values merit & capability during selection as way of attracting the right new employees 0% 2.6% 10.3% 51.3% 35.9% My organization values competitive as a way of attracting new employees 0% 0% 12.8% 48.7% 38.5% My organization strives to maintain a positive brand image as a way of attracting new employees 2.6% 0% 10.3% 59.0% 28.2% My organization encourages a flexible working arrangement in order to attract new employees 0% 0% 25.6% 51.3% 23.1% My organization has diverse funding streams as a way of attracting new employees 0% 5.1% 17.9% 56.4% 20.5% In relation to employee attraction strategies in the respective organizations of the respondents, 35.9% and 51.3% strongly agreed and agreed respectively that their organization values merit & capability during selection as way of attracting the right new employees, 38.5% and 48.7% strongly agreed and agreed respectively that their organization values competitive as a way of attracting new employees, 59% agreed while 28.2% strongly agreed that their organization strives to maintain a positive brand image as a way of attracting new employees, 51.3% agreed that their organization encourages a flexible working arrangement in order to attract new employees and finally 56.4% agreed that their organization has diverse funding streams as a way of attracting new employees. The result from the findings concurs with the findings of Henry and Temtime (2009) that recruitment is the entry point of manpower into an organization and the path an organization must ensure that they have attracted the right individuals for their culture and vibes so that the overall strategic goals are achieved. 31 4.3.2 Employee Training and Development Figure 4.6 Training and Development Training is perceived to be one of the best ways of improving organizational performance. The study found out that 41.03% indicated that their organization adopts formal online training, on job learning and conference/seminars as training tools, 20.51% only use formal online training, 12.82% use on job learning while another 12.82% use formal online training, on job learning together with coaching & job shadowing. It’s only 5.13% of the respondents who indicated that their organization only uses classroom training or coaching & job shadowing. This is described in figure 4.6 above. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 12.82% 2.56% 41.03% 12.82% 5.13% 20.51% 5.13% How does your organization conduct training and development 32 Table 4.4 Employee training and development Statement Strongly disagree Disagree Neutral Agree Strongly agree My organization has put in place formal training & development policies 0% 0% 17.9% 51.3% 30.8% My organization undertakes employee training and development needs assessment before conducting training which improves efficiency 0% 0% 12.8% 43.6% 43.6% My organization undertakes regular training to improve both technical and soft skills competencies among employees 0% 0% 5.1% 53.8% 41.0% My organization has a formal way of accessing effectiveness of training and development programs 0% 2.6% 7.7% 66.7% 23.1% Availability of funding is a key factor considered by an organization when planning for training and development activities 0% 2.6% 7.7% 59.0% 30.8% The study sought to seek the respondents’ level of agreement with some statements in regard to employee training and development strategies in their organization using a linkert scale of 1-5 (where 1-Strongly disagree, 2- disagree, 3- neutral, 4-agree, 5- strongly agree). It was established as in the table 4.4 above that 51.3% agreed & 30.8% strongly agreed that their organization has 33 put in place formal training & development policies, 43.6% both agreed and strongly agreed that their organization undertakes employee training and development needs assessment before conducting training which improves efficiency, 53.8% agreed that their organization undertakes regular training to improve both technical and soft skills competencies among employees, 66.7% agreed that their organization has a formal way of accessing effectiveness of training and development programs while 59% agreed that availability of funding is a key factor considered by an organization when planning for training and development activities. 4.3.3 Employee Retention Table 4.5 Strategies applied by the organization on employee retention Strategy Frequency Percent Valid Percent Cumulative Percent Employee compensation, Recognition and reward system, flexible working arrangement, team work, communication and feedback. 8 20.5 20.5 28.2 Employee Compensation, recognition and reward system, 6 15.4 15.4 43.6 FWA,TDP,FTW,CF 4 10.3 10.3 53.8 MP 1 2.6 2.6 56.4 Recognition and reward system 1 2.6 2.6 59.0 Flexible Working Arrangement 10 25.6 25.6 84.6 TDP 5 12.8 12.8 97.4 Fostering Team Work 1 2.6 2.6 100.0 Total 39 100.0 100.0 34 Employee retention has been perceived to be a factor that influences performance of organizations. The study sought to find out from the respondents the strategies that their organization put in place to retain the employees within the organization. It was established that 25% of the respondents indicated that their organization uses flexible working arrangement as a strategy to retain employees, 20.5% said that their organization use a combination of employee compensation, recognition and reward system, flexible working arrangement, fostering team work and communication & feedback to retain their employees. This is summarized in the table 4.5 above. Table 4.6 Employee Retention Statement Strongly disagree Disagree Neutral Agree Strongly agree My organization has an elaborate & comprehensive employee retention policy 2.6% 2.6% 30.8% 46.2% 17.9% My organization values expertise and strives to retain key talents 0% 0% 30.8% 46.2% 23.1% The organization's internal recruitment policy helps to raise the loyalty and morale of our employees and thus retain employees 0% 0% 28.2% 51.3% 20.5% My organization ensures sufficient capital resource in order to retain employees 0% 5.1% 17.9% 48.7% 28.2% Availability of funding determines the number of staff retained in my organization 0% 2.6% 17.9% 41.0% 38.5% The study while seeking to find out the views of the respondents in regard to employee retention found out that 46.2% agree that their organization has an elaborate & comprehensive employee 35 retention policy, 46.2% agree that their organization values expertise and strives to retain key talents, 51.3% agree that their organization's internal recruitment policy helps to raise the loyalty and morale of our employees and thus retain employees, 48.7% agreed that their organization ensures sufficient capital resource in order to retain employees and finally 41% agreed that availability of funding determines the number of staff retained in my organization. Table4.6 above gives finer details of other responses in regard to the various statements that were asked. Figure 4.7 Reduced Funding The study found out that 64.10% of the respondents are in agreement that their organization has in the past declared staff reluctant due to reduced donor funding while 35.90% indicated that their organization has never declared staff reluctant due to reduced donor funding. This is as in figure 4.7 above. This confirms that availability of donor funding affects the ability of NGOs to retain talent. 64.10% 35.90% Has your organization ever declared staff reluctant due to reduced donor funding Yes No 36 4.2.4 Employee Relations Figure 4.8 Relations Strategies The study sought to find out the relation strategies that the organizations in which the respondents are use. It was found out that 33.33% of the respondents indicated that their organization use adequate communication strategy and an equal percentage use a combination of leadership engagement, adequate communication, rewards & recognition and accountability & performance. 17.95% of the respondents’ organizations use a combination of adequate communication, rewards & recognition and accountability & performance as relations strategies. It was equally established that 10.26% use rewards & recognition, 2.56% use proper dispute resolution mechanisms and another 2.56% use corporate social responsibility as employee relations strategy as shown in the figure 4.8 above. 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% LE,AC,RR,AP AC,RR,AP RR AP PDRM CSR 33.33% 17.95% 10.26% 33.33% 2.56% 2.56% What relations strategies does your organization use 37 Table 4.7 Employee relations Statement Strongly disagree Disagree Neutral Agree Strongly agree My organization has an elaborate and comprehensive employee retention policy 0% 2.6% 5.1% 74.4% 17.9% My organization uses effective communication platforms to handle employee issues and increase organizational productivity 0% 0% 28.2% 38.5% 33.3% My organization constantly motivates employees to increase loyalty and morale of employees 0% 0% 33.3% 41.0% 25.6% My organization has a rich socialization culture which builds teamwork and keeps employees motivated 0% 0% 20.5% 41.0% 38.5% Availability of donor funding determines the scope of employee relation activities that my organization can undertake 5.1% 2.6% 23.1% 35.9% 33.3% While seeking the respondents’ views in regard to statements on employee relations, the study found out that 74.4% of the respondents are in agreement that their organization has an elaborate and comprehensive employee retention policy, 38.5% agreed that their organization uses effective communication platforms to handle employee issues and increase organizational productivity, 41% agreed that their organization constantly motivates employees to increase loyalty and morale of employees and finally 35.9% agreed that availability of donor funding determines the scope of employee relation activities that my organization can undertake. These together with other responses are summarized in table 4.7 above. 38 4.3.5 Performance of Non-Governmental Organization Figure 4.9 Organization’s Productivity in terms of Service Delivery While assessing the respondent’s organization’s productivity in terms of service delivery, 58.97% of the respondents indicated that it is improving while 41.03% said that it is constant. No respondent indicated that their organization’s productivity in terms of service delivery is deteriorating as in figure 4.3.5 above. 58.97% 41.03% What is your assessment of your organization's productivity in terms of service delivery Improving Constant 39 Table 4.8 Performance of non-governmental organization Statement Strongly disagree Disagree Neutral Agree Strongly agree The programs implemented by my organization are valid and relevant 0% 2.6% 23.1% 28.2% 46.2% The programs implemented by my organization has a long term impact which continues after donor funding ends 0% 0% 25.6% 28.2% 46.2% Activities and outputs of the programs in my organization are consistent with the overall goal and objectives of the organization 0% 0% 23.1% 46.2% 30.8% The activities that my organization engages in are cost-efficient 0% 0% 30.8% 33.3% 35.9% Objectives of my organization are usually achieved on time and efficiently 0% 0% 20.5% 48.7% 30.8% The objectives of my organization are usually achieved effectively 0% 0% 30.8% 38.5% 30.8% The importance of employees' performance must be understood by the management who must take steps to increase job intensity 0% 0% 15.4% 51.3% 33.3% When the quality of the job performed in an organization is high then the performance of NGOs is also high 0% 0% 20.5% 41.0% 38.5% The study while using a linkert scale of 1-5 (1=strongly disagree, 2=disagree, 3=neutral, 4= agree, 5= strongly agree) assessed the level of agreement of the respondents in relation to their organization’s performance. It was established that 46.2% of the respondents strongly agree that 40 the programs implemented by their organization are valid and relevant, another 46.2 strongly agreed that the programs implemented by their organization have a long term impact which continues after donor funding ends, 30.8% strongly agreed that activities and outputs of the programs in their organization are consistent with the overall goal and objectives of the organization, 35.9% strongly agree that the activities that their organization engages in are cost- efficient, 30.8% strongly agree that objectives of their organization are usually achieved on time and efficiently as well that the objectives of their organization are usually achieved effectively. 33.3% of the respondents strongly agreed that the importance of employees' performance must be understood by the management who must take steps to increase job intensity and finally 38.5% of the respondents strongly agreed that when the quality of the job performed in an organization is high then the performance of NGOs is also high. These are summarized in table 4.8 above. 92.31% 7.69% Does success or failure of an organization depend on job accomplishment Yes No 41 Figure 4.10 Job Accomplishment When asked if success or failure of an organization depends on job accomplishment, 92.31% of the respondents agreed as shown in figure 4.10 above. 42 CHAPTER FIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 5.1 Introduction This chapter presents the summary, conclusions and recommendations of the study. The aim of these conclusions is to answer the research questions, and recommendations are for improvement, then suggestions for the future study are presented. The main purpose of the study was to examine the influence of talent management strategies on non-governmental organizations performance in Kenya 5.2 Summary 5.2.1 Employee Attraction and Retention Strategies The study sought to find out the influence of employee Attraction and Recruitment strategies on non-governmental organizations. A majority of the respondent were in agreement that their organizations have put in place some strategies to address the issue of talent management. The study further sought to know the kind of strategies the organization is using to achieve this, with most respondents indicating organizational reputation as a key factor to attract employees. Some of the respondents noted that their organization attracts the employee through the means of Organizational pay scheme and stressed that through a good payment scheme they sought for the job, few noted that through Staff motivation they got attracted and Existing good healthy environment where organization that cares about their good health is more likely to get different people coming to work with them. 43 5.2.2 Training and Development Strategies The study sought to find out influence of Training and Development strategies on non- governmental organizations performance and the findings revealed that through organizing internal training of the employees they find it good and feel accepted in the organization, majority respondent also agreed that training is equally important, employees achieve the skills to perform their jobs enabling them to reach their full potential and higher levels of productivity. On training the study further showed that the organization acquires knowledge externally by frequently sending employees to various seminars, workshops and conferences. The study also revealed that research and development is an important first step to identify the relevant talents that the organization needs for the current and future performance. It is important to capture tacit knowledge this helps in organizing and refining the talents and make it easier to find the relevant area an employee should be assigned to, while facilitating learning and problem-solving. 5.2.3 Employee Retention Strategies The study sought to find out influence of Employee Retention strategies on non-governmental organizations performance. Different views of the respondents were gathered in regard to employee retention where majority of the respondents agreed that their organization has an elaborate & comprehensive employee retention policy that deter management from revoking employees contract as they deem right for them and the policy as also provide for the channels of addressing employees grievances reducing the chances of high labor turnover, some of the respondents also agreed that their organization values expertise where they normally organize a forum for the same and strives to retain key talents, organization's internal recruitment policy also was seen to help in raising the loyalty and morale of employees and thus retain employees. It was noted that organization should ensures sufficient capital resource in order to retain 44 employees and finally availability of funding was seen as a factor that determines the number of staff retained in my organization. 5.2.4 Employee Relation Strategies The study found out influence of Employee Relation strategies on non-governmental organizations performance The study established that those with the mandate to supervise usually relates well with the subordinate staff, it was noted that information sharing across departmental boundaries is always encouraged and considered to be important and one that brings about growth not only within departments but within the organization at large. Respondents also agreed that information sharing is not embedded in the organization’s culture. Further, the study shows that meetings are used as a means of relation strategy which is vital in gaining and sharing first-hand information by sharing experience on issues and initiating wider conversations. As a motivating factor in the organizations, the study revealed that incentives are put in place to encourage good relation among employees, hence leading to continuous improvement in terms of performance; trust was also viewed as one of the important things as far as employee relation is concerned. Good communication strategies, Recognition and rewards were also viewed as the best strategies that the organization used for the good performance of the NGOs. 5.2.5 Non-governmental Organizations’ Performance While searching ways of improving the NGOs performance based on the talents management strategies in an organization, It was established that majority of the respondents agreed that programs implemented by their organization on issues relating to talent management are valid and relevant towards the increased performance of the NGOs. Respondents also stressed that programs implemented by their organization have a long term impact which continues after 45 donor funding ends, activities and outputs of the programs in their organization are consistent with the overall goal and objectives of the organization, the activities that their organization engages in are also cost-efficient, respondents also noted that objectives of their organization are usually achieved on time and efficiently as well that the objectives of their organization are usually achieved effectively. respondents finally concluded that the importance of employees' performance must be understood by the management who must take steps to increase job intensity and finally boosting the quality of the job performed in an organization leading to high performance of NGOs. 5.3 Conclusions The findings of this study concurred with most literature that point to the fact that talent management on the Non-governmental organization performance is a vital subject. Most NGOs in Kenya are increasingly aware of the importance of talent management and are putting in place strategies to help them attain these. Most NGOs in Kenya view talent management in a broad manner to include attracting employees, training them and retaining them in order to attain organizational objectives. The NGOs apply a mix of strategies in attracting and retaining talent. It was also evident from this study that most NGOS is Kenya depend on donor funding, and that availability of donor funding largely determines the kind of talent management strategies that they implement. The findings of this study will help other institution on handling talent management on achieving organizational goals by fully utilized the employee talents. 5.4 Recommendations 5.4.1 Employee Attraction and Retention Strategies For an organization to attract more potential workers, it is recommended that the use of good reputation to attract their employees should be done well, they should make employees feel 46 attracted, organizational should also have a well payment scheme where salaries bonuses and other benefits are organized in a manner that are congruent with the employee contribution in an organization. Staff should always get motivated since motivation is one of the best strategies to use while intending to retain the employees, Existing good healthy environment where organization cares for the good health of its employees and this will always attract different people coming to work in an organization. 5.4.2 Training and Development Strategies Training and Development should be done well and it is recommended that internal training of employees be done any time new employee is employed to serve in an organization this will always contributes towards increased and efficient performance of the organization leading to realization of good performance of Non-governmental organization. 5.4.3 Employee Retention Strategies On employee retention it is recommended that the organization should put in place strategies that will retain the employees within the organization, organization should use flexible working arrangement as a strategy to retain employees and this will improve the organization performance, compensation, recognition and reward system should be offered to hardworking employees, flexible working arrangement, fostering team work, communication & feedback to retain employees should be a key issue to be addressed and through all this it will retain the existing employees. 5.4.4 Employee Relation Strategies On employee relation it is recommended that information Sharing be the major issue to be addressed because through knowledge sharing organization is deemed to be encouraging good 47 relation and is the best thing organization should focus since this will leads to willingness by the employees to deliver more to the organization. 5.5 Suggestions for further Research The issue of Talent management on the performance of Non-governmental organization under the umbrella of DFID had been in the verge of research and upon considering findings from this study it will be of great importance to suggest that a further research should be done specifically on the Application of Talent management strategies on organizational performance to other industries rather than NGOs and this will provide a basis for the improvement and proper utilization of the employee talents in all sector of the industries. 48 REFERENCES Akinbola, K. 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Taylor & Francis Limited, on behalf of Oxfam GB, 319 - 329. Vaiman, V., Scullion, H., & Collings, D. (2012). Talent Management Decision Making. Management Decisions, 925-941. World Bank. (1995). Working with NGOs. Washington: World Bank. 50 APPENDIX I- INTRODUCTION LETTER Date: …………… Dear Respondent, I am a graduate student of master degree of Business administration of Strathmore University. I am carrying out a study on `` Examining the effects of talent management strategies on non- governmental organizations performance in Kenya’’ It would be of great value if you could share your wealth of knowledge by completing the attached questionnaire. Your answers will be handled with highest anonymity and confidentiality; this will be achieved by no indication of names. Kindly return the completed questionnaire to me. Regards, Eunice Ogolo 51 APPENDIX II QUESTIONNAIRE This questionnaire is divided into five short sections that should take only a few moments of your time to complete. Please respond appropriately in the blanks provided. This is an academic exercise and all information collected from respondents will be treated with strict confidentiality. PART A: BASIC INFORMATION (Please tick as appropriate) 1. What is your gender? Female ( ) Male ( ) 2. What is your highest educational achievement? Diploma ( ) Degree ( ) Masters ( ) Ph.D ( ) Others Specify______________________________________________ 3. Indicate your management level in this organization Top Level ( ) Middle Level ( ) 4. How long have you been working in this organization? Between 0 - 3 years ( ) Between 4 - 6 years ( ) Between 7 to 10 Years ( ) 11 years and above ( ) 5. How long have you been in the position you are holding currently? Between 0 – 3 years ( ) Between 4 – 6 years ( ) Between 7 to 10 Years ( ) 11 years and above ( ) 52 PART B: TALENT MANAGEMENT STRATEGIES ON NON-GOVERNMENTAL ORGANIZATIONS PERFORMANCE SECTION I: EMPLOYEE ATTRACTION STRATEGIES. 1. Indicate by ticking in the box key strategies used by your organization to attract employees (tick all that apply). Organizational reputation ( ) Competitive remuneration ( ) Flexible working arrangement ( ) Training and development opportunities ( ) Availability of funds/multiple donor funding ( ) Any other, please specify________________________________________________________ 2. Indicate your level of agreement with the following statement relating to employee attraction strategies in your organization, where: Strongly Agree [5] Agree [4] Neither Agree or Disagree [3 ] Disagree [2] Strongly Disagree [ 1] Statement 1 2 3 4 5 My organization values merit and capability during selection as way of attracting the right new employees. My organization values competitive as a way of attracting new employees. My organization strives to maintain a positive brand image as a way of attracting new employees. My organization encourages a flexible working arrangement in order to attract new employees. My organization has diverse funding streams as a way of attracting new employees. 3. Any other comments on employee attraction strategies in your organization? __________________________________________________________________ ___________________________________________________________________ SECTION II: EMPLOYEE TRAINING AND DEVELOPMENT 1. How does your organization conduct training and development (tick all that apply)Formal classroom training ( ) Formal Online training ( ) On the job learning ( ) 53 Conferences/seminars ( ) Coaching & job shadowing ( ) Any other, please specify______________________________________________________ 2. Indicate your level of agreement with the following statements relating to employee Training and Development strategies in your organization, where: Strongly Agree [5] Agree [4] Neither Agree or Disagree [3 ] Disagree [2] Strongly Disagree [ 1] Statement 1 2 3 4 5 My organization has put in place formal training and development policies. My organization undertakes employee training and development needs assessment before conducting training which improves efficiency. My organization undertakes regular training to improve both technical and soft skills competencies among employees. My organization has a formal way of accessing effectiveness of training and development programmes. Availability of funding is a key factor considered by my organization when planning for training and development activities. 3. Any other comments on training and development strategies in your organization? ________________________________________________________________________ ________________________________________________________________________ SECTION III: EMPLOYEE RETENTION 1. What strategies does your organization apply to retention employees? (tick all that apply). Mentorship program ( ) Employee compensation ( ) Recognition and reward system ( ) Flexible working arrangement ( ) Training and development program ( ) Fostering team work ( ) Communication and feedback ( ) Any other, please specify___________________________________________ 54 2. Indicate your level of agreement with the following statements relating to employee retention strategies in your organization, where: Strongly Agree [5] Agree [4] Neither Agree or Disagree [3 ] Disagree [2] Strongly Disagree [ 1] Statement 1 2 3 4 5 My organization has an elaborate and comprehensive employee retention policy. My organization values expertise and strives to retain key talents. The organization’s internal recruitment policy helps to raise the loyalty and morale of our employees and thus retain employees My organization ensures sufficient capital resource in order to retain employees. Availability of funding determines the number of staff retained in my organization. 3. Has your organization ever declared staff redundant due to reduce donor funding? Yes ( ) No ( ) 4. Any other comments on employee retention strategies in your organization? __________________________________________________________________________ SECTION IV EMPLOYEE RELATIONS 1. What employee relation strategies does your organization use? (tick all that apply) Leadership engagement ( ) Adequate communication ( ) Rewards and recognition ( ) Accountability and Performance ( ) Proper dispute resolution mechanisms ( ) Corporate social responsibility ( ) Any other kindly specify_________________________________________________________ 2. Indicate your level of agreement with the following statements relating to employee relation strategies in your organization, where: Strongly Agree [5] Agree [4] Neither Agree or Disagree [3 ] Disagree [2] Strongly Disagree [ 1] Statement 1 2 3 4 5 My organization has an elaborate and comprehensive employee relations policy. My organization uses effective communication platforms to handle 55 employee issues and increase organizational productivity. My organization constantly motivates employees to increase loyalty and morale of employees. My organization has a rich socialization culture, which builds teamwork and keeps employees motivated. Availability of donor funding determines the scope of employee relation activities that my organization can undertake. 3. Any other comments on employee relations strategies in your organization? ____________________________________________________________________________ SECTION V: PERFORMANCE OF NON-GOVERNMENTAL ORGANIZATION 1. What is your assessment of your organization’s productivity in terms of service delivery? Improving ( ) Constant ( ) Deteriorating ( ) 2. Indicate your level of agreement with the following statements relating to your organization’s performance, where: Strongly Agree [5] Agree [4] Neither Agree or Disagree [3 ] Disagree [2] Strongly Disagree [ 1] Statement 1 2 3 4 5 The programmes implemented by my organization are valid and relevant. The programmes implemented by my organization have a longer-term impact which continues after donor funding ends. Activities and outputs of the programmes in my organization are consistent with the overall goal and objectives of the organization. The activities that my organization engages in are cost-efficient. Objectives of my organization are usually achieved on time and efficiently. The objectives of my organization are usually achieved effectively. The importance of employees’ performance must be understood by the management who must take steps to increase job intensity. When the quality of job performed in an organization is high then the performance of NGOs is also high. 3. Does success or failure of an organization depend on job accomplishment? 56 YES [ ] NO [ ] Please justify your response _____________________________________________ 4. Please give a brief highlight of what your programmes have achieved. ___________________________________________________________________________ 5. What are the major factors that have influenced the achievement or non-achievement of sustainability of your programmes? Thank you for your time