OUTSOURCING COMPENSATION AND PERFORMANCE MANAGEMENT POLICIES AND EMPLOYEE PERFORMANCE AT TOTALENERGIES MARKETING KENYA PLC, MOMBASA COUNTY KENYA
Abstract
A variety of factors influence how organizations manage their Human Resource operations, thereby shaping their Human Resource Outsourcing strategies. These factors can include the legal environment, market dynamics, globalization, economic shifts, advancements in technology, competitive pressures, evolving business needs, and strategic HR management. HR policies are crucial for helping organizations achieve their strategic objectives, particularly in the fast-paced and competitive energy sector. The study explored the effect of Outsourcing compensation and performance management policies on employee performance at TotalEnergies Marketing Kenya PLC, Mombasa. The theoretical framework was based on Maslow's Hierarchy of Needs, Agency Theory, and Knowledge-Based Theory. The research adopted a descriptive research design, utilizing both qualitative and quantitative data collection methods. The study focused on 210 respondents, including section managers, section supervisors, and outsourced employees. To obtain a representative sample, 63 participants were selected using a stratified simple random sampling method. Data was collected through semi-structured questionnaires, with a pilot study conducted on 6 participants. Validity was assessed using content and construct types, while reliability was tested using Cronbach's Alpha, aiming for a threshold of 0.7. Data analysis was performed using SPSS, employing descriptive and inferential statistics such as means, ranges, and standard deviations and results were presented through graphs, tables, and charts. Findings indicated that outsourcing staffing enhanced recruitment efficiency, boosted morale, and reduced turnover, fostering a competent and stable workforce. Compensation policy outsourcing showed mixed outcomes: it improved payment accuracy and performance but raised concerns about transparency, fairness, and job satisfaction. Performance management outsourcing was largely positive, enabling continuous feedback, clearer roles, training identification, stronger relationships, and greater autonomy.
Key Words: Outsourcing, Performance Management, Compensation, Policies
CITATION: Achieng, M.& Makhamara, H. F. (2025). Outsourcing compensation and performance management policies and employee performance at TotalEnergies Marketing Kenya Plc, Mombasa County Kenya. The Strategic Journal of Business & Change Management, 12 (2), 1429 – 1441. http://dx.doi.org/10.61426/sjbcm.v12i2.3282
Full Text:
PDFReferences
African Union. (2008). African Charter on Human and Peoples' Rights. African Union.
Armstrong, M., & Taylor, S. (2023). Armstrong’s handbook of human resource management
Briscoe, D., Schuler, R., & Tarique, I. (2012). International Human Resource Management:
Cascio, W. F. (2019). Managing human resources: Productivity, quality of work life, profits (10th ed.). McGraw-Hill Education.
Casteel, A., & Bridier, N. L. (2021). Descriptive phenomenological data collection and data analysis techniques for research in psychology. SAGE Open, 11(2), 21582440211007467.
Click, R. L., & Duening, T. N. (2004). Business process outsourcing: the competitive advantage. John Wiley & Sons.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage Publications.
Dessler, G. (2023). Human resource management (17th ed.). Pearson.
DeVellis, F. (2017). Scale development: Theory and applications (4th ed.). Sage Publications.
Domberger, S. (1998). The Contracting Organization: A Strategic Guide to Outsourcing. Oxford: Oxford University Press.
Faiza, A., & Nazir, S. (2015). Employee Performance: Theoretical and Practical Approaches.
Foot, M., & Hook, C. (2016). Introducing human resource management (Seventh Edition). New York: Pearson.
Fox, C., Webster, B. D., & Casper, W. C. (2018). Spirituality, Psychological Capital and Employee Performance: An Empirical Examination. Journal of Managerial Issues, 30(2), 194–213.
Gile, P. P. (2013). The effect of human resource practices on employee performance in hospitals: A systematic review. Working Paper of Public Health, 2(1). doi:10.4081/wpph.2013.6756
Glaister, A. J. (2014). HR outsourcing: the impact on HR role, competency development and relationships. Human Resource Management Journal, 24(2), 211–226. doi:10.1111/1748-8583.12031
Grant, R. M. (1996). Towards a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109-122.
International Association of Outsourcing Professionals. (2013, February 19). IAOP honors outsourcing Hall of Fame inductees. Retrived from https://www.iaop.org/Content/23/196/3623
Ivancevich, J. M. (2013). Human resource management (12th ed.). McGraw-Hill Education.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Laura Mann, M. G. (2014). The Internet and Business Process Outsourcing in East Africa. Retrieved Dec 13, 2016, from Value Chains and Networks of Connectivity-Based: https://www.oii.ox.ac.uk/archive/downloads/publications/The_Internet_and_Business _Process_Outsourcing_in_East_Africa.pd
Lesmana, M., & Putri, L. (2018). The Influence of University Incentives and Policies on Lecturer Performance in Research and Community Service. Journal of Management Science Research, 2(3).
Lewis, D. (2018). The pros and cons of outsourcing HR. People Management (online).
Mugenda, O., & Mugenda, A. (2008). Research Methods: Quantitative and Qualitative Approaches. 2, 89–91.
Ogola, P. (2014). The Relationship between Outsourcing and Organizational Performance in the Book Publishing Industry.
Penrose, E. T. (1959). The Theory of the Growth of the Firm. Oxford University Press. Policies and Practices for Multinational Enterprises.
Taylor & Francis. practice (16th ed.). London, England: Kogan Page.
Reichel, A., & Lazarova, M. (2013). The effects of outsourcing and devolvement on the strategic position of HR departments. Human Resource Management, 52(6), 923–946. doi:10.1002/hrm.21577
Roberts, Z. (2001). Outsourcing and e-HR were Expanded. People Management, 10, 198–208.
Schuler, R. S., & Jackson, S. E. (2012). Human resource management and organizational effectiveness: Yesterday and today. Journal of Management, 39(4), 1388-1423.
Setyawan, A. (2018). Analysis of Factors Affecting Employee Performance (Case Studies in Three Batam and Karimun Freelance Fabrication Companies). Journal of Accounting and Management Innovation, 2.
Shapiro, S. P. (2005). Agency theory. Annu. Rev. Sociol., 31(1), 263-284.
Simons, J. A., Irwin, D. B., & Drinnien, B. A. (1987). Maslow’s hierarchy of needs. Retrieved October, 9(2009), 222.
Sowa, J. E. (2017). The nonprofit Human Resource Management Handbook: from theory to practice. Routledge.
TotalEnergies Marketing Kenya PLC annual report & financial statements 2022.
TotalEnergies Marketing Kenya PLC. (n.d.). Home. Retrieved from https://totalenergies.ke/
Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering results. Harvard Business School Press.
Wachira, W. (2016). Viewing the impact of outsourcing from a Kenyan Perspective. Asian.
DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3282
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.