INFLUENCE OF SEPARATION PROCESS ON THE PERFORMANCE OF THE SELECTED PARASTATALS IN KENYA

Martina Wato Yattani

Kenyatta University

Dr. Julius Ochieng Olayo

Kenyatta University

CITATION: Yattani, M., W. & Olayo, J., O. (2019). Influence Of Separation Process On The Performance Of The Selected Parastatals In Kenya. International Journal of Strategic Management. Vol. 8 (1) pp 1 – 15.

ABSTRACT

Most organizations effect employee separation programme with an aim of improving productivity and performance, increase competitiveness, decrease costs and improve quality. However, a number of separation processes in several Parastatals have negated this position. Some unexpected undesirable results have attracted both theoretical and practical experts’ attention to the output of separation and the main questions involved in managing separation. The study sought to determine the influence of separation process on the performance of the selected Parastatals in Kenya. The study analyzed six Parastatals in Kenya. Qualitative data was collected using questionnaires from 96 employees of the affected Parastatals. Regression analysis and independent t-test was used to analyze the data. A questionnaire was used to collect data from ninety six employees sampled through stratified random sampling. Linear regression and independent t-test were used to test the relationship between the independent and dependent variable. From the findings discussed above, the benefits of separation as envisioned in the structural adjustment programme are yet to be met by the affected Parastatals. The study found out among the identified four processes; ‘payment of dues’, ‘exit interview’, ‘handing over’, ‘transfer of knowledge ’and‘ separation processes, the study found insignificant relationship between the processes and organization performance. Therefore it can be concluded that separation programme at first instance does not influence organization performance rather it gives way for other organizational processes such as restructuring that in turn affect organization performance. Then the key driver for improving performance could not be identified from the singled out separation issues. The study recommends that employers manage the separation strategy in such a way that it minimizes disadvantages, whereas employee separation may be desirable in instances where employees underperform or whose skills are not matched with the organization’s mandate or goals, managers should limit the turnover rate of employees and ensure key employees are retained in the organization. Further the new employers should undergo a thorough vetting to ensure organizations tap best talent that can be retained in the long run in the organization.

Key Words: Employee Separation, Separation Process, Performance, Parastatals

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