Socio-Economic Factors Affecting Human Resource Management in Kenya

The Socio-Economic Factors Affecting Human Resource Management in Kenya depends on the values of management of any organization. Acceptance and implementation of organizational change ensures that employee relations management is developed.

The business environment in which employers operate is constantly changing. It is important for employees to be aware of the specific shifts in employee relations policies resulting from such changes. They should also monitor the external environment to anticipate possible changes and developments. The Socio-Economic Factors Affecting Human Resource Management in Kenya has been continuously changing over the last two decades.

The Socio-Economic Factors Affecting Human Resource Management in Kenya

Kenya faces various Socio-Economic Affecting Human Resource Management in Kenya that has adverse effects in management. They include;

·         Education,

·         HIV/AIDS,

·         Work Life Balance,

·         Workforce Diversity

Education as one of the Socio-Economic Factors Affecting Human Resource Management in Kenya

Education is one of the Socio-Economic Factors Affecting Human Resource Management in Kenya. There has been an emphasis on the importance of education that leads to improvement of the standards of living in the country. As a result of upgrading of the education sector the elite employees are very clear on what their rights are and hence the employers challenge is to ensure they comply with the law.

They risk being sued by their employees if their needs are not met. Development of human capital and expertise of firm’s workers is crucial to management. The interest in employment is moving away from manual and clerical work to knowledgeable workers who resist commands that they feel are unfair.

 HIV/AIDS as one of the Socio-Economic Factors Affecting Human Resource Management in Kenya

HIV/AIDS is also one of the Socio-Economic Factors Affecting Human Resource Management in Kenya. This pandemic is one of the most disturbing developments in the social arena. This has had effect on all aspects of the society including the economy. The effects of HIV/AIDS on the organization include death of employees and the cost of medical care.

Human Resource Management has a growing involvement of the law now than before. The issues include laws of hiring, firing, equal opportunities and conduct of industrial relations. The effect of these laws is that there is more need to follow the law to avoid legal suits and costs associated. For example a firm cannot simply fire nor discriminate against employees with HIV/AIDS without attracting legal action against management.

Work Life Balance as one of the Socio-Economic Factors Affecting Human Resource Management in Kenya

Work Life Balance is one of the Socio-Economic Factors Affecting Human Resource Management in Kenya. Many organizations are forced to develop flexible working programs due to recognition of the importance of the work life balance. The law also protects employees such that an employee is entitled to at least 1 rest day in a week and in cases where they work beyond normal working hours they are to be paid overtime for their services.

Workforce Diversity as one of the Socio-Economic Factors Affecting Human Resource Management in Kenya

Workforce Diversity is the last but not the least of the Socio-Economic Factors Affecting Human Resource Management in Kenya. The workforce is becoming very diverse. More women, minority group members and older workers are entering the work place. This changes effective management and it is very important to management as it affects employee relations in the industry.

Greater female employment gives rise to new career conflict. Marriage ties can undermine the organization and business intelligence. Worries about the family may affect performance. Disciplinary action may result from this inactive performance at the workplace. Many older employees are likely to remain in employment due to termination of traditional benefit plans.

Economic Changes in Relation to Socio-Economic Factors Affecting Human Resource Management in Kenya

The economic environment in relation to Socio-Economic Factors Affecting Human Resource Management in Kenya is influenced by the macro-economic policies. Government policies are usually in respect to the levels of employment, inflation, taxation and interest rates.

Exchange rates have an effect on employee relations in Kenya. This is because they have an impact on the relative balance of bargaining power between the buyers and sellers of labor services. In a period of high inflation, high levels of taxation and high interest rates, the stability of business in Kenya is threatened. This leads to higher levels of unemployment and a consequent reduction in employment conditions. When individuals are at work, a less favorable economic climate will impact on the relative balance of bargaining power. The government’s economic and legal policies have major implications for the outcome of employee relations behavior in Kenya.

The relative bargaining power of the employer is weakened and that of the employee is strengthened when economic policies are directed towards the creation of full employment and the maximizing of economic growth. Government policies give the highest priority to reducing inflation by lowering household and corporate spending in the homes and also reducing public expenditure.

Our article in Business Training in Kenya refers.

Conclusion on the Socio-Economic Factors Affecting Human Resource Management in Kenya

Education, HIV/AIDS, Work Life Balance and Workforce Diversity are some of the Socio-Economic Factors Affecting Human Resource Management in Kenya