TALENT MANAGEMENT AND PERFORMANCE OF MEDIUM SIZED FAMILY OWNED BUSINESS: CASE OF RIARA GROUP OF SCHOOLS NAIROBI CITY COUNTY, KENYA

Abstract

Lack of talent management in medium sized scale family business is a topic of interest and concern. A talented team helps organizations implement their strategic objectives and goals. The business enterprises that have failed to recognize their employees as the most important assets tend to lose out to the competition. This study, therefore, aimed to find out how talent management can affect the performance of medium sized scale family owned businesses with a focus on Riara Group of Schools. A conceptual framework of the researcher that sees strategic leadership, goal alignment, employee empowerment as well as principal of continuous improvement as factors affecting the performance of medium size family owned businesses is the base of this study. Relevant literatures were reviewed to focus on the study. In order to determine whether there is a significant relationship between the independent variable (talent management) and the dependent variable (performance of medium size family owned businesses), a descriptive research design was employed in the study. The target population of this study was 89 staff members. A semi-structured questionnaire was used for data collection and was analysed using descriptive statistics. Validity was achieved by pre-testing; reliability has been ensured by discussing the relevance of the research with the supervisor. The findings of this study were beneficial to the entrepreneurs, policy makers, researchers and other organizations that are family oriented such as partnerships and sole proprietors. The study found that relationship between strategic leadership and performance of medium sized scale family owned business is significantly positive; the relationship between goal alignment and performance of medium sized scale family owned business is significantly positive; the relationship between employee empowerment and performance of medium sized scale family owned business is positive and statistically significant; the principal of continuous improvement is positively and significantly related with performance of medium sized scale family owned business. The study therefore concludes that an increase in strategic leadership, goal alignment, employee empowerment and principals of continuous improvement causes an increase in performance of medium sized scale family owned business. The study recommends management of family businesses to embrace a good strategic leadership that will allow them to have a well-organized structure and resource allocation that allows for a well-defined career path and where there is the possibility of growth. Family businesses should create new roles and evaluate existing staff in regard to the goals and objectives of the organisation this will improve their performance and should review regularly employee development to ensure they are at par with the goals of the organization. The study also recommends organizations to empower their employees through various techniques such as fair treatment and pay, appraisals and training and development opportunities.

Key Words: Strategic Leadership, Goal Alignment, Employee Empowerment, Principals Of Continuous Improvement and Performance