EFFECT OF INTERNAL RECRUITMENT ON EMPLOYEES

PERFORMANCE. ( A CASE STUDY OF MOMBASA HOSPITAL, MOMBASA

COUNTY).

KATRA MURSAL DIRIYE

A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF BUSINESS IN

THE SCHOOL OF BUSINESS AND ENTREPRENEURSHIP IN PARTIAL
FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF DIPLOMA IN
BUSINESS ADMINISTRATION AT JOMO KENYATTA UNIVERSITY OF
AGRICULTURE AND TECHNOLOGY

MARCH, 2023

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 DECLARATION

I declare that this Research Project is my original work and has not been submitted to any other
University or institution of higher learning for examination Purpose.

Signature……………………………………. Date………………………….

KATRA MURSAL DIRIYE.

HDB111-C005-0073/2021

This Project has been submitted for examination with my approval as the University Supervisor.

Signature…………………………………….. Date………………………….

Supervisor: MR CHARLES NTHIWA

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 DEDICATION

I dedicate this research project to my family, brothers and sisters.

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 ACKNOWLEDGEMENT

I begin by acknowledging the support, advice and tireless efforts of my supervisor Madam Irene
Opicho for the indelible mark that she has imprinted in my academic life not only due to his
excellent communication skills as my supervisor, but also as an anchor on which intelligible and
inspiring Personality starts to shine in my realizing the dreams and self-actualization endeavors.

Special gratitude also goes to my parents for standing by my side in the quest for education.
Thank you Lord and thank you all.

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 TABLE OF CONTENTS

DECLARATION......................................................................................................ii

DEDICATION.........................................................................................................iii

ACKNOWLEDGEMENT......................................................................................iv

LIST OF TABLES................................................................................................viii

LIST OF FIGURES.................................................................................................ix

LIST OF APPENDICES..........................................................................................x

ABSTRACT.............................................................................................................xi

CHAPTER ONE.......................................................................................................1

INTRODUCTION....................................................................................................1

1.0 Introduction..........................................................................................................1

1.1 Background to the study.......................................................................................1

1.2 Statement of the problem......................................................................................2

1.3 General objective..................................................................................................2

1.4 Specific objectives................................................................................................3

1.5 Research questions...............................................................................................3

1.6 Scope of the study................................................................................................3

CHAPTER TWO......................................................................................................4

LITERATURE REVIEW........................................................................................4

2.0 Introduction..........................................................................................................4

2.1 The concept of internal recruitment.....................................................................4

2.2 Conceptual Framework........................................................................................6

2.4 Review of variables..............................................................................................6

2.4.1 Customer and performance................................................................................6

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2.4.2 Competition and performance...........................................................................7

2.4.3 Leadership.........................................................................................................7

2.4.5 Employee Performance.....................................................................................8

2.4.6 Knowledge gaps................................................................................................8

CHAPTER THREE..................................................................................................9

RESEARCH METHODOLOGY............................................................................9

3.0 Introduction.......................................................................................................9

3.1 Research design................................................................................................9

3.2 Target population..................................................................................................9

3.3 Sample size and sampling procedure...................................................................9

3.3.1 Sampling procedure.........................................................................................10

3.4 Data collection methods and instruments...........................................................10

3.4.1 Pilot Testing.....................................................................................................10

3.4.2 Validity of instruments....................................................................................11

3.4.3 Reliability of instruments................................................................................11

3.5 Data collection procedure...................................................................................11

3.6 Data analysis procedures....................................................................................12

CHAPTER FOUR..................................................................................................13

DATA ANALYSIS, FINDINGS AND DISCUSSIONS.......................................13

4.1 Introduction........................................................................................................13

4.2 Response Rate....................................................................................................13

4.3 Data Validity......................................................................................................13

4.4 Descriptive Statistics..........................................................................................14

4.5 Correlation Analysis...........................................................................................15

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4.6 Regression Analysis and Hypothesis Testing.....................................................15

4.7 Regression Summary..........................................................................................15

4.7.1 One Way ANOVA..........................................................................................16

4.8 Regression Coefficients......................................................................................17

4.9 Discussion of Research Findings........................................................................18

CHAPTER FIVE....................................................................................................20

SUMMARY CONCLUSIONS AND RECOMMENDATIONS.........................20

5.1 Introduction........................................................................................................20

5.2 Summary of Findings.........................................................................................20

5.3 Conclusion..........................................................................................................20

REFERENCES.......................................................................................................22

APPENDICES.........................................................................................................24

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 LIST OF TABLES

Table 3.1 Sample size of the respondents................................................................10

Table 4.1: Model Summaryb....................................................................................16

Table 4.2: ANOVA..................................................................................................16

Table 4.3: Coefficientsa............................................................................................18

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 LIST OF FIGURES

Figure 2.1: Conceptual Framework............................................................................6

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 LIST OF APPENDICES

APPENDIX I: INTRODUCTION LETTER............................................................24

APPENDIX II: QUESTIONNAIRE........................................................................25

APPENDIX III: BUDGET.......................................................................................33

APPENDIX III: WORK/TIME PLAN.....................................................................34

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 ABSTRACT

The study will be used to investigate the effects on internal recruitment on employee’s
performance, Mombasa hospital Mombasa county .The study will aim at finding out how
clientele, competition, leadership and promotional strategies influenced the internal recruitment
in Mombasa County. The study will adapt a descriptive research design as a major method of
research where questionnaires will be used to collect data from a sample of Kenya youth
enterprise drawn from the three branches in the county. Data collection will be both primary and
secondary data. Primary data will be collected using questionnaires distributed to the banks
employees. They will be designed to obtain broad range of answers from respondents which will
be used to answer the research questions. The study findings will show a great influence of
clientele on the performance, followed by competition and sources of funds. Leadership and
promotional strategies will be found to have less influence on performance of the recruitment.
The study suggests to the sector players to maintain a sufficient clientele base and embrace
healthy competition in order to excel. The findings should draw the attention of scholars, the
government and the private sector to help in ensuring economic stability of this is a major sector
of the economy more so in hospitals across the country.

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 CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter highlights the background of the study, statement of the problem, objectives and
significance of the study

1.1 Background to the study

Internal recruitment refers to the process of filling vacancy within the available workers in the
organization. The study will be conducted in Mombasa hospital about the impact of internal
recruitment to the employee’s performance. It was established as treatment center for several
diseases (ministry of health 2018) Employees now days form one of the utmost important assets
that companies possess inured for them to be able to continue operating in the type of industry
that they are in, and in order to remain competitive. Therefore, it is essential for firms to continue
to fill vacant positions and employ new candidates that are of high quality while at the same time
they are often forced due to increasing population that is spurred on by, among others, factors
such as deregulation, globalization and the removal of tariffs to either cut down on their costs or
at least maintain them at an acceptable level. (Hartungi 2018)

Recruitment has therefore increasingly turned into a trade-off of a few but important variables for
profit making organizations .these include among others the explicit and implicit costs, the time
and effort spent on finding suitable candidates as well as the quality of these candidates.
Organizations are thus required to make choices in regards to what of recruitment channels they
believeis able to provide them with optimal way of finding the right candidate for a vacancy with
respect to the above mentioned variables and the requirement of the position (Russo, hassink &
Gorter 2018). A number of studies have focused on the aspect of internal recruitment.it was
estimated that twenty thousand health workers overall, with only 2929 professionally trained
medical doctors that there is use of poor recruitment.

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Employees performance because the big population is in rural areas, but different theories predict
conflicting directionality and a number of empirical studies have found inconsistence results.

As a result of government, it came up with plans to rebuild the hospital and a foundation stone
was laid by the governor Crawford on the 25th Feb 2019. Mombasa hospital has faced serious
performance challenges largely attributed to poor recruited or workers (Muthhaire and Kakembo,
2005 Mworozi and Namazzi 2019, Ministry of Health 2019).

In Mombasa hospital the practice of recruitment is used by many organizations this is because it
encourages better motivation of employees because their capabilities are considered and
opportunities offered for promotion. It is also helpful in a way that employees are more like to
stay with the organization that an external worker who is brought to do the work.

In most cases position could be filled through promotion due to experience, demotion and
transfer within the department. Mombasa hospital strives to survive because of the big number of
workers such as doctors, nurses, and laboratory attendants. It is located along side town road
which is currently called Nkrumah road. It is funded by the government so as to provide medical
services. But it tends to use internal recruitment because it acts as training school of nursing after
they retain them and work there as doctors and nurses. So this has an impact on retention where it
has one of the cheapest and simplest retention strategies available. This decreases the cost of
recruitment which has various steps to attain.

1.2 Statement of the problem.

The problem of the study is the internal recruitment of employees. Mombasa hospital normally
recruits employees internally so this increases performance but ministry of health, 2001 said that
despite the several interventions and renovations by the government to raise the stuff salaries.
The reason why the researcher chose this case study was to appreciate the employees’
performance. Cases of workers’ absenteeism from work increase in diversion of patients to
private clinics which forced the researcher to carry on a study.

1.3 General objective

The purpose of this study will be to the assess impact of internal recruitment on employee
performance in an organization, a case study of Mombasa County.

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1.4 Specific objectives

i. To examine internal recruitment policy in Mombasa Hospital

ii. To find out the internal recruitment process in Mombasa Hospital.
iii. To assess the impact of internal recruitment on employee performance in Mombasa
Hospital.

1.5 Research questions

i. Is there any form of internal recruitment policy in Mombasa Hospital?

ii. What are the various internal recruitment processes in Mombasa Hospital?
iii. Is there any effect of recruitment on employee performance in Mombasa Hospital?

1.6 Scope of the study

The results of this research might be relevant to the decision makers in the hospital. Giving them
criterion for how to manage their employees internally and what benefits do they gain through
recruiting employees internally. This study will help in the understanding and development of
internal recruitment so that organizations can apply it. The study findings will provide future
research studies that maybe aimed at filling the gaps created by this study. To the researcher and
academicians, the study findings will add on the existing body and literature on the internal
recruitment. Such literature can always be used as a point of reference by future academicians
and scholars

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
This chapter the researcher reviews what other researchers and authors are saying about the study
objectives. Literature will be reviewed from different sources such as business journals, text
books and internet sources. Literature review is in accordance to the study of objectives.

2.1 The concept of internal recruitment

The term internal recruitment channel refers to filling a vacant position with a person who is
already being employed by the organization. This is commonly done in one of the following two
ways. Firstly, the available position maybe offered to an employee directly, which is often being
done by approaching the individual without the knowledge of the other employees of the firm.
The reason for this is that the colleagues of the employee who is being offered the position may
feel overlooked or become offended, which may lead to adverse motivation effects and
consequences (Bayo- Moriones & Ortin-Angel, 2018)

Alternatively, a recruiter of the firm may make an announcement to all employees that a job
vacancy exists within the organization and that current employees are eligible to apply for the
position. Internal recruiting! Promoting is thought to be a favored recruitment technique due to a
number of reasons. Its low financial cost is thought to be one of its major advantages, considering
that no direct costs are associated with the findings of the candidate (Stone, 2019)

Moreover, in most cases the candidate will not require training, or at least not as extensively as an
external candidate, due to the knowledge that he/she already possesses of the firm’s internal
operations and processes, which provides the company with the effect of saving time as well as
indirect costs due to the fact that other employees who are on the company’s payroll list are not
required to spend time educating other individuals and are thus able to perform other duties
instead(Bayo-Moriones & Ortin-Angel,2019).

Likewise, internal recruitment! promoting may act as a strong motivational tool to existing
employees, since it provides them with a reason to work harder, considering that they will
perceive that the potential benefit of a promotion does exist. This perception has led to the
development of

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so called “tournament theory” which is based on the notion that internal promotion creates higher
results and productivity than external recruitment does. (Martins & Lima, 2019)

A further reason as to why internal recruitment methods are as perceived to be popular is that
individuals who are already being employed by the organization can be observed and their
followed, meaning that their capabilities, strength and weaknesses can assessed fairly well after a
certain time of employment within the company, while an employer’s ability to assess the
capability of external candidates is fairly limited, due to the short time that’s available to the
recruiters for observation (Bayo-Moriones & Ortin-Angel,2019).

However internal promoting! Recruiting will also have its disadvantages. External candidates are
for instance, more likely to be bring new perspectives and fresh ideas to the organizations while
internal candidates are likely to have adapted to and accepted the way that the company is
running its business. Hence employing internal recruitment may in the long run, in the absence of
using other recruitment channels, ultimately suppress innovation and creativity (Stone, 2019)

Staffsudd (2019) suggests that the more a company values having knowledge of the internal
process of the co-operation, the more it will attempt to recruit! Promote individuals internally.
Normally, while recruiting internally, the firm may look at present employees, former applicants.
Position may also be filled through as follows;

Through promotion: this is a move of the employee to a job within an organization which has a
greater importance and usually higher pay. Organizations can promote its employees through
management decisions and internal advertisement. Employees are told by notices that post is
vacant and they are invited to apply and some or all are interviewed and finally selected. But this
is particular suitable to a large organization in which management cannot be expected to have
personal knowledge of all possible candidates.

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 2.2 Conceptual Framework
The study will be guided by the following conceptual framework whose variables are shown.

Customers and performance.

-customers.
-Corporate clients
-Individual clients

Competition

-Micro-finance institutions. Employee performance

-Other youth enterprises.
-Exchange bureaus. -Profits.
-ROAA
-ROAE

Leadership
Behaviour.
-Conduct Motivation

Independent variables Dependent variable

Figure 2.1: Conceptual Framework

2.4 Review of variables

2.4.1 Customer and performance

Study by Ramlall (2019) contended that a sector is prerequisite for recruiting stability under a
internal based system. Whereas analysis of determinants of performance for the Taiwanese

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industry specific and macro-economic factors, was based on the period 2019 to 2020. Results
show that while credit risk triggers a negative impact on performance, clientele tends to
consolidate profits. In general, results suggest that Taiwanese banking system is well diversified.
The main implication of the findings is that it may be difficult to mitigate the practicality of
performance in Taiwan subject to a non-concentrated banking system. In the study of Demirguc-
Kunt and Huizinga (2019) found that better contract enforcement, efficiency of the legal system
and lack of corruption are associated with lower realized interest margins. This is because of the
reduced risk premium attached employee..

2.4.2 Competition and performance

Recent years have been marked by a shift in theory and empirical evidence on the effect of
competition on internal recruitment. While the earlier literature points predominately towards a
negative trade-off between competition soundness (e.g., Keeley, 2019; Hellmann, Murdock, and
Stiglitz, 2019 Hauswald and Marquez, 2019), recent theory and evidence suggest a positive link
between the two (Koskela and Stenbacka, 2019) Industrial organization literature indicates that
competition increases efficiency of firms (e.g.,Tirole, 2019). At the same time, the literature
suggests that more efficient have better screening and monitoring procedures in place, and are
consequently less likely to suffer from non-performing rectuitments (e.g., Petersen and Rajan,
2009; Berger and DeYoung, 2019; Williams, 2019). Based on these arguments, we see that
efficiency could be the conduit through which competition makes banks more financially sound.
The correct identification of the underlying transmission mechanism by which competition
translates into soundness has important bearing for safety and soundness regulation. First,
uncovering the primary transmission channel allows focusing regulatory and supervisory actions
more precisely.

Second, policymakers will obtain feedback on i) how changes in the regulatory environment
affect efficiency, and on how efficiency affects recruitment soundness. Third, the findings from
our analyses may indicate possible directions for future policymaking regarding competition in
internal recruitment.

2.4.3 Leadership
Study by Tejeda, Scandura & Pillai (2019) shows that transformational leaders are extensive and
are considered by many as the “most comprehensive theory of the dimensionality of the

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transformational and transactional leadership”. But Bass more clearly differentiated between
transactional and transformational leadership; whereby findings are that leaders will exhibit a
variety of patterns of transformational and transactional leadership. Studies by Farkes &
Wetlaufer (2019); Heifetz & Laurie (2019); Yukl (2019) suggest an aspect of multifaceted
approach to leadership that executive through their leadership behavior have considerable
influence on organizational outcome.

According to Greenberg and Baron (2019, 2019) definition of motivation could be divided into
three main parts. The first part looks at arousal that deals with the drive or energy behind
individual (s) action.Study conducted by Deci and Ryan (2019) showed the negative impact of
monetary rewards on monetary rewards on intrinsic motivation and performance. They also
conducted a study to examine the effects of performance contingent rewards on an employee
intrinsic motivation. Study by Woods (2019) on time management is critical for the success of
any organization and this directly affects employees’ performance and the company’s bottom
line. Becoming successful and fulfilled time management in life and reducing stress are part of

2.4.5 Employee Performance.

Employee performance is mostly eroded in privately owned and many barriers have been lifted
and regulations improved. The organizations are incorporating as a strategy to engage the huge
numbers of Africans, majority who fall under the dollar bracket (Kimeu, 2018).Despite the
sudden upsurge to lure potential clients, organizations in Africa have been doing rather well.

2.4.6 Knowledge gaps

Various bodies of literature dealing with theory research and practices have been cited. A great
deal has been known about effect of internal recruitment on employees. The following
deficiencies have been analyzed to be addressed by this study or future research. The first
deficiency, as supported by various scholars, is that most existing theories concerning factors in
developed countries are in the context of developed economies and they do not fully suit
developing countries because of the unique social, political, and economic contexts and firm
specific characteristics of emerging markets. Early studies provide the foundation of extant
economic knowledge in area of internal recruitment and model the location preferences and
location-specific. Most of the research in central and Eastern Europe are incomplete and
unsatisfactory which possess challenge of incorporating unique contextual influences into

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theoretical reasoning.

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 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction
This study will use both qualitative and quantitative methods of data collection. However the
chapter will give the description of study of population, sample size, design and selection, data
collection methods, analysis and limitations of the study.

3.1 Research design

The study will adopt a cross sectional and research design based on both qualitative and
quantitative data. Research approaches where stratified and purposive sampling selection
techniques will be used. For example, qualitative approach will investigate samples through
sampling Mombasa hospital staff members of doctors, nurse will be explained and given detailed
information about the topic. And quantitative simple random sampling will be used through the
use of sample selection.

3.2 Target population

The target Population will consist of all the one hundred employees of Mombasa Hospital. Top
managers will be chosen because they will be policy makers and provided leadership. The human
resource, finance and marketing managers will be interviewed for the purpose of the study. The
supervisors, heads of sections and the operation staff will also be targeted for the study.

3.3 Sample size and sampling procedure

In this study,the sample size will be determined using Yamane’s formular as outlined by Yamane
(2009). Simple random sampling technique will be used to obtain a sample of 150 respondents as
indicated below:

Where:

n will be the sample size

N will be the target population which in this case will be 100

e will be a standard error which will be my standard value of 0.05

Based on these figures, a sample size of 150 will be arrived at. This will be used for the study

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3.3.1 Sampling procedure
The study will adapt a systematic random sampling technique to select the sample population by
picking on odd numbered members in their branches.

After getting a sample size of 150 employees, simple random sampling technique will be used to
obtain the said sample size. To select a representative sample, the study will to first have a
sampling frame(Mugenda & Mugenda,2008).A sampling frame is a list, directory or index of
cases from which a sample could be selected from for observation in a study. In this study
therefore the sampling frame will be a list of effects of employee selection and placement.

This method of sampling will involve giving a number to every employee in all the three
branches, placing the numbers in a container and then picking any number at random. The
employee corresponding to the odd numbers will then be issued with the questionnaires

Table 3.1 Sample size of the respondents

Branch Target Population Sample size

Mombasa Hospital 100 70

Total 100 70

3.4 Data collection methods and instruments

Both primary and secondary data will be collected. Secondary data will be obtained from
published financial statements and journals while Primary data will be collected using structured
questionnaires distributed to all the subsections of the Mombasa hospital. The questionnaires will
be designed to obtain abroad range of answers from respondents, which sought to answer the
research questions. The questionnaires will comprise mainly of closed ended questions to seek
specific answers on the variables in question.

3.4.1 Pilot Testing

A minor study called pilot testing will also be conducted to standardize the instruments before
being used for data collection .The items in the research instruments will be revised according to
the results of the pilot study.

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3.4.2 Validity of instruments
Validity is the ability of an instrument to measure what it is intended to measure(Gay,2009).The
instruments will be evaluated in both content and face validity by using lecturers from University
of Jomo Kenyatta. The instruments will be given to two lecturers and two peers who will be
undertaking a similar study in different areas. The two lecturers will have a wide range in
supervising students while the two peers will be used to validate each instrument. They will be
asked to evaluate the instruments in both content and face validity. They will help to ensure that
the items in each questionnaire captures the intended information accurately according to the
objectives of the study.

3.4.3 Reliability of instruments

Reliability is the degree to which instruments give similar results for the same respondents over a
common issue at different times. The study used Spearman Brown’s prophecy formula to
calculate reliability coefficient. To ensure reliability of instruments, the split-half technique will
be used. It involved administering only one testing session and taking the results obtained from
one half of the scale items and checking them against the other of items to determine their
correlation coefficient. The formula for this test will be determined. Mugenda and
Mugenda(2008) suggests a correlation coefficient of 0.6 for such studies.

3.5 Data collection procedure

Data collection exercise using questionnaires will be undertaken by the research assistants
through interviews on 100 staffs the Mombasa hospital, Mombasa County, under the supervision
of the researcher. The data collection exercise will take a total of five continuous working days
during which the instruments will be administered. Document analysis will be carried out on the
bank’s published financial statements, Journals and reports. Before the study will be undertaken,
a project project on effects of employee selection and placement which will be developed,
presented to a panel of expert for approval. All the comments and recommendations of the panel
of experts during the defense will be incorporated in the research Project.

On approval, research instruments will be developed with the help of the supervisor. Permission
to undertake research will be sought from the National Council of Science and Technology. A
letter of introduction to each branch will be presented to warrant the research. A total of 3
research assistants will be recruited and trained on how to administer the questionnaire in the

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study area.

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The questionnaires will be used to collect data from the Mombasa hospital, Mombasa County

3.6 Data analysis procedures.

The data collected from the respondents will be coded, entered into the computer and analyzed
using Statistical package for Social sciences(SPSS).The techniques that will be used in data
analysis will include correlation analysis to the relationships among the variables, percentages
and cross tabulation.

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 CHAPTER FOUR

DATA ANALYSIS, FINDINGS AND DISCUSSIONS

4.1 Introduction
This chapter explains how data analysis is conducted by the use of a linear regression model in
order to determine the relationship between effect of Technology on public Transport System.
The findings from the analysis are hereby discussed accordingly.

4.2 Response Rate

There are more than 243 licensed public transport in Kenya as per the figures obtained in the year
2017. Some of these public road systems had not obtained licenses for all the 5 years under study.
They were only 35 road system that had all the data available for the 5 years under study. This
gives a response rate of 83% which according to Mugenda & Mugenda (2003) a response rate
above 60% is considered appropriate for data analysis and making statistical inferences.

4.3 Data Validity

In order to determine the validity of the data, diagnostic tests that included test of multi
collinearity and Durbin – Watson test of residuals was undertaken. Presence of multi collinearity
is shown by VIF value of more than 10, while presence of residuals from Durbin Watson is
shown by a value greater than 4. The values for VIF are shown in table 4.5 while Durbin Watson
value is calculated in table 4.3.

All variables have VIF values of less than 10, with the variable with the greatest VIF value being
internet banking with a VIF value of 5.11. We can therefore conclude that there is no presence of
multicollinearity in our data. On the other hand the Durbin –Watson value for our data is 1.4 that
shows that there are no residuals or autocorrelations in our data.

Heteroscedasticity in data analysis is a major concern as it can be used to invalidate the test of
significance of data. In order to undertake linear regression, one of the conditions of the data is
presence of homogeneity in the data. The variances of the groups of data should be similar. When
this condition is not met, then heteroscedasticity sets in.

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4.4 Descriptive Statistics
Descriptive Statistics explains the qualities of each variable in the form of the minimum,
maximum, mean, standard deviation, skewness and kurtosis.

The dependent variable (Y) was measured by return on assets of public road system. The data
collected for the five years shows that the public road system that had attained the highest ROA
and arguably the highest performance had 7.7% while the bank that recorded the least in the
period had a loss of -8%. The mean for all the road networks was 2.33 with a standard deviation
of 2.75. The data was negatively skewed with a moderate kurtosis that explains the sharpness of
flatness of the distribution of this data.

The dependent variable X1 that was measured by the natural log of number of transactions
undertaken through Kenya ferry was one of the measures of technology. The highest value was
9.97 while the least had recorded a value of -.69. The average was 3.83 with a standard deviation
of 2.68. This data is positively skewed with a kurtosis of -.643. The data had been scaled in form
of billions of transactions.

The other dependent variable X2 represented billions of transactions undertaken through the
construction. The natural logarithm of the variable was also determined to regularize the
regression model. The maximum value for this variable was 5.74 and the minimum was -2.3.
The mean was
2.34 with a standard deviation of 1.66. Data is positively skewed at .039 with a kurtosis of -.56.

The other independent variable was size (X3) which was measured by millions of total assets,
again the natural logarithm was used to regularize the model. The largest company recorded a
value of
13.23 while the least recorded a value of 8.22. The mean for size was 10.67 with a standard
deviation of 1.3. The data is positively skewed and a relatively flat kurtosis of -1.23.

The final independent variable was capital adequacy (X4) that was measured as the percentage of
total capital over total weighted risk on assets. The company that maintained the highest capital
adequacy had 59% while the lowest had 5%. The mean was 22.56 % with a standard deviation of
8.42%. Data is positively skewed with a high kurtosis of 2.82

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4.5 Correlation Analysis
Correlation analysis measures the relationship that exists between the variables. The study
undertakes a Pearson correlation that measures the linear relationship of variables. A correlation
of 1 shows a perfect positive correlation while correlation of 0 or value close to zero shows no
relationship or weak relationship respectively. -1 value, shows a negative perfect relationship and
values close to it have strong negative relationship.

In the table, we are interested on the correlation between the dependent variable with the
independent variables. The correlation of Effect of Technology against public transport system.
The two correlations are positive though they are weak as they are closer to zero than they are
closer to one.

Size has a positive correlation with road system. This can be attributed to economies of scale that
are enjoyed by large roads while at the same time they are able to retain vehicles more easily. The
correlation is a strong correlation as the value is closer to 1 than it is closer to 0.

Capital adequacy shows the percentage of owners’ capital over the total risk. A high value shows
that the road transport has high capital over risky assets. The relationship with is negative
showing that companies with higher capital adequacy rate tend to have lower technology. This
may be attributed to the fact that technology is supposed by law to maintain a certain minimum
capital reserve. When they comply with such requirements.

4.6 Regression Analysis and Hypothesis Testing

In order to determine the effect of technology on public transport system in Kenya, the following
linear regression model was used.

Y= β0+β1X1+β2X2 + β3X3 + β4X4 + ε

A regression analysis was undertaken that had findings as stipulated below.

4.7 Regression Summary

A regression model summary was used

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Table 4.1: Model Summaryb
Model R R Square Adjusted Std. Error Durbin-
R Square of Watson
theEstimate

1 .674a .454 .441 2.0561656 1.412

a. Predictors: (Constant), X4 = Capital Adequacy, X3 = Size, X1 = road transport,

X2 = Technology

b. Dependent Variable: Y = ROA

In the regression model summary table, the coefficient of determination that is denoted by R
squared is given by 0.454. It shows the strength in which the model is able to predict the
dependent variable. The value indicates that 45.4% of the variations can be explained by the
model. The other 55.6% can only be explained by other factors that are not in the model.

4.7.1 One Way ANOVA

In order to determine the significance of the regression model and determine whether to reject or
fail to reject the null hypothesis, a one way ANOVA is undertaken as shown in the table 4.4

Table 4.2: ANOVA

Model Sum of df Mean Square F Sig.

Squares

.000b
Regression 598.197 4 149.549 35.373

1 Residual 718.729 170 4.228

Total 1316.926 174

a. Dependent Variable: Y = ROA

b. Predictors: (Constant), X4 = Capital Adequacy, X3 = Size, X1

= public road system, X2 = Technology

Source: Author, 2018

1
The significance of the model is determined by comparing the p value with the alpha value. If the
P value is greater than the alpha value then the model is said to be insignificant while the vice
versa is true. The regression analysis is undertaken at 95 degrees of freedom which means the
alpha value is 0.05. According to table 4.4, the p value is shown as 0.000 which shows that it is
less than the alpha value. We therefore conclude that the relationship between effect of
technology on public transport in Kenya is significant.

In order to determine whether to reject or fail to reject the null hypothesis we compare the F
statistic and the calculated value of F as shown in the table 4.4. If the calculated value is greater
than the F statistic then we reject the null hypothesis. According to the topic under study, the null
hypothesis states that there is no effect of technology on road transport system in Kenya. The
calculated value of F is 35.37 while the F statistic at an alpha of 0.05 and 4, and 170 degrees of
freedom is 3.6. The calculated value is greater than the F statistic which means we reject the null
hypothesis. We therefore conclude that there is a positive significant effect of financial
technology on technology.

4.8 Regression Coefficients

The coefficients that can be used by the model in predicting the dependent variable are shown in
the table 4.5.

1
Table 4.3: Coefficientsa
Model Unstandardized Standar T Sig. 95.0% Collinearit
Coefficients dized Confidence y Statistics
Coeffici Interval for
e nts B
B Std. Beta Lower Upper Toleran VIF
Erro Boun Boun c e
r d d
(Constant) -12.880 2.010 - .000 -16.848 -8.912
6.40
8
X1 = transport -.505 .105 -.492 - .000 -.713 -.297 .306 3.269
system 4.79
8
X2 = Technology .616 .212 .372 2.90 .004 .197 1.034 .196 5.109
5
1
X3 = Size 1.409 .212 .667 6.65 .000 .991 1.828 .320 3.127
3
X4 =
Capital .030 .021 .091 1.38 .169 -.013 .072 .743 1.345
1
Adequacy

a. Dependent Variable: Y = ROA

The coefficients β0, β1, β2, β3 and β4 are given by, -12.88, -.51, .62, 1.41 and .03
respectively. The error term is denoted by 2.01. The model therefore becomes

Y= -12.88 – 0.51 X1 + 0.62 X2 + 1.41 X3 + 0.03 X4 + 2.01

This model may therefore be used to show the effect of any of the independent variable on
transport system, when the variable is increased by 1 unit and all other variables are kept
constant.

4.9 Discussion of Research Findings

The study undertook a linear regression model on data collected to determine the effect of
technology on public transport system. Diagnostic test was first conducted on the data in order to
determine presence of collinearity or presence of residuals in autocorrelations. Collinearity test
undertaken showed that all variables had VIF values of less than 10 and therefore there was no
collinearity among the variables. The Durbin Watson value was 1.4 which is less than 4 and
therefore there were no residuals or autocorrelations that would imply error in the model.
2
There was a response rate of 83.3% that was huge enough to obtain conclusions from the findings
of the data. The Pearson Correlation showed that technology transactions (which denote effect of

2
technology) had a positive though relatively weak relationship with financial performance. This
means that increase in technology would result to increase.

Regression analysis undertaken showed that the model would predict 45.4% of variations in
technology of road transport system. The other 54.6% however would be explained by other
factors not mentioned in the model. The analysis showed that p value was less than the alpha
value and therefore the relationship was significant. The null hypothesis was also rejected as the
calculated value of F was greater than F statistic. In conclusion the study found out that there is a
positive significant effect of technology on public transport.

The findings of the study support theories such as innovation diffusion theory, where technology
as a new innovation is spread throughout, in order to achieve better road network system. The
result of the study also supports the proposition by various studies that had previously been
conducted. Nyanga (2013) agreed that technology improved.

Kenya. Gitau (2011) and Kilonzi (2015) all indicates that technology on road transport creates
competitive advantage that leads to improve of various road system in various industries.

However, not all empirical studies agree with the findings of this study. In a recent study
conducted by De Young et. al (2015) suggested that use of internet on undertaking transactions in
community bank decreased the output as the volume of transactions decreased. This is a study
that draws much attention as it suggests that before implementation of finance technology
conclusive research needs to be undertaken in order to determine the level of compliance with
new technology. Factors such as perceived usefulness, ease of use and risk are important in
determining whether the concept shall be adopted by the target market.

2
 CHAPTER FIVE

SUMMARY CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction
The chapter summarizes the study, makes relevant conclusions and recommendations. It also
looks at the limitations of the study and makes suggestions for further research.

5.2 Summary of Findings

The regression analysis that was undertaken by the study showed that there was a positive
significant effect of technology on roads in Kenya. The regression model that was used however
was relatively weak as it only predicted 45.4% of technology on the public transport. The
correlation between technology is positive though relatively weak as the Pearson correlation was
closer to zero than it was closer to one.

The other independent variables in the regression model were size and capital adequacy that was
the control variables. Size has a significant correlation with technology as it is suggested that
large public road systems are able to enjoy from economies of scale. They are also able to attract
and retain clients easier than smaller that have higher risks of going under. Capital adequacy on
the other hand measured the size of capital against the weighted risk of total assets. It shows the
level in which owners’ capital finances risky assets. The findings of the study are that increase in
capital adequacy reduces effect of technology on road transport in Kenya. This could be
explained by the fact that increase in equity of technology reduces the value of the firm as
suggested by Modigliani and Miller. These firms enjoy less of tax shield that reduces their
technology on road transport.

The study found out that the p value was less than the alpha value of 0.05 as it was 0.000. The F
statistic was also less than the calculated value of F at 35.37 as the critical F value was at 3.6. The
results were used to determine the significance of the relationship between the variables and
whether or not to reject or fail to reject the null hypothesis.

5.3 Conclusion
From the findings of the study, various conclusions are made. The correlation analysis showed a
positive correlation between technology. The Pearson correlation value was 0.23 and 0.47 for
road transport and road system respectively. This means that they are both positively correlated to

2
technology though technology had a stronger correlation. It therefore follows that increasing

2
technology would lead to increase in technology. Increasing technology activity would result to a
higher increase.

The regression model had a coefficient of determination (R Squared) of 45.4%, which means that
the model could explain up to 45.4% of the variations. Other variations in the represented by
54.6% are explained by other factors outside the model. We can therefore conclude that the
model is fairly good in predicting good technology on road transport system.

2
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performance Profitability in the South Eastern European Region sector of Greece Working”
Paper
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Altunbas, Y., Gardener, E.P.M., Molyneux, P., Moore, B. (2019), "Efficiency in

European sector", European Economic Review, Vol. 45 pp.1931-55.

Athanasoglou, P.P, Brissimis, S. N & Delis, M.D (2019), employee specific Industry specific
and Macroeconomic Determinants of Employee Profitability of Greece working paper 25, P.
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Berger N A., young D.R., &Udell F. G (2019),”Efficiency Barriers to the consolidation of

European Financial services Industry”. European Employee Management,Vol.7 No.1,pp.117-
130.

Berger. A. N., and David B. Humphrey. D (2019), "Efficiency of Financial Institutions:

International Survey and Directions for Future Research," European Journal of
Operational Research, VOL.98, PP. 175-212.

Berger. G.D ., Linda G., & Kinney. D (2020) “foreign and domestic employee participation
emerging markets; lessons from Mexico and Argentin Employee policy review, federal reserve
of New York , issue Sept, pp. 1 – 2.

Bagozzi R. P., Davis F.D. & Warshaw P. R. (2020), “user acceptance of computer
technology; a comparison of two theoretical models” management science Vol. 3

Baylis.., Stock., Central & chalvery (2019)” present at social capital dialogue day”, south
university

Beck, T., Levine, R & Loayza, N (2019), “finance and the sources of growth” journal of
performance, Elsevier, Vol. 58 No1-2. pp. 261-300.

Berger A. N, & Young.R.D,(2020) “The effects of geographic expansion on employee

efficiency”). Journal services research.

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Berger, A N. & Udell. G. F. 2019, “Employee credit availability and relationship
lending; the importance of employee organizational structure,” employee Vol.112, pp.32
–53. Bobakova, I-V (2019) ‘Raising the profitability of Employee” BIATEC,

Vol.XI, pp 21-25

Bonin, J. P., Hassan, I., & Wachtel, P (2019). “performance, efficiency and ownership in
transition countries” Vol.29, pp31-53

Bourke, P. (2019) “Concentration and other determinants of profitability in Europe, North

America and Australia”, journal of and employee, Vol.13,pp 65-79

Bobakova, I.V. (2019) “Raising the Employee of organizations”. BIATEC, Volume XI, pp.21-
25. Bonin, J.P., Hasan, I.,& Wachtel, P (2019). performance, efficiency and ownership in
transition countries”. Journal of employee and performance.Vol 29, pp31-53.

2
 APPENDICES

APPENDIX I: INTRODUCTION LETTER

KATRA MURSAL DIRIYE,

JKUAT MOMBASA CAMPUS,

P.O.BOX 81310-80100,

MOMBASA.

2ND DECEMBER 2022.

Dear Respondent,

RE: COLLECTION OF RESEARCH DATA.

I am a student at Jomo Kenyatta University of Agriculture and Technology currently pursuing

Diploma in Business Administration. As a requirement for partial fulfilment for an award of a
Diploma, I am carrying out a research project on the EFFECT OF INTERNAL RECRUITMENT
ON EMPLOYEES’ PERFORMANCE). I believe that you have a vital input of the information
relevant to my research project. I therefore, kindly request for your assistance by filling in the
attached questionnaires below. Thanking you in advance as I look forward to your favourable
response.

Yours Sincerely,

KATRA MURSAL DIRIYE

2
 APPENDIX II: QUESTIONNAIRE
QUESTIONNAIRE FOR THE EMPLOYEES OF MOMBASA HOSPITAL.

Thank you for volunteering to complete this questionnaire. Your responses are important and
your thoughtful participation is highly appreciated. The purpose is to facilitate a study on
EFFECT OF INTERNAL RECRUITEMENT ON EMPLOYEES PERFORMANCE.
pursuing Diploma in Business Administration. The study will be purely academic, therefore, all
answers will be treated with strict confidence and there will be no way to link your response to
you.

SECTION I

1.Name of the Hospital…………………………………………………………………..

2. Name of the Branch hospital…………………………………………………………

3.Date of incorporation………………………………………………………………..

4. Name of Respondent (optional)…………………………………………………..

SECTION II

1. Length of service tick where applicable in the boxes provided from numbers

below: 4-3Yrs

7-9 Yrs

18-15 Yrs

Your position in the organization

Senior.Management

Middle level Management

Supervisor

Head of Section/Unit

Operations staff

2
1. Indicate your education level

None Primary ‘O’ Level ‘A’ level University Others

2. Professional Qualifications None

Professional certificate

Professional Diploma

Professional Post Graduate Diploma

3
SECTION III(CUSTOMERS AND PERFORMANCE).

1. Does your HOSPITAL have enough clients/customers for TREATMENT?

Yes No

2. If yes, how often ?

i) Daily ii) weekly Idon’t know

3. What is the proportion of your employee in this Mombasa hospital?

Very big Big Small Very small Not sure

4. How big is the effect of employees on the performance of this hospital?

Very big Big Small Very small Not sure

1. The Following attributes can be said to be as a result of strong performance. Please tick

3
SECTION IV (competition)

1. Are there other Hospitals offering the same similar services within the locality

Yes No

2. If Yes, which ones are they?

District Provincial hospitals others

hospitals

3. You can rate this statement as follows.

1.) Strongly Disagree (S.D), 2.) Disagree (D), 3.) Neutral (N), 4.) Agree (A) 5.)
Strongly Agee (S.A)

S.A A N D S.D
a). There have been other hospitals
offering similar services

5 4 3 2 1

S.A A N D S.D

b)If so, do you loose customers to other

hospitals ?

5 4 3 2 1

3
 S.A A N D S.D
c). Does your hospital have qualified
trained nurses in handling patients ?

5 4 3 2 1

SECTION V (source of funds).

You can rate this statement as follows.

1.) Strongly Disagree (S.D), 2.) Disagree (D), 3.) Neutral (N),

4.) Agree (A) 5.) Strongly Agee (S.A)

1. Do you agree with this statement, “There S.A A N D S.D

are many ways of financial control in this
heath facilty?

5 4 3 2 1

You can rate this statement as follows.

1.) Low extent (LOE), 2.) Less extent (LEE), 3.) Neutral (N), 4.)

Moderate extent (ME), 5.) Great extent (GE)

GE ME N LEE LOE
2. To what extent does the financial control
reflect in this faciltiy performance?

5 4 3 2 1

Answer the questions that follow, using the following criteria,

1.) Very low (V.LO), 2.) Low (L), 3.) Moderate (M), 4.) High (H) 5.) Very High (V.H)

3
3. We can measure financial that lead to
V.H H M L V.LO
performance with consistent results in this
hospital. These indirect influences of
financial control will include factors listed
below. To

what extent does the above statement 5 4 3 2 1

elaborate on the following measures?

(a) Employee satisfaction/commitment

(b) Employer turn over

(c) Percentage of employees who “think

about quitting”

(d) Dissatisfaction with pay

(e ) High commitment

3
You can rate them as follows.

1.) Strongly Disagree (S.D), 2.) Disagree (D),3.) Neutral (N), 4.) Agree (A) 5.) Strongly Agee
(S.A)

S.A A N D S.D

4.Indicate the extent for which the source of

fund in this hospital is accounted for ?

5 4 3 2 1

(a) Focus on results

(b) leading change

(c) Good character

(d) Good interpersonal skills

(e ) Excellent Personal capability

3
You can rate them as follows.

1.) Very low extent (VLA.E), 2.) Low extent (LO.E), 3.) Neutral (N), 4.) Large extent (LA.E.)
5.) Very Large extent (VLOE)

VLA.E LA.E N LO.E VLO.E

5. To what extent do you agree with each of
the following statements about your facility?

5 4 3 2 1

(a) Setting stretch goals for employees

(b)Establishing a clear vision and direction

for the facility hospital

(c) Being more innovative and risk taking

(d)Practicing greater teamwork and

collaboration

(e)Demonstrating greater initiative.

(f)Being a role model

THANK YOU FOR YOUR CORPORATION!

3
 APPENDIX III: BUDGET
NO DESCRIPTION AMOUNT(KSH)
Internet services 500/=
1.

2. Library services 300/=

3. Transport for research and data 1800/=

Collection

4. Transport fee for consulting 2400/=

Supervisor

5. Printing and binding 950/=

6. Lunch fee 950/=

TOTAL 6,900/=

3
 APPENDIX III: WORK/TIME PLAN
DECEMBER JAN-FEB FEB-MARCH.
ACTIVITY 2022 2023 2023
Assigning
supervisor
And Topic selection

Project
Development

Project correction
&Supervisor
approval

Project submission