AN ASSESSMENT OF THE FACTORS ENHANCING LABOUR MOBILITY ON

EMPLOYMENT IN KENYA: A SURVEY OF KISII COUNTY GOVERNMENT

PETER OMARI OMENGE

A Research ProjectSubmitted to the Board of Undergraduate Studies in Partial Fulfillment

of the Requirement for the Award of Diploma in Human Resource Management, School of

Business and Economics, Kisii University

NOVEMBER 2017

DECLARATION AND RECOMMENDATION

DECLARATION

This Research Project is my original work and has not been presented to any other examination

body.

Signature………………………….. Date ….………………

PETER OMARI OMENGE

CB04/10238/15

RECOMMENDATION

This Research Project has been submitted for examination with my approval as University

supervisors.

Signature………………… Date……………………

MR. JOSEPHAT ONYONI

Assistant Lecturer,

School of Business and Economics

Kisii University

ii

DEDICATION

This research project is dedicated to my father Mr. James Omenge for his financial support while

undertaking this project. I would also like to accept the moral support of my brothers and sisters.

My God Bless them all.

ACKNOWLEDGEMENT

I would like to acknowledge the efforts of my supervisor, Mr.JosephatOnyoni, for his supervision

and professional expertise during the preparation of this research project.

iii

ABSTRACT

The general objective of the study was an assessment of factors influencing labour mobility onemployment in Kenya, a survey study of Kisii County Government.The study was guided by the

iv

following specific objectives: to establish the policy of labour mobility on employment in KisiiCounty Government, to find out the effect global talent management on employment in KisiiCounty Government and to identify the effect of reward management on employment in KisiiCounty Government.The findings and recommendations of the study was useful to the policymakers and management administrators who may use the study to design effective Humanresource programs geared towards performance improvement and quality service through labourmobility on employment. This study would also provide the knowledge required for theorganization to understand the labour mobility on un employment in Kisii County Government.This study would also add to the existing knowledge of labour mobility on employment.Thestudyadopted a descriptive case study design. The study targeted a population of 126 employeesof Kisii County Government. The study used a sample size of 30% of the targeted population asrecommended by Gay (1992) who recommends a sample size of 10% to 30% of targetpopulation for research. This translated to 33 respondents of the sample of the population. Thestudy used questionnaires as the research instrument to collect data. The data were presented byuse of frequency tables and percentage. Prior to summarizing the data, the questionnaires werechecked for completeness and accuracy. Data were coded sequentially to ensure uniformityduring presentation. It also involved checking for completeness in relation to research questions.The words and phrases were categorized based on research objectives. Data were tabulated inform of frequency tables and percentage. A well compiled data was employed for the purpose ofexplanation and description of findings which assisted in interpretation. The study establishedthat there were effects of policy of labour mobility on employment which among them wereensuring competitiveness of the organization, increasing productivity in the organization andensuring quality of goods and services given to its customers at Kisii County Government. Thestudy findings from the field indicated that there were effects global talent management onemployment at Kisii County Government which among them were enhancing performancerequirements that define the work in measurable, improving performance standards quality,quantity and timelines and instilling a sense of accountability in performance of organization inthe organization. The study findings from the field indicated that there were effects of rewardmanagement on employment at Kisii County Government which among them wereinstitutionalizing and create ownership labour mobility, employing of the organization should beinvolved and left to manage the process of labour mobility and setting few realistic target onlabour mobility rather than much objectives attempted at once. This study recommends that:Kisii County should have in place proper labour mobility policies through allocating necessaryresources to enhance employee performance in the county. Thecountyshould enhance labourmobility in order to retain skilled staff for the county to perform competitively in the servicedelivery

Table of ContentsDECLARATION AND RECOMMENDATION.....................................................................................................2

DECLARATION..............................................................................................................................................2

v

RECOMMENDATION....................................................................................................................................2

DEDICATION.................................................................................................................................................3

ACKNOWLEDGEMENT.................................................................................................................................4

ABSTRACT....................................................................................................................................................5

LIST OF FIGURES..........................................................................................................................................6

LIST OF TABLES.............................................................................................................................................7

LIST OF ABBREVIATIONS AND ACRONYMS...................................................................................................8

CHAPTER ONE..............................................................................................................................................9

INTRODUCTION...........................................................................................................................................9

1.1 Background of the Study.......................................................................................................................9

1.2 Statement of the Problem...................................................................................................................12

1.3 Objectives of the Study........................................................................................................................12

1.3.1General Objective of the Study..........................................................................................................12

1.3.2 Specific Objectives of the Study....................................................................................................12

1.4 Research Questions.............................................................................................................................12

1.5 Significance of the Study......................................................................................................................13

1.6 Limitations of the Study.......................................................................................................................13

1.7 Scope of the Study...............................................................................................................................13

1.8 Operational Definition of Operational Terms.......................................................................................13

CHAPTER TWO...........................................................................................................................................14

LITERATURE REVIEW..................................................................................................................................14

2.1 Global Labour Mobility........................................................................................................................14

2.2 Theoretical Review..............................................................................................................................16

2.2.1 Economic Effects of Immigration Theory......................................................................................16

2.2.2 Economic Effects of Emigration Theory.........................................................................................17

2.2.3 Human Capital Theory..................................................................................................................17

2.3 Empirical Literature Review.................................................................................................................18

2.3.1 Effect of Policyof Global Labor Mobility........................................................................................18

2.3.2 Effect of Global Talent Management.............................................................................................20

2.3.3 Effect of Reward Management.....................................................................................................22

2.4 Conceptual Framework........................................................................................................................25

Explanations of Variables.......................................................................................................................26

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CHAPTER THREE........................................................................................................................................26

RESEARCH METHODOLOGY.......................................................................................................................26

3.1 Research Design...................................................................................................................................27

3.2 Study Area...........................................................................................................................................27

3.3 Target Population.................................................................................................................................27

3.4. Sample Size Determination.................................................................................................................27

3.5 Data Collection Instruments................................................................................................................28

3.5.1 Reliability of the Research Instrument..........................................................................................28

3.5.2 Validity of the Research Instrument..............................................................................................28

3.6 Data Collection Procedure...................................................................................................................28

3.7 Data Analysis and Presentation...........................................................................................................28

CHAPTER FOUR..........................................................................................................................................29

DATA ANALYSIS, INTERPRETATION AND PRESENTATION.............................................................................30

4.1 Response Rate.....................................................................................................................................30

4.2 Bio-data...............................................................................................................................................30

4.2.1 Gender of the Respondents..........................................................................................................30

4.2.2 Age Bracket...................................................................................................................................30

4.2.3 Level of education.........................................................................................................................31

4.2.4 Duration of Work..........................................................................................................................32

4.3 Policy of Labour Mobility on Employment...........................................................................................32

4.4 Effect Global Talent Management on Employment.............................................................................34

4.5Effect of Reward Management on Employment...................................................................................35

CHAPTER FIVE............................................................................................................................................37

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS.........................................................37

5.1 Summary of the Findings.....................................................................................................................37

5.2 Conclusion...........................................................................................................................................37

5.3 Recommendation of the Study............................................................................................................38

5.4 Suggestion for Further Study...............................................................................................................38

References.................................................................................................................................................39

APPENDIX I................................................................................................................................................42

INTRODUCTION LETTER.............................................................................................................................42

APPENDIX II...............................................................................................................................................43

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QUESTIONNAIRE FOR MANAGEMENT AND EMPLOYEES...........................................................................43

Introduction...............................................................................................................................................43

LIST OF FIGURES

Figure 2.1 Conceptual Framework ……………………………………………………17

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LIST OF TABLES

Table 3.1 Sampling Design………………………………………………………………………19

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Table 4.1 Gender of the Respondents……………………………………………………………21

Table 4.2 Age Bracket…………………………………………………………………………...22

Table 4.3 Level of education…………………………………………………………………….22

Table 4.4 Duration of Work……………………………………………………………………...23

Table 4.5 Policy of Labour Mobility on Employment…………………………………………...24

Table 4.6 Effect Global Talent Management on Employment…………………………………..25

Table 4.7 Effect of Reward Management on Employment……………………………………...26

LIST OF ABBREVIATIONS AND ACRONYMS

DTP -Direct To Supply

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GDP -Good Distribution Practice

JIT - Just In Time

KIM - The Kenya Institute of Management

VRM -Vendor Relationship Management

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Increased labor mobility can have a dual payoff: fighting employment and enhancinggrowth

through a more efficient use of the available resources, especially human capital. Assome

countries are labor abundant and other labor importers, a greater cooperation to smooth

labormovements can be beneficial for all (Hoekman and Sekkat, 2009). However, the

receptivityof governments to facilitate labor mobility is usually lower than for capital mobility,

as witnessedby the much larger number of bilateral investment treaties and by countries’

reluctanceto include labor mobility provisions in trade agreements (Stephenson and Hufbauer,

2010). Thisdisfavors labor abundant developing countries.

While studies on the impact of migration on host countries are still dominant, interest in

theemigration impact on the home country’s labor market is increasing (Hanson, 2009). We

willlimit our review of existing literature to three main channels through which migration

impactshome countries’ labor market: emigration outflows, remittances and incentive to improve

one’seducation. The outflow of workers has various effects, depending on workers’ skill

compositionand their substitutability or complementarity (Hanson, 2010). Most studies on this

issue focuson the impact of immigration on the country’s wage structure. Adapting the

framework proposedby Borjas (2003) to a sending country case, Mishra (2007) uses census data

and estimates thatthe decrease in the Mexican labor supply between 1970 and 2000 due to

emigration increasedthe wage level by 8%. With a more detailed approach, Aydemir and Borjas

(2007) show thatdue to the skill composition of the Mexican emigration, relative wages

increased for the mediumskilled and decreased for those at the bottom of the skill distribution.

Finally, taking into accountboth emigration and immigration effects, Bayangos and Jansen

(2011) argue that emigration hada negative impact on European wages, thus offsetting the

positive effect of immigration. Thisresult is due to a higher skill composition of the European

outflows compared to the inflows.

McKenzie and Sasin (2007) draw a complete picture of therelevant questions in migration

research and highlight the importance, in terms of policy making,of disentangling the channels

through which migration and remittances impact welfare. One ofthese channels is the labor

market, with its various components. Thus, they highlight that theimpact of migration can not be

studied separately from the impact of remittances and vice versa.

A first strand of the literature shows that remittances tend to decrease non-migrants labor

supplyacting as a disincentive for labor participation and/or worked hours, which are replaced by

extraleisure (Funkhouser, 1995; Rodriguez and Tiongson, 2001; Kim, 2007). However, lower

laborparticipation in remittance receiving households can be explained by a higher probability

tobe involved in self employment or non-wage activities, in order to replace the migrant, or tobe

involved in higher education since, due to remittances, households can invest in education(Yang,

2008; Lokshin and Glinskaya, 2009).

Nevertheless, as Dustmann and Mestres (2010) point out, remittances have to be studiedin

connection to different migration forms since the remitting behavior depends strongly onwhether

the migration is temporary or permanent. Indeed, the decision to remit (and the amountremitted)

and the decision on the migration length are taken jointly. On the one hand, the migrant(and her

family) can decide on the optimal amount to be remitted accordingly to the expectedtime to be

spent abroad. For instance Bauer and Sinning (2011), as well as Dustmann andMestres (2010),

confirm that temporary migrants remit more on average than permanent migrants.

On the other hand, the length of migration can be decided in order to meet the familyneeds and

the migrant earnings. While this mechanism of remittances determining the optimalmigration

duration is almost absent in the literature, it has already been shown that savingsdetermine the

length of the stay in the host country (Kirdar, 2009; Dustmann and Mestres,2011).

Dessus and Nahas (2008) introduce the education and migration aspects in a general

equilibriummodel and find that higher migration rates do not always entail higher investment

ineducation, the migration-education nexus being strongly influenced by structural

parameters.Using a general equilibrium model with altruistic households, Baas and Melzer

(2012) analyzethe macroeconomic impact of remittances through three main channels, namely

the exchangerate, savings decisions and labor supply. They show that the increase of migrant

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outflowsof transfers from Germany has a positive effect on the German economy through a

conversedutch disease effect. The manufacturing sector which exports a significant part of its

productionis the main beneficiary, while the effects on the service sector are less favorable.

Labor or worker mobility is the geographical and occupational movement of workers. Worker

mobility is best gauged by the lack of impediments to such mobility. Impediments to mobility are

easily divided into two distinct classes with one being personal and the other being systemic.

Personal impediments include physical location, and physical and mental ability. The systemic

impediments include educational opportunities as well as various laws and political contrivances

and even barriers and hurdles arising from historical happenstance.Increasing and maintaining a

high level of labor mobility allows a more efficient allocation of resources. Labor mobility has

proven to be a forceful driver of innovations.

1.2 Statement of the Problem

Labour mobility in organizations is critical if organizations want to achieve on their objectives,

and service delivery in the public organization. This is due to dynamic changes in business

environment in terms of technology, quality performances and changes in living standards. Many

public organizations in Kisii County Governmenthave been facing challenges in enhancing

labour mobility, like resistance from its employees, poor policy in implementation on labour

mobility, lack of effective structures to labour mobility and lack of procedures to implement

labour mobility. This had led to absenteeism, strike and complains which were shown in the

factory. This study sought to establish the effect of labour mobility on employment in Kenya, a

case of Kisii County Government.

1.3 Objectives of the Study

1.3.1General Objective of the Study

The general objective of the study was an assessment of the effect of labour mobility on

employment in Kenya, a survey of Kisii County Government.

1.3.2 Specific Objectives of the Study

The study wasguided by the following specific objectives:

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i. To establish the policy of labour mobility on employment in Kisii County Government.

ii. To find out the effect global talent management on employment in Kisii County

Government.

iii. To identify the effect of reward management on employment in Kisii County

Government.

1.4 Research Questions

The study was guided by the following Questions:

i. What is the effect of policy of labour mobility on employment in Kisii County

Government?

ii. What is the effect global talent management on employment in Kisii County

Government?

iii. What is the effect of reward management on employment in Kisii County Government?

1.5 Significance of the Study

The findings and recommendations of the study would be useful to the policy makers and

management administrators who may use the study to design effective Human resource programs

geared towards performance improvement and quality service through labour mobility on

employment. This study would also provide the knowledge required for the organization to

understand the labour mobility on un employmentin Kisii County Government. This study also

added to the existing knowledge of labour mobility on employment.

1.6 Limitations of the Study

The study was conducted on employees in Kisii County Government and may directly not apply

to other counties. The selection of Kisii County Government was limited its generalization to

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other County Government governments. The study further was limited to the effects of labour

mobility on employment.

1.7 Scope of the Study

The scope focused on Kisii County Government. The study was concerned on the effects of

labour mobility on employment. The study was carried out on the month of August,2017.

1.8 Operational Definition of Operational Terms

Global labor mobility refers is the movement of workers between countries.

Organization refers to a social entity formed by group of people, intricate human strategies

designed to achieve certain objectives.

Organization Development refers to a systematic application of behavioral Science knowledge

at various levels (group, inter-group and total organization) to bring about

planned change.

Strategy refers to a long time plan for a business enterprise for where they are

and they want to be in future point in terms of performance.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Global Labour Mobility

Labor and thus perfect immigrant-native substitutability may make sense for certain

subpopulations of native workers and certain subpopulations of immigrants, it is clearly violated

for other subpopulations of these groups of labor. For example, unskilled immigrants who have

little or no education are not perfectly substitutable for highly skilled native workers whose labor

tasks are human-capital intensive, such as professionals. Indeed, in many cases, unskilled

immigrants may not be perfectly substitutable even for unskilled native workers. The latter

typically have far better command over the language used in their country, for example, and such

command is important for many unskilled tasks.

Labour mobility increases its demand for labor—both through immigrants’ consumption and

when some immigrants become employers themselves—putting upward pressure on native

6

wages and employment. Because of such factors, contrary to what some have suggested (see

Borjas 2003), the fact that the “the labor demand curve is downward sloping” is not sufficient to

permit one to know a priori that immigration hurts natives. As we discuss below, alternative

appraisals of these factors’ importance in practice play an important role in the ongoing debate

about immigration’s economic effects empirically.

Right-to-work laws which reduce worker bargaining power, resulting in lower wages and less

worker benefits which compound the problem above. Inadequate infrastructure and housing to

accommodate fast-moving changes in labor demand. Binding ties to a geographic location.e.g, a

worker's inability to sell his home for a price that covers his existing mortgage. A worker's lack

of education or access to education. Labor mobility refers to the ease with which laborers are

able to move around within an economy and between different economies. It is an important

factor in the study of economics because it looks at how labor, one of the major factors of

production, affects growth and production.

There are two primary types of labor mobility: geographic and occupational. Geographic

mobility refers to a worker's ability to work in a particular physical location, while occupational

mobility refers to a worker's ability to change job types. For example, a worker moving from the

United States to France involves the concept of geographic mobility. An automobile mechanic

who changes jobs to become an airline pilot involves the concept of occupational mobility. (For

related reading. From a policy-maker's perspective, geographic mobility can have important

implications on the economy of a particular country.

Some of these workers pay professional smugglers hefty fees to move them across national

borders—$3,000 to be smuggled across the United States-Mexico border, for example, $16,000

to be smuggled to the United States from Brazil, and $50,000 to be smuggled to the United

States from China (Mexican Migration Project 2010; Havocscope Global Black Market

Information 2014). These figures reflect only a small part of the cost would-be migrants from the

developing world are willing to bear to relocate to the developed one. They’re also willing to

leave their homes, families, and jobs to move to countries with unfamiliar languages, customs,

and cultures.

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This improvement is an order of magnitude larger than the efficiency improvement that

researchers estimate would be achieved by eliminating policy barriers to the movement of

commercial merchandise and capital internationally (Dessus, Fukasaku, and Safadi 1999; World

Bank 2001; Anderson and Martin 2005; Hertel and Keeney 2006). Indeed, even far more modest

reductions of policy barriers to international labor mobility would add more to global wealth than

completely eliminating policy barriers to the movement of “ordinary” goods and capital across

countries. Current estimates suggest that the migration of less than 5 percent of poor countries’

populations to the developed world accomplish as much (Clemens 2011).

2.2 Theoretical Review

2.2.1 Economic Effects of Immigration Theory

Most research that investigates the economic effects of international labor mobility studies the

economic effects of immigration: how migration from poor countries to wealthy ones influences

wages and job opportunities in migrant-receiving nations. To get a sense of how immigration

might impact these economic variables theoretically, a natural starting place is a simple

economic model of a labor market. This model has several assumptions: wages are set

competitively; labor is homogeneous, meaning that all workers are economically identical to

employers and thus are perfectly substitutable for one another; and changes affecting this market

do not affect others.

The model to predict immigration’s economic effects is that, because it is a partial-equilibrium

model, it ignores potentially important general-equilibrium effects of immigration. For example,

in response to an immigration-induced fall in the relative price of unskilled labor in an economy,

additional capital is likely to flow to that economy, restoring the capital-to-labor ratio, and with

it, native wage rates and employment. Moreover, an influx of immigrants to an economy not

only increases that economy’s supply of labor.

2.2.2 Economic Effects of Emigration Theory

The economic effects of emigration refer to the consequences of migration for citizens who

remain behind in countries from which migrants depart. In the most basic economic labor-market

model, considered in Figure 1, emigration’s economic effects on such citizens move oppositely

8

of their effects on natives in emigrants’ destination countries. Thus, when the migration of

workers from one country to another reduces the wages of competing native workers in the latter

country, it raises the wages of competing workers who remain behind in the former country—

albeit at the expense of capital owners in that country, who must pay more for labor. Mishra

(2007), for example, finds that Mexican emigration to the United States between 1970 and 2000

increased the wages of high-school educated workers who remained in Mexico by 15 percent,

but harmed the welfare of Mexican owners of fixed factors of production more than it benefited

Mexican workers.

Bhagwati and Hamada (1974) develop a model in which internationally integrated labor markets

can increase employment in countries from which skilled workers emigrate. The particular

assumptions one makes about a wide range of factors that may influence how brain drain

operates thus strongly influence its theoretical effect on remaining citizens. Much like in the case

of establishing immigration’s economic effects, then, establishing emigration’s economic effects

in practice—including brain drain’s—requires empirical investigation.

2.2.3 Human Capital Theory

In a series of recent cross-country studies, Beine, Docquier, and Oden-Defoort (2011), Beine,

Docquier, and Rapoport (2001, 2008, 2010), Easterly and Nyarko (2009), and Docquier, Faye,

and Pestieau (2008) study how the emigration of highly skilled individuals affects human capital

formation in their home countries. Their results suggest that the prospect of brain drain may in

fact generate “brain gain”: the emigration of highly skilled persons is associated with higher

levels of gross human capital formation in origin countries rather than less. Recent micro studies

of brain drain’s effect on human capital formation in origin countries corroborate this finding.

For example, Batista, Lacuesta and Vicente (2012) find that brain drain drives most of Cape

Verde’s human capital formation. Gibson and McKenzie (2011), who study New Guinea and

Tonga, find that the overwhelming majority of top high-school students in these countries

consider emigration, which leads them to invest more in their schooling. Similarly, Chand and

Clemens (2003) find evidence that brain drain enhances human capital investment among those

9

with Indian ancestries.These studies furnish evidence for the importance of emigration’s

incentive effects on human capital investment and lend credence to the idea that such investment

in migrant-origin countries is indeed endogenous to the prospect of emigration. They suggest that

rather than depleting migrant-origin countries of human capital, emigration is likely to enhance

it.

2.3 Empirical Literature Review

2.3.1 Effect of Policyof Global Labor Mobility

International labor mobility is the movement of workers between countries. It is an example of

an international factor movement. The movement of laborers is based on a difference in

resources between countries. According to economists, over time the migration of labor should

have an equalizing effect on wages, with workers in the same industries garnering the same

wage.Inadequate social safety nets. The average job hunt can take anywhere from 4 to 8 months

in the US; most experts agree that workers who wish to quit should financially prepare with at

least 6 months worth of living expenses. However, 69% of Americans have less than $1000 in

savings, which is less than 1 month worth of living expenses in the US. The risk of running out

of savings before a replacement job is found is a major disincentive to switching jobs.

This is because easing immigration requirements can do several things: Increase the supply of

labor. As more workers enter the economy, the general labor supply increases. An increase in

labor supply accompanied by a static labor demand can decrease wage rates.Increase

employment. Unless employers demand more workers, an increase in labor supply could lead to

a glut in labor. This means that more workers are available than jobs. Increase productivity. Not

all laborers added to the labor supply will be unskilled. An influx in laborers can increase

productivity if they bring specialized skills to the workplace, although they might push out

existing employees who are less productive. (For related reading.

Obtaining geographic mobility is not a purely economic matter. It can also be an issue of state

sovereignty and government control. After all, governments are also concerned with security, and

completely open borders mean that governments are not sure who, or what, is coming into their

countries. While increased geographic mobility generally has a positive impact on the economy,

10

it is also one of the first targets to incur the wrath of both citizens and their representatives.

Immigration is already a hot-button topic, both in the United States and abroad.

A reduction in geographic restrictions can be reached in several different ways. Between

countries, it is accomplished through treaties or economic agreements. Countries can also

increase the number of worker visas available, or reduce the requirements of receiving one. For

example, countries that are part of the European Union have fewer restrictions on the movement

of labor between members, but can still place tight restrictions on labor movement from non-

member countries.The effectiveness of improved geographic mobility will ultimately depend on

individual workers. If economic opportunities are not available in a different country or in a

different part of one's current country, the likelihood of an employee wanting to make a change

will be diminished.

Political economists have long recognized the potential importance of “voting with one’s feet” as

a means through which citizens may be able to improve public officials’ accountability to their

wishes (Tiebout 1956). So-called “Tiebout competition” acts as a feedback mechanism in

political markets akin to the profit-and-loss feedback mechanism in actual markets, which both

informs producers (political officials) about how well they are satisfying consumers’ (citizens’)

demands and incentivizes producers (political officials) to respond to what they learn. If citizens

are mobile and political authorities are concerned with enlarging, or at least preserving, their tax

bases, the prospect of inter-jurisdictional migration may improve their incentive to follow those

policies that their citizens demand.

However, a handful of studies consider how international labor mobility may affect

governmental quality in migrant-origin countries through alternative mechanisms. Mahmoud et

al. (2013), for example, argue that emigration creates political spillovers from migrants’

destination countries to their countries of origin. Emigrants’ exposure to alternative political

institutions in destination countries provides them with new information about these institutions,

which they may share with contacts in their countries of origin. This information diffusion has

the power to alter the political tastes of citizens in migrant-origin countries who do not emigrate,

strengthening their support for institutional reform. To examine this hypothesis, Mahmoud et al.

(2013) examine emigration from Moldova to Western Europe, which began in the late 1990s.

11

They find that this emigration was pivotal in bringing about the end of Communist government

in Moldova in 2009 through the political spillover channel described above.

2.3.2 Effect of Global Talent Management

On that note, it's acknowledged that global talent management is critically important for the

success of individuals and organisations. However, about 80% of organisations experience a high

degree of independence between their talent management and organizations departments. Given

that most organisations believe that their competition is worldwide, the stronger integration of

organizations and talent management is likely to be beneficial. About 80% of organisations

experience a high degree of independence between their talent management.

Furthermore, around 20% of organisations have less than 40% of their required candidates for

international assignments although about a third of respondents indicated that the careers of

repatriates unfolded better than their non-expatriated peers. Another talent management

advantage was the indication that organization assignees normally perform better than their non-

expatriated peers which indicates strong behavioural and cognitive learning.The ease with which

employees can move from a job in one particular industry to a job in a different industry

determines how quickly an economy can develop. For example, if there was zero occupational

mobility we would still be hunter-gatherers, because no one would have been able to become

farmers or specialists. An easing of occupational mobility restrictions can do several things:

Increase the supply of labor in particular industries. Lower restrictions cause laborers to have an

easier time entering a different industry, which can mean that the demand for labor is more

readily met.Lower wage rates. If it is easier for laborers to enter a particular industry, the supply

of labor will increase for a given demand, which lowers the wage rate until equilibrium is

reached. Allow nascent industries to grow. If an economy is shifting toward new industries,

employees must be available to run that industry's businesses. A shortage of employees means

that overall productivity can be negatively impacted because there aren't enough employees to

provide the service or work the machines used to make the product.

Occupational mobility can be restricted through regulations. Licensing, training or education

requirements prevent the free flow of labor from one industry to another. For example,

restrictions limit the supply of physicians, since specialized training and licensing is required to

12

work in that particular profession. This is why physicians can command higher wages, because

the demand for physicians coupled with a restricted supply increases the equilibrium wage. This

funnels unqualified members of the labor force into industries with fewer restrictions, keeping

the wage rate lower through a higher labor supply compared to the amount of labor demanded.

On a personal level, increased labor mobility gives workers an opportunity to improve their

financial situations. If workers are permitted to train for new jobs, move locations or seek higher

wages, then they are more likely to be happy working, which can have a positive impact on

productivity. Workers who do not feel indefinitely relegated to low wages or jobs with few

benefits will consistently seek better positions, which also makes it easier for new industries to

attract the most qualified applicants by offering better perks.

The aggregate level refers to the economy as a whole. The extent to which labor forces are

mobile can impact how quickly an economy can adapt to technological changes, how quickly

competitive advantages can be exploited and how innovative industries develop. Restrictions

placed on how workers move around, either geographically or occupationally, can slow growth

by making it more difficult for businesses to hire productive workers. At the same time,

unrestricted labor can depress wages in certain industries and create employment. (To learn

more, see Competitive Advantage Counts.)

As labor mobility improves, so do the lives of workers around the globe. As a general rule,

workers are able to find better paying jobs and improve their living situations when less control

is placed on where they can move and what occupations they can apply for. At the same time,

businesses improve because workers receive better training and the right employee can be hired.

Historical comparisons of mobility are difficult to make because of dearth of data, but the rural to

urbanmovements in early 19th century Europe are now well documented, as well as the massive

movements ofpeople across the Atlantic from Europe and Africa to settle the Americas. In Great

Britain, the mid-1800s saw more than one out of every three rural residents leave for an urban

area (Long &Ferrie,2003). Today, there is a general perception that mobility of workers is again

on the rise everywhere. Themassive movement of workers from the rural hinterlands to the cities

has recently been seen in Chinaduring its dramatic transformation from an underdeveloped

agricultural economy to a modern industrialgiant, and in the Middle East where foreign workers

13

have been imported from Asian and Africancountries by the hundreds of thousands every year

since the mid-1970s to convert petro-dollars intomodern infrastructures (Castles & Miller, 1993).

The 1980s have also seen a spike in migration to NorthAmerica and in the 1990s to Western

Europe after the collapse of the former Soviet Union and theexpansion of the European Union

(EU) to more member states (Martin, Abella, &Kuptsch, 2006).

Contributing further to this perception of growing mobility is the rapid rise of mega-cities in

thedeveloping world like Mumbai, Mexico City, and Shanghai where the economies of

agglomeration areplaying themselves out with important consequences for global movements of

capital and trade(Shlomo, Sheppard, &Civco, 2005).

Countries differ in their sources of information, the reference period they used, and the

periodicity oftheir censuses. However, the most problematic for purposes of comparison,

particularly in measuringthe intensity of internal migration, is the absence of a common spatial

scale. For example, an interprovincialmovement in Vietnam may involve only a few kilometers,

but it may entail over a thousandkilometers in Canada. Migration intensity may look high for two

countries of the same size if one isdivided into many more zones than the other. Data on previous

residence and current duration,according to Bell and Muhidin (2009), can only be used

effectively to measure comparable migration ifboth questions refer to the same spatial scale.

2.3.3 Effect of Reward Management

The function has experienced, over time, increasingly complex and varied organizational

approaches. The underlying drivers that shape the design of these policies and practices are

effectiveness, business needs and individualisation considerations. More than a third of

companies do not track regular international business travel which leaves them exposed to a

range of compliance risks. Firstly, that a number organisations decrease their reward packages in

response to such factors as individuals initiating moves or assignments being developmental.

They seem to be most generous for business-needs/strategic assignments although, interestingly,

less than a quarter of organisations link assignment compensation to performance.

Almost all short and long-term assignment packages used the home-based balance sheet

approach. However, some short-term assignees stay on their home payroll while gaining a per

diem. Unsurprisingly, perhaps, companies are most generous to their long term international

14

assignees although, even for those on short term assignments, three quarters pay housing costs

and a majority pay home leave allowance. There are large variations of company policies in the

event that the expatriate resigns during the assignment or asks for an early repatriation. Claw

backs are often determined on a case-by-case basis.

Seasonal migration is an aspect of mobility that is not well captured by periodic censuses but is

known tohave a long history in some regions and said to be on the rise by others (Ellis, 1998). It

is consideredintegral to the coping, survival, and livelihood strategies of families in the tribal

areas of western India(Gadgil&Guha, 1995), among the subsistence farmers in Burkina Faso

(Konsiega, 2007), and in theSahel region of West Africa. While it is often the consequence of

environmental crises, some researchersargue that seasonal migration has much to do with

relations of dependency and indebtedness, whichsubsistence failure entails (Mosse et al., 2002).

Seasonal migration offers opportunities for meetingcontingencies not so much due to declining

production but to systems of usurious money lending,labour contracting, and exploitation.

There is an a priori expectation that people, unless forced by violence or victimised by

criminalsyndicates, would only move if they can improve their well-being or welfare. It is, thus,

widely taken forgranted that migration, internal and especially international, leads to positive

changes for the migrants,even taking into account the fact that there are instances of exploitation

and discrimination. Mostempirical research indicates that migrants generally “gain” from

moving (Clemens, 2010). Country-levelstudies based on comparing incomes of migrants before

and after migration invariably show significantimprovements in migrants’ conditions, whether

this is in terms of earnings, consumption, housing, orchildren’s education.4 There may be

contradictory effects on household income, where departure of amember reduces labour and

leads to a decline in farm output, but this is counterbalanced by remittances received. The gains

in earning power of emigrants to other countries, especially to the more developedones, are well

documented. These gains were captured by studies of migrant assimilation in the

receivingcountries, as well as by more recent investigations in origin countries on the impact of

migrants’remittances on the welfare of families left behind.

No cross-country comparisons of the impact of remittances from internal migrants was found,

but inChina, a cross-sectional study of rural households by Zhu, Wu, Du, and Cai (2012) found

that themarginal propensity to save out of remittances is well below half of that out of other

15

sources of incomes.The authors claim that other recent studies in China also found no link

between migration andproductive investment.

In most of the developing world, the phenomenon of increasing urbanisation is widely associated

withimprovements in children’s health, because rural areas lag behind urban areas with respect to

theavailability of child health care services, both preventive and curative (Harpham et al., 2004).

Migrationcan become an important determinant of child mortality. In India, Keshri and Bhagat

(2011) analyzedthe differentials of mortality rates and child health care utilization among

different migrant and nonmigrantgroups (natives) using India’s third round of the National

Family Health Survey (NFHS-3,2005 - 2006). They found large differences among groups: urban

natives, rural-to-urban migrants, andrural natives, with the latter being the most disadvantaged as

shown by infant mortality rates and accessto curative care. This is probably one important reason

for the growth of rural-urban migration in somedeveloping countries, despite the fact that most

migrants end up living in squalid slum areas.

Because of differences in labour productivity among sectors, transfers of labour from less to

moreproductive sectors should lead to higher overall growth of the economy. There are

economy-wide gainswhen markets are not segregated and labour is not restrained from moving

to where it can earn higherwages. Mobility of labour allows producers to respond to the market

for new products and services or toadopt and apply new technologies. A 2005 World Bank study

in China found that moving 5% of labourout of agriculture is associated with a 3.3% increase in

GDP, and moving 5% of rural labour to urbanareas is associated with an average 2.5% increase

in GDP. Gains are much higher if the reallocation oflabour is to western and central regions

compared to the eastern and northeastern regions.

Adjustmentstake the form of changes in the flow and wages of workers and flow of capital. How

much of theadjustments will take the form of migration decisions of workers or location

decisions of firms willdepend on government policies (public services, the availability of land,

cost of housing and transport)and, for the firms, on the technology they use, the source of raw

materials, proximity to markets, andother economies of agglomeration. Governments seek to

achieve balanced development throughouttheir territories but this is seldom attained because of

the unbalanced distribution of natural resourceslike minerals and fertile soil, geographical

characteristics that favour certain areas for harbours, as well asmistaken economic and social

16

policies. Through the way it designs its tax policies and the priorities itsets for spending tax

revenues, governments are increasingly playing the lead role in influencingdecisions of workers

and enterprises.

Today, comparative advantage’s importance for wealth creation is recognized by nearly all

economists. It stands at the foundation of the case for free trade a case that in second half of the

20th century largely won over policymakers in the developed world, who increasingly liberalized

the movement of goods and services across borders (see, for instance, Shleifer 2009). There

remains, however, a critical exception to the relatively free movement of goods and services

internationally: the movement of labor.

Although it is uncontroversial among economists that the free movement of labor across

countries would dramatically enhance welfare globally, the economic effects of international

labor mobility for various subpopulations of the world—in particular native workers in the

countries migrants move to and citizens who stay behind in the countries migrants depart—are

subjects of considerable controversy. This is unsurprising. That freer labor movement would

improve global efficiency follows obviously from the principle of comparative advantage. The

distributional consequences of such movements, however, do not.

2.4 Conceptual Framework

Independent Variables Dependent Variable

17

Labor mobility

Policy on global mobility

Global talent management

Reward management

Employment in Kenya

Government policies

Economic conditions

Intervening Variables

Source: Author (2017)

Figure 2.1 Conceptual Framework

Explanations of Variables

Policy on labor mobility is the movement of workers between countries. It is an example of an

international factor movement. Global talent management which is the underlying drivers that

shape the design of these policies and practices are effectiveness, business needs and

individualization considerations. Reward management through testing and analyzing employee

skills and competencies and then assigning them the work that they excel at is one of the major

functions of job rotation process.

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

The study adopted a descriptive case study design to obtain pertinent and precise information on

the current status of the phenomena, situations and groups under study Mugenda and Mugenda

(1999). The study was utilized a descriptive case study to do an assessment of the effect of

labour mobility on employment in Kenya.

3.2 Study Area

The study was conducted at Kisii County Government. Kisii County Government employees

were able to give relevant information on an assessment of the effect of labour mobility on

employment in Kenya.

3.3 Target Population

18

According to Mugenda and Mugenda (1999) target population is the complete set of individuals,

cases or objects of the study. The study targeted a population of 126 employees and managers of

Kisii County Governmentas per the HRD records, (2017).

3.4. Sample Size Determination

The study used a sample size of 30% of the targeted population as recommended by Gay (1992)

who recommends a sample size of 10% to 30% of target population for research. This translated

to 33 respondents of the sample of the population as shown in Table 3.1

Table 3.1 Sampling Design

Departments Target population Sample size

Production 40 12

Human Resource Management 13 04

Accounts 10 03

Marketing 17 05

Transport and Logistics 30 09

Total 126 33Source: Author (2017)

3.5 Data Collection Instruments

The study used questionnaires as the research instrument to collect data. The questionnaires were

preferred because they were easily administered and give reliable data as the respondents were

not interrupted in any way during the process of filling in the questionnaires.

19

3.5.1 Reliability of the Research Instrument

The researcher enhanced reliability of the questionnaire by subjecting it to a pilot test. Four

questionnaires were given to four staff members who were not be part of the sampled population,

modifications were made to take care of some gaps which were identified in the questionnaire

items.

3.5.2 Validity of the Research Instrument

The research instruments were validated through peer review and expert judgment from the

supervisor by holding discussions, making relevant comments and suggestions that were

detected.

3.6 Data Collection Procedure

The researcher got an introductory letter from Kisii University for legal and social reason to use

it to request for appointments with the respondents. The respondents were provided with the

questionnaires which they used to provide relevant information to the researcher.

3.7 Data Analysis and Presentation

Data were coded sequentially to ensure uniformity during presentation. It also involved checking

for completeness in relation to research questions. The words and phrases were categorized

based on research objectives. Data wereanalysed using descriptive statics and percentages.Data

were tabulated in form of frequency tables and percentage. A well compiled data were employed

for the purpose of explanation and description of findings which assisted in interpretation.

20

CHAPTER FOUR

DATA ANALYSIS, INTERPRETATION AND PRESENTATION

4.1 Response Rate

The researcher issued 33 questionnaires to the respondents at Kisii County Government. 33

questionnaires were filled and returned to the researcher which represented 100% while none of

the questionnaires were not filled and returned back to the researcher which represented. The

Reponses were relied upon in data analysis.

4.2 Bio-data

4.2.1 Gender of the Respondents.

The study sought to establish the gender of the respondents involved in the study. The response

rate from the field was recorded as shown in Table 4.1

Table 4.1 Gender of the Respondents

21

GenderFrequencyPercentageMale

Female

Total

19

14

33

58

42

100

Source: Field Data, (2017)

Table 4.1 indicates that 58% of the respondents were male while 42% were female in gender.

This indicated gender imbalance in the county.

4.2.2 Age Bracket

The study sought to establish the age bracket of the respondents involved in the study. The

information obtained from the field was recorded as shown in Table 4.2

Table 4.2 Age Bracket

Age BracketFrequencyPercentage20 years and below

21-30 years

31-40 years

41-50 years

51 years and above

Total

2

11

8

7

5

33

6

33

24

21

15

100Source: Field Data (2017)

Table 4.2 indicates that 6% of the respondents were below 20 years of age, 33% were aged

between 21 and 30 years, 24% were aged between 31 and 40 years, 21% of them were aged

between 41-50 years of age and 15% of them were 51 years and above.

4.2.3 Level of education

22

The study sought to establish the highest level of education attained by the respondents involved

in the study. The response rate from the field was recorded as shown in Table 4.3

Table 4.3 Level of education

Level of educationFrequencyPercentageSecondary education

Middle level education

University level of education

Total

5

19

9

33

15

58

27

100

Source: Field Data (2017)

Table 4.3 indicates that 13% of the respondents had secondary level of education had secondary

level of education, 58% had middle level of education and 27% had university level of

education.

4.2.4 Duration of Work

The study sought to establish the duration which the respondents had worked in Kisii County

Government. The response rate from the field was recorded as shown in Table 4.4

Table 4.4 Duration of Work

Duration of WorkFrequencyPercentageBelow 1 years

2-4 years

5 years and above

Total

10

14

9

33

33

42

27

100

Source: Field Data (2017)

Table 4.4 indicates that 33% of the respondents had worked in Kisii County Government for 1

year and below, 42% had worked there for 2-4 years and 27% of the respondents had worked in

Kisii County Government for 5 and above years.

23

4.3 Policy of Labour Mobility on Employment

The study sought to establish from the respondents on the effects of labour mobility on

employment at Kisii County Government. The response rate from the field was recorded as

shown in Table 4.5

Table 4.5 Policy of Labour Mobility on Employment

SA-Strongly Agree, A-Agree, D-Disagree, SD-Strongly Disagree

Policy of labour mobility SA

5

A

4

UD

3

D

2

SD

1

∑fi ∑fiwi ∑fiwi∑fi

Ensuring competitiveness of the

organization

15 15 1 1 1 33 141 4.27

Ensuring quality of goods and

services given to its customers

20 8 2 1 2 33 142 4.30

To increase productivity in the

organization

15 10 3 3 2 33 132 4.0

Improve service delivery in the

organization

5 14 7 5 2 33 114 3.45

Improve efficiency and

effectiveness in the organization

14 14 3 1 1 33 137 4.15

Source: Field Data (2017)

24

Table 4.5 indicates that rating 4.27 total number of the respondents said that ensuring

competitiveness of the organization was an effect of labour mobility on employment at Kisii

County Government, rating 4.30 of the total number of the respondents said that ensuring quality

of goods and services given to its customers was an effect of labour mobility on employment at

Kisii County Government, Rating 4.0 total number of the respondents said that increasing

productivity in the organization was an effect of labour mobility on employment at Kisii County

Government. Rating 3.45 total number of the respondents said that improving service delivery in

the organization was an effect of labour mobility on employment at Kisii County

Government.Rating 4.15 total number of the respondents said that improving efficiency and

effectiveness in the organization was an effect of labour mobility on employment at Kisii County

Government.

4.4 Effect Global Talent Management on Employment

The study sought to establish from the respondents on the effects of global talent on employment

at Kisii County GovernmentCounty. The response rate from the field was recorded as shown in

Table 4.6.

Table 4.6Effect Global Talent Management on Employment

SA-Strongly Agree, A-Agree, D-Disagree, SD-Strongly Disagree

Effect global talent

management

5 4 3 2 1 ∑fi ∑fiwi ∑fiwi∑fi

Enhances performance

requirements that define the

work in measurable

13 11 2 5 2 33 127 3.85

25

Improves performance standards

quality, quantity and timelines

9 9 4 8 3 33 112 3.39

Instills a sense of accountability

in performance of organization

in the organization

11 6 3 12 1 33 113 3.42

Improves performance through

delivery of quality and timely

services to customer

13 9 7 1 2 33 126 3.82

Source: Field Data (2017)

Table 4.6 indicates that rating 3.85 of the respondents said that enhancing performance

requirements that define the work in measurablewas an effect of global talent on employment at

Kisii County GovernmentCounty. Rating 3.39 of the respondents said that improving

performance standards quality, quantity and timelines was an effect of global talent on

employment at Kisii County GovernmentCounty. Rating 3.42 of the respondents said that

instilling a sense of accountability in performance of organization in the organizationwas an

effect of global talent on employment at Kisii County GovernmentCounty. Rating 3.82 of the

respondents said that improving performance through delivery of quality and timely services to

customer was an effect of global talent on employment at Kisii County GovernmentCounty.

4.5Effect of Reward Management on Employment

The study sought to establish from the respondents on the effects of reward management on

employment atKisii County GovernmentCounty. The response rate from the field were recorded

in Table 4.7

Table 4.7Effect of Reward Management on Employment

SA-Strongly Agree, A-Agree, D-Disagree, SD-Strongly Disagree

Effect of reward management SA

5

A

4

UD

3

D

2

SD

1

∑fi ∑fiwi ∑fiw

i∑fi

26

Institutionalize and create ownership

labour mobility

12 12 4 2 3 33 147 3.85

Employees of the organization should be

involved and left to manage the process of

labour mobility

1 4 9 9 10 33 87 3.22

Management should allocate adequate

resources to achieve the set target of

labour mobility

8 10 11 3 1 33 135 3.64

Setting few realistic target on labour

mobility rather than much objectives

attempted at once

10 12 8 2 1 33 127 3.85

Providing feedback to employees on

labour mobility

15 8 5 3 2 33 130 3.94

Source: Field Data (2017)

Table 4.7 above indicates that rating 3.85 of the respondents said that institutionalizing and

creating ownership labour mobility wasan effect of reward management on employment atKisii

County GovernmentCounty; rating 3.22 of the respondents said that employing of the

organization should be involved and left to manage the process of labour mobility was an effect

of reward management on employment atKisii County GovernmentCounty. Rating 3.64 of the

respondents said that management should allocate adequate resources to achieve the set target of

labour mobility was an effect of reward management on employment atKisii County

GovernmentCounty.Rating 3.85 of the respondents said thatsetting few realistic target on labour

mobility rather than much objectives attempted at once was an effect of reward management on

employment atKisii County GovernmentCounty.Rating 3.94 of the respondents said that

providing feedback to employees on labour mobility was an effect of reward management on

employment atKisii County GovernmentCounty.

27

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of the Findings

The study established that there were effects of policy of labour mobility on employment which

among them were ensuring competitiveness of the organization, increasing productivity in the

organization and ensuring quality of goods and services given to its customers at Kisii County

Government.

The study findings from the field indicated that there were effects global talent management on

employment at Kisii County Government which among them were enhancing performance

requirements that define the work in measurable, improving performance standards quality,

quantity and timelines and instilling a sense of accountability in performance of organization in

the organization

The study findings from the field indicated that there were effects of reward management on

employment at Kisii County Government which among them were institutionalizing and create

28

ownership labour mobility, employing of the organization should be involved and left to manage

the process of labour mobility and setting few realistic target on labour mobility rather than much

objectives attempted at once

5.2 Conclusion

Based on the finding above the study concluded that labour mobility used in the county enhanced

job performance and provided necessary training to enhance employee’s performance. The study

concluded that labour mobility led to employees’ ability to improve in decision making and

access to information. The study concluded that labour mobility in the county brought

improvement in enhancing participative environment for better performance of the employees.

5.3 Recommendation of the Study

This study recommends that:

i. Kisii County should have in place proper labour mobility policies through allocating

necessary resources to enhance employee performance in the county.

ii. Thecountyshould enhance labour mobility in order to retain skilled staff for the

county to perform competitively in the service delivery.

iii. Kisii County should motivate employees through labour mobility in order to reduce

wastage and make employees feel responsive from work they do in the bank for better

performance. This would enhance trusteeship in the county and flexible interaction

with the executives for good performance.

5.4 Suggestion for Further Study

Further study should be done on;

29

An assessment of the effects of recognition policy on performance of manufacturing

firms.Challenges facing employee recognitions practices in performance of public sector.

.

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32

APPENDIX I: QUESTIONNAIRE FOR MANAGEMENT AND EMPLOYEES

Introduction

The information you will give here will be used for educational matters only hence will be

treated with due confidentiality and anonymity.

Section A: Background Information of the Respondent

1. What is your gender?

Male ( )

Female ( )

2. Please tick your age bracket?

Less than 20 years ( )

21-30 years ( )

33

31-40 years ( )

41-50 years ( )

51 years and above ( )

3. What is your level of education?

Bachelor’s degree ( )

Diploma ( )

O-level certificate ( )

5. How long have you worked in the organization?

Less than one year ( )

2-4 years ( )

5 years and above ( )

5. To what extent do you think that the following policy of labour mobility affect employment in

Kisii County Government?

Policy of labour mobility 5 4 3 2 1Ensuring competitiveness of the organization Ensuring quality of goods and services given to

its customersTo increase productivity in the organizationImprove service delivery in the organizationImprove efficiency and effectiveness in the

organization6. Rate the following effects of effect global talent management on employment in Kisii County

Government?

Effect global talent management 5 4 3 2 1Enhances performance requirements that define the work in

measurable Improves performance standards quality, quantity and timelines Instills a sense of accountability in performance of organization in

34

the organization Improves performance through delivery of quality and timely

services to customers

7. How do you rate the following effect of reward management on employment in Kisii County

Government?

Effect of reward management 5 4 3 2 1Institutionalize and create ownership labour mobilityEmployees of the organization should be involved and left to

manage the process of labour mobilityManagement should allocate adequate resources to achieve

the set target of labour mobilitySetting few realistic target on labour mobility rather than

much objectives attempted at once Providing feedback to employees on labour mobility

35