The effect of supported regulations on organizational performance of companies listed in the Nairobi securities exchange in Kenya

Abstract

Purpose: The purpose of the study was to establish the effect of supported regulations on organizational performance of listed companies in the Nairobi Securities Exchange in Kenya Methodology: Descriptive and correlation survey research designs were employed. Stratified simple random sampling technique was applied in drawing a sample of 224 respondents from population of 534 top managers of the ten stratums of the NSE listed companies in Kenya Results: The correlation between supported regulations and organizational performance was weak and positive (0.252) and significant (0.000). The correlation coefficient of 25.2% indicates that the combined effect of the predictor variables have supported regulations have a moderate and positive correlation with acceptance of organization performance. The correlation between organization performance and type of work, types of flexibility, management support, was 0.495, 0.275 and 0.699 respectively with all variables bearing a statistically significant relationship. The regression results showed that the goodness of fit for the regression between organization performance and supported regulations was satisfactory. An R squared results of 0.063 which is 6.3% of the variance in supported regulations by listed companies are explained by the variances in the organization performance. Policy recommendation: It is recommended that companies should reinforce supported regulations in order to enhance company performance. This would be by formulating well written down policies that ensure favorable working conditions. The job applicants would be attracted to work in an organizations that are perceived to satisfy the needs of its employees by providing competitive compensation and providing a conducive work environment by enhancing work life balance practices for all the employees. This would further help to retain talent for effective organizational performance.