FACTORS AFFECTING THE GROWTH OF PRIVATE SECURITY FIRMS IN KENYA: A CASE STUDY OF EVEREADY SECURITY GUARDS LIMITED BY LORINE ANYANGO A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DIPLOMA IN BUSINESS MANAGEMENT TO THE KENYA INSTITUTE OF MANAGEMENT SEPTEMBER 2021 DECLARATION Declaration by the Student This research project is my original work and has not been presented to any other examination body. No part of this research should be reproduced without my consent or that of the Kenya Institute of Management. Name……………………………………….… Sign…………… Date…………… KIM/ DBM / 37762/19 Declaration by the Supervisor This research project has been submitted with my approval as The Kenya Institute of Management supervisor. Name……………………………………… Sign………………… Date………….... Lecturer Supervising For and on behalf of the Kenya Institute of Management Name……………………………………… Sign……………….… Date………………….. Branch Manager – Nairobi Branch ii DEDICATION I dedicate this research project to my family and friends for their continued support, encouragement, and passion for my education. Finally, my husband, brother and sisters, thanks for the inspiration and support throughout my life. God bless you all. iii ACKNOWLEGMENT I thank almighty God for this far. I would like to express my sincere gratitude to all those who assisted me throughout my work. Special gratitude goes to my supervisor Madam Elizabeth Musoma for her encouragement and guidance. I would also like to acknowledge Kenya Institute of Management for their training and finally to Eveready Security Guards Limited management for accepting me to carry out my study with them. iv ABSTRACT The purpose of the study was to investigate the factors affecting the growth of private security firms in Kenya. The specific objectives of the study were to assess the effect of government policy, management style, personnel classification criteria, service quality and technology advancement on the growth of private security firms in Kenya. The beneficiaries of the study will be management of Eveready Security Guards Ltd, management of other organizations and another researcher. The study adopted a descriptive research design. The target population was 132 employees from which a sample size of 66 respondents was selected using stratified random sampling technique. The instruments of data collection were questionnaires. Data was analyzed using quantitative and qualitative methods. Qualitative data was presented in the form of descriptive note and content analysis while quantitative data was presented using table and figure. From study findings of the study it was indicated that government policy was a crucial to the growth of private security firms in Kenya. This was expressed by 82% of the respondents who said that it had effect while 12% said had no effect. Management style was also a major factor that was investigated and from the findings 86% of the respondents indicated there was effect while 14% indicated there was no effect. 80% of the respondents indicated that personnel classification criteria were a crucial factor affecting the growth of private security firms in Kenya while 3% said there was no effect. In regards to technology advancement 87% of the respondents said it had effect on the growth of security firms in private security industry in Kenya, while13% said there was no effect. The study recommended that security firms should invest on new and adequate technological equipment. They should undertake regular environmental scanning with emphasis put on how emerging technology in the industry can be leveraged to enhance growth. Constant attention should be paid to the economic environment in order to provide timely information regarding investment decisions. Security firms can consolidate their internal strategies with other expansion strategies such as diversification, integration or concentration. v TABLE OF CONTENTS DECLARATION……………………………………………….….……….…………...….ii DEDICATION……………………………………………….…….….………………...…iii ACKNOWLEGMENT……………………….…….………….....……….………...…..… iv ABSTRACT………………………………….…….……………..……….…...………...…v TABLE OF CONTENTS…………………………….………………………...……...…...vi LIST OF TABLES…………………………………….………………...………...……...viii LIST OF FIGURES……………………………………..…………………………….........ix LIST OF ABBREVIATION……………… ……………………………………........….…x OPERATIONAL DEFINITION OF TERMS…………….………………………......…....xi CHAPTER ONE INTRODUCTION OF THE STUDY 1.1 Introduction………………………………..…..………….……….……….………1 1.2 Background of the Study…………………..……..…...…...…..…..…………….…1 1.3 Statement of the Problem…………………....……………...…….………………..7 1.4 Objective of the Study………………………...….…..……..…….………..………8 1.5 Research Questions…………………...……..….……………..…..……..……..….8 1.6 Significance of the Study……………...…………….…………...……......…....….9 1.7 The Scope of the Study……………....…………………..……..…………………10 CHAPTER TWO LITERATURE REVIEW 2.1 Introduction…………………………...………………….……….....………...….11 2.2 Review of Theoretical Literature………………………….…....…...……..……..11 2.3 Review of Critical Literature……………………...…………………............…...33 2.4 Summary and Gaps to be filled by the Study……………….…….…….….….…34 2.5 Conceptual Framework………………………………..…………..…....………..35 vi CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 3.1 Introduction………………………………….….…………………..….…….……37 3.2 Study Design…………………………...…….….….…...………..….….….……..37 3.3 Target Population…………………………….………………….……..….………38 3.4 Sampling Design………………………………...….………..…………..........…..38 3.5 Data Collection Instruments…….……….……...………..…..……..…....…….….39 3.6 Data Analysis Methods…….………………..…….……...……..…........….......…40 CHAPTER FOUR DATA ANALYSIS, PRESENTATION & INTERPRETATION OF FINDINGS 4.1 Introduction ............................................................................................................... 41 4.2 Presentation of Findings ............................................................................................. 41 4.3 Summary of Data Analysis ....................................................................................... ..56 CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 5.1 Introduction ................................................................................................................. 59 5.2 Summary of Findings .................................................................................................. 59 5.3 Conclusions .................................................................................................................. 60 5.4 Recommendations ........................................................................................................ 62 5.5 Suggestions for Further Study ..................................................................................... 63 REFERENCES ................................................................................................................... 64 APPENDICES Appendix - I Letter of Introduction Appendix – II Questionnaire vii LIST OF TABLES Table 3.1 Target Population………………..…..………………………………....….….38 Table 3.2 Sample Size……………….……………………….……….....……....………39 Table 4.1 Response Rate ................................................................................................ 40 Table 4.2 Gender Analysis ............................................................................................. 41 Table 4.3 Number of Years of Service ............................................................................ 42 Table 4.4 Age Bracket ..................................................................................................... 43 Table 4.5 Highest Level of Education ............................................................................. 44 Table 4.6 Position in Organization .................................................................................. 45 Table 4.7 Effects of technology advancement on growth of private security firms ....... 46 Table 4.8 Extent to which technology advancement affects growth of security firms ... 47 Table 4.8 Effects of personnel classification criteria on growth of security firms ......... 48 Table 4.10 Extent to which personnel classification affects growth of security firms .... 49 Table 4.11 Effects of service quality on growth of private security firms ....................... 50 Table 4.12 Rating of service quality on growth of private security firms ........................ 51 Table 4.13 Effects of government policy on growth of private security firms ................ 52 Table 4.14 Extent to which government policy affects growth of security firms ............ 53 Table 4.15 Effects of management style on growth of private security firms ................. 54 Table 4.16 Rating of management style on growth of private security firms .................. 55 viii LIST OF FIGURES Figure 1.1 Organization Structure……………...…………..….………...………...……..7 Figure 2.1 Conceptual Frame Work………………….……..….…………..………...…35 Figure 4.1 Response Rate ............................................................................................... 41 Figure 4.2 Gender Analysis ........................................................................................... 42 Figure 4.3 Number of Years of Service .......................................................................... 43 Figure 4.4 Age Bracket ................................................................................................... 44 Figure 4.5 Position in Organization ................................................................................ 45 Figure 4.6 Highest Level of Education ........................................................................... 46 Figure 4.7 Effects of m technology advancement on growth of private security firms .. 47 Figure 4.8 Extent to which technology e affects growth of private security firms ......... 48 Figure 4.9 Effects of personnel classification on performance management system ..... 49 Figure 4.10 Extent to which personnel classification affects growth of security firms .... 50 Figure 4.11 Effects of service quality on growth of private security firms ....................... 51 Figure 4.12 Rating of service quality on growth of private security firms ........................ 52 Figure 4.13 Effects of government policy on growth of private security firms ................ 53 Figure 4.14 Extent to which government policy affects growth of security firms ............ 54 Figure 4.15 Effects of management style on growth of private security firms ................. 55 Figure 4.16 Rating of management style on growth of private security firms .................. 56 ix LIST OF ABBREVIATIONS GDP Gross Domestic Product GNP Gross National Product ICT Information Communication Technology PSC Private Security Company SERVQUAL Service Quality x OPERATIONAL DEFINITION OF TERMS Government Policy is the regulations set by the government in order to enable them smooth running of any institution in the country. A government policy tries to put regulation towards the running of the organizations so that it may ensure the running of the right undertakings. Management Style is a manager's style of providing direction, implementing plans, and motivating people. There are many different leadership styles that can be exhibited by leaders in the political, business or other fields. Personnel Classification Employees usually are classified according to the hours worked and the expected duration of the job. Accordingly, they generally fall into three major categories: full-time, part-time, and temporary employees. Service Quality is perceived to be fitness for purpose and totality of features of produce and services that bear on its ability to satisfy a given need. All products and services have a purpose for which one is intending to be used and many consumers use these criteria to choose between the brands of products in the market. Technology Advancement is the use of computers to store, retrieve, transmit, and manipulate data or information. IT is typically used within the context of business operations as opposed to personal or entertainment technologies. Private security firms these are legally registered business entities that provide, on contractual basis, security and military services, regardless of whether they operate in situations of conflict. xi CHAPTER ONE INTRODUCTION TO THE STUDY 1.1 Introduction This chapter presents the background of the study on factors affecting the growth of private security firms in Kenya, statement of the problem, objective of the study, significance of the study, research question, limitation and finally the scope of the study. 1.2 Background of the Study The status of security to mankind cannot be stressed because the socio-economic structure of any given society depends on the security system that is available and manageable in such a society. As such, human beings and societies, since the beginning of time, have advanced ways to safeguard themselves and their properties against any threat. A number of these measures predate the standards of the public police and other uniformed but state-owned institutions. According Abrahamsen (2015) while the state remains foremost in the security sector in the present age, it is not the only significant actor because the notion that people have a right to protect themselves against any threat has existed since time immemorial. Most governments have limited resources and thus cannot provide one hundred percent security for her people (Abrahamsen and Williams 2015). This has resulted to the need for the private security companies to complement efforts of state actors in crime prevention. The whole idea of private security companies started first in the developed world and later in the developing world (Dempsey, 2008). According to citizens’ public police cannot effectively control crime by themselves, this had delegated greater relationship of citizens, organizations and companies with the private security sector and its resources to jointly form a partnership for crime prevention and reduction. The rise in crime and the growth of the private security sector are intimately connected to the decline of state capacities and services that began in the late 1980s and continued throughout the 1990s. Just like many African countries example Kenya, this was a period of declining economic success. During this period, investment and state expenditure were drastically reduced to suit the international donor requirements for economic liberalization as well as structural adjustment. As an outcome, the country struggled into continuous deterioration and lost the ability to deliver 12 services, including the provision of law and order. According to Abrahamsen (2015) the police are under-funded and poorly paid, even after recent pay rises, and often resort to extortion and corruption in order to subsidize their wages. The police force has frequently been implicated in political intimidation and violence. There is a deep and general distrust in the police, and the extent to which the police are frequently regarded as part of the problem rather than the solution to crime. Further, the decline in state capacity also led to a decline in its previous ability to create employment and thus contributed to a rapidly expanding problem of urban unemployment, swelling the shantytowns and informal settlements around major cities. According to Abrahamsen and Williams (2015), this setting has provided the conditions for an increasingly criminalized environment. Crime in Kenya, and particularly in the Nairobi County, has risen sharply in the past few years. The above scenarios have resulted in the increased growth and presence of PSCs to both directly and indirectly assist in the law enforcement process in preserving safety and security. According to Safer World, 2018Private security in Kenya entails the different forms of security provided by individuals, companies, and other organizations to a client at a fee as opposed to public security which is a public good provided by the state. The industry therefore is meant to fill the gap that the Government of Kenya (GOK) may be unable to bridge using its conventional security architecture which typically includes policing, military, and intelligence institutions. In Kenya, the private security industry is one of the fastest growing sectors of the economy and it is a significant employer. Even though it is much more visible in urban centers than it is in rural, the industry is well spread countrywide. PSCs offer a range of services including; classical physical protection of private and public properties, close protection of VIP’s, cash-in-transit escort, safeguarding ‘properties of strategic importance’ and security for sports and music events (Wairagu et al., 2014). Although the importance of Private Security Companies in Kenya is increasingly receiving recognition as playing an important role in fostering conditions conducive to development, investment and growth, the sector confronts a number of difficult challenges in the operation of Private Security Companies. This study seeks to establish the various factors that affect the performance of Private Security Companies in Kenya. The private security industry comprises those performers who provide security for people and property under contract and for profit. 13 Worldwide, the industry is experiencing a period of fast growth, and, when effectively regulated and fully accountable, can make a valuable contribution to the provision of security. However, the activities of an uncontrolled or poorly regulated private security industry can present unique governance problems, and in transitional or post-conflict states, can act as an obstacle to peace building, good governance and sustainable development. This is of particular importance given that, over the last decade, private actors have increasingly assumed roles that have traditionally been the responsibility of the state (Allen, 2015). Many states worldwide are increasingly outsourcing functions to private contractors that were traditionally undertaken by their military and police, partly in response to public sector downsizing, but also because of the changing nature of warfare. In theory at least, this new model of security provision allows governments and public institutions to increase efficiency by concentrating on their core functions whilst transferring surplus responsibilities to private companies (Berle, 2012). Although an accountable and effective private security industry can help to increase safety and security, allegations of misconduct by private security companies’ staff or of inappropriate links between companies and actors such as political parties or paramilitaries are all too frequent. These problems are particularly apparent in countries where the rule of law and democratic governance is weak or where there is widespread armed violence. One particular problem is presented by an absence of adequate legislation and regulation, which can lead to a lack of control over the type or quality of services provided by some private security companies. This is further exacerbated by the fact that unlike state security providers, private security companies are not directly accountable to the electorate or parliament, but rather to a combination of often weak regulators, company boards and shareholders. This can be particularly problematic when it is noted that there are, on occasion, close ties between former and serving government officials and private security companies, which can lead to potential conflicts of interest (Fischer, 2014). Where private security companies are armed, further problems can arise. As the introduction of armed private security companies weakens the state’s monopoly over the use of force, an unregulated private security industry can hinder rather than help law enforcement. Untrained staff with questionable backgrounds may also be able to access weaponry and use force in an 14 illegitimate way. This raises related concerns of operational independence; not only can companies empowered to use force serve as fronts for organized crime, there is a potential for them to fulfill an unauthorized political or paramilitary function, particularly in those territories emerging from armed conflict. The problems outlined in this study highlight the considerable challenges raised by the operation of private security companies, and the consequent need for practitioners to develop a comprehensive system providing for their effective regulation and oversight (Fischer, 2014). Private security provision has a long history in Kenya, and companies like KK Security, Security Group and G4S have operated in the country since the 1960’s. The main expansion in the sector can be dated to the late 1980’s and early 1990’s, and the sector appears to be one of the fastest growing sectors in the Kenyan economy. Some 2000 private security companies currently operate in the country, and large sections of the population rely on private providers for their everyday security (Ngugi, et.al, 2014). It is however important to note that no exact number of private security firms is available, the main reason being no special license is required and security companies are registered in the same manner as any other business. In addition, a vast number of companies are not registered at all. According to Holmqvist (2015), the private security sector in Kenya is regulated by Kenya Security Industry Association (KSIA) and Protective Security Industry Association (PSIA) and it is a major source of employment. It is currently employing about 50,000 people. Given the high dependency ratios in the country, it is further estimated that the industry supports indirectly a total of 195,524 people (Security Research and information center, 2004). KSIA has a membership of 26 private security companies while PSIA has a membership of 64 private security companies’ majority of which are based in Nairobi. The two Associations seeks to provide a platform for exchange of views among stakeholders of the security community, they coordinate resources for commercial, professional and public education on security issues, technology and practice and to develop and maintain a professional security industry in Kenya through quality assurance for its members. A number of Nairobi-based companies have expanded into other East African countries, and Kenyan companies have a significant share of the private security market in several neighboring countries. 15 The early development and growth of the sector in Kenya has given companies a competitive advantage in countries like Uganda, Tanzania and Rwanda, where the private security market is now expanding. KK Security has the largest operations in East Africa, with offices and personnel in Tanzania, Uganda, the Democratic Republic of Congo (DRC), Burundi, and Rwanda, where the company has almost 50 percent of the alarm market in the capital Kigali. Security Group also has a significant regional presence, with offices in Tanzania, Uganda, and Ethiopia. Similarly, Ultimate Security has established branches in Uganda and Tanzania, while Securex has offices in Uganda. Currently, Kenya is serving as a hub for the expansion of various humanitarian and development activities into southern Sudan and also the DRC, and for PSCs this presents new opportunities with international organizations, NGOs and various types of extractive industries making up the bulk of potential clients. KK Security is currently the only Kenyan company with operations in Goma and Bukuva in eastern DRC and the company is also considering expanding into the Sudan. 1.2.1. Profile of Eveready Security Guards Ltd Eveready Security Guards Ltd security is the region's leading security solutions provider with fixed base operations in Kenya servicing security contracts throughout the country. with over 6 years of service, Eveready Security Guards Ltd is dedicated to supporting sustainable safety and security for customers and the community by providing the best security solutions founded in our people, innovation and our commitment to social responsibility. Eveready Security Guards Ltd prides in fostering a performance driven environment which awards achievement, enthusiasm and team spirit and which offers each employee an opportunity for personal development and growth. Similarly, Eveready Security Guards Ltd has made substantial investments in technical resources and related personnel training at our training schools which have contributed to our standing as a market leader in the field of security services. Eveready Security Guards Ltd serves all customers with quality, discipline, loyalty, integrity and enthusiasm. Founded in 2015 as factory guards limited, the group has grown from its original Nairobi base and today, is well represented in all sectors of the security market. Eveready Security Guards Ltd employs over 1,004guardsKenya. Eveready Security Guards Ltd iso9000: 2008 certified since April 2008 which is an indication of our commitment to the achievement of zero defects in service provision. This certification evidences our commitment to customer satisfaction and quality of services. 16 Vision; to be the integrated security solutions provider of choice through exceptional quality, personnel, integrity, innovative systems and customer relations. Mission; Eveready Security Guards Ltd is dedicated to supporting sustainable safety and security for our customers and the community by providing the best security solutions founded in our people, innovation and our commitment to social responsibility. Core values; Eveready Security Guards Ltd is a safe and secure place where our employees feel proud and are empowered and dedicated to do a professional job. Eveready Security Guards Ltd serves its customers with quality, discipline, loyalty and integrity. Figure 1.1: Organizational structure of Eveready Security Guards Ltd Board of Directors Managing Director Operations Manager Assistant Manager Field Supervisor s HRM Manager Training Manager Finance Manager Marketing Manager Account Manager R&D Manager Procurement Manager Store Manager Store Assistant Accounts Assistants 17 Source: Eveready Security Guards Ltd (2021) 1.3. Statement of the Problem Insecurity and fear have become part of the main defining features of life in Kenya. A report by the United Nations (UN) Habitat characterizes Nairobi as one of the world’s most dangerous capital cities, and insecurity is a major deterrent to tourism, foreign investment and the overall economic growth in the country (Stavrou, 2012). Consequently, the high levels of violence and crime and the lack of confidence and trust in the public police force have resulted in the abundance of private security providers. However, just like any other business, PSCs are confronted by a number of difficult challenges in their day-to-day operations. The coordination and cooperation between PSC and the police is unstructured, often inefficient; and ineffective. The sector is at present largely unregulated, and standards of service and professionalism vary considerably (Ngugi, 2014). The past few years have been very challenging to most players in the private security industry. Security firms have not been spared either with the company experiencing a sharp decline in their market share and dipping profits (Wairagu et al., 2014). Several studies have been done which some have focused on Factors affecting performance of private security firms in Nairobi County: A case study of G4S security services (K) Ltd (Kaguru, and Ombui, 2014) and Impact of Industry Environmental Factors on the Performance of Security Firms in Nairobi County (Gitonga, 2019). None has focused on factors affecting the growth of security firms in private security industry in Kenya- Eveready Security Guards Ltd. Therefore, this study sought to feel the gap by establishing/determining the factors affecting the growth of security firms in private security firms in Kenya- Eveready Security Guards Ltd. 1.4. Objective of the Study 1.4.1. General Objective The main objective of the study was to determine factors affecting the growth of private security firms in Kenya. 18 1.4.2. Specific Objectives i. To establish whether technology advancement affect the growth of private security firms in Kenya. ii. To examine the effects of personnel classification criteria on the growth in private security firms in Kenya. iii. To determine the effect of service quality on the growth of private security firms in Kenya. iv. To determine the effect of government policy on the growth of private security firms in Kenya. v. To find out how management style affects the growth of private security firms in Kenya. 1.5. Research Questions i. To what extent does service quality affect the growth of private security firms in Kenya? ii. What is the effect of management style on the growth of private security firms in Kenya? iii. To what extent does technology advancement affect the growth of private security firms in Kenya? iv. How does personnel classification affect the growth of private security firms in Kenya? v. To what extent does government policy affect the growth of private security firms in Kenya? 1.6. Significance of the Study 1.6.1. The management of Eveready Security Guards Ltd The study was of importance to the management of Eveready Security Guards Ltd by providing business information. It enabled the organization to know the various ways that the organization can improve in order to be able to come up with better strategies for enhancement of effective growth of security firms. 1.6.2. Management of other Security Companies The organizations got to know the encounters which affect growth of security firms in their organization hence look for ways of improving them. The study revealed the important aspects of security firms which needed to be followed for effective growth of security firms in the organization hence helped the organizations to know where they need improvement. 19 1.6.3. Other Researchers The study benefitted other researchers since the findings and recommendation of the study can be used as secondary data in their future research. To the government, being a stakeholder, the study would shed light on the importance of purchasing that is aimed at cost reduction so as to maximize utilization of the organization properties. 1.7. Limitation of the Study 1.7.1. Co-operation The respondents did not collaborate when filing the questionnaire because of the work schedule. To overcome this, I explained to the respondents the significance of the study and how they would benefit and also to make them fully co-operate I used the introduction letter from Kenya Institute of Management. 1.7.2. Confidentiality The respondents were not willing to give data since they feared that the information could fail to be treated confidentially and this could cost them their job. I will overcame this by explaining the purpose of the study and that it was meant for academic resolution not for anything else through the use of introduction letter from Kenya Institute of Management. 1.7.3. Bureaucracy Top management had a tendency to be doubtful of researcher, some of the respondents were concerned about the extent of information the management wanted from them to contribute without any consequences, but this was addressed by sincerely using the introduction letter from Kenya Institute of Management and providing the necessary assurance to the respondents. 1.8. Scope of the Study The study focused on factors affecting the growth of private security firms in Kenya a case study of Eveready Security Guards Ltd located in South B in Nairobi opposite crater automobiles, Nairobi County. The target population of the study were the top management level, middle management level and support staff of Eveready Security Guards Ltd where a target population of 20 132 employees were taken and sample size of 66 employees. The study was carried between May and July, 2021. 21 CHAPTER TWO LITERATURE REVIEW 2.1. Introduction This chapter grants the literature review which is the process of identifying; reviewing, locating and compiling relevant information to a given study form the past academic literature. The main aim of literature review is to provide the researcher with background information about the topic under investigation. 2.2. Review of Theoretical literature 2.2.1. Government Policy As government action public policy is generally the principled guide to deed taken by the executive or administrative branches of the state with regard to a class of issues in a way consistent with law and institutional customs. According to Abrahamsen and Williams, 2015 determining public policy is a complicated process that involves the interplay of several individuals and interest groups collaborating and finishing to influence policy makers to act in a particular way. Individuals and groups use a multiplicity of tactics and tools to develop their ambitions, including advocating their positions publicly, attempting to educate supporters and opponents, and mobilizing allies on a particular issue According to Allen 2012, in this context, advocacy can be defined as attempting to influence public policy through education, lobbying, or political pressure. Advocacy groups often attempt to educate the general public as well as public policy makers about the nature of problems, what legislation is needed to address problems, and the funding required providing services or conducting research. Although advocacy is viewed as unseemly by some in the professional and research community, it is clear that public policy priorities are influenced by advocacy. Sound research data can be used to educate the public as well as policy makers, thereby improving the public policy process. According to Allen 2015, the government or the state sets rules of conduct and enforces them to control and regulate the conduct of people, to protect their property and contractual rights with an 22 access to security justice, peaceful living and social security. Since the value system of society keeps on changing, the law also keeps on changing in accordance to the requirements of changing society. One to transactions it has commercial law to protect the business. Commercial law due to transactions it has commercial law to protect the business. Commercial law is a part of civil law that deals with the rights and obligations of mercantile property. It includes law relating to various contracts, partnership, Government negotiable instruments, and insurance carriage of goods and so on. This ensures that the legal transactions are the only transactions taking place and to project the consumers. Benhabib (2010), describes policy as a deliberate plan action to guide decisions and achieve rational outcome(s). The term may apply to government, private sector organizations and groups, and individuals. A good example of policies includes; presidential executive orders, corporate privacy policies, and parliamentary rules of order. Policy or policy study may also refer to the process of making important organization decisions, including the identification of different alternatives such as programs or spending priorities, and choosing among them on the basis of the impact they will have. Policies can be understood as political, management, financial, and administrative mechanism arranged to reach explicit goals. Definition of policy and research done into the area of policy are frequently performed from the perspective of policies created by national governments, or public policy. According to Berle 2012, the goals of policies may vary widely according to the organization and the context in which they are made. Broadly, policies are typically instituted in order to avoid some negative effects that have been noticed in the organization, or to seek some positive benefit. Corporate purchasing policies provide a good example of how organizations attempt to avoid negative effects. Many large companies have policies that all purchases above a certain value must be performed through a purchasing process, like in government entities they use the public procurement and disposal Act, 2005 and Regulation, 2006 which acts as policies to govern public spending. The policy formulation process typically includes an attempt to assess as many areas of potential policy impact as possible, to lessen the chances that a given policy will have unexpected consequences. Because of the nature of some complex adaptive systems such as societies and governments, it may not be possible to assess all possible impacts of a given policy. 23 In political science the policy cycle is a tool used for the analyzing of the development of a policy item. It can also be referred as a strategist approach. Bridgman & Davis model (2014), puts a range of postmodern academic challenge linear cycle models as unresponsive and unrealistic. Policies are typically promulgated through official written documents. Such documents have standard formats that are particular to the organization issuing the policy. While such formats differ in terms of their form, policy documents usually contain certain standard components including: a purpose statement, outlining why the organization is issuing the policy, and what its desired effects is. Constituent policies create executive power entities, or deal with laws. Miscellaneous policies are dynamic policies; they are not just static lists of goals or laws. Policy blue prints have to be implemented, often with unexpected results. Social policies are what happen on the ground when they are implemented, as well as what happens at the decision-making or legislative stage. When the term policy is used, it may also refer to: Official government policy (guidelines that govern how laws should be put into operation). Blakemore, (2018) a Government or organizations policy on a particular topic, for example, the equal opportunity policy of a Government shows that the Government aims to treat its entire staff equally. A fundamental requirement of policy- writing is its use of a standard format within an organization, including a complete history of changes made to the document. This standard format, called a writing format, is at the heart of any policies system (Bhattacharya, 2015). Written government policy is required to demonstrate that the top manager is concern about the safety of the delivery of parcels some of which might be very important when they reach their destination therefore it is the responsibility of the management of the Government to integrate a proper effective and efficient policy which will enhance effectiveness in the delivery of parcels to their destination of the mea. These policies are therefore a declaration of intent; second define by everyone concerned-which means all employees of the firm – in implementing the policy. According to Andrew 2002, the policy statement should consist of three parts, the general policy statement, and the description of the organization for safe delivery of parcels and details of arrangement of implementing the policy. The general policy statement should be a declaration for the intention of the organization to safeguard the safe delivery of customers parcels and the public is a paramount importance, that every effort will be made to involve all managers, personnel, team leaders and employees in the implementation of safe delivery procedures for parcels, that safe 24 parcel delivery legislation will be compiled within the spirit as well as the letter of the Government levy (Fischer, 2014). Fischer (2014), central government has also played a role in stipulating companies to plan their manpower resources systematically. The planning commission, the ministry of labor and institute of applied man power research have made projections from time-to-time which projects man power demand and supply for various skills categories, supervisors and managers over a given period of time. Government departments require companies to supply data on their manpower for various purposes, such as data compliance, or competence to execute certain contracts. While providing this data, companies have led to develop inventories of their personnel by various categories of classification, which have been used for classification, which have been used for their own internal manpower planning. The government also has a special quarter required with regards to deprived groups of the population, termed schedule, castes/scheduled tribes. Government department monitors the Government’s fulfillment of their obligations in this regard. 2.2.2. Management Style Management style is a manager's style of providing direction, motivating people and implementing plans. There are several different leadership styles that can be demonstrated by leaders in the political, business or other fields. The authoritarian leadership style or autocratic leader keeps strict, close control over followers by keeping close directive of policies and procedures given to followers. Keeping main emphasis on the distinction of the authoritarian leader and their followers, these types of leaders make sure to only create a distinct professional relationship. Direct supervision is what they trust to be key in maintaining a successful environment and followership. In fear of supporters being fruitless, authoritarian leaders keep close supervision and feel this is essential in order for everything to be done. Authoritarian leadership styles often follow the vision of those that are in control, and may not necessarily be compatible with those that are being led. According to Boyd 2014, authoritarian leaders have a focus on efficiency, as other styles, such as a democratic style, may be seen as a hindrance on progress. Styles of management are characteristic ways of making decisions and relating to subordinates. Management styles can be categorized into two main contrasting styles, autocratic and permissive. 25 An autocratic management style is one where the manager makes decisions unilaterally, and without much regard for subordinates. As an outcome, decisions will replicate the opinions and personality of the manager, which in turn can venture an image of a confident, well managed business. On the other hand, strong and competent subordinates may irritate because of limits on decision-making freedom, the organization will get limited initiatives from those "on the front lines", and turnover among the best subordinates will be higher. It is used in times of crisis where the time for discussion is unavailable and the managers are responsible to give orders only. These orders need to be obeyed immediately by the staff so that further problems are not caused. According to Boyd 2016, this style is also used in the military and police forces where instructions are given and need to be taken seriously without hesitation or questions. An authoritarian form is also essentially dictatorial. Nevertheless, decisions do take into account the best benefits of the employees as well as the business. Communication is again generally downward, but feedback to the management is encouraged to maintain morale. This style can be highly beneficial when it causes loyalty from the employees, leading to a lower labor turnover, thanks for stressing on social needs. Instead, for an oppressive management style the lack of worker motivation can be typical if no loyal connection is established between the manager and the people who are managed. It shares disadvantages with an autocratic style, such as employees becoming dependent on the leader (Button, 2016). An undoubted management style involves the manager sharing some characteristics with that of an autocratic manager. The greatest aspect of a convincing manager is that they maintain control over the entire decision-making process. The most prominent difference here is that the persuasive manager will spend more time working with their subordinates in order to try to convince them of the benefits of the decision that have been made. A persuasive manager is more aware of their employees, but it would be incorrect to say that the persuasive style of management is more inclusive of employees. According to Dempsey 2018, just as there are occasions where the use of an autocratic management style would be appropriate, there are also instances where a company will benefit from a persuasive management style. For example, if a task that needs to be completed but it is slightly complicated it may be necessary to rely upon input from an expert. In such a situation, the 26 expert may take time to explain to others why events are happening in the order in which they will occur, but ultimately the way in which things are done will be that person's responsibility. In those circumstances, they are highly unlikely to delegate any part of the decision-making process to those who are lower down in the hierarchy. Wairagu (2014) in a democratic style, the manager allows the employees to take part in decisionmaking: therefore, everything is agreed upon by the majority. The communication is extensive in both directions (from employees to leaders and vice versa). This style can mainly be useful when complex decisions need to be made that require a range of professional skills: for example, when a new ICT system needs to be put in place, and the upper management of the business is computerilliterate. Overall business’s point of view, job satisfaction and quality of work will improve, and sharing contributions from subordinates will be much higher. However, the decision-making process could be severely slowed down unless decision processes are streamlined. The need for consensus may avoid taking the ‘best’ decision for the business unless it is managed. A very modern style of management, chaotic management gives the employees total control over the decision-making process. Some modern companies have adopted this style of management and in return have become some of the most influential and innovative companies (Porter, 2004). Examples of authoritarian communicative behavior: a police officer directing traffic, a teacher ordering a student to do his or her assignment, and a supervisor instructing a subordinate to clean a workstation. All of these positions require a distinct set of characteristics that give the leader the position to get things in order or get a point across. Authoritarian Traits: sets goals individually, engages primarily in one-way and downward communication, controls discussion with followers and donates interaction. Several studies have confirmed a relationship between bullying, on the one hand, and an autocratic leadership and an authoritarian way of settling conflicts or dealing with disagreements, on the other. An authoritarian style of leadership may create a climate of fear, where there is little or no room for dialogue and where complaining may be considered futile (Stavrou, 2012). Schreier (2015) paternalistic leader works is by acting as a father figure by taking care of their subordinates as a parent would. In this style of leadership, the leader supplies complete concern for his followers or workers. In return he receives the complete trust and loyalty of his people. 27 Workers under this style of leader are expected to become totally committed to what the leader believes and will not strive off and work independently. The relationship between these co-workers and leader are extremely solid. The workers are expected to stay with a company for a longer period of time because of the loyalty and trust. Not only do they treat each other like family inside the work force, but outside too. These workers are able to go to each other with any problems they have regarding something because they believe in what they say is going to truly help them. Stavrou (2012), one of the downsides to a paternalistic leader is that the leader could start to play favorites in decisions. This leader would include the workers more apt to follow and start to exclude the ones who were less loyal. In today’s market paternalism is more difficult to come by according to Padavic and Earnest who wrote “business dimensional and Organizational Counseling.” They believe this because there have become more lay-offs and stronger unionization. This affects paternalistic leaders because the co-workers may not believe that their jobs are 100% ensured. When this happens, workers begin to look for bigger and better job opportunities instead of staying at one company for a longer period of time. Because of this, the leader may be thinking that you could be leaving and not fully believe you when you tell them something about a job opportunity. This could put the workers and leader at risk for a bad situation (Schreier, 2015). The democratic leadership style consists of the leader sharing the decision-making abilities with group members by promoting the interests of the group members and by practicing social equality. This style of leadership encompasses discussion, debate and sharing of ideas and encouragement of people to feel good about their involvement. The boundaries of democratic participation tend to be circumscribed by the organization or the group needs and the instrumental value of people's attributes (skills, attitudes, etc.). The democratic style encompasses the notion that everyone, by virtue of their human status, should play a part in the group's decisions. However, the democratic style of leadership still requires guidance and control by a specific leader. The democratic style demands the leader to make decisions on who should be called upon within the group and who is given the right to participate in, make and vote on decisions (Diamond, 2011). The laissez-faire leadership style is where all the rights and power to make decisions is fully given to the worker. This was first described by Lewin, Lippitt, and White in 1938, along with the 28 autocratic leadership and the democratic leadership styles. The laissez-faire style is sometimes described as a "hands off" leadership style because the leader delegates the tasks to their followers while providing little or no direction to the followers. If the leader withdraws too much from their followers it can sometimes result in a lack of productivity, cohesiveness, and satisfaction (Subramanian, 2006). Laissez-faire leaders allow followers to have complete freedom to make decisions concerning the completion of their work. It allows followers a high degree of autonomy and self-rule, while at the same time offering guidance and support when requested. The laissezfaire leader using guided freedom provides the followers with all materials necessary to accomplish their goals, but does not directly participate in decision making unless the followers request their assistance (Diamond, 2011). Managers using the transactional leadership style receive certain tasks to perform and provide rewards or punishments to team members based on performance results. Managers and team members set predetermined goals together, and employees agree to follow the direction and leadership of the manager to accomplish those goals. The manager possesses power to review results and train or correct employees when team members fail to meet goals. Employees receive rewards, such as bonuses, when they accomplish goals. The transformational leadership style depends on high levels of communication from management to meet goals. Leaders motivate employees and enhance productivity and efficiency through communication and high visibility. This style of leadership requires the involvement of management to meet goals. Leaders focus on the big picture within an organization and delegate smaller tasks to the team to accomplish goals (Boyd, 2016). 2.2.3 Personnel Classification Criteria When it comes to classifying employees as full-time, part-time, or temporary, it’s really up to the employer. Federal and state laws do not define these terms, so employers have a lot of flexibility when categorizing employees this way. However, these terms ought to be defined as part of an employment classification policy that is consistent throughout the organization. Clarifying the definitions of employment classifications is important as employees need to understand their employment status and eligibility for benefits (Schreier, 2015). 29 Employees usually are classified according to the hours worked and the expected duration of the job. Accordingly, they generally fall into three major categories: full-time, part-time, and temporary employees. When designing definitions of employee classification, many employers align classifications to eligibility for health insurance benefit plans. For example, many healthcare plans exclude part-time employees who work less than a specific number of hours a week. Employers should also be cognizant of legally mandated benefits required by state and federal law, such as workers’ compensation, unemployment compensation, unpaid family and medical leave, and military leave. The criteria for eligibility for these benefits lie outside the control of the employer regardless of employment classification (Mandel, 2012). With the development of Information and Communication Technologies and increasing accessibility to the Internet, organizations become vulnerable to various types of threats. In fact, their information becomes exposed to cyber-attacks and their resulting damages. Threats come from different sources, like employees’ activities or hacker’s attacks. The financial losses caused by security breaches usually cannot precisely be detected, because a significant number of losses come from smaller-scale security incidents, caused an underestimation of information system security risk. Thus, managers need to know threats that influence their assets and identify their impact to determine what they need to do to prevent attacks by selecting appropriate countermeasures (Fischer, 2014). Vulnerabilities consist of weaknesses in a system which can be exploited by the attackers that may lead to dangerous impact. When vulnerabilities exist in a system, a threat may be manifested via a threat agent using a particular penetration technique to cause undesired effects. The financial threat loss to organizations could be significant. According to the 11th Annual Computer Crime and Security Survey 74.3% of the total losses are caused by: viruses, unauthorized access, laptop or mobile hardware theft and theft of proprietary information. Indeed, a research conducted by McCue in, indicates that 70% of fraud is perpetrated by insiders rather than by external criminals but that 90% of security controls are focused on external threats (Holmqvist, 2015). To find these threats, threats sources and specific areas of the system that may be affected should be known, so the information security assets can be protected in advance. Thus, effective security classification is necessary to understand and identify threats and their potential impacts. In fact, 30 security threats can be observed and classified in different ways by considering different criteria like source, agents, and motivations. Threat’s classification helps identify and organize security threats into classes to assess and evaluate their impacts, and develop strategies to prevent, or mitigate the impacts of threats on the system. There are several known computer system attacks classifications and taxonomies in these papers. We notice that many investigators have proposed taxonomies that classify attacks based on the intended effect of the attack like a denial-of-service attack and others incorporate the technique by which the attacker achieves this effect, such as bypassing authentication or authority (Mandel, 2012). A hybrid threat classification model based on combining threat classification techniques and impacts to better identify threat’s characteristics in order to propose suitable countermeasures to reduce risks. The rest of the paper is organized as follows. The next section outlines threat classification principles. With the development of Information and Communication Technologies and increasing accessibility to the Internet, organizations become vulnerable to various types of threats. In fact, their information becomes exposed to cyber-attacks and their resulting damages. Threats come from different sources, like employees’ activities or hacker’s attacks. The financial losses caused by security breaches usually cannot precisely be detected, because a significant number of losses come from smaller-scale security incidents, caused an underestimation of information system security risk. Thus, managers need to know threats that influence their assets and identify their impact to determine what they need to do to prevent attacks by selecting appropriate countermeasures (Safer, 2018). Vulnerabilities consist of weaknesses in a system which can be exploited by the attackers that may lead to dangerous impact. When vulnerabilities exist in a system, a threat may be manifested via a threat agent using a particular penetration technique to cause undesired effects. The financial threat loss to organizations could be significant. With the development of Information and Communication Technologies and increasing accessibility to the Internet, organizations become vulnerable to various types of threats. In fact, their information becomes exposed to cyber-attacks and their resulting damages. Threats come from different sources, like employees’ activities or hacker’s attacks. The financial losses caused by security breaches usually cannot precisely be detected, because a significant number of losses come from smaller-scale security incidents, caused an underestimation of information system security risk. Thus, managers need to know 31 threats that influence their assets and identify their impact to determine what they need to do to prevent attacks by selecting appropriate countermeasures (Schreier, 2015). Vulnerabilities consist of weaknesses in a system which can be exploited by the attackers that may lead to dangerous impact. When vulnerabilities exist in a system, a threat may be manifested via a threat agent using a particular penetration technique to cause undesired effects. The financial threat loss to organizations could be significant. According to the 11th Annual Computer Crime and Security Survey, 74.3% of the total losses are caused by: viruses, unauthorized access, laptop or mobile hardware theft and theft of proprietary information. Indeed, a research conducted by McCue in indicates that 70% of fraud is perpetrated by insiders rather than by external criminals but that 90% of security controls are focused on external threats. To find these threats, threats sources and specific areas of the system that may be affected should be known, so the information security assets can be protected in advance. Thus, effective security classification is necessary to understand and identify threats and their potential impacts. In fact, security threats can be observed and classified in different ways by considering different criteria like source, agents, and motivations. Threat’s classification helps identify and organize security threats into classes to assess and evaluate their impacts, and develop strategies to prevent, or mitigate the impacts of threats on the system. There are several known computer system attacks classifications and taxonomies in these papers. We notice that many investigators have proposed taxonomies that classify attacks based on the intended effect of the attack like a denial-of-service attack and others incorporate the technique by which the attacker achieves this effect, such as bypassing authentication or authority (Stavrou, 2012). Computer security, cyber security or information technology security (IT security) is the protection of computer systems and networks from information disclosure, theft of or damage to their hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide. The field is becoming more significant due to the increased reliance on computer systems, the Internet and wireless network standards such as Bluetooth and Wi-Fi, and due to the growth of "smart" devices, including smartphones, televisions, and the various devices that constitute the "Internet of things". Owing to its complexity, both in terms of politics and technology, cyber security is also one of the major challenges in the contemporary world (Wairagu, 2014). 32 Phishing is the attempt to acquire sensitive information such as usernames, passwords, and credit card details directly from users by deceiving the users. Phishing is typically carried out by email spoofing or instant messaging, and it often directs users to enter details at a fake website whose "look" and "feel" are almost identical to the legitimate one. The fake website often asks for personal information, such as log-in details and passwords. This information can then be used to gain access to the individual's real account on the real website. Preying on a victim's trust, phishing can be classified as a form of social engineering. Attackers are using creative ways to gain access to real accounts. A common scam is for attackers to send fake electronic invoices to individuals showing that they recently purchased music, apps, or other, and instructing them to click on a link if the purchases were not authorized (Abrahamsen, 2015). Social engineering, in the context of computer security, aims to convince a user to disclose secrets such as passwords, card numbers, etc. or grant physical access by, for example, impersonating a senior executive, bank, a contractor, or a customer. This generally involves exploiting peoples trust, and relying on their cognitive biases. A common scam involves emails sent to accounting and finance department personnel, impersonating their CEO and urgently requesting some action. Reverse engineering is the process by which a man-made object is deconstructed to reveal its designs, code, architecture, or to extract knowledge from the object; similar to scientific research, the only difference being that scientific research is about a natural phenomenon (Allen, 2012). Computers control functions at many utilities, including coordination of telecommunications, the power grid, nuclear power plants, and valve opening and closing in water and gas networks. The Internet is a potential attack vector for such machines if connected, but the Stuxnet worm demonstrated that even equipment controlled by computers not connected to the Internet can be vulnerable. In 2014, the Computer Emergency Readiness Team, a division of the Department of Homeland Security, investigated 79 hacking incidents at energy companies. Vulnerabilities in smart meters (many of which use local radio or cellular communications) can cause problems with billing fraud (Benhabib, 2010). The Internet of things (IoT) is the network of physical objects such as devices, vehicles, and buildings that are embedded with electronics, software, sensors, and network connectivity that enables them to collect and exchange data – and concerns have been raised that this is being 33 developed without appropriate consideration of the security challenges involved. While the IoT creates opportunities for more direct integration of the physical world into computer-based systems, it also provides opportunities for misuse. In particular, as the Internet of Things spreads widely, cyber-attacks are likely to become an increasingly physical (rather than simply virtual) threat. If a front door's lock is connected to the Internet, and can be locked/unlocked from a phone, then a criminal could enter the home at the press of a button from a stolen or hacked phone. People could stand to lose much more than their credit card numbers in a world controlled by IoT-enabled devices. Thieves have also used electronic means to circumvent non-Internet-connected hotel door locks (Berle, 2012). An attack that targets physical infrastructure and/or human lives is sometimes referred to as a cyber-kinetic attack. As IoT devices and appliances gain currency, cyber-kinetic attacks can become pervasive and significantly damaging. Today, computer security comprises mainly "preventive" measures, like firewalls or an exit procedure. A firewall can be defined as a way of filtering network data between a host or a network and another network, such as the Internet, and can be implemented as software running on the machine, hooking into the network stack (or, in the case of most UNIX-based operating systems such as Linux, built into the operating system kernel) to provide real-time filtering and blocking. Another implementation is a so-called "physical firewall", which consists of a separate machine filtering network traffic. Firewalls are common amongst machines that are permanently connected to the Internet (Bhattacharya, 2015). Some organizations are turning to big data platforms, such as Apache Hadoop, to extend data accessibility and machine learning to detect advanced persistent threats. However, relatively few organizations maintain computer systems with effective detection systems, and fewer still have organized response mechanisms in place. As a result, as Reuters points out: "Companies for the first time report they are losing more through electronic theft of data than physical stealing of assets”. The primary obstacle to effective eradication of cybercrime could be traced to excessive reliance on firewalls and other automated "detection" systems. Yet it is basic evidence gathering by using packet capture appliances that puts criminals behind bars (Boyd, 2014). 2.2.4. Service Quality Measuring service quality is difficult due to its unique characteristics: Intangibility, heterogeneity, inseparability and perishability (Boyd, 2014). Service quality is linked to the concepts of 34 perceptions and expectations. Customers’ perceptions of service quality result from a comparison of their before-service expectations with their actual service experience. The service will be considered excellent, if perceptions exceed expectations; it will be regarded as good or adequate, if it only equals the expectations; the service will be classed as bad, poor or deficient, if it does not meet them (Boyd., 2014). Quality in business engineering and manufacturing has a pragmatic integration as the non-inferiority or superiority of something. It is also defined as fitness for purpose that is the component, are said to possess good quality if they work well in the purpose for which they are meant for. Philip Crosby goes further and defines quality as conformation to requirement (how well a product conforms to design and other specifications). According to (ISO) International Organization for Standardization 8402: Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy status or implied need (Boyd, 2016). Quality policy is a document jointly developed by management and quality experts to express the quality objectives of the organization, the acceptable level of quality, and the duties of specific departments to ensure quality. Quality policies are general guidelines put in place by organization to guide the quality of an organization’s products and services (Boyd, 2016). They should be stated clearly together with specifications on how they will be implemented, must be circulated to employees, and must provide a framework that allow for regular improvements. Good quality management requires quality action to be planned, improved, and controlled. The process achieves control at one level of quality performance; the plans are made to improve performance on an incremental basis using tools and techniques such as Pare to Analysis (Button, 2016). Juran (2012) believes quality is associated with customer satisfaction and dissatisfaction with goods and services. He emphasized the need for ongoing quality improvement through succession of small improvement throughout the organization. Quality management is the process of identifying and administering the activities needed to achieve the quality objective of the organization. Quality is by no means a new concept in modern business. Boyd (2016) told his employees, the first job we have is to turn out the quality merchandise that customers will buy and keep on buying. The cost operation and quality of goods or items that create customer’s satisfaction all contributions to the profitability. Of these determinants of profitability, the most significant factor in determining the long-term success or failure of any organization is quality. High quality 35 goods can provide an organization with a competitive edge. High quality result to reduced cost from returns and network. Most importantly high quality generates satisfied customers, who reward organization with continued patronage and favorable word of mouth-to-mouth advertising. According to Dempsey (2018), building and maintaining quality into an organization’s goods and services and more importantly into infrastructure of the organization itself is not an easy task. Purchasing of goods of high quality is absolutely vital to keep customers, sustain profitability and gain market share. As consumer expectations have risen, a focus on quality has permitted other key sectors of the economy, most notably health care, education not for the profits and government. Research of Lindsay states that successful management relies on a system perspective, one of the most elements of total quality. A purchasing agent should not only be responsible for low-cost procurement, but should maintain a clear focus on the quality of purchased goods and materials. Poor quality often from time pursue caused by planning and scheduling. Quality of raw materials and the timeline of their delivery are critical, purchasing department can help firm to achieve quality by scheduling quality conscious supply conscious supplier, ensuring that purchase order clearly define the quality requirement of goods specified. Quality conformance is the extent to which firm supplier can supply goods with the quality characteristics determined in a quality of design supply. The ultimate goal of process improvement and innovation effort is to create products and services whose quality is so high that consumers both external and internal extol them (Dempsey, 2018). Button (2016) promoting quality unleashes the chain reaction of quality. Several benefits from improving a process rework decreases, quality improves cost per good unit decreased, price can be cut and workers morale goes up. These aspects lead to further benefits, less employee’s absence, less burnout, interest in the job and increased motivation to improve work. Stressing quality can produce all the desired result less work, lower unit cost, price flexibility, improve competitive position, increased demand, larger profits more job and more secure jobs. According to Button (2016), quality term in material purchasing helps in quality problem solving. It works to improve quality by identifying and solving specific quality related problems facing organizations goods, such terms are sometimes referred to as corrective action teams or quality circle (CAT). 36 Standardization is defined as the process of formulating and applying rules for the orderly approach to specific activity for the benefit and with the cooperation of the concerned and in particular for the promotion of the overall economy. Standardization has enhanced increased efficiency in purchasing and sub-contracting operations and has enhanced multiple vendors high volume items which will be up for the required standards. There are improved deliveries schedule in which goods required will be delivered at the right time, right place standard also right standard and is important when it is adopted. It saves the time designed and hence customer’s satisfaction is when the goods are of the right standards, there is no wastage and hence no losses are encouraged (Button, 2016). There is also the limitation to purchase a costly brand of item because the buyers are adhered to the standard only from any supplier Button (2016) urges that quality system, continuous improvement, zero defects quality management system (QMS), and just in time is all management system that continuous to make large contributions and maintenance of quality internally in companies and across supply chain. He further explained that international organization for standardization ISO release its 9000:2000 standard with radical revision that justify the inclusion in the section of what ISO call a quality management system. The principles are used as framework to guide organization towards improved performance. The principle is derived from the collective experience and knowledge of international experts. The principles are as follows: customer focused leadership, involvement of people, process approach and system approach to management continual improvement. Juran (2010) explains that quality is aimed at contacting sporadic problems or avoidance cost. They later require introduction of new culture intended to change attribute and increase organization with knowledge. Bhattacharya (2015) quotes that the underlying principle of total quality view is that controls must start with identification of customers quality requirement and end only when the product has been placed in the hands of the customer who remain satisfied.IN later work, using the survey data, carter and colleagues (1998),developed an instrument to measure the quality in purchasing and identified some distinctive factors namely: importance of purchasing function, interaction with suppliers, interaction with other functional areas, human resource management. 37 However, there are concerned about the reliability of the instrument they develop, some of the factors include indicates that did not represent the factors they were intended to measure. A purchasing agent should not only be responsible for low-cost procurement, but should maintain a clear focus on the quality of purchased goods and materials. Poor quality often results from time pressure caused by insufficient planning and scheduling. Quality of raw materials and the time line of their delivery are critical, purchasing department can help firm to achieve quality by scheduling quality conscious supply conscious supplier, ensuring that purchase order clearly define the quality requirement of goods specified. Quality conformance is the extent to which-to-which firm supplier can supply goods with the characteristics determined in a quality of design supply (Bhattacharya, 2015). The ultimate goal of process improvement and innovation effort is to enable products and services whose quality is so high that consumers both external and internal excel them. Promoting quality unleashes the chain reaction of quality. Several benefits from improving a process, rework decreases, quality improves, cost per good unit decreased, price can be cut and workers morale goes up. These aspects lead to further benefits, less employee’s absence, less turnout, more interest in the job and increased motivation to improve work. Stressing quality can produce all the desired result less work, lower unit cost, price flexibility, improve competitive position, increased demand, larger profits non job and non-secure jobs (Fischer, 2014). According to Berle (2012) quality term in material purchasing helps in quality problem solving. I t works to improve quality by identifying and solving specific quality related problems facing organization goods, such terms are sometimes referred to as corrective action teams or quality circle (CAT). Standardization is defined as the process of formulating and applying rules for the orderly approach to specific activity for the benefit and with the corporation of the concerned and I particular for the promotion of the overall economy. Standardization has enhanced increased efficiency in purchasing and sub-contracting operations and has enhanced multiple vendors’ high volume. Quality is the degree of excellence of goods. Most organization believes in quality and quality also goes with time. The better the quality the longer the time used to achieve it, hence the management should ensure each time gets enough time so that it comes out of good quality. The quality 38 management division (QMD) of the American Society of quality (1999) defines the quality system as the organization structure, procedure, process and resources needed to implement quality management. Quality has nothing to do with how bright or shiny something is or how much it cost or color it has. A customer who consumes your goods or experiences your services has certain needs and expectations in mind. If the goods exceed or meets those expectations time and time again, then in mind of that customer it is a quality service. Customers compare the actual performance of the products or the total service experience to their own set of expectations and reacts a judgment that is neutral (Holmqvist, 2015). Several studies in the literature have used the concept of service quality to evaluate internal customer satisfaction level. Berle (2012) for the purchasing function, the customers on the company department for whom the material or services are purchased and thus are defined as internal customers. A widely used instrument to measure customers’ satisfaction has been developed by Berle (2012) using that tool, we operationalize customers’ satisfaction following the set of service quality dimension identified by Anderson (2009), Namely: Reliability (the ability to purchase department to perform the promised service dependability and accountability); responsiveness (the willingness to purchase department to help internal customers and provide prompt services); assume (the knowledge and courtesy of purchasing department and their ability to convey trust and confidence); empathy (the caring indivualized attention the purchasing department provides to the customer). Quality is therefore defined by balancing technical consideration such as fitness for use, performance, safety and reliability with economics factors including price and availability in drafting quality specification, the aim should always be the minimum statement of optimum quality so as not to increase the cost unnecessary, restricts the process of manufactured nor limit the use of possible alternatives. In the purchase process the organization must ensure that the purchased products conform to specified purchase requirements. The type and extent of control applied to the supplier and purchased products shall be dependent upon the effect of the purchased product on the subsequent product realization. The organization shall evaluate and select supplier based on the ability to supply goods in accordance with the organization requirement. This standard does not apply to some items. Purchasing information shall describe the products to be purchased including when appropriate the requirement for approval of goods, procedures, 39 processes and requirement for qualification of personnel and QMS requirement. The organization shall ensure adequacy of the specified requirement prior to their communication to the supplier (Abrahamsen, 2015). The organization shall establish and implement the inspection or other activities necessary for ensuring that the purchased goods meet specified purchase quality requirement (Abrahamsen, 2015). When organization intend to perform verification of the supplier’s premises, the organization shall state the intended verification arrangement and method of goods released in the purchase information. To the measurement and monitoring of goods, organization shall monitor and measure goods characteristics of the product to verify that goods quality have been met. This shall be carried out in different stages of product realization process in accordance with planned arrangement. Goods released and services delivery shall not proceed unapproved by a relevant authority and where applicable by customers. The organization shall also conduct internal audit on quality whereby it will be at a planned interval to determine whether the QMS conforms to the planned arrangement, to the arrangement of this standard, and to the requirement established by the organization and see if the quality standards are effectively implemented and maintained. Audit program shall be planned, taking into consideration the status and important of the process and areas to be audited as well as the result of the previous audits. Auditors shall not audit their own work. The responsibilities and requirement planning and conducting audits and for report results and maintaining records shall be defined in a document procedure. The fundamental of quality still exist and are important despite the tremendous changes in product, process environment and customer management. All industries face competition for customers and resources and such companies must remain competitive. Quality is now taking precedent over price, availability and reliable and organization must now realize that quality can be utilized as a competitive tool (Mandel, 2012). 2.2.5. Technology Advancement The security industry is constantly changing and evolving. Technology has crept into every aspect of our lives, including security. Gone are the days when security involved a few surveillance cameras and a security guard. Technological evolution has completely transformed the security 40 industry for the better. Security companies that embrace technology have a clear edge over the competition. The security market, which is now worth $39.1 billion, is set to boom by 2025, in part because of technology (Schreier, 2015). In this post, we’ll discuss how technology’s contribution has changed security for the better. We’ll also look at how this technological evolution has changed customer expectations. This technological shift came with a lot of changes in the workings of the security industry. This is how technology has changed the operations of security companies. The effect of technology is felt both on both large- and small-scale security. This means from home security to multi-million companies’ security (Stavrou, 2012). Nowadays, companies are more stringent with their recruitment process. Security companies, like Patrol Points, hire staff members that are tech-savvy and adaptable to change. That’s because most companies have shifted from doing things manually to full-scale automation. For instance, security guards no longer have to manually peruse areas for any suspicious activities. Instead, they receive live feeds from surveillance cameras straight to their handheld devices. They also apply for jobs, report shifts, and check-in and out of work electronically (Wairagu, 2014). In the near past, qualifications for being a security guard were virtually non-existent. Nowadays, security guards might actually need supplementary training on technology. In the past, smartphone use for security guards during working hours was heavily frowned upon. These days, it’s okay for guards to spend a significant chunk of their working hours on their phones. In fact, some guard companies give their guards smartphones with pre-installed apps. This increase in smartphone use is again because of a shift from manual to automatic processes. However, this doesn’t mean it’s okay for your security guards to watch YouTube videos when at work. Any smartphone use should be strictly for security reasons. That’s why companies give guards their own company phones (Diamond, 2011). Technology has streamlined the cooperation between security guards and police to keep crime at bay. This is by facilitating a quick response to any incidence that’s deserving of police attention. Technology has been instrumental in police investigations and the recovery of stolen items. Facial 41 recognition helps to track criminals, and mobile apps have made it easier to send the location to law enforcers (Dempsey, 2018). These days, clients expect robust security services at reasonable prices. So, they expect to deal with a technologically-sophisticated company. Its why security companies are rushing to jump on the technology bandwagon. Customers expect nothing less than real-time accountability and ultimate transparency. Companies can only achieve these requirements by embracing technology. Customers these days also want to be more involved in the security of their premises. They may want to receive live feeds of their surveillance cameras or video footage from the past. That’s where cloud services come in to allow clients access to all the security information they may need. In the past, facial recognition was only for top-level security and multi-million companies. Fast forward a decade or so later, and we have facial recognition in our phones (Button, 2016). Very soon, we’ll see facial recognition software in our workplaces and neighborhoods. In fact, by the look of things, this technology is set to replace keycards and fingerprints to secure restricted areas. These days there’s an app for everything, including for security personnel. Security companies have embraced mobile apps to streamline their operations. These apps aren’t the ones that you download on the Apple Store or App Store. These are bespoke apps developed for specific companies. They enable security personnel to guard, monitor, report, and track any suspicious activity. They also make for speedy communication in case of any incident. Some apps allow streaming from security cameras to the guards’ smartphones. Security companies align the apps’ functionality for their specific clients. That way, they can render their services and keep security as tight as they can (Bhattacharya, 2015). Cloud services have been all the rage, especially in the past half-decade or so. Security companies have much to gain from these services. They have given the companies a great away to enhance transparency and accountability with their clientele. Companies can upload anything from surveillance recordings to employee check-ins. Cloud services also give these companies a great way to share any relevant information with their employees and clients (Benhabib, 2010). 42 2.3 Critical Review According to Boyd (2014), government policy affects the growth of security firms in private security industry in Kenya but on the same page the authors failed to indicate especially how government policy affect the growth of security firms in private security industry in Kenya hence creating a gap that the researcher aims to examine further. According to Berle (2012), management style affects the growth of security firms in private security industry in Kenya but on the same page the authors failed to indicate especially how management style affect the growth of security firms in private security industry in Kenya hence creating a gap that the researcher aims to examine further. According to Abrahamsen (2015), personnel classification criteria affect the growth of security firms in private security industry in Kenya but on the same page the authors failed to indicate especially how personnel classification criteria affect the growth of security firms in private security industry in Kenya hence creating a gap that the researcher aims to examine further. According to Diamond (2014), service quality affects the growth of security firms in private security industry in Kenya but on the same page the authors failed to indicate especially how service quality affect the growth of security firms in private security industry in Kenya hence creating a gap that the researcher aims to examine further. According to Schreier (2015), technology advancement affects the growth of security firms in private security industry in Kenya but on the same page the authors failed to indicate especially how technology advancement affect the growth of security firms in private security industry in Kenya hence creating a gap that the researcher aims to examine further. 2.4. Summary The government policy is a set of rules and regulations that are put in place to regulate the conduct of people, to protect their conduct or contractual rights with an access to securing justice, peaceful leaving, and social security. The idea of government as a sovereign power distinguishes governmental procurement from the central contracting processes. As a sovereign power, the government rights procurement rules through statute, regulations, executive orders, policies and procedures. 43 Effective leadership style is seen as a strong source of management growth and sustained competitive advantage, leadership style helps organization to attain their existing objectives more efficiently by connecting job performance to valued rewards and by ensuring that employees have the resources needed to get the job done. Classification of employees usually are according to the hours worked and the expected duration of the job. Therefore, they generally fall into three major categories: full-time, part-time, and temporary employees. When designing definitions of employee classification, many employers align classifications to suitability for health insurance benefit plans. For example, many healthcare plans exclude part-time employees who work less than a specific number of hours a week. Engineering, manufacturing and Quality in business, has a reasonable interpretation as the superiority and non-inferiority or of something; it is also known as fitness for purpose. Quality is conditional, perceptual, and somewhat subjective attribute and may be understood differently by people. Consumers may focus on the specification quality of a merchandise/service, or how it compares to opponents in the marketplace. Producers might measure the conformance quality, or degree to which the product/service was produced correctly. Scientific advances do not go smoothly and when they do acknowledge of customers is still an advantage to securing a success. Technological change can position threat to those companies who progressively find they cannot compete successfully with their more advanced rivals. Organizations are discovering that old solutions do not work with new problems, since the business parameters have changed. Figure 2.1: Conceptual Framework Independent Variables Dependent Variable Management Style Government Policy Service Quality Growth of private security firms Personnel Classification Technology Advancement 44 Source: Author (2021) 2.5.1. Government Policy Government policy is the principles set by the government in order to enable them smooth running of any institution in the nation. A government policy tries to put regulation towards the running of the organizations so that it may ensure the running of the right undertakings. Government policy can affect development of security firms in private security industry in Kenya. 2.5.2. Management Style The management style is a manager's style of providing direction, implementing plans, and motivating people. There are many different leadership styles that can be exhibited by leaders in the political, business or other fields. Therefore, management style affects growth of private security firms in Kenya. 2.5.3. Personnel Classification Criteria Employees are classified according to the hours worked and the expected duration of the job. Accordingly, they generally fall into three major categories: full-time, part-time, and temporary employees. In this matter, personnel classification criteria can affect growth of private security firms in Kenya. 2.5.4. Service Quality Quality is perceived to be ability for purpose and totality of structures to produce and services that bear on its ability to satisfy a given essential. All goods and services have a purpose for which one is intending to be used and many consumers use these measures to choose between the brands of goods in the market. In this matter, service quality can affect growth of private security firms in Kenya. 45 2.5.5. Technology Advancement Information technology (IT) is the practice of computers to store, retrieve, transmit, and manipulate data or information. IT is typically used within the context of business operations as opposed to personal or entertainment technologies. Information technology is considered to be a subset of information and communications technology (ICT). growth of private security firms in Kenya. 46 Therefore, technology affects CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 3.1. Introduction This chapter entails a detailed attempt of describing the research methodology that the study adopted, highlighting in what way data needed for the study was gathered, organized, compiled and analyzed in relation to the research problem in question. The methodology included issues like research design to be used, the target population, sample design, data collection instruments and procedures and data analysis. 3.2. Research Design Research design is a detailed plan of how an investigation will happen. This research used descriptive design. Descriptive research design is a scientific method which involves observing and describing the behavior of a subject without influencing it in any way. It measures questions such as what, why, how, when and where (Mugenda and Mugenda, 2003). The descriptive research design helps the research to lay out the research questions, methodologies, implementation procedures, and data collection and analysis for the conduct of a research project. 3.3. Target Population According to Kothari 2004, target population is the complete set of individual’s areas of objects with some common characteristics to which the study wants to generalize the result of the study. Kothari (2004), target population is a universal set of the study of all members of real or hypothetical set of people, events or objects to which an investigator wishes to generalize the result. In this case the target population was 132 employees of Eveready Security Guard Limited which comprised the top-level management, middle level management and support staff. Table 3.1: Target Population Categories Target Population Percentage (%) Top Level Management 2 1 Middle Level management 4 2 Support Staff 126 97 Total 132 100 47 Source: Eveready Security Guard Limited (2021) 3.4. Sampling Design Sample size is the number of observations in a sample. The study adopted stratified random sampling technique. Sampling is a procedure through which some elements are selected from the population to be representatives of others. The basic idea is that by selecting a sample conclusion can be drawn about the entire population. The reason for using the stratified random sampling technique is because it focuses on important sub-populations and ignores irrelevant ones, improves the accuracy or efficiency of estimation, and permits greater balancing of statistical power of tests of differences between strata by sampling equal numbers from strata varying widely in size, (Kothari, 2004). Stratified random sampling was used to select respondents in the three population categories. This made the respondents in the target population to have equal and unbiased chances of participating in the study. The method was effective because the smaller size was considered. According to Mugenda and Mugenda (2003), a sample size of 10-50% of the target population is acceptable for a descriptive research. In this research, 50% of the target population will be the sample size. Table 3.2: Sample Size Categories Target Sample size 50% of Percentage Population the target (%) population Top Level Management 2 1 2 Middle 4 2 3 Support Staff 126 63 95 Total 132 66 100 Level management Source: Author (2021) 48 3.5. Data Collection Instruments and Procedures Questionnaires were used as the main data collection instruments. A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents (Kothari, 2004). The motive of using the questionnaire as data collection instrument was because it assisted in the collection of information from the respondents without affecting their schedules in their jobs and answer the questions at their own free time. A distinction was made between open-ended and closed-ended questions. An open-ended question asked the respondent to formulate their own answer, whereas a closed-ended question enabled the respondent pick an answer from a given number of options. The response options for a closedended question should be exhaustive and mutually exclusive. 3.5.1 Reliability and Validity of the Instruments According to Kathari 2004, a research instrument is said to be valid if it measures what it is supposed to measure. In order to pre-test validity of the instruments and to perfect the questionnaire items’ concept and wording, content validity of the instruments were used to measure the degree to which the items represent specific areas covered by the study. The validity of instrument was measured by its repeated reviews by experts and field tests. To validate the instruments, the research checked whether there was ambiguous, confusion and poorly prepared items. The instruments were tested to ascertain their validity and sustainability in collecting the required data. Mugenda and Mugenda (2003) explained that reliability is a measure of degree to which a research instrument yields consistent results or data after an accepted number of repeat trials. The test-retest technique of measuring the reliability of the instrument was used to estimate biasness in order to fit within the required goals. A pilot study was conducted to determine the validity and reliability of the instruments. In piloting, five convenient respondents were selected outside the sampled population for the study. The study instruments were administered randomly to the selected respondents. 3.6. Data Analysis Methods According to Kothari (2004), data analysis procedure includes the process of packaging the collected information putting in order and structuring its main components in a way that findings 49 can be easily and effectively communicated. After the fieldwork, before analysis, all questionnaires will be adequately checked for reliability and verification. The data collected were analyzed using qualitative and quantitative methods and the findings were presented using tables, figures and charts. CHAPTER FOUR DATA ANALYSIS PRESENTATION AND INTERPRETATION OF FINDINGS 4.1. Introduction This chapter presented and discussed the analysis of the data collected from various respondents in the organization. The data was interpreted according to research questions and objectives. Data was analyzed using descriptive statistics such as tables and pie charts that were data quantitative in nature. 4.2. Quantitative Analysis 4.2.1. Response Rate Table 4.1: On the Response Rate the Findings were as follows Category Responded Frequency Percentage (%) 92% Did not Respond 61 50 5 Total 66 100% 8% Source: Author (2021) Did not respond 8% Responded 92% Source: Author (2021) From Table 4.1 and figure 4.1, 92% from the total 100% of the respondents answered the questionnaire while 8% did not answer and did not respond. This shows that the highest number of respondents answered the questions. Based on the analysis, the response rate was high. 4.2.2. Gender Rate of Respondents Table 4.2: Gender Analysis Category Frequency Percentage (%) Male 32 52% Female 29 48% Total 61 100% Source: Author (2021) Figure 4.1: Gender of Respondents 51 frequency 48% Male Female 52% Source: Author (2021) From Table 4.2 and figure 4.2, the female respondents were 48% while the male counter parts were 52%. This implies that the number of female respondents in this organization was higher than that of male respondents. From the study, it can be concluded that there was gender equality in conducting the study. 4.2.3. Age of Respondents Table Table 4.3: Age Analysis Category Frequency Percentage (%) 20 21-30years 12 31-40 years 26 43 41-50 years 18 30 5 7 61 100 Above 50 years Total Source: Author (2021) 52 Figure 4.2 Ages of Respondents 50 45 40 35 30 25 20 15 10 5 0 21-30 years 31-40 years 41-50 years Above 50 years Source: Author (2021) From Table 4.3 and figure 4.3, 20% of respondents were 21-30 years, 43% had 31-40 years, and 30% had 41-50 years. And above 50 years were 7%. From the analysis the highest number of respondents were aged between 31-40 years. This age bracket, 31-40 years, were considered as mature enough and therefore easily cooperated and were able to give good feedback. 4.2.4. Respondents’ Education Level Table 4.4: Respondents’ Education Level Category Frequency Percentage (%) Certificate 11 18 Diploma 17 28 Bachelor 29 48 4 6 61 100 Post Graduate Total Source: Author (2021) 53 Figure 4.3: Respondents’ Education Level 60 48 50 40 28 30 18 20 6 10 0 Certificate Diploma Barchelor Post Graduate Source: Author (2021) From Table 4.4 and figure 4.4, 18% of the respondent had certificate level of education, 28% had diploma level, 48% had bachelor and 6% had post graduate level of education. From the highest number of the respondents 48% it was implied that most of the employees had bachelor level of education. This showed that the respondents had knowledge in the field and therefore interpreted the questions properly. Table 4.5: Response Work Experience Responses Frequency Percentage (%) Less than 5 years 13 21 6-10 years 31 51 11-15 years 16 26 2 2 61 100 Above 16 years Total Source: Author (2021) 54 Figure 4.4: Response Work Experience 60 51 50 40 26 30 21 20 10 2 0 Less than 5 Years 6-10 years 11-15 years Above 16 years Source: Author (2021) From Table 4.5 and figure 4.5, 21% of the respondents had less than 5 years, 51% had 6-10 years of experience, 26% had 11-15 years, and 2% had over 16 years of experience. From the highest number of the respondents (51%) it was clear that most of the employees in the organization had between 6-10 years of experience. This implied that most employees had the required skills. 4.3. Position in organization Table 4.6: Position in organization Responses Frequency Percentage (%) Top Level Management 1 2 Middle Level Management 2 3 Operational Management 58 95 Total 61 100 Source: Author (2021) 55 Figure 4.5: Position in organization 100 90 80 70 60 50 40 30 20 10 0 Top level management Middle level management Operational management Source: Author (2021) From Table 4.6 and figure 4.6, 2% of the respondents were from top level management, 3% were middle level management and 95% were operational management. From the highest number of the respondents (95%) it was clear that most of the respondents in the organization were operational management level. 4.4. Government Policy Table 4.7: Whether Government Policy affects the growth of private security firms in Kenya Response Frequency Percentages (%) Yes 50 82 No 11 12 Total 61 100 Source: Author (2021) 56 Figure 4.6: Whether Government Policy affects the growth of private security firms in Kenya No 18% Yes 82% Source: Author (2021) From Table 4.7 and figure 4.7, 82% of the respondents indicated that government policy affects the growth of private security firm in Kenya; while 18% claimed that government policy does not affect the growth of private security firms in Kenya. However, judging from the highest number of the respondents (82%) it was clear that government policy affects the growth of private security firms in Kenya. Table 4.8: To what extent does Government Policy affect the growth of private security firms in Kenya? Category Frequency Percentage (%) Great Extent 28 46 High Extent 19 31 Moderate Extent 7 11 Low 6 10 No Effects 1 2 Total 61 Source: Author (2021) 57 100 Figure 4.7: To what extent does Government Policy affect the growth of private security firms in Kenya? 50 45 40 35 30 25 20 15 10 5 0 Great extent High extent Modern extent Low effect No effect Source: Author (2021) From Table 4.8 and figure 4.8, 46% of the respondent said that the rate of government policy effects on the growth of private security firms in Kenya was great extent, 31% said was high extent, 11% implied it was moderate, 10% claimed that government policy effects on the growth of private security firms in Kenya was low, while 2% indicated no effects. From the highest number of the respondents (42%), the rate of government policy effects on the growth of private security firms in Kenya was great 4.4.1 Management Style Table 4.9: Whether Management Style affects the growth of private security firms in Kenya Category Frequency Percentage Yes 54 86 No 7 14 Total 61 100 Source: Author (2021) 58 Figure 4.8: Whether Management Style affects the growth of private security firms in Kenya No 14% Yes 86% Source: Author (2021) From Table 4.9 and Figure 4.9, 90% of the respondents said that management style affects the growth of private security firms in Kenya, while 10% implied that management style does not affect the growth of private security firms in Kenya. From the highest number of the respondents, 90% it is clear that management style affects the growth of private security firms in Kenya. Table 4.10: To what extent does Management Style affect the growth of private security firms in Kenya? Category Frequency Percentage (%) Great Extent 24 39 High Extent 17 28 Moderate Extent 11 18 Low 5 8 No Effects 4 7 Total 61 59 100 Source: Author (2021) Figure 4.9: To what extent does Management Style affect the growth of private security firms in Kenya? 45 40 35 30 25 20 15 10 5 0 Great extent High extent Moderate extent Low No effects Source: Author (2021) From Table 4.10 and Figure 4.10, 39% of the respondents indicated that the rate of management style effects on the growth of private security firms in Kenya was great extent, 28% said it was high extent, and 18% implied it was moderate extent, 8% claimed that the rate of management style effects on the growth of private security firms in Kenya was low, while 7% said no effect. From the highest number of the respondents 39%, it was clear that the rate of management style effects on the growth of private security firms in Kenya was great. 4.5. Personnel Classification Criteria Table 4.11: Whether Personnel Classification Criteria affects the growth of private security firms in Kenya Category Frequency Percentage (%) Yes 49 80 No 12 20 Total 61 100 Source: Author (2021) 60 Figure 4.10: Whether Personnel Classification Criteria affects the growth of private security firms in Kenya No 20% Yes No Yes 80% Source: Author (2021) From Table 4.11 and figure 4.11, 80% of the respondents indicated that personnel classification criteria affect the growth of private security firms in Kenya, while 20% indicated that personnel classification criteria do not affect the growth of private security firms in Kenya. From the highest number of the respondents, 80% it was clear that personnel classification criteria affect the growth of private security firms in Kenya. Table 4.12: To what extent does Personnel Classification Criteria affect implementation of construction projects in Kenya? Category Frequency Percentage (%) 46 Great Extent 28 High Extent 13 21 Moderate Extent 8 13 Low 7 11 No Effects 5 9 61 Total 61 100 Source: Author (2021) Figure 4.11: To what extent does Personnel Classification Criteria affect implementation of construction projects in Kenya? 46 50 45 40 35 30 25 20 15 10 5 0 21 13 Great extent High extent Moderate extent 11 Low 9 No effect Category Source: Author (2021) From Table 4.12 and Figure 4.12, 46% of the respondents indicated that personnel classification criteria effects on the growth of private security firms in Kenya was great extent, 21% said it was high extent, 13% said it was moderate, 11% of the respondents said it was Low, while 9% indicated no effects. From the highest number of the respondents, it therefore implied that the personnel classification criteria effect on the growth of private security firms in Kenya was great. 4.5.1. Service Quality Table 4.13: Whether Service Quality affects the growth of private security firms in Kenya Category Frequency Percentage Yes 55 90 No 6 10 61 100 Total Source: Author (2021) 62 Figure 4.12: Whether Service Quality affects the growth of private security firms in Kenya No 10% Yes 90% Source: Author (2021) From Table 4.13 and Figure 4.13, 90% of the respondents indicated that service quality affects the growth of private security firms in Kenya, while 10% claimed that service quality does not affect the growth of private security firms in Kenya. However, it was clear from the highest number of the respondents 90%, that service quality greatly affects the growth of private security firms in Kenya. Table 4.14: To what extent does Service Quality affect the growth of private security firms in Kenya? Category Frequency Percentage (%) Great Extent 22 36 High Extent 18 30 Moderate Extent 16 26 Low 3 5 No Effects 2 3 63 Total 61 100 Source: Author (2021) Figure 4.13: To what extent does Service Quality affect the growth of private security firms in Kenya? 40 35 30 25 20 15 10 5 0 36 30 26 5 Great extent High extent Moderate extent Low 3 No effect Source: Author (2021) From Table 4.14 and Figure 4.14, 36% of the respondents said that rate of service quality on the growth of private security firms in Kenya was great extent, 30% said it was high extent, 26% implied that it was moderate, 5% claimed that the rate of service quality effects on the growth of private security firms in Kenya was low, while 3% indicated no effects. Judging from the highest number of the respondents 36%, it is clear that the rate of service quality effects on the growth of private security firms in Kenya was great. 4.5.2. Technology Advancement Table 4.15: Whether Technology Advancement affect the growth of private security firms in Kenya Categories Frequency Percentage (%) Yes 53 87 No 8 13 Total 61 100 Source: Author (2021) 64 Figure 4.14 Whether Technology Advancement affect the growth of private security firms in Kenya. No 13% Yes 87% Source: Author (2021) From Table 4.15 and Figure 4.15 87% of the respondents indicated that technology advancement affects the growth of private security firms in Kenya, while 13% claimed that technology advancement does not affect the growth of private security firms in Kenya. However, it was clear from the highest number of the respondents 87% that technology advancement greatly affects the growth of private security firms in Kenya. From the study it can be concluded that technology advancement affects the growth of private security firms in Kenya. Table 4.16: To what extent does Technology Advancement affect the growth of private security firms in Kenya? Categories Frequency Percentage (%) Great Extent 31 51 High Extent 15 25 Moderate Extent 9 15 Low 4 7 No Effect 2 2 Total 61 100 Source: Author (2021) 65 Figure 4.15: To what extent does Technology Advancement affect the growth of private security firms in Kenya? 60 51 50 40 25 30 15 20 7 10 2 0 Great extent High extent Moderate extent Low No effect Category Source: Author (2021) From Table 4.16 and Figure 4.16, 51% of the respondents said that rate of mate technology advancement on the growth of private security firms in Kenya is great extent, 25% said its high extent, 15% implied that it was moderate, 7% claimed that the rate of technology advancement effects on the growth of private security firms in Kenya was low, while 2% indicated no effect. Judging from the highest number of the respondents 51%, it was clear that the rate of technology advancement effects on the growth of private security firms in Kenya was great. 4.6. Summary of Data Analysis 4.6.1. General Information From the study analysis of findings 92% of the questionnaires that were taken to the field were answered while 8% did not answer and did not respond. The female respondents were 48% while male counter parts were 52%. On the age distribution of the respondents 20% of the respondents were 21-30 years, 43% had 31-40 years, and 30% had 41-50 years, and above 51 years were 7%. On the highest level of education 18% of the respondents had certificate level of education, 28% had diploma level, 48% had bachelor and 6% had post graduate level of education, and finally on the level of the respondents working experience 21% of the respondents had less than 5 years, 51% had 6-10 years of experience, 26% had 11-15 years of 66 experience, and 2% had over 16 years of experience. 4.6.2. Government Policy From the findings it indicated the effects of government policy on the growth of private security firms in Kenya where majority of the respondents indicated that government policy has an effect in the organization with 82% agreeing while 18% had the opinion that it does not affect the organization. 4.6.3. Management Style The effects of management style on the growth of private security firms in Kenya showed that management style has an effect on the organization with a representation of 86% who agreed it does affect while 14% had the opinion that it does not affect the organization. This indicated that management style does affect the organization. 4.6.4. Personnel Classification Criteria Majority of respondents stated the effects of personnel classification criteria on the growth of private security firms in Kenya where majority of the respondents indicated that personnel classification criteria have an effect in the organization with a representation of 80% while 20% had the opinion that it does not affect the organization. 4.6.5. Service Quality The analysis indicates the effects of service quality on the growth of private security firms in Kenya where 90% agreed that it does affect the growth of private security firms in private security industry in Kenya while 10% had the opinion that it does not affect the growth of private security firms in Kenya. 4.6.6. Technology Advancement The analysis shows the effects of technology advancement on the growth of private security firms in Kenya where 87% indicated that it does affect the growth of private security firms in Kenya while 13% indicated it does not affect it. 67 CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1. Introduction The purpose of this study was to investigate the factors affecting the growth of private security firms in Kenya with reference to Eveready security firm. The research explored the effects of government policy, management style, personnel classification criteria, service quality and technology advancement on the growth of private security firms in Kenya. This chapter therefore provides a summary of the study's primary findings, as well as conclusions that represent the study's attempts to address specific concerns, as well as recommendations for further research. 68 5.2. Summary Findings 5.2.1 To what extent does Government Policy affect the growth of private security firms in Kenya? From the responses, 46% of the respondents indicated that the rate of effects caused by government policy on the growth of private security firms in Kenya is great extent, 31% said the effects are high extent, 11% said the effects are moderate extent, while 10% said the effects caused by government policy on the growth of private security firms in Kenya is low and 2% indicated no effects. 5.2.2. What is the effect of Management Style on the growth of private security firms in Kenya? From the study findings, 39% of the respondents said that the rate of management style effects on the growth of private security firms in Kenya is great extent, 28% said its high extent, and 18% implied that it’s moderate extent, while 8% claimed that the rate of management style effects on the growth of private security firms in Kenya is low and 7% said no effects. The above clearly indicated that management style influence are crucial factors to the growth of private security firms in Kenya. 5.2.3. How does Personnel Classification Criteria affect the growth of private security firms in Kenya? From the responses, 46% of the respondents indicated that the rate of effects caused by personnel classification criteria on the growth of private security firms in Kenya is great extent, 21% said that personnel classification criteria effects on the growth of private security firms in Kenya are high extent, 13% said the effects are moderate extent, while 11% said the effects on the growth of private security firms in Kenya are low, while 9% indicated no effects. 5.2.4. To what extent does Service Quality affect the growth of private security firms in Kenya? From the study 36% of the respondents indicated that the rate of service quality effects on the 69 growth of private security firms in Kenya is great extent, 30% indicated that the rate of service quality effects on the growth of private security firms in Kenya is high extent, 26% indicated that the rate is moderate extent, while 5% indicated that the rate of effects of service quality effects on the growth of private security firms in Kenya is Low while 3% said no effects. 5.2.5. To what extent does Technology Advancement affect the growth of private security firms in Kenya? From the study 51% of the respondents indicated that the rate of technology advancement effects on the growth of private security firms in Kenya is great extent, 25% indicated that the rate of technology advancement effects on the growth of private security firms in Kenya is high extent, 15% indicated that the rate is moderate extent, 7% indicated that the rate of technology advancement effect on the growth of private security firms in Kenya is Low, while 2% indicated no effect. 5.3. Conclusions The study concludes that private security industry lacks a regulatory framework and Kenya should develop a PSC regulatory framework since the lack of it affects the performance of PSCs to a great extent. There exists no 'code of conduct' for PSC self-regulation in the industry, there is no legislation with a clear set of criteria against which license applications can be assessed on a case-by-case basis, demands for thorough background checks can be undertaken of PSC employees and owners prior to licensing, a strong system of industry self-regulation to complement to national legislation and licensing systems clearly defining the type of services PSCs may be allowed to provide. The study concludes that a comprehensive regulatory framework or system at the national level is essential for both achieving public oversight and control over the private security sector. Appropriate regulations are essential to fully enhance and put a clear understanding about the relationships between the private and public security sectors. Legislation impacts on the performance of Eveready Security Firm. The service delivery and performance of G4S can be enhanced if states establish a government policy that ensure that all personnel employed by Eveready Security Firm are individually not only licensed to work within the private security 70 sector but are also trained to high standards for effective and efficiency operations of the Eveready Security Firm. The study concluded that the new crime and violence trends in Kenya; terrorist, militia and gang activities and the apparent failure of state security agents including private security firms, against criminals is a sign of poor strategic management of crime and violence. The causes of crime are often linked to institutional weaknesses of society. To achieve the goal of adequate and reliable security provision public security firms need to improve on the quality of service they provide to their client. As well Drivers of quality service provision particularly those touching on standards and may include and not limited to policy, employee capacity, technology adoption and partnership of state agencies among private security firms in the aim of mitigating crime. From the study it was concluded that all security firms operating in Kenya have adopted competitive strategies. It was also concluded that choice of competitive strategies is determined mainly by the firm size and the need to either attract new customers or build customer loyalty of the already existing customers by offering them what they consider most important and valuable. The small sized firms favored a low-cost strategy with the medium and large sized firms favoring the adoption of differentiation and focus strategy. The major challenges faced by the security firms are meeting government conditions, imitation by other firms, and increase in number of competitors, rapid changes in customer needs, huge financial requirements, and technological factors respectively. The study concludes that technology applied by the private security companies in providing security to commercial banks did not have a significant influence on effectiveness of outsourced private security services by commercial banks. This is despite the security companies using up to date technology in providing security services to the bank and providing advisory services to the client bank on technological changes that the bank should adopt to mitigate physical security risks. 71 5.4. Recommendations 5.4.1. Government Policy The study recommends all states should develop a national policy on the regulation of the private security sector as well as its rapport with the state security providers. The policy should be designed to ensure the highest possible standards in both spheres and be supplemented with appropriate primary legislation and regulations. Locally operating companies and those operating beyond the country should be regulated by national legislation. A better regulated private security industry could possibly improve security conditions in Kenya besides creating more opportunities for employment. 5.4.2. Management Style The study recommends that security companies should have a good relationship with other stakeholders in the industry. The security companies should develop and maintain relationships with internal and external stakeholders to ensure that their cooperation can be obtained when required for key operations. Moreover, the security companies should outsource the services of police where security matters require armed personnel. These interdependences are helpful for the efficient security operations. 5.4.3. Personnel Classification Criteria The study recommends that there should be formation of professional associations through which security operators could be represented in official committees and voices their legitimate concerns. Comprehensive licensing systems that clearly defines the type of services that PSCs may be allowed to provide and providing for the revocation of licenses in certain cases should be established. The legislation should establish a clear set of criteria against which license applications are assessed on a case-by-case basis. 5.4.4. Service Quality There is need for the private security sector employees to get enough training in the necessary technical skills and knowledge, and interactive skills. Coupled with good communication skills, their service provision will be of great result. Interactive skills help employees to provide courteous, caring, responsive and empathetic service There is need to establish a formal Partnership of State Agencies as both have many common goals, and the private security industry 72 provides a major protective role in Kenyan society. The importance of cooperation and partnerships between private security firms and other security agencies should be promoted because it leads to much enhanced quality service provision and other incentives for both public and private security actors. 5.4.5. Technology Advancement The study recommends that there should be alarms that are integrated to fire system panels and also surveillance systems should always be integrated with alarm systems. Moreover, fire detection systems should be of high standards together with body scanners, CCTV and mobile communications. Additionally, when alarms are integrated to fire panels, redundancies should be incorporated by installing both radio and GPRS system where the client gets automated response when there is any intrusion. Moreover, security technology should always be adequate and should be improved with time as technology evolves. 5.5. Suggestions for Further Study This study was not conclusive of the factors affecting the growth of private security firms in Kenya, but further call for more studies to be conducted on staff training, organizational structure and cultural practices as key factors affecting the growth of private security firms in Kenya REFERENCES Abrahamsen, R. and Williams, M. C. (2015), Globalization of Private Security Country Report: Kenya, Report prepared for The Department of International Politics, University of Wales, Aberystwyth Allen, F., Gale, D. (2012). Comparing Financial Systems. MIT Press, Cambridge, MA. Allen, F., Qian, J., Qian, M. (2015). Law, finance, and economic growth in China. Journal of Financial Economics. In press. 73 Benhabib, J., Spiegel, M.M. (2010). The role of financial development in growth and investment. Journal of Economic Growth 5, 341–360. Berle, A.A., Means, G.C. (2012). The Modern Corporation and Private Property. Harcourt Brace Jovanovich, New York. Bhattacharya, S., Pfleiderer, P. (2015). Delegated portfolio management. Journal of Economic Theory 36, 1–25. Boyd, J.H., Levine, R., Smith, B.D. (2014). The impact of inflation on financial sector performance. Journal of Monetary Economics 47, 221–248. Boyd, J.H., Prescott, E.C. (2016). Financial intermediary-coalitions. Journal of Economics Theory 38, 211– 232. Button, M., and George, B. (2016), Regulation of private security: Models for Analysis. In: M. Gill (ed.) Handbook of Security, Basingstoke: Palgrave Macmillan, 563 – 585. Diamond, D.W. (2014). Financial intermediation and delegated monitoring. Review of Economic Studies 51, 393–414. Diamond, D.W. (2011). Monitoring and reputation: The choice between bank loans and directly placed debt”. Journal of Political Economy 99, 689–721. Dempsey, J. S. (2018), Introduction to private security, Belmont: Thomson Higher Education. Fischer, R. J. and Green, G. (2014), Introduction to security, (7th ed.), Burlington: Butterworth Heinemann. Gitonga, A. W. T. (2019). Impact of Industry Environmental Factors on the Performance of Security Firms in Nairobi County (Doctoral dissertation, United States International University-Africa). Holmqvist, C. (2015), Private Security Companies: The Case for Regulation, SIPRI Policy Paper No. 9, SIPRI, Stockholm. Human Rights Watch/Africa Watch (2013), Divide and Rule: State-sponsored Ethnic Kaguru, K., & Ombui, K. (2014). Factors affecting performance of private security firms in Nairobi 74 County: A case study of G4S security services (K) Ltd. International Journal of Science and Research, 3(2), 281-286. Violence in Kenya, (New York); Kenya. Mandel, R. (2002), The Privatization of Security, Armed Forces & Society, Vol. 28, (1), 129–151. Mugenda,O.M. and Mugenda A.G. (1999). Research methods, Quantitative Approaches. Acts press, Nairobi Mugenda, O.M. and Mugenda A.G. (2003) Research methods, Qualitative and qualitative approaches: Acts press, Nairobi Ngugi, R., (2004), Security Risk and Private Sector Growth in Kenya: A Survey Report”, Nairobi; Kenya Institute for Public Policy Research and Analysis. Safer World (2018), “Implementing Community Poling in Kenya”, Nairobi, Kenya. February 2008. Schreier, F. and Caparini, M. (2001), Privatizing Security: Law, Practice and Governance of Private Military and Security Companies”, Geneva Centre for the Democratic Control of Armed Forces (DCAF), Occasional Paper no. 6. Geneva, March 2005. Stavrou, M. (2012), Crime in Nairobi: Results of a Citywide Victim Survey”, Safer Cities Series #4 Nairobi; UN Habitat). Wairagu, F. Kamenju, J. and Singo M. (2014), Private Security in Kenya, Nairobi: Security Research and Information Center 75 APPENDIX II QUESTIONNAIRE Kindly answer the questions by putting a tick in the appropriate box or by writing in the space provided. SECTION A: GENERAL INFORMATION 1. Gender Male { } Female { } 2. Age Between 21-30 { } Between 31-40 { } Between 41-50 { } Above 51 years { } 3. Highest level of education Certificate { } Diploma { } Bachelor’s Degree { } Post Graduate { } 4. Working Experience Less than 5 years { } 6-10 years { } 11-15 years { } Above 16 years { } i SECTION B: GOVERNMENT POLICY 5. Does government policy affect the growth of security firms in private security industry in Kenya? Yes { } No { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 6. To what extent does government policy affect the growth of security firms in private security industry in Kenya? Great Extent { } High Extent { } Moderate Extent { } Low { } No effect { } Please explain __________________________________________________________________ __________________________________________________________________ SECTION C: MANAGEMENT STYLE 7. Does management style affect the growth of security firms in private security industry in Kenya? Yes { } No { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ ii 8. What is the effect of management style on the growth of security firms in private security industry in Kenya? Great Extent { } High Extent { } Moderate Extent { } Low { } No effect { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ SECTION D: PERSONNEL CLASSIFICATION CRITERIA 9. Do personnel classification criteria affect the growth of security firms in private security industry in Kenya? Yes { } No { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 10. What is the effect of personnel classification criteria on the growth of security firms in private security industry in Kenya? Great Extent { } High Extent { } Moderate Extent { } Low { } No effect { } iii Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ SECTION E: SERVICE QUALITY 11. Does service quality affect the growth of security firms in private security industry in Kenya? Yes { } No { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 12. To what extent does service quality affect the growth of security firms in private security industry in Kenya? Great Extent { } High Extent { } Moderate Extent { } Low { } No effect { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ iv SECTION F: TECHNOLOGY ADVANCEMENT 13. Does technology advancement affect the growth of security firms in private security industry in Kenya? Yes { } No { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 14. To what extent does technology advancement affect the growth of security firms in private security industry in Kenya? Great Extent { } High Extent { } Moderate Extent { } Low { } No effect { } Please explain __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ Thank You for Your Co-operation v