The study established the relationship between employee competence and organizational performance of manufacturing firms. The study adopted a cross sectional research design which involved collection of data on different variable from the same place at one point in time. The design was used to collect data on the role of inventory management, employee competence and Performance of manufacturing firms in a short period of time. A sample size is the representative number of respondents chosen from the entire study population. The sample size was determined based on Yamane (1967) and 133 respondents were determined. Findings showed that employee competence has a positive significant relationship with organizational performance of manufacturing firms, this means that when organizations invest in recruiting well experience workers and workers with right qualification, it will result in into reduced with cost of production and it will enable to manufacturing firms that meet the demands of their clients and this will increase on the performance of organization. Therefore, based on the findings, manufacturing firms need to invest a lot of time in ensuring that different stock items are managed well since not all items have equal contribution to production. Employee competence is much important in the running of a manufacturing company, thus the qualification and experience of work force is to important such that good quality and timely production is achieved and this would bring about improved organizational performance.