No space on the boot disk to update kernel

boot your vm with a linux livecd like Ubuntu Mate or something. once booted use gparted to shrink your / partition and grow /boot to 1G . This will work given the fact that your / has some space left.

Or there is another way. From VMware documentation here : http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1004047

For Workstation 7 and later and Player 3.x and later, you can increase the virtual disk from the GUI: Select the virtual machine from the Inventory. Click Edit Virtual Machine Settings. Click Hard Disk. Click Utilities > Expand, enter the new size, then click Expand. Complete the steps in Increasing the size of a disk partition (1004071), so that the guest operating system is aware of the change in disk size.

add 1G using above steps. using Gparted move your partitions around and resize /boot .

Below file consume more space on your system (/boot). if you can remove the older file you can free up some space. Make sure you have a backup before attempting remove.

initramfs-2.6.32-358.el6.x86_64.img
System.map-2.6.32-358.el6.x86_64
vmlinuz-2.6.32-358.el6.x86_64