EMPLOYEE COMPENSATION ON JOB PERFORMANCE IN THE COUNTY GOVERNMENT OF KAKAMEGA, KENYA
Abstract
Despite the fact that County Governments have been investing heavily in staff empowerment strategies since inception its effect on job performance still remains vague. Several studies have been conducted on this subject and their results were diverse. More than 25% of organizations reported no significant empowerment-oriented practices in their organizations. The main purpose of this study was to investigate the effect of employee compensation on job performance among staff in the County Government of Kakamega, Kenya. This study was anchored on the Resource Based View Theory. A correlation research design was adopted for the study and the study targeted 242 respondents, drawn from all the county departments in the County Government of Kakamega. A sample size of 171 respondents was used. The questionnaire was the main instrument for data collection. Reliability analysis results illustrated that Cronbach alpha coefficients were above 0.7. The study employed criterion validity, construct validity of the instruments, and face validity. Data analysis and interpretation were based on descriptive statistics as well as inferential statistics using SPSS version 22. The findings of the study illustrated that employee compensation and employee performance were found to be linear, positive and significant (p-value less than 0.05). It was concluded that employee compensation accounted for 62.1% variation of job performance among staff of the County Government of Kakamega. This implied that if employee compensation were enhanced in the County Governments, employee job performance will be automatically improved. It was recommended that the county governments should fairly remunerate their employees through use of various types of bonuses like annual/year-end bonus and incentive bonus to motivate employees to better performance. The output of the study would be utilized by the Department of Human Resources Management by the County Governments of Kenya in the formulation of a systematic process of applying employee compensation. It would further guide formulation of policy in the key areas of employee compensation by County Governments and other policy makers. Finally, it would also contribute to scientific knowledge base for academic purposes for researchers in the area of employee compensation.
Key Words: Employee Compensation, Job Performance, County Government of Kakamega
CITATION: Puka, S., Wanyama, K. W., & Aliata, V. L. (2019). Employee compensation on job performance in the county government of Kakamega, Kenya. The Strategic Journal of Business & Change Management, 6 (3), 627 – 635.
Full Text:
PDFReferences
Gohari, P., Ahmadloo, A., Boroujeni, M. & Hosseinipour, S. (2013).The Relationship between Rewards and Employee Performance, Interdisciplinary Journal of Contemporary Research in Business5, (3)
Mbaya, J. (2010). Effects of reward and compensation systems on employee performance within the national museums of Kenya, Unpublished Thesis, University of Nairobi.
Njanja, W. L. Maina, R. N. Kibet L. K. & Njagi, K. (2013). Effect of Reward on Employee Performance: A Case of Kenya Power and Lighting Company Ltd., Nakuru, Kenya. International Journal of Business and Management 8(21) 1833-3850.
Ozutka, H. (2012). The Influence of Intrinsic and Extrinsic Rewards on Employee Results: An Empirical Analysis in Turkish Manufacturing Industry, Business and Economics Research Journal, 3 (3).
Saeed, R., Nayyab, H. & Lodhi, R. (2013). An Empirical Investigation of Rewards and Employee Performance: A Case Study of Technical Education Authority of Pakistan, Middle-East Journal of Scientific Research 18 (7): 892-8984.
Grobler, P.A. Wärnich, S. Carrell, M.R. Elbert, N.F. and Hatfield, R.D. (2011). Human Resource Management in South Africa. 4th Edition. London: Cengage Learning.
Auditor General Report, Kenya (2018)
De Vos, A. and Meganck, A. (2009). What HR managers do versus what employee’s value: Exploring both parties views on retention management from a psychological contract perspective. Personnel Review, 38(1).
Ramlall, S. (2004). Review of employee motivation theories and their implications for employee retention within organisations. Journal of American Academy of Business, 5(1): 52–63.
Mayfield, J. and Mayfield, M. (2008). The creative environments influence on intent to turnover: a structural equation model and analysis. Management Research News, 31(1): 41-56.
Luthans, F. (2005). Organizational Behaviour. 10th Edition. Boston: McGraw-Hill.
Bratton, J. and Gold, J. (2007). Human resource management: theory and practice. 3rd Edition. London: Palgrave Macmillan.
Kreitner, R. and Kinicki, A. (2007). Organisational behaviour. 7th Edition. New York: McGraw-Hill/Irwin.
Armstrong, M. (2009). Handbook of Human Resource Management Practice. London: Kogan Page.
Martocchio, J.J. (2013). Strategic Compensation: a human resource management approach. 7th Edition. Upper Saddle River, New Jersey: Pearson.
Nujjoo, A. and Meyer, I. (2012). The relative importance of different types of rewards for employee motivation and commitment in South Africa. South African Journal of Human Resource Management, 10(2): 1-10.
Pratheepkanth, P. (2011). Reward system and its impact on employee motivation in Commercial Bank of Sri Lanka Plc, in Jaffna District. Global Journal of Management and Business Research, 11(4): 86-92.
Absar, M.M.N. Azim, M.T. Balasundaram, N. and Akhter, S. (2010). Impact of human resources practices on job satisfaction: Evidence from manufacturing firms in Bangladesh. Economic Sciences Series, 62(2): 31-42.
Odongo, L.K. (2006). Employee empowerment programs among International Non-Governmental Organizations in the Public Health Sector in Kenya. -College of Humanities and Social Sciences (CHSS) [23304], University of Nairobi.
Mustapha, N. (2013). The Influence of Financial Reward on Job Satisfaction among Academic Staff at Public Universities in Kelantan, Malaysia. International Journal of Business and Social Science, 4(3): 244-248.
Machado-Taylor, M.D.L. Soares, V.M. Ferreira, J.B. and Gouveia, O.M.R. (2011). What factors of satisfaction and motivation are affecting the development of the academic career in Portuguese higher education institutions? Revista de Administração Pública, 45(1): 33-44.
Ray, S. and Ray, I.A. (2011). Human resource management practices and its effect on employees’ job satisfaction: a study on selected small and medium sized iron and steel firms in India. Public Policy and Administration Research, 1(1): 22-31.
Ombima, H. P. A. (2014). Factors Affecting Employee Job Satisfaction in Institutions of Higher Education in Kenya: A Case Study of United States International University (USIU). A Project Report Submitted to the Chandaria School of Business.
Nel, P.S. Van Dyk, P.S. Haasbroek, G.D. Schultz, H.B. Sono, T. and Werner, A. (2004). Human resources management. South Africa: Southern Book Publishers.
Chew, J.C.C. (2004). The influence of human resource management practices on the retention of core employees of Australian organisations: An empirical study. Unpublished Doctoral Thesis. Murdoch University, Perth. Australia.
DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1322
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.