THE RELATIONSHIP BETWEEN FINANCIAL STRESS AND ORGANIZATIONAL PERFORMANCE OF KENYA’S FLOWER INDUSTRY

MARGARET WANJIKU GATHATWA

Abstract


In this competitive era, organizations are focusing on developing their workforce and improving the performance in the organization. One of the tools available to managers for motivating and satisfying the employees is counseling. Performance improvement ultimately helps the organization to meet its goals and objectives. The aim of this study was to examine the relationship between financial stress and organizational performance of Kenya’s flower industry and determine the moderating effect of counseling on organizational performance in Kenya’s flower industry. The research adopted cross section survey research design and the target population was companies in the flower industry in Kenya. The managers and employees of the flower farms were the key respondents in this study. The instrument of data collection was semi-structured questionnaires. The data collected was analyzed using descriptive and inferential statistics, and presented in the form of frequency distribution tables, pie charts, graphs, means, modes and percentages. To achieve this SPSS version 20 was used. Pearson’s correlation coefficient and multiple regression analysis was the main tool to test for relationships among variables. The study established that there existed an average level of financial stress within the organization. These in turn was associated with the organizational performance in overall. The result showed that Employees in the organization usually have issues to do with financial problems. This was ascertained by the respondents noticing that in their Organizations; financial problems are due to poor remuneration at work place and poor individual financial management. The study concluded that, those farms that embraced counseling had positive effects on organizational performance. Although counseling was fairly practiced, it had a moderating effect on the relationship between overall organizational performance in the flower industry and financial stress experienced by the employees. The study recommended that; flower farms as well as other organizations should base the evaluation of their employees’ performance on their accomplishment/ achievements and identify the gaps and the reasons affecting the performance. Organizations should work hard to improve the workers financial situations through balanced payment, training and promotions for motivation of employees for financial motivation enhances employees’ moral for creativity and competition. The organizations need to maximize the use of counselling in their respective managerial systems, in order to correct the behavior of employees with low performance and make them more efficient and effective.

Key Words: Financial Stress, Organization Performance


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DOI: http://dx.doi.org/10.61426/sjbcm.v3i1.212

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