THE EFFECTS OF REWARD SYSTEMS ON EMPLOYEE SATISFACTION: A CASE STUDY OF KENYA FORESTRY RESEARCH INSTITUTE (KEFRI)
Abstract
Reward systems are categorized in various forms as pay or salary, recognition and appreciation, empowerment and autonomy, and fringe benefits. Rewards need to be competitive enough in relation to compensating workers for their labour. By integrating the theories of motivation, this study assessed the effect of reward systems on employee satisfaction at the Kenya Forestry Research Institute (KEFRI). This research was based on the assumption that application of reward systems influences the behaviour and attitude of employees at Research Institutions in general and for this case KEFRI. One of the major problems facing research institutions in Kenya is the inadequate or lack of application of the reward systems, which leads to employee dissatisfaction. Labour productivity is greatly enhanced through appropriate application of reward systems. This situation provides the basis to assess the existing reward systems employed at KEFRI as a means of improving employee satisfaction and hence labours productivity. This research was therefore undertaken with the following three objectives in mind (i) to identify the existing types of reward systems in KEFRI; (ii) to determine the effects of reward systems on employee satisfaction; and (iii) to identify the limitations of KEFRI reward systems in employee satisfaction. The study targeted a population of 554 employees drawn from three of KEFRI’s three Research Centres namely: KEFRI Headquarters, Muguga and Karura Regional Research Centres. The study sample was 111 employees across all cadres. A fully structured self-administered questionnaire and an interview guide were the standard data collection instruments for the respondents. The data was analyzed using descriptive and inferential statistics. In particular, frequencies, tabulation and chi-square were used as descriptive statistics. The study revealed that 84% of the respondents were aware of the existing types of reward systems while 16% were not aware, a factor mainly attributed to failure to read the KEFRI human resource manual, attend staff meetings and ignorance on the fact that awards seem to have improved significantly in the current year as compared with the last three years. It also revealed that through rewarding employees equitably, the organization’s performance has been enhanced and employee commitment to the organization is more assured. The study also revealed that the application of reward systems influences the level of satisfaction of employees at KEFRI.
Full Text:
PDFReferences
Alexander, H. L. (1999). Human relations in a changing world: Observations on the uses of the social sciences.
Armstrong, M. (2006). A handbook of human resource management practice. (10thed.). Kogan Page: London and Philadelphia.
Armstrong, M. (2007). A handbook of employee reward management and practice. (2nd ed.). UK: Kogan Page Publishers.
Armstrong, M. (2004). Employee reward, people and organizations. (3rd ed.). Kogan Page: London and Philadelphia.
Armstrong, M. (2008). Strategic human resource management: A guide to action. (4thed.). Kogan Page: London and Philadelphia.
Armstrong, M. (2010). A handbook of employees reward management and practice (3rd ed.). UK: Kogan Page Publishers.
Babbie, E. R. (1990). Survey research methods. (2nded.). Belmont, Carlifornia: Wadsworth Publishing Company.
Beardwell, J., & Claydon, T. (2007). Human resource management. A Contemporary Approach. (5thed.). Prentice Hall.
Bloisi, W. (2007). An introduction to human resource management. Maidenhead: MacGraw-Hill.
Bougie, R. (2009). Research methods for business. British Cataloguing Research Publication: New York.
Bourcier, C., & Palobart, Y. (1997). La reconnaissance: Un outil de motivation pour vos salariés, collection audit. Paris: Les Editions d'Organisation.
Bowen, D. E., & Lawler, E. E. (2002). The empowerment of service workers: What, why, how and when. Sloan Management Review, 33(3), 31-39.
Boyd, B. K., & Salamin, A. (2001). Strategic reward systems: A Contingency Model of Pay System Design: Strategic Management Journal, 22, (8) 777-792.
Breakwell, M. (2006). Research methods in psychology. Sage Publication Limited.
Chandran, K. (2004). Research methodology. World Scientific Ltd. London.
Conyon, M., Peck, S., & Read, L. (2001). Performance pay and corporate structure in UK firms: European Management Journal, 19 (1) 73-82.
Cooper. D. R., & Schindler, S. P. (2007). Business research methods (9thed.). New York: McGraw-Hill.
Crano, W. D. (2002). Principles and methods of social research. Lawrence Erlbaum Associates. New Jersey:
Cummings, T. G., & Worley, C. G. (2008). Organization development and change (9th ed.). Canada. Cengage Learning.
Eylon, D., & Au, K. Y. (1999). Exploring empowerment cross-cultural differences along the power distance dimension. International Journal of Intercultural Relations, 23(3), 373-385.
Eyupoglu, S. Z., & Saner, T. (2009). “Job satisfaction: Does rank make a difference?” Afri. J. Business Management. 3 (10), 609-615.
Fang-zhi, H. (2009). The Research on the Remuneration Determinants in the Primary Distribution of Enterprises-Based on the Investigation on the Situation of Income Distribution of Employees in Hunan Province: Journal on Scientific Decision Making.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2008). Business ethics: Ethical decision Making and Cases. (7th ed.).
Ghosh, B. (2005). Human resources development and management, (5th ed.). Vikas Publishing House PVT Ltd, New Delhi.
Gravetter, J. F., & Forzano, B. L. (2009). Research Methods for the behavioural science (3rded.). New York: Wadsworth Cengage Learning.
Government of the Republic of Kenya, (2007). Kenya Vision 2030 – A globally competitive and prosperous Kenya. Ministry of Planning and National Development and the National Economic and Social Council, Office of the President.
Harper, S., Laws, S., & Marcus, R. (2003). Research methodology: a step by step guide for beginners (2nded.). London: Sage publication.
Herbert, G., H., & Timothy A., J. (2009). Staffing organizations (6th ed.). McGraw-Hill/ Irwin Publishers.
Huck, S. W., (2009). Reading statistics and research. (5th ed.). Pearson International.
Kandula, S. R. (2006). Human resource management & organizational development: practitioners readings (1st ed.). Punjagutta, India: The ICFAI University Press.
KEFRI (2011). Kenya Forestry Research Institute, Unpublished Report on Employee Satisfaction.
KEFRI (2009). Kenya Forestry Research Institute, Strategic Plan 2008 – 2012.
Kerlinger, F. N. (2005). Foundations of behavioral research. Harcourt College publishers. California: USA.
Kerr, S. (2008). Reward systems: Does yours Measure Up? HBS Press Book. England.
Kirimi, B. A. & Minja, D., (2011). Transformational corporate leadership. Published by: Integrity Publishers Inc.
Kombo, D. K. & Tromp, D. L. (2006). Research methodology. (2nd ed.). Wiley Eastern Ltd. New Delhi.
Krishnaswamy, H. (2009). “Reward and Employee Behaviour”, Motivation and Leadership at Work. (6th ed.). The McGraw-Hill Companies, Inc., USA.
Lewin, C. (2005). Research methods in social sciences. Sage Publications: London: London.
Locke, E. A. (1997), "The motivation to work: what we know", in Maehr, M. L., Pintrich, P.R. (Eds), Advances in Motivation and Achievement, JAI Press Inc., Greenwich, CT, pp.375-412.
Luck, M. & Pocock, R. (2000). Social research in health and social care. British Library. New York.
Luthans, F. (2008). Organizational behavior (11th ed.). New York. McGraw-Hill.
Mathis, R. L., & Jackson, J. H. (2004). Human resource management: international Student Edition. (10thed.). Thomson Learning. Singapore.
Meusburger, P. (2009). "Milieus of creativity: The role of places, Environments and spatial contexts". In Meusburger, P., Funke, J. and Wunder, E. Milieus of creativity: an interdisciplinary approach to spatiality of creativity. Springer.
Mondy, R. W., (2008). Human resource management (10thed.). Upper Saddle River New Jersey. Pearson Education.
Moorhead, G. & Griffin, R. W. (2010). Organizational behaviour managing people and organizations.(9th Ed.)South-Western, Cengage Learning.
Mugenda, O. M., & Mugenda, A. G. (1999). Research methods: Quantitative and qualitative approaches. Nairobi. Kenya: Acts Press.
Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative and qualitative approaches. Acts Press. Nairobi. Kenya.
Murtis, M. A. (2007). Reward Management: A handbook of remuneration strategy and practice. London: Kogan Page Limited.
Nachmias, C. F., & Nachmias, D. (1992). Research methods in the social sciences. (4thed.). New York: St. Martin's.
Noe, R. A., Hollenbeck J. R., Gerhart B., & Wright P. M. (2009). Fundamentals of human resource management. Published by McGraw-Hill/Irin, 122 Avenue of the Americans, New York.
Orodho, L. & Reuben M.(2002). Research methodology, A step by step guide for beginners (2nd ed.). Sage publication. London.
Oshagbemi, T. (2003).“Personal correlates of job satisfaction: empirical evidence from UK universities”, International Journal of Social Economics, 12 (3), 17 – 19.
Osoro, R. B. (2010). Employees’ perceptions on psychological contract violation following implementation of performance contract at the Kenya Forestry Research Institute. Published MBA Thesis, University of Nairobi.
Patton, M. Q. (2002). Qualitative research and evaluation methods. Sage Publications. California. London.
Pearce II, J. A. & Robinson, Jr. R. B. (2009). Strategic management. Strategy Formulation, Implementation and Control. (11thed.). Chicago, IL: R. D. Irwin, Inc.,
Porter, L. W., Bigley, G. A. & Steers, R. M. (2003). Motivation and work behaviour. (7th ed.).
Price, A. (2007). Human resource management in a business context.(3rd ed.). UK: Thompson Learning.
Robert, C., Probst, T. M., Martocchio, J. J., Drasgow, F., & Lawler, J. J. (2000). Empowerment and continuous improvement in the United States, Mexico, Poland and India: Predicting fit on the basis of the dimensions of power distance and individualism. Journal of applied psychology, 85(5), 643-658.
Rusell, B. (2000). Social research methods: Qualitative and quantitative approach. (2nded.). Belmont, California: Wadsworth Publishing Company.
Singh, J. (2003). Boundary role ambiguity: facets, determinants, and impacts. Journal of management, 57 (2), 11-31.
Srivastava, U. K. et al. (2008). Quantitative techniques for managerial decisions, New Age International (P) Ltd.
Torrington, D., Hall, L.,& Taylor, S. (2008). Human resource management (7thed.). Prentice Hall.
Trochim, W. K. (2006). Research methods knowledge base Web Centre for Social Research Centre. Retrieved on October 1st 2011, from http://www.socialresearch methods.net/kb/sampprob.php.
Tuzovic, S., & Bruhn, M. (2005). Integrating customer orientation, employee compensation and performance management: a conceptual framework: International Journal of Business Performance Management.
White, T. (2000). Research Methods. Censgage Learning. Belmonth Company. USA.
Xyrichis A., & Ream E. (2008). Teamwork: A concept analysis. Journal of Advanced Nursing, 6 (2), 232-241.
DOI: http://dx.doi.org/10.61426/sjbcm.v3i3.304
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.