COMPENSATION PRACTICES AND EMPLOYEE PERFORMANCE IN BISCUIT MANUFACTURING COMPANIES IN NAIROBI CITY COUNTY, KENYA
Abstract
The general objective of this study was to establish the effect of compensation practices and employee performance in the biscuit manufacturing companies within Nairobi city-county, Kenya. Specifically, the study determined the effect of basic pay on employee performance in the biscuit manufacturing companies in Nairobi city-county, the effect of employee benefits on employee performance in the biscuit manufacturing companies in Nairobi city-county, examined the effect of skill development on employee performance in the biscuit manufacturing companies in Nairobi city County, established the effect of work-life balance on employee performance in the biscuit manufacturing companies in Nairobi city-county , the moderating effect of organizational culture on the relationship between total compensation practices and employee performance in the biscuit manufacturing companies in Nairobi city-county, Kenya. The descriptive research design was used. The stratified random technique was used to select a sample size of 320 respondents from the target population of the total population of 1,600 employees within the Biscuit manufacturing companies in Nairobi City County. Primary data was collected using semi-structured questionnaires. Content, construct and criterion validity was ensured while reliability of data collection instruments was tested using cronbach’s alpha value. Inferential statistics using a multiple regression model was used to analyse the relationship between compensation practices and employee performance. Statistical Package for Social Sciences (SPSS) computer package for windows version 21.0 was used to aid in the analysis. To avoid bias in data, multiple regression of variables was done. Results were presented using tables. The findings indicated that there was a significant positive relationship between compensation practices and employee performance in the biscuit manufacturing companies in Nairobi County, Kenya with skill development being most significant and basic pay least significant. From the findings, the study concluded that compensation practices having significant effect on employee performance need to be taken seriously, biscuit manufacturing companies need to improve on some practices like basic pay and commutate their policies well. The study recommended a salary survey for biscuit manufacturing companies in Nairobi County and consideration of other practices with more impact like competency based pay.
Key Words: Compensation, Basic Pay, Benefits, Skill Development, Work-Life Balance, Organizational Culture
CITATION: Nzyoka, C. M., Muli, J., & Obere, E. (2019). Compensation practices and employee performance in biscuit manufacturing companies in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 1215– 1236
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1456
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