International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (214-218), Month: October 2019 - March 2020, Available at: www.researchpublish.com
INFLUENCE OF NON-FINANCIAL REWARDS ON EMPLOYEE PERFORMANCE IN THE STATE CORPORATIONS IN KENYA 1
Regina Wairimu Kamwenji, 2Dr. Patrick Karanja Ngugi, PhD, 3 Dr. Mary Kamaara, PhD 1, 2, 3
College of Human Resource Development
Jomo Kenyatta University of Agriculture and Technology P.O BOX 62000-00200 Nairobi, Kenya
Abstract: Kenya aspires to attain sustained and high growth in economy in line with employment by the government, creating wealth and reducing poverty to conform to 2030 vision. To achieve this, the public sector which is the biggest employer must monitor the performance of its employees. The main objective of the study was to establish the influence of financial rewards on Employee Performance in the State Corporations in Kenya. The study was guided by three theories which include; Abraham Maslow’s, Hertzberg’s, Vrooms’ expectancy, scientific management, Adams Equity Reinforcement and goal setting theories. The study used descriptive and explanatory research designs and targeted 6 respondents from the 107 sampled state corporations totaling to 642. The study undertook a pilot study to pretest and validates the questionnaire. The probability and non-probability sampling was adopted and the study used stratified sampling and purposive sampling. The findings showed that nonfinancial rewards are a strong predictor of employee performance. The study recommends that state corporations in Kenya needs to establish a reward management policy/system and involve employees in determining acceptable and affordable non-financial rewards based on achievement of performance targets and the organization’s ability to pay or provide for these rewards. Keywords: Reward Management Practices, Non-Financial Rewards, Employee Performance, State Corporations.
1. INTRODUCTION This study sought to ascertain the influence of non-financial rewards on employee performance in the State Corporations in Kenya. Reward management practices are essential for achieving overall organizational performance. Notably, the realized good performance should further correlate with rewards since the exceptional employees expect the top management to recognize their efforts. As Davila, Epstein and Manzoni (2014) note, developing and implementing reward and recognition practices is imperative to boost morale, create goodwill between employees, and encourage the non-performers to improve. Hence, effective reward management practices should be aligned with the strategy of an organization to attract, motivate employees’ performance, and retain staff with the skills, knowledge and abilities needed to achieve the strategic objectives of the firm. Barney and Hesterly (2012) indicated that firms that utilize capabilities and resources to seize business opportunities and neutralize threats are likely to realize an increase in their net revenue or a decrease in their net costs or both or vice versa. On this note, threat neutralization, personnel motivation, and opportunity exploitation are realized through employing diverse incentive-based approaches that include non-financial rewards.
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