EFFECT OF REWARD MANAGEMENT STRATEGIES ON ORGANIZATIONAL PERFORMANCE OF TERTIARY INSTITUTIONS IN KENYA:

CASE OF SELECTED COLLEGES IN NAIROBI COUNTY

Susan Njuguna

Masters Student: Jomo Kenyatta University of Agriculture and Technology.

&

Dr. Kennedy Ogollah

Lecturer: Jomo Kenyatta University of Agriculture and Technology

CITATION: Njuguna, S. & Ogollah, K. (2016) Effect of reward management strategies on organizational performance of tertiary institutions in Kenya: case of selected colleges in Nairobi County. International Journal of Strategic Management. Vol. 5 (9) pp 54 - 72

ABSTRACT

The main objective this study was to determine the effects of reward management strategies on organizational performance of tertiary training institutions in Nairobi County. The study was guided by four specific objectives: to determine the effect of employees’ remuneration on organizational performance in Tertiary Training institutions in Nairobi County, Kenya, to examine the effect of employees’ performance recognition on organizational performance in Tertiary Training institutions in Nairobi County, Kenya to examine the effect of training and development of the employees on organizational performance in Tertiary Training institutions in Nairobi County, Kenya, to establish the effect of employee work life balance on organizational performance in Tertiary Training institutions in Nairobi County, Kenya. The study reviewed several theories of reward management as possible avenues towards a framework of understanding what reward strategies drive employees to organizational performance. It also conducted an empirical literature review in order to establish a link with similar past studies. A stratified random sampling technique was used to select a sample of 96 respondents from a target population of 238 institutions. The study adopted a descriptive research design. Structured questionnaires were used to collect primary data. Data analysis was carried out using both qualitative and quantitative techniques with the aid of SPSS while the main method of data presentation was frequency distribution and pie charts. The study found a significant relationship between the reward management strategies and organizational performance. The study concluded that better remuneration, performance recognition, training and development and work life balance are reward management strategies that have an influence on organizations performance. The study recommends that tertiary training institutions should: develop and maintain a training policy strategies for employees; establish a criterion for recognizing employee performance to ensure the whole process of reward management strategy is deemed fair employees; design an attractive remunerations scheme that will also enhance retention, creating awareness of the new reward management strategy of work life balance through seminars and short course for all employees; finally, the research study recommends a similar research study on the negative effects of reward management strategies to avoid a situation where they can backfire and bring exactly the opposite of the desired behavior.

Keywords: Reward management strategies, Organizational performance, Tertiary institutions

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