Internal Environment and Organization Performance of Chemelil Sugar Company in Kisumu County, Kenya
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Date
2022
Authors
Cheruiyot, Daniel Rono
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Some of the sugar-milling factories in Kenya are state-owned companies carrying out operations in production and sale of milled sugar and other sugar related by-products in a liberalized environment. Chemelil Sugar Company’s performance has been characterized by problems of profit, output, employee effectiveness, sales volume and market share. The general objective of the study was to establish the effect of internal environment on Organization Performance of Chemelil Sugar Company in Kisumu County, Kenya. Study focused on the following specific objectives; to establish the effect of financial utilization, factory capacity utilization, human resource motivation and promotion mix on Organization performance. The study was based on Agency theory, Modern Business theory, Herzberg’s motivation theory and Behavioral Decision theory. The study used descriptive research design and a target population comprising Company’s Heads of Departments, Heads of Sections and Officers. Stratified random sampling technique was used. After official consent was granted by factory management, 50 questionnaires were administered to respondents and only 42 were filled in. Validity of research instrument was determined by the Supervisor to ensure that there was no systematic error. Computation of co-efficient of reliability was done using Cronbach’s Alpha method with the aid of statistical package for social sciences. The value obtained was 0.7 hence data collection instrument was reliable. Data was analyzed utilizing descriptive statistics- especially the mean and standard deviation and inferential statistics. The presentation of analyzed data was done using tables. The findings showed that financial utilization, factory capacity utilization, human resource motivation and product promotion mix had significant effect on organization performance. In conclusion, there was significant effect of internal environment on organization performance and therefore important to take into consideration internal environment. Recommendations were made for policy and practice through rationalizing financial utilization to ensure regular supply of raw materials to maximize factory milling capacity. Human resource motivation was to be enhanced to sustain effective employee performance, increase promotion mix activities to increase sales volume and for further research on the role of agricultural department on supply of raw materials for regular milling capacity. A case study can be carried out on financial costing on profitability of the organization and a research on effect of operational employee motivation on efficiency. Action research is recommended on effect of advertising on market share. The study is significant to policy makers, technical decisions by sugar companies and fulfilling the farmers’ and suppliers’ needs by through payment in time, compensating and providing favorable working environment to employees. Findings are useful in regard to satisfaction of customers and fulfilling Government expectations of self-sufficiency in sugar production, employment creation and revenue generation.
Description
A Research Project Submitted to the School Of Business in Partial Fulfilment of the Requirements for the Degree of Masters of Business Administration (Strategic Management Option) of Kenyatta University June 2022
Keywords
Sugar Company, Organization Performance, Internal Environment, Chemelil Sugar Company