Reward Management Strategies and Performance of Employees in the Health Sector in Kirinyaga County, Kenya
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Date
2022
Authors
Ndung’u, Margaret Wairimu
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Abstract
The impact of the devolution of the health system in Kenya has posed various challenges in the counties. This is due to the different management of the human resources in the county hospitals. There are constant strikes almost every year in Kirinyaga County caused by health workers complaining about the working environment, salaries plus other benefits. The Health worker performance has been compromised as result leading to poor quality services, absenteeism and even increased death of patients admitted in the public hospitals in Kirinyaga County. The general objective of this study was to establish the influence of reward management practices on the performance of the health sector employees in Kirinyaga County, Kenya. The specific objectives were to determine the effect of direct financial compensation, indirect financial compensation, incentive plans on employee recognition and assistance programs on Kiriyaga health sector employee performance. The study was guided by Expectancy Theory, Equity Theory, Maslow Hierarchy Theory, Hertzberg Theory and Efficiency Wage Theory. A descriptive research design was used. The study target population consisted of six (6) hospitals in Kirinyanga County which will consist of Kerugonya County Referral Hospital, Kagio Hospital, Kerugoya District Hospital, Kianyaga Sub-County Hospital, Kimbimbi Sub-County Hospital and Kerugoya Medical Centre (Main Hospital). The unit of observation consisted of 737 employees working in the six targeted public hospitals. A stratified and simple random sampling was used. A sample size of 259 employees was used. A pilot study was carried out in Kagio hospital where 26 health staff participated. The data collection method was a semi-structured questionnaire. The data analysis was done through descriptive and inferential analysis. Data were presented in Tables and Figures. The result indicated that the employee's salaries did not match their inputs, the salary was moderately sufficient to cater for their upkeep, travel allowance and house allowance were insufficient and the bonuses paid were insufficient to the employees. The results indicated that life insurance cover, health insurance coverage, and education benefits were insufficient. There was moderate benefit from annual performance-based pay and moderate individual benefits received based on the work performed. The study results indicated that the nurses fairly receive a certificate of appreciation which motivated employees to work hard. The employees appreciate the job titles which come with responsibility. The respondents pointed out that they moderately normally receive free sponsored trips and vacations from their employers. The study concluded that direct financial compensation has a positive significant effect on employee performance the study concluded that indirect financial compensation has a positive significant effect on employee performance. The study concluded that incentive plans have a positive significant effect on employee performance. The study concluded that employee recognition has no significant effect on employee performance. The organization should develop an appropriate financial compensation policy, including direct and indirect financial compensation, based on the findings of this study to increase employee work satisfaction. Accordingly, the human resources manager should put procedures in place to make sure that the company has a good wage structure and job evaluation system because this would encourage people to work hard. The study recommended that the civil service commission should employ qualified human resource personnel that will oversee the affairs of employee compensation as this will remove the bottleneck surrounding the non-implementation of employee compensation.
Description
A Research Project Submitted to the School of Business in Partial Fulfillment for the Requirements of the Award of the Degree in Master of Business Administration (Human Resource Management Option) of Kenyatta University, November, 2022
Keywords
Reward Management Strategies, Management Strategies, Management, Performance, Employees, Health Sector, Kirinyaga County, Kenya