INFLUENCE OF INTRINSIC REWARDS ON EMPLOYEE PERFORMANCE IN SUGAR COMPANIES IN WESTERN KENYA
Abstract
Intrinsic motivation occurs when people engage in an activity such as a hobby
without external incentives. Social and educational psychologists have studied this
form of motivation since the early 1970’s. Research has found that it is usually
associated with high achievement and enjoyment by employees. Research has
shown that increased workforce motivation contributes to increased productivity and
innovation, creative problem solving, reduced turnover and decreased absenteeism.
However, these past researches have never touched on how quality of work,
punctuality and commitment influence employee performance. This research
therefore seeks to fill this gap. The objectives of the study were to determine the
influence of intrinsic rewards on employee performance, to assess the influence of
organizational factors on the relationship between intrinsic rewards and employee
performance, to determine the influence of organizational factors on employee
performance. It was hypothesized that, intrinsic rewards have no statistical
significant influence on employee performance, organizational factors have no
statistical significant influence on the relationship between intrinsic rewards and
employee performance and organizational factors have no statistical significant
influence on employee performance. The study was conducted in four sugar
companies in the western Kenya. Employees at all levels of management were
sampled. The research adopted the descriptive survey research design. The target
population was 2000 employees of Mumias sugar company, Nzoia Sugar Company,
West Kenya Sugar Company and Butali Sugar Company. Systematic random
sampling was used to get the sample size of 200 employees. Data was collected
using questionnaires, for primary data. Pretesting of the instruments was conducted
to 15 employees of Chemilil Sugar Company. Reliability of data was measured
using cronbach’s alpha coefficient. Data was analyzed using descriptive and
inferential statistics, using SPSS (version 20.0).Results indicated that, there existed a
positive influence between intrinsic rewards and employee performance,
organizational factors positively moderated the relationship between intrinsic
rewards and employee performance and lastly, organizational factors had a
statistically significant positive influence on employee performance. This study
contributed to the advancement of academic knowledge on the utilization of proper
rewarding strategies in enhancing employee performance in sugar companies. The
study will provide empirical evidence on the moderating effects of organization
training and development and working experience on the relationship between
intrinsic rewards and employee performance in sugar companies. It was
recommended that rewards should be given in public so as this will encourage hard
work among employees and enhance equity. Supervisors in sugar manufacturing
firms should closely monitor employees after training to make sure that they are
implementing what they learnt. Deliberate action should be taken by sugar
manufacturing companies to develop strong organizational cultures geared towards
employee performance.