REWARD STRATEGIES, ORGANIZATIONAL CULTURE AND EMPLOYEE PERFORMANCE IN FAITH BASED FACILITIES IN KAKAMEGA COUNTY, KENYA

Abstract

Reward system which consists of financial and non-financial rewards is very essential to organizations in managing employee loyalty and performance. Faith Based Facilities (FBFs) face significant challenges like human resource retention, inadequate financing, poor regulation of activities, inadequate human resource policies, job security and lack of career development opportunities that affect their overall performance and sustainability. The main purpose of this study was to examine the effect of reward strategies and organizational culture on employee performance in Faith-Based Facilities in Kakamega County, Kenya. The study determined the effect of recognition, job security and promotion on employee performance. It also established the moderating role of organizational culture on the relationship between reward strategies and employee performance in FBFs in Kakamega County. The study was guided by theories of Expectancy, Equity and Reinforcement with relevant theoretical and empirical literature reviewed. The target population consisted of 685 employees in 27 FBFs in Kakamega County with individual employees being the unit of analysis. An explanatory study design was adopted. Stratified random sampling technique was used to select a sample of 246 employees. A self-administered questionnaire piloted at Maseno Mission Hospital in Vihiga County was used for data collection. Content and construct validity of the questionnaire was ensured through expert review while the reliability test yielded Cronbach’s Alpha coefficients between 0.783 and 0.916. Data analysis was done using SPSS software version 24 to generate descriptive and inferential statistics. Pearson product moment correlation findings revealed positive correlations between the variables: organizational culture (r = .544), job security (r = .506), recognition (r = .390) and promotion (r = .324). Linear regression findings showed all variables had significant positive effect on employee performance: job security (R2=.256, B=.290); recognition (R2=.152, B=.265) and promotion (R2=.105, B=.211). Organizational culture also had significant moderating effect (R2=.267). The coefficients from the moderated regression model revealed significant influence by the interaction terms on reward strategies: job security (B=.067, p=.000), recognition (B=.035, p=.010) and promotion (B= -.038, p=.019). The study concludes that job security had the greatest effect on employee performance followed by recognition and promotion. Organizational culture also had significant moderating effect. The study recommends that FBFs in Kakamega County should strengthen formal recognition practices, adhere to the structural elements of job security, rigorously comply with promotion practices / policy and continuously promote organizational culture of employee involvement, communication, inclusivity and representation for optimal employee performance. The study confirms that recognition, job security, promotion and organizational culture are critical determinants of employee performance in FBFs. The results can be useful to Human Resource Officers in FBFs in formulation of strategic reward policies for optimization of employee performance. A longitudinal study to explore how changes in reward strategies and organizational culture over time in FBFs could influence employee performance is suggested.