THE EFFFECTS OF EMPLOYEE MOTIVATION ON ORGANIZATION

PERFORMANCE; A CASE STUDY OF UNGA LIMITED ELDORET

IRUNGU PETER MAINA

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE BACHELOR’S DEGREE OF SCIENCE
IN HUMAN RESOURCE MANAGEMENT SCHOOL OF BUSINESS AND
ECONOMICS AT MOI UNIVERSITY

APRIL, 2022
 DECLARATION

This project is my original work and has not been submitted for a degree or any other award to

any university or other institution of learning.

Signature: Date:

PETER MAINA
HRM/15/19

This research project has been submitted with my approval as the university supervisor.

Signature: Date:
MADAM LYDIA MAKET
LECTURER
SCHOOL OF BUSINESS AND ECONOMICS
MOI UNIVERSITY

ii
 ACKNOWLEDGEMENT

I want to extend my deepest gratitude to everyone who helped make this research a success.

Despite the fact that I initiated this study endeavor, several individuals contributed significantly

to its progress. I want to convey my heartfelt appreciation to Madam Maket, my supervisor, for

his unflinching support and wisdom during this whole endeavor. Without his aid, it would have

been almost impossible to accomplish achievement up to this time.

Finally, I am grateful to my family, especially my parents, for their moral support through times

of struggle. Without their aid, it would have been impossible to reach this level of performance.

iii
 ABSTRACT

Employee motivation is one of the trending and most important aspects of the human resource in
every department. This is because human resource is one of the factors of production and should
well be taken care of as it influences its output hence the performance of the organization. The
study was guided by the following objectives: to determine the effects of salaries and wages on
organizational performance, to find out the effects of promotion on organizational performance, to
find out the effects of recognition on organizational performance and to determine the effects of
fringe benefits on organizational performance. The study was guided by the equity theory and
expectancy reinforcement theory. The study adopted descriptive survey research design. The study
target population was 315 employees from which stratified random sampling were adopted to get
the sample population of 80 employees. The study findings were presented in graphs, pie charts and
tables. The study made the following conclusions, the salaries were not satisfactory in relation to
what they did, they did not earn the same as other people in similar jobs, the salaries increases were
not decided in a fair manner, the salaries increase would inspire them to perform better. Everyone in
the organization had an equal chance to be promoted, whenever the employees were promoted the
organization performance increased, the criterion for promotion was not clear and that the
performance of the employees had improved since the last promotion. The employees’ were praised
regularly for the work they did which motivated them to perform better, the received constructive
criticism about the work which encouraged them to improve on the quality of their output, they are
told when making progresses which motivated them to increase their efforts and that they improved
on the performance since the last recognition. They had a satisfactory medical scheme, they
encountered challenges when processing their leave, they did not receive their bonuses whenever
they met their targets and when the company met its target and they were not satisfied with the
basis used by the company in administering bonuses to their various job groups. The study
recommends the following; the employees should be made satisfactory to each employee according
to the work they do. The salary increment in the organization should be decided in a fair manner.
The promotion should not be entirely on the performance but the management should also consider
other key factors like the education qualifications, skills, and leadership among others. The criterion
used in promotion should be made clear to all employees. The management of the company should
make sure that the employees are not having challenges when processing their leaves. The
management should also make sure they give bonuses to the employees whenever they meet their
targets and when the company meets its target to motivate the employees. The management should
encourage the supervisors and the departmental heads to give constructive criticisms to the juniors
as it motivated them to improve on the quality of their output.

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 TABLE OF CONTENT

DECLARATION.............................................................................................................................ii
ACKNOWLEDGEMENT..............................................................................................................iii
TABLE OF CONTENT...................................................................................................................v
LIST OF FIGURES......................................................................................................................viii
LIST OF TABLES.......................................................................................................................viii
CHAPTER ONE: INTRODUCTION..........................................................................................1
1.0 Overview of the Chapter............................................................................................................1
1.1 Background of the Study...........................................................................................................1
1.2 Statement of the Problem...........................................................................................................5
1.3 Objectives of the Study..............................................................................................................6
1.3.1 General Objective...................................................................................................................6
1.3.2 Specific Objectives.................................................................................................................6
1.5 Significance of the Study...........................................................................................................7
1.6 Scope of the Study.....................................................................................................................8
CHAPTER TWO...........................................................................................................................8
LITERATURE REVIEW................................................................................................................8
2.1 Introduction................................................................................................................................8
2.2 Theoretical Framework..............................................................................................................9
2.2.1 Equity Theory.........................................................................................................................9
2.2.2 Expectancy Reinforcement Theory......................................................................................11
2.3 Empirical Review....................................................................................................................12
2.3.1 Salaries and Wages and Organization Performance.............................................................12
2.3.2 Promotion and Organizational Performance........................................................................14
2.3.3 Recognition and Organizational Performance......................................................................16
2.2.3 Fringe Benefits and Employee performance........................................................................18
2.4 Organizational Performance....................................................................................................21
2.5 Research Gaps.........................................................................................................................21

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CHAPTER THREE.....................................................................................................................24
RESEARCH METHODOLOGY..................................................................................................24
3.0: Overview of the Chapter.........................................................................................................24
3.1: Research Design.....................................................................................................................24
3.2: Target Population....................................................................................................................24
3.3: Sample Population..................................................................................................................25
3.4: Research Instruments..............................................................................................................26
3.6: Piloting of Research Instruments............................................................................................26
3.6.1: Validity.................................................................................................................................26
3.6.2: Reliability............................................................................................................................27
3.7: Data Analysis and Presentation..............................................................................................27
3.8: Limitations of the Study.........................................................................................................28
3.9 Ethical Considerations.............................................................................................................28
CHAPTER FOUR.......................................................................................................................30
RESEARCH FINDINGS AND DISCUSSION.............................................................................30
4.1 Introduction..............................................................................................................................30
4.1.1The response rate...................................................................................................................30
4.2Personal information of the respondents..................................................................................30
4.2.2 Age of the Respondent..........................................................................................................31
4.2.3 Workplace experience..........................................................................................................32
4.2.4 The Level of Education........................................................................................................33
4.2.5 Management Level...............................................................................................................34
4.3 Compensation and reward system...........................................................................................35
4.3.1 Salaries and Wages...............................................................................................................35
4.3.2 Promotion.............................................................................................................................36
4.3.2 Recognition...........................................................................................................................38
4.3.4 Fringe Benefits......................................................................................................................40
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
.......................................................................................................................................................43
5.1 Introduction.........................................................................................................................43
5.2 Summary of Findings..............................................................................................................43

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5.2.1 Salaries and Wages and Employee Performance..................................................................43
5.2.2 Promotion and Employees’ Performance.............................................................................43
5.2.3 Recognition and Employees’ Performance..........................................................................43
5.2.4 Fringe Benefits and Employees’ Performance.....................................................................43
5.3 Conclusion...............................................................................................................................44
5.4 Recommendations....................................................................................................................44
5.5 Suggestions for Further Research............................................................................................45
REFERENCES..............................................................................................................................46

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LIST OF FIGURES
Figure 2.1 Conceptual Framework
Figure 4.1 Response rate
Figure 4.2 Gender of the Respondent
Figure 4.3 The age of the respondent
Figure 4.4 the workplace experience
Figure 4.5 the level of education
Figure 4.6 Management Level

LIST OF TABLES

Table 3.1 Targeted and Sample population

Table 4.4 Fringe Benefits and Organizational Performance
Table 4.2 Promotion and Organization performance
Table 4.1 Salaries and wages and employee performance

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 CHAPTER ONE: INTRODUCTION
1.0 Overview of the Chapter
This section entails background information from previous researches done that are relevant to

the effects of Employee Motivation on Organizational Performance in Unga Limited Compay in

Kenya. It also entails the statement of the problem, research objectives, and research hypothesis,

Scope of the study and the significance of study.

1.1 Background of the Study

Human capital effectiveness impacts an organization's performance in several ways. The

importance of human resource management has increased as a result. Human resource

management is responsible for maintaining personal connections and monitoring staff health in

order to increase production and efficiency (Appleby, 2014). Motivated employees are thought

to be more productive. Individual motivation is the process through which individuals choose

between various actions to achieve their goals (Cole, 2012). It is the guiding principle and

driving force that pushes people along a given route to achieve a goal or desire. Motivation is a

psychology term that refers to the internal forces that drive a person to perform in a particular

way or not. A motivation is a personal experience. Motivation is a dynamic and continuous

process since it works with humans who are continually changing and adjusting. Due to their

ever-changing nature, people must be motivated to work.

Pnar Gungor defines motivation as "a person's ability to affect conduct" (2011). Motivation is

the driving factor behind achieving certain objectives. Work motivation is a collection of active

components that arise both inside and outside an individual's self and shape work-related

behavior's form, direction, intensity, and length (Pinder, 1998). However, if the right incentive

isn't provided, it's possible that the goal won't be met. When an employee's employment

contributes to the achievement of the organization's goals, incentive is allowed (Berman et. al,

2010). Immersing people in their jobs and helping them perform better may boost employee

1
satisfaction. As a result, workers become more creative, which improves the company overall

(Kamery, 2004; Ekerman, 2016). Internal elements like goals, aspirations, and needs influence

how the body reacts to events.

The importance of employee motivation in today's global culture cannot be overstated. Since

1919, the ILO has fought for worker motivation, particularly in developing countries. The

organization's prologue acknowledges that unjust labor conditions exist, as does the privatization

of enormous populations and the incapacity of any government to embrace equitable working

standards. That is why this organization tries to improve and control working conditions and

employee motivation (ILO, 2008).

Management expects higher levels of performance and efficiency than in decades past.

Corporations work hard to enhance their performance to stay ahead of the competition

(Sakovska, 2012). In today's turbulent business environment, having a high-performing team is

crucial to growth and survival (Pratheepkanth, 2011). They are considered to be able to help

their businesses improve their overall performance by raising their productivity (Khan, Farooq

and Ullah, 2010). This shows that highly motivated, happy employees constitute a strong team

capable of attaining long-term organizational success. Motivated employees want to stay with a

company and contribute to its stability and success.

While most firms recognize the need to improve employee performance, many are still seeking

methods to encourage their employees. But many companies get a competitive advantage by

adopting effective incentive systems that increase overall company performance (Sakovska,

2012). Most company owners are aware that they can do more to keep their employees engaged

and competitive (Pratheepkanth, 2011). According to Pnar Gungor (2011), top managers must

commit substantial time and attention to inspire workers to reach their best. Managers must

2
inspire individuals to offer their utmost as part of a valued resource that is presently unavailable

inside the business (Sakovska, 2012). Employee motivation is a company's most powerful

weapon in obtaining and sustaining competitive advantages.

Using competitive incentive systems to attract, retain, and motivate valuable employees is a vital

approach for increasing organizational performance, according to Pitts (2005). Employees would

adjust their behavior by working harder or prioritizing their actions if they believed their efforts

would be rewarded (Pratheepkanth, 2011). As a consequence, incentives are a great way to

recognize and reward high-performing personnel (Sakovska, 2012). Employee motivation will

improve over time if the award is linked to the organization's aims and objectives. As a result,

productivity and motivation will rise. It will also benefit employers and workers (Torrington,

Hall, Taylor & Atkinson, 2009).

The potential of financial reward motivates people to work well. Employees get remuneration

from their employers; yet, many companies provides incentive packages in which wages and

salaries are a small component (Sakovska, 2012). These packages often include bonuses,

pensions, health insurance, assigned cars, advantageous loans, subsidized meals, profit sharing,

stock options, and other perks (Pitts, 2005). Several aspects must be addressed before deciding

on the best remuneration scheme to increase employee engagement and performance.

Identifying the company's objectives is the first step for managers (Pratheepkanth, 2011).

Lessening long-term wage and salary costs, attracting and keeping consumers, and retaining

employees of high quality, expertise, and qualifications (Khan, Farooq and Ullah, 2010).

Organizational change management includes motivating employees to improve their

performance, focusing their energy and enthusiasm, supporting specific employee behaviors,

3
and enabling and facilitating organizational change (Torrington et. al., 2009).

1.2 Statement of the Problem

Despite the fact that many companies have accepted the reason for hiring specialists and

experienced people to work in their businesses, employee performance in Kenya continues to be

poor. As a consequence, some individuals wonder whether high performance is tied to an

organization's employees' level of knowledge and expertise.

The method through which management motivates workers to create a high-performance culture

is crucial to the success of performance management. Individuals and teams that are motivated

take responsibility for the continuous improvement of business processes out of an inner drive

and understanding that they have a need for performance and are driven to do so, rather than out

of coercion or force. In this respect, the relevance of employee motivation in the overall

productivity of the company is emphasized, and it is a key issue to consider. It's critical to

understand how employee motivation works since it provides as a framework under which the

internal employees' disposition in the workplace is given meaning. When performance

discussions are not accompanied by motivating aspects, they become worthless. When an

employee works in such an environment, he or she does not feel compelled to put out any effort

or gain any insight into his or her job. It is not because of "their" performance that employees are

able to achieve any level of success in terms of performance, but rather because of the managers'

"mandated preferences."

Many studies on the influence of motivation on organizational performance have been

conducted, and some of these studies are presented below. According to Pratheepkanth (2011),

top performers in Sri Lanka's Jaffna District processing companies were driven by non-financial

oriented incentives rather than monetary incentives. Furthermore, according to Mwanje (2010)'s

4
 study of employee motivation in Ugandan manufacturing firms, promotion was a crucial

component of job performance. Employee motivation was also significant in enhancing overall

employee performance, according to the study. On the other hand, a research conducted by

Khan, Farooq, and Ullah (2010) among Pakistani manufacturing factory employees found that

salary had a significant influence on the firm's performance. The pay and incentive system was

discovered to have an impact on the company's performance. Ochieng (2003) observed that both

intrinsic and extrinsic reward schemes had an equal impact on the performance and motivation of

secondary teachers in the Migori district in another study done in Kenya. The study's findings

showed a variety of conclusions concerning the value of a reward system in employee motivation

and organizational performance, as well as the efficacy of various incentive schemes.

Furthermore, they paid little attention to the Unga Limited Company, which is the focus of this

inquiry.

1.3 Objectives of the Study

1.3.1 General Objective
The general objective was to determine the effects of employee motivation on the organizational

performance of the Unga Limited Company.

1.3.2 Specific Objectives

i. To determine the effects of salaries and wages on the organizational performance of the Unga

Limited Company.

ii. To find out the effects of promotion on the organizational performance in Unga Limited

Company.

iii. To assess the effects of recognition on the organizational performance in Unga Limited

Company.

5
iv. To find out the effects of fringe benefits on the organizational performance in the Unga

Limited Company.

1.4 Research Hypotheses

i. There is no significant relationship between salaries and wages and organizational

performance of the Unga Limited Company.

ii. There is no significant relationship between promotion and organizational performance of

the Unga Limited Company.

iii. There is no significant relationship between recognition and organizational performance

of the Unga Limited Company.

iv. There is no significant relationship between fringe benefits and organizational

performance of the Unga Limited Company.

1.5 Significance of the Study

The study is regarded beneficial in Unga Limited Company policies because it will result in the

establishment of a body of information addressing the impact of employee motivation on

organizational performance. Policymakers will be better positioned to execute successful

employee motivation modification activities that will improve organizational performance using

this corpus of data. The findings of this research will be useful to both the private and public

sectors in Kenya, as they will shed light on how employee motivation is handled in both the

private and public sectors. As a consequence, the results of this research may be used to evaluate

the performance of other commercial and governmental organizations in the future, as well as to

suggest current actions.

6
To be completely honest, this research would benefit Unga Limited since it would provide them

with a better understanding of the impact of employee performance on organizational

performance, which would be beneficial to them. The study's results and suggestions will also be

used to assist the company in building more effective staff motivation, which will lead to

increased productivity in the future. Finally, the study would benefit researchers, academics, and

academicians since it would provide them with baseline data for future research in this field. The

study will also benefit future academics and researchers since it will provide empirical literature

on employee motivation and organizational performance, which will help them achieve greater

outcomes in the future.

1.6 Scope of the Study

The study was done in the Unga limited Company which is located in the Eldoret town in the

Uasin Gishu County. The target population was all the employees of the Unga limited from

which the target population was derived of the 48 employees. The study was done from the

month of the February 2022 to April 2022. The study was limited to the study independent

variables and the dependent variables.

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 CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter entailed the theoretical framework, empirical study and conceptual framework.

2.2 Theoretical Framework

2.2.1 Equity Theory
In equity theory, employees' beliefs about their contributions to the company, what they receive

in return, and how their come-commitment quantitative connection compares to others inside and

outside the company all demonstrate that their business relationship is honest (Adams, 1963).

Adams' first novel, titled Employees will have to work harder to restore value now that the area

unit is aware of the imbalance. A few of these methods (such canceling or forcing an

engagement) may be detrimental to the company. In equity theory, the input and output are

separated. Working with numbers is a specialty of the associate degree worker. If a worker

detects an error, he or she has the power to correct it. Employees may perceive a decrease in

overall productivity and work quality. Disparities will increase absenteeism and, in certain cases,

employee attrition (Greenberg, 2005).

Polyglot (2010) examined the implications of perceived equality and high employee

embezzlement rates. Two divisions have implemented Vday panoptic wage decreases. The

untied third unit's compensation was not lowered; it was allocated to the effect cluster's function.

A variety of responses were given about the reasons for the salary reductions. Management

offered a large number of statistical evidence to support its decision to lower remuneration, as

well as a strong feeling of responsibility in the process. As a result, the "insufficient clarity"

cluster got less information and had no regrets throughout the qualifying process. Its

compensation has not been cut (and hence no explanation).

8
The mafia leader and the two individuals who chose to take a wage reduction began off with the

same academic degrees and views on equality. After the wage decrease, the acceptable

explanation cluster's larceny rate was 54% higher than the control group's. For the "inadequate

explanation" group, the risk of embezzlement was 141 percent higher. In this case,

communication had a significant and self-regulating impact on employee attitudes and behavior.

To see whether employee views of compensation disparities between lower and top management

influenced the quality of goods produced by 102 trade units in 41 firms, Cowherd and Levine

(2012) looked at 102 Cowboy and Levine advise workers to regularly compare their

remuneration to that of higher-ranking colleagues. If they feel unfairly treated, subordinate

experts might lower their effort to provide value. The study concluded that quality is defined as a

consumer's awareness of high-quality products and services. Additional role- or residency

actions like openly donating to help others, following rules in spirit rather than letter, and

correcting some errors that would normally result in discharge notice would have only minor

impact once the wage gap between hourly and high social control laborers became significant.

According to the study's findings, businesses should avoid overlooking potentially harmful

mental highlights of government personnel's motivation.

2.2.2 Expectancy Reinforcement Theory

BF Skinner and Vroom (1974) established employee motivation theory to better understand how

workers behave in a variety of scenarios. Positive experiences are more likely to be repeated.

The combination of great employee performance and monetary compensation improves the

chance of future performance by those previously paid. A very high level of performance

without a monetary incentive, however, is unlikely to be repeated (Sah, 2014). When workers

are inundated with goals and work hard to achieve them, they expect a reward from their

9
company. Employees are less likely to repeat bad conduct if their company fails to acknowledge

or promote them. The reward emphasizes the person who accepts the award honestly (Gerhart

and Rhynes, 2003).

Vroom defined the relationship between incentives and behavior as "expectation." This notion

says motivation comes from anticipating something pleasurable (Sah, 2014). Employees may be

motivated if they know what is expected of them, according to one school of thought.

Motivation, as previously stated, is determined by how much effort is put into a task. As a

consequence, employees are driven by the prospect of achieving a performance target through

exerting effort (Hollenbeck et. al. 2007). A ULC employee who feels that increasing general

productivity would not result in greater pay is unlikely to work harder than usual. The possibility

that an employee will get a different outcome from achieving a performance objective also

influences motivation. Contract UCL personnel may not do more work than they did in the

previous fiscal year due to the possibility of getting compensated for exceeding expectations.

Demotivated by perceived prejudice in the compensation scheme, they may resort to go-slow

tactics to protest the situation.

Employees are likewise highly motivated, putting a great emphasis on their own personal

ambitions (Gerhart and Rhynes, 2003). Depending on the function, a UCL manager's aims may

vary from those of a lower-level support staff member. As a result, opinions on what constitutes

a good financial gain varied. Consider this scenario: A reward will drive the latter to work more

on their task, whilst the former will not. This is because, although having similar corporate aims,

their personal aspirations are significantly different. As a result, the monetary value of incentives

fluctuates.

The expectancy-reinforcement theory posits that effort and performance lead to a desired

10
reward. Good performance will be repeated in succeeding periods under similar circumstances

due to prior incentives and future benefits desired by workers.

2.3 Empirical Review

2.3.1 Salaries and Wages and Organization Performance
The organization's principal goal is to ensure that its goals are met via the efforts of its workers,

who are seen as critical components of the firm's organizational principles. Employees are

regarded in such high regard by the firm that it would be difficult to meet its obligations and

follow the law if they were not there. When a company is doing well, employees are forced to

work more, and they are much more motivated when their pay and earnings have been boosted

or risen greatly. Employees' lives improve as a result of having more money to spend and their

general well-being improves as a result of higher compensation and earnings as a result of

increased compensation and earnings. There was a time when employees were paid less than

they are now, before today's salaries (Simiyu, 2003).

A salary is a monthly payment made to an employee that is predictable and scheduled. Salaries

and wages, unlike other types of income, are paid on a regular basis, but other forms of

compensation are not. The idea of wage continues to change when it is seen as part of a bigger

system of total payment that firms deliver to their workers. Salary is becoming more widely

acknowledged as part of a "whole compensation scheme," which includes bonuses, incentive

pay, commissions, and other benefits and perks connected to an employee's measured

performance. In this context, salary is frequently referred to as fixed compensation. In certain

countries, pay is referred to as fixed compensation, while salary is referred to as variable pay in

others. Salary is paid on a monthly basis in most cases, but other forms of compensation are

paid on a more irregular basis. The SRC is in charge of setting pay rates for Kenyan

government workers (KIPPRA, 2016).

11
The Kenya Revenue Authority defines salary as "monthly payments made by firms to their

employees in return for services rendered in compliance with contractual agreements" (2015).

When referring to financial incentives offered by businesses to their employees, the terms

"salaries" and "wages" are often interchanged. Wages and salaries, on the other hand, are not

synonymous in this context. Salaries are recompense or payments made to long-term workers

who have worked for a firm for a long period. In the hotel sector, wages and pay are

occasionally employed to enhance company competitiveness, equality, and employee success.

In the hotel business, this is particularly true.

In their examination of performance management on employees research at KENGEN,

Florence and George (2013) revealed that there is a significant relationship between pay and

performance; compensation motivates workers. Furthermore, they discovered that performance

was a significant role in deciding remuneration, and that performance influenced motivation via

working conditions. Pay has an impact on performance, but it also has an impact on the

capacity to attract and retain qualified people. A reasonable income, according to Achoka

(2013), is one of the reasons that motivates people to engage and stay in the teaching profession

in Kenya, as well as to continue to perform extraordinarily well. She recommends that Kenya's

government raise teacher compensation, which would reduce absenteeism and boost teachers'

motivation and pleasure at work, resulting in improved student achievement. When employees

think they have been appropriately compensated for the effort and time they have put into the

company, a culture of performance, self-discipline, and loyalty develops.

2.3.2 Promotion and Organizational Performance

A person is considered to have been promoted when he or she advances from one grade of work

12
to a higher grade of work within the same enterprise or organization. This is also known as

being given extra obligations or tasks. In some companies, moving from one grade of labor to a

higher grade of labor is often accompanied with a rise in salary, which pushes workers to work

harder and more efficiently to meet the organization's objectives. Certain academics studied the

influence of promotions on organizational performance and concluded that promotions

enhanced employee performance and, as a consequence, organizational performance, which

was confirmed by empirical data. Others claim that the promotion was followed with a raise in

pay and benefits (Kamau, 2013).

A promotion is a phrase that describes a person's development within their firm or the

broadening of their duties in general. According to Aswathappa, a competitive interview system

in which employees must outperform their peers is utilized to decide whether or not they would

be considered for promotion to the next grade (2005). Employers can use the grade system to

incentivize their employees to perform well and receive non-cash tangible prizes such as

reference letters from coworkers, customer testimonials, certificates, and other non-cash

tangible rewards in order to increase their chances of being promoted to the next job grade,

according to Hussain ( Aswathappa, 2015).

Staff are continually urged, according to Hussein 2007, to seek out opportunities to shine and

get attention, which they would then retain in order to gain a position of power and

development. An employee may be promoted as a consequence of their proactive pursuit of a

higher position or as a result of their employer's recognition of outstanding performance.

Promotions must be granted to eligible candidates in order to impact an employee's motivation

and, as a result, the organization's overall performance. According to Mutahi (2015), employees

who are aware that they will never be promoted may have a detrimental influence on a

13
company's performance unless they feel there will be opportunities for progress in the future.

Depending on the situation, employee performance in a company may increase or decrease as a

result of increasing promotion opportunities. It's not unusual for a promotion to be followed by

a flurry of additional incentives and awards (Mutahi, 2015).

Aswathappa (2005) defines promotion as "the practice of moving employees from lower to

higher levels in the organization, with a corresponding increase in salary and other benefits on

the one hand, and increased responsibilities on the other hand, with a corresponding increase in

responsibilities following the initial increase in salary and benefits." Promotion is defined as

"the practice of moving employees from lower to higher levels in the organization, with a

corresponding increase in salary and other benefits on the one hand, and increased

responsibilities on the other, with a corresponding increase in salary and other benefits on the

one hand, and increased responsibilities on the other, It might also be seen as remuneration for

an employee's efforts and dedication to the organization. Depending on the importance of a

person's contribution to the organization, it may be necessary to promote them in order to keep

them on the payroll. Promotions, according to Casson (2014), should be seen not just as a way

of rewarding employees, but also as a means of putting them in positions that are a good fit for

their talents and abilities. Progress, according to this perspective, affects not only the pleasure

of the individual, but also the happiness of the business or employers as a whole. As a result,

when considering promotions for current workers, companies should exercise caution and

adhere to all relevant laws and regulations. Promotions, unless otherwise stated, may have the

unintended impact of reducing employees' ability to perform at peak production levels Casson

(2014).

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2.3.3 Recognition and Organizational Performance
Employee appreciation is defined as publicly thanking employees for their achievements and

contributions to the company that benefit everyone (also known as employee recognition).

Employees may be acknowledged and rewarded in a number of ways. The relevance of an

organization's activities may be shown by an increase in the benefits connected with its aims as

a consequence of its operations. A profit rise as a consequence of an employee's introduction of

a profitable new market boosts the company's profitability. When employees complete a project

that leads in greater revenue, they are rewarded for their efforts. An employee may be honored

with an award and a speech delivered in front of the whole team (Tilahun, 2014).

When you commend an employee in front of their peers for particular achievements, activities,

or attitudes, you are complimenting their actions and behaviors. Giving a public thank-you

speech in front of other employees, colleagues, or team members, stressing particular instances

of their labor that have benefitted the business, is one technique to get recognition. In addition

to monetary incentives, additional alternatives include employee of the month/year, perfect

attendance, and other customized prizes. Businesses should recognize and compensate their

most valued employees in order to retain them. Praise motivates employees by acknowledging

their accomplishments as well as their innovation and drive to go above and beyond (Gupta,

2018).

Acknowledgement may help to reduce pessimism, which has a detrimental influence on

productivity and performance. According to Lai (2016), recognizing an employee's successes

on a personal, local, and more often basis might assist enhance employee motivation and

morale at work. As a consequence, better levels of performance and productivity are produced,

as well as loyalty and commitment. Because a person's achievements have such a big influence

15
on others, public recognition is a big component of the prize. Publicly revealing why someone

has been recognized and how it connects to the organization's goals may assist in motivating

other employees. It's important to remember that acknowledgment does not have to be

expensive; nonetheless, it must be constant and seen as a long-term commitment on the part of

the organization in it to be deemed effective. High-performing businesses respect, validate, and

appreciate exceptional work, and they've long recognized the importance of rewarding and

motivating staff in methods that do this (Katru, 2016).

Employee appreciation programs are designed to keep employees engaged and productive

throughout the year. As a consequence, acknowledgement is often seen as an effective tool for

reinforcing an organization's members' aims and objectives. A recent research indicated that

managers' appreciation of their workers was a critical driver in the profitability of a South

African hotel firm after accounting for employees' motivating expectations and the

organization's overall performance. According to the study's results, acknowledgment not only

boosts employee motivation but also strengthens the bond between employees and their bosses

(Wanjiku, 2015).

Compliments and other types of social recognition have been demonstrated to improve

performance, particularly when delivered on a consistent and equal basis. Employees are

commended for their commitment and hard work, as well as their triumphs and achievements.

Employee recognition has the potential to be a highly effective tool for improving morale in any

company, regardless of its size or scope. This method might boost employee satisfaction,

productivity, and innovation (Katru, 2016).

2.2.3 Fringe Benefits and Employee performance

Any extra loan perks that an employee receives over the course of his or her employment that

16
are not included in the employee's standard wages or pay are known as fringe benefits.

Employees of a financial institution may be able to borrow money from their employer at a

lower interest rate than the firm charges its clients. This triggers the introduction of a fringe

benefit tax, which makes the perk taxable for Kenyan workers who receive it. In the

manufacturing sector, improved employee performance is linked to increased product and

service production; in other sectors, however, improved employee performance is linked to the

achievement of organizational goals and objectives. Some researchers believe that the rise in

fringe benefits is to blame for the rise in employee performance (Hiam, 2013).

Fringe benefits are non-mandatory payments made on top of a paycheck. When firms hire only

on the basis of compensation, it becomes more difficult for them to recruit the top candidates.

Fringe benefits might include things like giving employees stock options, offering a company

car and a house allowance, providing medical insurance, providing paid vacations, providing

pension plans, and providing time off. Although certain fringe benefits, such as a company car

and paid vacations, are accessible to any employee who satisfies the qualifications, others, such

as a corporate vehicle and paid holidays, are only offered to employees who satisfy the

requirements for particular roles within the business (Aswathappa, 2015).

In addition to basic pay, bonuses are often given as part of an employee's total earnings or

compensation. Bonuses may work as an incentive for managers, diverting their attention and

personal interest away from other activities and toward actions that are seen as advantageous to

their companies' financial success. The phrase "fringe benefits" refers to the types of indirect

income that an employee or group of employees receives as a consequence of being a corporate

member. Baker et al. (2008) describe a total compensation package with an incentive

component as the percentage of a total compensation package that is provided to employees on

17
top of base or performance pay. They also discovered that, even when core pay levels are equal,

a company with a more appealing benefits package has an advantage over competitors when it

comes to attracting and retaining top talent. As a result, such incentives may act as "golden

handcuffs," preventing people from leaving their present job to explore other chances. Pension

plans, medical and dental insurance, education reimbursement, time off, paid vacation, and the

use of a company automobile are all examples of typical perks (Baker et. al., 2018).

According to a study conducted by the US Chamber of Commerce, fringe benefits did not make

up a significant component of most employees' pay packages in the United States until the mid-

twentieth century, if at all. Consider this: in 1929, employee benefits amounted for around 3%

of total payroll expenditures for enterprises. Employee benefits, on the other hand, account for

around 42 percent of total payroll expenditures in the United States. A number of reasons have

contributed to the substantial rise in the importance of employee perks in recent years in the

United States. The Wagner Act, enacted in the 1930s, dramatically strengthened labor unions'

ability to organize workers and bargain on their behalf for improved wages, benefits, and

working conditions on behalf of their members. In the 1930s, labor unions started negotiating

additional employee perks, taking advantage of the favorable legislative climate that existed at

the time. These benefits are increasingly being extended to workers by both unionized and non-

union firms. Some benefits to employees are required by federal and state law, and companies

must comply (Parker, 1986).

Businesses that do not provide competitive benefits packages, according to Osoro (1993), will

certainly have an edge in the labor market when it comes to recruiting. Fragmentary benefits,

often known as perquisites, are those provided by an employer on their own initiative, as a

result of a collective bargaining agreement, or as a result of a state legislative mandate.

18
Personnel incentives are supplied to motivate and retain personnel in order to improve a

company's efficiency and performance. Fringe benefits are those that are used to compensate an

officer for expenses incurred directly or indirectly in the performance of his or her duties, as

well as to recognize and reward him or her for services rendered above and beyond the

traditional employment requirements, according to the Department of Defense (DoD).

Organizations that provide fringe benefits are more likely to attract and retain skilled and

competent personnel. According to this productivity idea, people will perform at their highest

levels of productivity provided their personal, non-work demands are addressed (Kamau, 2013).

2.4 Organizational Performance

Every company aims to be the best in order to outperform rivals and increase shareholder and

investor returns. (2019) Academics like Richard, Devinney, Yip, and Johnson compare and study

organizations throughout time (Richard et al., 2019). The impact of management operations on

the organization fascinates strategy professionals (Rumelt et al., 2015).

A voluntary alliance of people who offer significant resources in return for something valuable to

the organization, it is possible to quantify an organization's success by considering its members

to be a voluntary association of productive assets (Barney, 2019). As a result, the resource

provider's overall success is measured by its capacity to produce value. The increase in

productivity and financial performance will be used to assess the firm's overall success.

2.5 Research Gaps

According to Muraya, there has been relatively little research done in emerging and transitional

economies such as Kenya (2018). Previous study in Kenya on HRM practices focused on both

public and private businesses. The majority of the study focuses on different HRM approaches

and how they influence organizational performance. Training, hiring, job design and

19
performance management all need extensive study. For example, Muraya (2018) investigated

how HRM practices impact performance in Kenyan government institutions. HRM practices

and organizational performance are shown to be inextricably related, according to the study.

The study didn't look at how HRM practices like wage and incentive management influenced

organizational performance. This was noted as a problem by the author, who recommended that

future studies concentrate on a specific HRM practice and how it affects organizational

performance. Alm (2019) came to a similar conclusion and advises about the performance of

financial cooperatives in Nairobi. Future study should concentrate on both organizational and

employee performance to understand how various HRM techniques affects organizational

performance, according to the latter (Alm, 2019).

2.6 Conceptual Framework

The conceptual framework refers to the diagrammatic representation between the independent

variables and dependent variables. The independent variables were the salaries and wages,

promotion, recognition and fringe benefits while the dependent variable was the dependent

variable which was measured by productivity and financial performance.

20
Figure 2.1 Conceptual Framework
Independent Variable Dependent Variable

Salary and wages

 Satisfactory
 Salary increment
 Salary leverage

Promotion

 Equal chances
 Frequent chances
Organization Performance
 Criterion used
 Increased operational
Recognition performance
 Increased financial
 Regular appraisal performane
 Constructive
criticism

Fringe benefits

 Medical Scheme
 Bonuses
 Leave

21
 CHAPTER THREE

RESEARCH METHODOLOGY

3.0: Overview of the Chapter

This chapter detailed the procedures employed in the research investigation. The aspects

addressed under this subject include the research design, research population, the sample

framework and data collecting processes, reliability, validity, data analysis as well as

presentation and ethical contribution of the study,

3.1: Research Design

The descriptive survey approach was determined to be the most effective strategy for this

investigation. In scientific studies, observation and characterization of behavior are used to

observe and describe behavior without causing the subject to modify his or her own conduct

(Burns, 2018). It was decided to undertake a cross-sectional study to see how employee

motivation influences organizational performance in Unga Limited Company in general in Uasin

Gishu County. The results were fascinating. The data was gathered using quantitative data

collection methods. Because the nature of survey research makes it less difficult than other sorts

of inquiries, responding to survey questions is simpler than responding to other types of inquiries

(Gall & Borg, 2019).

3.2: Target Population

The target population is defined as the whole collection of persons, events, or objects that have

certain observable characteristics, as illustrated by the definition (Mugenda & Mugenda, 2018).

22
The study's target audience, according to the findings, was 315 employees from the different

departments in the Unga Limited Company.

3.3: Sample Population

The sample size refers to both the number of items studied and the number of persons that

participated in the study. On the other hand, sampling technique is a scientific way of picking

sample items (Mugenda & Mugenda, 2018). A stratified random sampling strategy was used to

ensure that the sample for this study was representative of the whole population. A sample size

of 30% of the target population was determined, and 30% of the targeted employees were chosen

as participants, in order to fulfill Mugenda et al. (2018)'s requirement of at least 10% sample

size. As a result, 60 workers were chosen from each of the six departments. For each responder

type, the table below displays the target population and sample size.

Table 3.1 Targeted and Sample population

Respondents category Target Population Sample Size

Human Resource Department 50 18

Finance Department 48 12

Administrative Department 45 15

Procurement Department 52 14

Processing Department 47 10

Sales and Marketing 43 11

Total 315 80

Source: Researcher, 2022

23
3.4: Research Instruments

It is necessary to gather information from a number of sources, including secondary and primary

sources, for this inquiry. The material for this study was gathered using a variety of methods,

including personal interviews (personal interviews) and questionnaires (researcher-administered

questionnaires), which contained both closed and open-ended questions. Because the target

demographic was literate, the researcher had an easier time collecting data via questionnaires.

3.5: Data Collection Procedures

A visit to the Unga Limited Company in Uasin Gishu County was made, and questionnaires were

distributed to the respondents. After they completed the questionnaires, the researcher gathered

all of them for analysis. To get extra information, the researcher conducted personal interviews

with the management of the tested firms.

3.6: Piloting of Research Instruments

3.6.1: Validity

This relates to how well research studies measure whatever it is that they are designed to

measure (Macharia, 2019). According to Soaga (2016), expert opinion is the most reliable

approach for judging whether or not a research is reputable. In order to increase the study's

correctness, the research supervisor's input was requested and received. The validity of the

questionnaires was shown by the fact that the content addressed all components of the construct

being examined.

24
3.6.2: Reliability

Macharia defines dependability as the ability of research testing equipment to provide consistent

results over several trials (2019). Every research endeavor will have some degree of unreliability,

however dependability assessments may assist to reduce this level as much as possible

(Macharia, 2019). The test-retest approach was used in this inquiry to provide a high level of

dependability. Over the course of a month, the same approaches were used to assess and re-

evaluate 10 workers from the Unga Limited Company (including questionnaires supplied by the

researchers and face-to-face interviews with the entrepreneurs) (Questionnaires and face-to-face

interviews were conducted by the researcher.). As a result, the research instruments were as

accurate as feasible.

3.7: Data Analysis and Presentation

The linear multiple regression analysis strategy was used to analyze and evaluate the data. A

regression analysis was used to check whether there were any statistically significant correlations

between the dependent and independent variables. It was also easy to determine how much a

variety of independent variables impacted the dependent variable under investigation. The model

used the formula below:

Ŷ = a + β 1X1 + β 2 X2 + β 3 X3 + ε

Y refers to Organizational Performance which is the due dependent variable.

a is the regression constant. This means it is the value of y when X4= X3= X2= X1.

β 1, β 2, β 3, and β 4 refer to changes in Y with respect to a unit fall or increase in X 1, X2, X3

and X4 respectively.

25
X1 represents Salaries and Wages,

X2 represents Promotion,

X3 represents Recognition

X3 represents Fringe Benefits while

ε refers to an error term since some unspecified variables might also affect the Organizational

Performance of the Unga Limited Company.

3.8: Limitations of the Study

The research was hampered by the fact that some respondents were afraid to participate since

the issue of performance is a sensitive one, and many were reticent to provide information.

The researcher overcomes this by assuring the participants that the study was for research

purposes only and that their identities would not be revealed.

3.9 Ethical Considerations

Ethics is described as the philosophical examination of a people's morality and community life,

as well as the habits and practices of organizations, individuals, and humanity as a whole (Barr et

al). (2014). There was a high level of honesty, openness, and quality throughout the study.

Permission was obtained from each respondent prior to conducting interviews in order to gather

information on the target demographic group. Additionally, informed permission was obtained

from respondents prior to the interview. The researcher respected the respondents' right to be

anonymous and private, and their names were not made public or shared with anyone else

without their consent or knowledge. According to the researchers' instructions, respondents

participated in the survey completely freely and without being coerced or coerced in any manner.

26
Every effort was taken to ensure that the volunteers did not experience any harm during their

involvement, including psychological stress. Finally, the research team made every attempt to

retain as much independence and objectivity as possible during the process.

27
 CHAPTER FOUR
RESEARCH FINDINGS AND DISCUSSION

4.1 Introduction

This chapter entails the findings of the study and the discussion on the findings.

4.1.1The response rate

Figure 4.1 Response rate

10.00%

Returned
Not Returned

90.00%

Source 2022

The study findings shows that out eighty (80) questionnaires given 72(90.0%) were returned and

8(10.0%) were not returned. The returned were more than 70% as recommended by (Mugenda

2020).

4.2Personal information of the respondents

4.2.1 Gender of the Respondent

Figure 4.2 Gender of the Respondent

28
 44.40%
Male
Female
55.60%

Source, Author (2022)

Out of the seventy two questionnaires returned, 32(44.4%) were male while the majority

40(55.6%) was female. The study observed a balance in the gender of their respondent hence the

information given is not biased.

4.2.2 Age of the Respondent

Figure 4.3 The age of the respondent

40.00%
36.10%
35.00%
30.60%
30.00%

25.00%

20.00% 19.40%
Series1
15.00% 13.90%

10.00%

5.00%

0.00%
Below 30 30-40 years 40-50 years 50-60 years
Source, Author (2022)

The study finding revealed that the majority of the respondents were between 40-50 years with

29
26(36.1%) followed by those between 30-40 years with 22(30.6%) then those between 50-60

years 14(19.4%) and lastly those below 30 years 10(13.9%).

4.2.3 Workplace experience

Figure 4.4 the workplace experience

6.90%
13.90%
18.10%

Below 5 Years
6-10 Years
27.80% 11-15 Years
16-20 Years
Above 20 Years
33.30%

Source, Author (2022)

The study results shows that those who had worked for 11-15 years 24(33.3%) were the majority

followed by 15-20 years 20(27.8%) followed by 6-10 years 13(18.1%) and those who worked for

above 20 years 10(13.9%) and lastly those who worked for less than 5 years with (6.9%). This

proves the reliability and the correctness of the given information because the majority of the

respondent had worked in the company for more than 5 years hence they had correct information

about the company.

30
4.2.4 The Level of Education
Figure 4.5 the level of education

9.70%
19.50%

Certificate Level
Diploma Level
Degree Level
38.90%
Masters and Above
29.20%

Source, Author (2022)

The study results shows that majority of the respondents had degrees 28(38.9%) followed by

those who had Diploma 21(29.2%),then those with Certificates 16 (19.5%) and lastly those who

had the Masters and above 7(9.7%). This shows that the respondents were literate personnel’s

hence the response given by them was accurate and sensible.

31
4.2.5 Management Level
Figure 4.6 Management Level

20.80%
37.50%

Top Management
Middle Management
Low Management

41.70%

Source, Author (2022)

The study included respondents from all the levels of management. The majority were from the

Middle level of management which were 30(41.7%) followed by the Low management Level

27(37.5%) and lastly the Top Management who were 15(20.8%. This shows that the information

gathered all level of management hence it is more reliable and correct.

32
4.3 Compensation and reward system
4.3.1 Salaries and Wages
The study sought to establish the effects of Salaries and wages on the organizational

performance in the Unga Limited Company in Eldoret Town. The findings are depicted in the

Table 4.1

Table 4.1 Salaries and wages and employee performance

SD D A SA

My salary is satisfactory in relation to what I do 24 27 15 6

33.3% 37.5% 20.8% 8.3%

I earn the same as other people in a similar job in

11 26 21 14
other organizations

15.6% 35.6% 28.9% 20.0%

Salary and wages increase are decided in a fair

13 22 28 9
manner in the company
17.8% 31.1% 40% 12.5%

Salary increase will inspire me to perform better so

8 12 25 27
as to increase the organizational performance

11.1% 16.7% 34.7% 37.5%

Source, Author (2022)

The researcher sought to find out whether the employees were satisfied with the salary they got in

relation to the job they did. Twenty four (33.3%) of the respondents strongly disagree that they

were satisfied with the salary they received in relation to the job they did while twenty seven

(37.5%)) of the respondents disagree with the statement. Fifteen (20.8%) of the respondents agree

and six (8.3%) of the respondents strongly agree. The study concludes that the employees are not

satisfied with the salary they get in relation to the job they do.

33
Out of the respondents fourteen (20.0%) of the respondents strongly agreed that the they earn the

same as other people in the similar job in other organizations, twenty one (28.9%) agreed to this

statement, and twenty six (35.6%) disagreed to the statement that the employees in the

organization do not earn the same as the people in the similar jobs in other organizations and

eleven (15.6%) strongly disagreed. The study concludes that the employees in the organization do

not earn the same as the people in the similar jobs in other organizations.

The researcher also sought to find out if the salary increases are decided in fair manner in the

organization, thirteen (17.8%) of the respondents strongly disagreed with the statement; fourteen

(31.1%) of the respondents disagree. Eighteen (40.0%) of the respondents agree that the salary

increases are decided in fair manner in the organization while five (11.1%) of the respondents

strongly agree. The study concludes that the salary increases are decided in fair manner in the

organization.

The researcher sought to find out if the salary increases will inspire the employees’ to perform

better which increases the organizational performance. Eight (11.1%) of the respondents strongly

disagreed with the statement while twelve (16.7%) disagreed while twenty five (34.7%) agreed

and twenty seven (37.5%) strongly agreed. The study concludes that the salary increases will

inspire the employees’ to perform better which increases the organizational performance.

4.3.2 Promotion
The study entailed establishing the effects of the promotion on the organizational performance in

the Unga Limited Company. The study’s findings are presented in Table 4.2.

34
Table 4.2 Promotion and Organization performance

SD D A SA

Everyone has an equal chance to be promoted in the 8 14 21 29

organization
11.1% 20.0% 28.9% 40.0%

Whenever the employees are promoted the

11 16 19 25
organization performance increases

15.6% 22.2% 26.7% 5.6%

The criterion for promotion is clear

14 19 32 6

20.0% 26.7% 44.4% 8.9%

My performance has improved since I was last

13 16 24 19
Promoted which has enabled the firm to achieve its
goals and objectives
17.6% 22.2% 33.3% 26.7%

(Source, Author (2022)

The researcher sought to establish if every employee have an equal chance to be promoted in the

organization, eight (11.1%) of the respondents strongly disagree with the statement, fourteen (20.0%)

of the respondents disagree and twenty one (28.9%) of the respondents agree with the due statement

and twenty nine (40.0%) of the respondents strongly agree. The study concludes that every

employee has an equal chance to be promoted in the organization.

The researcher sought to find out if whenever the employees are promoted the organization

performance increases, eleven (15.6%) of the respondents strongly disagree, and sixteen (22.2%) of

the engaged respondents disagree and nineteen (26.7%) of the respondents agree while twenty five

(35.6%) of the respondents strongly agree to the statement. The study concludes that whenever the

employees are promoted the organization performance increases.

35
Table 4.2 postulates if the criterion for the promotion is clear, fourteen (20.0%) of the respondents

strongly disagreed with the statement, nineteen (26.7%) disagree with the statement. Thirty two

(44.4%) of the respondents agree while six (8.9%) of the respondents strongly agree with the

statement. The study concludes that the criterion for promotion was clear in the entire firm.

The researcher sought to find out if the performance has improved since I was last promoted

which has enabled the firm to achieve its goals and objectives. Fourteen (17.6%) strongly

disagreed then sixteen (22.2%) who disagreed while twenty four (33.3%) of the respondents

agreed that the performance had improved since I was last promoted which has enabled the firm

to achieve its goals and objectives and twenty nine (26.7%) who strongly agreed. The study

concludes that the performance has improved since I was last promoted which has enabled the

firm to achieve its goals and objectives.

4.3.2 Recognition
The study sought to find out the effects of the recognition on the organizational performance at the

KRA. The findings are presented in Table 4.3

36
Table 4.3 Recognition and the Organization Performance

SD D A SA

6 24 13 29
The employees’ are praised regularly for the work
they do in the organization which motivates them to 8.3% 33.3% 18.1% 40.2%
perform better

The employees’ receives constructive criticism about

13 14 21 24
the work they do and encourage them to improve on
the quality of their output
18.1% 19.4% 29.2% 33.3%

The employees’ are told when they are making

14 20 32 9
progress which motivates them to increase on their
efforts
19.4% 27.7% 44.4% 12.5%

The employees’ performance had improved since

13 18 30 11
they were last recognized

18.1% 25.0% 41.7% 15.3%

Source, Author (2022)

Table 4.3 above illustrates whether the employees’ are praised regularly for the work they did in

the organization which motivates them to perform better, six (8.3%) of the respondents engaged

strongly disagreed to the statement, twenty four (33.3%) of the respondents disagreed that the

employees’ are praised regularly for the work they did in the organization which motivates them

to perform better while thirteen (18.1%) of the respondents agree to the statement while twenty

nine (40.2%) of the respondents strongly agree. The study concludes that the employees’ are

praised regularly for the work they did in the organization which motivates them to perform

better.

In Table 4.3 above shows that the employees’ receives constructive criticism about the work they do

and encourage them to improve on the quality of their output, thirteen (18.1%) of the respondents

37
strongly disagree, fourteen (19.4%) of the respondents disagree that while twenty one (29.2%) of the

respondents engaged agreed and twenty four (33.3%) of the respondents involved strongly agreed.

The researcher concludes that the employees’ receives constructive criticism about the work they do

and encourage them to improve on the quality of their output.

The research involved finding out if the employees’ are told when they are making progress which

motivates them to increase on their efforts. Results in Table 4.3 fourteen (19.4%) of the involved

respondents strongly disagree, twenty (27.7%) of the respondents disagree with the statement, thirty

two (44.4%) of the engaged respondents agree they were being told when making progress in the

work given and nine (12.5%) of the respondents engaged strongly agree with the statement. The

study concludes averagely employees’ are told when they are making progress which motivates

them to increase on their efforts.

The study finding shows that the performance of the employees improved since the last time they

were recognized, thirteen (18.1%) of the respondents strongly disagreed that the performance of the

employed had improved since they last were recognized, eighteen (25.0%) disagreed while thirty

(41.7%) agreed and eleven (15.3%) were strongly agreed. The study concludes that the performance

of the employed had improved since they last were recognized.

4.3.4 Fringe Benefits

The study sought to find out the effects of the fringe benefits on the organizational performance at

the Unga Limited Company. The findings are presented in Table 4.4

Table 4.4 Fringe Benefits and Organizational Performance

SD D A SA

8 23 14 27
My medical scheme is satisfactory
11.1% 31.9% 19.4% 37.5%

38
 I never encounter challenges when processing my
18 24 14 16
leave

25.0% 33.3% 19.4% 22.2%

I always receive a bonus whenever I meet my targets

14 32 20 9
and when the company meets its targets.

19.4% 44.4% 27.8% 12.5%

I am satisfied with the basis used by company to

13 11 30 18
award bonuses to the various job
groups
18.1% 15.3% 41.7% 25.0%

Source, Author (2022)

Table 4.4 above illustrates whether the employees the employees medical scheme were

satisfactory, eight (11.1%) of the respondents engaged strongly disagreed to the statement,

twenty three (31.9%) of the respondents disagreed while fourteen (19.4%) of the respondents

agree to the statement while twenty seven (37.5%) of the respondents strongly agree. The study

concludes that majority of the employees were satisfied with their medical scheme.

The researcher sought to seek if the employees had difficulties when processing their leave, eighteen

(25.0%) of the respondents strongly disagree, twenty four (33.3%) of the respondents disagree that

while fourteen (19.4%) of the respondents engaged agreed and sixteen (22.2%) of the respondents

involved strongly agreed. The researcher concludes that the employee had difficulties when

processing their leave.

The research involved finding out if the employees received bonuses when they met their targets and

when the company thirty two (44.4%) of the respondents disagree with the statement, twenty (27.8%)

of the engaged respondents agree they were being told when making progress in the work given and

nine (12.5%) of the respondents engaged strongly agree with the statement. The study concludes that

39
the employees did not receive their bonuses even after meeting their targets or after the company

meets its target.

The researcher sought to find out if the employees were satisfied with the basis used by the company

to ward bonuses to the various groups, thirteen (18.1%) of the respondents strongly disagreed, thirty

(41.7%) disagreed and eleven (15.3%) agreed and eighteen (25.0%) of the respondents strongly

agreed. The study concludes that the employees were not satisfied with the basis used by company to

award bonuses to the various job groups.

40
 CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS

5.1 Introduction
This chapter entails summary of the research findings, conclusion and recommendations of the
study.

5.2 Summary of Findings

5.2.1 Salaries and Wages and Employee Performance
The study revealed that the employees’ in the organization were not satisfied with the salaries in

relation to the work they do in the company, they also shows that they earn relatively not the

same with other people in the similar job in other organizations, they agreed that the salaries

increases are decided in a fair manner and that the increase of the salaries of the employees

inspire them to perform better.

5.2.2 Promotion and Employees’ Performance

The study findings shown that everyone in the organization had an equal chance to be promoted,

whenever the employees’ are promoted the organization performance of the company increases,

the criterion for promotion was not clear and that the performance of many employees had

improved since the last promotion which has enabled the firm to achieve its goals and objectives.

5.2.3 Recognition and Employees’ Performance

According to the study the employees were appraised regularly for the work they do in the

organization which motivates them to perform better, they also receive constructive criticism

about the work which encourage them to improve on the quality of the output, they are told when

they make progress which motivates them to increase their efforts and the performance had

improved since the last recognition.

5.2.4 Fringe Benefits and Employees’ Performance

The study results shows that the medical scheme was satisfactory, they encountered challenges in

41
processing the leave, they did not receive bonuses when they meet their targets and when the

KRA met its targets and the employees were not satisfied with the basis used by KRA to award

bonuses to the various job groups.

5.3 Conclusion
The study made the following conclusions, the salaries were not satisfactory in relation to what they

did, they did not earn the same as other people in similar jobs, the salaries increases were not

decided in a fair manner, the salaries increase would inspire them to perform better. Everyone in the

organization had an equal chance to be promoted, whenever the employees were promoted the

organization performance increased, the criterion for promotion was not clear and that the

performance of the employees had improved since the last promotion. The employees’ were praised

regularly for the work they did which motivated them to perform better, the received constructive

criticism about the work which encouraged them to improve on the quality of their output, they are

told when making progresses which motivated them to increase their efforts and that they improved

on the performance since the last recognition. They had a satisfactory medical scheme, they

encountered challenges when processing their leave, they did not receive their bonuses whenever

they met their targets and when the company met its target and they were not satisfied with the

basis used by the company in administering bonuses to their various job groups.

5.4 Recommendations

The study recommends the following; the employees should be made satisfactory to each

employee according to the work they do. The salary increment in the organization should be

decided in a fair manner. The promotion should not be entirely on the performance but the

management should also consider other key factors like the education qualifications, skills, and

leadership among others. The criterion used in promotion should be made clear to all employees.

42
The management of the company should make sure that the employees are not having challenges

when processing their leaves. The management should also make sure they give bonuses to the

employees whenever they meet their targets and when the company meets its target to motivate

the employees. The management should encourage the supervisors and the departmental heads to

give constructive criticisms to the juniors as it motivated them to improve on the quality of their

output

5.5 Suggestions for Further Research

This study was limited to the data which was collected from the population as sampled. Even

so, there exist numerous companies all over the country. As such, there is requirement for

researchers to avoid disregarding larger as well as different sets of samples in order to consider

the divergent environments where some operate. Owing to the limited period in terms of time, it

was not possible to collect the comprehensive data required for the measurement of the

relationship between employees’ motivation and organizational performance in the Unga

Limited Company in Kenya. To this end, the paper calls on other researchers to widen it

through covering secondary data on a wider time period, for example ten years. The study

suggested that further research should be done on the factors to consider during the promotion

of the organizational performance.

43
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