Effect of Salary Schemes On Employeees' Productivity • A Case Study of Sony Sugar Company, Kenya

TABLE OF CONTENTS PAGE

DECLARATION ..................................................................................................................... i

ACKNOWLEDGEMENT ......................................................................................................... ii

DEDICATION ...................................................................................................................... iii

TABLE OF CONTENTS ...................................................................................................... iv

LIST OF TABLES ................................................................................................................ vii

LIST OF FIGURES ............................................................................................................ viii

ABBREVIATIONS AND ACRONYMS .................................................................................... ix

ABSTRACT .......................................................................................................................... x

CHAPTER ONE. ................................................................................................................... l

INTRODUCTION .............................................................................................................. l

BACKGROUND TO THE STUDY ................................................................................. 1

COMPANY BACKGROUND ......................................................................................... 2

STATEMENT OF THE PROBLEM ................................................................................ 4

RESEARCH OBJECTIVES .................................................................................... : .......... .5

RESEARCH QUESTIONS ................................................................................................ 6

RESEARCH HYPOTHESIS .......................................................................................... 6

SIGNIFICANCE OF THE STUDY ................................................................................. 6

THE SCOPE 1\ND LIMITATIONS OF THE STUDY ......................................................... 7

THE CONCEPTUAL FRAMEWORK .............................................................................. 7

CHAPTER TWO ........................................................................................................... 9

LITERATURE REVIEW ................................................................................................ 9

INTRODUCTION ...................................................................................................... 9

CONCEPTUAL DEBATE ............................................................................................. 9

v

SALARY SCHEME ......................................................................................................... 9

THEORETICAL FRAMEWORK .................................................................................. 11

EMPIRICAL DEBATE ............................................................................................... 16

SALARY SCHEME ......................................................................................................... 16

ANNUALIZED SALARY SCHEME .................................................................................. 16

PENSION SCHEME ........................................................................................................ 16

CAREER DEVELOPMENT PROGRAMMES ....................................................................... 17

FRIDGE BENEFIT ......................................................................................................... 17

CHAPTER THREE ......................................................................................................... 18

RESEARCH METHODOLOGY ................................................................................... 18

INTRODUCTION .................................................................................................... 18

RESEARCH DESIGN ................................................................................................ 18

TARGET POPULATION ............................................................................................ 18

SAMPLING DESIGN AND PROCEDURE ..................................................................... 19

DATA COLLECTION INSTRUMENT AND METHODS ................................................... 19

DATA ANALYSIS TECHNIQUES AND PRESENTATION METHOD ................................. 20

CHAPTER FOUR ......................................................................................................... 21

DATA ANALYSIS AND INTERPRETATION . ............................................................. 22

INTRODUCTION .................................................................................................... 22

BACKGROUND INFORMATION ................................................................................ 22

SALARY SCHEME ................................................................................................... 27

CHAPTER FIVE ......................................................................................................... 37

SUMMARY AND CONCLUSION ................................................................................... 37

ANALYSIS FROM HUMAN RESOURCE DEPARTMENT ............................................... 38

CONCLUSION ........................................................................................................ 42

RECOMMENDATIONS ............................................................................................. 43

Vl

BIBLIOGRAPHY ......................................................................................................... 48

APPENDIX I .......................................................................... , ......................................... 50

APPENDIX II ........................................ , ........................................................................... 51

APPENDIX III. ............................................................................................................ ~  

ABSTRACT The topic of studying this research was the effect of welfare schemes on employees' productivity In Sony Sugar Company in Kenya. This was born out of the fact that welfare scheme is meant to improve employees productivity thus organization productivity. However this is often on contention as many employees seems to be the objectives in this study included to establish the effect of salary schemes on the performance and motivational level of the employees in the company , to identify the indicators of good employees productivity, to establish how career development opportunities act as intrinsic salary schemes to employees. A review of literature was done, this was based on the variable identified which included the review based on previous studies carried out in the area of the finding where majority of the respondents felt that competition affected the growth of salary schemes of the Sony Sugar company as well as majority of welfare schemes of employees' production for organization dealing with business in Kenya. , Employee sees themselves as performers where efficiency and effectiveness is concerned and they are mostly affected by welfare scheme practiced in the company.