Effects Of Reward And Compensation Systems On Employee Performance Within The National Museums Of Kenya

ABSTRACT

Reward and compensation systems in any organization are a vital tool and play an important role

as far as employee motivation and performance was concerned. The way organizations managed

their reward and compensation systems determined or influenced the attitudes of employees

towards work, as well as their performance. This study therefore sought to investigate the effects

of reward and compensation systems on employee performance. Specifically, it were to analyze

major levels of reward and compensation systems, find out how those levels were designed or

established, and established the specific earnings and their effects on employee performance

within the National Museums of Kenya.

The study adopted the survey design. The target population involved all the 220 members of staff

from Nairobi. Random sampling was used to select members of staff from five directorates i.e.

directorates of Administration and Human Resource, Research and Collection Management,

Regional Museums Sites and Monuments, Cultural and Corporate Affairs. The sample size

involved 44 employees which is 20% of the target population that representing the senior, middle

and support staff. The data collection instrument used was the questionnaire.

The data collected from the study was analyzed using both quantitative and qualitative

techniques. With the assistance of the computer program, that is, Special Program for Social

Scientists (SPSS) version 16.0, multiple regressions was used to measure the effects reward and

compensation systems at different levels of management on employee performance. Regression

analysis was also used to examine the relationship between staff performance at different levels

of management vis a vis reward and compensation systems. Tables, graphs and descriptive charts

were used to present the data.

The study found out that the reward and compensation systems had effects both positive and

negative on employee performance that included increased efficiency and effectiveness,

productivity and morale on the positive side; while labor turnover, reduced productivity and

work performance are effects on the negative side. The recommended improvement on reward

and compensation systems and further studies to be conducted to investigate strategies used to' deal with the problem of employee recruitment and retention among others.