Intrinsic Reward and Organization Performance at Vihiga County Government, Kenya

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue XI, November 2019 | ISSN 2454–6186

Intrinsic Reward and Organization Performance at Vihiga County Government, Kenya

Wilberforce Lumumba, Oluoch Mercy Florah

University of Nairobi, Kenya

Abstract:-Due to the prevailing cut-throat competition in the global economy, organizations spend much of its resources to enhance their performance. To enhance employees’ performance, they need to be provided with both financial and non-financial reward. This study therefore looked at the effect of intrinsic reward on organization performance in Vihiga county government, Kenya. The study specific objectives were: To examine the effect of trust on organization performance in Vihiga county government, Kenya; To find out the effect of recognition on organization performance in Vihiga county government, Kenya; and To establish the effect of promotion on organization performance in Vihiga county government, Kenya. The researcher employed a descriptive survey research design. The population of the study consisted of nine departments in the county government. Specifically, the study targeted 2, 819 employees out of which 350 employees were sampled. The researcher collected data using questionnaires. The Pearson Product Moment Correlation Coefficient and simple linear regression were used to estimate the influence of intrinsic reward on organization performance of county government in Vihiga County. The study found out that promotion had the highest effect on organization performance followed by trust and recognition. The study also revealed that promotion, trust and recognition accounted for 29.8%, 22.2 and 18.2% respectively of the variability in organization performance. Intrinsic reward also had a positive and significant effect on organization performance and accounted for 28.7% of the variability in organization performance. The study therefore recommended that organization that wishes to register an increase in organization performance should provide their employees with intrinsic reward packages mainly promotion, trust and recognition.

I. BACKGROUND OF THE STUDY

Cut throat competition in the global economy has made most of the organizations to spend their internal and external resources to enhance performance. Organizations that wish to be competitive must utilize their internal resources that entail employees, physical and financial resources. According to Armstrong (2010), employees are the most valuable resources in an organization for enhanced performance. Armstrong (2010) depicts that employees’ motivation through reward is very key in an organization. Currently, organizations are relying on intrinsic rewards to enhance organization performance instead of extrinsic reward because they have proved to be a strategic component of developing employees’ capabilities and improving their commitment and attitude towards superior organization performance.

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