EFFECTS OF EMPLOYEE WELFARE PROGRAMMES ON

ORGANISATIONAL PERFORMANCE MAKUENI COUNTY, KENYA

EVERLYNE MUENI MUEMA

C153/OL/CTY/26385/2019

A RESEARCH REPORT SUBMITTED TO THE SCHOOL OF HUMANITIES

AND SOCIAL SCIENCES IN PARTIAL FULLFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF

ARTS IN PUBLIC POLICY AND ADMINISTRATION OF KENYATTA

UNIVERSITY

NOVEMBER, 2022
 DECLARATION

I hereby declare that this research project is my original work and has not been presented

to any other institution of higher learning for the award of any degree.

Signature……………………………. Date……………………………

EVERLYNE MUENI MUEMA

C153/OL/CTY/26385/2019

This project report is submitted for examination with my approval as the University

Supervisor.

Signature……………………………. Date……………………………

DR. WELDON KIBET NG’ENO

DEPARTMENT OF PUBLIC POLICY AND ADMINISTRATION

KENYATTA UNIVERSITY

ii
 DEDICATION

I dedicate this proposal to my mother and two daughters.

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 ACKNOWLEDGEMENTS

Am grateful to God Almighty for His grace and wisdom He granted me in the entire

period of study. I am indebted to my mother Joyce Kivande for her encouragement and

support throughout the study period. Your words of wisdom and prayers are forever

appreciated. I am thankful to my daughters Alina and Hannah for understanding why I

had to stay late while I worked on this project. Your smiles when I finally showed up

gave me enough reason to see this project come to a successful completion. I am grateful

to Kenyatta University for giving me an opportunity to pursue my post graduate studies

in the institution. My sincere appreciation to my supervisor Dr. Weldon Ngeno for his

invaluable input in the study. Your wisdom and guidance have seen the successful

completion of the research. I acknowledge my fellow course mates for their inputs and

critique to my work. The constant encouragement saw me through.

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 ABSTRACT

Employees form the human capital factor in all organizations and symbolizes all human
abilities irrespective of the inherent or learnt qualities, whose worth could be improved
by suitable development investments. Organizations therefore need to ensure that they
offer compensation and welfare packages that increase employee motivation. The
motivation of employees increases when their needs are met and this leads to increased
productivity and efficiency in service delivery. Achieving optimal performance in public
service remain a challenge. There is limited literature of employee welfare programmes
and organizational performance hence the reason for conducting the study. The objective
of the study was to determine the effect of employee welfare programs on organizational
performance in Makueni County Public Service. The specific objectives are: To evaluate
the effect of retirement benefits on organization performance Makueni County Public
Service; to determine the effect of medical cover on organizational performance in
Makueni county public service; and to assess the effect of employee allowances on
organization performance Makueni County Public Service. The study used the social
exchange theory by George Homans as the anchor theory since it explains all the study
variables both independent and dependent. The other theories that were used include the
achievement motivation theory by David McClelland 1980 which explained employee
performance. The expectancy theory by Victor Vroom 1960 explained the employee
welfare component. Maslow’s hierarchy needs theory of motivation was also used. The
study sample size was 376. The study used proportionate stratified random sampling.
Data collection was done using a semi-structured questionnaire. The data collection used
of google forms. A pilot study was conducted to determine the validity and reliability of
the data collection tool. The data analysis was done by use of SPSS. Descriptive analysis
was use to achieve the study objectives. Data was presented and visualized using charts
and tables. The Pearson correlation analysis showed that the independent variables have a
strong positive correlation with the dependent variable. The regression analysis showed
that 45.3% of the organizational performance is explained by availability of retirement
benefits, medical insurance and staff allowances. Availability of staff allowances explain
35.9% of the organizational performance, retirement benefits explain 45.6% of
organizational performance and availability of medical cover explain 71.2% of the
organizational performance. The study concludes that staff benefits have a positive
significance correlation with organizational performance. The availability of these
benefits boosts employees’ satisfaction and consequently influence their performance and
that of the organization. The study recommends that county government of Makueni
ensures that there is equitable availability of medical cover; train staff on retirement
benefits; provide staff allowances equitably and in good time to allow staff to execute
their duties effectively. The study recommends that the human resource directorate
conducts sessions with employees to identify the gaps in the staff welfare packages and
action on the recommendations.

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 LIST OF TABLES

Table 3.3.1: Operationalization of variables ..................................................................... 29

Table 3.5.1: Target Population.......................................................................................... 30

Table 3.6.1: Sample size ................................................................................................... 32

Table 4.2.1 Response Rate ................................................................................................ 37

Table 4.3.1: Reliability study using Cronbach Alpha test ................................................ 38

Table 4.5.1: Descriptive statistics on retirement benefits ................................................. 47

Table 4.5.2: Descriptive statistics on medical insurance .................................................. 49

Table 4.5.3: Descriptive statistics on staff allowance ....................................................... 51

Table 4.6.1: Pearson Correlation coefficient between Variables ...................................... 52

Table 4.6.2 Model summary for retirement benefits and organizational performance .... 53

Table 4.6.3 Anova for Retirement Benefits (X1) and Organizational Performance (Y) .. 54

Table 4.6.4: Model summary for Medical Cover and Organizational performance ......... 54

Table 4.6.5: Anova for Medical cover (X2) and Organizational Performance (Y) .......... 55

Table 4.6.6: Model summary for staff allowance and organizational performance ......... 56

Table 4.6.7 Anova for Staff Allowance (X3 ) and Organizational Performance (Y) ...... 57

Table 4.6.8 Overall model summary................................................................................. 58

Table 4.6.9: Overall Anova table ...................................................................................... 58

Table 4.6.10: Table of Coefficients .................................................................................. 58

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 LIST OF FIGURES

Figure 2.2.1: Maslow’s needs Hierarchy model ............................................................... 14

Figure 2.5.1: Conceptual Framework ............................................................................... 26

Figure 4.4.1: Sex Composition ......................................................................................... 39

Figure 4.4.2: Duty Station ................................................................................................. 40

Figure 4.4.3: length of stay ............................................................................................... 41

Figure 4.4.4: Terms of engagement .................................................................................. 42

Figure 4.4.5: Marital Status .............................................................................................. 43

Figure 4.4.6: Level of education ....................................................................................... 44

Figure 4.4.7: Age .............................................................................................................. 45

Figure 4.4.8: Level of seniority......................................................................................... 46

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 ACRONYMS AND ABBREVIATIONS

ANOVA - Analysis of Variance

CPSB - County Public Service Board

DSA - Daily Subsistence allowance

GDP - Gross Domestic Product

G.O.K - Government of Kenya

HRM - Human Resource Management

ICT - Information Communication Technology

SRC - Salaries and Remuneration Commission

NACOSTI - National Commission for Science Technology and Innovation

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 OPERATIONAL DEFINITION OF TERMS

Conflict is a state of opposition between ideas, interests, disagreement or

controversy

Employee allowance benefits that an employee enjoys apart from the normal

remuneration

Employee leave period off time of work that employee is entitled to

Leadership refers to the skill of improving the capacity to create confidence

and direction to the members of staff so as they perform their

duties without difficulties.

Motivation refers to the ability of the employees to perform out of will because

of good leadership.

Performance the ability of the employee to achieve the set targets within the

specified time, the least cost and within the stipulated parameters

Productivity level of an employee output compared to the expected output.

Retirement benefits benefits accrued to an employee upon attainment of mandatory or

voluntary retirement at the end of the employment period.

Staff Allowances monies paid to staff that is not part of their wages or salaries to

facilitate official assignments.

Welfare refers to health, happiness, and fortunes of a person or group

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 TABLE OF CONTENTS

DECLARATION............................................................................................................... ii

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

ACKNOWLEDGEMENTS ............................................................................................ iv

ABSTRACT ....................................................................................................................... v

LIST OF TABLES ........................................................................................................... vi

LIST OF FIGURES ........................................................................................................ vii

ACRONYMS AND ABBREVIATIONS ...................................................................... viii

OPERATIONAL DEFINITION OF TERMS ............................................................... ix

TABLE OF CONTENTS ................................................................................................. x

CHAPTER ONE: INTRODUCTION ............................................................................. 1

1.1. Background to the Study ...................................................................................... 1

1.2. Statement of the Problem ..................................................................................... 6

1.3. Objectives of the study ......................................................................................... 7

1.4. Research Questions .............................................................................................. 7

1.5. Justification and Significance of the study ........................................................... 8

1.6. Scope of the study ................................................................................................ 9

CHAPTER TWO: LITERATURE REVIEW .............................................................. 10

2.1. Introduction ........................................................................................................ 10

2.2. Theoretical Review ............................................................................................ 10

2.2.1 Social Exchange Theory ................................................................................... 10

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 2.2.2 Expectancy Theory ........................................................................................... 12

2.2.3 Achievement Motivation Theory...................................................................... 13

2.2.4. Maslow’s Hierarchy Needs Theory ................................................................. 13

2.3. Empirical review ................................................................................................ 14

2.3.1. Organizational Performance ............................................................................ 14

2.3.2 Retirement benefits and Organizational performance ...................................... 16

2.3.3. Medical cover Organizational performance .................................................... 18

2.3.4 Employee Allowances and Organizational Performance ................................. 19

2.4. Research Gaps .................................................................................................... 22

2.5. Conceptual Framework ...................................................................................... 26

CHAPTER THREE: RESEARCH METHODOLOGY ............................................. 27

3.1. Introduction ........................................................................................................ 27

3.2. Research design .................................................................................................. 27

3.3. Description of Variables..................................................................................... 27

3.4. Location of the study .......................................................................................... 29

3.5. Target Population ............................................................................................... 30

3.6. Sampling and Sampling Techniques .................................................................. 31

3.6.1 Sampling Techniques .................................................................................. 31

3.6.2 Sample size ................................................................................................. 33

3.7. Data Collection ................................................................................................... 33

3.7.1 Data Collection Instrument ............................................................................... 33

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 3.7.2 Data Collection Procedure ................................................................................ 33

3.8. Pretesting ............................................................................................................ 34

3.8.1 Validity ....................................................................................................... 34

3.8.2 Reliability.................................................................................................... 34

3.9. Data Analysis and Presentation .......................................................................... 35

3.10. Ethical Considerations .................................................................................... 36

CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION..................................... 37

4.1. Introduction ........................................................................................................ 37

4.2. Response rate...................................................................................................... 37

4.3. Reliability Analysis ............................................................................................ 38

4.4. Demographic information .................................................................................. 38

4.5. Descriptive Statistics Analysis ........................................................................... 46

4.6. Inferential Analysis ............................................................................................ 52

4.6.1 Pearson Correlation Analysis ........................................................................... 52

4.6.2 Regression Analysis ......................................................................................... 53

4.6.3 Multiple Linear Regression .............................................................................. 57

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMEDATIONS................................................................................................... 61

5.1 Introduction ........................................................................................................ 61

5.2 Summary of Findings ......................................................................................... 61

5.2.1 Retirement benefits and organizational performance ................................. 61

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 5.2.2 Medical cover and organizational performance .......................................... 62

5.2.3 Staff allowance and organizational performance ........................................ 62

5.2.4 Perceptions of staff on the staff welfare components ................................. 63

5.3 Conclusion.......................................................................................................... 63

5.4 Recommendations .............................................................................................. 65

5.5 Suggestion for Further Research ........................................................................ 65

REFERENCES ................................................................................................................ 66

APPENDICES ................................................................................................................. 73

Appendix 1: Introduction Letter .................................................................................... 73

Appendix 2: Questionnaire............................................................................................ 74

Appendix 3: Work Plan ................................................................................................. 83

Appendix 4: Budget ...................................................................................................... 84

Appendix 5: Makueni County Map ............................................................................... 85

xiii
 CHAPTER ONE: INTRODUCTION

1.1. Background to the Study

Performance and higher productivity among organization are the main target and dreams

of organizations. The extent to which employees are able to expend their efforts towards

the accomplishment of organizational goals is depended upon how they are treated and

taken care of by organization stakeholders (Bernardin, 2010). Performance came into

existence in the 19th century and was used to define the results of sports contest. It

evolved in the 20th century and developed as a series of definitions which encompassed in

a wide range what is perceived through performance.

Human resource outcomes are related to change in the behavior of employees such as the

employee turnover, employee satisfaction and absenteeism. The organizational outcome

include the customer satisfaction, productivity of labor and the quality of products and

services offered. Capital market outcomes include market indicators which evaluate

organizational performance such as price of stocks, the growth rate of stock prices and

the market returns. The financial accounting outcomes include measures such as

profitability, returns on equity and returns on assets (Dyer, 2006). In the recent decades,

the concept of performance has increasingly gained attention in almost all spheres of

humanity. In reality, performance is majorly a concept of perception and it explains the

multitude of important reflections on the concept and the instruments of measuring it.

The global economy has been swept by financial crisis which has necessitated the need

1
for improvement in the performance of entities. This has led to multitude of studies at

international level in the area of performance of organizations (Demirbag, 2014)

Currently in the workplace in order for the employer to attract and retain skilled

personnel, they are compelled to provide competitive compensation and welfare

packages. According to Hanim (2017), competing firms lure personnel by offering them

better terms. Organizations therefore need to ensure that they offer compensation and

welfare packages that increase employee motivation. The motivation of employees

increases when their needs are met and this leads to increased productivity and efficiency

in service delivery (Bernardin, 2010).

According to Stone (2012), welfare is defined as the financial or non-financial assistance

given to an employee or their families by the employer. This assistance could either be

services, facilities or benefits. These benefits or facilities include; medical cover, staff

annual leave, paternity and maternity leaves, compassionate leave, study leave, house

allowance, daily sustenance allowances, transport allowances, retirement benefits,

educational programmes, child care among others. The absence of an effective welfare

system demoralizes the employees and this negatively affects the employee productivity

which further leads to poor performance of the organization.

Safety, health and welfare of staff is very necessary for improving the work environment

and the living standards of the employees. In the current 21st century, economic

development of workers plays a key role in the output of the employees. In the recent

past, organizations have been suppressing workers by paying them low salaries and

giving them pressure in a poor working environment. This resulted to conflicts between

2
the employees and employers. Welfare facilities enable workers to give better results and

be productive. Measures of welfare are meant to minimize absenteeism, increase

productivity and efficiency in modern world. The welfare programmes for labor force

have adopted a broad scope to include all workers’ welfare and development aspects

(Nthambi, 2011). Welfare measures are intended to generate a health, efficient,

productive and satisfied work force for the organization (Mensah, 2019).

Over 60% of the public sector organizations in developed countries like the USA, UK

and Canada have developed and maintained their performance through adoption and

implementation of employee welfare programmes (Agusioma, 2019). Over fifty percent

of civil service in china, Korea and Japan have HRM practices that lead to positive

influence on the service delivery effectiveness and efficiency. This influences the

economic development of the countries. In the developing countries there is limited

literature on HRM, the generalization of the finding from the developed economies is not

encouraged (Demirbag, 2014).

In India, the welfare programs have evolved through religious leaders, philanthropists,

voluntary organizations and social workers. Since the inception of industrial revolution,

large scale industries were set up in the cities which lead to rural urban migration. The

main motivation for the labor migration was the high wages, recreational facilities and

comfort. However, these workers were exposed to poor conditions of working

environment, long working hours, low wages and exposure to health hazards due to

absence of safety measures. The government of India, selected a committee to evaluate

the industrial labor in 1907 which resulted to the Indian factories act of 1910 for all

3
seasonal factories. This revised the working hours and resulted to voluntary efforts in

showing interest of employees. This led to introduction of insurance schemes, night

schools, funeral allowance and educational stipend. After the first word war, new

developments occurred and the number of factories and employees increased. The

establishment of the International labour organization in 1919 was a big step in the

history of labour movement. It created unity and conciseness among the workers. In 1920

all Indian Trade Union Congress was established. The Indian Factories Amendment Act

of 1922 was passed. The government on basis of the Rege committee recommendations,

enacted the factories act of 1948 and the state policy of the constitution of India states

that the government will promote and secure the peoples welfare with justice and this will

inform all the institutions in the nation. The plans which are five years long aimed at

protecting the welfare of the employees. In 1960-69 the National Commission on Labor

was introduced to deal with labor problems in a comprehensive way (Demirbag, 2014).

In Kenya, public sector reforms of 2007 were initiated to improve and promote the

efficiency of the public service sector. The economic report by the G.O.K (2012)

indicated that there was a decrease in the contributions made by the employment sector in

the GDP of the country despite wealth creation by the sector. The main cause of drop in

the economic growth and development is poor labor productivity. There are several

welfare facilities which include: intra-mural welfare facilities which are provided within

the organizations boundaries and they include provision for safety measures, first aid

services and good working conditions. The second category is extra-mural facilities

which are provided outside the organization boundaries and they are voluntary. These

include recreation facilities, housing and educational facilities. The third category is the

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statutory facilities which are passed by law and cannot be ignores and their mishandling

is punishable by law. The fourth category is the mutual facilities which are outside

statutory requirements and are voluntarily undertaken by staff for their own interests. The

final one is voluntary facilities which are provided by employers voluntarily and increase

productivity of staff (Dyer, 2006).

The County Government of Makueni, the human resource unit and the County Public

Service Board (CPBS) has developed and adopted the county human resource manual

which elaborates the county staff welfare. The manual provides for staff medical cover

which covers the staff and the immediate family members for both inpatient and

outpatient as per the SRC circular (2014); extraneous allowance paid to an officer who is

required to work for long time in continuous basis. Overtime allowance which is paid to

staff who work over 40 hours in a week. Transport allowance is payable to commuting

staff on condition that they are not provided with means of transport. County Government

of Makueni offers employee leave which include the following categories; annual leave,

maternity leave, paternity leave, sick leave, compassionate leave, unpaid leave, terminal

leave and special leave for sportsmen. Officers are entitled to daily subsistence allowance

for duties which require them to spend outside their work station. The county has a

pension scheme which employees and the employer contribute monthly. The staff on

contract basis are entitled to a gratuity after the end of their contract period (Makueni

County Public Service Human Resource Manual, 2017).

5
1.2. Statement of the Problem

A human resource plan plays an important role to ensure that organization achieves its set

goals and targets. The employee welfare packages are put in place to enhance

organizational productivity and promote the working conditions for the employees within

the organization (Ndinya, 2017). The employee motivation increases when their needs

are met consequently increasing productivity which leads efficient and effective delivery

of services, a precursor to improved organizational performance. There is a challenge in

the efforts to achieve optimal performance in public sector service despite many studies

being done to determine how welfare programmes influence the performance of

employee.

There have been several studies done locally on welfare programs and performance of

employees. Including Karori (2006) on the perception of employee welfare programs in

the large manufacturing firms in Nairobi; establishing that majority of the firms provide

welfare programs for their employees and Wainaina (2011) studied how welfare

programs and employee satisfaction were related at Capital Group Limited which

concluded that the welfare programs boosted employee levels of satisfaction. Masinde

(2011) conducted a research on the effect of employee social welfare benefits on the

motivation of employees in the Pan African Paper mills and Mumias Sugar Company and

found out that welfare benefits lead to greater level of motivation which consequently

help firms retain employee and boosts their productivity. Kuria (2012) in his study at the

flower industry in Kenya found that the welfare programs influence employee

satisfaction. The reviewed studies indicate that there are limited studies on the effect of

6
employee welfare programs on organizational performance. This constitutes gap in

knowledge and this current study seeks to address that gap.

Dismal performance of the County Public Service came to light when the County

Government adopted performance contracting effective FYs 2017/18. An employee

satisfaction survey was conducted in the 2018/19 financial year and the findings indicated

that the employees were dissatisfied with the work environment and the welfare

programs. This study therefore seeks to determine how employee welfare programs at the

County Government of Makueni affects the performance of the county Government.

1.3. Objectives of the study

1. To evaluate the effect of retirement benefits on organizational performance

County Government of Makueni.

2. To determine the effect of medical cover on organizational performance in

County Government of Makueni.

3. To assess the effect of employee allowances on organization performance County

Government of Makueni.

1.4. Research Questions

1. What effect does retirement benefits have on organization performance in County

Government of Makueni?

2. What is the effect of medical insurance on organization performance in County

Government of Makueni?

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 3. What is the effect of allowances on organization performance County

Government of Makueni?

1.5. Justification and Significance of the study

County Government of Makueni has been implementing performance management which

measures the performance of county departments, boards and agencies. The annual

performance reports have highlighted that work environment is a key determinant of

performance. The study variables were chosen because they form the welfare categories

offered to the employees of the County Government of Makueni. The study can be used

by organizations to help improve on their leadership. Managers and supervisors will be

able to identify welfare problems in time and to have them resolved before any adverse

effects can be felt. This study can form a basis for a nationwide study on the effects of

welfare programme on employee performance in the entire public service.

The findings will help management come up with corrective measures and formulate

policies geared towards incorporating welfare programmes to enhance productivity. The

study findings will assist the Government in developing of policies, which will enhance

performance in the public sector. The findings will contribute towards improved service

delivery to all stake holders. This is by offering strategies that will assist in incorporating

welfare programmes. The findings and recommendations of this study will form a basis

for other studies carried out on employee welfare programmes and organizational

performance.

8
1.6. Scope of the study

The study will be done in the Makueni County Public Service. Staff from Departments in

the county government will be involved.

9
 CHAPTER TWO: LITERATURE REVIEW

2.1. Introduction

Chapter two contains the review of empirical literature related to the study problem. The

focus will be on the variables as indicated in the study objectives. The chapter will

provide a clear picture of the area of study drawing insights from previous studies. This

chapter seeks to examine theories explaining staff welfare and review literature from past

studies. The review of guiding theories, review of the empirical literature, the

conceptualization of the relationship between the study variables and the gaps to be filled

by the study are provided in this chapter.

2.2. Theoretical Review

As defined by (Blumberg, 2011) theory is a group of interrelated thoughts, meanings, that

are used to elucidate or forecast a situation. According to (Kerlinger, 2000). The main

reason for a theory is to deliver an enlightenment to both pragmatic incidences and a

tentative inevitability. This study will employ the social exchange theory as the anchor

theory and expectancy theory which explains the four variables explaining employee

welfare.

2.2.1 Social Exchange Theory

This theory was developed by a sociology theorist known as George Homans (1958). It is

among the most influence concepts of understanding workplace dynamics. The social

exchange theory thrives on the assumption that activities taken by the organization to

encourage its employees leads to employee commitment to the organization (Aldhuwaihi,

10
2013). Based on the assumption of the theory, employees when they join the organization

expect that the organization will provide good working conditions and good culture. The

employee will then apply their knowledge and abilities to achieve the goal of the

organization.

The favorable exchange between the organization and its employees leads to an increased

commitment to the organization. According to the social exchange theory, a casual model

is articulated which explains the relationship between organizational culture, strategic

orientation, organizational culture and organizational commitment which then affects the

organizational performance. The social exchange theory is based on three principles

which include; reciprocity, rationality and specificity which explains the relationship

between employer and employee (Enoksen, 2012). The rationality principle explains that

employees will have an association with the organization which will result to rewards and

satisfaction of the needs and wants of the employees. The reciprocity principle reasons

that social relationship is always reciprocated between the employer and the employee.

The specificity principle theorizes that the reciprocity type is able to endure an exchange

relationship between the organization and the employee (Enoksen, 2012).

Strategic orientation and organizational culture are a main areas organization should

focus on to improve employee commitment to the organization. In exchange of this,

employees will increase their loyalty to the organization and this will significantly affect

the outputs of the organization which include performance (Pinho, 2012). The link

between organizational commitment, organizational culture, strategic orientation and

organizational performance are intertwined and exhibits the resource exchange

11
relationship (Enoksen, 2012). The reciprocity of all these components are likely to bring

satisfaction to both the employee and the employer. This theory will be the anchor theory

since explains all the variables under study.

2.2.2 Expectancy Theory

This theory was advanced by Victor Vroom (1964) which has direct application to

settings of the work place and was revised by Porter and Lawler in 1968. This theory

focuses on the cognitive antecedents that influence motivation and how they are

interrelated. The theory is anchored on the assumption that there exists a correlation

between the efforts put to work, the achieved results from and the rewards they get from

their efforts and productivity. People get their motivation from the belief that their efforts

will lead to good performance and consequently the desirable rewards.

This theory is anchored on four assumptions. One is that employees join an organization

expecting that their needs will be met and that they will be motivated. This has a great

influence the reaction of the employees towards the organization. The second assumption

is that people have free will to choose behaviors which are influenced by their calculation

of their expectations. The third assumption is that employees have different expectations

from their employer. Lastly, employees will choose the option that gives them the

optimal outcome (Vroom, 1964). The theory is based on three key elements namely;

instrumentality, expectancy and valance.

12
Expectancy is explained as the estimate by an individual of the probability of all efforts

related to the job will result to an expected level of performance. Instrumentality is

estimate of the likelihood that a given level of performance of a given task will result to

expected outcomes. Valence is defined as the employees’ strength of choice for a certain

reward. Peer acceptance, salary increase, promotions, recognition or any other reward

have different values to different employees. This theory is relevant to this study since it

will explain the welfare component and how it motivates employees.

2.2.3 Achievement Motivation Theory

This theory was advanced by David McClelland an American psychologist in year

1980s.The theory explains how the human motivation and action of people are affected

by the need for achievement, power and affiliation which are describes as the three social

motives as explained below. The first motive is need for Achievement which is described

as the desire to accomplish difficult concept, master tasks that are complex and achieve

high success standards and outdo others. The second motive is the need for power. This

is described as the unconscious concern to influence others and seek position of authority.

The third motive is the need for affiliation. McClelland states that these motives are

learned and despite the age, culture and other factors everyone has these motivating

motives and one of them is dominant. This theory suits this study since it explains

employee performance which constitutes organizational performance.

2.2.4. Maslow’s Hierarchy Needs Theory

This theory was advanced by Abraham Maslow in 1943. The theory is anchored on the

belief that there are hierarchy of five needs in each person and there is variance in the
13
level of urgency of these needs. Maslow stated that the unsatisfied needs act as a

motivation for individuals. Once one need is met, it leads to the desire to have the other

need met. The psychological and safety needs are identified as the lowest needs and are

mainly are met from external source. The social, esteem, and self-actualization needs

constituted the highest needs and are met from within. During the boom period the lower

needs of employees are satisfied.

Figure 2.2.1: Maslow’s needs Hierarchy model

2.3. Empirical review

This section seeks to review the existing literature on the specific objectives of the study.

It will explore the gaps identified and explain how this study seeks to close those gaps.

2.3.1. Organizational Performance

Organizational performance is confounded with notions and ideas such as productivity,

effectiveness, earning capacity, competitiveness, economy, and profitability among many

others. There is no concrete definition of organizational performance. In the current

century, performance is tied to objectives and achieving these objectives translates to

achieving performance. Since organizational objectives cannot be defined in a precise

14
manner since they are ever increasing, performance is therefore hard to define just as it is

to measure performance (Bernardin, 2010). There are several measures of organizational

performance including organizational outcomes, human resource outcomes, capital

market outcomes and financial accounting outcomes.

Studies done by Ali (2016) concluded that the quality of service positively influences

organizational performance. These quality of services which include direct evidence,

reliability, responsiveness, empathy and the attitude of employees lead to better

organizational performance. The state of existing employees, work equipment, work

environment and the work related work facilities lead to improved organizational

performance.

Mastrangelo et al. (2014) stated that the organizational performance effectiveness

depends on leadership competencies. Ssekakubo et al. (2014) in their study on effect of

leadership competencies performance of organization concluded that employee

performance is improved through competent leadership which translates to improved

organizational performance. Individual employee performance can be managed by

manipulating factors which influence the performance. Competent leadership is a key

factor in the performance of an organization. The study findings indicated that competent

leaders tend to influence their employees. The leadership competency determines

organizational performance.

Organizational performance is influenced by employee performance. The employee

performance is dependent on employee satisfactions. Employee satisfaction sparks

employee performance which translates to overall organizational performance (Judge et

15
al., 2017). Several empirical studies have concluded that employee satisfaction influence

their performance and ultimately the organizational performance. Chandrasekar (2011)

concluded that dissatisfaction of employees is influenced by the working environment

contribute to reduction in employee productivity and consequently worsening in the

organizational performance.

2.3.2 Retirement benefits and Organizational performance

According to Jaekwon Ko (2013), organizations provide traditional benefits such as

retirement benefits in order to improve the attitude of employees. These benefits include

pension schemes, security plans and severance pay which are aimed at giving employees

financial security to employees after they exit workforce. A study conducted by

Bernardin (2010) Chinese companies’ emphasis on social security which is aimed at

achieving sustainable development. Descriptive study design was used in the and it

concluded that the implementation of labor friendly policies help companies perform

better than similar firms in term of both operating result and returns on long run stock

market.

A study by Zirra (2019) on benefits’ influence on employee performance at the NASCO

group, Jos plateau state, using stratified sampling on 189 employees concluded that

retirement benefits significantly influence employee productivity. Pensions highly

determine the behavior of workers and encourages retention of young employees in the

organization and the older worker are encouraged to retire timely since their financial

security is guaranteed. The study recommended that the management to review the

current retirement package since this will enable the organization attract and retain

16
competent employees. The study however failed to explore how these benefits impact the

performance of public service. This is the gap the current study seeks to answer.

Haan (2014) sought to estimate the structural lifecycle model of employment, retirement

and consumption decisions made by individual employees in Germany. The findings

indicated that a 3.76 increase in years in the pension age and that there was a reduction of

26.8% in the annual value of public pension benefit which would cause a balance in the

fiscal consequences that are related to increase in the life expectancy anticipated to occur

in the next forty years. The study concluded that employees can voluntarily forfeit 8.51%

of their baseline consumption in order to avoid the cut in the pension value per year. The

findings indicated that once the pension age is increased it increases the wellbeing of

eighty-seven percent of employees and encourages retention of employees and job

satisfaction. This study however did not look at how retirement benefits impact the

performance of organizations which prompted the researcher to determine the effect of

retirement benefits on organizational performance

A study by Robles (2018) found out that despite retirement policies being a push factor

for unemployment of old aged workers, they are also a pull factor. The pension benefits

pull old aged workers out of employment way before the retirement period. The

availability of retirement benefits contributes to the pull factor of retirement. Employee

benefits should include pension schemes for employees as they offer financial security

after retirement. These retirement benefits tend to attract and retain the highly qualified

employees.

17
2.3.3. Medical cover Organizational performance

Demirbag (2014) conducted a study on how health insurance influences productivity of

employee in an organization in Kwara state, Nigeria using questionnaires and sampling

104 respondents. The study used correlation coefficient in data analysis. The study found

that the productivity of an employee was significantly related to the insurance for health.

The study concluded that employees who are given medical cover tend to increase their

productivity since the uncertainties related to medical emergencies are taken care of. This

boosts the motivation of the employees and increases their loyalty to the organization,

increases productivity and output which consequently enhances organizational

performance. The study was conducted in Nigeria. The current study seeks to find if the

findings can be replicated in Kenya.

A study by Jaekwon Ko (2013) showed that companies are concerned with the wellbeing

of employees and hence they create health security for their workforce and thriving

benefits programs. Companies allow their workers sick offs without losing their pay.

Employers’ encourage employees to pile up unused sick off in a year and use them when

they get sick. The findings of the study indicate that some companies pay workers the

unused sick off days. The health issues of employees are diverse and some are

unavoidable and they all in a way influence organizational operation and individual

employee productivity.

The Occupational Safety and Health Act, No. 15 (2007) and amended in 2010 provides

for employee safety, welfare and health within their work environment. The act states

that, where employees faces exposure to harmful and injurious substances or slippery and

18
wet floors, necessary, effective and adequate protective gears should be provided

(Kamau, 2013). The Work Injury Benefits Act No. 15 (2007), spells out compensation

for employee illness and damages contracted or incurred while on duty.

2.3.4 Employee Allowances and Organizational Performance

According to Mensah (2019) employee allowances includes allowances related to

employee housing, travelling and any other provided by the employer at regular intervals.

The allowances are provided as a strategy to maintain and retain employee competencies

and talents within the organization. Special allowances such as meal allowances,

overtime allowances, daily sustenance allowances and mobile subscriptions are related to

employee productivity (Gelard, 2016)

According to the County Government of Kisumu (2013), allowance are payments given

to employees on top of their salaries as a form of benefit and for extra responsibilities

assignments in defined conditions. These are paid for expenses incurred during the

accomplishment of the assigned responsibilities beyond the employee’s job description,

either directly or otherwise. The allowance payable includes per diem, overtime,

entertainment, hardship as well as special duty allowances.

The study by Pan (2015) involving 474 employees in a hotel in Taiwan on the effects of

allowances on the satisfaction of employees, concluded that the employees who are

motivated through additional allowances had the greatest revenue per employee. The

study found that, the provision of house and educational allowances to the employees,

increased their satisfaction level. Additionally, the study found that, some other

allowances, including overtime, did not increase the satisfaction level of the employees.
19
This study hence seeks to determine the influence of allowances on the performance of

organization.

A study conducted by Jung (2015) on the satisfaction level of 314 employees of deluxe

hotels in South Korea had the findings indicate that employee allowances had significant

influence on turnover intentions, employee satisfaction and job engagement. The study

which was done through component analysis also concluded that allowances led to

retention of employees in the hotels. The study concluded that since allowances led to

increased employee satisfaction this translated to the firm’s competiveness, productivity

and potential growth. This research is aimed at determining if the same results will be

replicated in public service in Kenya.

The study by Millan (2013) on the impact of employee satisfaction on performance,

concluded that the efforts aimed at increasing satisfaction of employees through

provision of allowances should be based on demographic characteristics such as age and

gender. The findings indicate that satisfied employees perform better and that employee

satisfaction and organizational performance are directly and indirectly related. The study

concluded that low satisfaction leads to absenteeism, resignations and job separation.

Employers have found allowances are highly desired by employees. This current study

seeks to establish the effect of employee welfare programs on organizational

performance.

According to Jaekwon Ko (2013), organizations who provide employees with allowances

tend to experience reduced rate of employee turnover and the related costs of recruiting,

hiring and training new employees. The organizations can channel these funds to
20
retaining the existing experienced employees through provision of employee allowances.

The study findings indicated that organizations can increase employee productivity

through provision of house allowances, loans and executive perquisites. These

allowances will show the employees that the employer recognizes their value and

aspiration which increases the satisfaction of employees leading to increased

productivity.

A study conducted in Nigeria by Adewale (2014) concluded that vehicle loans, meal and

house allowances significantly influenced employee satisfaction and the employee

retention rate. The findings indicated that employee allowances are practical since they

are less costly to the organization compared with unrest and diminishing productivity.

Organizations offer housing or house allowance to enable employees’ access decent

housing while executing their official duties. Travel allowances and other extrinsic

awards given to employees in form of allowances are essential components in enhancing

employee satisfaction and productivity.

21
2.4. Research Gaps

Author (s) Study Main Findings Key Gaps How the Gap

Variables is being filled

Hanaan Retirement Retirement The study focused This current

Prowse benefits benefits have a on effects of study seeks to

(2014) Structural life great influence retirement see if the results

cycle on employee benefits on can be

Consumption motivation. employee replicated.

decisions motivation

Adomula Medical cover medical cover The study was This proposal

(2016) motivates carried out seeks to see if

Employee employees to outside the the results can

productivity stay in an country be replicated

organization and

boosts their

productivity.

Pan (2015) Staff allowance Provision of The study was This proposal

allowances conducted in seeks to see if

Employee enhances the Taiwan the results can

satisfaction satisfaction of be replicated

employees in Kenya

Jaekwon Retirement Retirement The study was This study

22
Author (s) Study Main Findings Key Gaps How the Gap

Variables is being filled

Ko (2013) benefits benefits improve conducted in seeks to see if

the attitude of Chinese the findings

Pension employees and companies will be

schemes improves their replicated in

performance Kenya and in a

Security plans public sector

Severance pay

Zirra Retirement Retirement Study did not This study

(2019) benefits benefits look at the seeks to

significantly influence of establish the

influence these benefits on effect of

employee performance of retirement

productivity. to public service benefits in

continue public service

Haan Retirement increase in This study This study

(2014) benefits pension age however did not seeks to

makes 87.7% of look at how determine the

Consumption individuals better retirement effect of

decisions off and benefits impact retirement

encourages the performance benefits on

23
Author (s) Study Main Findings Key Gaps How the Gap

Variables is being filled

retention of of organization organizational

employees and performance

job satisfaction

Demirbag Medical cover There is a The study was The Current

(2014) significant conducted study seeks to

Health relationship outside Kenya find if the

insurance between health findings can be

insurance and replicated in

Employee employee Kenya.

productivity productivity

Jung, Employee Allowances led The study was This research

(2015) allowances to increased conducted proposal is

employee outside Kenya aimed at

Employee satisfaction this determining if

satisfaction translated to the the same results

firm’s will be

Turnover competiveness, replicated in

engagement productivity and public service

potential growth. in Kenya

job engagement

24
Author (s) Study Main Findings Key Gaps How the Gap

Variables is being filled

Jaekwon Employee organizations The study This current

Ko (2013) allowances who provide focused on the study seeks to

employees with effect of establish the

Loans allowances tend employee effect of

to experience allowances on employee

Executive reduced rate of employee rate of allowances on

perquisites employee turnover organizational

turnover and the performance

related costs of

recruiting, hiring

and training new

employees

25
 2.5. Conceptual Framework

Independent Variable Dependent variable

Retirement Benefits
 Availability of pension
scheme
 Awareness on the existence
 Sufficiency

Medical Cover Organizational performance

 Productivity
 Quality Affects
 Quality of service
 Effectiveness
 Responsibility
 Accessibility
 Accountability

Staff allowances (DSA, Transport

allowance, meal allowance, field
allowances)
 Sufficiency
 Ease of access
 Equity

Figure 2.5.1: Conceptual Framework
 equity

Source: Researcher (2022)

• Retirement
Equity benefits, medical cover and staff allowances are employee welfare

components which directly or indirectly affect performance of organizations. Their

presence or absence affects the level of employee motivation, satisfaction, retention and

employee performance which in turn affects the overall performance of the organization.

26
 CHAPTER THREE: RESEARCH METHODOLOGY

3.1. Introduction

This chapter gives in details the process by which the study was carried out. It outlines

the design approach which was employed by the study, a description of the study

variables, the study locale, the population targeted by the study and the sampling

approach that the study used to identify the specific respondents of the study. The chapter

also provides the data collection instruments that the study used, how pilot study was

conducted to test the reliability and the validity of the instruments, the primary data

collection procedures, how the collected data was analyzed and presented and finally the

ethical standards that the study observed.

3.2. Research design

The research used descriptive research design. This is a non-experimental study design

that helps the researcher to identify the relationship between two or more variables. This

study design is appropriate for this research because it helped identify characteristics’,

frequencies, trends and categories. The design was fundamental in addressing the study

question on how the welfare programs affects the performance of Makueni County.

3.3. Description of Variables

In research variables are described as characteristics that can take any value. These can

be manipulated, observed or controlled by the researcher (Adum, 2018). The effect of one

variable on another is often studied. There are different types of variables which include;

independent, dependent, and extraneous and control variables. This study used

27
independent and dependent variables. Independent variable is defined as the variable that

is stable and is not affected by variation in other variables (Kivunja, 2018). In this study,

the independent variables were three and they include; retirement benefits, medical cover

and employee allowances. Dependent variable is defined as the outcome variable that is

totally or partially caused by the independent variable. This variable change when

another variable in the study changes. (Adum, 2018). In the study, the dependent variable

is organizational performance. The variables were operationalized as shown in the table

below

28
Table 3.3.1: Operationalization of variables

Variable Type of Indicators Measurement’s Tools of

variable scale analysis
retirement Independent  Availability of pension Likert scale Description,
benefits scheme Correlation and
 Awareness on the Regression
existence analysis

medical Independent  Quality Likert scale Description,

insurance  Effectiveness Correlation and
 Accessibility Regression
analysis
allowances Independent  Sufficiency Likert scale Description,
 Ease of access Correlation and
Regression
 equity
analysis
organizational Dependent  Employee satisfaction Likert Scale Description,
performance  Customers satisfaction Correlation and
Regression
analysis

3.4. Location of the study

The study was conducted in County Government of Makueni Headquarter offices located

in Wote Town. The county is located in the former Eastern Province. The county has

987,653 people according to the 2019 census by KNBS. The county neighbours Kitui

County to the East, Kajiado County to the West, Machakos County to the North and Taita

29
Taveta County to the South. The county lies between atitude 1o and 2 outh

and Longitude 37o1 and o

East. There are six sub counties and wards in the

county.

3.5. Target Population

The study targeted all the 3679 employees of the County Government of Makueni Public

Service deployed in different departments. The distribution of the target population per

departments tabulated in the table below.

Table 3.5.1: Target Population

Department Frequency Percentage

Finance & Socio Economic Planning 227 6%
Health Services 1557 42%
Devolution County Administration Participatory
209
Development & Public Service 6%
Agriculture Irrigation Livestock Fisheries Development 230 6%
Education Youth Sports & ICT 1116 30%
Youth Sports Gender Culture & Socio Services 27 1%
Lands, Mining, Housing Physical Planning & Urban
24
Development 1%
Roads Transport Energy &Public Works 83 2%
Trade Industry Marketing Tourism & Cooperatives 28 1%
Water Sanitation Environment & Climate Change 92 3%
Office of the Governor (Office of CS, SDU, County
86
Attorney) 2%
Totals 3,679 100%
Source: County Government of Makueni (2022)

30
3.6. Sampling and Sampling Techniques

3.6.1 Sampling Techniques

This study adopted a proportionate stratified sampling technique. This is considered as

the suitable method for the study since employees in County Government of Makueni are

classified into departments and seniority levels. The seniority levels are senior

management, middle management, technical staff and support staff. The departmental

classification will allow for homogeneity in the sample selected. The stratified sampling

technique reduces bias and skewness in sampling since departments with more

employees will have more respondents. The study used purposive sampling to identify

specific respondents from each department. Simple random sampling was used to identify

the specific respondents of the study from each identified department of the County

Government of Makueni.

31
Table 3.6.1: Sample size

Department Frequency Ratio Sample Size

Finance & Socio Economic Planning 227 10% 28

Health Services 1557 10% 155

Devolution County Administration Participatory

209 10% 21
Development & Public Service

Agriculture Irrigation Livestock Fisheries

230 10% 23
Development

Education Youth Sports & ICT 1116 10% 112

Youth Sports Gender Culture & Socio Services 27 10% 3

Lands, Mining, Housing Physical Planning &

24 10% 3
Urban Development

Roads Transport Energy &Public Works 83 10% 9

Trade Industry Marketing Tourism &

28 10% 3
Cooperatives

Water Sanitation Environment & Climate

92 10% 10
Change

Office of the Governor (Office of CS, SDU,

86 10% 9
County Attorney)

Totals 376

Source: Researcher (2022)

32
3.6.2 Sample size

Mugenda and Mugenda (2003) stated that a 10% sample size can be sufficient. The study

adopted a 10% sample size from each stratum. The sample size was 376. This was

sufficient and gave a good representation of the population on basis of two reasons. The

first reason was minimizing cost and time spend collecting data and the second reason

was to support homogeneity within a given department.

3.7. Data Collection

3.7.1 Data Collection Instrument

The attributes of the study subjects, the study problem, the topic under study, hypotheses,

design and the expected data and results (Christensen, 2017). The study used

questionnaire for data collection. According to Blumberg et.al. (2011), questionnaire is

defined as an instrument for research which has a series of questions used to acquire

information from the respondents. The questionnaire had closed questions and a 5-point

Likert scale. The questionnaire was divided into six sections. Section one gave the

respondents demographic data, the other four sections explored the independent variables

under study and how they influence the dependent variable and the last section was on

the dependent variable which is organizational performance. The tool was pretested in

the same context and improved before conducting the main study.

3.7.2 Data Collection Procedure

The data collection was done after authorization from Kenyatta university and an

approval letter from NACOSTI. The researcher wrote a letter to the County Secretary,

33
county government of Makueni requesting for authority to collect data from the county

staff. Upon a formal approval the link to the questionnaire was shared to specific

departmental heads for further dissemination to staff.

3.8. Pretesting

The instrument was piloted in Machakos County targeting 10% of the sample size giving

37 respondents. Kothari (2013) indicated that a 10% sample size is sufficient for

pretesting.

3.8.1 Validity

Validity test is used to measures the extent to which the test has measures what it is

supposed to measure. If validity is high then it is interpreted that the study gives results

which are in line with the real variation, characteristics and properties in reality (Adum,

2018). Validity is measured by comparing the results to other relevant theory or data. The

validity in this study was estimated through; the construct validity measured the extent of

adherence to existing theory and knowledge of the concept being measured expert

opinion (Christensen, 2017).

3.8.2 Reliability

Reliability is defined as the internal consistency in the use of measurement methods. The

measurement is reliable if same results can be consistently achieved through applying

under the same circumstances, the same methods (Gibbs, et.al, 2015). In this research,

reliability was considered throughout the process of data collection. The researcher

ensured that results are precise, stable and reproducible. The conditions for the research

34
were standardized and the method for data collection were consistently applied.

Cronbach’s alpha was used to test reliability. This measure gave the strength of the

internal consistency of at least 0.7 for the instrument to be considered consistent.

3.9. Data Analysis and Presentation

The responses from the google forms, were downloaded into a excel spreadsheet and

checked for completeness and consistency. The quantitative data was analyzed through

descriptive statistics, and presented through charts, tables and explained in prose. This

was done through means, percentages, frequency distributions and standard deviations.

The qualitative data was coded into the specific objectives and analysis done through

content analysis. The analysis was done with the help of the Statistical Package for Social

Sciences (SPSS) software which helped in the generation of descriptive statistics and

frequencies as well as the inferential statistics including chi-square, t-test and Fisher’s

test. The inferential statistics aided in establishing the relationship between the study

variables as well as developing the regression model and the correlational analysis. The

Pearson correlation analysis was done to determine the influence that the independent

variables have on the dependent variable.

The multiple linear regression model was as follows:

Y = β + β X1+ β X2+ β X3 +ε
0 1 2 3

Where;

Y is organization performance

35
 β is constant
0

β1, β2, β , - Coefficients or regressors

X1 is Retirement benefits

X2 is Medical Cover

X3 is Staff Allowance

ε is the error term

3.10. Ethical Considerations

The study ensured all ethical consideration are taken care of. These include the right to

privacy, where the respondent was not coerced to provide information they are not

willing to disclose. Right to anonymity, the respondent was not required to disclose their

identity and the researcher was careful to ensure the questionnaire does not capture the

name or identity of the respondent. Right to confidentiality was respected and the

information given was not disclosed to a third party under any circumstance. Right to

informed consent, the respondent was informed on the purposes of the study and allowed

to make a decision if to participate or not. Right to voluntary participation, no respondent

was coerced to take part in the study. The study sought approval to collect data from

NACOSTI.

36
 CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION

4.1. Introduction

This chapter gives the empirical report of the variables to determine the influence of staff

welfare on organizational performance in Makueni County. This is done through data

analysis, interpretation and discussion of the findings. The study employed inferential

and descriptive techniques. Frequencies, means and percentages were generated. Multiple

linear regression was used to show the relationship between variable.

4.2. Response rate

Table 4.2.1 Response Rate

Rate Response Frequency Percentage

Returned 284 75%

Not returned 92 25%

Total Distributed 376 100%

Source: Research Data (2022)

The table above gives the response rate for the distributed google forms. The google

forms were shared to 376 respondents and 284 (75%) responded while 92 (25%) did not

respond. The reason for the 25% non-response is that the respondents did not feel secure

to give their responses online despite the assurance that it is anonymous and that the

information will be used for the purposes of the study alone. The 75% response rate was

okay for the analysis since Gordon (2002) stated that for social sciences, 60% response

rate is acceptable but 70% is more desirable. The response rate of 75% was above the

desirable rate.
37
4.3. Reliability Analysis

Table 4.3.1: Reliability study using Cronbach Alpha test

Item Cronbach’s Alpha Comment

Retirement benefits 0.795 Accepted

Medical Insurance 0.867 Accepted

Staff Allowances 0.87 Accepted

Organizational performance 0.96 Accepted

Source: Research Data (2022)

Reliability measures the extent to which results produces by the tools of measurement are

consistent. The Cronbach Alpha test was used to test the consistency and reliability of the

constructs. Mugenda and Mugenda (2003) indicated that a Cronbach alpha coefficient of

0.70 or more indicates a high reliability of the data. The table 5 below indicates that the

data was reliable.

4.4. Demographic information

The demographic characterizes in reference to gender, duty station, and length of stay in

the county, terms of engagement, marital status, level of education, age and level of

seniority

38
4.4.1 Sex

The study sought to find out the distribution of the employees according to their sex

composition.

Figure 4.4.1: Sex Composition

Source: Research Data (2022)

The study found out that out of the 284 respondents, 55% of the respondents were male

while 45% were female. This shows that the county government of Makueni has

employed more male than female employees. This shows gender parity in employment in

the public service. This is a confirmation of the findings of the research done Suda (2002)

on the gender disparities in the Kenyan labour markets. The study indicated that women

form less than 30% of the formal employments in the country.

39
4.4.2 Duty Station

The study sought to establish the proportion of employees at the county headquarters and

those in the field stations in the county.

Figure 4.4.2: Duty Station

Source: Research Data (2022)

The findings established that out of the 284 respondents, 69% of the respondents are

stationed in the field offices while 31% are stationed at HQ. With majority of the

devolved functions involving offering services to the citizens, the county government of

Makueni has done well in devolving staff to the devolved units. Majority of these staff

are in agriculture, water, devolution and health departments which deal directly with the

citizens. Revenue collectors are also devolved to all market areas to collect the own

source revenue for the county government. This is in line with a study by the World Bank

on making devolution work for service delivery in Kenya (World Bank, 2020). The study
40
found out that the counties which had devolved their services and staff were having

exemplary performance in their service delivery.

4.4.3 Length of stay in the county public service

The study sought to establish the length of stay of the employees in the Makueni County

Government.

Figure 4.4.3: Length of Stay

Source: Research Data (2022)

Out of the 284 respondents, 57.9% of the respondents have stayed in the county public

service for over 5 years, 30.7% have stayed between 3 to 5 years, 7.5% have stayed

between 1 and 2 years while 3.9% have stayed for less than one year. The highest number

of county employees were absorbed from the defunct county council and the devolved

national government staff. The county government has over time replaced the staff who

41
have exited service in various forms. This explains the new recruits who have stayed for

less than 2 years in the government.

4.4.4 Terms of Engagement

The researcher asked the respondents about the terms of their engagement with the

Makueni County. The results are as presented in the bar chart below

Figure 4.4.4: Terms of engagement

Source: Research Data (2022)

The study established that out of the 284 respondents, 59% of the respondents are on

permanent and pensionable terms, 40.3% of the staff are on contractual terms while 0.7%

are on casual terms of engagement. The great percentage of staff on contract terms acts as

demoralizing factor to employees which subsequently affects service delivery and

therefore organizational performance. This is in agreement with a study carried out by

Ofosuhene and Sammo (2020) to determine if contract employment affect the behavior of

42
employees. The study established that employees on contract terms are less motivated

and this leads to dismal performance compared to those on permanent terms.

4.4.5 Marital Status

The study sought to establish the marital status of the employees in the county

government.

Figure 4.4.5: Marital Status

Source: Research Data (2022)

Out of the 284 respondents, 78.4% of the respondents are married, 20.1% are single and

0.7% are divorced and 0.7% are widowed. The findings indicated that the majority of the

employees are married which makes them more responsible and work hard to achieve

their targets for job security purposes. The provision of medical cover is a highly

appreciated benefit by the married employees since their family health is covered. This

gives them amble time for service delivery and increased their productivity according to

Adewale (2014).
43
4.4.6 Level of Education

The research sought to establish the level of education of the respondents.

Level of Education

54.8

24.4

13.1
1.8 5.3 0.7

SECONDARY CERTIFICATE DIPLOMA BACHELORS MASTERS OTHERS

Figure 4.4.6: Level of education

Source: Research Data (2022)

Out of the 2 4 respondents, 4. % hold a diploma, 24.4% a bachelor’s degree, 1 .1% a

master’s degree, . % a certificate, 1. % are secondary school leaver while 0.7 have

other qualifications. The findings indicated that the work force is educated and thus able

to deliver the services as required. This is in line with a study done by Titi (2016) on

factors affecting service delivery in the public sector. The study concluded that education

level of the workers has a strong positive correlation with the quality of services

rendered.

44
4.4.7 Age

The study sought to establish the age distribution of the employees.

Figure 4.4.7: Age

Source: Research Data (2022)

Out of the 284 respondents, 47.9% of the respondents are aged between 18 and 35 years,

36.6% are aged between 36 and 45 years, 10.6% are aged between 46 and 55 years while

4.9% are aged above 55 years. The government of Makueni County has invested in

young work force which are energetic and able to execute work in an efficient and

effective way. This is in line with a study by Titi (2016) on factors affecting service

delivery which found that young employees improve productivity of the organization.

The young employees also get to learn tacit knowledge about the organization which is

key in succession management.

45
4.4.8 Level of Seniority

The study sought to establish the level of seniority among the employees

Figure 4.4.8: Level of seniority

Source: Research Data (2022)

Out of the total respondents 54.2% are technical staff, 38% are in middle management,

3.2% are in senior management while 4.6% are support staff. The findings indicated that

the county has employed more technical people who help in service delivery and a lean

senior management which makes the balance between work and management easier. This

helps improve organizational performance since there are no power tussles.

4.5. Descriptive Statistics Analysis

This section provides descriptive analysis of the independent variables in terms of mean

and percentages. The results are represented using charts and tables.

46
4.6.1 Retirement benefits and organizational performance

Table 4.5.1: Descriptive statistics on retirement benefits

Statement Strongly Disagree Neutral Agree Strong

disagree Agree

Pensions influence the behavior of 12.7% 7.4% 18.7% 15.5% 46.1%

employees. young people are

encouraged to work and older people

to retire

Retirement benefits influence the rate 7.4% 5.6% 18.7% 18% 50.4%

of employee turnover

Retirement benefits attracts better 8.1% 6.3% 14.4% 16.5% 54.6%

skilled employees

Retirement benefits boosts employee 2.5% 3.2% 11.6% 13.4% 69.4%

motivation and encourages

productivity

Retirement benefits offered increase 3.9% 4.9% 15.8% 19% 56.4%

the loyalty of employees reducing

shirking.

Source: Research Data (2022)

47
From the table 9 above, 46.1% strongly agreed that pensions influence the behavior of

employees. Young people are encouraged to work and older people to retire, 15.5%

agreed, 18.7% were neutral, 7.4% disagreed and 12.7% strongly disagreed. On the issue

of retirement benefits influencing the rate of employee turnover, 50.4% of the

respondents strongly agreed, 18% agreed, 18.7% were neutral, 5.6% disagreed and 7.4%

strongly disagreed. Fifty- four point six percent of the respondents strongly agreed that

retirement benefits attract better skilled employees, 16.5% disagreed, 11.6% were neutral,

3.2% agreed and 2.5% strongly disagreed. On retirement benefits boosts employee

motivation and encourages productivity, 69.1% of the respondents strongly agreed,

13.4% agreed, 11.4% were neutral, 3.2% disagreed and 3.9% strongly disagreed. On the

Retirement benefits offered increase the loyalty of employees reducing shirking, 3.9% of

the respondents strongly disagreed, 4.9% disagreed, 15.8%were neutral, 19% agreed and

56.4% strongly agreed.

Sixty-nine percent of the respondents said that the availability of retirement benefits

affect their productivity while 31% said that the availability of the retirement benefits

does not affect their productivity. Fifty-seven percent if the respondents said that the

retirement benefits affect their productivity to a large extend, 18% were neutral while

25% said that the retirement benefits affect their productivity to a low extend. Sixty-five

percent of the respondents said they would leave the organization to another organization

with better retirement benefits while 35% said they would not leave the organization to

another with better package.

48
4.6.2 Medical Cover and Organizational Performance

Table 4.5.2: Descriptive statistics on medical insurance

Statement Strongly Disagree Neutral Agree Strong

disagree Agree

The health of employees is essential for 0.4% 0.7% 2.8% 2.5% 92.6%

their productivity

Sickness and accidents related to work 2.5% 3.5% 9.2% 12.3% 72.5%

take a toll on employees

The availability of medical insurance 1.1% 0.7% 6.3% 12% 79.9%

increases my motivation and

satisfaction

I would leave my current work to an 15.5% 10.6% 19.7% 11.6% 42.6%

organization with better medical

insurance packages

Source: Research Data (2022)

In table 10 above 92.6% of the respondents strongly agreed that the health of employees

is essential for their productivity, 2.5% agreed, 2.8% were neutral, 0.7% disagreed and

0.4% strongly disagreed. Out of the 284 respondents, 72.5% strongly agreed that

Sickness and accidents related to work take a toll on employees, 12.3% agreed, 9.2%

were neutral, 3.5% disagreed and 2.5% strongly disagreed. On the issue of availability of

49
medical insurance increases my motivation and satisfaction, 79.9% of the respondents

strongly agreed, 12% agreed, 6.3% were neutral, 0.7% disagreed and 1.1% strongly

disagreed. Forty-two point six percent of the respondents strongly agreed that they would

leave their current work to an organization with better medical insurance packages,

11.6% agreed, 19.7% were neutral, 10.6% disagreed and 15.5% strongly disagreed.

Out of the 284 respondents, 95.4% said that the medical insurance boosts their

productivity while 4.6% said that presence of medical insurance does not boost their

productivity. Eighty- six point six percent (86.6%) of the respondents said that the

medical insurance affects their productivity to a large extend, 8.1% were neutral and

5.3% said that medical insurance affects their productivity to a low extend. Out of the

284 respondents, 69.4% said that there are measures and policies to ensure that safety and

medical insurance is guaranteed and 30.6% said there is no such a policy.

50
4.6.3 Staff Allowance and Organizational Performance

Table 4.5.3: Descriptive statistics on staff allowance

Statement Strongly Disagre Neutral Agree Strong

disagree e Agree

Provision of allowances motivates 10.7% 1.4% 0.4% 1.4% 85.9%

employees to work and give the best for

the organization

Staff allowances leads to high retention 11.6% 6.3% 1.1% 2.8% 78.2%

of employees in the work place

Staff allowances increases employee 9.9% 2.8% 0% 1.1% 86.3%

satisfaction

Payment of staff allowances increases 8.9% 3.2% 0.4% 10.6% 69.4%

the employee productivity

Source: Research Data (2022)

Out of the 284 respondents, 85.9% strongly agreed that Provision of allowances

motivates employees to work and give the best for the organization, 1.4% agreed, 0.4%

were neutral, 1.4% disagreed and 10.7% strongly disagreed. On the issue of staff

allowances leads to high retention of employees in the work place 78.2% of the

respondents strongly agreed, 2.8% agreed, 1.1% were neutral, 6.3% disagreed and 9.9%

strongly disagreed. Majority of the respondents, 86.3% strongly agreed that staff

51
allowances increases employee satisfaction, 1.1% agreed, 2.8% disagreed and 9.9%

strongly disagreed. Out of the 284 respondents, 69.4% strongly agreed that payment of

staff allowances increases the employee productivity, 10.6% agreed, 0.4% were neutral,

3.2% disagreed and 8.9% strongly disagreed.

4.6. Inferential Analysis

Sekran (2003) stated that a study which indents to explore the relationship between two

or more variables should use regression and correlation analysis. This study used 5%

level of significance. This gives the researcher 95% level of confidence to conclude that

there exists a significant relationship between the variables.

4.6.1 Pearson Correlation Analysis

Table 4.6.1: Pearson Correlation coefficient between Variables

Y X1 X2 X3
Pearson Correlation 1
Y
Sig. (2-tailed)
Pearson Correlation .591** 1
X1
Sig. (2-tailed) 0

Pearson Correlation .764* .195** 1

X2
Sig. (2-tailed) 0 0
Pearson Correlation .892** .441** 0.09 1
X3
Sig. (2-tailed) 0 0 0.167
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Source: Research Data (2022)

52
4.6.2 Regression Analysis

4.6.2.1 Retirement Benefits and Organizational Performance

Table 4.6.2 Model summary for retirement benefits and organizational performance

Std. Error of the

Model R R Square Adjusted R Square Estimate

1 .591a .350 .456 .49176

a. Predictors: (Constant), X1)

Source: Research Data (2022)

The first objective of the study was to determine the influence of retirement benefits on

organizational performance.

Table 13 indicates the coefficient of determination as indicated by the adjusted R squared

to be 0.456. This implies that 45.6% of organizational performance is explained by

retirement benefits. The respondents agreed that the retirement benefits encourage the

retention of young employees and encourages the old to retire. This is in tandem with the

study by Zirra (2019) who stated that the old retire since their financial security is

guaranteed upon retirement if benefits are provided. The respondents indicated that the

retirement benefits are not explained to them in a clear manner. The respondents

indicated that the staff who are employed on contract terms indicated that their gratuity

delays and at most of the instances there are no clear reasons as to why the gratuity

delays. The respondents indicated that the availability of retirement benefits acts as a

53
motivation for them to be productive which in turn contributes to the performance of the

county government.

Table 4.6.3 Anova for Retirement Benefits (X1) and Organizational Performance (Y)

Model Sum of Squares df Mean Square F Sig.

1 Regression 0.860 1 30.312 135.563 .000b

Residual 251.40 276 .242

Total 252.26 277

a. Dependent Variable: Y, b. Predictors: (Constant), X1

Source: Research Data (2022)

The ANOVA was used to show the significance of the model. The p-value is less than

0.05, then X1 had a significant explanatory power on Y (F=135. 563 and p-value <0.05).

This is as shown in table 14

4.6.2.2 Medical Cover and Organizational Performance

Table 4.6.4: Model summary for Medical Cover and Organizational performance

Std. Error of the

Model R R Square Adjusted R Square Estimate

1 .729a .532 .712 .953

a. Predictors: (Constant), X2)

Source: Research Data (2022)

54
The second objective is to determine the influence of medical insurance on organizational

performance.

The table 15 shows that the coefficient of determination as indicated by adjusted R

squared is 0.712. This implies that 71.2% of the organizational performance is explained

by availability of medical cover. The respondents indicated that the health of employees

is a key factor in ensuring that their productivity is not affected. This is in tandem with a

research done by Demirbag (2004) which concluded that employees who are given

medical cover tend to increase their productivity since the uncertainties related to medical

emergencies are taken care of. This boosts the motivation of the employees and increases

their loyalty to the organization, increases productivity and output which consequently

enhances organizational performance. The respondents agreed that they would change

their organization to an organization with better medical cover. These findings concur

with the Maslow’s hierarchy needs theory which indicates that when the primary needs of

an individual are met, they tend towards self-actualization.

Table 4.6.5: ANOVA for Medical cover (X2) and Organizational Performance (Y)

df SS MS F Significance F

Regression 1 1.343763 34.378 147.808 0.00b

Residual 276 250.919 0.909127

Total 277 252.2628

Dependent Variable: Y, b. Predictors: (Constant, X2)

Source: Research Data (2022)

55
The ANOVA was used to show the significance of the model. The p-value is less than

0.05, then X2 had a significant explanatory power on Y (F=147. 808 and p-value <0.05).

This is as shown in table 16.

4.6.2.3 Staff Allowances and Organizational Performance

Table 4.6.6: Model summary for staff allowance and organizational performance

Std. Error of the

Model R R Square Adjusted R Square Estimate

1 .578a .333 .359 .956

a. Predictors: (Constant, X3)

Source: Research Data (2022)

The third objective was to assess the influence of staff allowances on the organizational

performance.

The table 17 below shows that the coefficient of determination as indicated by adjusted R

squared is 0.359. This implies that 35.9% of the organizational performance is explained

by availability of staff allowances. These findings are in tandem with the study by Pan

(2015) which indicated that the employees who received additional allowances led to

increased productivity. The respondents indicated that the delay of the allowances

demotivate them and consequently affect their productivity. The respondents stated that

an increase in salary would better motivate them as compared to the provision of

allowances which delay or end up not being paid due to budget constraints.
56
Table 4.6.7 ANOVA for Staff Allowance (X3 ) and Organizational Performance (Y)

df SS MS F Significance F

Regression 1 0.008413 48. 413 9.205 0.00b

Residual 276 252.2544 0.913965

Total 277 252.2628

Dependent Variable: Y, b. Predictors: (Constant), X3)

Source: Research Data (2022)

The ANOVA was used to show the significance of the model. The p-value is less than

0.05, then X3 had a significant explanatory power on Y (F=9. 205 and p-value <0.05).

This is as shown in table 18 below

4.6.3 Multiple Linear Regression

The research model was Y = β0 + β1X1 + β2 X2 + β3 X3 + ε where, Y is organizational

performance, X1 is retirement benefits, X2 is medical insurance, X3 is staff allowances

and ε is the error term.

4.6.4 Aggregated Research model

The model summary in table 19 below shows the coefficient of determination as

indicated by adjusted R squared 0.453. This implies that 45.3% of the organizational

performance is explained by availability of retirement benefits, medical insurance and

staff allowances.

57
Table 4.6.8 Overall model summary

Std. Error of the

Model R R Square Adjusted R Square Estimate

1 .796a .635 .453 .5649

a. Predictors: (Constant, X3, X1, X2)

The table 19 shows that the overall model is significant since the p value is less than 0.05.

(F = 35.062 and p value <0.05).

Table 4.6.9: Overall ANOVA table

df SS MS F Significance F
Regression 3 1.602182 5.34061 58.3788 0.00b
Residual 274 250.6606 0.91482
Total 277 252.2628
Dependent Variable: Y, b. Predictors: (Constant), X3, X1, X2)

Source: Research Data (2022)

Table 4.6.10: Table of Coefficients

Unstandardized Coefficients Standardized Coefficients

t Sig.
B Std. Error Beta
(Constant) 1.765 0.245 6.324 0.000
X1 0.654 0.073 0.549 9.067 0.000
X2 0.432 0.056 0.057 0.784 0.000
X3 0.056 0.066 0.06 0.899 0.000
a. Dependent Variable: Y)
Source: Research Data (2022)

58
The multiple regression model is Y = 1.765 + 0.654X1 + 0.432 X2 + 0.056X3 + ε. The

results imply that there is a significant influence of the retirement benefits, medical

insurance and staff allowances on organizational performance since the p values are less

than 0.05. This implies that holding all other variables constant, the organizational

performance is at 1.765. A unit increase in retirement benefits increases the

organizational performance by 0.654 units. This is in line with a study by Robles (2018)

found out that despite retirement policies being a push factor for unemployment of old

aged workers, they are also a pull factor. The pension benefits pull old aged workers out

of employment way before the retirement period. The availability of retirement benefits

contributes to the pull factor of retirement. Employee benefits should include pension

schemes for employees as they offer financial security after retirement. These retirement

benefits tend to attract and retain the highly qualified employees.

A unit increase in medical cover increases organizational performance by 0.432 units.

This is in line with a study Jaekwon Ko (2013) showed that companies are concerned

with the wellbeing of employees and hence they create health security for their workforce

and thriving benefits programs. Companies allow their workers sick offs without losing

their pay. Employers’ encourage employees to pile up unused sick off in a year and use

them when they get sick. The findings of the study indicate that some companies pay

workers the unused sick off days. The health issues of employees are diverse and some

are unavoidable and they all in a way influence organizational operation and individual

employee productivity.

59
A unit change in staff allowances increases the organizational performance by 0.56 units.

This is in line with a study by Millan (2013) on the impact of employee satisfaction on

performance, concluded that the efforts aimed at increasing satisfaction of employees

through provision of allowances should be based on demographic characteristics such as

age and gender. The findings indicate that satisfied employees perform better and that

employee satisfaction and organizational performance are directly and indirectly related.

The study concluded that low satisfaction leads to absenteeism, resignations and job

separation. Employers have found allowances are highly desired by employees.

Out of the 284 respondents, 65.8% agreed that there is notable improvement in the

efficiency and effectiveness of service delivery. Fifty-nine point five percent of the

respondents agreed that there is improved performance in the delivery of services by the

government. Out of the 284 respondents, 62.7% agreed that the quality of services in the

government has improved. This implies that the performance of the county government is

good and can be attributed to the staff welfare components.

60
 CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMEDATIONS

5.1 Introduction

This section gives summary of findings on the specific variables under study. It also

gives recommendations to the county governments on matters staff welfare and

organizational performance. The recommendations are also given to the academia and

research on areas of further study.

5.2 Summary of Findings

5.2.1 Retirement benefits and organizational performance

The study findings indicated that 61.6% of the respondents agreed that pensions

encourage young people to work and older people to retire while 38.4% disagreed. The

respondents (68.4%) agreed that retirement benefits influence the rate of employee

turnover. Majority of the respondents (81.1%) agreed that retirement benefits attract

better skilled employees. Majority of the respondents 81.8% agreed that Retirement

benefits boosts employee motivation and encourages productivity. Majority of the

respondents 75.4% agreed that Retirement benefits offered increase the loyalty of

employees reducing shirking. The study findings indicate that 45.6% of the

organizational performance in Makueni County is influenced by availability of retirement

benefits. The respondents indicated that the challenges faced in the retirement benefit

component of staff welfare include; delays in the payment of gratuity for the contractual

staff, non- responsiveness of the HR directorate on the issues facing staff on retirement

benefits, inadequate capacity building on the available schemes, limited choice of the
61
pension schemes and lack of retirement preparedness training to staff upon entry into the

jobs.

5.2.2 Medical cover and organizational performance

Majority of the respondents (95.4%) agreed that availability of medical insurance boosts

their productivity. The respondents felt that there are no enough measures and policies to

ensure the safety and medical insurance is guaranteed. Majority of the respondents 95.1%

agreed that the health of employees is essential for their productivity. Out of the 284

respondents, 84.8% of the respondents agreed that sickness and accidents related to work

take a toll on employees. 91.9% of the respondents agreed that the availability of medical

insurance increases my motivation and satisfaction. Only 54.2% agreed that they would

leave their current work for an organization that has better terms. The coefficient of

determination indicated that 71.2% of the organizational performance in Makueni County

is explained by availability of medical cover.

5.2.3 Staff allowance and organizational performance

Majority of the respondents (83.3%) agreed that provision of allowances motivates

employees to work and give the best for the organization. Out of the 284 respondents,

81% agreed that staff allowances leads to high retention of employees in the work place.

Majority of the respondents 87.4% agreed that staff allowances increases employee

satisfaction. Eighty percent of the respondents agreed that payment of staff allowances

increases the employee productivity. The findings indicate that 35.9% of organizational

performance in Makueni County is explained by availability of staff allowances.

62
5.2.4 Perceptions of staff on the staff welfare components

On retirement benefits the respondents highlighted the following: the retirement schemes

are not clearly known to the employees of the county government of Makueni; Well run

or well managed pension schemes attract higher value proposition to the employee hence

increasing higher productivity; gratuity offered to contractual staff gives them a reason to

safeguard my benefits by ensuring I work to deliver and; most people know little about

pension schemes and therefore not much motivated by pension schemes. On medical

insurance staff indicated that there are discrepancies in the medical cover packages for

the devolved staff and the staff employed by the county government. The respondents

indicated that this demotivates them. The medical insurance packages are not flexible and

this makes the staff pay cash for some medical cases. On staff allowances, the lower

carder of staff indicated unfairness in the payment of staff allowances which demotivates

them. The findings indicated that there are delays in the payment of the allowances which

demotivates the staff and makes them less productive since they are not facilitated to

undertake the assignment.

5.3 Conclusion

This study concludes that employee welfare components are a key factor in ensuring that

employees are motivated hence increasing individual employee productivity and

consequently the organizational performance. The study concludes that the three

components of staff welfare i.e. retirement benefits, medical cover and staff allowances

have a significant influence on organizational performance.

63
On retirement benefits, the study concludes that the availability of retirement benefits

gives older employees motivation to exit public service when their retirement age is

attained. This is because their future is secured by the benefits they accrue upon exiting

public service. This creates room for young employees who are energetic and able to

offer maximum service delivery improving the organizational performance. The study

concludes that the availability of retirement benefits helps retain the seasoned and

experienced employees hence maximizing on their potential and institutional memory in

service delivery which contributes positively to organizational performance.

On medical cover the study concluded that the availability of medical cover has a strong

positive correlation with organizational performance. The assurance of health cover for

the employees and their next of kin greatly motivates the employees to offer the best in

service delivery. The study concludes that treating employees fairly on access to medical

cover reduces staff discrimination and disparity which increases team work and

consequently employee performance which translates to organizational performance.

On staff allowances the study concludes that they greatly motivate staff to deliver their

mandate hence positively influencing organizational performance. The timely payment of

daily subsistence allowance to employees motivates them to undertake extra assignments

outside their normal job description and this contributes to the performance of the

organization. The provision of extraneous allowances and overtime allowances motivates

the staff to work past the normal working hours to achieve the organizational targets

which contribute to organizational performance. The study concludes that unfair and

64
unequitable payment of staff allowance demotivates staff and hampers service delivery

which negatively affect the organizational performance.

5.4 Recommendations

The study recommends that the there is need for the County Government of Makueni to

develop a policy on medical insurance which meets all the needs of the staff and ensures

equity for all staff. The existing policy to be reviewed with input from staff to ensure that

staff are satisfied and motivated which will in turn contribute to the organizational

performance. The county government to check on the payment of allowances to ensure

fairness and prompt payment of the allowances. The county to streamline the process and

put measures to ensure that staff are well facilitated to undertake assignment and that all

cadres of staff are facilitated without discrimination. The county government to sensitize

staff on the available retirement packages and undertake reviews of the existing schemes

to ensure they serve the interests of the staff.

The researcher also recommends that research on other components of staff welfare to be

done to determine the impact of them on organizational performance.

5.5 Suggestion for Further Research

Further study can be undertaken to determine how the staff welfare components

researched affect employee satisfaction in County Government of Makueni.

65
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 APPENDICES

Appendix 1: Introduction Letter

Dear Respondent,

I am a postgraduate student in the school of Business and Administration, pursuing a

Master’s degree in Public policy and Administration. One of the requirements to the

award of the degree would be to write a dissertation in my area of specialization. I am

carrying out a research study on Effect of employee welfare on organizational

performance a case study of Makueni County.

I kindly request you to take your time and fill this questionnaire to aid in achieving the

purpose of the study. Confidentiality and privacy is guaranteed. The information given

will be used for the purpose of this study alone and will not be shared without consent of

the respondents.

Thank you.

Evelyne Mueni Muema

73
Appendix 2: Questionnaire

This study is carried out to determine the effects of employee welfare programs on

performance. Confidentiality will be maintained. I therefore request you to fill in the

questionnaire.

SECTION A: DEMOGRAPHIC INFORMATION

1. What is your gender Male Female

2. What is your Station?

HQ

Field

3. What Department/Unit are you working?

Department Tick (√)

1. Agriculture

2. CPSB

3. Devolution

4. Education

5. Finance

6. Gender

7. Health

74
8. Lands

9. Office of the Governor

10. Roads

11. Trade

12. Water

13. Sand Authority

14. WOWASCO

15. KIMAWASCO

16. Makueni Fruit Processing Plant

17. SDU

18. Other - Indicate

3. How long have you served in government of Makueni county?

Length of stay in years Tick (√)

1. Less than a year

2. 1-2 years

3. 2-5 Years

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4. Over 5 years

4. Terms of engagement

a) Permanent and Pensionable

b) Contractual

c) Casual

5. Marital Status

Single

Married

Divorced

Windowed

6. Please indicate your highest level of education

Highest level of education Tick (√)

1. Secondary

2. Certificate

3. Diploma

4. Bachelor’s degree

5. Master’s degree

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6. PhD

7. Others(specify)

7. Kindly tick the appropriate age bracket.

Age in years Tick (√)

1. 18 – 35

2. 35 – 45

3. 45 – 55

4. Above 55

9. Level of seniority

Level of seniority Tick (√)

1. Senior management (ECM, CO, Director)

2. Middle management (Supervisory roles)

3. Technical staff

4. Support staff

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SECTION B: RETIREMENT BENEFITS

a) Availability of retirement benefits affect my productivity?

Yes [] No []

b) Rate the extent to which retirement benefits affect your productivity?

Very large [] Large [] Moderate [] Low [] Very Low []

c) I would leave the organization to another organization with better retirement

benefits Yes [] No []

Kindly rate in a scale of 1 to 5 (where 5= strongly agree, 4= agree, 3= neutral, 2=

disagree, 1=strongly disagree)

Statement 5 4 3 2 4

Pensions influence the behavior of employees. young people are

encouraged to work and older people to retire

Retirement benefits influence the rate of employee turnover

Retirement benefits attracts better skilled employees

Retirement benefits boosts employee motivation and encourages

productivity

Retirement benefits offered increase the loyalty of employees

reducing shirking.

78
What are your perceptions on the pension schemes available and how do they affect

your productivity?

SECTION C: MEDICAL INSURANCE

d) Provision of medical insurance boosts my productivity?

Yes [] No []

e) Rate the extent to which medical insurance boosts your motivation and

productivity.

Very large [] Large [] Moderate [] Low [] Very Low []

f) There are measures and policies to ensure that safety and medical insurance is

guaranteed

Yes [] No []

Kindly rate in a scale of 1 to 5 (where 5= strongly agree, 4= agree, 3= neutral, 2=

disagree, 1=strongly disagree)

Statement 5 4 3 2 1

The health of employees is essential for their productivity

Sickness and accidents related to work take a toll on employees

The availability of medical insurance increases my motivation

and satisfaction

79
I would leave my current work to an organization with better

medical insurance packges

What challenges do you face in accessing services under staff medical cover?

………………………………………………………………………………………………

………………………………………………………………………………………………

……………………………………………………………………………………………..

What recommendations can you give towards improving the staff medical cover?

………………………………………………………………………………………………

………………………………………………………………………………………………

……………………………………………………………………………………………..

SECTION D: STAFF ALLOWANCES

Kindly rate in a scale of 1 to 5 (where 5= strongly agree, 4= agree, 3= neutral, 2=

disagree, 1=strongly disagree)

Statement 5 4 3 2 1

Provision of allowances motivates employees to work and give

the best for the organization

Staff allowances leads to high retention of employees in the work

place

Staff allowances increases employee satisfaction

80
Payment of staff allowances increases the employee productivity

What challenges do you face when accessing staff allowances?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

SECTION F: ORGANIZATIONAL PEFORMANCE

Kindly rate in a scale of 1 to 5 (where 5= strongly agree, 4= agree, 3= neutral, 2=

disagree, 1=strongly disagree)

Statement 5 4 3 2 1

There is notable improvement in the efficiency and effectiveness

of service delivery

There is improved performance in the delivery of services by

government

The quality of services offered by government has improved

There is increased accountability and transparency in the

operations of government

The government is able to effectively meet its objectives and

81
mandate

There is seamless alignment of government functions with its

strategic objectives

The government is able to obtain, allocate and utilize resources

effectively

82
 Appendix 3: Work Plan

Activities
Jan Feb Mar Apr May Jun Jul Au Sep Oct
STAR END DESCRIPTIO
Chapter
JanT2022 DAT
Jan2022 N
one
DATE E Entire
Feb 2022 Feb 2022
proposal
Proposal
document
March March202 Defense

2022 2 and

approval

to
Data
April continue
collection,
May 2022
2022 with data
Data

collection
analysis
Input of
and
June 2022 June 2022
correction,
defense of
printing of
project
final

document

and

submissio

83
Appendix 4: Budget

NO ITEM BUDGET

1. Data collection, collation and analysis

 Printing of questionnaires For field KSH. 2000

study
KSH. 2000
 Traveling cost (to conduct the survey)
KSH. 6000
 Data entry clerks

2.  Publishing of final report KSH. 10,000

 Final draft Printing,

KSH. 2500
 Miscellaneous
KSH. 2500

3. Total Budget KSH. 25,000

84
Appendix 5: Makueni County Map

85