Factors affecting employee motivation at the work place: a case of Kenya bankers Sacco society ltd.

A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to determine the factors that affect employee motivation and performance at Kenya Bankers Sacco Society (KBSS). The study aimed at determining if reward, achievement and recognition, and, performance appraisal and feedback are effective employee motivators as currently used at KBSS. This was a case study on Kenya Bankers Sacco which adopted a descriptive research design and a cross-sectional analysis. In general, a case study focuses on one organization that is selected from the total population of several organizations from a similar industry. Saccos in Kenya have increased in number over the years and consist of a great network with a large number of employees and a census would therefore not be appropriate. The study involved collection of primary data from a sample of 35 employees from various departments of Kenya Bankers Sacco at the headquarters. The probability sampling technique of stratified sampling was used in the study using questionnaires to collect the primary data. The questions were presented in the form of statements on a 1-5 Likert scale. The data preparation from the filled-in questionnaires was done through editing, coding, transcribing and cleaning. The descriptive data was then analysed using Microsoft Excel and Statistical Package for Social Scientist (SPSS). A Chi-Square Test was conducted to find out which responses were significant based on levels of agreement in regard to the various objectives. Finally, the analyzed data was presented through tables and figures. The study findings revealed that employees at KBSS greatly value motivation at their work place and majority agreed that reward is one way of motivating and hence enhancing their general performance. The respondents agreed that a good salary and compensation package, and a yearly bonus would greatly motivate them in addition to other non-monetary rewards such as gift vouchers and paid vacations for them and their nuclear families. In regard to achievement and recognition as motivating factors, the researcher found out that a very high percentage of respondents greatly value these motivators and especially when done publicly or in the presence of their colleagues. Finally, in regard to performance appraisals and feedback, findings showed that of the total respondents, majority agreed that receiving timely feedback on their performance appraisals would greatly motivate them with those that have had this experience saying that this has motivated and improved their work performance since they were able to identify their strengths and weaknesses. However, several of the respondents raised concern that they did not receive timely feedback on their appraisals and that the same were not used for promotion as expected. This study therefore concluded that reward, achievement and recognition, and, performance appraisal and feedback have a great influence on employee motivation and consequent performance at the work place. In regard to reward and employee motivation, the study concluded that other than money, the employees also value other rewards such as gift vouchers and paid for vacations as motivators. Regarding achievement and recognition as motivators, the study concluded that achievement alone is not enough and employees value the consequent recognition and more so in the presence of their colleagues. Furthermore, the study concluded that employees value appraisals and feedback which should be done using a formal appraisal and feedback system especially when done consistently as this gives them a chance to also interact with their managers. This study therefore recommended that KBSS should revisit the reward system that is currently in place by revising the grades that determine salaries in an endeavour to bridge the gap between the different salaries. The organization should also reward employees with other non-monetary rewards such as yearly gift vouchers and paid vacations as a way of appreciating and motivating the employees. Regarding achievement and recognition, the study recommends that KBSS changes the current way of doing this to an appropriate employee recognition system or program that can be adopted and consistently used across the board. In regard to performance appraisals and feedback, the study recommends that the organization adapts a system that can be used for this purpose such as a strategy-based performance management system that will ensure fairness and transparency of the process. It is recommended that both managers and employees be trained on any one such system for ease of understanding and transparency. The managers should also be trained on how to use objective based performance measures for accuracy on the appraisals. Timely feedback should thereafter be availed to all appraised employees through an interactive session with the manager and the same should consequently be used for employee promotion when the opportunity arises