Reward and Compensation Management Initiatives on Employee Performance: An Evidence of Organization Development Initiatives

Abstract

Organisational development (OD) interventions are structured programs designed to solve a problem, which enables the organisation to attain its goals which are critical in an age where organisation performance and return on investors is important. Employee performance is how employees fulfil their duties and complete the tasks assigned at the workplace on time. Increased employee performance translates to higher output hence higher returns to factors of production. It is on this note the paper aims to determine the relationship between reward and compensation management and employee performance in not-for-profit organisations in Kenya using a case of select organisations within the South Rift region. The study adopted a quantitative research design where a target population of 500 respondents was used. The findings indicated that reward and compensation initiatives had a significant positive relationship with employee performance (β = 0.395; p = 0.000<0.05). The study recommends that there is a need for organisations to have proper rewards and compensation in place to enhance employee performance. More emphasis should be directed to reward and compensation because it is the main contributors to employee performance.