The Effect of Reward Management on Employees Commitment in the Universities in Nakuru County-Kenya

Abstract

The aim of this study is to examine the effect of financial and non-financial rewards on organisational commitment of employees in Universities in Nakuru County. The specific objectives of the study were as follows: to determine the effect of financial reward on normative commitment of employees in universities in Nakuru County; to determine the effect of financial rewards on affective commitment of employees in universities in Nakuru County; to establish the effect of financial rewards on continuance commitment of employees in universities in Nakuru County; and finally, to determine the combined effect of rewards management on employees organisational commitment in universities in Nakuru County. The sample size of the study comprised 224 full-time lecturers working in 10 universities within Nakuru County. Data was collected using the questionnaire method. The data obtained was processed using the Statistical Package for Social Sciences (SPSS) and was analysed using both descriptive and inferential statistics. The analysed data was presented using graphs, charts and tables. Results indicated that there was a moderate significant positive relationship between financial rewards and affective commitment (r = 0.344, p < 0.000) and a weak significant positive relationship between financial rewards and normative commitment (r = 0.249, p < 0.008). The study found that financial reward management practices collectively have significant effect on organizational commitment. The study recommended that universities in Nakuru County should carry out salaries reviews in order to develop a reward management structure that is externally competitive, internally fair and consistent with the current acceptable international rates. It was also recommended that the top management in the Universities should encourage employees' to participate in decision making and they should implement employee decision.