Effect of Reward on Employee Performance: A Case of Kenya Power and Lighting Company Ltd., Nakuru, Kenya

  •  Lilly Njanja    
  •  R. Maina    
  •  L. Kibet    
  •  Kageni Njagi    


Today’s organizations are operating in a very dynamic and highly competitive environment. To remain relevant inthe market, they have to be able to respond quickly to ever changing customer demands. Reward management isone of the ways used by organizations for attracting and retaining suitable employees as well as facilitating themto improve their performance. KPLC is an organization that offers essential energy services that support othersectors of the economy. The management has established rewards in their organization in pursuit of increasingemployee performance so as to ensure prompt and quality service. However, the extent to which the rewardsadopted at KPLC have influenced employee performance is not established. This study therefore aimed atdetermining the effect of reward on employee performance at KPLC. Specifically the study sought to determinethe effect of cash bonus on employee performance. The research adopted correlation research design. 68management employees responded. Data was collected using questionnaires. Descriptive statistics (frequencytables, percentages) were used to present data. Inferential statistics (chi-square) was used to analyze therelationship between cash bonuses and employee performance. Data was analyzed with the help of the StatisticalPackage for Social Sciences (SPSS) computer programme. The findingsof the study showed that cash bonus haveno effect on employee performance (p=0.8). This is because those who received cash bonuses and those who didnot all agree that the cash bonus affects their performance the same. The organization should focus on changingthe intrinsic nature and content of jobs. This will increase employee motivation as employees will get moreautonomy more challenging job assignments and responsibilities. Further research can be done to find out impactof other rewards on performance e.g. owning equity. Research can also be done to identify other factors whichmay affect performance. Such findings can enhance management of performance.

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