Employee perception of performance based pay practices in Kenya Forest Service

Abstract

Understanding employee perception of performance based pay practice is vital because the organization will reinforce those factors to improve performance. State Corporations and private companies play key role in the economy; however adequate attention has not been focused on understanding employee perception of performance based pay practice. The main objective of this study was to determine employee perception of performance based pay practice in Kenya Forest Service. The study used descriptive survey design. The population comprised of the 4200 employees of Kenya Forest Service. This study used 10% of the population as the sample size which resulted to 420 from the population of 4200. Stratified random sampling technique was used to select the sample units. Primary data was collected using semi structured questionnaire. Descriptive statistics such as mean, mode, median, and frequencies were used to analyze the data. The study conclude that there are various performance based pay practices that are used in Kenya Forest Service. It’s recommended that Kenya Forest Service be more innovative in selecting the performance based pay practices aimed at increasing employee satisfaction. Kenya Forest Service needs to initiate administrative support and financial incentives to induce its employees to adopt such performance based pay systems. There is need to establish an effective performance based pay system linking remuneration to productivity and performance. The study recommends that further research should be done to compare employee perception of performance based pay practices in State owned organizations and privately owned organizations to allow for generalizations. A similar study should be done on multinational organizations resident in Kenya. This will allow for a global view of employee perception of performance based pay practices across borders.