Performance Measurement Practices and Employee Productivity in the Insurance Firms in Kenya

Abstract

This study sought to shed light on the performance measurement practices practiced by insurance firms in Kenya, to establish the level of employee productivity in these firms and if there is a relationship between performance measurement practices on employee productivity in Kenya and sought to achieve three objectives. These were to “determine the extent of adoption of performance measurement practices by insurance firms in Kenya, to establish the level of employee productivity of insurance firms in Kenya and to determine relationship between performance measurement practices and employee productivity of insurance firms in Kenya.”Primary data was collected by the use of questionnaires distributed amongst 30 insurance firms in Kenya. Data collected was analysed using both descriptive and inferential statistics. SPSS (17) and Microsoft excel software packages were used to conduct the analysis. Results indicate that most insurance firms used the Balanced Scorecard performance measurement model and the strength of the relationship between employee productivity and each of the performance measurement practises reported was moderate. Current study, though with some limitations in term of response and scope of study has served the purpose of initiating researching on performance measurement in the insurance industry, which can be used as a basis for further study and benefit to the management of organizations in the service industry. The study recommended Further research can be carried out to firms in other service sectors to establish the performance measurement practices used and if they influence the productivity of the employees. This would enable managers to focus on the issues that positively influence both individual and organizational performance.