The Perceived Relationship Between Reward Management Practices and Employee Performance at the Kenya Post Office Savings Bank

Abstract

Reward management practices have a direct relationship with employee performance as depicted by the expectancy and instrumentality theories. Postbank of Kenya is one of the oldest banks in Kenya and its growth has been stagnating despite of the competing banks growing year in year out, this, informed this study to find out whether employees rewards is part of the problem. The objective of the study was thus to determine the relationship between reward management practices and employee performance at the Kenya Post Office Savings Bank (Postbank). The study used a descriptive survey design; it targeted all the employees of Postbank head office. The study used primary data which was collected using structured questionnaires administered using the drop and pick method and some cases email. The study found out the Postbank selectively implemented reward management practices which subsequently led to poor performance amongst the employees. A recommendation was thus made to the bank to change their reward policies in order to align the reward management practices and to combine various strategies that would optimize employee performance with emphasis of the proportion to which each strategy is to be used as well as k study to explore the modalities of applying job/grade structure in the bank.