Effect of Salary Schemes On Employee Productivity A Case Study of Sony Sugar Company of Rongo District, Nyanza Province

TABLE OF CONTENTS

PAGE

DECLARATION .......................................................................................... i

ACKNOWLEDGEMENT .................................................................. ............ ii

DEDICATION .................................................................... : ...... : ................ iii

TABLE OF

CONTENTS .............................................................................................. iv

LIST OF

TABLES ........................................................................... ......................... vii

LIST OF

FIGURES ................................................................................................. viii

ABBREVIATIONS AND ACRONYMS ............................................................. ix

ABSTRACT ................................................................................................. x

CHAPTER ONE ........... : ............................................................................................................... 1

INTRODUCTION .......................................................................................................................... 1

BACKGROUND TO THE STUDY ............................................................................................... I

COMP ANY BACKGROUND ....................................................................................................... 2

STATEMENT OF THE PROBLEM .............................................................................................. 5

RESEARCH OBJECTIVES ........................................................................................................... 6

RESEARCH QUESTIONS ............................................................................................................ 7

RESEARCH HYPOTHESIS .......................................................................................................... 8

SIGNIFICA.NCE OF THE STUDY ............................................................................................... 9

THE SCOPE AND LIMITATIONS OF THE STUDY ............................................................... 10

V

CHAPTER TWO ........................................................................................................................ 11

LITERATURE REVIEW ............................................................................................................. 11

INTRODUCTION ........................................................................................................................ 11

CONCEPTUAL DEBATE ........................................................................................................... I I

SALARY SCHEME .......................................................................... "'····················· .................... 11

THEORETICAL FRAMEWORK ..................................................... : ......... : ................................ 13

EMPIRICAL DEBATE ................................................................................................................ 17

SALARY SCHEME ..................................................................................................................... 17

ANNUALIZED SALARY SCHEME .......................................................................................... 17

PENSION SCHEME .................................................................................................................... 17

CAREER DEVELOPMENT PROGRAMMES ........................................................................... 18

FRIDGE BENEFIT ...................................................................................................................... 18

THE CONCEPTUAL FRAMEWORK ........................................................................................ 18

CHAPTER THREE .................................................................................................................... 20

RESEARCH METHODOLOGY .........•....•..............••.................•................•.............................•. 20

INTRODUCTION ........................................................................................................................ 20

RESEARCH DESIGN .................................................................................................................. 20

TARGET POPULATION ............................................................................................................ 20

SAMPLING DESIGN AND PROCEDURE ................................................................................ 21

DATA COLLECTION INSTRUMENT AND METHODS ........................................................ 21

DATA ANALYSIS TECHNIQUES AND PRESENTATION METHOD .................................. 22

CHAPTER FOUR ...................................................................................................................... 23

DATA ANALYSIS AND INTERPRETATION .......................................................................... 23

INTRODUC"l'ION ........................................................................................................................ 23

vi

BACKGROUND INFORMATION ............................................................................................. 23

SALARY SCHEME ..................................................................................................................... 27

CHAPTER FIVE ........................................................................................................................ 3 6

SUMMARY AND CONCLUSION ............................................................................................. 36

ANALYSIS FROM HUMAN RESOURCE DEPARTMENT ......... .-......................................... 37

CONCLUSION ............................................................................................................................ 40

RECOMMENDATIONS .............................................................................................................. 40

REFERENCE .............................................................................................................................. 44

APPENDIX I ............................................................................................................................... 46

APPENDIX II ............................................................................................................................. 47

APPENDIX III ........................................................................ ............................ 50

APPENDIX IV: Duration of the study ...................................................................... 53

APPENDIX V: Estimated Budget for the dissertation ............................................. 54

ABSTRACT The topic of studying this research was the effect of welfare schemes on employee productivity in Sony Sugar Company of Kenya. This was born out of the fact that welfare schemes are meant to improve employee productivity thus organization productivity. The objectives in this study included to establish the effect of salary schemes on the perfonnance and motivational level of the employees in the company, to identify the indicators of good employees productivity, to establish how career development oppo1tuniti~s act as int1insic salary schemes to employees. A review of literature was done, this was based on the variables identified which included the review based on previous studies canied out in the area of the finding where majority of the respondents felt that competition affected the growth of salary schemes of the Sony Sugar company as well as majority of welfare schemes of employees' production for organization dealing with business in Kenya. Employees see themselves as performancers where efficiency and effectiveness is concerned and they are mostly affected by welfare schemes practiced in the company.