Influence of Recognition Schemes on Employee Performance in Large Commercial Banks in Nairobi City County in Kenya

Abstract

Recognizing excellent performance openly builds motivation within the entire organization. It is acknowledged that employee recognition has contagious effects. When an employee witnesses others being rewarded for good performance, it becomes a chain reaction. The study sought to determine the effect of recognition schemes on employee performance. Cognitive Evaluation Theory on Recognition Schemes was used to inform the study. The study adopted a descriptive research design. Descriptive statistics was chosen since it utilizes data collection and analysis techniques that yield reports concerning the measures of central tendency, variation, and correlation. The combination of its characteristic summary and correlation statistics, along with its focus on specific types of research questions, methods, and outcomes necessitated the choice of this design. The study adopted a positivism philosophy. The target population was 22,856 employees working in the six selected Commercial Banks in Nairobi City County composed of both clericals and Management staff. Krejcie and Morgan sample size determination table was used to derive a sample of 377 respondents. Primary data was collected using structured questionnaires that had both close ended and open-ended questionnaires. Quantitative data were analyzed using SPSS. The study conducted various tests including normality test, multicollinearity, stationarity, heteroscedasticity and autocorrelation tests. Factor analysis was carried out among corresponding questions to allow formation of factors with the highest Eigen values. Test of hypothesis was done at 95% confidence interval. The study established a positive and significant relationship between recognition schemes and employee performance (r=0.666, p=0.000), the alternate hypotheses was not rejected. Based on the findings, the study concluded that recognition has a positive and significant effect on employee performance. The researcher recommends that management Commercial Banks should embrace recognition schemes as recognition schemes develops a strongly enthusiastic team and critical source of inspiration for others. Continuous recognition of exemplary employee creates a culture of recognition tied to accomplishment and employee growth. To grow and nurture culture of recognition clear criteria for recognizing employee is required. Recognition creates a deep-rooted and long-term ownership among the employees for the organization.