Effects of extrinsic employee motivation on Revenue Performance at Kenya Revenue Authority, Southern Region

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Date

2019

Authors

Mwangima, Mkutah Joseph

Journal Title

Journal ISSN

Volume Title

Publisher

KESRA/JKUAT - Unpublished research project

Abstract

The performance of Kenya Revenue Authority can only be determined by how many times it continuously hits the targets set by the national government through the budget. Unfortunately, KRA has missed its revenue collection targets in successive years. The human capital of an organization is the main determinant of whether the organization succeeds in its objectives. There are few studies that have focused on employee motivation within KRA. Moreover, the studies have failed to link motivation levels and revenue performance. Subsequently, the current study targets to fill the prevailing gap by exploring the influence of extrinsic employee motivation on revenue performance within KRA, Southern region. The specific objectives guiding the study are: To assess the impact of economic rewards on the revenue performance of KRA, Southern region, to determine the effect of organizational commitment on revenue performance at KRA, Southern region, to establish the effect of employee training on revenue performance at Kenya Revenue Authority, Southern region. The three theories guiding the study to reach its objectives are Hertzberg’s two factor theory, Equity theory, and Expectancy theory of motivation. The study adopted a case study research design because the area to be studied is known. Data collection was undertaken using questionnaires. Moreover, stratified random-sampling technique aids in coming up with a representative sample. The two main strata for data collection purposes are the management level and non-management level. Data was coded and further analyzed using descriptive and inferential statistics. Subsequently SPSS v25 was used for the data analysis. The reliability of the questionnaire was put to test using the Cronbach alpha and it was established that all variables are acceptable. A total of 300 respondents were targeted with 198 filling the questionnaires. Descriptive statistic parameters mean and standard deviation were used to measure the acceptance of statements in the questionnaire. Following the analysis, it was established that the three predictor variables economic rewards, organizational commitment and employee training have a positive correlation with revenue performance. The multiple regressions statistic was used for analysis and it was established that Economic rewards affect the Revenue performance of KRA (β1=0.479). On the other hand, Organizational Commitment has a positive impact on Revenue performance (β2=0.440). Furthermore, Employee training has mild positive effect on Revenue performance (β3=0.311). The researcher recommends that compensation and reward systems to feature prominently in human resource practices. KRA should also assess employee commitment and enhance training programs

Description

PROJ 336.16 MWA

Keywords

Employee performance, Extrinsic factors, Revenue Performance, Econimic rewards

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