Influence of Remuneration on Performance of Referral Hospital in Busia County, Kenya

Abstract

Employees in both public and private sector organization are becoming increasingly aware that motivations increases productivity. This study investigated influence of employee motivation on Organizational performance. The specific objective of the study was to establish the influence of remuneration on organization performance in Busia Referral Hospital. The target population comprised of all the permanent employees in Busia County Referral Hospital with a total of 150 employees from various departments. Seven heads of department were selected. Simple random sampling technique was used to draw a sample size of 108 respondents. Both primary and secondary data were collected by use of open and close ended questionnaires and interview schedule was developed to collect qualitative data from head of departments. The study employed correlational research design. Discussions, conclusions and recommendations were drawn from the study findings. Karl Pearson‟s coefficient of correlation was used to establish the relationships between the variables of the study and the results show that the correlation coefficient between remuneration and organizational performance was found to be r=0.687. The result was found to be in agreement with the fact that employee remuneration has a positive influence on organizational performance which has been also reported by other research studies. The study will assist the management to identify the motivating factors which will help them to retain employees within the organization and thus discouraging labour turn over that may create expenses to the organization.