2.

2 THEORETICAL FRAMEWORK

2.2.1 Goal Theory

Goal theory as developed by Latham and Locke (2006) highlighty four mechanisms that

connect goals to performance outcomes:

1. They direct attention to priorities,

2. They stimulate effort,

3. They challenge people to bring their knowledge and skills to bear to increase their chances

of success

4. The more challenging the goal, the more people will draw on their full repertoire of skills.

This theory underpins the emphasis in performance management on setting and agreeng

objectives against which performance can be measured and managed. t 2

Goals inform individuals to achieve particular levels of performancein order for them to direct

and evaluate their actions; while performance feedback allows the individual to track how well

he or she has been doing in relation to the goal so that, if necessary, adjustments in effort,

direction or possibly task strategies can be made.

Goal theory supports the agreement of objectives, feedback and reviewaspects of perfoImance

management.

2.2.2 Control Theory

Control theory focuses attention on feedback as a means of shaping behav1our. As people

receive feedback on their behaviour they appreciate the discrepancy between what they are

doing and what they are expected to do and take corrective action to overcome it. Feedback is

recognize as a cIucial part of performance management jprocesses.

2.2.3 Social Cognitive Theory

It is based on his central concept of self-efficacy. This suggests that what people believe that

they can or cannot do powerfully impacts on their performance.

Developing and strengthening positive self-belief in employees is therefore an important

performance management objective.

2.3 Empirical Review

2.3.1 Forms of Rewards and Employee Performance

Gati &Atambo (2017) conducted a study on etfects of reward systems on employee

performance in a public organization a case of Migori county in Kenya. The study adopted

descriptive case study research design. A sample of 734 respondents selected using stratified

random sampling technique was used. The study Sought to establish whether the county

govemment use reward systems to moiivate employee in the quest to provide public services.

The findings of the study were that reward systems impacted in an organization positively and

significantly influences the performance of its employee. The study recommended that

organizations to adopt reward systems for improving employee performance. The study

focused on the effect of professional training, recognition, promotion and benefits as forms of

reward strategies on employee performance. Study was only done in Migori county thus the

findings may not be generalızed in all counties on Kenya.

Agwu (2013) did a study on impact of fair reward system on employees' job performance in

Nigerian Agip Oil Company Limited Port Harcourt. A sample of 396 respondents was selected

using stratified random sampling method for the purpose of questionnaire administration. The

result of the study indicated that implementation of fair reward system in Nigeria Agip oil

company Limited Port-Harcourt to a large extent influenced improved employees' job

performance and reduced rate of industrial action

am

Gati &Atambo (2017) and Agwu (2013) did studies on impact of reward system on employee

pertormance. They both found out that implementing fair reward system influenced improved

employee job performance. Gati Atambo (2017) did the study in a public sector but Agwu
2013) conducted his study in a private sector. This study that was done in the public sector,

was to help in finding if there was consistency in the works of Gati & Atambo and if there was

be contrast in the works of Agwu who did research in the private sector. It was however

established that reward strategies have a positive effect on the performance of publie sector

employees.

Kiprop (2017) did a study on motivational strategies for public sector workers in Kenya. The

study was aimed at developing motivational strategies for motivating public sectOr workers in

Kenya. The study was undertaken to determine the extent the public-sector managers agreed

or disagreed that the strategies identified by the study would be effective in motivating

employees in their organization. The empirical study also sought to examine the level of

motivation in the public service and identify the motivational strategies currently used in the

public service in Kenya. Based on the results of the study an integrated modelfor enhancing

motivation in the organizations was developed and the study recommended the adoption of the

model in its entirety by public service organizations in order to improve the levels of motivation

1n the organization.

Roberts (2005), in a study of the relationship between rewards, recognition and motivation of

1373 employees of an insurance company in the Westen Cape found out that there was a

positive relationship between rewards, recognition and motivation. She concluded that

organizations should review their current reward strategies in order to ensure higher employee

motivation and increased job performance. The study also revealed that women, and employees

from non-white racial background experienced low levels of rewards, recognition and

motivation, She proposed for further studies on different factors that motivate employees. The

sample size was 184 and deseriptive researeh design was adopted. A convenience sample

(operational unit) was used thereby restricting the generalizability to a wider population. The

study focused more on recognition as a form of motivation.

Shazia et al (2015) conducted a study on the impact of reward systems on emplovee motivation

and how well the current reward system was helping to generate employee motivation. The

study specifically aimed to find out the reward system that functions well and which aspect

could be further developed and improved in order to inerease employee motivation. The sample

size was 100 employees in different commerC1al banks of Pakistan. The result obtained irom

the study showed that there exited a strong relationship between rewards and employee

Wood (1974) conducted a study on the relationship between worker's attitudes, job motivation

and perfomance. The study revealed that highly involved employees who were more

intrinsically oriented towards their job and did not manifest satisfaction commensurate with -

company evaluations of performance. It was concluded that workers depend more on intrinsic

rewards as compared to those who were more extrinsic orientated. The above studies were done

in private companies providing tangible goods, however, the current study was carried in public

sector where the employees .are providing essential services to the citizens. The study was

concerned with the effect of intrinsic reward strategies on the performance of employees in the

national police service in Tranzoia County, Kenya.

Ngari (2015) did a study on the effect of in-service training on employee performance. A case

study of judiciary's lower courts in Nairobi County Kenya. The study aimed at establishing

whether induction, on-the-job training, off-job training and caree development training

influences employee productivity. The study adopted a descriptive survey design using both

qualitative: and quantitative researoh paradigms. Data was collected using questionnaire and

intervieW guides from sample of a population of 85 employees. The study found out that on-

Job traning influences performance by increasing skill level, productivity and affect customer

satistaction positive. 76.9%% of the respondent indicated that on-the-job training influences

performance. The study focused on judiciary's lower courts hence the same results cannot be

applied to NPS. The study also concentrated on on-job-training and career development as the
only forms of intrinsic reward strategy. Other forms of intrinsic reward strategyy were 1gnored

in the study.

Mikandar (2010) in his study found out that a well-developed and functional feward system

can increase employee motivation and satisfaction while Ngata (2014) concluded that there

was a strong relationship between employee independence and performance. Ngata (2014)

study concentrated more on recognition but the current study will focus on career development,

responsibility, learning opportunity, work environment and recognition.

Wood (1974) study was conducted in a private sector thus the same findings cannot will be

relied on as this was done in a public sector. While Carlina Mikander (2010), Ngata (2014) and

Wood (2014) did their studies in private organizations, Ngari (2015) conducted his study in

public sector. However, Ngari (2015) focused on on-Job training as the only form of intrinsic

reward system. The current study focused on recognition, career development, responsibility,

learning opportunity and work environment as forms of reward strategies which have not been

adequately investigated.

2.3.3 Extrinsic Reward strategies and Employee Performance

An extrinsie reward is an award that is tangible or physically given to a person for

accomplishing something. It is a tangible recognition of one' s endeavor. Extrinsic rewards are

usually given to the person doing something. Therefore, extrinsic rewards mean the reward is

extrinsic to the performer of the activity or belhavior. An extrinsically motivated person wil be

committed to the extent that he can gain or receive external rewards for his or her job (Ajila,

1997). Extrinsic rewards are from factors outside an individual such as money, grades, criticism

or punishment. This type of reward strategy provides satisfaction and pleasure that the task

itself might not provide. This strategy has an immediate and powerful effect however it does

not tend to last for long (Armstrong, 1988).

San & Thee (2012) conducted a study on reward strategy and performance measurement. The
purpose of the study was to explore the contribution of reward strategy in supplementing

financial performance of an organization. The findings of the study showed that rewards lead

to increase in both financial and non-financial performance which will also enhance

companies' reputation as well as increase the recruitment possibility where more manpower

will make a stronger team. Effective reward mechanism will shift from fulfilling employees

basic requirement to sel f-actualization as they are growing with the business. The study was

conducted in Malaysia therefore the result may not be generalized to all services in other

context and countries.

Aktar & Ali (2012) conducted study on the impact of rewards on the employee performance in

the' commercial banks of Bangladesh. The study aimed at examining the relationship between

rewards and employee performance as well as identifying the relationship between extrinsic

and intrinsic rewards. The study explored the factors determining extrinsic and intrinsic

rewards and ther impact on employee performance. Descriptive statistics based frequency

tables and graphs were used in the study. The study revealed that there exists a positive

relationship among extrinsic rewards, intrinsic rewards and performance. The study focused

on commereial banks hence the same results cannot be applied to the NPS which is non-profit

making organization.

Abdifatah, Odhuno & Ondabu (2015) examined how extrinsic rewards affect employee

satistaction in attainment of organizational objectives. A case of Somtel- Company in

Somaliland. The study employed descriptive research design and used a structured

questionnaire to collect data. The target population of the study comprised of 140 employees

of Somtel Company, The study found out that the salaries, bonus payment, ordinary

commission and working conditions have a positive relationship with performance. The study

concluded that there is positive relationship between extrinsic rewards and employee

performance. The study recommended further research on intrinsic rewards and motivation.
The study focused on extrinsie rewards only thus the same results cannot be applied in this

study. The study also focused on a profit making company hence the same results cannot be

applied to NPS which is non-profit making company.

Ahmed and Ali (2008) carried out a research on the impact of reward and recognition programs

on employee motivation and satistaction. Exploratory research design was used. The findings

indicated a positive relationship between rewards and work satisfaction as well as motivation.

The researchers recommended that further studies to be done on the impact of reward and

recognition on the on motivation and satistaction for diverse groups of people.

Njanja, Maina and Kibet (2013) conducted a study on effect of reward on enmployees

performance a case of Kenya Power and lighting company Ltd. The study aimed at determining

the effect of reward on employee performance at KPLC. The study employed correlation

research design. The finding of the study showed that cash bonus has no effect on employee

performance. This was because-those who received cash bonus and those who did not, all

agreed that cash bonus affect their performance the same. The study focused on extrinsic

reward strategy and ignored intrinsic reward strategy.

While San & Then (2012) conducted study in Malysia on reward strategy and performance,

Aktar & Ali (2012) conducted a study on the commercial banks of Bagladesh. Both studies

established that there was al positive relationship between rewards and performance. Both

studies focused more on forms of reward strategies but the two studies were conducted in

private sectors thus there is neetl to do the current study which was conducted in a public sector.

Abdifatah, Odhuno & Ondabu (2015) and Ahmed & Ali (2008) used descriptive and

exploratory research design respectively but the current study adopted correlation research

design. Ahmed & Ali (2008) focused on reward and recognition programs on employee

motivation and satisfaction but the current study focused on reward strategies and employee

pertormance. NjanJa, Maina & Kibet (2013) study focused only on bonus as the only form of
extrins1C reward but the current study concentrated on bonuses, benefits, pay, paid trips and

title.

Whereas all the above studies agree that there is a positive relationship between rewards and

performance, there is little knowledge on the effect of reward strategies on the pertormance of

National Police Service employee in Trans Nzoia County hence facilitated this study. This -

because police officers perform ą critical role in security issues.

Previous researchers did a commendable job in determining the effects of reward strategies on

employee perfomance. They, however, did not highlight the effects of reward strategy on

specific public-sector institutions in Kenya. This study therefore examined the National Police

Service in Trans-Nzoia County, to give a true reflection of this phenomenā in the public service

of Kenya.