International Journal of Advanced Scientific Research

International Journal of Advanced Scientific Research


International Journal of Advanced Scientific Research
International Journal of Advanced Scientific Research
Vol. 5, Issue 4 (2020)

Effect of remuneration strategies on employee performance in tea sectors: A case of Unilever tea, Kenya


Misik Kipkemoi Charles, Richard Kimetto

Renowned companies and organizations world over post huge profits in their end year disclosures and is a sharp pointer to good performance by the employees which in turn is related to remuneration strategies carried out by the employers. In contrast to the foregoing, dismally performing companies, organizations, private ownership, partnerships and even sole trader ships have their status generally linked to the kind of remuneration they offer to their workers. The research in its objectives revealed interesting associations of variables in the effect of remuneration strategies on employees performance, it examined the link between remuneration and nature of work in the tea sector, it found out the links between remuneration and employees performance and suggested ways of handling employee grievances in order to improve performance, enhance employee/employer relations, stem possible industrial disputes on account of wages and work overload and avert potential strikes. The research was based on Equity theory, Expectancy theory and Reinforcement theory which have their emphasis on pay structure of employee remuneration. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratio of contribution or cost) and benefits (or rewards) for each person. The study was conducted in Unilever Tea Kericho County and adopted a case study mode of research. Quantitative and qualitative approaches were considered relevant to give desired results. Respondents were drawn from the management cadre and the union sable employees from existing divisions of the company. 10% of the total management staff and support employees from each division of the company were picked on a random selection basis for interview. A random technique was applied in selecting respondents from the larger members of staff while purposive techniques were ideal in picking interviewees from the management side. The study used questionnaire and interview schedule as instruments to collect data of primary nature while the sourcing of secondary data was done through data extraction form. The objective of this study included finding out the pay scale of employees of Unilever Tea Kenya and relating to their outcomes.. The research used Karl Pearson’s coefficient of correlation (r) to compute the relationships between the variables. The correlation was negative-0.417 when remuneration was correlated with employees turn-over and was equally -0.378 when correlated with nature of work. A positive correlation of 0.952 was found between remuneration and employees’ performance. The importance of this study was to reveal strengths and weaknesses of remuneration strategies employed by the tea sector in order to improve employee’s performance and profitability of the company.
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How to cite this article:
Misik Kipkemoi Charles, Richard Kimetto. Effect of remuneration strategies on employee performance in tea sectors: A case of Unilever tea, Kenya. International Journal of Advanced Scientific Research, Volume 5, Issue 4, 2020, Pages 48-52
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