Influence of remuneration on organizational performance in co-operative banks in Kiambu, Kenya.

Abstract

This study investigates the influence of remuneration on organizational performance in cooperative banks in Kiambu County, Kenya. Employing a mixed-methods approach, the research explores how compensation packages, salary reviews, and employee recognition impact performance. The study utilizes a descriptive research design with structured questionnaires to gather data from 94 participants. Findings indicate a significant correlation between competitive remuneration and enhanced organizational performance. The majority of
employees are satisfied with salary increments and recognize the positive effects of frequent salary reviews on their motivation and job satisfaction. The study also highlights the importance of recognition and praise in boosting employee morale and engagement, contributing to overall organizational success. This research is grounded in Equity Theory, which posits that fair treatment in compensation leads to higher motivation and productivity. The conclusions drawn suggest that cooperative banks should implement equitable and competitive remuneration strategies, along with regular salary reviews and robust recognition programs, to enhance performance. The study provides valuable insights for policymakers and
bank managers aiming to improve organizational effectiveness through strategic human resource practices.