Moderating role of organizational culture on reward strategies and employee performance in faith-based facilities in Kakamega County, Kenya

Abstract

A reward system, which consists of financial and non-financial rewards, is very essential to organizations in managing employee loyalty and performance. Most firms struggle to determine the best compensation and reward systems for their staff. The main purpose of the study was to examine the effect of reward strategies and organizational culture on employee performance in Faith-Based Facilities (FBFs) in Kakamega County, Kenya. The study determined the moderating role of organizational culture on the relationship between reward strategies and employee performance in FBFs in Kakamega County. Reinforcement Theory, also known as Learning Theory, guided this study. The study was done in Kakamega County with 685 employees in 27 FBFs as the target population. An explanatory study design was adopted for in-depth analysis with a sample size of 246 employees chosen through stratified random sampling technique. A self-administered questionnaire was used whose content and construct validity were established through expert review, while reliability tests yielded Cronbach’s alpha coefficients between 0.783 and 0.916. Data analysis was done using SPSS version 24 to generate descriptive and inferential statistics. Analysis established that organizational culture had a significant moderating effect (R²=.267, F=26.853, p=.000). The coefficients from the moderated regression model revealed significant influence by the interaction terms on reward strategies: recognition (B=.035, p=.010), job security (B=.067, p=.000), and promotion (B= -.038, p=.019). The study concludes that the effectiveness of reward strategies in improving performance is enhanced when a supportive and collaborative organizational culture is in place. Faith-based facilities should continuously promote an organizational culture of employee involvement, communication, inclusivity, and representation to enhance positive staff attitude and behavior for optimal performance.