Vol III Issue VIII, October 2017 ISSN 2412-0294

http://www.ijssit.com

EFFECTS OF INNOVATIVE MOTIVATIONAL STRATEGIES ON ORGANIZATION PERFORMANCE: A CASE OF UCHUMI SUPERMARKETS,

1* Grace N. Muchiri 2** Dr. Assumpta Kagiri [email protected] [email protected] MBA Student, Strategic Management

1* 2** Jomo Kenyatta University of Agriculture and Technology

Abstract

HR teams are forced to think out-of-the box, and to effective organizational performance in Uchumi come up with innovative approaches that create a Supermarkets. The study found that that Uchumi healthy working environment and motivate the Supermarket Limited had not fully implemented the employees to utilize their set of skills and knowledge Innovative motivational Strategies such as employee through discretionary effort to realize firm's participation, career development programmes, business strategy. This approach to human resource wellness programmes and family friendly initiatives management is likely to contribute to improved as key component in its performance. The study economic performance of the firm. The purpose of recommends that further researcher be carried out this study was to assess effect of Innovative on the determinants of implementation of motivational strategies on organizational innovative motivational strategies in organizations. performance. Specifically, the study sought to Keywords: Motivational Strategies, Organisational establish whether employee participation; provision Performance of health and wellness facilities; career development programs and family friendly programs contribute INTRODUCTION employees to gain competitive advantage in global As economic globalization become more economies, (Reiche 2007). pronounced the ability of organizations to compete Innovative Motivational strategies are expected to in the global market place is all the more tied to the enhance organizational performance and enable the quality of their human resources. It is worth noting organization to gain competitive advantage. This that business success today revolves largely around means adopting contemporary practices that people, not capital (Binoy, 2012). Many include decentralization of decision making, organizations rely on the expertise of their reduced status barriers that include dress, language, office arrangement, information sharing, employee

© Muchiri, Kagiri 2364

Vol III Issue VIII, October 2017 ISSN 2412-0294 participation, flexible work arrangements health resources and low staff morale has led to poor and wellness facilities, relaxation facilities, on-site business performance. This has been demonstrated child care facilities, career development by the reported cash flow challenges and closing programmes and training among others, (Boxall, some of its branches in Kenya and in Uganda. The Purcell & Wright 2007). The result is greater job oldest retail chain in Kenya since 1976 is also faced satisfaction lower employee turnover and better with stiff competition from the major local decision-making all of which help organizational supermarkets like Tusky’s, , Naivas and performance. new entrants like South Africa’s Game and France’s Careffour (Economic survey 2016). Uchumi Supermarkets Uchumi Supermarkets Ltd (Uchumi Supermarkets Statement of the problem Limited) is a Kenya-based public company Despite Uchumi supermarket being for a long time engaged in the retail supermarkets operation. It a leading retail chain in Kenya mismanagement of distributes bakery, wines, meat, fish, vegetables, as resources and low staff morale led to poor business well as kitchen appliances and decoration, among performance. The low levels of commitment and others. Uchumi is the oldest supermarket chain in self-sacrifice by the employees has resulted to Kenya, currently celebrating 40 years having minimal customer services, (Kariuki, 2011). Most started operations in 1976. It has 20 shops operating studies on Uchumi Supermarket have focused on in , Karatina, Meru, Eldoret, Kericho, the turnaround strategies implemented and other Mombasa and Kisumu. In the 1990's Uchumi factors that affect its performance. For example, a spearheaded the hypermarket concept in Kenya study by Kibabii, (2012) on the Effect of Manager’s (www.uchumicorporate.co.ke) Strategies in Turning around organization (A case In early 2000s Uchumi started to experience of Uchumi Supermarket – Kenya), only financial and operational difficulties occasioned by recommended the need by management to engage a sub-optimal expansion strategy coupled with employees during the turnaround process. While, weak internal control systems. As a result, on 31st another one by Kiarie, (2010) focused on the May 2006, the Board of Directors resolved that the various turn around strategies adopted by Uchumi Company ceases operations and on 2nd June 2006, Supermarket under receivership the Debenture Holders placed the Company under In most of the studies reviewed, the aspect of receivership. Simultaneously, the Capital Markets employee motivation as a strategy to boost Authority (CMA) suspended the Company’s listing organization performance has not been taken into on the Nairobi Securities Exchange (NSE). consideration. This study therefore, sought to Following a framework agreement between the address the gap by studying the situation at Uchumi Government of Kenya, suppliers and debenture Supermarkets. holders, the company is revived and commenced Significance of the Study operations from 15th July, 2006 under Specialized Receiver Manager (SRM) and interim The findings of the study will be useful to management, (USL Report 2009) organizations and institutions to adopt innovative motivation enhancing practices as a strategy to Despite Uchumi supermarket being for a long time increase efficiency and enhance their employee’s a leading retail chain in Kenya mismanagement of performance at work place therefore reducing cost © Muchiri, Kagiri 2365

Vol III Issue VIII, October 2017 ISSN 2412-0294 incurred through absenteeism and high staff organizational citizenship behaviors, suggesting turnover. It will also help management strategically that workers feel obligated to exert “extra” effort in maximize the human resource potential in the midst return for “extra” benefits. of competition. Herzberg's Two-Factor Theory - Herzberg's Objectives of the study Two-Factor Theory is one of the theories that The study’s general objective was to determine the address the higher-level psychological needs such effect of Innovative motivational strategies on as achievement, recognition, responsibility, and organizational performance and the specific advancement. This theory attempts to explain the objectives were to; factors motivate individual through identifying and satisfying the individual’s needs, desires and the 1. Determine the influence of employee aims pursued to satisfy them. participation in decision making on organizational performance Goal Setting Theory (Locke & Latham, 2002) - The theory began with the early work on levels of 2. Establish the effect of provision of wellness aspiration developed by Kurt Lewin and has since facilities on organizational performance been primarily developed by Dr. Edwin Locke, who 3. Examine whether career development began goal setting research in the 1960s. The programs affect organizational performance. research revealed an inductive relationship between goal setting and improved production performance. 4. Establish the effect the family-friendly programs on organizational performance RESEARCH METHODOLOGY LITERATURE REVIEW The study adopted descriptive research design. The design was deemed appropriate as it provided an The study was guided by the following theories; in-depth investigation on the effect of innovative Kahn’s Personal Engagement Theory (1990) - human resource management practices. The target According to Kahn (1990), personal engagement population of the study included employees theoretical framework, people express themselves selected from managerial and non-managerial physically, cognitively and emotionally in the roles levels in the organization. Sampling was done they occupy; people are more excited and content through purposive sampling. A sample comprised with their roles when they draw on themselves to 60 respondents selected from the organization. perform their roles; and people vary in their levels Primary data was collected using questionnaires of attachment to their roles. which had have both closed and open-ended questions. Data was analyzed using frequency Social Exchange Theory - In terms of family- distribution tables, percentages and charts. friendly programs, the social exchange theory and the norm of reciprocity suggest that when RESEARCH FINDINGS AND DISCUSSION organizations provide family-friendly benefits to Contribution of Innovative Motivational their employees that are not mandated by the strategies to Organization Performance organizations or outside forces (e.g., labour or state law requirements), reciprocity should come into 56.9 % indicated that implementation of Innovative play. Lambert (2000) found that workers' motivational strategies contribute to the experiences with family-friendly benefits fostered © Muchiri, Kagiri 2366

Vol III Issue VIII, October 2017 ISSN 2412-0294 organization’s performance while 43.1% were of Wellness Initiatives the contrary opinion. Most of the respondents listed insurance cover and Employee participation pension as some of the wellness programmes About 70.6% were of the opinion that employee provide by the organization. 64.7 percent agreed to participation contribute significantly to a moderate extent that wellness programmes organization performance. Most of the respondents enhance confidence of the employee and eventually said that their organization involves employees in increasing employee productivity. 35.3% agreed to setting of targets. However, the majority strongly a large extent that the wellness programmes disagreed that the organization seeks employee contribute significantly towards physical and opinion on job related matters. Only 7% agreed that psychological wellbeing of the employee thereby there is information sharing within the boosting concentration levels. A study by (Ng’eno organization, while 18% of the respondents agreed & Muathe, 2014) found out that wellness programs that workers opinion was appreciated by the by design support employees in understanding their organization. This is in agreement with the findings health risks and adopting healthy behaviors to of Khattak, Igbal and Bashir, (2012) also indicated decrease these risks. This eventually leads to that employee involvement and participation at attainment of higher performance level and high work has significant positive effect on job service delivery in an organization. satisfaction, leading to improved organizational Family Friendly Initiatives performance A majority of the respondents listed working in Career Development programmes shifts as family friendly initiative that allowed them A total of 33 % of the respondents agreed to a large to balance their life commitments. 64.7 % said that extent that career development programmes family friendly programmes allowed them to focus contributed to increase in commitment to the more on their work. Majority also agreed to a large organization while 18% believed that career extent that these programmes motivated them to development programmes contribute a very large exceed expectation at work. A study by Kamau, extent attainment of personal goals. A majority said Muleke, Mokaya and Wagoki (2013), found that that career development programmes contribute to presence of employee assistance programs (family increased effectiveness in the organization. This friendly programs) enabled employees to handle concurs with a study by Kennedy (2009) that personal problems without necessarily affecting investigated the impact of training and their productivity in the organization. development on job performance in the judicial Implications of the Findings to the Study service of Ghana. The study concluded that Majority of the respondents listed employee training and development was important in commitment as one of the benefits an organization bridging the training gaps and to build capacity of would gain by adopting innovative motivation employees relative to achieving the overall vision strategies. Others listed increased profitability and and mission statements of the Judicial Service of customer loyalty due to employee efficiency. This Ghana. is in agreement with finding of a study by Kehoe and Wright (2010), that adoption of creative and innovative motivational strategies is critical to © Muchiri, Kagiri 2367

Vol III Issue VIII, October 2017 ISSN 2412-0294 increase employee commitment and involvement to organization had not adopted other wellness achieve better individual, team and organization initiative such as counseling and recreation performance. This implies that by embracing and facilities. implementing innovative motivational strategies Family friendly initiatives Uchumi Supermakets Limited would improve its performance. The study found that working in shifts was rated as a popular family friendly programme adopted by SUMMARY OF MAJOR FINDINGS the organization. Working in shifts enabled the Employee Participation employee to balance work, family studies and other The study found that Uchumi Supermarket Limited personal engagements. The organization did not had not embraced employee participation as a key offer scholarships or education support to the employees and their families. strategy in contributing to employee performance even though 70.6% were of the opinion that this CONCLUSION would contribute positively to the organization’s The study concludes that Uchumi Supermarket performance. The study found that employees were Limited has not fully embraced the Innovative only involved in setting individual and Motivational Strategies such as employee organizational targets. The organization did not participation, career development programmes, seek ideas from employees on how to improve wellness programmes and family friendly service delivery or its general performance. initiatives as key component in its performance. Career Development Programmes Recommendations The research found that the organization had not Employee Participation implemented innovative career development programmes. According to the majority of the Based on the findings that that Uchumi respondents, the organization had not put in place Supermarket Limited had not embraced employee career development programmes while a few participation as a key strategy in contributing to respondents said that the organization had training employee performance, the study recommends that as part of their career development programmes. the organization invests in employee engagement The study found that although the organization programmes as this is closely linked with organized trainings to build capacity among the organizational performance outcomes. employees, it did not did not have mentorship or Career Development Programmes coaching programmes in place. Based on the findings that Uchumi Supermarket Wellness programmes Limited organization had not implemented The study found that insurance covers and pension innovative career development programmes the gave the employees a sense of security and study recommends that the organization invest psychological wellbeing and this contributed to more resources in enhancing capacity of its their commitment to the organization. The employee through the various career development organizational had also provided an enabling initiatives. physical and social environment contributing to a harmonious working environment. The

© Muchiri, Kagiri 2368

Vol III Issue VIII, October 2017 ISSN 2412-0294

Wellness programmes strategically maximize the human resource The study recommends that Uchumi Supermarkets potential in the midst of competition. Limited introduces other wellness programmes that Areas for Further Research promote healthy workplace, fosters employee Given the above research finding on the effects of health and well-being while enhancing Innovative Motivational Strategies on Organization organizational performance and productivity. performance, researcher suggests that a study Family friendly initiatives should be carried out on the determinants of Uchumi should progressively benchmark with the implementation of innovative motivational best family friendly initiative practices so as to strategies in organizations REFERENCES Allen, T.D. (2001). Family-supportive work Attitudes and Behaviour. Journal of environments: The role of organizational Management.Vol.39No2, February 2013 perceptions. Journal of Vocational PP 366-391 Behavior, 58, 414–435. Khan, K. U., Farooq, S. U., & Ullah, M. I., (2010) Binoy J.(2012).Innovative Human Resource The Relationship between Rewards and Practices and Employee Outcomes in Employee Motivation in Commercial Banks Software Firms in India, Rajagiri of Pakistan. Research Journal of College of Social Sciences International Studies, 14, 37-52. Herzberg, Frederick; Mausner, Bernard; Kiarie, C.W. (2010) Turnaround Strategies Snyderman, Barbara B. (1959). The adopted by Uchumi Supermarket Limited Motivation to Work (2nd edition.). New under receivership. UON, Unpublished York: John Wiley. Research Project Kahn, W.A. (1990), “Psychological conditions of Kibabi, L.K. (2012) Effect of Manager’s Strategies personal engagement and disengagement at in Turning around organizations. A case of work”, Academy of Management Journal, of Uchumi Supermarket –Kenya. Kenyatta Vol. 33, pp. 692‐724. University Unpublished Research Project Kahn, W.A. (1992), “To be full there: Kintu, A. & Ngugi, P.K. (2013) Determinants of psychological presence at work”, Human Corporate Hedging Practices Used by Relations, Vol. 45, pp. 321‐49. Companies Listed in Nairobi Security exchange: A Case of Uchumi Supermarket. Kaya C. & Ceylan B., (2014) An Empirical Study International Journal of Social Sciences and on the role career development Programmes Entrepreneurship, 1(2), 383-398 and Organizational; Commitment on Job Satisfaction of Employees. American Lambert, S.J. (2000). Added benefits: The link Journal of Business and Management, Vol.3 between work-life benefits and No.3 organizational citizenship behavior. Cropanzano, R. and Mitchell, M.S. (2005), Kehoe, R. and Wright M.(2010): The Impact of “Social exchange theory: an High Performance Human Resource interdisciplinary review”, Journal of Management Practices on Employee Management, Vol. 31, pp. 874‐900 © Muchiri, Kagiri 2369

Vol III Issue VIII, October 2017 ISSN 2412-0294

Mugenda A. & Mugenda O. (2012). Research Som A., (2008). Innovative human resource Methods Dictionary; ARTS Press, Nairobi management and corporate performance in the context of economic liberalization in Mugenda A. &Mugenda O. (1999) Research India. The International Journal of Human Methods, Quantitative and Qualitative Resource Management Approaches. Acts Press, Nairobi Mukururi J. N. & Ngari J. M. Influence of Work Life Balance Policies on Employee Job Satisfaction in Kenya’s Banking Sector; A Case of Commercial Banks in Nairobi Central Business District, IOSR Journal of Social Science and Humanities, Vol. 19 Issue 3 ISSN: 2279-0837 Muli J. V., Muathe S. & Muchiri M. (2014). Human Resource Work-Family Support Services and Employees Performance within the Banking Industry in Nairobi County. Unpublished thesis. Ngugi J., Muleke V., Mokaya S.O., Wagoki J., ( 2013). Work Life Balance Practices on Employee Job Performance at Eco Ban Kenya. European Journal of Business and Management Vol 5 No 25. Njoroge S. W., Gachunga H. & Mumbo H. M. (2013). The Impact of Employee Development Programs on Organizational Commitment in the Public Universities. International Journal of Social Sciences and Entrepreneurship, 1 (5), 472-486 Onyango F.K.,(2010). An investigation into the factors influencing usage of flexible work arrangements in organizations in Kenya: A case of Sony Sugar Company. Unpublished MBA thesis. Kenyatta University Simiyu N. N., (2013). The Effect of Child Day Care Facilities on the Performance of Working mothers in the Banking Industry in Nairobi County Kenya. Kenyatta University, M.sc HRM thesis, unpublished

© Muchiri, Kagiri 2370