Effects of Innovative Motivational Strategies on Organization Performance: a Case of Uchumi Supermarkets, Kenya
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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, KENYA 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, Nakumatt, 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 Nairobi, 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