Daystar University Repository The Effect of Employee Empowerment Strategies on Organizational Performance of Serena Hotels in Kenya by Linet Kinyua (14-0110) A thesis presented to the School of Business and Economics of Daystar University Nairobi, Kenya in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION in Strategic Management May 2017 Library Archives Copy Daystar University Repository APPROVAL THE EFFECT OF EMPLOYEE EMPOWERMENT STRATEGIES ON ORGANIZATIONAL PERFORMANCE OF SERENA HOTELS IN KENYA by Linet Kinyua (14-0110) In accordance with Daystar University policies, this thesis is accepted in partial fulfillment of the requirements for the Master of Business Administration degree Date Moriasi Maranga, MBA, 1st Supervisor Dorcas Mwamba, MBA, 2nd Supervisor Thomas Koyier, MSc, HOD, Commerce Department Evans Amata, MFC, Dean, School of Business and Economics ii Library Archives Copy Daystar University Repository Copyright © 2017 Linet Kinyua iii Library Archives Copy Daystar University Repository DECLARATION THE EFFECT OF EMPLOYEE EMPOWERMENT STRATEGIES ON ORGANIZATIONAL PERFORMANCE OF SERENA HOTELS IN KENYA I declare that this thesis is my original work and has not been submitted to any other college or university for academic credit Signed: Date: Linet Kinyua (14-0110) iv Library Archives Copy Daystar University Repository ACKNOWLEDGEMENTS I give glory to God for giving me the strength and determination to complete this thesis. I owe special thanks to my husband, Lawi Mamai, and my children, Talisa Nasike and Natalia Amo Njeri, who were quite understanding throughout the period of my studies. I also appreciate my supervisors, Mr.Moriasi Maranga and Mrs. Dorcas Mwamba, for their guidance in the writing of this thesis. v Library Archives Copy Daystar University Repository TABLE OF CONTENTS APPROVAL ........................................................................................................................ ii DECLARATION ................................................................................................................ iv ACKNOWLEDGEMENTS ..................................................................................................v TABLE OF CONTENTS ................................................................................................... vi LIST OF TABLES .............................................................................................................. ix LIST OF FIGURES ..............................................................................................................x LIST OF ABREVIATIONS AND ACRONYMS .............................................................. xi ABSTRACT....................................................................................................................... xii CHAPTER ONE ..................................................................................................................1 INTRODUCTION AND BACKGROUND TO THE STUDY ........................................... 1 Introduction .......................................................................................................................1 Background of the Study ..................................................................................................2 Strategic Management ...................................................................................................2 Employee Empowerment Strategies..............................................................................4 Organizational Performance ..........................................................................................5 Employee Empowerment Strategies and Organizational Performance .........................6 Profile of Serena Hotels ................................................................................................7 Statement of the Problem ..................................................................................................9 Purpose of the Study .......................................................................................................11 Objectives of the Study ...................................................................................................11 Research Questions .........................................................................................................11 Justification for the Study ...............................................................................................12 Significance of the Study ................................................................................................12 Assumptions of the Study ...............................................................................................13 Scope of the Study ..........................................................................................................14 Limitations and Delimitations of the Study ....................................................................14 Definition of Terms.........................................................................................................15 Summary..........................................................................................................................16 CHAPTER TWO ...............................................................................................................17 LITERATURE REVIEW ...................................................................................................17 Introduction .....................................................................................................................17 Theoretical Framework ...................................................................................................17 Structural Empowerment Theory ................................................................................17 Institutional Theory .....................................................................................................18 Resource Based Theory...............................................................................................19 Dynamic Capabilities Theory......................................................................................20 General Literature Review ..............................................................................................23 Employee Empowerment.............................................................................................23 Employee Empowerment Strategies............................................................................23 Delegation of Authority ...............................................................................................24 Employee Recognition.................................................................................................25 vi Library Archives Copy Daystar University Repository Influence of Employee Empowerment Strategies .......................................................27 Challenges of Implementation of Employee Empowerment Strategies ......................29 Organizational Performance ........................................................................................31 Indicators of Organizational Performance ...................................................................32 Empirical Literature Review ...........................................................................................35 Conceptual Framework ...................................................................................................40 Discussion........................................................................................................................40 Summary..........................................................................................................................41 CHAPTER THREE ............................................................................................................43 RESEARCH METHODOLOGY........................................................................................43 Introduction .....................................................................................................................43 Research Design ..............................................................................................................43 Population ........................................................................................................................44 Target Population ............................................................................................................44 Sample Size.....................................................................................................................45 Sampling Techniques ......................................................................................................45 Data Collection Instruments ............................................................................................45 Types of Data..................................................................................................................46 Data Collection Procedure ..............................................................................................46 Pretesting .........................................................................................................................46 Data Analysis Plan ..........................................................................................................47 Ethical Considerations .....................................................................................................47