Performance management in the relationship between transactional rewards and employee performance at teachers’ service commission, Kenya

Abstract

Teachers Service Commission, Kenya (TSC) has struggled to offer quality service to teachers in Kenya. In particular, it adopted performance management besides transactional rewards for its secretariat staff in 2005/2006 fiscal year to ensure quality, quantity, and efficiency in service provision. Performance management and transactional rewards are critical strategies in enhancing efficiency in employee performance. However, in the last 16 years, quality service has consistently declined at the TSC. Approximately 5000 teachers visit its head office monthly, to solve their work-related problems. Similarly, customer satisfaction level decreased from 73.5% in 2016 to 59.8% in 2018. The literature review reveal that the findings of transactional rewards and performance management on employee performance respectively needs evaluation, and involves contradictions to attract better policy and practice. Studies also suggests that transactional rewards and performance management are responsible for employee performance but have not revealed the effect of performance management on the relationship between transactional rewards and employee performance. The purpose of this study was to determine the relationship between transactional rewards, performance management, and employee performance at TSC, Kenya. The objectives were to: Establish the effect of transactional rewards on employee performance at TSC, Kenya; determine the effect of performance management on employee performance at TSC, Kenya; and establish the moderating effect of performance management on the relationship between transactional rewards and employee performance at TSC, Kenya. This correlational research study was anchored on Goal setting theory. Primary data were collected from the 1200 TSC secretariat staff stationed in counties in Kenya using structured questionnaires. Krejcie and Morgan Table, and Cluster sampling technique were respectively used to select 291 TSC secretariat staff, and randomly sample the counties. Pilot results (N=21) and expert reviewers respectively, established reliability between α=.720 and .933 for variables, and high validity that provides unbiased data allowing 8-10% random error. Multiple regression results revealed that transactional rewards (B=0.325, p=0.000, R2=21%) and performance management (B=0.457, p=0.000, R2=42%) respectively predicted employee performance while the interaction (ΔR2=0.8%, p=0.042) explained the variation in employee performance. Transactional rewards and performance management thus significantly and positively affect employee performance, while performance management significantly moderates the transactional rewards-employee performance relations. The findings reveal that the existence of transactional rewards and performance management helps to improve performance at the TSC. Organizations should enhance the implementation and improvement of performance management, and integrate transactional rewards into their performance management framework for employee performance. Future research on the nature of this interaction effect should be conducted in private organizations.