Effect of Compensation Strategy on the Performance of the Office of the Auditor-general in Kenya

Abstract

This study sought to determine the effect of compensation strategy on the performance of the Office of the Auditor General. The research was anchored on two theories which are Equity theory and Expectancy theory. The researcher used case study research design in conducting the study. The target respondents were two heads of departments who were interviewed. The researcher used an interview guide to collect data from the respondents and analyzed the collected data using content analysis method. The researcher found that, Office of the Auditor-General as a large organization which has been in existence since independence with a population of 1250 employees, some on permanent terms, others on contract terms and others on probation. It was found that direct financial compensation facilitated the employees to offer their desired services for the daily running of the organization. Direct financial compensation acts as a source of motivation to staff and rejuvenates their performance and so it is important since it helps in improving the organizational performance. Indirect financial compensation like medical cover has an impact on employee’s health and so it was found that good health is directly proportional for good performance and growth of the Office of the Auditor-General. It was found that, non-financial compensation such as good working environment has contributed to job satisfaction at the Office of the Auditor-General. Fair and appropriate policies has brought about equity and as a result, there is improved performance at the Office of the Auditor-General. The researcher found that, customer perspective has contributed to the Office of the Auditor-General monitoring its performance through feedback received from their customers. Learning and growth perspective was found to be a measure that helped the office to identify the weak areas of performance and improved on them through training of employees. Internal business process is an important measuring tool of performance which the Office of the Auditor-General should not ignore. Communication channels are very important because they create good relationship between employee to employee and manager to employee as these mutual relationships are key in the performance of any organization that wants to improve on its performance and the Office of the Auditor-General is not an exception. The Office of the Auditor-General should continuously embrace and thrive to improve on the quality and enhance professionalism among the staff members. The office should also focus on the services offered to customers by ensuring their expectations are met and they be satisfy. The staff member should also focus on addressing any emerging issues promptly and efficiently.