Response of Kenya state owned enterprises to declining opportunities for employee promotion
Opisa, Patrick W
MetadataShow full item record
In order to redeem the public sector from poor performance and mismanagement, the Kenya government initiated reform programs, which targeted both the civil service and state owned enterprises. The reforms recommended the re-organization and restructuring of all state owned enterprises, to make them more competitive and generate revenue. Although the reforms have achieved their objectives, a number of problems related to these changes are yet to be addressed. Among them are the declining opportunities for employees‟ promotions, leading to the problems of employee motivation and retention. The poor morale and high labor turnover can work against the general performance of these organizations, thus eroding the gains intended by these reform measures. It is imperative therefore, for the state owned enterprises to design strategic responses, to address the problems of motivation and retention as a result of declining opportunities for promotion. This study sought to determine how state owned enterprises were responding to problems emanating from declining opportunities for promotion and how successful the said responses have been. The population of interest was all the 54 State owned enterprises in Nairobi that have restructured. A closed ended questionnaire was used to collect data. For the purpose of showing the relationships among various responses, quantitative analysis was done using descriptive statistics, consisting of; percentages, arithmetic mean, standard deviations. Further, chi-square test was used to determine the association between the responses to declining opportunities for employee promotions on one hand and motivation and retention on the other hand. Findings from the study indicate that; ensuring good work conditions; enhancing good work relations; giving annual salary increments and guaranteeing job security are some of the major strategic responses used by state corporations to effectively deal with the declining opportunities for employee promotions The major conclusions were that, state corporations should embrace more useful responses to declining employee promotion opportunities, such as; paying employees based on performance; improve employee remunerations; enrich and enlarge employee tasks and duties in order to mitigate motivation and employee retention challenges as a result of declining opportunities for employee promotions. Consequently, this will not only minimize the increasing labour turnover, but also improve employee job satisfaction and commitment.
University of Nairobi