Financial Incentive as a Yardstick for Employee Performance: the Case of University of Nairobi

Abstract

The paper examines the extent to which financial incentives contribute to employee performance, the case of University of Nairobi. The study was descriptive in nature and investigated financial incentive as a yardstick to assess employee performance at the University of Nairobi. The target population in this study was the non-teaching staff of Nairobi University, whereby stratified sampling technique was applied. The findings of the study revealed that financial incentive as a human resource management practice enhances performance of employees. It also indicated that other factors such as healthcare for the employees, contribute to employees’ motivation. Major recommendations is the need for harmonization of the financial incentives as a means to long term objectives and the strategies of the organization. Further research should be explored from the perspectives of effects of human resource management practices on employee turnover and organizational life cycles.