AN EXAMINATION OF EMPLOYEE RELATION STRATEGY ON EMPLOYEE

PERFORMANCE IN HOSPITALITY INDUSTRY OF KENYA

(A SURVEY OF SELECTED HOTELS WITHIN NAKURU TOWN)

BY

LEKISHON EVELINE SANTALO

BUS-1-6372-1/2012

A RESEARCH PROJECT CARRIED OUT IN PARTIAL FULFILLMENT FOR THE

REQUIREMENTS OF THE AWARD OF BARCHELORS DEGREE IN BUSINESS
ADMINISTRATION AT THE KENYA METHODIST UNIVERSITY
(HUMAN RESOURSE OPTION)

2016

DECLARATION
Declaration by candidate
This research project is my original work and has not been presented by anyone else for any award in
any institution or other examination body.
.

SIGNATURE

DATE

LEKISHON EVELINE SANTALO

BUS-1-6372-1/2012

Declaration by supervisor
This research project has been submitted with my approval as the supervisor at Kenya Methodist
University.
..

SIGNATURE

DATE

DOREEN NJEJE

DEDICATION
This research project is dedicated for my uncle, my sister and the family for their financial support
throughout my education and in writing the research project.

ACKNOWLEGEMENT
I wish to express to my sincere thanks and gratitude to the Almighty God who has granted me the gift of
life and the opportunity for pursing my studies, His guidance and blessings have continually been with
me. Secondly my sincere gratitudes goes to my supervisor Doreen Njenje for her guidance advice and
patience throughout the writing of my research project; Lastly, I would like to thank my classmates who
were sources of encouragement and guidance through the writing period.

ABSTRACT
Human Resource Management (HRM), Employee Relations, Conflict handling, Discipline handling,
Training and Employee Performance have been discussed. Theoretical Framework was established on
the basis of a set of Employee Relations comprises of six known practices and a research model was
presented to better understand the relationship between independent variables, mediating variable and
dependent variable. Brief introductions of Employee Relations Practices (Independent Variable)
including Conflict handling, Discipline handling, Training and compensation (Mediating Variable) and
Employee Performance (Dependent Variable) were provided to understand their role. Data was collected
through Assessment Questionnaire which was sent to 42 employees and managers of a total of 3 hotel
organizations running with at least an operational and an Employee Relations Department. Survey
technique was used to the selected hotels that were involved in the study. Data was collected using a
close ended questionnaire. Data analysis was done using, frequencies, table, charts and graphs. The
validity of the research instrument was achieved through the professional judgment of the research
supervisor who analyzed and ratified that the questionnaire covered all the objectives. Reliability of the
instrument was determined through a pilot study. Findings revealed that majority of the respondents did
support discipline handling. Accountability records are kept on cash basis. Findings also revealed that
majority of the hotel staff measure compensation techniques to the performance of their businesses.
Profitability is widely used as a measure of employee performance; workers provide a strongest linkage
to successful business performance. Majority of the hotel staff adopted training for each performance
indicator and majority do use compensation for performance appraisal. Findings showed that there is a
strong positive relationship between training systems and employee performance. This implies that
training affects performance of employees

CHAPTER ONE
INTRODUCTION
This chapter gives the background of the study, statement of the problem, research objectives, and
research questions, significance of the study, scope of study and limitations of the study.
1.1 BACKGROUND OF THE STUDY
Employee Relations is a set of organizational functions and practices that deals with issues related to
people as staffing, compensation and benefits, performance management, organization development,
health and safety, communication, and administration. Employee Relation Practices are viewed as
ambiguous over the past years. Competition forced Employee Relations to perform a strategic role as a
business partner instead of adopting ER practices only to take disciplinary actions and advocating
employees. Michael (2005) defined that Employee Relations is to manage relationship between
employer and employees with ultimate objectivity of achieving optimum level of productivity in terms
of goods and services, employee motivation taking preventive measures to resolve problems that affect
adversely the working environment. Employee Relation Managers exercise their expertise to provide
guidelines to the line managers how to improve performance and behavior of the employees. Employee
Relation Managers provide assistance to the Business Managers in resolving employee grievances,
disputes and legal matters. This is one of the basic responsibilities of Employee Relations Department to
provide information to internal customers about rules, regulations, policies, goals and targets of the
organizations to communicate vision and mission of the Management.
Companies provide best quality services enjoy high level of customer retention and comparatively good
rate of employee retention. Customers Retention leads to good business and ultimately increases

employee retention level. Retention of employees refers to satisfied employees that results loyal
customers. Employees are considered as internal customer as they require the same level of satisfaction
against their services rendered for the company as the customer of corporate services or corporate
products requires. Employee Relations deal its employees as its customer because ER Managers run
their day to day business with the help of its employees and for these employees. Satisfied customers
exhibit revenue growth and firms level of performance. Progressive Employee Relations practices are
found behind success of leading organizations. ER practices are commonly known by the traditional
titles but it is up to the management that chooses the best fit practices to fulfill the requirements
matching to the culture of the organization. Organizations implement Employee Relation Practices to
polish skills of its employees which ultimately lead to better organizational performance.
ER practices impart a significant role to enhance performance of organizations indirectly. Performance
of employee depends upon job satisfaction, compensation and benefits structure, reward plans,
promotions, motivation, environment, training and succession planning. Along with this, modern tools,
techniques and sophisticated technology used by organizations for Employee Relations create
competitive advantage over competitors. Performance Management of Employees is a complex and
integrated process of setting up a common employees understanding about targets to be achieved in an
organization and aligning the corporate objectives with the measures like skills, competencies required
for a job, employee development plans and the ultimate results delivered by them. The main focus of
performance management is on continuous improvement, learning advanced and new technologies and
skill development to achieve set targets through overall corporate strategy and to construct a workforce
that can perform with the highest standards. The responsibilities of Employee Relations Department
have been viewed as ambiguous over the past years. By the evolving Information Technology and
arising need for new management techniques ER professionals were given importance. ER department
7

enriches organization from Job Identification to Exit Interviews. It was not clear to intellectuals whether
to assign manpower handling duty to Accounts or to Admin Managers. ERD was not clear in its
responsibility whenever established. ERM was called on to develop systems to increase performance of
Smith (2010).
Since the evolution of modern ER Management, motivated employees and employee turnover in an
organization have been the core issues for ER Managers. Business managers need motivated employees
and want to retain experienced employees but did little to find real time solutions. This study has been
conducted to explore practices and theories to retain experienced employees and to motivate them at
work stations. Issue of employee retention affects the performance of the entire company. Organizations
are realizing that their people are, by far, their most important asset. Motivation creates passion leading
to performance. We came up with some useful rewards that cost less but resulted significantly. The most
effective were Appreciation Letters, paid Time off from work, Self-respect, Flexible timing and lunch
hours and performance review meetings. Organizations motivate employees by investing in them
financially and emotionally and in return they result positively Smith (2010).
1.2 STATEMENT OF PROBLEM
Arbab, Mahmood, Ayoub, & Hussain (2011) reported employee retention rate at Serena hotel due to
Training and development, balanced working life and satisfaction level of employees at jobs, reward or
salaries affected their retention level least. Prestige, learning environment, promotions at upper levels,
career growth, power to take decisions and ownership, facilities, ease of communication, retirement
plans and flexibility in work are the reason of employee retention and motivation at Sarena. These
factors ultimately enhance the employee performance in hospitality industry. Howes (2010) researched
that better communication and attention to personal needs of employees are to improve motivation and
8

performance. Smith (2010) stated that Nigerian Organizations who are focusing on workforce
development, are moving towards a more competitive and productive workforce. Successful companies,
who invest in skills development process of employees and recognize efforts of employees, improved
their profits and financial figures far more than other do.
Hansen (2009) stated that Air Force asked members to increase productivity as significant downsizing
created a need for HR Improvement and employees had to perform more. Air Force sent officers to get
knowledge and skills at Staff Colleges. Werbler & Harris (2009) researched that employees are ready to
make an extra effort if they are satisfied with strategic decisions of their organizations. Employees give
importance to employers for their communication procedures that affect their efficiency and motivation
level. Poor communication from management is always at the top of the list. Too many rules, less career
enhancement plans, sense of being ignored, absence of training, complex strategy are far below in the
list. This study is an attempt and aimed to examine Employee Relations strategies on Employee
Performance in the Hospitality Industry of Kenya.
1.3 OBJECTIVES
1.3.1

General Objectives.

The broad objective of the study is to examine Employee Relations strategies on Employee Performance
in the Hospitality Industry of Kenya.
1.3.2 Specific Objectives.
The specific objectives of the study are:
i.

To determine how discipline handling affects employee Performance in the Hospitality Industry
of Kenya.
9

ii.

To examine how compensation influence employee Performance in the Hospitality Industry of

iii.

Kenya.
To assess how training influences employee Performance in the Hospitality Industry of Kenya.

iv.

To determine how conflict handling influence employee Performance in the Hospitality Industry
of Kenya.

1.4 RESEARCH QUESTIONS

i.

How does discipline handling affect employee Performance in the Hospitality Industry of

ii.
iii.

Kenya?
Do compensation influence employee Performance in the Hospitality Industry of Kenya?
Does training influence employee Performance in the Hospitality Industry of Kenya?

iv.

How do conflict handling influence employee Performance in the Hospitality Industry of Kenya?

1.5 SIGNIFICANCE OF THE STUDY

Research indicates that a healthy relation with your fellow workers would ease the work load on you
and in turn increases your productivity. One cannot do everything on his own. Responsibilities must be
divided among team members to accomplish the assigned tasks within the stipulated time frame. If you
have a good rapport with your colleagues, he is eager to assist you in your assignments enhancing
Employee Performance in the Hospitality Industry of Kenya.
The study was beneficial to Individuals that are more serious towards their work and feel like coming to
office daily. They do not take frequent leaves and start enjoying their work. Employees will stop
complaining against each other and give their best

10

Findings of this research provided better insights into employees feeling secure and confident and thus
deliver their best. It is okay if employees share their secrets with their colleagues but they should know
where to draw the line. A sense of trust is important.
1.6 SCOPE OF THE STUDY
The study focused on Employee Relations strategies on Employee Performance in the Hospitality
Industry of Kenya. The study targeted 198 employees of total 3 hotel organizations running with at least
operational and Employee Relations Department. The study was conducted from August 2016 to
December 2016.
1.7 LIMITATION OF THE STUDY
The respondents were reluctant to fill the questionnaire saying that the information is confidential and
felt guilty of airing their views. However the researcher assured them that the information was solely for
the research study.
The employees were busy doing their work when the researcher visited their organization. However,
through persistence the researcher made appointments when the respondent were free even if its on
weekend to collect data and the researcher was able to get accurate data.
A few of the respondents were not fully aware of the relationship between Employee Relations
strategies and Employee Performance despite the service being available in the organization. They
complained that the subject was too technical. Prior explanation made issues clear and they responded
accordingly.

11

CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
The aim of this chapter is to try and put together what others have written about the topic that is
addressed in this research work and to try and bring out my own thoughts about what is found in current
literature especially in relation to the topic.
2.1 Theoretical Review
2.1.1 Attraction-Selection-Attrition (ASA) Theory
If an organisation is able to find and employ the right people with the right knowledge, abilities and
skills in the right numbers, the organisation is immeasurably better placed to deal with the opportunities
and threats arising from their operating environment than competitors who are always struggling to
build and maintain their workforce. Johnson and Scholes (2002) concurs that the starting point of
successful strategies is acquiring, retaining and developing resources of at least threshold standards and
it is applied to people as a resource Nzuve, (1997) emphasizes that recruitment is a search for qualified
people to apply for existing job position ornewly created ones. He further identifies the process of
recruitment as critical The process cannot be started until the organisation decides what type of
employees are required and how many. Further, based on attractionselection- attrition (ASA) theory
(Schneider et al., 1995), argues that effective selection systems should produce high person-organisation
fit, enhancing employee attachment to the organisation. Also, employee awareness of rigorous hiring
and practice of due diligence during hiring may enhance personal competence perceptions, and evidence
shows that perceived personal competence is strongly related to commitment (Matheiu and Zajac,

12

1990). This suggests that the process of recruitment can enhance employee commitment. Prior research
supports this prediction (Caldwell et al., 1990).
2.1.2 The Equity Theory
The equity theory argues that employees seek to maintain equity between the input that they bring into a
job (e.g. education, time, experience, commitment, and effort) and the outcome they receive from it (e.g.
promotion, recognition, increased pay) against the perceived inputs and outcomes of other employees.
Equity theory proposes that individuals who perceive themselves as either under-rewarded or over
rewarded will experience distress, and that this leads to efforts to restore equity within the organisation.
Failing to find any, Messmer, (2000) argues that they may behave in ways that harm the organisation:
For example, they may quit the organisation or if they stay, they may react by withholding effort in
order to restrict output or lower quality, or embark on deliberate sabotage of equipment.
2.1.3 Value Congruence Model
Value congruence model, measures the "fit" between the personal values of an employee's and those of
coworkers and the company itself. Value congruence can be broken into three main subcategories:
person environment ("P-E"), person-person ("P-P"), and perceptual fit ("PF"). Person-environment
congruence refers to a harmony between the personal values of the employee and corporate culture of
the company in which he or she works. Someone with a high P-E congruence feels personally in tune
with his company's stated policies and goals. Conversely, someone with a low P-E congruence feels a
sense of disharmony between his own values and the stated policies and goals of his company. A high PP congruence indicates a sense of solidarity with one's coworkers in terms of shared values and goals. A
low P-P congruence indicates a sense of isolation from coworkers brought about by an absence of
shared values. Finally, strong PF suggests a strong correspondence between the values that an employee

13

perceives his company to have (whether or not the company actually does) and the values that his coworkers perceive the company to have (again, whether or not it actually does). A weak
PF implies that an employee's perception of his company's values differs significantly from that of his
coworkers.
Research has shown that P-E and PF congruence are important measures of employee satisfaction,
commitment, and likelihood of turnover, although P-P congruence has little bearing on these parameters.
Moreover, PF is especially important in establishing harmonious relations between workers and
managers. These measures give corporations a robust paradigm on the basis of which to create longterm personnel plans and productivity growth targets: in particular, P-E and PF congruence allow
companies to discover dysfunctional work relationships and clarify misperceived company policies and
goals. With these tools in hand, companies can look forward to increased employee retention and,
ultimately, improved company performance.
Figure 2.1 Theoretical framework
Attraction-Selection-Attrition (ASA)
Theory

Performance in hospitality
industry of Kenya

The Equity Theory

Value Congruence Model

Researcher (2016)
2.2 Empirical Review

14

In any competitive business environment, both locally and globally, it is common for companies to offer
employees attractive, lucrative and competitive remuneration packages. These are directly linked or
inter-related to improving individuals job competency, retaining high achievers and finally achieving
the organizational performances and goals. An attractive remuneration package has been a norm of any
employment contract. The appraisal and rewards systems for employees are now closely linked to the
performance measurement indicators of the companies. If such reward does not commensurate with
their job performance, this can lead to low motivation and high attrition, finally affecting service
delivery (Thum & Sardana, 2012).
Remuneration and rewards are thus very important to ensure that adequate benefits and rewards
packages can significantly increase the motivation of an individual to increase their work performance.
Rewards systems have traditionally been designed to attract and retain productive employees as well as
to motivate them to increase their effort and output towards achieving the organizational goals (Phillips
and Fox 2003). Reward has therefore been seen to be a vital instrument in employee performance. This
is because a well rewarded employee feels valued by the company. The employee is thus encouraged to
work harder and better if they are aware that their well-being is taken seriously by their employers, and
that their career and self-development are also being taken care of by their company thus increasing
employee performance, (Condly et al, 2005)
Moreover, Markova & Ford (2011) mentions that the real success of companies originate from
employees willingness to use their creativity, abilities and know-how in favor of the company and it is
organizations task to encourage and nourish these positive employee inputs by putting effective reward
practices in place. Lotta, (2012) also contends that motivated employees are more productive, more
efficient and more willing to work towards organizational goals than the employees who are
experiencing low levels of motivation.
15

2.3 Conceptual review

2.3.1 Discipline handling relationship on employee Performance in the Hospitality Industry of
Kenya.
Rules, Regulations, Procedures, Laws, Constitutions and religious books define a framework to perform
the routine tasks in personal and professional life within a circle. These are called discipline and
disciplinary procedures which are defined by the organizations are set to maintain discipline. The
disciplined forces usually bring better results that undisciplined forces. Same is the scenario in
hospitality sector that the service providers perform as per defined procedures set by the hoteliers
keeping in view rating standards. Obviously these disciplinary procedures bring about better
performance and streamline work attitude to satisfy the corporate objective that is to please the guest.
Abiding by the rules of the hotel during shift hours creates a chain of tasks done that brings good results
within given time. Leadership defines ways and traditions to the followers and make them to follow
their prescribed and defined way in order to achieve set targets through motivation, decision making,
training and orientation. Participative leadership tends towards making collective decisions after taking
recommendations and suggestions from subordinate line staff therefore establishing a sense of
participation in decision making process for better results and to create sense of responsibility one
decisions are taken.
2.3.2 Compensation and employee Performance in the Hospitality Industry of Kenya.
Markova & Ford (2011) mentions that the real success of companies originate from employees
willingness to use their creativity, abilities and know-how in favor of the company and it is
organizations task to encourage and nourish these positive employee inputs by putting effective
compensation practices in place. Lotta, (2012) also contends that motivated employees are more
productive, more efficient and more willing to work towards organizational goals than the employees
16

who are experiencing low levels of motivation. Mendonca, (2002) also sees compensation and
compensation system that is based on the expectancy theory, which suggests that employees are more
likely to be motivated to perform when they perceive there is a strong link between their performance
and the compensation they receive. Guest, (2002) is of the opinion that compensation is one of the keys
that motivate employees to perform as expected. Performance-related schemes compensation a group or
team of employees with a cash payment for achieving an agreed target. These schemes are all designed
to enhance company performance by aligning the interests of employees with the financial performance
of their companies (Chin-Ju, 2010).
2.3.3 Training influence on employee Performance in the Hospitality Industry of Kenya.
Training is a well planned and organizaed process to mend and improve employees attitude, their level
of knowledge, enhancing skills and changing behaviour through continuous learning and feeding in
order to achieve a set level performance. Its purpose is to develop abilities, to increase job satisfaction
and motivation among employees, to enahnce process efficiencies to gain financial benefits, to adopt
new technologies and to increase innovations, to reduce employee turnover, to build company image, to
manage risk, to provide chance of growth within the Organization, to have ample number of well trained
staff to meet the corporate objectives, To provide information about company's history, to provide
introduction of the other departments of the hotel and to provide information about Human Resource
policies, rules and regulations resulting Reduced Learning Time.
Memon (2009) researched that the employees de leads to the improvement in the decision making
participation, empowerment, improved system of goods production, training and skills development
sessions of employees and performance contingent incentives are the tools to improve the performance
of employees that leads to the performance of the organization. The firms create environment that

17

provide knowledge and skills in development of workforce that provides competitive advantage because
it is difficult for competitors to imitate these skills.
Amernic (2007) narrated that it has been identified that training and development is associated with
improved recruiting procedures, well defined system for rewards and procedure for accountability,
friendly and open environment at workplace, style of the Management to communicate with the
employees and wise and effective use of resources. The ability to create exclusive team through inhouse training and development sessions are cost effective way to get sustainable advantage.
2.3.4 Conflict handling influence employee Performance in the Hospitality Industry of Kenya.
In its basics the conflict is difference of opinion. This difference of opinion occurs due to some reasons
like your targets and goals or preferences, no chemistry between decision makers, lack of available
resources, style of interacting with people or communication and sometimes the reason of conflict is
ethics and principles. Confliction does not matter but how the organizations handle conflicts does matter
a lot. It has been observed that the most separations are because of conflicts over communication style
and personalities and more over these separations take place where conflicts are not handled properly.
Nankervis (1993) stated that the role of conflict resolution teams is not effective in the Australian hotel
industry. A comparative study suggests that maximum from hotel industry have about 50% of their
employees involved in union activities and they take it as their basic right to enjoy unionism to solve
their issues on wages and benefits.
Figure 2.3 conceptual framework
Independent

Dependent

Discipline handling

Employee Performance in the Hospitality Industry of Kenya.

Compensation
18

Training

Conflict handling

Researcher (2016)
2.4 Research Gaps
Employee relation can provide a practical understanding of employee performance in the hospitality
industry among the hotel industry. From a practical standpoint, besides past research done on the topic
by various researchers, the study provided hotels with a better understanding of the determinants of
enhanced employee relation and be able to address and review their employee relation strategies.

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter highlights the various methods and procedures the researcher adopted in conducting the
study in order to answer the research objectives raised in the first chapter. The chapter was organized in

19

the following structure: the research design, target population, sampling design and sample size, data
collection methods, research procedures, data analysis methods and lastly the ethical issues
3.2 Research Design
Descriptive research design was applied to this study. Descriptive research is considered appropriate
because subjects are normally observed in their natural set up and can result in accurate and reliable
information (Britt, 2006). The descriptive survey research aims at describing phenomena or narrating
how various behaviors and events occur. Therefore it was useful in describing employee relations as the
dependent variable by exploring four different independent variables.
3.3 Target Population
A population is defined as the total collection for elements about which we wish to make some
inferences (Cooper and Schindler, 2003). Based on the customers different age brackets, income levels,
gender, ethnic and racial backgrounds and occupation. The target population was representative enough
to respond to the research questions. Therefore the studys target population was 12 employees and 10
managers of selected 8 hotel organizations running with at least operational and Employee Relations
Departments. The table below shows the target population.
Table 1: Target Population
Hotel
Stem Hotel
Merica Hotel
Kunste Hotel
Lanet Matfam Resort
Sarova Lion Hill Game Lodge
Mama's Guest House
Peniel Guest House
Brownie's Guesthouse
Total

Managers

Number of employees

Total

1
1
1
1
2
2
1
1
10

2
2
1
1
2
1
2
1
12

3
3
2
2
4
3
3
2
22

20

Source: Researcher 2016

3.4 Sampling Design and Procedures
Survey technique was used to select the hotels that were involved in the study..
Table 2: Sample Size
Hotel

Managers

Number of employees

Total

1
1
1
1
2
2
1
1
10

2
2
1
1
2
1
2
1
12

3
3
2
2
4
3
3
2
22

Stem Hotel
Merica Hotel
Kunste Hotel
Lanet Matfam Resort
Sarova Lion Hill Game Lodge
Mama's Guest House
Peniel Guest House
Brownie's Guesthouse
Total
Source: Researcher (2016)
3.5 Data Collection Tools and Instruments

Structured questionnaires were used as the data collection instruments.

The questionnaires were

adopted because they permitted detailed and in-depth information which made clarification possible
without wasting time. The instruments were designed in line with the studys objectives as well as
research questions. The questionnaires were administered on a drop and pick immediately basis.

3.6 Data Analysis and Presentation

Data collected from the field was edited and coded for completeness after which it was summarized and
analyzed using descriptive statistics such as frequencies and percentages. Presentation of the results
were done in the form of tables, charts, and graphs which facilitated clear interpretation of results and
drawing of conclusion. Thereafter discussions followed immediately explaining on the same.
3.7 Reliability and Validity of the Research Instrument

21

Reliability of the instrument was determined through a pilot study to be carried out at Avenue Suites
Hotel in Nakuru town where 6 questionnaires were randomly issued out to employees. The instrument
yielded desirable results which was depended upon hence it was adopted for the study.
The validity of the research instrument was achieved through the professional judgment of the research
supervisor who analyzed and ratified that the questionnaire covered all the objectives.

22

CHAPTER FOUR
4.0 DATA ANALYSIS AND PRESENTATION OF FINDINGS
4.1 Introduction
This chapter discusses data analysis and presentation of the research findings, the chapter explains a
broad range of procedures and techniques applied to analyze and present the data obtained through the
use of the questionnaires. The analysis of the response rate was conducted and the gathered data was
analyzed though the use of quantitative and qualitative techniques.
4.2 Analysis of the response Rate
Table 4.1 Response Rate
Hotel

sample

Stem Hotel
Merica Hotel
Kunste Hotel
Lanet Matfam Resort
Sarova Lion Hill Game Lodge
Mama's Guest House
Peniel Guest House
Brownie's Guesthouse
Total
Source; Researcher (2016)

3
3
2
2
4
3
3
2
22

23

Actual
feedback
2
2
2
2
3
3
3
2
19

percentage
11
11
11
11
15
15
15
11
100

Fig 4.1 Response Rate

Response rate
Stem Hotel

Merica Hotel

Kunste Hotel

Lanet Matfam Resort

Sarova Lion Hill Game Lodge

Mama's Guest House

Peniel Guest House

Brownie's Guesthouse
11%

11%

15%

11%
11%

15%
15%

11%

Source; Researcher (2016)

The figure presents the analysis of the response rate by showing the sample size and the actual response
rate of the study respondents. The actual response rate shows the number of respondents from the total
sample size in each population category that answered and forwarded back the questionnaires for data
analysis. The sample size consisted of 22 respondents who were issued with the questionnaires and the
actual response rate consisted of 19 respondents. This indicated that the response rate was high as only 3
respondents who failed to submit the questionnaires for data analysis.
4.3. Quantitative analysis
Quantitative analysis was carried out to determine the frequency in which the respondents answered the
research questions.

24

4.3.1 Gender
To determine the gender of the respondents, the findings were as follows;
Table 4.2 Gender
Gender
Male
Female
Total
Source; Researcher (2016)

Frequency
11
8
19

Fig 4.2 Gender

25

Percentage
60%
40%
100%

Source; Researcher (2016)

The chart shows that 60% of the respondents who participated in the study were males and 40% were
females. This indicates that there were more males than females in the study.

26

4.3.2 Age
Table 4.3 Age.
Age
18-30
31-40
41-50
51 and over
Total
Source; Researcher (2016)

Response
7
6
5
1
19

Percentage
40%
30%
25%
5%
100%

Fig 4.3 Age of respondents

Source; Researcher (2016)

The chart shows the age of respondents who participated in the research study. Majority of the
respondents who were 40% were in the age bracket of 18-30 years. This indicated that majority of the
respondents were young.
4.3.5 To determine how discipline handling affects employee performance in the hospitality
industry in Kenya
Table 4.4Effect of discipline handling
Response

Frequency

27

Percentage (%)

Yes

15

80%

No

20%

Total

19

100%

Source; Researcher (2016)

Fig 4.4
Kenya

Influence of discipline handling on employee performance in the hospitality industry in

Source; Researcher (2016)

The figure shows respondents views on the discipline handling affects on employee performance in the
hospitality industry in Kenya; the figure demonstrates that 80% of the respondents answered yes
expressing that discipline handling greatly affected the employee performance in the hospitality industry
in Kenya since the lack of discipline handling failed to contribute towards monitoring and retention of
employee progress and profits received respectively. Only 20% of the respondents answered no.
Table 4.5 Influence of discipline handling on employee performance
Response

Frequency
28

Percentage

Very effective

10

60%

Effective

20%

Average

12%

Not effective

8%

Total

19

100%

Source; Researcher (2016)

Fig 4.5 Influence of discipline handling on employee performance

Source; Researcher (2016)

The figure shows how the respondents rated the influence of discipline handling on employee
performance. The figure presents that, 60% of the respondents rated discipline handling to be very
effective, 20% effective, 12% average and 8% not effective.

4.6.2. To examine how compensation influences employee performance in the hospitality industry
in Kenya
Table 4.6 Relationship between compensation and employee performance
Response

Frequency

Percentage (%)

Documented policy

13

68%

Promotion based on performance

12%

Overtime pay

20%
29

Total

19

100%

Source; Researcher (2016)

Fig 4.6 Relationship between compensation and employee performance

Documented policy

Promotion based on performance

Overtime pay

20%
12%
68%

Source; Researcher (2016)

The figure presents that 68% of the respondents expressed that documented policies enhanced the
employee performance. 12% of these respondents further explained that promotion based on
performance led to improved employee performance. Another 20% of the respondents indicated that
overtime pay led to effective employee performance.
Table 4.7 Effectiveness of compensation based on employee performance in the hospitality
industry in Kenya
Response
Frequency
Percentage
Very effective

11

60%

Effective

20%

Average

12%

Not effective

8%
30

Total

19

100%

Source; Researcher (2016)

Fig 4.7 Effectiveness of compensation based on employee performance in the hospitality industry
in Kenya

Source; Researcher (2016)

The figure shows how the respondents rated the effectiveness of compensation based on employee
performance in the hospitality industry in Kenya. The figure presents that, 60% of the respondents rated
compensation to be very effective, 20% effective, 12% average and 8% not effective.
4.3.7. To assess how training influences employee performance in the hospitality industry in
Kenya
Table 4.8 Measures of training
Category

Frequency

Percentage (%)

Customer satisfaction

50%

Ability to satisfy staffs

25%

Ability to control expenses

20%

31

Facilitating employee development

17%

Total

19

100%

Source; Researcher (2016)

Fig 4.8: Measures of training

Source; Researcher (2016)

The figure presents that 50% of the respondents expressed that training led to customer satisfaction.
25% of these respondents further explained that training led to employees ability to satisfy staff.
Another 20% of the respondents answered that training led to ability to control expenses while finally
17% of the respondents indicated that training led to facilitating employee development.
Table 4.9 Training leads to effective employee performance
Response

Frequency

Percentage

Strongly agree

40%

Agree

16%

Slightly agree

24%

Strongly disagree

10%

Disagree

4%

32

Undecided

6%

Total

19

100%

Source; Researcher (2016)

Fig 4.9 Training leads to effective employee performance

Source; Researcher (2016)

The figure shows respondents opinions on whether training leads to effective employee performance.
The figure presents that, 40% of the respondent strongly agreed, 16% agreed, 24% slightly agreed, 10%
strongly disagreed, 4% disagreed and 6% undecided.
4.3.8 To determine how conflict handling influence employee performance in the hospitality
industry in Kenya
Table 4.8 Measures of conflict handling
Category

Frequency

Percentage (%)

Collaborating

45%

Avoiding

22%

33

Accomodating

18%

Compromising

15%

Total

19

100%

Source; Researcher (2016)

34

Fig 4.8: Measures of training

Conflict handling
Collaborating

Avoiding

Accomodating

Compromising

15%
45%

18%

22%

Source; Researcher (2016)

The figure presents that 45% of the respondents expressed that collaborating led to effective employee
performance. 22% of these respondents further explained that avoiding led to effective employee
performance. Another 18% of the respondents answered that accommodating led to effective employee
performance while finally 15% of the respondents indicated that compromising led to effective
employee performance.
4.4 Qualitative Analysis
The respondents were guided on how to answer the questionnaires in order to minimize data errors. The
data obtained from the questionnaires was critically examined to detect errors and the questions that
were not answered properly, all the mistakes were collected and poorly answered questionnaires were
exempted from analysis process. This increased accuracy, consistency and reliability of the gathered

35

facts. Data completeness and uniformity was maintained and this facilitated application of other data
analysis techniques like coding, data organization, data classification and tabulation.
Coding was the second step of qualitative analysis; this involved assigning the collected data in the
questionnaires numerical values where the response rate of each respondents category was determined,
the respective response rates in each category were added together to present the total response rate, the
percentage of each respective category response rate was calculated out of the total response rate.
Coding ensured efficient analysis since it reduced the gathered data into small number of classes which
contained the most important information. The coded data provided systematic information that easily
passed a message to the reader.
Data organization was applied, where gathered findings were organized under each respective
respondents categories, this involved putting the study findings under categories. Data reduction was
also used through the use of a simple scale and this ensured that all the gathered data was maintained
within the three categories where large volumes of raw data was reduced into homogenous group so as
to get meaningful analysis
Data classification was applied and this involved grouping of data into to two classes, this involved the
respondents who answered yes and respondents who answered no. the response rate from each
respondent category were grouped in each class. The relevant information was put together to help the
researcher get a solution to the research problems. Tables were used to present the analyzed data and
charts were used to give a visual presentation of the study findings.

36

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Introduction
This chapter explains the summary of findings, conclusions and recommendations of the research study.
These involved an in-depth explanation of the analyzed and presented findings in quantitative analysis.
The research questions were discussed and the study conclusions were drawn from the findings. The
study gave several recommendations and a suggestion for further studies was encouraged.
5.2 Summary of Findings
Findings revealed that majority of the respondents did support discipline handling. Accountability
records are kept on cash basis. Findings also revealed that majority of the hotel staff measure
compensation techniques to the performance of their businesses. Profitability is widely used as a
measure of employee performance; workers provide a strongest linkage to successful business
performance. Majority of the hotel staff adopted training for each performance indicator and majority do
use compensation for performance appraisal. Findings showed that there is a strong positive relationship
between training systems and employee performance. This implies that training affects performance of
employees.

37

5.3 Conclusion and recommendation

This study finds overall support for the statement that Employee Relations Practices Impact positively
on Performance of Employees working in Hospitality Industry of Kenya as the relationship specified is
found to be significant. Therefore, the proposed direct relationships between a set of Employee Relation
Practices and Motivation and between Motivation and Employee Performance are empirically validated.
The mediating effect analysis reflected that a set of six famous Employee Relations Practices impact
Employee Performance significantly through Motivation.
The area of study is restricted to Nakuru as the researcher believes that the resolution in these big town
could be relevant to the hotel industry of Kenya. There was not a good response from hoteliers while
returning filled questionnaire forms. Another constraint in this research was information. The hotel
industry in Kenya in general is very loath to provide documented information saying that policies of the
hotels are secret and therefore cannot be provided. However, through personal contacts the required
information somehow gathered to complete this study and there were some hoteliers who helped by
providing the copies of policies and procedures. A matter of concern that could have been obvious is the
confidentiality of the responses to the questions asked. The fact is that the respondents, who are
employees of hotel industry that is somehow orthodox in its nature, were given the questionnaire to
complete on their own. The researcher had no way to know if the respondents got assistance of other
employees in completing the questionnaire or they did it by their own.

38

Conventionally focal point of Employee Relation Management system has been viewed as short-term
and the system has been used by the most of the organization and ER Managers bureaucratically instead
of aristocratic are trying to enhance employee performance. ER Practitioners and researchers are agreed
that human resources are a source of competitive advantage through strategically managed and
implemented ER practices. Employee Relations can result positively significantly only if best fit set of
ER Practices are adopted. Employee Relations Managers mostly focus on administrative policies and
procedures to maintain performance of employees through discipline and increments which is not a right
way to get results. Research proved that Motivational practices effect employee performance positively.
5.6 Suggestion for further studies
The research study focused its research activities on the three factors that were addressed by the specific
objectives of the study; this made the study not to explore fully the effects of effective employee
performance on the performance of hotels. Suggestions for further studies is therefore encouraged to
contribute towards identification of factors that affect employee performance which were not covered by
this study. Further studies are also advisable to facilitate identification of what determines the decision
to adopt e-recruitment system by hotels in Nakuru County, examining the benefits and obstacles facing
hospitals in the adoption of e-recruitment systems; and looking at future plans that Nakuru County
hotels have regarding effectiveness of employee performance.

APPENDIX I
REFERENCE
39

Afaq, F., & Khan, A. (2008). Relationship of Training With Employees Performance In
Hoteling: Pearl Continental Hotel Pakistan. Development Dimensions International Inc.
Ahmad, S., & Schroeder, R. G. (2003). The Impact of Human Resource Management Practices
on Operational Performance: Recognizing Country and Industry Differences. Journal of Operations
Management , 21, 1943.
Armstrong, Michael (2005). Armstrongs Handbook of Management and Leadership:
Approaches to HRM and L&D. Kogan Page Limited Publishing. United States
Amernic, J. (2007). The Impact of Human Capital Management on Shareholder Value. Drake
Business Review , 1 (32).
Anton, S.W. (2009). The Role of Senior Leadership in Human Capital and Talent Management.
ARTDO International Conference. Penang, Malaysia.
Arbab, A., Mahmood, B., Ayoub, M., & Hussain, S. (2011). An Empirical Study of Retention
Issues in Hotel Industry: A Case Study of Serena Hotel, Faisalabad, Pakistan. European Journal of
Economics, Finance and Administrative Sciences , 29.
Arthuer, W., Bennett, W., Edens, P., & Bell, S. (2003). Effectiveness of Training in
Organizations: A Meta-Analysis of Design and Evaluation Features. Journal of Applied Psychology Vol.
88 , 234 - 245.
Asghar, W. & Siddi, S. H. (2008). Apprenticeship Training in Pakistan: A Comparative Study of
Apprenticeship Practices In Punjab and European Countries. International Journal of Training Research
, 6 (2), 1-19.
Babatia, C., Sipos, G., Ispas, A., & Nagy, A. (2005). Proceedings of the 5th WSEAS
International Conference on Economy and Management Transformation. Leadership style and culture
for innovation in hotel industry.
40

Bacal, R. (1997). The Corporate File: The Role of Human Resource Department.
Baloch, Q. B., Ali, N., Kiani, T.S., Ahsan, A., & Mufti, A. (2010). Relationship Between HR
Practices and Perceived Employees' Performance of Bankers in NWFP, Pakistan (An Empirical
Evidence). European Journal of Social Sciences .
Becker, B., & Gerhart, B. (August 1996). The Impact of HR Management on Organizational
Performance: Progress and Prospects. The Academy of Management, Vol. 39 No. 4 , 779-801.
Boselie, P., Paauwe, J., & Richardson, R. (2002). Human Resource Management,
Institutionalization and Organizational Performance: A Comparison of Hospitals, Hotels and Local
Governments. Erasmus University Rotterdam, Rotterdam School of Economics.
Brown, D. E., & Ostroff, C. (2004). Understanding HRMFirm Performance Linkages: The Role
of the Strength Of the HRM System. Academy of Management Review , 29 (2), 203-221.
Collier, E. (2004). Managing disciplinary application in the hotel Industry. Digital Knowledge .
Conine, C. A. (2011, August). Retrieved January 2012, from HotelNewsNow.com.
Cuthie,

R.C

(2010).

Employee

Motivation

and

Retention.

Retrieved

from

www.refereceforbusiness.com.
Delaney, J. T., & Huselid, M. A. (1996). The Impact of Human Resource Management Practices
on Perceptions of Organizational Performance. Academy of Management Journal , 39 (No. 4), 949-969.
Drucker, P.F (1983). Concept of the Corporation. Transaction Publishers. New Jersey.
Ernst & Youngs Office of Workforce Retention, .. (2000). Organizational Health. The Wall
Street Journal .
Fida, A.D. (2007, September). HR Management and Knowledge Management: A Road Map
Toward Improving Organizational Performance. Journal of American Academy of Business, Cambridge
, p. 124.
41

Francis, J. (2005) Human Resource Developments Contribution to Continuous Improvement

Handy, C. (1999). Understanding Organizations. Oxford University Press Inc.
Handin, K. (2000). Employee Retention. Avatar Resources Inc.
Hansen, J.C. (2009). Human Capital Improvement: A way to Leverage Air Force Financial
Management Transformation: Advanced Education and Training. Texas.
Harold, K. (2003). Project Management: A System to Planning, Scheduling and Controlling.
Blackwell Publishing.
Hofstede, G. (1991). Cultures and Organisations: Software of the Mind. London: Mc Grawhill.
Howes, C.J

(2010).

Organizational

Performance

Strategies.

Retrieved

2010,

from

www.opstrategies.org.
Huselid, M. A. (1995). The Impact of Human Resource Management Practices On Turnover,
Productivity and Corporate Financial Performance. The Academy of Management Journal , 38 (3), 635672.
John. H. (2007). HRM: Strategic Human Resource Management in a Changing Environment.
McGrawhill.
Kalidas, D. A. (2002). The Cultural Relativity of Employee Empowerment: Findings from the
European Hotel Industry . Cross-Cultural Challenges in the Tourism Industry: The Educational
Answers. Barcelona, Spain.
Lewin, R., & Peterson, D. (2000). Research On Unionized Grievance Procedures: Management
Issues and Recommendations. Human Resource Management , 39 (4), 395 - 406.
Marwat, Z. A., Qureshi, T. M., & Ramay, M. I. (2010). Impact of Human Resource Management
(HRM) Practices on Employees Performance A Case of Pakistan Telecom Sector. MA Jinnah
University, Department of Business Admnistration and Social Sciences, Islamabad.
42

Maslow, A. (1943). Motivation and Personality: A Theory of Human Motivation. Psychological

Review Journal, 50, 370-396.
Aslam Memon, .. (2009). Human Capital: A Source of Competitive Advantage Ideas for
Strategic Leadership. Australian Journal of Basic and Applied Sciences .
Memon, A. (2009). Human Capital: A Source of Competitive Advantage Ideas for Strategic
Leadership. Australian Journal of Basic and Applied Sciences .
Minervini, R., & Meyer, M. & Rourke, L. (2003). Human capital management: A Handbook for
South African Managers. Johannesburg:: WriteStuff Publishing.
Nankervis, A. (1993). Enhancing Productivity In The Australian Hotel Industry: The Role Of
Human Resource Management (Vol. 1).
Okoroafor, C. U. (2006). The Dynamics of Good Management / Labour Relations In Nigeria: A
Case Of Hotels And Tourism Sub- Sector. Inter- World Journal of Management and Development
Studies , 2 (1).
Paul B. J. P., & Richardson, R. (2002). Human Resource Management, Institutionalization and
Organizational Performance: A Comparison of Hospitals, Hotels and Local Governments. Erasmus
University Rotterdam, Rotterdam School of Economics.
Paul, A., & Anantharaman, R. (2003 ). Impact of People Management Practices on
Organizational Performance: Analysis of A Causal Model. Intenational Journal of Human Resource
Management , 14 (7), 12461266.
Peters, T., & Waterman, R. (1982). In Search of Excellence. Harper & Row Inc.
Peterson, R., & Lewin, D. (2000). Research On Unionized Grievance Procedures: Management
Issues And Recommendations. Human Resource Management , 39 (4), 395-406.

43

Preacher, K. J. & Hayes A. F. (2008). Asymptotic And Resampling Strategies For Assessing And
Comparing Indirect Effects In Multiple Mediator Models. Behavior Research Methods , 40, 879-891.
Preacher, K. J., & Hayes, A. F. (2004). SPSS And SAS Procedures For Estimating Indirect
Effects In Simple Mediation. Models Behavior Research Methods , 36, 717-731.
Rauf, M. (2008). HRM Sophistication and SME Performance: A Case of Readymade Garments
Manufacturers and Exporters in Lahore, Pakistan. Japanese Journal of Administrative Science Research
Note , 21 (1), 47-60.
Sisson, K., & Bach, S. (1989). Personnel Management. Blackwell Publishers Oxford.
Smith, P.D. (2010). Increasing Productivity: Workforce Training and Development. The Bleaner
Stalk, E., & Shulman. (1992). Competing on Capabilities: The New Rules of Corporate Strategy.
Harvard Business Review , pp. 57-69.
Sultan, M. (2010). Shop steward and Workers Management Council. Punjab Industrial Act
2010 . Lahore: Pak Law Publications.
Ubeku, A. (1983). Industrial Relations in Developing Countries: The Case of Nigeria. London:
Macmillan Press Limited.
Wallace, M. (2003). OSH implications of shiftwork and irregular hours of work: guidelines for
managing shiftwork. Sydney: National Occupational Health and Safety Commission Development.
Werbler, C. & Harris, C. (2009). Effective Communication Positively Impacts Employee
Motivation Levels and Advocacy. Princeton, NJ: Opinion Research Corporation.
Woods, R. H. & King, J. Z. (2006). Leadership and Management in the hospitality industry.

44

APPENDIX II
The cover letter sent to the questionnaire respondents.
Dear Respondent,
This letter is an introduction to the main reason as to why your participation in this questionnaire is
required.
This study is a research study on Employee Relations strategies on Employee Performance in the
Hospitality Industry of Kenya. It is in partial fulfillment of one of the requirements for the attainment of
the award of the bachelors degree in Human Resource from KeMU from where I am currently taking
on my studies.
My research endeavors to generate knowledge to be utilized in understanding training and development
of employees. The study specifically focuses on determine how Employee Relations strategies affect
Employee Performance. As a representative of your hotel, your views are of importance in my study and
I would appreciate you responding to this questionnaire. This is purely for academic purpose and your
response will be kept confidential and anonymous.
Thank you for your time, co-operation and contribution to my study. I shall be pleased to send you a
copy of the findings of the study if you desire so.
Yours faithfully,

Santalo Lekishon.

45

RESEARCH QUESTIONNAIRE
SECTION 1
Respondents Name/Optional .....
Tick as appropriate
1. Gender :
Male

()

Female

()

Tick as appropriate
2. Age:

( ) 18- 30 yrs
( ) 31- 40 yrs
( ) 41 50 yrs
( ) 51 years and over

46

SECTION 2
DISCIPLINE HANDLING
1. Have you had any form of discipline handling since you joined the organization?

Yes ( )
No ( )

If yes, what are the methods of facilitation of discipline handling you employ?

Lecture

()

Demonstrations

()

Discussions

()

Suspensions

()

2. The methods used during discipline handling have any impact on employee performance?
Yes ( )
No ( )
How will you rate the quality of the discipline handling programme/s for which you have participated?
a) Very poor

()

b) Poor

()

c) Average

()

d) Good

()

e) Very good

()
47

f) Excellent

()

TRAINING
3. Have you had any form of training since you joined the organization?
Yes ( )
No ( )
If yes to the question above, please continue with the questions below.
How were you selected for training?
a) On joining the company

()

b) Supervisors recommendation

()

c) Compulsory for all employees

()

d) Upon employee request

()

e) Performance appraisal

()

f) Dont know

()

4. How often do you undergo training?

a) Quarterly

()

b) Every six months ( )

c) Once a year

()

d) Every two years

()

5. How relevant were the trainings you received to your work?

a) Not relevant at all ( )
b) Not relevant

()

c) Not sure

()

d) Effective

()
48

e) Very effective

()

6. Would you require further training for motivation towards performance improvement to enable
you contribute to increased productivity?
a) Yes ( ) b) No ( )
If yes to the question above, please provide reasons as to why below.

SECTION 3
Compensation
7. Please read each statement and then put a score in the box, which best indicates how strongly you
agree or disagree with the statement.
Strongly
disagree
a.

The

hotel

has

documented (1)

compensation policy
b. The compensation of employees is
systematic
c. The compensation of employees is
within a very close range
d. Employees are compensation based
on management objectives

49

Disagree

Neutral

Agree( Strongly
Agree

e. Employees of the same job group

earn similar compensations
f. There are wide differences in
compensation

across

different

job

g. The hotel pays for overtime

groups

h. Promotion to the next job group is

based on performance

Conflict handling
8. Please read each statement and then put a score in the box, which best indicates how strongly you
agree or disagree with the statement.
Strongly
disagree
a. Compromising helps in conflict (1)
handling
b. Avoiding leads to effective conflict
handling
c. Collaborating leads to improved
conflict handling
d. Accommodating leads to improved
conflict handling

50

Disagree

Neutral

Agree( Strongly
Agree

9. What problems do you face with regard to conflict handling within your organization?

10. Please specify any ways you think conflict handling in your organization can be improved.

Thank you for time and your responses!

51