INFLUENCE OF PERFORMANCE MANAGEMENT ON
JOB SATISFACTION AMONG EMPLOYEES IN
INSURANCE INDUSTRY IN KENYA
BY
BONAVENTURE NABONGO MAKOKHA
UNITED STATES INTERNATIONAL UNIVERSITY-
AFRICA
SUMMER, 2021
INFLUENCE OF PERFORMANCE MANAGEMENT ON
JOB SATISFACTION AMONG EMPLOYEES IN
INSURANCE INDUSTRY IN KENYA
BY
BONAVENTURE NABONGO MAKOKHA
A Research Project Report Submitted to the Chandaria School of
Business in Partial Fulfilment of the Requirement for the Degree of
Masters in Business Administration (MBA)
UNITED STATES INTERNATIONAL UNIVERSITY-
AFRICA
SUMMER, 2021
ii
STUDENT’S DECLARATION
I, the undersigned, announce that this is my unique work and has not been submitted to
any other college, university, or institution other than the United States Universal
University-Africa.
Signed: _____________________________ Date: ________________________
Bonaventure Nabongo Makokha (ID. 661776)
This research project report has been presented for examination with my approval as the
appointed supervisor.
Signed: _____________________________ Date: ________________________
Prof. James Karimi, Ph.D
Signed: _____________________________ Date: ________________________
Dean, Chandaria School of Business
iii
COPYRIGHT
© Copyright 2021 by Bonaventure Nabongo Makokha
iv
ABSTRACT
The general objective of the study was to examine the influence of performance
management on job satisfaction among employees in the insurance industry in Kenya.
The study was guided by the following specific objectives; to determine the influence of
goal setting on job satisfaction among employees in the insurance industry, to examine
the influence of training and development on job satisfaction among employees in the
insurance industry, and to examine the influence of feedback and coaching on job
satisfaction among employees in the insurance industry.
An explanatory research design was adopted in this study. Goal setting, training &
development, feedback & coaching were used as the causal variables. For this study, the
target population was the employees working at the top four insurance firms. A
population of 2554 employees working at the top four insurance firms was used in this
study which included Jubilee, Britam, CIC, and UAP Insurance Companies. This study
relied on stratified sampling. The strata consisted of Jubilee, Britam, CIC, and UAP
Insurance Companies. A sample size of 346 employees from the top four insurance firms
was used in this study. This study made use of a questionnaire as a tool to collect primary
data. Descriptive and inferential data analysis was used in analyzing raw data which was
presented using tables and figures.
The study showed that goals directed the attention and efforts of employees towards
relevant activities, as well as motivated them in putting more effort into their activities.
Correlation analysis showed that goal setting was significant to job satisfaction.
Regression analysis showed that 29.9% of the variability in the job satisfaction of
insurance firm employees in Kenya could be explained by goal setting and that there
existed a statistically linear relationship between goal setting and job satisfaction, where a
unit increase in goal setting could improve job satisfaction by a mean of 0.702 (70.2%).
The study revealed that training and development provided insight into employees’
strengths and weaknesses. Correlation analysis showed that training and development was
a significant factor in job satisfaction. Regression analysis showed that training and
development could account for 25.1% of the variability in the job satisfaction and that
there existed a statistically linear relationship between training and development and job
v
satisfaction, where a unit increase in training and development could improve job
satisfaction by a mean of 0.603 (60.3%).
The study showed that providing feedback to employees was essential for their job
satisfaction. Correlation analysis revealed that feedback and coaching was a significant
factor in job satisfaction. Regression analysis showed that feedback and coaching could
account for 35.1% of the variability in the job satisfaction of insurance firm employees in
Kenya and that there existed a statistically linear relationship between feedback and
coaching and job satisfaction, where a unit increase in feedback and coaching could
improve job satisfaction by a mean of 0.668 (66.8%).
The study concludes that organizational goals provided employees with specific and clear
plans, and employees in the firm were involved in the decision-making process, and also
had the intention of increasing their effort toward goal attainment. The firm’s training
programs had facilitated its ability to gain a competitive advantage over its counterparts
and the firm customized its activities to the ability level of the employees being trained.
The firms used coaching to bring out the best in their employees who received instant
feedback about their performance within the firm. Finally, salary increments and bonuses
had increased employees’ job satisfaction, and rewards had eliminated dissatisfaction
among the workers.
The study recommends the managers of insurance firms in Kenya ensure that firm goals
are specific and can be measured quantitatively or qualitatively. On training and
development, it is recommended that the managers of insurance firms in Kenya ensure
that its training and development program is structured. On feedback and coaching,
managers should make use of continuous and progressive coaching skills that would
provide the firms with a structure that may unlock the employees’ true potential, and
increase their motivation and confidence that may lead to both short- and long-term firm
benefits. On employees’ job satisfaction, firm managers should avail more time to their
employees, increase their knowledge of actual performance, communicate their
performance expectations clearly, and provide more ongoing feedback by increasing two-
way communication.
vi
ACKNOWLEDGEMENT
I am grateful to the Almighty God who through his grace and mercy has granted me
peace and health to write this project. I acknowledge the great contribution of my
research supervisor Prof James Karimi whose professional guidance, support, patience,
and availability have been paramount during my research study. My earnest gratitude
goes out to my family and friends for the immense support that they accorded to me
during this time.
vii
DEDICATION
I dedicate this to my family for their unrelenting support in my studies
viii
TABLE OF CONTENTS
STUDENT’S DECLARATION ........................................................................................ ii
COPYRIGHT ....................................................................................................................iii
ABSTRACT ....................................................................................................................... iv
ACKNOWLEDGEMENT ................................................................................................ vi
DEDICATION.................................................................................................................. vii
TABLE OF CONTENTS ...............................................................................................viii
LIST OF TABLES ............................................................................................................ xi
LIST OF FIGURES ......................................................................................................... xii
LIST OF ABBREVIATIONS AND ACRONYMS ......................................................xiii
CHAPTER ONE ................................................................................................................ 1
1.0 INTRODUCTION........................................................................................................ 1
1.1 Background of the Study ............................................................................................... 1
1.2 Statement of the Problem ............................................................................................... 6
1.3 General Objective .......................................................................................................... 8
1.4 Specific Objectives ........................................................................................................ 8
1.5 Significance of the Study ............................................................................................... 8
1.6 Scope of the Study ......................................................................................................... 9
1.7 Definitions of Terms ...................................................................................................... 9
1.8 Chapter Summary ........................................................................................................ 10
CHAPTER TWO ............................................................................................................. 11
2.0 LITERATURE REVIEW ......................................................................................... 11
2.1 Introduction .................................................................................................................. 11
2.2 Influence of Goal Setting on Job Satisfaction among Employees ............................... 11
2.3 Influence of Training and Development on Job Satisfaction among Employees ........ 16
2.4 Influence of Feedback and Coaching On Job Satisfaction among Employees ............ 21
2.5 Job Satisfaction ............................................................................................................ 27
2.6 Chapter Summary ........................................................................................................ 32
ix
CHAPTER THREE ......................................................................................................... 33
3.0 RESEARCH METHODOLOGY ............................................................................. 33
3.1 Introduction .................................................................................................................. 33
3.2 Research Design........................................................................................................... 33
3.3 Population and Sampling Design ................................................................................. 34
3.4 Data Collection Methods ............................................................................................. 36
3.5 Research Procedures .................................................................................................... 36
3.6 Data Analysis Methods ................................................................................................ 37
3.7 Chapter Summary ........................................................................................................ 38
CHAPTER FOUR ............................................................................................................ 39
4.0 RESULTS AND FINDINGS ..................................................................................... 39
4.1 Introduction .................................................................................................................. 39
4.2 Response Rate and Demographic Information ............................................................ 39
4.3 Influence of Goal Setting on Job Satisfaction among Employees ............................... 41
4.4 Influence of Training and Development on Job Satisfaction among Employees ........ 45
4.5 Influence of Feedback and Coaching on Job Satisfaction among Employees ............. 49
4.6 Employees’ Job Satisfaction ........................................................................................ 53
4.7 Chapter Summary ........................................................................................................ 57
CHAPTER FIVE ............................................................................................................. 58
5.0 DISCUSSION, CONCLUSION, AND RECOMMENDATIONS ......................... 58
5.1 Introduction .................................................................................................................. 58
5.2 Summary ...................................................................................................................... 58
5.3 Discussion .................................................................................................................... 59
5.4 Conclusion ................................................................................................................... 69
5.5 Recommendations ........................................................................................................ 71
REFERENCES ................................................................................................................. 73
x
APPENDICES .................................................................................................................. 86
APPENDIX I: INTRODUCTION LETTER ................................................................. 86
APPENDIX II: QUESTIONNAIRE .............................................................................. 87
APPENDIX III: IRB RESEARCH PERMIT ............................................................... 92
APPENDIX IV: NACOSTI PERMIT ............................................................................ 93
xi
LIST OF TABLES
Table 3.1: Population Distribution ..................................................................................... 34
Table 3.2: Sample Size ...................................................................................................... 35
Table 3.3: Reliability Output ............................................................................................. 37
Table 4.1: Descriptives for Goal Setting and Job Satisfaction .......................................... 43
Table 4.2: Correlations Analysis Between Goal Setting and Job Satisfaction .................. 44
Table 4.3: Model Summary Between Goal Setting and Job Satisfaction .......................... 44
Table 4.4: Regression ANOVA Between Goal Setting and Job Satisfaction .................... 44
Table 4.5: Regression Coefficients Between Goal Setting and Job Satisfaction ............... 45
Table 4.6: Descriptives for Training and Development on Job Satisfaction ..................... 46
Table 4.7: Correlations Analysis Between Training and Development and Job Satisfaction
............................................................................................................................................ 47
Table 4.8: Model Summary Between Training and Development on Job Satisfaction ..... 48
Table 4.9: Regression ANOVA Between Training and Development and Job Satisfaction
............................................................................................................................................ 48
Table 4.10: Regression Coefficients Between Training and Development and Job
Satisfaction ......................................................................................................................... 49
Table 4.11: Descriptives for Feedback and Coaching on Job Satisfaction ........................ 50
Table 4.12: Correlations Analysis Between Feedback and Coaching and Job Satisfaction
............................................................................................................................................ 51
Table 4.13: Model Summary Between Feedback and Coaching on Job Satisfaction ....... 52
Table 4.14: Regression ANOVA Between Feedback and Coaching and Job Satisfaction 52
Table 4.15: Regression Coefficients Between Feedback and Coaching and Job
Satisfaction ......................................................................................................................... 53
Table 4.16: Descriptives for Employees’ Job Satisfaction ................................................ 54
Table 4.17: Correlations Analysis Between Performance Management Factors and Job
Satisfaction ......................................................................................................................... 55
Table 4.18: Model Summary Between Performance Management Factors and Job
Satisfaction ......................................................................................................................... 56
Table 4.19: Regression ANOVA Between Performance Management Factors and Job
Satisfaction ......................................................................................................................... 56
Table 4.20: Regression Coefficients Between Performance Management Factors and Job
Satisfaction ......................................................................................................................... 57
xii
LIST OF FIGURES
Figure 4.1: Response Rate ................................................................................................. 39
Figure 4.2: Respondents’ Gender ...................................................................................... 40
Figure 4.3: Respondents’ Level of Education .................................................................... 40
Figure 4.4: Years Worked .................................................................................................. 41
Figure 4.5: Respondents’ Position ..................................................................................... 41
xiii
LIST OF ABBREVIATIONS AND ACRONYMS
CIC: Cooperative Insurance Company
FAO: Food and Agriculture Organization (FAO)
ICT: Information and Communication Technologies
IRB: Institutional Review Board
KQ: Kenya Airways
NACOSTI: National Commission for Science, Technology, and Innovation
SEB: Skandinaviska Enskilda Banken
SMEs: Small and Medium-Sized Enterprises
SPSS: Statistical Package for Social Sciences
USIU-A: United States International University – Africa
1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
Many firms have refocused their attention on their performance management systems and
explored strategies to increase employee performance as a result of the current challenges
facing organizations (Battaglio, 2017). According to Thomas and Lazarova (2016)
globalization has indeed ushered in rapid change, and organizations that ignore
performance management as a competitive strategy risk being driven out of business.
Organizations can either influence or control all factors affecting the performance of
individuals and units through formal and informal systems. Establishing a systematic and
well-organized performance management system calls for understanding and analyzing
the key success factors (Madison, 2016).
Osman (2017) asserts that performance management is concerned with actions taken to
improve performance to achieve organizational, team, or individual effectiveness.
Improving performance is only achievable where there are processes of continuous
development. This in turn addresses the core competencies of the organization and the
capabilities of the individual and teams. Performance management is vital for a business
because it ensures that people are working hard to assist the organization achieve its
mission and objectives. Performance management establishes standards for employee
performance and encourages people to work hard in the ways that the company expects
(Gupta & Upadhyay, 2016).
Performance management is one of the key human resource management functions and it
highly involves both the employee and the manager to implement them (Olufemi, 2017).
According to Armstrong (2016) people make an organization and the effectiveness of its
human resources. Their ability to apply their skills, knowledge and work effectively
together as a team is enhanced and improved over time through performance management
systems and practices. Owalla (2015) indicated that good performance management gives
organizations a competitive edge. According to Olufemi (2017) a performance
management system and the process would be used to give each employee a clear vision
of their role in the overall mission and define measurable achievements. As this happens,
2
employees begin to feel more involved and invest in their own, as well as the company's
success.
Performance management is concerned with satisfying the needs and expectations of
organizations' stakeholders-owners, management, employees, customers, suppliers, and
the general public (Armstrong, 2016). He further indicates that performance management
practices include extensive and relevant training and management development activities,
incentivized pay systems, and performance management processes. According to Barth
and De (2018) performance management is a method of gaining results from an entire
organization by analyzing and managing performance within a set of agreed-upon goals,
standards, and competency criteria. Dessler (2015) suggested that performance
management practices may include goal-setting workers selection and placement,
performance appraisal, compensation training and development, and career management.
Aguinis (2019) indicate that employee performance management is concerned with
enhancing employee performance at work as well as providing them with (employee)
satisfaction. Employee performance at work is inter-dependent with employee satisfaction
in the sense that, when an employee performs well by meeting their goals, they derive
satisfaction from this. This propels them to perform even much better. Satisfied
employees quite often display ownership of the organization in which they work.
Hutchinson (2016) argue that employees with a feeling of ownership concerning either
their organization or role are more likely to provide better levels of performance.
Robinson (2015) conducted a study that suggested that organizations that implement good
practices covering a range of managerial aspects, and who are achieving organizational
results are likely to be closer to satisfying their staff. Practices relating to people,
performance management, and organizational results also show association with
employee job satisfaction.
According to Greenberg (2015) employee satisfaction results primarily from internal
high-quality support services and policies that enable employees to deliver results to
customers. He further says that while there is no question that money is important, it does
not buy employee satisfaction. While employees want to be fairly compensated for their
efforts, they also want to be challenged and treated with respect. He suggests that to
3
increase employee satisfaction, organizations should: understand why people are working
and commit to helping them achieve their goals on the job (through performance
management); develop a plan that will assist them in getting where they want to go;
empower them; allow them to participate in business decisions; communicate
organization's expectations to them; recognize their expectations; recognize their
accomplishments and follow up their efforts. This amounts to effective performance
management which contributes to employee satisfaction.
Performance at work is interdependent with employee satisfaction. A participative
approach to performance management allows employees to respond in terms of their
flexibility, cooperation, commitment, and eventually satisfaction (Torrington, 2015). For
performance management to be effective in an organization it should be well undertaken
at individual and organizational levels. Employees taking ownership of performance
management at the individual level adds up well to employee satisfaction. Robby (2016)
indicated that practices relating to people, performance management, and organization
results also show association with employees’ satisfaction. He further indicated that
employee performance at work is interdependent with employee satisfaction in the sense
that when employees perform well by meeting their goals, they derive satisfaction from
this and this propels them to perform even better.
Globally, studies have shown that Performance Management Systems improves employee
attitudes since it increases organizational commitment as well as cooperation and
satisfaction of employees with their supervisors (Taylor & Pierce, 1999). Farhana (2016)
discussed performance management issues like the implementation of PM and its
effectiveness on the system of Bank Alfalah of Pakistan. The research findings showed
that the employees of Alfalah bank faced the problem of dissatisfaction from their
performance management system because it lacked motivation and a proper reward
system. Viktor (2013) focused particularly on how the four large commercial banks:
Skandinaviska Enskilda Banken (SEB), Handelsbanken, Nordea, and Swedbank in
Sweden adapted their performance management systems to altering external pressures
over the deregulations. The findings indicated that regulatory change seemed to have had
a limited effect on the PMSs of the investigated banks.
4
Elci (2015) conducted a study on training and skills development in Small and Medium-
Sized Enterprises (SMEs) in Ostim, one of Turkey’s largest industrial zones in the capital
city, Ankara. The study indicated that the majority of SMEs do not attach importance to
training activities. It also revealed that most businesses do not have a human resources
department and even there is not any person responsible for training. The study also
found that the majority of the SMEs consist of family-owned enterprises, those, in
general, are not institutionalized and their decisions on training investments depend on
the vision and/or willingness of the owners. Farrell (2013) conducted a study to
investigate the effectiveness of performance appraisal among consumer service
companies in Ireland. The study established that employees were overly happy as they
have to complete the performance appraisal.
Regionally, Ziyaminyana and Pwaka (2019) in their study on the influence of
performance management towards the productivity of employees in Information and
Communication Technologies (ICT) enterprises in Harare, Zimbabwe. The study found
that performance appraisal did have an impact on employee productivity, there is a need
for the management and the governing committees to explain the value and importance of
performance appraisal as well as management expectations from employees. Randell
(2017) studied the relationship between performance management systems and employee
productivity of 2000 employees of insurance companies in South Africa and found out a
positive relationship between performance management systems and employee
productivity. The study concluded that organizations should review their current
performance management systems to ensure higher employee motivation and
productivity.
Okeke, Onyekwelu, Akpua and Dunkwu (2019) conducted a study on the effect of
performance management on employee productivity using selected large organizations in
South East, Nigeria. Specifically, the study examined the extent to which 360-degree
feedback appraisal, performance evaluation, self-assessment, and performance review
influence employee productivity. Findings from the analysis showed that 360-degree
feedback appraisal had a significant influence on employee productivity, performance
evaluation had a significant effect on employee productivity, Self-assessment had no
significant influence on employee productivity and performance review had a significant
5
effect on employee productivity. Boipono, Goitseone and Mogadime (2016) conducted a
study in which they interrogated the implementation of performance management systems
in secondary schools in Gaborone, Botswana. Their study aimed to suggest factors that
could contribute to the successful implementation of the performance management
system. The study concluded that timely feedback and effective communication were
essential for the system as they could help the teachers progressively make improvements
to their processes in terms of achieving the set objectives.
Locally, Mwongera (2016) in her study on the effects of a balanced scorecard
performance management system and employee job satisfaction at Cooperative bank of
Kenya found that the balanced scorecard contributed greatly to employee job satisfaction.
The researcher recommended further research on other tools used in performance
management that lead to employee satisfaction. Mbugua, Waiganjo and Njeru (2015)
examined the relationship between strategic performance management practices and
employee retention in commercial banks in Kenya. The study established that
organizations used strategic performance management through a clear action value plan,
target setting, the setting of the realistic budgets, forecasting, performance measurements
and review, and finally compensation based on performance. Maina (2015) examined the
effect of performance management systems on employee performance in food and
agriculture organizations. The major finding of this study was that employees felt there
was a great need for a performance management system in Food and Agriculture
Organization (FAO). The study concluded that the perception of employees towards
performance management practices was very critical in all organizations, as this
motivates them to achieve the goals set by the organizations.
The success of an insurance firm is reflected upon by its performance which is in turn
highly dependent upon performance management’s tools that the company has put in
place (Cummins & Santomero, 2015). In this era of cut-throat competition, what an
insurance firm requires is framing the right strategies to attain job satisfaction among its
employees. The impact of the right performance management tools will automatically be
reflected in the results. Moreover, insurance firms have to understand that they need to
give drive not only towards the financial results but also towards job satisfaction of their
employees, development of state-of-the-art technologies, and creation of an environment
6
of learning and growth. Awareness of performance management will allow insurance
firms to concentrate their efforts on resources considered important to the industry and
will allow them to achieve success (Niehaus & Price, 2012).
1.2 Statement of the Problem
According to Helmold and Samara (2019) performance management plays a vital part in
motivation, it is an ingredient of job satisfaction. Mello (2018) asserts that 360-degree
feedback appraisal as a kind of performance management is a powerful developmental
method, and is quite different compared to the traditional manager-subordinate appraisals.
Feedback from multiple sources, such as superiors, peers, subordinates, and others have a
more powerful impact on people than information from a single source, such as their
immediate supervisor. Wood, Whelan, Sojo and Wong (2013) argue that while goals and
expected results can be established for the entire rating cycle, many employees are in jobs
that are characterized by frequent change. Feedback should be given as employees reach
key landmarks or achieve goals during the evaluation period. Gains of businesses from
training can be directed by increasing the employee achievement or indirectly by making
employees more satisfied with their jobs that together increase the overall productivity
(Hanaysha, 2015).
Most of the organizations have used performance appraisal as compared to performance
management in which the focus is made on the comparison between the performance
standards being made by the organization and the actual productivity of employees, while
no one compares the performance against employees’ objectives. This affects the
achievement of employee objectives negatively (Tapamoy, 2008). The performance
management system should systemically evolve starting from the level of employee, and
ultimately to the level of the organization. The organization’s objective should be clearly
stated for easy implementation, and the performance management system should be
tailored directly to it. The performance management system begins with performance
planning, which strategically examines those key areas especially the work-related
attitudes of the employees (Varma & Budhwar, 2019). However, the problem lies with
the failure of managers to manage performance, align individual goals to a common
vision, and effectively utilize the organization’s performance management system to
stimulate employee job satisfaction for enhanced employee performance (Maina, 2015).
7
Okechukwu (2017) investigated the impact of training and development, as well as
employee performance, on job satisfaction among the staff at the University Utara
Malaysia's School of Technology Management and Logistics. The result found that
training & development and employee performance positively influence job satisfaction,
and there is a significant relationship between training & development, employee
performance, and job satisfaction. Patrick (2016) examined the impact of goal setting on
employee effectiveness to improve organization effectiveness: Empirical study of a high-
tech company in Singapore. The findings indicated that goal setting has a role to play in
impacting employee effectiveness and ultimately improves organizations' effectiveness.
Ali, Lodhi and Orangzab (2018) in their study on the influence of managerial coaching on
employees job performance, revealed that managerial coaching indirectly affects job
performance through work engagement, leader-member exchange quality, job
satisfaction, and turnover intentions.
Local studies have been done on performance management. Oluwatosi (2015) studied the
impact of performance management on the productivity of public sector organizations.
The study revealed that performance management had a propulsive effect on the
productivity of public sector organizations if adequately conducted. In Kenya Airways,
Okumu (2012) investigated the impact of employee performance management practices
on staff productivity. From the research findings, 96% of Kenya airways employees
indicated that the organization had implemented employee performance management and
sensitized its employees on the importance of employee performance management before
its implementation through seminars and workshops. The results of the hypotheses tested
revealed that goal setting, rewards, and recognition, training, and development had
positive effects on the productivity of Kenya Airways (KQ).
While the studies above have been done on employee performance management
practices, performance management tools such as appraisals and balanced scorecards,
none has focused on performance management and its influence on employee job
satisfaction in the insurance industry in Kenya. Therefore, this study aimed at filling this
knowledge gap by examining the influence of performance management on job
satisfaction among employees in the insurance industry in Kenya.
8
1.3 General Objective
The objective of the study was to examine the influence of performance management on
job satisfaction among employees in the insurance industry in Kenya
1.4 Specific Objectives
1.4.1 To determine the influence of goal setting on job satisfaction among employees in
the insurance industry in Kenya.
1.4.2 To examine the influence of training and development on job satisfaction among
employees in the insurance industry in Kenya.
1.4.3 To examine the influence of feedback and coaching on job satisfaction among
employees in the insurance industry in Kenya.
1.5 Significance of the Study
The study sought to appraise the performance management process within organizations
concerning satisfaction among employees to identify areas of improvement.
1.5.1 The Management
The study may help the management in appreciating the place of employee satisfaction in
service delivery to spur performance improvement and customer satisfaction. The study
provides information to widen knowledge on performance management and employee
satisfaction to inform managers of similar organizations on the subject.
1.5.2 The Employees
The study may help employees to understand their role in the performance management
process in contributing to the attainment of the organization’s objective for its continued
growth. The employees may find the findings of this study as a base to negotiate with
their employers for fair and effective performance management processes and procedures
that would satisfy them.
1.5.3 Researchers and Academicians
The findings of the research study may offer information to later researchers studying the
same subject for improved results. The study also contributes to the wider knowledge
both in research and academics in the area of performance management.
9
1.6 Scope of the Study
The study specifically discussed the influence of performance management on employee
job satisfaction in the insurance industry in Kenya. Therefore, the scope of the study was
insurance firms in Kenya. The study focused on employees from Jubilee, Britam, CIC,
and UAP Insurance Companies thereby being the main target of the study. The actual
fieldwork was carried out between January and August of 2021.
1.7 Definitions of Terms
1.7.1 Performance Management
This refers to a mechanism used by organizational leaders and their employees to develop
work exceptions and goals, deliver and receive performance feedback, identify
development needs and evaluate performance (Hutchinson, 2016).
1.7.2 Job Satisfaction
Job satisfaction is the combination of different circumstances like psychological,
physiological, and environmental which leads to an individual's satisfaction or
dissatisfaction with their job. The degree of satisfaction can be determined by the ratio
between what one has and what one wants (Wicker, 2016).
1.7.3 Goal Setting
Goal setting is a process is founded on the premise that the intention of one to work
towards a goal is a major source of work motivation (Locke & Latham, 2017).
1.7.4 Training and Development
It is the official and ongoing educational activities within an organization designed to
enhance the fulfilment and performance of employees (Sahu, 2018).
1.7.5 Coaching
Coaching is about developing and enhancing the performance of the individual which has
a direct impact on their performance. The value of coaching is that it is a way of learning
that is highly flexible and individualized (Morel, 2014).
10
1.7.6 Feedback
Feedback is defined as a management procedure for determining the degree of efficiency
and productivity that an employee's work-related activities have achieved, as well as the
types of results that these actions have produced (Steelman & Williams, 2019).
1.8 Chapter Summary
Chapter one has presented background information on performance management and
employee job satisfaction. The chapter has also presented the statement of the problem,
the general objective of the study, specific objectives, and the significance of the study
where different stakeholders who may benefit from the study have been outlined. In
addition, the study scope key terms definition and the chapter summary has also been
outlined. Chapter two consists of related literature on the influence of performance
management on job satisfaction related to the study objectives. Chapter three discusses
mainly the form of research methodology that will be applied in the study. Chapter four
discusses the results and findings based on the fieldwork study, and chapter five offers the
discussions, conclusions, and recommendations of the study.
11
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
In this chapter, the focus is on existing literature particularly; performance management
and job satisfaction are of primary interest as researched by other scholars. The literature
on goal setting is presented first, training and development second, and thirdly feedback
and coaching. A keen interest is in establishing a correlation between the existence of
performance management and its influence on job satisfaction among employees.
2.2 Influence of Goal Setting on Job Satisfaction among Employees
According to Wright (2016) goals influence job satisfaction in four ways. The first goals
do direct the attention and efforts of the participants towards activities that are relevant to
the achievement of the goal. Secondly, goals do energize an individual in putting in
greater effort especially when they are high than when the goals are low. Thirdly, goals
enable persistence at work. By allowing participants to control the time spend on a task; a
prolonged effort is put in to attain hard goals. Fourthly, goals create arousal by inducing
the participant into action using task-relevant knowledge and strategies. Goals guide an
employee on how much needs to be done and the effort required to be expended to
complete the task ahead. Robertson (2019) asserts that the goal-setting process increases
the reinforcement value that enables tasks to be completed through the establishment of
goals thus increasing satisfaction with work among the employees, the behaviours which
lead to task completion. Goals could serve to facilitate higher productivity and promotes
job satisfaction leading to improved working life for employees.
2.2.1 Goal Setting
Rauch (2015) states that goal setting as a process is founded on the premise that the
individual intends to work towards a goal through work motivation. The goal-setting
process is very important in any organization due to its significant impact on employee
performance-productivity and job satisfaction which are core among other outcomes and
which heavily influence the live success of any organization. For the process to have a
positive impact emphasis should be given to elements such as ensuring the goals are
specific and clear path in quantitative and qualitative terms and which should be
accompanied by concrete actions, plans, etc. Besides, the employees should be allowed to
12
participate in goal setting and decision-making to ensure the goals are owned and
accepted by them instead of being imposed on them (Wright, 2016).
Curtis (2017) affirms that goal setting occurs at all levels of management in an
organization. At the top of the organization, managers set long-term goals the basis of
which the overall objectives and missions of the organization will be achieved. The goals
are cascaded downwards in management where middle-level managers implement the
goals of their superiors. For this to be achieved, managers set goals that direct the groups
and individuals working under them. Locke and Latham (2017) found out that when an
individual achieves a higher performance level, satisfaction will be increased, and will be
more dissatisfied with the experience if the subject is unable to achieve the goal. On the
job satisfaction front, goal specifics clarity is expected to increase the job satisfaction of
the individual since he/she gets a clear understanding of not only the outcomes desired
but it also leads to the arousal to perform using the tasks relevant knowledge, thus the
person will be more satisfied when the goal is met (Wright, 2016).
Perera (2019) indicate that in front of employee job satisfaction there is strong evidence
that encourages the culture of employee involvement are more effective and perform
highly. Therefore, the involvement of employees in decision-making is more likely to
result in higher employee performance and make the organization achieve its objectives.
Organizations' should have human resource policies that emphasize worker involvement
so that employees have the opportunity for input in decisions, the incentives to expand
their effort and acquire the relevant skills thus, for an organization the best way to
improve productivity and job satisfaction is by striving to have shared goals of employees
and managers, allowing workers input into developing the mission statement, establishing
policies and procedures, determining perks, etc. through boosting of communication and
morale among the workers in the organizations as noted by Robert (2015).
Rauch (2015) opine that there is a relationship between goal-setting and feedback that are
important to each other. Goals enhance job challenges and facilitate goal congruence for
the organization. Goals clarify the roles of a person and improve the employees'
understanding of their roles to another employee's role. Robertson (2019) explain that
when employees understand the objectives of the organization and their position in
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ensuring that they are achieved is made possible through goal clarification, there is the
elimination of ambiguity and this improves the job experience.
2.2.2 Goal Commitment
Locke and Latham (2017) affirm that within the goal theory and definition of goal
commitment being the determination to reach a goal, goal commitment is critical because
it generates motivation for performance improvement. Goal commitment is in line with
the conceptualization of the elements within goal theory. It means there is the intention of
increasing effort toward goal attainment and continue to pursue that goal over time until it
is achieved. Studies show that goals can predict levels of performance. The findings from
the goal theory show that in certain conditions when the difficult level goals are high, it
can lead to higher levels of performance (Wright, 2016).
In their study, Klein, Cooper and Monahan (2016) found that there is a positive
relationship between goal commitment and performance for individuals with high goal
commitment compared to those with low goal commitment. The condition necessary for
the relationship between goal and employee job satisfaction to hold is commitment (Yang
& Kassekert, 2016). Locke and Latham (2017) suggest that the degree to which goal
attainment is perceived can lead to the prediction of the level of commitment that will go
to it. This is consistent with Oklham's (2015) finding of the relationship between goal
attainment and goal commitment that is positive and reinforces this position. When a goal
is established, commitment is necessary because it is instrumental in attaining the goal
objective by the individual.
Wood, Whelan, Sojo and Wong (2013) argue that goals lead to the development of
strategies to accomplish task activities. Strategies also positively affect performance when
implemented. By implementing goals, strategies will be used and performance will
increase. A higher goal positively affects goal commitment because of the high awareness
level that is elevated to attain the goal. When an individual is given a goal, the subjects'
commitment comes from the plan that is developed to achieve the goal through which
performance is increased as explained by Locke and Latham (2017).
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According to Morrison (2017) goal commitment is higher when individuals fully
understand their goals, feel pressure from peers to perform well, perceive that they can
attain their goals, and believe that they will be recognized for their accomplishments.
Liao (2016) established that a system of goals enable managers to manage themselves and
others. They emphasized that managers must know how to perform a multitude of
functions to produce desired goals effectively. The relationship between organizational
work settings and behaviour was explored by Wicker (2015). Three work setting features
were examined regarding their relationships with a set of employees' behaviours relevant
to planned organizational change and potential organizational performance. A career goal
can assist with human resource planning and can promote effective job performance from
the company's standpoint. Employees should be informed about the firm's mission,
structure, and culture
Goal commitment and job satisfaction are significantly related to each other (Robbins &
Judge, 2015). Job satisfaction is defined as a collection of feelings that individuals hold
toward his or her job or more specifically, a pleasurable feeling that arises from one's
workplace (Wicker, 2015). The majority of research on job satisfaction focuses on its
connection to job performance. Some find the relationship strong; some find it weak
although both goal commitment and job satisfaction are attitudes, and they are regarded
as two separate constructs (Morrison, 2017). An individual in a state of high goal
commitment is more likely to invest personal resources to promote the goal, and less
likely to search for job alternatives outside the organization. High commitment expresses
willingness to contribute to the environment as part of a belief in common values and
goals. Studies also find that an employee who feels committed to the organization's goals
may have an easier time managing conflicting demands, therefore, will have a better
performance which finally leads to satisfaction (Williams & Hazer, 2016).
2.2.3 Goal Ambiguity
Davis and Stazyk (2017) state that an important predictor of job satisfaction was found to
be goal ambiguity because ambiguity creates role dissatisfaction, experience anxiety, can
distort reality, and lead to less production. Goal ambiguity also influences employee
knowledge about what is expected of them and what they are trying to accomplish, which
can diminish the meaningfulness of the job, make it difficult to evaluate what the
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employee contributed to the goal, and decrease job satisfaction. Goal ambiguity in the
public work environment comes from the inherently political environments of public
organizations, which establishes that ambiguity in the public work setting will be present
and it will harm job satisfaction. One way to limit this negative effect on job satisfaction
of goal ambiguity in the public work environment on the lower level employees is to
implement clear, specific goals that allow the employee to know what is expected of them
and what they are trying to accomplish (Jung, 2018).
According to Locke and Latham (2017) clear, specific goals lead to increased goal
commitment, task interest, job attitude, and self-efficacy. Ambiguity in goals or do your
best goals leave the question as to what constitutes effective performance for an
individual or organization. In addition to directly influencing performance, clear,
challenging goals are likely to facilitate attitudes, such as job satisfaction, that give rise to
performance. In organizations where aims and objectives are ambiguous and unclear,
employees will be less motivated to achieve the goals that are set for them. Hence,
organizational goal ambiguity represents a substantial job demand because it requires
additional cognitive effort on the part of employees, especially for senior managers
responsible for communicating objectives effectively to subordinates. At the same time
though, senior managers’ engagement may be sustained by the psychological and social
resources available to them within an organization, especially strong co-worker
relationships (Robertson, 2019).
2.3.4 Content and Goal Clarity
Content is the result being sought by the goal, and intensity is the effort needed to set the
goal, where the goal falls hierarchically for an individual and how committed the person
is to attain the goal (Locke & Latham, 2017). In today's public organization setting, the
political environment is cause for continuous goal ambiguity. The understanding of these
attributes and applying the mechanisms to which lead to higher performance become
increasingly important in a public setting because goals function as a way to legitimize
action. The connection between goal clarity and performance-related attitudes results less
from the sustained effort, and more from a resulting feeling of self-efficacy when goal
objectives are accomplished. When an individual feels as though they have accomplished
something meaningful, they are likely to exhibit positive attitudes toward work due to a
16
heightened sense of achievement. In this sense, it may be useful to examine the effects of
goals on job satisfaction. Clear and easily understood goals motivate employees to work
harder because it is easier for them to diagnose the actions necessary to achieve the
desired organizational objective (Davis & Stazyk, 2017).
2.3 Influence of Training and Development on Job Satisfaction among Employees
Training and development are responsible for all issues relating to the development of
employees, induction, and coaching of the organizational mission and objectives
(Dehghani, Daghighi & Pourvali, 2015). Training and development provide a galaxy of
benefits to both the employer and employees. More significantly, training and
development also provide insight into employee strengths and weaknesses (Bulut &
Culha, 2010). The success of any organization would depend on the quality of its
personnel and it is significant to have an effective performance management system that
can identify employee-training needs. Training and development deal with the
acquirement of understanding, know-how, techniques, and practices. In reality, training
and development are one of the essentials of human resource management as they can
better perform at the individual, collegial and organizational levels (Selden, Jessica &
Sowa, 2016).
2.3.1 Training
According to Shaheen, Naqvi and Khan (2016) training services are one of the most
important internal factors affecting job satisfaction. Training activities stem from job
satisfaction that enhances job involvement and organizational commitment of trained
employees. Training is seen as a key method of eliminating artificial barriers to individual
development and capabilities and when workers receive self-development training, the
level of their job satisfaction is higher. When properly done it benefits both the
organization and the employee. Training is mainly to improve knowledge, improve
morale, increase confidence and motivation, eliminate risk, lower turnover, and
absenteeism, and generally give a sense of satisfaction (Khalilpur, 2016).
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Buckley and Caple (2015) assert that training is the component of human capital that
workers acquire after schooling, often associated with some set of skills useful for a
particular industry, or use with a particular set of technologies. There is a widespread
belief that learning is the core factor to increase human capital. In other words, learning is
an important component to obtain much knowledge and skills through lots of acquisition
ways including the relationship between the individual and the others. At some level,
training is very similar to schooling in that the worker, at least to some degree, controls
how much to invest (Agha & Onyeizugbe, 2015). The firm also needs to invest in the
training of the workers and often ends up bearing a large fraction of the costs of these
training investments. The role of the firm is even greater once we take into account that
training has a significant "matching" component in the sense that it is most useful for the
worker to invest in a set of specific technologies that the firm will be using in the future.
So, training is often a joint investment by firms and workers (Hatami, 2015).
Lawler (2016) explains that for the training to be effective a structured approach should
be put in place. The training needs of the employee should be established followed by
assessing the objectives of the training. The training should be aimed at equipping the
trainee with the necessary skills that serve the organization in achieving its objectives.
The training should serve the needs of the training needs established beforehand;
Determination should be made on how to conduct the training. Noe (2016) states that a
well-structured training process has to be put in place. This includes the selection of
training techniques and trainers for the program. Additionally, employees’ abilities should
be considered when designing the training program
Ackah and Agboyi (2016) allude that today’s increasingly globalizing working
environments require business organizations to acquire well-educated and trained
employees who are capable to adapt themselves rapidly to their ever-changing
workplaces where new necessities for businesses have arisen. Consistently, empirically
well-supported theoretical framework explains that organizations investing in training
programs can gain a competitive advantage compared to their counterparts with no
training services (Bulut & Culha, 2010). The crucial necessity of training comes from
today’s increasing competitiveness of the business environment in which technological
progress, productivity measurements, product differentiations, customer expectations,
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intra-, and inter-industry relations, employee motivations, etc. have been changing
dramatically. The main instrument for this is training the employees to keep them updated
with and ready for the changes (that can be attributed to the diversity training which
facilitate positive intergroup interactions and enhance the skills, knowledge, and
motivation of employees (Alhejji, Garavan, Carbery, O’Brien & McGuire, 2016).
2.3.1.1 Training Programs
According to Toister (2017) effective training programs are paramount in the construction
of a more conducive learning environment for the employees. Indeed, effective training
and development programs would assist employees in getting acquainted with any new
technological advancement in the organization as well as gaining the competency needed
to perform jobs and responsibilities. Batool (2016) explains that employers should not
take training programs for granted. They should ensure that the people who conduct the
training understand the difference between demonstrating a skill and teaching that skill to
someone learning it for the first time. He further added that organizations should
customize their activities to the ability level of the employee being trained. Khawaja and
Nasir (2013) in their study on the relationship between training satisfaction and the
employee development aspect of job satisfaction, found that providing training to
employees improves the level of satisfaction with their current jobs: this highlights the
need for a company to focus on building employee capability and development to achieve
job satisfaction.
Buckley and Caple (2015) argue that organizations with a formal training program are
more satisfied with their technology use compared to those without any formal training
program. The training courses that are offered by organizations must be designed by
considering the present and future needs of the employees and facilitate the learning of
these skills. A good training course must ensure that it plays an essential role in role in
improving the quantity and quality of a company's production, increase the likelihood of
organizational success, and reduce the expenditures and expenses of the business.
Furthermore, coaching is increasingly being acknowledged as a crucial managerial
obligation that can have a big impact on an employee's working life (Abdus, 2015).
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Batool (2016) opine that to increase the functionality of the workforce, organizations
offer training programs in different ways such as technical (job skill) training, business
skill training, and personal development training. The methods can be grouped as,
instructor-led classroom, one-on-one training, online or computer-based learning, job-
shadowing or observation, and self-study according to departmental positions and
organizational objectives. Considering employees daily lives that affect their work
performances as well, some employers offer their employees access to financial or
investment training designed to make them conscious of personal finance.
2.3.1.2 Organizational Training
Dehghani, Daghighi and Pourvali (2015) suggest that organizational training can be
considered as admission for organizational development. In all organizations, two basic
points are considered: preservation and survival, increased efficiency, and effectiveness.
The life of organizations depends to a large extent on the various skills of human
resources. However, if the fields are timely and optimal, the organization's ability to adapt
to the changing environment will also increase. Therefore, human resource education and
development in human resources management systems are not only important for creating
knowledge and skills in the staff, but also helps people to share the organization's
effectiveness and adapt them to environmental pressures (Buckley & Caple, 2015).
Organizational training is about tacit knowledge and skills acquired through intra-
organization intended efforts. Organizational training has specific on-the-job training
activities (e.g. training on fast assembling the computer components or creating a new
software which is to be used for new product development) that increases the employee
productivity and output only at the company providing it. Thus, the term training is
widely recognized and labelled as vocational, on-the-job, or professional training (Argote,
2016).
2.3.2 Development
According to Harrison (2016) development is an ongoing process, as people work longer,
they need to continually develop to improve their skills, knowledge, and competencies.
Proper human resource development delivers increased productivity, superior
performance of the firm, and even attraction of quality staff. Management development is
related to organizational development and it involves identifying future directions for the
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organizations. It further involves increasing the organization's present and future
capability in attaining its goals which includes avoidance of both managerial and
professional obsolesce and constant challenges in a highly competitive changing world as
stated by Armstrong (2016).
Abdus (2015) indicate that development is of great importance to individual employees
by helping them make better decisions for effective problem solving, assist in supporting
employees to achieve self-development and self-confidence, helping an employee deal
with stress, tension, frustration, and conflict, increasing job contentment and
acknowledgement thus progressively moving the person towards personal goal realization
while improving interaction skills. Keeton, Sheckley and Griggs (2015) suggest that
education has little to do with taking in information; precisely it is a means that multiplies
capacity. Learning is about building the capacity to craft that which no one previously
could create. Despite individual disparities and whether a novice is acquiring a new skill
to gain knowledge on a specified theme, that person should not be deprived of the
opportunity to put in practice what is being taught (Clarke, 2015).
Alvarez, Salas and Garofano (2015) assert that a development opportunity is only
valuable if the individual takes advantage of it. The organization can and should provide
support and encouragement, but development activities appear to be successful only when
people become personally invested in them. Clear knowledge and acceptance of joint
objectives by both the individual and the organization should be the foundation of any
growth activity in an organization. The efforts will be significantly more likely to succeed
if the aims are understood and accepted. Another principle is the continuity principle. An
individual will become old-fashioned if he does not continue to update his abilities or
knowledge. New knowledge and abilities are continuously being introduced, especially
nowadays (Harrison, 2016).
2.3.2.1 Career Development
Career development is a process of implying upward movement and advancement in
work (Hall, 2016). An employee who feels an organization's commitment towards
advancing them is bound to be satisfied with such an environment. Kroth (2015) argues
that the primary purpose of career development is to meet both organizational and
21
individual needs at work. Aguinis and Kraiger (2015) also emphasizes the benefits of
career development: if an employee's talents or knowledge improves, he or she may be
able to produce more value, and as a result, they may feel more fulfilled in the
achievement of personal goals and professional recognition. On the other hand, for the
organization, career development can achieve competitive advantages because of a better
qualified and a more highly motivated team and can utilize advanced technology because
of the effectively trained employees (Hall, 2016).
The primary purpose of career development is to meet the current and future needs of the
individual at work. It further involves career management and career planning (Hall,
2016). Career planning is the deliberate process through which someone becomes aware
of their skills and interests, knowledge and motivation, and other characteristics and
acquiring information about opportunities and choices identifies career-related goals and
establishes action plans to attain specific goals Randhawa (2017). Dessler, Lloyd-Walker
and Griffiths (2014) indicated that career development includes job rotation, mentoring,
coaching, spontaneous meetings between managers and employees to discuss employee's
career goals and development. When employees have the opportunity to learn, new and
additional career development they will feel a sense of personal growth which increases
job satisfaction (Osbourne, 2015).
2.4 Influence of Feedback and Coaching On Job Satisfaction among Employees
According to Smart (2012), feedback and coaching are important to both individuals and
also organizations because of their potential positive influence on performance and a
variety of attitudes and work outcomes including job satisfaction which are of interest to
organizations. Thorpe and Clifford (2015) assert that coaching has been identified as the
most essential role to be performed by human resource development experts among their
different roles in organizations. Coaching helps leaders to bring out the best in employees
throughout the organization and they begin to embrace and engage in critical thinking.
Improving employee job satisfaction with constant feedback, without feedback, an
employee is uncertain as to how he or she is doing. This uncertainty is very frustrating,
especially to employees early in the process of mastering a new task, and can be very de-
motivating. Good feedback thus reduces uncertainty and increases motivation thus
enhancing employee job satisfaction (Liao, 2016).
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2.4.1 Coaching
Coaching is a regular series of training or development sessions where an experienced
employee with considerable expertise guides a trainee (Homan & Miller, 2017). Coaching
is concerned with creating conditions so that people can perform to the best of their
ability. In coaching the learner receives instant feedback about their performance, this
reinforces success and helps them to quickly correct any mistakes. Coaching, therefore,
accelerates the performance improvement processes (Richard, 2015). Coaching helps
leaders to bring out the best in employees throughout the organization and they begin to
embrace and engage in critical thinking. Employees at all levels accept ownership and
accountability for their work product and relationships. They require less daily and direct
supervision from managers as they develop their skills and strive to reach their full
potential (Leedham, 2015).
Richard (2015) asserts that the success of coaching in any organization will depend on
many factors that are difficult to standardize, such as corporate culture and attitudes
toward coaching. However, the best practices of coaching programs can be discussed
under the GROW Model. The grow model has proved successful in many organizations
and it forms the most common basis of coaching in many organizations. Coaching for
Performance identifies the need to adopt the Goal Reality Options and Will (GROW)
model in coaching. The GROW model is an acronym standing for Goals, Reality,
Options, Will. By working through the four stages the model raises an individual
awareness and understanding of their aspirations, their current situation and beliefs, the
possibilities and resources open to them, and finally the actions they want to take to
achieve their personal and professional goals (Whitmore, 2016).
In the first stage, the skilled coach invites the employee to identify what he sees as the
key goals for the planning period for instance six months. The goals should be selected
within the broad context of the organization and departmental goals and should be framed
to reflect what the employee feels will be possible to deliver (Whitmore, 2016). The goals
may initially be expressed as results. The coach asks questions to raise awareness not to
criticize or challenge. If the goals first selected are vague, hard to measure, or completely
unrelated to the job, then the coach will seek clarification. Organizations that simply have
a well-defined purpose are more likely to report coaching success than those
23
organizations that are not sure what their purposes in coaching are. According to Collins
(2001) in the management Good to Great, improvements in both leadership development
and retention rates are essential in getting the "right people on the bus," which is a
consistent precursor to improvements in gaining a competitive advantage in the
marketplace. The heightened productivity is one of several benefits attained through
coaching interventions (Stone, 2017).
The second stage is to raise the employee's self-awareness of all the factors underlying
and surrounding present performance against the goal (Robinson, 2015). The employee
will rate themselves with the goals and determine whether the set goals are realistic. This
will trigger the employee to realize the factors that have been preventing progress. With
the goal and reality understood by the employee, the coach helps the employee determine
what they can do. This is aimed at helping the employee generate as many ideas as
possible without evaluating them in any way yet. Once the employee is satisfied with the
number of options the coach can ask how the options will be evaluated. The coach and
the employee will agree on who will write up the key points especially the goal and the
action plan for both parties. There doesn't appear to be a universal methodology for
evaluating coaching benefits (Leedham, 2015).
Whitmore (2016) assert that the implementation of the GROW Model, by using carefully
structured questions, promotes a deeper awareness and responsibility and encourages
proactive behaviour, as well as resulting in practical techniques to accomplish goals and
overcome obstacles. The use of continuous and progressive coaching skills support
provides the structure which ultimately helps to unlock an individual's true potential by
increasing confidence and motivation, leading to both short- and long-term benefits. The
GROW Model has been seen to yield higher productivity, improved communication,
better interpersonal relationships, and a better-quality working environment.
2.4.1.1 Managerial Coaching
Managerial coaching refers to an effective managerial practice that helps employees
develop themselves and improve performance (Kim, 2012). Managerial coaching focuses
on specific, short-term performance improvement between an employee and his or her
immediate supervisor. In addition, managerial coaching is a predominantly process-
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oriented activity, occurring through regular interactions to help individuals develop skills
and competencies and overcome difficulties in performance. Alternatively, mentoring is a
long-term, predominantly ongoing relationship providing psychological support and
resources for career development, and a mentor is not necessarily a direct supervisor.
Rather, the mentor could be an expert who has years of experience in specific areas either
inside or outside of the organization (Liu & Batt, 2010).
Beattie, Kim, Hagen, Egan, Ellinger and Hamlin (2014) classified managerial coaching
practices into four types according to the nature of the coaching relationship: hierarchical,
peer, team, and cross-organizational coaching. Hierarchical coaching involves supervisors
coaching their subordinates in one-on-one relationships, which is the most well-known
and researched type of managerial coaching. Peer coaching is a type of interaction
through which participants learn from each other in reciprocal relationships. Team
coaching essentially occurs between a team leader and team members, thus creating
completely different dynamics from one-on-one coaching. Cross-organizational coaching
occurs through a collaborative effort between two or more organizations (Foltos, 2013).
Dahling, Taylor, Chua and Dwight (2015) conducted a longitudinal study testing the
linkage of managerial coaching frequency and skill to the goal attainment of
pharmaceuticals sales representatives at multi-levels. Their findings showed that
managers’ coaching skills were positively associated with the annual goal attainment of
their direct sales representatives. At a cross-level, coaching skills reduced the association
between coaching frequency and objective achievement. Moreover, the frequency of
coaching negatively influenced sales goal attainment when coaching skills were at a low
level. Huang and Hsieh (2015) examined the effects of managerial coaching on
employees’ in-role and proactive career behaviour, with an investigation of the mediating
role of psychological empowerment. The results of a data analysis using 324 Taiwan
employees showed that managerial coaching has positive effects on employees’
performance and proactive career behaviour.
25
Kim (2014) investigated the effects of a mediating mechanism on the relationship
between managerial coaching and employee outcomes. Based on a study of 234
employees at a private Korean company, the author examined the direct effects of
managerial coaching on role clarity and job performance. Managerial coaching indirectly
influenced job satisfaction through role clarity, organizational commitment through job
satisfaction, and job performance through role clarity. Liu and Batt (2010) studied the
influence of coaching practices on the overall performance improvement of employees in
organizations in the 21st century. Utilizing a quasi-experimental design in a call centre,
calls or task assignments were randomly distributed via automated technology. The
authors found that the extent to which call centre agents received coaching each month
predicted their performance improvement. Additionally, this positive relationship was
strengthened by the provision of group incentives.
2.4.2 Feedback
Steelman and Williams (2019) described feedback as a management procedure for
learning how much efficiency and productivity an employee's work-related activities have
improved, as well as what kind of results these activities have produced. Feedback is the
extent to which an employee is given information about the quality of his or her
performance either by management, co-workers, or the job itself. Prompting on the other
hand provides support to the participants as they attempt to reach their set goals.
Feedback provides participants with knowledge about their performance. For goals to be
effective, people need summary feedback that reveals progress with their goals. If they
don't know how they are doing, it is difficult or impossible for them to adjust the level or
direction of their effort or to adjust their performance strategies to match what the goal
requires (Clark, 2018).
Feedback can be seen as one of the most prevalent interventions in the field of
organizational behaviour management and is a highly popular invention in the domain of
applied behaviour analysis (Greve, 2015). This is due to the many benefits feedback
provides such as its low cost, flexibility, ease of use, and simplicity. Although feedback is
broadly used to improve performance, the feedback outcome highly varies along with
several dimensions. For instance, the result of feedback can differ according to the
feedback mechanism used such as verbal or written feedback i.e. whether the feedback is
26
given orally or provided by the text. The second dimension is the recipient of feedback
i.e. whether the feedback is given individually or in a group. The third level is the
temporal characteristics of feedback such as when the feedback is given and the duration
of feedback i.e. how much time it takes to give or receive the feedback (London, 2015).
Clark (2018) affirms that the concept of feedback is explained in a variety of ways in
many fields. To achieve development, it is the most crucial information in a performance
evaluation system Related data explains how others view and evaluate an individual's
actions from the perspective of interpersonal contact. Steelman and Williams (2019)
defined feedback as an individual intentionally attempting to create the right and suitable
conduct to attain desirable outcomes. It has been suggested that providing relevant and
constructive performance feedback delivers extremely beneficial results in resolving
workplace difficulties, enhancing motivation, and promoting learning.
Providing feedback to employees is believed to be essential for maintaining and
increasing employee motivation and satisfaction (DeCenzo & Robbins, 2015).
Traditionally, the formal performance appraisal review has been considered as the ideal
platform for supervisors to provide feedback to employees about how they view
employee performance. However, the performance appraisal review is no panacea for
employee motivation and satisfaction. Recently, calls have been made for putting more
emphasis on the development of an organizational culture that is supportive of feedback
processes to increase motivation and satisfaction (Fletcher, 2016).
A qualitative case study by Choi, Johnson, Moon, and Oah (2018) illustrated some of the
problems associated with performance appraisal. Employees noted that feedback in
performance appraisal was problematic for improving employee motivation and
performance, and as communication, a tool to improve the manager/subordinate
relationship. Employee suggestions for improving the feedback process were (a) that
managers make more time available, (b) increase their knowledge of actual performance,
(c) better clarify performance expectations, (d) put greater emphasis on employee
development, (e) do not dwell on negatives, (f) provide more ongoing feedback, and (g)
increase two-way communication.
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2.5 Job Satisfaction
According to Hee, Ong, Ping, Kowang and Fei (2019) Job satisfaction is a significant
aspect of success in any organization. Job satisfaction reflects the relative feelings,
objective thoughts, and behavioural intentions of employees in an organization that help
predict employee behaviour. Therefore, job satisfaction can be used as part of evaluations
that lead to planning for organizational improvement by presenting results from past
strategies and future projections of employees. Pleased and motivated employees will
guarantee the organization's long-term success and it is believed that job satisfaction by
all employees in any organization is directly related to their level of motivation (Richard,
2013). Employees are dissatisfied with their supervisor's behaviour such as paying salary,
internal policies, promotional opportunities, and organizational management. One of the
most important consequences of job dissatisfaction is the quantitative and qualitative
decline in performance (Gupta & Garg, 2017).
Singhai, Dani, Hyde and Patel (2016) opine that job satisfaction is the assessment of the
employee's job and his/her company as contributing rightfully to the achievement of one’s
purpose. The substantial time spent by employees at the workplace makes job satisfaction
an important factor as dissatisfaction can have an unfavourable impact on the employee's
personal life as well (Abuhashesh, Al-Dmour & Masa’deh, 2019). The general attitude of
people towards their job is a behavioural phenomenon that is interpreted as job
satisfaction and is the result of one's positive and negative beliefs about the dimensions of
his or her job. Job satisfaction can be considered a psychological factor and it is
considered a kind of emotional adjustment to the job and the conditions of employment.
That is, if the job in question gives the person pleasure, then the person is satisfied with
the job. Conversely, if the desired job does not provide the desired satisfaction and
enjoyment tomorrow, then the person begins to blame the job and seeks to change it
(Shooshtarian, Ameli & AminiLari 2013). job satisfaction will be achieved through the
realization of a set of factors, including the nature and conditions of work, salary,
opportunities for career advancement, how to supervise, relationships with colleagues,
and so on (Bakotić, 2016).
28
2.5.1 Monetary Rewards
According to Karandish and Ali (2015) monetary rewards refer to money-based
incentives given to employees whenever they achieve or meet their expectations. This
includes an incentive that increases the compensation of an employee, such as paid
holidays, salaries increment, paid internships, and bonuses. In other words, it refers to
rewarding employees with money after performing their duties excellently strengthens
their workers is important. Employees will not perform best unless they are motivated to
work their level best. Nowadays human power has been educated about their rights and
duties where they understand the rights to acquire rewards for the work, they do rewards
are concerned with the elimination of dissatisfaction and increasing the workers’
performances (Karandish & Ali, 2015).
Aktar, Sachu and Ali (2016) explain that financial rewards can either be direct financial
or be indirect financial. Therefore, monetary rewards have a great impact on the
employees’ performances. These include strengthening the relationship between the
employers and their employees. This is a crucial aspect that is based on the respect of the
employers towards their employees through motivation. An employer offers monetary
rewards to his employees after observing their performances. The employer rewards the
best-performing workers in his or her firm. Through this kind of reward, the employers
create comfortable environments that motivate and additionally connect the workers to
their work and are more committed to their work. This is the most important impact of
monetary rewards as the good relationship between the employers, and their workers
create ample room for other positive results. The comfortable working environment
enhances development companies since the employees will be free to air their points of
view to their bosses (Narsee, 2012).
Erbasi and Arat (2012) study among food chain employees in Turkey, however, found
that higher levels of job satisfaction are more likely to be achieved through monetary
rewards as opposed to non-financial incentives. Similarly, Harunavamwe and Kanengoni
(2013) found a weak impact of money as a motivator among employees in South Africa.
However, Mehta's (2014) study in Pakistan revealed that an increase in monetary rewards
positively affected employee performance and job satisfaction), with this significant
relation being attributed to factors that vary from individual to individual whether the
29
employee is working in the private sector or public sector. Pennington (2014) carried out
a study and established that direct monetary rewards have a role in appealing to talented
employees into an organization as they act as a source of motivation. Igbaekemem (2014)
also concluded from his study in Nigeria that monetary incentives alone are not sufficient
to motivate employees.
2.5.2 Non-Monetary Rewards
Non-financial benefits, according to Fisher (2015) are non-monetary compensation
offered to employees. Even in the absence of monetary rewards, employee recognition
and self-esteem have the potential to motivate performance. Employers'
acknowledgements, recognition, and appreciation for teams or individual employees are
the most common non-monetary benefits. The structure, magnitude, scope, and formality
of these awards differ greatly. A non-monetary incentive is a non-cash award given to
employees to recognize their dedication, commitment, and performance in completing
duties by achieving or exceeding established criteria. Employee engagement in various
opportunities is influenced by these types of incentives. First, non-monetary incentives
increase employee motivation and performance as weel as job happiness (Chiang &
Birch, 2014).
Blount (2012) discovered that non-monetary rewards lead to improved time management.
Employees will increase their overall performance in the organization as they carefully
consider how to carry out their responsibilities. Job satisfaction can also be obtained
through non-monetary rewards, according to research conducted by Presslee (2013)
because both the employer and the employees respect each other and both work hard to
fulfill the goals set forth. They readily commit their time to these productive jobs, which
is a key factor in the company's success. Furthermore, non-monetary incentives
encourage workers to be safe in the workplace. Insecurity among workers arises as a
result of the eradication of dissatisfaction (Fisher, 2015).
According to Narsee (2012) Non-monetary incentives encourage an organization's
autonomy. This refers to an organization's individuals exercising self-governance. Non-
monetary benefits had a considerable effect on lower-level employee engagement,
according to Harunavamwe and Kanengoni's (2013) research of store workers in South
Africa. When monetary and non-monetary rewards are compared, it becomes evident that
30
monetary awards have short-term benefits whereas non-monetary rewards have long-term
benefits. According to studies, non-monetary awards have a greater impact on employee
engagement than monetary incentives. Tausif (2012) in a study on Pakistan’s educational
sector found out that job satisfaction is significantly influenced by non-monetary rewards.
The results obtained from the data which was collected from employees in public schools
illustrated that job enrichment, autonomy, and satisfaction are influenced by non-financial
incentives and increase with age. From the results, older employees were observed to
prefer non-financial rewards to younger employees.
2.5.3 Organizational Structure
Carbery (2018) indicate that organizational structure goes a long way to affect job
satisfaction. The consequences, however, vary depending on the structure and work
satisfaction factors. A highly decentralized organization where the authority to commit
people, money, and materials are widely diffused throughout every level of the
organization structure could lead to loss of control and organizational goals may be
jeopardized as subsidiary units may be inclined to look more to their own needs than to
those of colleagues and the overall organization needs. Organizational structure enhances
the realization of certain aspects of job satisfaction such as value attainment. On the other
hand, over-centralization of organizational structure which is more in line with the
classical school of thought that stressed a strictly defined hierarchy governed by clearly
defined regulations and lines of authority would kill initiatives and subsequently loss in
job satisfaction (Meyer, 2017).
Olubayo (2015) examined the effects of organizational structure on job satisfaction in the
Nigerian financial sector, empirical insight from selected banks in Lagos State. Data for
the study were gotten from both primary and secondary sources. A total of 335
questionnaires were administered randomly to selected banks out of 3711 officials of the
leading banks. However, only 280 of the administered questionnaires were filled and
returned and 259 of the questionnaires returned were found useful for data analysis. Two
hypotheses were advanced to guide the study. The findings of the study showed that
there was a correlation between organizational structure and components of job
satisfaction via the need for dominance, achievement & autonomy. The study
31
recommends that organizations should design a suitable structure that must begin with
some ideas of what the organization is out to achieve (prime purpose of the organization).
Carbery (2018) suggests that Human Resource policies concerning stimulating
performance evaluation mechanisms, performance-based reward mechanisms, and career
growth and promotion opportunities affect worker’s decisions of either staying or leaving
a job. Employees always look for career growth opportunities to stimulate them to stay in
their current job. Research has been conducted on the role of Human Resource policies in
mitigating voluntary turnover, and in each of the studies, the conclusion is that Human
Resource policies go a long way to affect employee retention. One primary Human
Resource tool that is used to affect motivation and performance is compensation
(Robinson & Pillemer, 2017). Employee dissatisfaction with compensation result in high
turnover and it provokes employee intention to leave a specific job or organization
permanently. A performance-based job description is a valuable approach because job
description reflects employee performance expectations (Robinson & Pillermer, 2017).
Alamdar, Muhammad, Muhammad and Wasim (2016) examined the impact of job
satisfaction on employee performance in autonomous Medical Institutions in Pakistan.
The study's sample included 200 doctors, nurses, administrative, and accounting
employees who worked in Punjab's autonomous medical institutions. A total of 250
questionnaires were distributed, with 200 being returned and analyzed. SPSS is a
statistical data analysis program. Promotion, job safety and security, working
circumstances, job autonomy, interaction with co-workers, relationship with supervisor,
and nature of work are all factors that affect job satisfaction and performance, according
to the findings.
Pushpakumari (2016) investigated the impact of job satisfaction on employees’
performance in Istanbul, Turkey. It looked at how employees' age, gender, and experience
affected their job satisfaction. In addition, it investigated the most satisfying event of an
employee in the job, why employees stay and leave the organization. Data were collected
through a field survey using a questionnaire from three employee groups, namely
Professionals, Managers, and Non-managers from twenty private sector organizations
32
covering five industries. It was shown that job satisfaction and employee performance
have a positive correlation.
2.6 Chapter Summary
This chapter has broadly evaluated the literature review about performance management
and job satisfaction the perceived concepts and theories the benefits and limitations. The
goal-setting process is very important in any organization due to its significant impact on
employee performance-productivity and job satisfaction which are core among other
outcomes and which heavily influence the live success of any organization. Training and
development provide a galaxy of benefits to both the employer and employees. Coaching
helps leaders to bring out the best in employees throughout the organization and they
begin to embrace and engage in critical thinking. Good feedback thus reduces uncertainty
and increases motivation thus enhancing employee job satisfaction. The next chapter
consists of research methodologies.
33
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter describes how the research was conducted. An explanation of the research
design, the population sample that was used is given, and the sampling methods that were
applied. It explains the data collection methods that were applied and how the data was
analyzed to produce the required information for this study.
3.2 Research Design
Kothari and Garg (2014) define research design as a conceptual structure within which
research is conducted. The research design enables the evidence gathered by the
researcher to effectively address the research problem logically (Saunders, Lewis &
Thornhill, 2016). First, the researcher must be objective and specific about which they
want to investigate. Secondly, the researcher then determines the best way to achieve it.
When the first consideration is well handled, then the researcher can handle the second in
the same process. An explanatory research design was adopted in this study.
An explanatory research design explains and takes into account the descriptive
information. This research design seeks to ask 'why' and 'how' questions (Grey, 2014).
The main reason this research design was adopted, was because it expanded and gave
more actual reasons as to why a phenomenon occurred. The design focuses on the causes
and reasons and highlights the evidence to support or refute the given prediction or
explanation. This research design also reports the relationship that exists among given
aspects in the phenomenon that is being studied. This research design is superior
compared to exploratory which doesn't give a conclusive answer and descriptive research
design which only asks 'what kind of questions. The study established a model with
variables. Goal setting, training & development, feedback, and coaching were used as the
causal variables. The study determined the relationship that existed among these
variables.
34
3.3 Population and Sampling Design
3.3.1 Population
Mugenda and Mugenda (2012) refer to the population as an aggregate or totality of all the
objects, subjects, or members that conform to a set of specifications. Furthermore, the
population has been defined as the total number of units (individuals, organizations,
events, objects, or items) from which samples are selected for measurement (Parahoo,
2014). For this study, the target population was employees of the top four insurance
companies. A population of 2554 employees working at the top four insurance firms was
used in this study which included Jubilee, Britam, CIC, and UAP Insurance Companies as
indicated in Table 3.1.
Table 3.1: Population Distribution
Insurance Company Population Percentage
Jubilee 1,214 48
Britam 940 37
CIC 275 10
UAP 125 5
Total 2554 100
Source: Insurance Firms Human Resource Staff List (2021)
3.3.2 Sampling Design
3.3.2.1 Sampling Frame
A sampling frame is the list of all those units within the population that can be sampled
(Lorh, 2010). In this study, the sampling frame was drawn from the human resource
departments of the top four insurance companies. This was used to ensure that the
sampling frame was current, complete, and relevant for the attainment of the study
objectives.
3.3.2.2 Sampling Technique
The sampling technique refers to the method used to obtain a sample from the population
(Bryman & Bell, 2015). Several techniques are widely accepted. This study relied on
stratified sampling. The population was divided into subgroups through stratified
sampling. Random samples from each of the groups or strata were taken in the same
35
proportion as the population. The strata consisted of subgroups of employees based on
employee positions from Jubilee, Britam, CIC, and UAP Insurance Companies. The
researcher used stratified sampling because the population was stratified.
3.3.2.3 Sample Size
According to Cooper and Schindler (2014), the size of a sample should be determined by
the variation in the population parameters under study as well as the estimating precision
required by the researcher. Saunders, Lewis and Thornhill (2010) finds that sample size is
the statistically determining factor to be studied. The sample size is defined as a variation
in the population and the variables to be studied. For this study, the sample size was
determined using Yamane's (1973) formula, which resulted in 346 employees, who were
distributed as shown in Table 3.2.
Where:
𝑛 = corrected sample size,
𝑁= population size, and
𝑒 = Margin of error (MoE), e = 0.05
Therefore
Table 3.2: Sample Size
Insurance Company Population Percentage Sample Size
Jubilee 1,214 47 165
Britam 940 37 127
CIC 275 11 37
UAP 125 5 17
Total 2554 100 346
36
3.4 Data Collection Methods
Copper and Schindler (2014) define data collection methods as mechanisms a researcher
employs to collect data from respondents of the study to answer the research questions.
Data that is collected first-hand by a researcher is known as primary data while data that
has been collected and is available at libraries, online journals, or other publications are
known as secondary data (Mesly, 2015). The primary data was used to acquire
information. This study made use of a questionnaire as a tool to collect primary data. A
questionnaire tool in research is used to collect data where a researcher wants structured
responses (Cox & Hassard, 2010). The researcher used a questionnaire using a five-level
Likert scale that ranges from strongly disagree to strongly agree. Questions of the
research purpose were included in the closed-ended questionnaire, which was divided into
four sections: the first section questions were about the respondent’s general information,
the second section questions were about goal setting, the third section questions were
about training and development and the fourth section questions regarding feedback and
coaching.
3.5 Research Procedures
The researcher created a debriefing and consent form prior to data collection, which was
submitted with the research proposal to the Chandaria School of Business, United States
International University – Africa (USIU-A) Institutional Review Board (IRB) for
approval. The researcher was issued an IRB letter after approval. Besides, a research
permit was obtained from the National Commission for Science, Technology, and
Innovation (NACOSTI) for the validity of the proposal which was submitted to the
insurance companies’ human resource managers for relevant approvals. After being
granted approvals, the researcher piloted the questionnaire, to ensure the study's validity
and reliability.
A pilot study was conducted to test for both validity and reliability of the research
instruments. According to Copper and Schindler (2014) validity determines whether the
research truly measures that which it was intended to measure or how truthful the
research results are. The validity of this study was established by addressing a series of
questions and comments from the supervisor, statisticians, and colleagues. The validity
was ensured by focusing on questions purely on the effects of the influence of
37
performance management on job satisfaction among employees thereby narrowing bias
ensuring that the causal effect is queried. Reliability on the other hand measures the
degree to which a research instrument gives consistent results (Copper & Schindler
2014). Errors likely to affect reliability are interviewer/interviewee fatigue, bias from the
interviewer and inaccuracy of the instrument in use, inaccuracy in scoring by the
researcher, and finally, unexplained errors whose source cannot be determined. The study
used the Cronbach Alpha test to determine the reliability of the questionnaire which
according to Singh, Sedory, Rueda, Arcos, and Arnab (2015), the threshold for a reliable
tool is between ≥0.5 to ≥0.7 for questionnaire items ranging between 5-10. Because all of
the questionnaire sections got a score of ≥0.7, table 3.3 suggests that the study
questionnaire was credible.
Table 3.3: Reliability Output
3.6 Data Analysis Methods
The collected data were analysed using descriptive statistics such as frequencies and
percentages. The descriptive analysis involves a process of transforming a mass of raw
data into tables, charts with frequency distribution, and percentages (Wetcher-Hendricks,
2011). Figures and tables were used to present the analyzed data as well as the
interpretation of the results. The data were analyzed using SPSS, which was excellent for
data analysis because it allowed the researcher to evaluate and analyze quantitative data
in the study. The main inferential statistics that were used to test the significance of the
relationship between the study variables were correlations and linear regressions.
Correlation analysis is a measure of association between two variables while controlling
or adjusting the effect of one or more additional variables, and it was used to test for
significance among the study variables. The linear regression analysis was also used to
38
examine the level of influence the independent variables had on the dependent variable.
The following regression equation was used:
Y=β0+β1X1 +β2X2 +β3X3+ ε
Where;
Y= Job Satisfaction
β0= constant
β1……β3 =coefficients
X1= Goal setting
X2 = Training and development
X3= Feedback and coaching
ε = error term
3.7 Chapter Summary
This chapter focuses on the study's methodology. This part also discussed the research
design that was employed and the significance of selecting the methodologies that were
used to conduct the study. The study design, target population, sample design and
technique, forms of data collecting, the research procedure, and data analysis
methodologies are all covered in this chapter. Results findings are stated in Chapter four.
39
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
This chapter presents the results and findings for the influence of performance
management on job satisfaction among employees in the insurance industry in Kenya,
and it follows the guideline of the questionnaire as it focuses on the response rate,
demographic information, as well as goal setting, training and development, and feedback
and coaching on job satisfaction among employees in the insurance industry.
4.2 Response Rate and Demographic Information
This bit of the study presents the descriptive analysis for the response rate, respondents’
gender, the highest level of education, the number of years they had worked for insurance
companies, and their position in the company.
4.2.1 Response Rate
The researcher distributed questionnaires to the 346 respondents, and only 304 responses
were obtained, this gave the study a response rate of approximately 88% as presented in
Figure 4.1 which surpassed the required threshold. According to Wetcher-Hendricks
(2011), a study that acquires a response rate of 51% and above is deemed valid.
Figure 4.1: Response Rate
4.2.2 Respondents’ Gender
The respondents were asked to declare their gender, and as shown in Figure 4.2. 53%
percent were male and 47% were female. This result shows that both genders were well
represented in the study, and thus the study results did not suffer gender biases.
40
Figure 4.2: Respondents’ Gender
4.2.3 Respondents’ Level of Education
The researcher requested the respondents to indicate their highest level of education, and
Figure 4.3 shows that 61% had obtained their undergraduate degrees, 31% had obtained
their master’s degrees, and 8% had obtained their diplomas. This shows that the insurance
industry has well-educated individuals, and they could understand the study questions.
Figure 4.3: Respondents’ Level of Education
4.2.4 Years Worked
Figure 4.4 reveals that 41 %of respondents had worked in the insurance industry for 1 to
5 years, 29 % for 6 to 10 years, 12 % for 21 years and above, 10% for 11 to 15 years, and
8 % for 16 to 20 years. This shows that majority of the respondents had been in the
industry for more than 5 years, meaning the study respondents were well experienced and
could provide the study with relevant responses based on their experience.
41
Figure 4.4: Years Worked
4.2.5 Respondents’ Position
The researcher requested the respondents to indicate their position within their respective
firms, and Figure 4.5 shows that 59% were officers, 22% were managers, and 19% were
supervisors. This result shows that all management levels were well represented in the
study, and thus provided a comprehensive result for the study.
Figure 4.5: Respondents’ Position
4.3 Influence of Goal Setting on Job Satisfaction among Employees
The first objective of the study sought to determine the influence of goal setting on job
satisfaction among employees in the insurance industry in Kenya. This bit of the study
presents the descriptive (frequencies, means, and standard deviations) and inferential
(correlation and linear regression) analysis for the obtained responses. These have been
presented using tables.
42
4.3.1 Descriptives for Goal Setting and Job Satisfaction
Table 4.1 shows that goals directed the attention and efforts of employees towards
relevant activities as agreed to by 95.4% of the respondents, 2.6% disagreed, and 2%
were neutral (mean=4.37, standard deviation=0.729). Goals motivated employees in
putting more effort into their activities as agreed to by 88.8% of the respondents, 9.5%
were neutral, and 1.6% disagreed (mean=4.37, standard deviation=0.789). Goals
facilitated employees’ persistence at work as agreed to by 86.8% of the respondents, 7.9%
were neutral, and 5.3% disagreed (mean=4.15, standard deviation=0.802). Goals aroused
employees to take action using task-relevant knowledge and strategies as agreed to by
86.5% of the respondents, 9.9% were neutral, and 3.6% disagreed (mean=4.16, standard
deviation=0.807).
The organizational goals provided employees with specific and clear plans as agreed to
by 79.6% of the respondents, 15.5% were neutral, and 4.9% disagreed (mean=4.24,
standard deviation=0.889). Employees in the firm were involved in the decision-making
process as agreed to by 39.5% of the respondents, 36.8% were neutral, and 23.7%
disagreed (mean=3.24, standard deviation=1.016). Goals in the firm had enhanced job
challenges for the employees as agreed to by 46.7% of the respondents, 35.5% were
neutral, and 17.7% disagreed (mean=3.38, standard deviation=1.033).
Employees in the firm had the intention of increasing their effort toward goal attainment
as agreed to by 84.8% of the respondents, 10.9% were neutral, and 4.2% disagreed
(mean=4.08, standard deviation=0.804). High-set goals within the firm facilitated
employees’ commitment to attaining them as agreed to by 60.9% of the respondents,
27.6% were neutral, and 11.5% disagreed (mean=3.67, standard deviation=1.042). Work
setting had a high influence on the achievement of organizational goals as agreed to by
87.2% of the respondents, 9.5% were neutral, and 3.3% disagreed (mean=4.30, standard
deviation=0.811).
43
Table 4.1: Descriptives for Goal Setting and Job Satisfaction
SD D N A SA Mean Std
Dev % % % % %
Goals direct the attention and efforts of
employees towards relevant activities
1.6 1 2 49.3 46.1 4.37 .729
Goals motivate employees in putting
more effort into their activities
1.6 0 9.5 37.8 51 4.37 .789
Goals facilitate employees; persistence at
work
.7 4.6 7.9 52.6 34.2 4.15 .802
Goals arouse employees to take action
using task-relevant knowledge and
strategies
1.6 2 9.9 51.6 34.9 4.16 .807
The organizational goals provide
employees with specific and clear plans
0 4.9 15.5 30.3 49.3 4.24 .889
Employees in the firm are involved in
the decision-making process
3.6 20.1 36.8 28 11.5 3.24 1.016
Goals in the firm have enhanced job
challenges for the employees
4.9 12.8 35.5 32.9 13.8 3.38 1.033
Employees in the firm have the intention
of increasing their effort toward goal
attainment
1.6 2.6 10.9 55.9 28.9 4.08 .804
High-set goals within the firm facilitate
employees’ commitment to attaining
them
4.6 6.9 27.6 38.5 22.4 3.67 1.042
Work setting has a high influence on the
achievement of organizational goals
1 2.3 9.5 40.5 46.7 4.30 .811
4.3.2 Correlations Analysis Between Goal Setting and Job Satisfaction
Correlation analysis was conducted to ascertain whether there existed a statistically linear
relationship between goal setting and job satisfaction. Table 4.2 shows that there existed a
statistically linear relationship between goal setting and job satisfaction and that goal-
setting was a significant factor in job satisfaction (r=549, p=<0.05).
44
Table 4.2: Correlations Analysis Between Goal Setting and Job Satisfaction
Job Satisfaction Goal Setting
Job Satisfaction 1
Goal Setting
.549**
.000
1
** Correlation is significant at the 0.01 level (2-tailed)
4.3.3 Linear Regression Analysis
4.3.3.1 Model Summary Between Goal Setting and Job Satisfaction
Linear regression analysis was conducted to ascertain the course of the existing linear
relationship between goal setting and job satisfaction. Table 4.3 shows the linear
regression model summary between goal setting and job satisfaction, and it indicates that
goal setting could account for 29.9% of the variability in the job satisfaction of insurance
firm employees in Kenya.
Table 4.3: Model Summary Between Goal Setting and Job Satisfaction
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .549ª .302 .299 .58504
a. Predictors: (Constant), Goal Setting
4.3.3.2 Regression ANOVA
The analysis of variance (ANOVA) was conducted to ascertain the nature of the existing
relationship between goal setting and job satisfaction. Table 4.4 shows that there existed a
statistically linear relationship between goal setting and job satisfaction F (1,302) =
130.444, p<.05).
Table 4.4: Regression ANOVA Between Goal Setting and Job Satisfaction
Model Sum of Squares df Mean Square F Sig.
1 Regression
Residual
Total
44.648
103.367
148.015
1
302
303
44.648
.342
130.444 .000b
a. Predictors: (Constant), Goal Setting
b. Dependent Variable: Job Satisfaction
45
4.3.3.3 Regression Coefficients Between Goal Setting and Job Satisfaction
Linear regression coefficients were used to ascertain the course of the existing linear
relationship between goal setting and job satisfaction Table 4.5 shows that goal-setting
could significantly and statistically influence the job satisfaction of insurance industry
employees, in that a unit increase in goal setting could improve job satisfaction by a mean
of 0.702 (70.2%).
Table 4.5: Regression Coefficients Between Goal Setting and Job Satisfaction
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
B Std. Error Beta
1 (Constant)
Goal Setting
1.270
.702
.248
.061
.549
5.125
11.421
.000
.000
a. Dependent Variable: Job Satisfaction
4.4 Influence of Training and Development on Job Satisfaction among Employees
The second objective of the study sought to examine the influence of training and
development on job satisfaction among employees in the insurance industry in Kenya.
This bit of the chapter presents the descriptive (frequencies, means, and standard
deviations) and inferential (correlation and linear regression) analysis for the obtained
responses. These have been presented using tables.
4.4.1 Descriptives for Training and Development and Job Satisfaction
Table 4.6 shows that training and development provided insight into employees’ strengths
and weaknesses as agreed to by 92.4% of the respondents, 4.9% were neutral, and 2.6%
disagreed (mean=4.47, standard deviation=0.712). Training had increased employees’
level of job satisfaction as agreed to by 75.4% of the respondents, 20.4% were neutral,
and 4.3% disagreed (mean=4.16, standard deviation=0.896). Training in the firm was
aimed at equipping employees with the necessary skills they need to serve as agreed to by
87.8% of the respondents, 9.5% were neutral, and 2.6% disagreed (mean=4.44, standard
deviation=0.773). The firm’s training programs had facilitated its ability to gain a
competitive advantage over its counterparts as agreed to by 85.9% of the respondents,
9.5% were neutral, and 4.6% disagreed (mean=4.23, standard deviation=0.864).
46
Table 4.6: Descriptives for Training and Development on Job Satisfaction
SD D N A SA Mean Std
Dev % % % % %
Training and development provide
insight into employees’ strengths and
weaknesses
0 2.6 4.9 35.2 57.2 4.47 .712
Training has increased employees’ level
of job satisfaction
0 4.3 20.4 30.3 45.1 4.16 .896
Training in the firm is aimed at
equipping employees with the necessary
skills they need to serve
0 2.6 9.5 28.9 58.9 4.44 .773
The firm’s training programs have
facilitated its ability to gain a
competitive advantage over its
counterparts
1.6 3 9.5 42.1 43.8 4.23 .864
The organization customizes its activities
to the ability level of the employees
being trained
.7 13.8 24.7 37.5 23.4 3.69 1.000
Employees in the firm are more satisfied
with a formal training program
1.6 16.8 18.1 46.1 17.4 3.61 1.012
The firm uses specific on-the-job
training to increase employees’
productivity
1 2.6 15.8 52.6 28 4.04 .795
The success of the organization’s
development activities is dependent on
the degree that employees are personally
involved
0 5.3 20.7 39.1 34.9 4.04 .876
The firm uses career development to
meet the organizational and individual
needs of the firm
0 4.9 18.4 46.7 29.9 4.02 .826
The firm employees have a sense of
personal growth due to the learning
opportunities they have
0 9.5 16.4 38.8 35.2 4.00 .949
47
The table also shows that the organization customized its activities to the ability level of
the employees being trained as agreed to by 60.9% of the respondents, 24.7% were
neutral, and 14.5% disagreed (mean=3.69, standard deviation=1.000). Employees in the
firm were more satisfied with a formal training program as agreed to by 63.5% of the
respondents, 18.1% were neutral, and 18.4% disagreed (mean=3.61, standard
deviation=1.012). The firm used specific on-the-job training to increase employees’
productivity as agreed to by 80.6% of the respondents, 15.8% were neutral, and 3.6%
disagreed (mean=4.04, standard deviation=0.795).
The success of the organization’s development activities was dependent on the degree
that employees are personally involved as agreed to by 74% of the respondents, 20.7%
were neutral, and 5.3% disagreed (mean=4.04, standard deviation=0.876). The firm used
career development to meet the organizational and individual needs of the firm as agreed
to by 76.6% of the respondents, 18.4% were neutral, and 4.9% disagreed (mean=4.02,
standard deviation=0.826). The firm employees had a sense of personal growth due to the
learning opportunities they had as agreed to by 74% of the respondents, 16.4% were
neutral, and 9.5% disagreed (mean=4.00, standard deviation=0.949).
4.4.2 Correlations Analysis Between Training and Development and Job Satisfaction
Correlation analysis was conducted to ascertain whether there existed a statistically linear
relationship between training and development and job satisfaction. Table 4.7 shows that
there existed a statistically linear relationship between training and development on job
satisfaction and that training and development was a significant factor in job satisfaction
(r=504, p=<0.05).
Table 4.7: Correlations Analysis Between Training and Development and Job
Satisfaction
Job Satisfaction Training and Development
Job Satisfaction 1
Training and Development .504**
.000
1
** Correlation is significant at the 0.01 level (2-tailed)
48
4.4.3 Linear Regression Analysis
4.4.3.1 Model Summary Between Training and Development and Job Satisfaction
Linear regression analysis was conducted to ascertain the course of the existing linear
relationship between training and development and job satisfaction. Table 4.8 shows the
linear regression model summary between training and development and job satisfaction,
and it indicates that training and development could account for 25.1% of the variability
in the job satisfaction of insurance firm employees in Kenya.
Table 4.8: Model Summary Between Training and Development on Job Satisfaction
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .504ª .254 .251 .60485
a. Predictors: (Constant), Training and Development
4.4.3.2 Regression ANOVA
The ANOVA was conducted to ascertain the nature of the existing relationship between
training and development and job satisfaction. Table 4.9 shows that there existed a
statistically linear relationship between training and development and job satisfaction F
(1,302) = 102.588, p<.05).
Table 4.9: Regression ANOVA Between Training and Development and Job
Satisfaction
Model Sum of Squares df Mean Square F Sig.
1 Regression
Residual
Total
37.531
110.484
148.015
1
302
303
37.531
.366
102.588 .000b
a. Predictors: (Constant), Training and Development
b. Dependent Variable: Job Satisfaction
4.4.3.3 Regression Coefficients Between Training and Development and Job
Satisfaction
Linear regression coefficients were used to ascertain the course of the existing linear
relationship between training and development and job satisfaction Table 4.10 shows that
training and development could significantly and statistically influence the job
49
satisfaction of insurance industry employees, in that a unit increase in training and
development could improve job satisfaction by a mean of 0.603 (60.3%).
Table 4.10: Regression Coefficients Between Training and Development and Job
Satisfaction
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
B Std. Error Beta
1 (Constant)
Training and Development
1.619
.603
.245
.060
.504
6.610
10.129
.000
.000
a. Dependent Variable: Job Satisfaction
4.5 Influence of Feedback and Coaching on Job Satisfaction among Employees
The third objective sought to examine the influence of feedback and coaching on job
satisfaction among employees in the insurance industry in Kenya. This bit of the chapter
presents the descriptive (frequencies, means, and standard deviations) and inferential
(correlation and linear regression) analysis for the obtained responses. These have been
presented using tables.
4.5.1 Descriptives for Feedback and Coaching and Job Satisfaction
Table 4.11 shows that the firm used coaching to bring out the best in its employees as
agreed to by 70.1% of the respondents, 18.1% were neutral, and 11.9% disagreed
(mean=3.87, standard deviation=0.997). Employees received instant feedback about their
performance in the firm as agreed to by 47.4% of the respondents, 33.9% were neutral,
and 18.8% disagreed (mean=3.39, standard deviation=0.968). The firm allowed the
employees to identify key goals that they want to meet within a set period as agreed to by
67.1% of the respondents, 22.4% were neutral, and 10.5% disagreed (mean=3.72,
standard deviation=0.854). The firm raised the employees’ self-awareness of all the
factors underlying their performance against their goal as agreed to by 63.8% of the
respondents, 28.9% were neutral, and 7.2% disagreed (mean=3.69, standard
deviation=0.785).
50
Table 4.11: Descriptives for Feedback and Coaching on Job Satisfaction
SD D N A SA Mean Std
Dev % % % % %
The firm uses coaching to bring out the
best in its employees
1 10.9 18.1 39.8 30.3 3.87 .997
Employees receive instant feedback
about their performance in the firm
2 16.8 33.9 35.2 12.2 3.39 .968
The firm allows the employees to
identify key goals that they want to meet
within a set period
0 10.5 22.4 51.3 15.8 3.72 .854
The firm raises the employees’ self-
awareness of all the factors underlying
their performance against their goal
0 7.2 28.9 51 12.8 3.69 .785
The firm supervisors coaching their
subordinates based on the one-on-one
relationship program
4.6 13.2 26.6 36.5 19.1 3.52 1.084
Managerial coaching has resulted in
positive performance among employees
0 10.2 18.8 48.4 22.7 3.84 .893
Feedback is used in the firm to provide
employees with knowledge about their
performance
2.6 11.2 24.3 51.6 10.2 3.56 .914
The firm uses a performance evaluation
system to determine the performance of
its employees
.7 9.9 13.5 41.8 34.2 3.99 .966
The firm’s performance feedback system
has yielded effective results in solving
organizational problems
6.3 4.9 28.9 42.4 17.4 3.60 1.033
Providing feedback to employees is
essential for their job satisfaction
1.6 1.6 10.5 30.3 55.9 4.37 .862
The table also shows that firm supervisors coached their subordinates based on the one-
on-one relationship program as agreed to by 55.6% of the respondents, 26.6% were
neutral, and 17.8% disagreed (mean=3.52, standard deviation=1.084). Managerial
51
coaching had resulted in positive performance among employees as agreed to by 71.1%
of the respondents, 18.8% were neutral, and 10.2% disagreed (mean=3.84, standard
deviation=0.893). Feedback was used in the firm to provide employees with knowledge
about their performance as agreed to by 61.8% of the respondents, 24.3% were neutral,
and 13.8% disagreed (mean=3.56, standard deviation=0.914).
The firm used a performance evaluation system to determine the performance of its
employees as agreed to by 76% of the respondents, 13.5% were neutral, and 10.6%
disagreed (mean=3.99, standard deviation=0.966). The firm’s performance feedback
system had yielded effective results in solving organizational problems as agreed to by
59.8% of the respondents, 28.9% were neutral, and 11.2% disagreed (mean=3.60,
standard deviation=1.033). Providing feedback to employees was essential for their job
satisfaction as agreed to by 86.2% of the respondents, 10.5% were neutral, and 3.2%
disagreed (mean=4.37, standard deviation=0.862).
4.5.2 Correlations Analysis Between Feedback and Coaching and Job Satisfaction
Correlation analysis was conducted to ascertain whether there existed a statistically linear
relationship between feedback and coaching and job satisfaction. Table 4.12 shows that
there existed a statistically linear relationship between feedback and coaching on job
satisfaction, and that feedback and coaching was a significant factor in job satisfaction
(r=594, p=<0.05).
Table 4.12: Correlations Analysis Between Feedback and Coaching and Job
Satisfaction
Job Satisfaction Feedback and Coaching
Job Satisfaction 1
Feedback and Coaching .594**
.000
1
** Correlation is significant at the 0.01 level (2-tailed)
52
4.5.3 Linear Regression Analysis
4.5.3.1 Model Summary Between Feedback and Coaching and Job Satisfaction
Linear regression analysis was conducted to ascertain the course of the existing linear
relationship between feedback and coaching and job satisfaction. Table 4.13 shows the
linear regression model summary between feedback and coaching and job satisfaction,
and it indicates that feedback and coaching could account for 35.1% of the variability in
the job satisfaction of insurance firm employees in Kenya.
Table 4.13: Model Summary Between Feedback and Coaching on Job Satisfaction
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .594ª .353 .351 .56314
a. Predictors: (Constant), Feedback and Coaching
4.5.3.2 Regression ANOVA
The ANOVA was conducted to ascertain the nature of the existing relationship between
feedback and coaching and job satisfaction. Table 4.14 shows that there existed a
statistically linear relationship between feedback and coaching and job satisfaction F
(1,302) = 164.733, p<.05).
Table 4.14: Regression ANOVA Between Feedback and Coaching and Job
Satisfaction
Model Sum of Squares df Mean Square F Sig.
1 Regression
Residual
Total
52.242
95.773
148.015
1
302
303
52.242
.317
164.733 .000b
a. Predictors: (Constant), Feedback and Coaching
b. Dependent Variable: Job Satisfaction
4.5.3.3 Regression Coefficients Between Feedback and Coaching and Job
Satisfaction
Linear regression coefficients were used to ascertain the course of the existing linear
relationship between feedback and coaching and job satisfaction Table 4.15 shows that
feedback and coaching could significantly and statistically influence the job satisfaction
53
of insurance industry employees, in that a unit increase in feedback and coaching could
improve job satisfaction by a mean of 0.668 (66.8%).
Table 4.15: Regression Coefficients Between Feedback and Coaching and Job
Satisfaction
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
B Std. Error Beta
1 (Constant)
Feedback and Coaching
1.568
.668
.198
.052
.594
7.918
12.835
.000
.000
a. Dependent Variable: Job Satisfaction
4.6 Employees’ Job Satisfaction
This bit of the chapter presents the descriptive (frequencies, means, and standard
deviations) and inferential (correlation and linear regression) analysis for the obtained
responses for job satisfaction. These have been presented using tables.
4.6.1 Descriptives for Employees’ Job Satisfaction
Table 4.16 shows that salaries increments had increased employees’ job satisfaction as
agreed to by 80% of the respondents, 10.5% disagreed, and 9.5% were neutral
(mean=4.11, standard deviation=1.040). The provision of bonuses had facilitated
employees’ job satisfaction as agreed to by 81.2% of the respondents, 12.5% disagreed,
and 6.3% were neutral (mean=4.15, standard deviation=1.079). Rewards have eliminated
dissatisfaction among the workers’ hence increasing job satisfaction as agreed to by
69.7% of the respondents, 22.4% were neutral, and 7.9% disagreed (mean=3.88, standard
deviation=0.974). Conducive working conditions had influenced employees’ job
satisfaction as agreed to by 90.4% of the respondents, 6.3% were neutral, and 3.2%
disagreed (mean=4.33, standard deviation=0.802).
Job safety and security had influenced employees’ job satisfaction as agreed to by 76% of
the respondents, 18.1% were neutral, and 5.9% disagreed (mean=4.11, standard
deviation=0.904). Acknowledgements had increased job satisfaction among employees as
agreed to by 78.6% of the respondents, 16.4% were neutral, and 4.9% disagreed
54
(mean=4.15, standard deviation=0.871). Recognition within the firm had increased job
satisfaction among employees as agreed to by 78.9% of the respondents, 18.4% were
neutral, and 2.6% disagreed (mean=4.17, standard deviation=0.820).
Table 4.16: Descriptives for Employees’ Job Satisfaction
SD D N A SA Mean Std
Dev % % % % %
Salaries increments have increased
employees’ job satisfaction
2.6 7.9 9.5 35.9 44.1 4.11 1.040
The provision of bonuses has facilitated
employees’ job satisfaction
2.6 9.9 6.3 32.2 49 4.15 1.079
Rewards have eliminated dissatisfaction
among the workers’ hence increasing job
satisfaction
2.6 5.3 22.4 40.8 28.9 3.88 .974
Conducive working conditions have
influenced employees’ job satisfaction
1.6 1.6 6.3 43.4 47 4.33 .802
Job safety and security has influenced
employees’ job satisfaction
0 5.9 18.1 35.2 40.8 4.11 .904
Acknowledgments have increased job
satisfaction among employees
0 4.9 16.4 36.8 41.8 4.15 .871
Recognition within the firm have
increased job satisfaction among
employees
0 2.6 18.4 37.8 41.1 4.17 .820
Organizational structure enhances the
realization of certain aspects of job
satisfaction
3.6 6.6 22 38.8 28.9 3.78 1.141
Supervisors feedback about performance
has facilitated employees job satisfaction
1.6 5.3 25 38.8 29.3 3.89 .944
Career growth opportunities stimulate
employees to stay in the current job
0 9.9 11.8 29.3 49 4.17 .988
55
The table also shows that organizational structure enhanced the realization of certain
aspects of job satisfaction as agreed to by 67.7% of the respondents, 22% were neutral,
and 10.2% disagreed (mean=3.78, standard deviation=1.141). Supervisors feedback about
performance had facilitated employees job satisfaction as agreed to by 68.1% of the
respondents, 25% were neutral, and 6.9% disagreed (mean=3.89, standard
deviation=0.944). Career growth opportunities stimulated employees to stay in their
current job as agreed to by 78.3% of the respondents, 11.8% were neutral, and 9.9%
disagreed (mean=4.17, standard deviation=0.988).
4.6.2 Correlations Analysis Between Performance Management and Job Satisfaction
Correlation analysis was conducted to ascertain whether there existed a statistically linear
relationship between performance management factors and job satisfaction. Table 4.17
shows that there existed a statistically linear relationship between performance
management factors and job satisfaction and that goal-setting was a significant factor in
job satisfaction (r=549, p=<0.05), training and development was a significant factor in job
satisfaction (r=504, p=<0.05), and feedback and coaching was a significant factor in job
satisfaction (r=594, p=<0.05).
Table 4.17: Correlations Analysis Between Performance Management Factors and
Job Satisfaction
Job
Satisfaction
Goal
Setting
Training and
Development
Feedback and
Coaching
Job Satisfaction 1
Goal Setting .549**
.000
1
Training and Development .504**
.000
.639**
.000
1
Feedback and Coaching .594**
.000
.653**
.000
.526**
.000
1
** Correlation is significant at the 0.01 level (2-tailed)
56
4.6.3 Linear Regression Analysis
4.6.3.1 Model Summary Between Performance Management Factors and Job
Satisfaction
Linear regression analysis was conducted to ascertain the course of the existing linear
relationship between performance management factors and job satisfaction. Table 4.18
shows the linear regression model summary between performance management factors
and job satisfaction, and it indicates that performance management factors could account
for 41.3% of the variability in the job satisfaction of insurance firm employees in Kenya.
Table 4.18: Model Summary Between Performance Management Factors and Job
Satisfaction
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .647ª .419 .413 .53549
a. Predictors: (Constant), Goal Setting, Training and Development, Feedback and
Coaching
4.6.3.2 Regression ANOVA
The ANOVA was conducted to ascertain the nature of the existing relationship between
performance management factors and job satisfaction. Table 4.19 shows that there existed
a statistically linear relationship between performance management factors and job
satisfaction F (1,300) = 72.063, p<.05).
Table 4.19: Regression ANOVA Between Performance Management Factors and
Job Satisfaction
Model Sum of Squares df Mean Square F Sig.
1 Regression
Residual
Total
61.991
86.024
148.015
3
300
303
20.664
.287
72.063 .000b
a. Predictors: (Constant), Goal Setting, Training and Development, Feedback and
Coaching
b. Dependent Variable: Job Satisfaction
57
4.6.3.3 Regression Coefficients Between Performance Management Factors and Job
Satisfaction
Linear regression coefficients were used to ascertain the course of the existing linear
relationship between performance management factors and job satisfaction Table 4.20
shows that performance management factors could significantly and statistically influence
the job satisfaction of insurance industry employees, in that a unit increase in goal setting
when combined could improve job satisfaction by a mean of 0.235 (23.5%), a unit
increase in training and development when combined could improve job satisfaction by a
mean of 0.227 (22.7%), and a unit increase in feedback and coaching when combined
could improve job satisfaction by a mean of 0.421 (42.1%).
Table 4.20: Regression Coefficients Between Performance Management Factors and
Job Satisfaction
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
B Std. Error Beta
1 (Constant)
Goal Setting
Training and Development
Feedback and Coaching
.632
.235
.227
.421
.247
.084
.070
.066
.184
.189
.375
2.556
2.809
3.250
6.337
.011
.005
.001
.000
a. Dependent Variable: Job Satisfaction
4.7 Chapter Summary
This chapter by use of Figures and Tables has presented the results and findings for the
influence of performance management on job satisfaction among employees in the
insurance industry in Kenya, and it was guided by the questionnaire as it has focused on
the response rate, demographic information, as well as goal setting, training and
development, and feedback and coaching on job satisfaction among employees in the
insurance industry. The discussion, conclusion, and recommendations are presented in the
following chapter.
58
CHAPTER FIVE
5.0 DISCUSSION, CONCLUSION, AND RECOMMENDATIONS
5.1 Introduction
The discussion, conclusion, and recommendations for the influence of performance
management on job satisfaction among employees in the insurance industry in Kenya
have been presented in this chapter. The chapter provides the summary of the study, and
discusses in detail the results for goal setting, training and development, and feedback and
coaching on job satisfaction among employees in the insurance industry. It then provides
the study conclusions, and recommendations obtained from the study results.
5.2 Summary
The general objective of the study was to examine the influence of performance
management on job satisfaction among employees in the insurance industry in Kenya.
The study was guided by the following specific objectives; to determine the influence of
goal setting on job satisfaction among employees in the insurance industry, to examine
the influence of training and development on job satisfaction among employees in the
insurance industry, and to examine the influence of feedback and coaching on job
satisfaction among employees in the insurance industry.
An explanatory research design was adopted in this study. Goal setting, training &
development, feedback & coaching were used as the causal variables. For this study, the
target population was the employees working at the top four insurance firms. A
population of 2554 employees working at the top four insurance firms was used in this
study which included Jubilee, Britam, CIC, and UAP Insurance Companies. This study
relied on stratified sampling. The strata consisted of Jubilee, Britam, CIC, and UAP
Insurance Companies. A sample size of 346 employees from the top four insurance firms
was used in this study. The data for this study was gathered via a questionnaire. Raw data
were analyzed using descriptive and inferential data analysis, which was presented in
tables and figures.
The study showed that goals directed the attention and efforts of employees towards
relevant activities, as well as motivated them in putting more effort into their activities.
Correlation analysis showed that goal setting was significant to job satisfaction.
59
Regression analysis showed that 29.9% of the variability in the job satisfaction of
insurance firm employees in Kenya could be explained by goal setting and that there
existed a statistically linear relationship between goal setting and job satisfaction, where a
unit increase in goal setting could improve job satisfaction by a mean of 0.702 (70.2%).
The study revealed that training and development provided insight into employees’
strengths and weaknesses. Correlation analysis showed that training and development was
a significant factor in job satisfaction. Regression analysis showed that training and
development could account for 25.1% of the variability in the job satisfaction and that
there existed a statistically linear relationship between training and development and job
satisfaction, where a unit increase in training and development could improve job
satisfaction by a mean of 0.603 (60.3%).
The study showed that providing feedback to employees was essential for their job
satisfaction. Correlation analysis revealed that feedback and coaching was a significant
factor in job satisfaction. Regression analysis showed that feedback and coaching could
account for 35.1% of the variability in the job satisfaction of insurance firm employees in
Kenya and that there existed a statistically linear relationship between feedback and
coaching and job satisfaction, where a unit increase in feedback and coaching could
improve job satisfaction by a mean of 0.668 (66.8%).
5.3 Discussion
5.3.1 Influence of Goal Setting on Job Satisfaction among Employees
The study showed that goals directed the attention and efforts of employees towards
relevant activities, motivated employees in putting more effort into their activities,
facilitated employees’ persistence at work and aroused employees to take action using
task-relevant knowledge and strategies. According to Wright (2016) goals influence job
satisfaction in four ways. The first goals do direct the attention and efforts of the
participants towards activities that are relevant to the achievement of the goal. Secondly,
goals do energize an individual in putting in greater effort especially when they are high
than when the goals are low. Thirdly, goals enable persistence at work. Rauch (2015)
states that by allowing participants to control the time spend on a task; a prolonged effort
is put in to attain hard goals. Fourthly, goals create arousal by inducing the participant
into action using task-relevant knowledge and strategies. Goals guide an employee on
60
how much needs to be done and the effort required to be expended to complete the task
ahead.
The study revealed that organizational goals provided employees with specific and clear
plans. The results agree with Rauch (2015) who states that goal setting as a process is
founded on the premise that the individual intends to work towards a goal through work
motivation. The goal-setting process is very important in any organization due to its
significant impact on employee performance-productivity and job satisfaction which are
core among other outcomes and which heavily influence the live success of any
organization. Robertson (2019) affirms that for the process to have a positive impact
emphasis should be given to elements such as ensuring the goals are specific and clear
path in quantitative and qualitative terms and which should be accompanied by concrete
actions, plans, etc.
The study showed that employees in the firm were involved in the decision-making
process. These results are supported by Wright (2016) who states that, besides, the
employees should be allowed to participate in goal setting and decision-making to ensure
the goals are owned and accepted by them instead of being imposed on them. In front of
employee job satisfaction according to Perera (2019) there is strong evidence that
encourages the culture of employee involvement are more effective and perform highly.
Therefore, the involvement of employees in decision-making is more likely to result in
higher employee performance and make the organization achieve its objectives.
The study showed that goals in the firm had enhanced job challenges for the employees.
The result is in agreement with Rauch (2015) who opines that there is a relationship
between goal-setting and feedback that are important to each other. Goals enhance job
challenges and facilitate goal congruence for the organization. Goals clarify the roles of a
person and improve the employees' understanding of their roles to another employee's
role. This is supported by Wright (2016) who found that when employees understand the
objectives of the organization and their position in ensuring that they are achieved is
made possible through goal clarification, there is the elimination of ambiguity and this
improves the job experience.
61
The study revealed that employees in the firm had the intention of increasing their effort
toward goal attainment. The study result is in tandem with Locke and Latham (2017) who
defined goal commitment as the intention of increasing effort toward goal attainment and
continue to pursue that goal over time until it is achieved, and suggested that the degree to
which goal attainment is perceived can lead to the prediction of the level of commitment
that will go to it. This is consistent with Oklham's (2015) finding of the relationship
between goal attainment and goal commitment that is positive and reinforces this
position.
The study revealed that high-set goals within the firm facilitated employees’ commitment
to attaining them. The study result correlates with those of Cooper and Monahan (2016)
who found that there is a positive relationship between goal commitment and
performance for individuals with high goal commitment compared to those with low goal
commitment. According to Locke and Latham (2017), a higher goal positively affects
goal commitment because of the high awareness level that is elevated to attain the goal,
and when an individual is given a goal, the subjects' commitment comes from the plan
that is developed to achieve the goal through which performance is increased.
The study revealed that work setting had a high influence on the achievement of
organizational goals. The results are supported by Morrison (2017) who states that goal
commitment is higher when individuals fully understand their goals, feel pressure from
peers to perform well, perceive that they can attain their goals, and believe that they will
be recognized for their accomplishments. Liao (2016) established a system of goals in
their study to enable managers to manage themselves and others. They emphasized that
managers must know how to perform a multitude of functions to produce desired goals
effectively.
5.3.2 Influence of Training and Development on Job Satisfaction among Employees
The study showed that training and development provided insight into employees’
strengths and weaknesses. The results are in agreement with Bulut and Culha (2010) who
observed that training and development provide a galaxy of benefits to both the employer
and employees. More significantly, training and development also provide insight into
employee strengths and weaknesses. As pointed out by Agha and Onyeizugbe (2015) the
62
success of any organization would depend on the quality of its personnel and it is
significant to have an effective performance management system that can identify
employee-training needs.
The study exposed that training had increased employees’ level of job satisfaction.
According to Shaheen, Naqvi and Khan (2016) training services are one of the most
important internal factors affecting job satisfaction. Training activities stem from job
satisfaction that enhances job involvement and organizational commitment of trained
employees. As indicated by Noe (2016) training is seen as a key method of eliminating
artificial barriers to individual development and capabilities and when workers receive
self-development training, the level of their job satisfaction is higher.
The study revealed that training in the firm was aimed at equipping employees with the
necessary skills they need to serve. The result is in agreement with Lawler (2016) who
explains that for the training to be effective a structured approach should be put in place.
The training needs of the employee should be established followed by assessing the
objectives of the training. According to Ackah and Agboyi (2016), training should be
aimed at equipping the trainee with the necessary skills that serve the organization in
achieving its objectives. The training should serve the needs of the training needs
established beforehand.
The study showed that a firm’s training programs had facilitated its ability to gain a
competitive advantage over its counterparts. The results are in agreement with Bulut and
Culha (2010) who observed that consistently, empirically well-supported theoretical
framework explains that organizations investing in training programs can gain a
competitive advantage compared to their counterparts with no training services.
According to Collins (2015), in the management of good to great, improvements in both
leadership development and retention rates are essential in getting the right people on the
on the organization, which is a consistent precursor to improvements in gaining a
competitive advantage in the marketplace.
The study revealed that the organizations customized their activities to the ability level of
the employees being trained. The result is supported by Batool (2016) who explains that
employers should not take training programs for granted. They should ensure that the
63
people who conduct the training understand the difference between demonstrating a skill
and teaching that skill to someone learning it for the first time. He further added that
organizations should customize their activities to the ability level of the employee being
trained.
The study showed that employees in the firm were more satisfied with a formal training
program. This study result agrees with Buckley and Caple (2015) who argue that
organizations with a formal training program are more satisfied with their technology use
compared to those without any formal training program. The training courses that are
offered by organizations must be designed by considering the present and future needs of
the employees and facilitate the learning of these skills. Noe (2016) affirms that good
training or coaching should enable an organization to be in a position of improving the
quality and quality of a company's production, increase the likelihood of organizational
success, and reduce the expenditures and expenses of the business.
The study showed that the firms used specific on-the-job training to increase employees’
productivity. This study result is in tandem with Argote (2016) who states that
organizational training is about tacit knowledge and skills acquired through intra-
organization intended efforts. Organizational training has specific on-the-job training
activities (e.g. training on fast assembling the computer components or creating a new
software which is to be used for new product development) that increases the employee
productivity and output only at the company providing it. Bulut and Culha (2010) indicate
that the term training should be widely recognized and labelled as vocational, on-the-job,
or professional training.
The study revealed that the success of the organization’s development activities was
dependent on the degree that employees are personally involved. This is supported by
Alvarez et al., (2015) who affirm that development opportunities are beneficial only if the
individual takes advantage of them. The organization can and should provide support and
encouragement, but development activities appear to be successful only when people
become personally invested in them. Ackah and Agboyi (2016) affirm that a clear
knowledge and acceptance of joint objectives by both the individual and the organization
should be the foundation of any growth activity in an organization.
64
The study exposed that the firms used career development to meet the organizational and
individual needs of the firm. This result agrees with Kroth (2015) who argues that the
primary purpose of career development is to meet both organizational and individual
needs at work. According to Hall (2016) career development can achieve competitive
advantages because of a better qualified and more highly motivated team and can utilize
advanced technology because of the effectively trained employees, and that the primary
purpose of career development is to meet the current and future needs of the individual at
work. It further involves career management and career planning.
The study showed that the firm employees had a sense of personal growth due to the
learning opportunities they had. This is in agreement with Dessler et al., (2014) who
indicated that career development includes job rotation, mentoring, coaching,
spontaneous meetings between managers and employees to discuss employee's career
goals and development. According to Osbourne (2015) when employees have the
opportunity to learn, new and additional career development they will feel a sense of
personal growth which increases job satisfaction.
5.3.3 Influence of Feedback and Coaching on Job Satisfaction among Employees
The study showed that the firms used coaching to bring out the best in their employees.
This result agrees with Thorpe and Clifford (2015) assert that coaching has been
identified as the most essential role to be performed by human resource development
experts among their different roles in organizations. According to Kim (2012), coaching
helps leaders to bring out the best in employees throughout the organization and they
begin to embrace and engage in critical thinking. London (2015) indicate that improving
employee job satisfaction without constant feedback, an employee is uncertain as to how
he or she is doing.
The study disclosed that the employees received instant feedback about their performance
in the firm. These study results are in agreement with Richard (2015) who states that
coaching is concerned with creating conditions so that people can perform to the best of
their ability. According to Foltos (2013) in coaching the learner receives instant feedback
about their performance, this reinforces success and helps them to quickly correct any
mistakes. Coaching, therefore, accelerates the performance improvement processes.
65
The study revealed that the firms allowed the employees to identify key goals that they
want to meet within a set period. The results are in tandem with Whitmore (2016) whose
study in coaching for performance identifies the need to adopt the GROW model, where
the first stage, the skilled coach invites the employee to identify what he sees as the key
goals for the planning period, for instance, six months. According to Collins (2015) the
goals should be selected within the broad context of the organization and departmental
goals and should be framed to reflect what the employee feels will be possible to deliver.
The goals may initially be expressed as results.
The study identified that the firms raised the employees’ self-awareness of all the factors
underlying their performance against their goal. According to Robinson (2016) the second
stage is to raise the employee's self-awareness of all the factors underlying and
surrounding present performance against the goal. The employee will rate themselves
with the goals and determine whether the set goals are realistic. This will trigger the
employee to realize the factors that have been preventing progress. With the goal and
reality understood by the employee, the coach helps the employee determine what they
can do.
The study showed that firm supervisors coached their subordinates based on the one-on-
one relationship program. The results agree with Beattie et al., (2014) who classified
managerial coaching practices into four types according to the nature of the coaching
relationship: hierarchical, peer, team, and cross-organizational coaching. Hierarchical
coaching involves supervisors coaching their subordinates in one-on-one relationships,
which is the most well-known and researched type of managerial coaching. Foltos (2013)
affirms that peer coaching is a type of interaction through which participants learn from
each other in reciprocal relationships.
The study revealed that managerial coaching had resulted in positive performance among
employees. The results are supported by various authors i.e. Dahling et al., (2015) study
showed that managers’ coaching skills were positively associated with the annual goal
attainment of their direct sales representatives. Huang and Hsieh’s (2015) study showed
that managerial coaching has positive effects on employees’ performance and proactive
career behaviour. Kim (2014) investigated the effects of a mediating mechanism on the
66
relationship between managerial coaching and employee outcomes, and the study showed
that managerial coaching indirectly influenced job satisfaction through role clarity,
organizational commitment through job satisfaction, and job performance through role
clarity.
The study revealed that feedback was used in the firms to provide employees with
knowledge about their performance. The results are in tandem with Clark (2018) who
states that feedback provides participants with knowledge about their performance. For
goals to be effective, people need summary feedback that reveals progress with their
goals. If they don't know how they are doing, it is difficult or impossible for them to
adjust the level or direction of their effort or to adjust their performance strategies to
match what the goal requires.
The study showed that the firms used a performance evaluation system to determine the
performance of their employees, and the firms’ performance feedback system had yielded
effective results in solving organizational problems. The results are supported by Clark
(2018) who affirms that performance evaluation systems, in organizations, are essential in
enabling institutions to achieve progress. Organizations that have been able to attain their
goals are as a result undertaking performance evaluation regularly. In addition, Steelman
and Williams (2020) found that feedback plays a fundamental role in enabling
organization leadership or management to understand their employees towards their job
through the feedback and reports that they receive from their employees thereby
establishing policies and incentives that are geared towards enhancing the employee
morale thus resulting to job satisfaction.
The study showed that providing feedback to employees was essential for their job
satisfaction. This result agrees with DeCenzo and Robbins (2015) who state that
providing feedback to employees is believed to be essential for maintaining and
increasing employee motivation and satisfaction. According to Fletcher (2016)
performance appraisal review is no panacea for employee motivation and satisfaction.
Recently, calls have been made for putting more emphasis on the development of an
67
organizational culture that is supportive of feedback processes to increase motivation and
satisfaction.
5.3.4 Employees’ Job Satisfaction
The study showed that salary increments and bonuses had facilitated employees’ job
satisfaction. According to Karandish and Ali (2015) monetary rewards refer to money-
based incentives given to employees whenever they achieve or meet their expectations.
This includes an incentive that increases the compensation of an employee, such as paid
holidays, salaries increment, paid internships, and bonuses. Narsee (2012) affirms that
rewarding employees with money after performing their duties excellently strengthens
their workers is important. Employees will not perform best unless they are motivated to
work their level best.
The study revealed that rewards had eliminated dissatisfaction among the workers’ hence
increasing job satisfaction. This result is supported by Karandish and Ali (2015) who
observed that nowadays human power has been educated about their rights and duties
where they understand the rights to acquire rewards for the work, they do rewards are
concerned with the elimination of dissatisfaction and increasing the workers’
performances. Aktar, Sachu and Ali (2016) explain that financial rewards can either be
direct financial or be indirect financial.
The study showed that conducive working conditions had influenced employees’ job
satisfaction. The findings are consistent with those of Alamdar et al., (2016), who
investigated the impact of job satisfaction on employee performance in autonomous
Medical Institutions in Pakistan. Their findings revealed that factors such as promotion,
working conditions job security, job independence, positive co-worker and supervisors as
well as the nature of work all have an impact on job satisfaction and employee
performance.
The study showed that job safety and security had influenced employees’ job satisfaction.
The findings support Fisher's (2015) assertion that employees freely commit their time to
these valuable jobs, which is a key source of organizational success. Non-monetary
incentives also lead to an increase in job safety. Insecurity among workers arises as a
68
result of the eradication of dissatisfaction. Alamdar’s et al., (2016) also revealed that
factors such as promotion, working conditions job security, job independence, positive
co-worker and supervisors as well as the nature of work all have an impact on job
satisfaction and employee performance.
The study revealed that acknowledgements had increased job satisfaction among
employees. Fisher (2015) who supports the findings, defines non-financial benefits as
compensation offered to employees that do not involve cash. Even in the absence of
monetary rewards, employee recognition and self-esteem have the potential to motivate
performance. Employers' acknowledgements, recognition, and appreciation for teams or
individual employees are the most common non-monetary benefits. The structure,
magnitude, scope, and formality of these awards differ greatly. Abdus (2015) indicates
that development is of great importance to individual employees by helping them make
better decisions for effective problem solving, assist in supporting employees to achieve
self-development and self-confidence, helping an employee deal with stress, tension,
frustration, and conflict, increasing job contentment and acknowledgement thus
progressively moving the person towards personal goal realization while improving
interaction skills.
The study showed that recognition within the firm had increased job satisfaction among
employees. The result is in tandem with Rahdert (2018) who points out the benefit of
career development. Employees may experience a sense of satisfaction in the
achievement of personal goals and professional recognition if their talents or knowledge
improve. Robinson and Pillermer (2017) emphasize that a performance-based job
description is a valuable approach because job description reflects employee performance
expectations. An employee appreciation policy can help to retain good workers while
motivating underperformers to improve in light of the changing business environment.
The study exposed that the firms used a performance evaluation system to determine the
performance of their employees. These results are in agreement with Carbery (2018) who
suggests that human resource policies concerning stimulating performance evaluation
mechanisms, performance-based reward mechanisms, and career growth and promotion
69
opportunities affect worker’s decisions of either staying or leaving a job. Employees
always look for career growth opportunities to stimulate them to stay in their current job.
The study revealed that the firms’ performance feedback system had yielded effective
results in solving organizational problems. The result disagrees with Choi et al., (2018)
who illustrated some of the problems associated with performance appraisal. Employees
noted that feedback in performance appraisal was problematic for improving employee
motivation and performance, and as communication, a tool to improve the
manager/subordinate relationship.
The study showed that providing feedback to employees was essential for their job
satisfaction. The results agree with DeCenzo and Robbins (2015) who state that providing
feedback to employees is believed to be essential for maintaining and increasing
employee motivation and satisfaction. Tziner and Rabenu (2018) state that traditionally,
the formal performance appraisal review has been considered as the ideal platform for
supervisors to provide feedback to employees about how they view employee
performance.
5.4 Conclusion
5.4.1 Influence of Goal Setting on Job Satisfaction among Employees
The study concludes that goals within the insurance firms directed the attention and
efforts of employees towards relevant activities, motivated employees in putting more
effort into their activities, facilitated employees’ persistence at work, enhanced job
challenges for the employees, and aroused employees to take action using task-relevant
knowledge and strategies. The organizational goals provided employees with specific and
clear plans, and employees in the firm were involved in the decision-making process, and
also had the intention of increasing their effort toward goal attainment. High-set goals
within the firm facilitated employees’ commitment to attaining them, and the work setting
had a high influence on the achievement of organizational goals.
70
5.4.2 Influence of Training and Development on Job Satisfaction among Employees
The study concludes that training and development within the firms provided insight into
employees’ strengths and weaknesses, increased employees’ level of job satisfaction and
was aimed at equipping employees with the necessary skills they need to serve. The
firm’s training programs had facilitated its ability to gain a competitive advantage over its
counterparts and the firm customized its activities to the ability level of the employees
being trained. Employees in the firm were more satisfied with a formal training program
since the firm used specific on-the-job training to increase their productivity. The success
of the organization’s development activities was dependent on the degree that employees
were personally involved, and thus, career development was used to meet the needs of the
firm as well as those of the employees. The firm employees had a sense of personal
growth due to the learning opportunities they had.
5.4.3 Influence of Feedback and Coaching on Job Satisfaction among Employees
The study concludes that the firms used coaching to bring out the best in their employees
who received instant feedback about their performance within the firm. The firms allowed
the employees to identify key goals that they wanted to meet within a set period, raised
their self-awareness of all the factors underlying their performance against their goal, and
were coached by supervisors coached based on the one-on-one relationship programs.
Managerial coaching had resulted in positive performance among employees, where
feedback was used to provide employees with knowledge about their performance, and
performance evaluation systems were used to determine staff performance. The firms’
performance feedback systems had yielded effective results in solving organizational
problems and providing feedback to employees, which was essential for their job
satisfaction.
5.4.4 Employees’ Job Satisfaction
The study concludes that salary increments and bonuses had increased employees’ job
satisfaction, and rewards had eliminated dissatisfaction among the workers. Conducive
working conditions, job safety and security, acknowledgement, and recognition within the
firms had increased employees’ job satisfaction. The firms used performance evaluation
71
systems to determine the performance of their employees, while performance feedback
systems had yielded effective results in solving organizational problems through the
provision of feedback to employees that was essential for their job satisfaction.
5.5 Recommendations
5.5.1 Recommendations for Improvement
5.5.1.1 Influence of Goal Setting on Job Satisfaction among Employees
The study recommends the managers of insurance firms in Kenya ensure that firm goals
are specific and can be measured quantitatively or qualitatively. By providing employees
with concrete actions, plans, and allowing them to participate in decision-making while
engaging in goal setting plans.
5.5.1.2 Influence of Training and Development on Job Satisfaction among
Employees
The study recommends the managers of insurance firms in Kenya ensure that their
training and development program is structured. It should capture employees’ needs to be
able to equip the trainees with the required and necessary skills as well as acquaint them
with any new technological advancement that is within the organization.
5.5.1.3 Influence of Feedback and Coaching on Job Satisfaction among Employees
The study recommends the managers of insurance firms in Kenya make use of continuous
and progressive coaching skills that would provide the firms with a structure that may
unlock the employees’ true potential, and increase their motivation and confidence that
may lead to both short- and long-term firm benefits.
5.5.1.4 Employees’ Job Satisfaction
The study recommends that the insurance firm managers should avail more time to their
employees, increase their knowledge of actual performance, communicate their
performance expectations clearly, and provide more ongoing feedback by increasing two-
way communication.
72
5.5.2 Recommendations for Further Studies
This study specifically discussed the influence of performance management on employee
job satisfaction in the insurance industry in Kenya. Therefore, the scope of the study was
insurance firms in Kenya. The study focused on employees from Jubilee, Britam, CIC,
and UAP Insurance Companies thereby being the main target of the study. Thus, there is
a need for a similar study to be conducted on other insurance firms that are not
mainstream, as well as other industries.
73
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APPENDICES
APPENDIX I: INTRODUCTION LETTER
Bonaventure Nabongo Makokha,
United States International University – Africa
P.O Box 14634-00800
Nairobi, Kenya
Dear Sir/Madam
RE: Request for Participation in a Research Project
I am a graduate student at the United States International University’s Africa - Chandaria
School of Business pursuing a Masters of Business Administration (MBA) with a
concentration in strategic management. As partial fulfilment of the requirement for the
degree, I am carrying out a research project on “Influence of performance management on
job satisfaction among employees in the insurance industry in Kenya. I would appreciate
it if you could kindly complete the attached questionnaire which will be instrumental in
collecting the data relevant to my study Please note that any information you give will be
treated with confidentiality and at no instance will it be used for any other purpose other
than for this project
Thank you in advance for your involvement and kind cooperation.
Yours Faithfully,
Bonaventure Nabongo Makokha,
MBA Student-Researcher
United States International University-Africa
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APPENDIX II: QUESTIONNAIRE
This questionnaire has been formulated to examine the influence of performance
management on job satisfaction among employees in the insurance industry in Kenya.
The study focuses on the influence of goal setting, training, and development, as well as
feedback and coaching on job satisfaction among employees in the insurance industry in
Kenya. Please keep in mind that the information provided will only be used for academic
purposes.
Section A: Demographic Information
1. Please indicate your gender.
Male [ ]
Female [ ]
2. Kindly indicate the highest level of education you have attained.
Diploma [ ]
University Degree [ ]
Master’s Degree [ ]
Doctorate/ PhD [ ]
Other [ ] Specify ________________________________
3. Please indicate the number of years you have worked for the company.
1-5 Years [ ]
6-10 Years [ ]
11-15 Years [ ]
16-20 Years [ ]
21 Years and Above [ ]
4. Please indicate your position in the company.
Management [ ]
Supervisory [ ]
Officers [ ]
88
Section B: Influence of Goal Setting on Job Satisfaction among Employees
5. Goal setting is known as the preparation of an action plan to encourage and steer a
person or group. The purpose of goal setting is to show employees what they need to
focus on the most during the upcoming quarter, which then helps them to be able to
prioritize their tasks. Please indicate how goal setting has influenced employees' job
satisfaction in the insurance industry in Kenya using the scale SD-Strongly Disagree,
D-Disagree, N-Neutral, A-Agree, and SA-Strongly Agree.
No: SD D N A SA
1 Goals direct the attention and efforts of employees
towards relevant activities
2 Goals motivate employees in putting more effort into their
activities
3 Goals facilitate employees; persistence at work
4 Goals arouse employees to take action using task-relevant
knowledge and strategies
5 The organizational goals provide employees with specific
and clear plans
6 Employees in the firm are involved in the decision-making
process
7 Goals in the firm have enhanced job challenges for the
employees
8 Employees in the firm have the intention of increasing
their effort toward goal attainment
9 High-set goals within the firm facilitate employees’
commitment to attaining them
10 Work setting has a high influence on the achievement of
organizational goals
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Section C: Influence of Training and Development on Job Satisfaction among
Employees
6. Training and Development is one of the main functions of the human resource
management department. Training presents a prime opportunity to expand the
knowledge base of all employees. The process of development is concerns insights,
attitudes, adaptability, leadership, and human relations. Please indicate how training
and development have influenced employees' job satisfaction in the insurance industry
in Kenya using the scale SD-Strongly Disagree, D-Disagree, N-Neutral, A-Agree, and
SA-Strongly Agree.
No: SD D N A SA
1 Training and development provide insight into employees’
strengths and weaknesses
2 Training has increased employees’ level of job satisfaction
3 Training in the firm is aimed at equipping employees with
the necessary skills they need to serve
4 The firm’s training programs have facilitated its ability to
gain a competitive advantage over its counterparts
5 The organization customizes its activities to the ability
level of the employees being trained
6 Employees in the firm are more satisfied with a formal
training program
7 The firm uses specific on-the-job training to increase
employees’ productivity
8 The success of the organization’s development activities
are dependent on the degree that employees are personally
involved
9 The firm uses career development to meet the
organizational and individual needs of the firm
10 The firm employees have a sense of personal growth due
to the learning opportunities they have
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Section D: Influence of Feedback and Coaching on Job Satisfaction among
Employees
7. Delivering and receiving coaching and feedback are skills critical to each part of the
performance management process for both the manager and the employee. Coaching
uses the feedback process to direct and redirect work efforts and behaviour. Please
indicate how feedback and coaching have influenced employees' job satisfaction in
the insurance industry in Kenya using the scale SD-Strongly Disagree, D-Disagree,
N-Neutral, A-Agree, and SA-Strongly Agree.
No: SD D N A SA
1 The firm uses coaching to bring out the best in its
employees
2 Employees receive instant feedback about their
performance in the firm
3 The firm allows the employees to identify key goals that
they want to meet within a set period
4 The firm raises the employees’ self-awareness of all the
factors underlying their performance against their goal
5 The firm supervisors coaching their subordinates based on
the one-on-one relationship program
6 Managerial coaching has resulted in positive performance
among employees
7 Feedback is used in the firm to provide employees with
knowledge about their performance
8 The firm uses a performance evaluation system to
determine the performance of its employees
9 The firm’s performance feedback system has yielded
effective results in solving organizational problems
10 Providing feedback to employees is essential for their job
satisfaction
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Section E: Employees’ Job Satisfaction
8. Job satisfaction refers to how motivated, content, and satisfied an employee is with
his or her work. The causes for job satisfaction are numerous and can be different for
every employee, his/her job, and the industry he/she works. Job satisfaction increases
productivity and initiates progress. Please score the following assertions concerning
employee job satisfaction in Kenya's insurance industry using the scale SD-Strongly
Disagree, D-Disagree, N-Neutral, A-Agree, and SA-Strongly Agree.
No: SD D N A SA
1 Salaries increments have increased employees’ job
satisfaction
2 The provision of bonuses has facilitated employees’ job
satisfaction
3 Rewards have eliminated dissatisfaction among the
workers’ hence increasing job satisfaction
4 Conducive working conditions have influenced
employees’ job satisfaction
5 Job safety and security has influenced employees’ job
satisfaction
6 Acknowledgements have increased job satisfaction among
employees
7 Recognition within the firm have increased job satisfaction
among employees
8 Organizational structure enhances the realization of certain
aspects of job satisfaction
9 Supervisors feedback about performance has facilitated
employees job satisfaction
10 Career growth opportunities stimulate employees to stay in
the current job
THANK YOU
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APPENDIX III: IRB RESEARCH PERMIT
93
APPENDIX IV: NACOSTI PERMIT