eployee perfomance

8/4/2019 eployee perfomance

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CHAPTER ONE.

1.0 INTODUCTION

1.1 Background of the study.Also referred to as merry-go rounds, revolving groups are a form of friendship groups formed for the purposes of supporting the members financially. In revolving

groups, members contribute cash or equivalents after a specified period. Each member benefits once in a cycle that goes round until all members have benefited.They are mostly dominant among the lower level employees. Friends with the intention of supporting each other financially therefore form them.

Schein (1965) defines a group as any number of people who interact with and, arepsychologically aware of one another hence they perceive themselves as a group.According to him these three conditions need to be fulfilled if a group is to be distinguished from a random collection of people.Schein (Ibid) also argues that groups share some common aim or purpose. On his part Cole (2002) defines an informal group as an association established by the employees themselves for their own purpose rather than to fulfill organization en

ds. He also refers to informal groups as unofficial associations.

According to Bennet (1997), informal groups are formed without the management support. People who feel they possess a common interest establish them.Informal groups are incidentally present in any organization and can exist without the management support. These include work place cliques and networks of people who regularly get together to exchange information. Members energize themselves and develop a sense of affinity to each other with a common cause. More oftenit is an informal group that actually determines how much work is done. It arises through social interaction between people and tends to be small. It is humanistic and adds life into the body of members.

Kathryn & Martin (1994) observed that employees rather than the organization establish an informal group in order to serve members interests or social needs. Sometimes the aim of the informal groups that spring up in the organization will correspond to its management, which should recognize the importance of informal groups for organizational efficiency and their potential for disrupting organizational plans. There are generally two types of informal groups, for instance, interest and friendship groups. Interest groups are created to facilitate employeespursuit of common concern whereas friendship groups; evolve primarily around meeting employees social needs.

Salemi & Bogonko (1997) refers to informal groups as a relationship between people in an organization based not on procedures and regulations but on personal at

titudes, prejudices, likes and dislikes, its spontaneous network of relationships based upon personal needs, attitudes and emotions.Deacon (1998) argues that an informal group is a group that emerges as an effortof an individual to satisfy personal needs not met by the organization such assupport, friendship, growth and recreation. Informal group is based on common interest and mutual attraction.

Sagimo (2002) argues that a common bond of friendship, social status, religion,educational background and ethnic origin among others usually ties informal groups. They have spontaneous human relations and so they are strongly tied.Armstrong (2003) defines informal group as a setup of people in an organizationwho have some affinity for one another. For example, formal groups satisfy the n

eeds of the organization while informal groups satisfy the needs of their members. Informal groups are unstructured form of organization. It sets its own rules,regulations, and code of conduct to govern it. In the formal group, the rules a


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nd code of conduct are set by the organization without consulting employees. Informal group has its mission and vision that they want to accomplish for examplemerry go round, which is just a vehicle to warrant members to continue with thegroup by contributing towards it either monthly or weekly. What bounds the formal groups together is different from what binds the members of informal groups together. Its tasks, goals and values are mainly psychosocial centering on individual and group satisfaction, affiliation and co-friendship.

1.2 Problem statementAccording to Bennet (1997), an informal group actually determines how much workis done. Such possibilities pose serious challenges to an organization to the extent that they may fail to meet their set objectives because of factions operating in the organization.

This research study intends to establish how workplace-revolving groups affect employee productivity in Equity Bank. Revolving groups also referred to as merry-go-round groups are a common occurrence in the Organisation. They are predominant mainly among the lower cadre employees also referred to as operatives. The rev

olving groups are formed by close knit friends who meet frequently to deliberateand make contributions.

The operations of the groups therefore sometime coincide with the working hours.There are several occasions when officers leave their work schedules to attendto matters pertaining to the welfare of these groups at the expense of their official duties. It is for this reason that the researcher intends to establish theimpact of informal workplace groups on employee productivity in the Bank and the challenges they pose to the overall performance of the Organisation.

1.3 Objectives of the Study

1.3.1 General objectiveThe general objective of the study was to find out the impact of workplace revolving groups on employee productivity.

1.3.2 Specific objectivesThe specific objectives were:

a) To find out if remuneration gives rise to the need of workplace revolving groups

b) To determine the growth of employee productivityc) To analyze the effect of motivation on the formation of workplac

e of evolving groupsd) To establish the need of security in workplace revolving groups.

1.4 Research QuestionsThe study was guided by the following research questions:1. How does pay package of employees influence the formation of workplace revolving groups?2. What are the factors that lead to the formation of workplace revolving groups in the Bank?3. Are there indicators of employee productivity in the Ministry?4. Is there an effect of workplace revolving groups on employee productivity?

1.5 Scope of the StudyThe study revolves around the impact of workplace revolving groups on employee p

roductivity. It will be conducted among the lower cadre members of staff within, Job Groups 3 to 7 levels in Equity Bank Headquarters offices at Upperhill, in Nairobi.


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1.6 Significance of the StudyThe findings of this study will be of importance to several stakeholders, namely:

1.6.1 ManagementThe study identified several factors that influence the formation and sustenance

of workplace revolving groups. It also established how the workplace revolvinggroups affect employee productivity. This information is very necessary for managers of the Bank so that they can learn how to harness the power of informal groups in enhancing productivity.1.6.2 EmployeesThe findings of this study are also be important to the employees of the Ministry of Planning National Development and vision 2030 some of whom are also membersof the workplace revolving groups to realize that these groups create forums for constructive motivation that should benefit the organization and not fight it.1.6.3 Other Researchers / Scholars

To other scholars and researchers, the findings of this study provide ready scientific evidence as well as source of factual data for those intending to study in this area.

1.7 Limitations of the StudyThe researcher encountered the following limitations in the course of this study:

1.7.1 Some respondents did not return the questionnaires given out to them for completion.

1.7.2 Some respondents were reluctant to divulge information for fear of victimization.1.7.3 Limited time to comprehensively conduct the study since the researcher apart from attending class must also attend to his other personal duties.

1.8 Assumptions

1.8.1 Revolving groups are formed by lower cadre employees to support each othersocially as well as financially.1.8.2 Pay package has direct link with the formation of work place revolving groups.1.8.3 Workplace revolving groups have both positive and negative influence on employee productivity.1.8.4 The management can guide the groups to become productive and beneficial to both the individual members and to the organization.

1.9 Conceptual FrameworkDiagrammatic presentation:

Security

Remuneration

MotivationProductivity


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Growth

Source: author, 2011

1.9.1 Pay packageThe pay package that employees draw determines whom they associate with. Therefore, ones pay package has direct influence on the formation of workplace revolving

groups.

1.9.2 Key components of workplace revolving groupsThe key features of workplace revolving groups are likely to reveal the relationship that the groups have with the individual employees productivity in the organization.

1.9.3 Indicators of employees productivityDetermining the indicators of employee productivity among members of staff is necessary because it enables the leadership to realize the kind behaviour to nurture among the employees and what set of behaviour to eradicate depending on how e

ach one of them influences productivity.

1.9.4 Workplace revolving groups and employee productivity.Employee productivity refers to the positive outcome and or results of an activity or assignment undertaken by a person or a group of people. This study soughtto establish the relationship between workplace revolving groups and employee productivity.


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1.10 Definition of operational terms

The following operational terms of the study have been used in the study and have their meaning as described below:

Employee: Refers to a person employed by an organization to serve its interests.Indicators of productivity: A set of factors or behaviour that reveal the levelof output

on the organization.Influence: Refers to the relationship between two variables. Also referred to asimpact or effect.Management: A team of managers or an institutional social process consisting ofplanning, control, coordination and motivation measures towards of achievement of goals.Morale: The confidence and enthusiasm that employees exhibit when carrying out -their duties in the organization.Motivation: The drive behind employees desire to achieve, to perform beyond targets.Productivity: The quality and efficiency of the output of employees when servingthe organization.Leadership: A process by which an individual (the leader) influences the othe

rs to contribute voluntarily to the achievement of group tasks in a given situation.Communication: The process of creating, transmitting and interpreting ideas, facts, opinions and feelings with meaning to the recipients.Pay package: refers to wholesome remuneration to an employee.

Workplace revolving groups: An association of employees who come together in theorganization with the aim of helping each other both socially and financially.They are also referred to us merry-go-round groups.


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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 IntroductionThis chapter is a documentation of a comprehensive consideration of the published and unpublished literary work from secondary sources on area of research. Vari

ous researchers as well as authors work are reviewed in this regard. The researcher is mainly concentrating on the available books and research material from different sources including the internet. In this chapter, the researcher has presented the following:The review of past studies, the critical review and Conclusion of the chapter.

2.2 Review of Past Studies

2.2.1 History of Related Studies on Informal GroupsGerald (2001) defines a group as a collection of three or more individuals who interact about some common problems or interdependent goal and can exert mutual i

nfluence over one another.Brooks (1999) defines an informal group as a collection of people who become a group when members develop certain independencies, influence one anothers behaviour and contribute to mutual need satisfaction. According to Brooks, there exist anumber of informal groups such as revolving groups, the office quiz groups, Friday evening drinking and Friday overnight prayers groups and the lets mourn aboutthe organization people.Saleemi and Bogonko (1997) defined informal groups as the relationship between people and an organization which board not on procedures and regulations but on personal attitudes, prejudices, likes and dislikes.

Nzuve (1999) on his part simply defined informal work groups as an alliance thatis neither structured nor organizationally determined. Meaning they are self generated, regulated, and as Saleemi and Bogonko pointed out based on personal attitudes, prejudices, likes and dislikes.

Sogimo (2000) argues that common bonds of relationships, social status, religion, educational background and ethnic origin among others usually tie informal groups. They have spontaneous human relations and so there are strong ties and cohesiveness among members. According to Mullin (2005), informal groups are very important in an organization because they are based more on personal relationshipsand agreement of groups members.

People with high affinity for each, belief, and pursuit of a common purpose forminformal groups by nature voluntarily. This therefore means that the purpose bringing these people together is more motivating than the official duties assigned to them by the management. In light of this, the management could help by nurturing an environment that allows sustenance for these groups to help boost theirmorale, which in turn helps boost the overall productivity of the employees.

Cowling and James (2002) points out that motivating staff has always been one ofthe biggest challenges facing employers. This is especially so today when the winning formula is performance through people. An employees drive to work consistof all the drives, forces and influences, conscious and unconscious that cause t

he employee to want to achieve certain aims. Managers need to know about factorsthat create motivation in order to be able induce employees to work harder, faster, more efficiently motivated by human need to earn a living and partly by hum


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an need for job satisfaction, security of tenure, the respect of colleagues andso on - Graham and Bennet 1998.Heller (1998) points out that todays increasing competitive business world meansa highly motivated work force is vital for any organization seeking to achieve good results. Therefore, learning how to motivate others has become an essentialskill for managers. Motivating people shows you how best to put motivational the

ories into practice to create and sustain a positive environment in the work place. He commends that for an employee, the chief advantage of being motivated isjob satisfaction; for an employer, it means good quality work.Armstrong (2006) states that organizations function by means of collective action of people, yet each individual is capable of taking independent action which may not be in line with policy or instructions or may not be reported properly toother people who ought to know it. Effective communication is required to achieve coordinated results. Good two-way communication is required so that management can keep employees informed of the policies and plans affecting them, an employee can react promptly with their views about values, plans, intentions and proposals with the opportunities for discussion with and feedback results.

There is always need every organization to have its communication channels openupwards, downwards and laterally. This allows free flow of information, which cuts down rumors, apprehension over unnecessary concerns. In most cases if some misconceptions are not cleared in good time they cause unnecessary tension, whichmay lead to a go-slow mostly, spearheaded by the informal groups. This of courseaffects employee productivity negatively.

Armstrong (Ibid) not communicating at all conveys a powerful message that the last committed manager wants, you can never communicate too much, but take care ofthe content and delivery of message so that it inspires motivation upon reception. The system of communication by managers will encourage exchange of information and views between team members, allow managers and staff to work together cre

atively, problems can be discussed and decisions recede quickly - Heller (1998).Koontz and Weihrich (2003) indicated that over the years, many authors have recognized the importance of communication in organized effort. Communication is viewed as the means by which people are linked together in the organization to achieve a common purpose. This is still the fundamental function of communication. Indeed group activity is impossible without communication, because coordination and change cannot be effected. The purpose of communication in an enterprise is to effect change, to influence action towards the welfare of the enterprise. Communication is essential for internal functioning of the organization because it integrates the managerial functions.

Koontz and Weihrich (Ibid), communication is needed to establish and disseminategoals of an enterprise, develop plans for their achievement, organize human andother resources in the most effective and efficient way, select, develop and appraise members of the organization, lead, direct and motivate and create a climate in which people want to contribute and control performance.

According to Armstrong (2006) all organization are concerned with what should bedone to achieve sustained high levels of performance through people. This meansthat giving close attention to how individuals can best be motivated through such means as incentives, rewards, leadership and importantly the work they do andthe organization context within which they carry out that work. The aim of course is to develop motivation process and a work environment that will help to ensure that individuals deliver results in accordance with the expectation of manag

ement.


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2.2.2 Key components of workplace revolving groupsBrooks (1999) argued that informal groups are based more on personal relationships and agreement of group members than on any defined role relationship. They simply emerge in the organization, from the informal interaction of the members ofthe organization. They may be born out of shared interests, friendship or someother social aspect. What informal groups satisfy, in a way that the formal groups may not, is that sense of belonging, the idea that we can be wanted, needed,

included for what we are and not because the organization has put us to work with other people.Brooks (Ibid), further points out that informal groups also reduce feeling of insecurity and anxiety and provide each other with social support; fulfill affiliation needs of friendship, love, and support; help to define our sense of identity and maintain our self esteem; provide guidelines on generally acceptable behaviour; and cater for those often ill-defined tasks which can only be performed through the combined efforts of a number of individuals working together.

Sandra (1998) points out that, groups contribute in two forms: contribution to individuals; satisfaction of social and affiliation needs, security, support, and

enhance feelings of self-esteem, if other members value a member. Contributionto the organization; provide and enforce guidelines for appropriate behaviour,provide a sense of identity hat often include a certain degree of status, enhance members access to information and help to integrate new employees into the informal group expectations.

2.2.3 Influence of pay package on the formation of workplace revolving groupsIn most organizations, informal groups are predominant in the lower cadre category of employees. It is no coincidence that this is also the lot that is paid lowest in the organization. This therefore demonstrates that there exists a relationship between the compensation people get and the value they attach to the organ

ization. This gives them the impetus to join an informal group for support financially, emotionally or otherwise. This therefore, means that a good pay packagewill have a positive impact on the group and therefore help shape its attitude towards the organization.Drucker (1955) is of the opinion that if one can get fired for poor performance, one must also be able to get rich for extraordinary performance. Rewards should be directly tied in with the objectives set for the managers job. It is misdirection of the worse kind to tell employees that have to balance objectives to preserve the long-term earning power of the business while basing their pay on immediate short-range profits.According to Taylor (1939) the primary motive for hard work is high wages. Therefore, the role of management is to organize work as efficiently as possible so that high wages can be earned. Bennet (1997) argues that a remuneration policy has two objectives:(i) To attract and retain high caliber workers and(ii) To provide incentives for increased effort. In most western countries, remuneration schemes have tended to move away from direct incentive systems towardsother methods, which recognize that workers are motivated by factors other thanmonetary rewards. Desires for security, stability of earnings and job satisfaction are also important.

According to Cole (2007), quite apart from the internal pressures on managementto set acceptable levels of pay, there are considerable external constraints imp

osed by legislation. All the more important, therefore, that manager should planwages and salaries systematically, taking into account of external and internalinfluences on the ultimate costs involved.


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Cole (Ibid) further states that the payment of wages is the employers legal obligation to his or her employees. How much it to be paid, and in what manner, is amatter of judgment or negotiation. In theory, if an employer wee free to pay what he or she liked, he or she would probably pay the minimum. In reality of course, few employers are free to approach the labour market in this way, since thereare numerous factors which distort the force of supply and demand.

Cole (Ibid) concludes by suggesting that it is important for organizations to review their pay and benefits on a regular basis. The continuing ability to recruit, retain and motivate staff is vital to employee resourcing. Salary levels needto be comparable the competitors. Benefits, in particular, should be carefullyexamined as they are usually more visible than pay and can develop into major irritants if their application is seen to be unfair by those concerned.2.2.4 Indicators of employee productivityA team, according to Adair (1986), is more than a group with a common aim. The contributions of individuals are seen as complementary in a group. Collaboration,working together, is the keynote of a team activity. He further suggests that t

he test of a good (i.e. effective) team is whether its members can work as a team while they are apart, contributing to a sequence of activities rather than toa common task, which requires their presence in one place and at one time.Cole (2007) observes that since the majority of employees in organization are employed in groups if one kind or another, attention to team-roles, group workingand/or team development is a crucial activity for management. He further pointsout that as the Japanese experience has shown, the development of highly cohesive teams imbued with the organizations culture, has brought considerable benefitsboth to the individuals and to the economy at large. As such, improvements areintimately associated wit personal values and self esteem.Graham (1998) views leadership styles as the ability of a person to influence th

e thoughts and behaviors of others. A leader is a person who directs and controls the group so that the purposes of the group are achieved. A good management style is that which facilitates adequate or high productivity with reduction in labour turnover and grievances. He adds that there is a continuum of possible leadership styles extending from complete autocracy at one extreme to total democracy at the other.According to Cole (2002), since 1950s, much of leadership has centered on the behaviour, or style, of the leader. If leadership is not so much about personal attributes, the argument goes, and then perhaps it is about the way in which theleader exercises leadership? In reference to a study carried out in 1939 by Lewin, Lippit & White that examined the effect of leadership style on the performance; he points out that the results indicated that in terms of both goals and member satisfaction, a democratic style was preferred to autocratic or laissez-fairestyle.

Cole (Ibid) argues employees participation is essential in organizations. He emphasizes the participation of non-managerial employees in the decision making process of an organization. He further terms participation as the practice in whichemployees take part in management. Participation is based on a community of interest between employer and employee; in furthering the long-term prospects f theenterprise and those working in it.

Cole concludes by stating, We know enough about leadership to understand that it

is not just a straightforward choice between this or that style. It is principally a question of balancing a number of key factors, such as the nature of the task, the composition of the group, the degree of authority available and the pers


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onal attributes of the leader. This balancing act is not achieved in a vacuum, but in the context of a living organization, composed of ordinary people, and shaped by their dominant values.

2.3 Critical ReviewIn the above studies, the authors quoted come clear on the importance of the ach

ieving organizational goals. In all these, the underlying pillar becomes the need for collective and complementary effort geared towards increased productivity.In effect, they fail to boldly state how the present day managers can harness the potential for informal groups to drive the organization productivity to evenhigher levels.This study was about the impact of workplace revolving groups on employee productivity. Most authors in the studies above concentrated their arguments on the formal employee employer (management) relations. They gave little reference to specific informal groups, which exist outside the controls, and policies of the organization can influence the productivity. Whereas praising the role of teamwork,the authors did not come clean on the significance of workplace revolving group

s on employee productivity.

2.4 Chapter SummaryInformal groups have always existed in all formal organizations; however, littleregard has been given to their potential in influencing the productivity of theorganization. It is evident therefore that the management needs to device the measures for containing the activities of informal groups that could be detrimental to productivity. High productivity will be ensured through recognition of theindividual members to reap from the team spirit established naturally through the existence of these groups.

CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

This chapter is about the methods that were used in carrying out the study. It w

as precisely detailed and highlighted the following subtopics: research design,target population, sampling techniques and instruments of data collection, datacollection procedures and data analysis.


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3.2 Research DesignThe research employed a descriptive study whose aim was to establish the effectsof informal groups (revolving groups) on employees productivity in Equity Bank.Descriptive research seeks to establish factors associated with occurrences, outcomes, conditions or types of behaviour.

Descriptive research is a scientific method of investigation in which data is collected and analyzed in order to describe the current conditions, terms or relationships concerning a problem. These methods of research were chosen because itallowed for in-depth study of the case.

3.3 Location of the StudyThe study was conducted at the Equity Bank Headquarter offices situated at Equity Plaza, Upper Hill, Nairobi.3.4 Target PopulationThe study targeted the lower cadre employees that are on jobs group 3 to 7 at th

e Nairobi head offices of Equity Plaza, Upper Hill. This included every cadre ofemployees from all the departments. Due to logistic problems, the study did not consider employees of the bank operating outside the head office. In total, the bank employs about 1,311 employees of various carders and qualifications.

3.5 Sample design and procedureA sample is a small portion of a target population selected using some systematic procedure for study. Stratified sampling method was used in this study. A sample of 0.2 was used from each a stratum (category) from which respondents was selected.

Table 3.1:Sample size

Department Target population (x 0.2) Sample population

Supervisors80 x 0.216

Operational120 x 0.224

Clerical 200 x 0.240

Total 400 x 2080

Source: Author, 2011

3.6 Data Collection Instruments and ProcedureThe researcher used questionnaires and interviews in collection of raw data. Thequestionnaires contained both closed and open-ended questions. The researcher a


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lso prepared and personally interviewed some members of staff on the effects ofworkplace revolving groups on productivity.

3.6.1 Data collection procedureThe questionnaires were distributed to the respondents at their duty stations and picked later by the researcher after completion by the respondents. Interviewswere conducted by the researcher with the management staff in order to reinforc

e results of the questionnaires that had been completed.3.7 Data Analysis Methods & ProcedureThe data collected through the questionnaires and interview schedule were analyzed using graphs, tables, percentages, frequencies, and pie charts. These included content or descriptive analysis, use of graphs and tables for presentation. The charts and analysis were generated using SPSS computer package for social andscientific data analysis.

CHAPTER FOUR

4.0 DATA ANALYSIS INTERPRETATION AND PRESENTATION OFRESULTS

4.1 IntroductionThis chapter is a presentation of the results of the study. The findings are presented in two distinct areas, namely:

Part A- information on the respondents bio data

Part B - the area of study. The results are presented in table and graphs generated using computer statistical packages.

4.2 Response RateThere were 80 respondents selected for this study, out of this number only 60 completed and returned the questionnaires sent to them. Most of those who did notreturn the questionnaires claimed that they had busy schedule, which did not allow them to participate. Others claimed that academic of studies were a waste oftime so they did not fill them as expected whereas others misplaced the questionnaires. The general response rate was as shown in the table below:

Table 4.1: Response Rate

Response rate Target population FrequencyPercent (%)

Supervisors 1614 18

Operational staff 2418


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23Clerical staff 40

3645

Total80

6075


As indicated in table 4.1 above the study had a 75% response rate. This is rateis representative considering that only 25% responses were not received. The findings of the study presented here in are therefore reliable and representative.4.3 Respondents Background InformationThis section presents the findings of the study on the background information ofthe respondents.

4.3.1 Age bracket of the respondents

Table 4.2: age bracket

Age bracketNo. of respondents Percent (%)

20-29 years 15 25

30-39 years 24 4040-49 years 12 20

50 Above 9 15

Total60100

Source: Author, 2011The table above presents the findings of the study on the age distribution of the respondents. The findings indicated that the majority of the respondents wereaged between ages 30-39 at 40%, followed by those aged between ages 20-29years at 25%, then those aged between 40-49 years at 20% and lastly those aged over 50years at 15%.

4.3.2 Highest Educational level of the respondentsThe table below presents the findings of the study on the level of education ofthe respondents in the study. The findings of the study indicated that the majority of the respondents 60% had college diploma/certificates, 20% had universitydegrees, 10% had secondary school level of education and another 10% had MBA.

Table 4.3: Educational level attained

Educational levelNo. of respondents Percent (%)

Secondary education 610

College certificate/diploma 3660


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University degree 1220

MBA 610

Total 60100

Source: Author, 2011The graph below presents the result graphically:

Fig 4.1: Educational Level of the Respondents

4.3.3 Experience of the respondentsTable 4.4: Experience of the Respondents

Length of serviceNo. of respondents Percent (%)

0-9 years 2440

10-19 years 2033

20-above 1627

Total

40 100


The table above presents the findings of the study on the length of time the respondents had been in the service of the ministry. The results indicated that, the majority 40% had been in the ministry for between 0-9 years, 33% had been in the ministry for between 10-19 years and only 27% had been in the ministry for over 20 years. This is an indication that most of the respondents have been in the service of the ministry long enough to be able provide unbiased and reliable information concerning the operations as well the effect of informal groups on performance.

4.3.4 Distribution of the respondents based on income

Table 4.5: Income bracket

Income bracketNo. of respondentsPercent (%)

Less than 10,000 3050

1001-20000

1832


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20001-3000069

30001-above69

Total 60100


Table 4.5 above presents the findings of the study on the salary range of the respondents. The findings indicated that the majority, 50% of the respondents earned below ksh.10,000, 25% earned between ksh10,000-20,000; 12.5% earned between ksh20,000-30,000 and another 12.5% earned above ksh30,000.

4.3.5 Current position held by the respondentsThe table below presents the findings of the study on the positions held by therespondents in the organization. The findings revealed that the majority, 34% ofthe respondents were clerical officers, 20% were HR officers, economists and executive assistants were both represented by 13% and lastly both Accountants andHR assistant were represented by 10%.

Table 4.6: Current position held by the respondents

PositionNo. of respondents

Percent (%)

Clerical officer 20 34Accountant 6 10HR officer 12 20Economist 8 13HR Assistant 6 10Executive assistant 8 13Total

60100


The graph below presents the findings graphically:

Fig 4.2: Position held by the respondents


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Source: Author, 20114.4 Impact of Informal Groups on Employee ProductivityThis section present the findings of the study on the area of study influence ofinformal groups on employee productivity.

4.4.1 Respondents definition of workplace revolving groups

Table 4.7: Respondents definition of the revolving groups

Definition No. of respondents Percent (%)Merry-go-round 40

67

Teams

1220

Work units 813

Total 60 100


The table above presents the findings of the study the respondents definition ofworkplace revolving groups. The majority, 67% of the respondents defined revolving groups as merry-go-round, 20% defined them simply as teams and 13% thought revolving groups to be work units.

4.4.2 Key features of workplace revolving groups

Table 4.8: Features of workplace revolving groups

Features Frequency Percent (%)Set to achieve set goals and objectives 4

7

Are temporary/short lived 23

Inconsistent due to lack of proper leadership structures35

Lack adequate resources to sustain them 3 5

Their objectives are not in line with the organizations23

Based on interests i.e. ethnicity, gender, friendship or cadre8 14

Individual members meet and contribute cash 1220

Show of teamwork among group members4 7


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Boost morale of members 23

Commitment and sense of belonging 58

Operate on trust 4

7

Formed by between 5-10 people 2 3Common among female employees 9 15Total

60100

Source, author 2011

These findings can also be presented in a graph as follows:

Fig 4.3: components of revolving groups


4.4.3 Respondents attitude towards their pay package

Table 4.9: Respondents rating of pay package

Rate of pay packageNo. of respondents Percent (%)

Excellent00

Good610

Fair4575

Poor915

Total60100



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Table 4.9 above presents the findings of the study on how the respondents rate their pay package. The findings of the study indicated that, the majority 75% ofrespondents indicated that their pay package was fair, 15% rated their pay as poor, 10% indicated their pay was good and none of the respondents thought their pay could be described as excellent.

4.4.4 Whether pay package has influence on productivity

Table: 4.10 Influence of pay package on productivityResponses No. of respondents Percent (%)Yes

4575

No15

25

Total60100

Source: Author, 2011The table above presents the findings of the study on whether the respondents pay package had any influence on their productivity. The findings indicated that,75% of the respondents believed that their pay package had influence on their productivity.

4.4.5 Whether current pay package can encourage joining revolving groupsThe table above presents the findings of the study on whether the amount of salary the respondents draws would influence him/her to join a revolving group at workplace. The findings showed that 50% of the r respondents were positive the amount they drew in form of salary would make them join a revolving groups, 42% didnot think and a further 8% were not sure. This revelation points to the fact that ones pay package has a considerable influence in making to join or not to joina workplace revolving group.Table: 4.11 pay package and joining revolving groups

ResponsesNo. of respondentsPercent (%)

Yes3050

No2542

Not sure 58

Total60


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100


These findings are also presented below in a graph:

Fig. 4.4: pay package and revolving groups


4.4.6 Indicators of employee productivity

Table 4.12: factors that indicate employee productivity

Factors/indicators Frequency Percent (%)Recognition

24

Delegation24

Increased profitability410

Incentives and bonuses for employees 36

Enhanced teamwork amongst employees612

Good quality products/services 510

Minimum supervision 24

Equal training opportunity24

Improved/good working conditions 48

Morale when carrying out duties 48

Adequate working tools/resources48

Meeting of deadlines 612


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Minimum conflicts 48

Customer satisfaction 715

Free flow of information within the organization 5

10

Improved corporate image 48

Total60100


The above table presents the findings of the study on the indicators of productivity in the organization. The study revealed that the most popular indicators ofproductivity were: customer satisfaction 15%; meeting of deadlines 12%; enhanced teamwork 10%; free flow of information within the organization 10%; improved/good working conditions 8%; morale when carrying out duties 8%; adequate workingtools and resources; and improved corporate image among others.Fig. 4.5: Indicators of productivity


4.4.7 Whether workplace-revolving groups have influence on productivityThe table below presents the findings of the study on whether workplace revolving groups have any influence on employee performance. The findings showed that, the majority, that is, 90% of the respondents believed that workplace revolving groups had influence on productivity, 10% of the respondents were not sure, and none of the respondents were negative about this.

Table 4.13: Revolving-groups and productivity.Responses

No. of respondentsPercent (%)

Yes 54 90No 0 0

Not sure 610

Total 60 100


These findings are also presented below in a graph form:

Fig 4.6: Revolving groups ad productivity



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4.4.8 How workplace revolving groups affect productivity

Table 4.14: effect of workplace revolving groups on productivity

Effects Frequency Percent (%)

Help in brainstorming of ideas 6 12Helps build positive relationship among staff 10

20

Improves productivity 6 13Helps the organization to generate quality leaders 5

10

Helps improve flow of work 8 15Helps make employee efficient 10 20Gives employees a sense of belonging 15

30

Total 60 100


The table above presents the findings of the study on how workplace revolving groups impact on productivity. The findings indicated the following as some of thefactors that show how revolving groups affect productivity: they help in brainstorming of ideas; builds positive relationships among staff; improves productivity; helps the organization in generating quality leaders; improves flow of work;make employee efficient; gives employees a sense of belonging.

The figure below presents these findings graphically:

Fig. 4.7: effects of revolving groups on productivity


4.5 Qualitative Analysis

4.5.1 General comments on informal groups in the organization


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It was established in the study that some of the key components of workplace revolving groups include: they are common among female members of staff, they meetregularly, members contribute cash every time they meet, they are temporary in nature, they operate on trust, they boost the morale of members, they provide themembers with commitment and a sense of belonging, and that their objectives arenot always in line with the organizational objectives.

4.5.2 Indicators of productivity

The results from the study showed that some of the common indicators of performance included: the ability of employees to meet deadlines, minimum conflicts in the organization, improved employee morale, increased productivity, incentives/bonuses for employees, quality services, and minimum supervision. Other indicatorsincluded improved working conditions, enhanced teamwork and customer satisfaction.4.5.3 Informal groups and productivity in the organization

The respondents made it clear that workplace-revolving groups had effect on prod

uctivity. Effectively the results indicated that informal groups affected productivity in the following ways: the groups helped in generating ideas, also helpedin building positive relationships among members of staff, and enabled organizations to generate leaders. Other factors that indicate productivity in the organization included making of employee more efficient as well as giving the membersa sense of belonging.

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONOF THE STUDY

5.1 IntroductionThis chapter begins with the summary of the study. The focus of the study is discussions of the results arising from data analysis of chapter four. The also presents the conclusions as well as the recommendations made in the study.5.2 Summary of findingsThe purpose of the study was to establish the impact of workplace revolving gro

ups on employee productivity. The study was guided by the following specific objectives: to find out the key components of workplace revolving groups; to determine the indicators of employee productivity; to analyze the effect of pay packa


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ge on the formation of workplace revolving groups; and to establish the effect of workplace revolving groups on employee productivityThe research design for this study was a descriptive study that aimed at establishing the effects of salary structures of employee performance. Descriptive research is a scientific method of investigation in which data is collected and analyzed in order to describe the current conditions, terms or relationships concern

ing a problem.

The findings of the study indicated the following as some of the common featuresof workplace revolving groups in the Bank, they are set to achieve set goals and objectives; in most cases are temporary/short lived; they are inconsistent dueto lack of proper leadership structures; they lack adequate resources to sustain them; mostly their objectives are not in line with the organizations; they arebased on some point of interest i.e. ethnicity, gender, friendship or cadre in the organization.

They also possess the following features members f these groups meet and contribute cash; there is always a show of teamwork among team members; they boost mora

le of the members; members show commitment and sense of belonging; they operateon trust; they are formed by between 5-10 members; and are common among female employees.The study revealed the following as some of the factors that indicate productivity in the organization: recognition; delegation; increased profitability; incentives and bonuses for employees; enhanced teamwork; good quality products and services. Other indicators according to the findings of the study include minimum supervision; equal training opportunity; improved/good working conditions; moralewhen carrying out duties; adequate working tools/resources; ability to meet deadlines; customer satisfaction, free flow of information within the organization;improved corporate image and minimum conflicts in the organization.

On whether pay package had any effect on the formation of workplace revolving gr

oups; the findings of the study revealed that the majority of the respondents indicated that the amount of salary they drew at the end of the month could motivate them to join a workplace-revolving group. On establishing the effect of workplace revolving groups on employee productivity, the study found that 90% of therespondents believed that workplace-revolving groups had impact on their productivity in the organization.

5.3 Answers to Research QuestionsWhat are some of the key components of workplace revolving groups?Based on the findings of the study it can be said that the most common components or features of workplace revolving groups include: the groups are based on certain points of interest i.e. ethnicity, friendship, gender, or cadre of the employee; that individual members meet and contribute cash regularly; that members of these groups show the spirit of teamwork; that these groups helps cultivate commitment and sense of belonging among members; these groups operate on trust; and that they are common among female employees.

What are the indicators of employee productivity?The findings of the study revealed several factors that indicate employee productivity in an organization. Some of the most common according to the results include: increased profitability; enhanced teamwork among employees; good quality products/services; improved/good working conditions; show of morale when carryingout duties; availability of adequate tools and resource of work; when deadlinesare met; when there are minimum conflicts; customer satisfaction; free flow of i

nformation; and improved corporate image.Does pay package have any effect on the formation of workplace revolving groups?


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The findings of the study revealed that a considerable majority of the respondents believed that their pay package played a major role in their readiness to join a revolving group at workplace.

What is the impact of workplace revolving groups on employee productivity?The findings of the study affirmed that workplace-revolving groups had impact onemployee productivity in the Bank. The study further established that revolving

groups had the following effect on employee productivity: gives members sense of belonging; makes employees more efficient; helps build good interpersonal relationship among staff; helps in brainstorming of ideas; helps improve flow of work; helps the organization to generate quality leaders; and that they improve productivity by enabling members solve their financial woes that would otherwise preoccupy their working hours.

5.3 Conclusion

Conclusions of the study are made along the specific objective of the study, which includes the following:

To find out the key components of workplace revolving groups.Based on the findings of the study it can be said that the most common components or features of workplace revolving groups include: the groups are based on certain points of interest i.e. ethnicity, friendship, gender, or cadre of the employee; that individual members meet and contribute cash regularly; that members of these groups show the spirit of teamwork; that these groups helps cultivate commitment and sense of belonging among members; these groups operate on trust; and that they are common among female employees.To determine the indicators of employee productivity, the findings of the study

revealed several factors that indicate employee productivity in an organization.Some of the most common according to the results include: increased profitability; enhanced teamwork among employees; good quality products/services; improved/good working conditions; show of morale when carrying out duties; availability of adequate tools and resource of work; when deadlines are met; when there are minimum conflicts; customer satisfaction; free flow of information; and improved corporate image.To analyze the effect of pay package on the formation of workplace revolving groupsThe findings of the study revealed that a considerable majority of the respondents believed that their pay package played a major role in their readiness to join a revolving group at workplace.To establish the impact of workplace revolving groups on employee productivityThe findings of the study affirmed that workplace revolving groups had impact onemployee productivity in the ministry of Planning, National Development and Vision 2030. The study further established that revolving groups had the followingeffect on employee productivity: gives members sense of belonging; makes employees more efficient; helps build good interpersonal relationship among staff; helps in brainstorming of ideas; helps improve flow of work; helps the organizationto generate quality leaders; and that they improve productivity by enabling members solve their financial woes that would otherwise preoccupy their working hours.

5.5 Recommendations of the studyThe findings indicated a presence of workplace revolving groups in the ministry;


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this did not however seem to be a threat to the productivity of the organization. On the contrary, the study revealed several interesting factors that showed that the groups could actually help improve productivity. It is against this background that the researcher makes the following recommendations:

The management should harness the benefits that accrue from the bond and the interpersonal relationship that is born from the association of the members of theworkplace revolving groups in the ministry.The findings revealed that through the revolving groups members are able to interact which encourages flow of work. The management should adopt a leadership style that allows free association as this leads to formation and sustenance of team spirit among members of staff in the organization.

High productivity is a central goal of every organization and the only goal to achieving this goal is through people, therefore the management need to create anenvironment where the employees desire or drive to achieve is unwavering. The fi

ndings of the study indicated that revolving groups provided a forum where members were able to help boost the morale of each other.

Teamwork or team spirit was pointed out as one of the popular indicators of performance. The management should therefore refocus its energy and intents on ensuring that members of staff work together in achieving the overall productivity goals of the Bank.

The findings of the study indicated that workplace-revolving groups had a positive influence on employee productivity in the organization. The study indicated that revolving groups helped improve productivity especially considering the factthat groups were took care of the members financial problems, which in turn eased some of their stresses that could otherwise derail their productivity. This th

erefore should be a wake up call to the management to strive to encourage the existence of informal groups.

REFERENCES:

Anthony D. (1999) Leadership, 3rd edition. Pauline publication Africa Nairobi

Armstrong M. (2001), A handbook of human resource management practice (8th edition) McGraw Hill Book Company, London


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Bennet R (1998) Organizational behaviour, (5th edition) McGraw Hill Book Company, London

Cole, G.A. (1996), Management theory and practice (5th edition) Kogan Page

Deacon C. (1998) Human behaviour in organization, McGraw Hill Companies Inc. NewYork.

Drucker P.F. (1939), Practice of management, Prentice Hall London

Fuster J.M. (2005), Personal counseling, publisher better yourself books, bandara Mumbai. 12th Edition.

Graham H.T. & Bennet R (1998) Human resource management, (6th Edition) McGraw Hill Book Company, London

Nzuve S.N.M. (1999) Element of organization behaviour, university press Nairobi.

Sagimo P.O. (2002) Management dynamics, east Africa publishers Nairobi

Saleemi N.A. (1997) Management (principles and practice) simplified. N.A. Saleemi publishers, Nairobi.

Schein, E.H. (1990), Organizational culture American psychologist, New YorkTaylor F.W. (1939), Industrial management, prentice hall London

Appendix I

TRANSMITTAL LETTER

Institute of Human Resource Management,

National Bank House, 20th Floor,

Nairobi.

To The Respondent,

Equity Bank,

Nairobi.Dear Sir/Madam,

RE: RESEARCH ON IMPACT OF REVOLVING GROUPS ON EMPLOYEE PRODUCTIVITY.


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I am a student at the Institute of Human Resource Management pursuing a Higher Diploma in Human Resource Management. As part of the requirement of the Kenya national examination council, I am required to carry out a research on the above-mentioned topic in your organization.

I therefore send this questionnaire to you for completion. Your contribution ofideas and opinions will be very helpful in completing the research. Please complete the questionnaire attached and return to the researcher.

Note the information collected will be treated with due confidentiality and foracademic purposes only.Yours faithfully,

Victor Njuguna Kamau.

Appendix II

QuestionnairePlease complete the questionnaire by ticking the correct option.

Part A: background information of the respondent

1. Age bracket

20 - 29 years ( )

30 39 years ( )

40-49 years ( )

50 Above ( )

2. Highest level of education reached

Secondary education ( )

College certificate/diploma ( )

University degree ( )

Other ( )

3. Length of service

0-9 years ( )

10-19 years ( )


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20- Above ( )

4. Income bracket (per month in Ksh.)

Less than 10,000 ( )

10,001 20,000 ( )

20,001 30,000 ( )

Over 30,001 ( )

5. Current position_______________________________________________________

Part B: Impact of informal groups on employee productivity

6. Define a revolving groupMerry-go-round TeamsWork units7. What are some of the key features of workplace revolving groups in yourorganisation?

_______________________________________________________________________________________________________________________________________________________________________________________________________________8. How do you rate your pay package?

Excellent ( )

Good ( )

Fair ( )

9. Do you think your pay package has any influence on your productivity?

Yes ( )

No ( )

Dont know ( )

10. Is the amount of salary you draw likely to make you join a revolving group?

Yes ( )

No ( )


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Not Sure ( )

11. What are some of the factors that indicate employee productivity?

12. In your opinion, do workplace-revolving groups have any effect on employeeproductivity?

Yes ( )

No ( )

Not sure ( )

13. If yes above, how does workplace revolving groups affect employee productivity in your organisation.

Appendix III

INTERVIEW SCHEDULE FOR MIDDLE LEVEL MANAGERS

The interview schedule was used as a guide to assist the researcher to collect relevant information pertaining to revolving (merry-go-round) groups on employeeproductivity.

1. What are your comments in general on informal groups in your organizationor department

2. What do you think are the clear indicators of employee productivity

3. What are your comments on general productivity in your organization or department with regard to revolving groups?.


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Appendix IV

Budget

Items Cost KshStationary 1,800.00Typing 2,500.00Printing 1,000.00Binding 700.00Miscellaneous expenses 1,000.00Total 7,000.00

Appendix V

Time plan

March April May June July SeptemberActivityWriting the literature review ++++++

++++++++++++Preparation of data collection instruments +++++++


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++++++++++++++Pilot study +++++++++++++++++++++Data collection ++++++++++++++++++++++++++++++

Analysis and presentation of data ++++++++++++++++++++++++Submission of proposal ++++++++++++++++++++++++

Documents

eployee perfomance