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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

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Page 1: INFLUENCE OF PERFORMANCE MANAGEMENT ON JOB …

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

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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

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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

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COPYRIGHT

© Copyright 2021 by Bonaventure Nabongo Makokha

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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

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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.

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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.

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DEDICATION

I dedicate this to my family for their unrelenting support in my studies

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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

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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

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APPENDICES .................................................................................................................. 86

APPENDIX I: INTRODUCTION LETTER ................................................................. 86

APPENDIX II: QUESTIONNAIRE .............................................................................. 87

APPENDIX III: IRB RESEARCH PERMIT ............................................................... 92

APPENDIX IV: NACOSTI PERMIT ............................................................................ 93

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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

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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

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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

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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,

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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

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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.

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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

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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

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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).

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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.

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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.

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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).

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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.

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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

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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

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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

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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

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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.

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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

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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).

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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

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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

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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

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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

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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.

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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.

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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

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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

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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

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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

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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.

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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.

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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.

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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.

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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).

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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).

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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

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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).

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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

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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)

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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

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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).

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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

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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)

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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

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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

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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

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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)

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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

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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.

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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.

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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

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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.

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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

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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

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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.

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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.

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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

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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

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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

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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

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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.

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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

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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.

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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.

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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 [ ]

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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

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APPENDIX IV: NACOSTI PERMIT