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THE KENYA INSTITUTE OF MANAGEMENT CHALLENGES AFFECTING EMPLOYEE PERFORMANCE IN THE PETROLEUM INDUSTRY IN KENYA (A Survey of Meru Town) Douglas Kiriinya Mwangi MRU/363 A Research Proposal Submitted In Partial Fulfilment of Requirements for the Award of a Diploma in Business Management of the Kenya Institute of Management September, 2015 DECLARATION Student’s Declaration This proposal is my original work and has not, to the best of my knowledge, been presented to any other institution for any other award. …………………………. …………………….. DOUGLAS KIRIINYA Date (MRU/363) Declaration by the Supervisor(s) This proposal is submitted for examination purposes with my approval as a supervisor at KIM - Meru. …………….……………….. …………………… Mr. SAMUEL NYAKARIMI Date Supervisor, KIM - Meru For and on behalf of the Kenya Institute of Management …………….……………….. …………………… Isaiah Mugambi M. Date Branch Manager, KIM - Meru ii DEDICATION iii iv ACKNOWLEDGMENT I would like to thank the almighty God for helping me come this far. Special thanks also go to my supervisor for reading through the work and offering insightful advice. I would thank the management of KIM for providing conducive learning environment and also learning materials from the library. v TABLE OF CONTENTS vi LIST OF ABBREVIATIONS WPC- The World Petroleum Council vii DEFINITION OF KEY TERMS Performance: Fulfilment of an obligation or task, measured against preset known standards of accuracy, completeness, cost or speed. viii ABSTRACT This research project focused on the challenges affecting employee performance of the petroleum industry in Kenya with a survey of Meru Municipality. The background of the study gave an overview, structure, characteristic, and the employee performance of petroleum industry in the World, Africa, East Africa, Kenya and Meru Municipality. Problem statement hinged on key performance indicators such as; reward management, training standards, working conditions and job satisfaction. The study was guided by the following specific objectives To establish how reward management affects employee performance in the petroleum industry, to find out how training standards affect employee performance in the petroleum industry, to determine the effect of working conditions on employee performance in the petroleum industry, and to investigate how job satisfaction affects employee performance in the petroleum industry. A descriptive research design was applied in its methodology. This study targeted a population size of all company out of the six main petroleum distributing firms in Kenya. A stratified random sampling method was used to select a sample size of 50 employees. Data collection instruments used was a questionnaire developed and distributed to 50 employees and completed by 46, for a 92% response rate. Descriptive statistics was used in the analysis of the data and presented by use of frequency distribution tables, percentages and bar charts. The respondents profile portrayed a qualified, relatively less experienced, youthful and energetic employees mostly men with prior experience in the private and public sector. The study revealed that the level of organization’s support was unsatisfactory hence negatively influencing performance of the organization. The employees’ commitment level was hampered by inequitable treatment based on the existing rewarding system, hence negatively influencing the performance. The results showed that transformational leadership as practiced by the management; save for individualized support and intellectual stimulation; positively influenced the organizational performance. Nevertheless, the management failed to impress on the area of contingent reward, thus yielding a negative influence on performance. On resistance to change, the study revealed that the employees embraced change, hence positively influencing the performance of the organization. The study concluded that organization’s support for innovation; employee commitment; leadership style and resistance to change are vital environmental challenges influencing performance of the petroleum industry in Kenya ix x CHAPTER ONE 1.0 Introduction This chapter contains the background to the study, problem statement, and purpose of the study, specific objectives and significance of the study, the conceptual framework, limitations, and scope of the study. 1.1 Background to the Study The structure of the world petroleum industry has become more globalized with a small number of multinational companies dominating the world petroleum industry. According to international energy forum Oil and natural gas have been utilised by humankind for thousands of years. Industrial-scale exploitation of these resources is considered to have started in Pennsylvania about 150 years ago. It is impossible to predict how long the petroleum age will last, but the projections above clearly indicate that for next several decades fossil fuels will continue as the main source of energy for the world development. The oil industry has been known to be very lucrative for the countries that are lucky to have their own natural gas and oil; these countries control a large stake in the world economy. According to the research firm Deloitte and Touché the oil prices have significantly dropped from the initial prices in. The USA is the world largest oil importer in the followed by Japan, the levels have significantly owing to the reliance of natural gases these increases the number of pump stations and the number of pump attendants required. Currently with 70 member countries, representing over 97 percent of the world’s production of oil and natural gas, the WPC is uniquely positioned to promote a forum for the debate of the key issues that the industry is facing and the dialogue with all its stakeholders. The petroleum industry has never failed society on what respects delivering affordable and reliably supplies of oil and natural gas, except for relatively minor disruptions caused by natural disasters or manmade conflicts. However, the challenges that the industry is now facing require that new paradigms be established with respect to the level of cooperation with the industry’s stakeholders, development and deployment of breakthrough technologies and social responsibility in doing business. 1 People, innovation and technology: The combination of skilled human resources, innovative thinking and new technologies has been and will continue to be the key factor in finding and developing new sources of hydrocarbons in the most challenging environments. It is for this reason that time and again ingenuity unlocks enormous new pools of resources that were unknown or not viable even in well-explored provinces. Recent examples are the huge shale gas resources being developed in North America and now being target around the world, and the vast amounts of oil discovered only in the last 10 years, in spite of over 50 years of exploration activity, in the Lower Tertiary of the United States’ Gulf of Mexico and the presalt layers of the Santos and Campos basins offshore Brazil. J carpenter in his research says that the African continent is home to five of the top 30 oilproducing countries in the world. It accounted for more than 8.7 million barrels per day in 2014, which is about 9.4% of world output for the year. This level of production is down somewhat from the heights of 2005 to 2010 when African production topped 10 million barrels per day, including a high of nearly 10.7 million barrels per day in 2010. As of 2015, declines are due mostly to political and civil instability and violence in many of Africa's biggest oil-producing countries. The top petroleum producing countries in Africa include Nigeria, Angola, Libya, DRC Congo and closer home is Egypt, Sudan, and South Sudan. In the East Africa there oil explorations that are still going on and they have discovered deposits of oil in the likes of Ngamia 1 in Kenya and other places that will see us able to produce and refine our own petroleum. There are several oil distributing channels in the country that include companies such as Kenol kobil, National oil, Hashi, Oil Libya, Shell, Total that owns pumps stations throughout the country. With the recent development of the third world countries Kenya being one of them there an increase in the middle class population who own vehicles thus increasing the demand of fuel, lubricants and other motor vehicle needs. Putting this into consideration there has been emergence of many pump centres to meet the demand of fuel in the country thus increasing the chances of people getting employed at the centres. Meru is a part country that commands the economy with its Miraa, a cash crop, which is very lucrative bringing an increase in the number of motor vehicles in the region thus increasing the number of automobile gas stations. 2 Automobile service station attendants, also called Gas Station Attendants, perform duties at automobile service stations (gas stations) as requested by customers. They supply motor vehicles with fuel, lubricants, and parts. Duties most often performed include pumping gasoline, cleaning windshields, checking the water levels in the radiators and batteries, checking the oil level in engines and the fluid level in automatic transmissions, checking tires for correct air pressure, and handling cash payments or preparing charge slips for credit-card customers. They also sell and install parts and accessories such as tires, batteries, fan belts and windshield wiper blades. Automobile Service Station Attendants may also do minor maintenance and repair work such as changing oil, rotating and repairing tires and replacing mufflers. In performing maintenance and repair work, Automobile Service-Station Attendants may use simple hand tools such as screwdrivers, pliers and wrenches. More complex equipment may include motor analyzers and wheel alignment machines. Other work around the service station may include keeping the service areas, building and restrooms clean. In some stations, attendants help the manager take inventory of automobile parts in stock, set up displays and keep business records. If a gasoline service station provides emergency road service, the attendant occasionally may drive a tow truck to aid motorists with mechanical problems or tow their vehicles back to the station. Attendants work indoors and outdoors in all kinds of weather. While offices may be heated, service areas are not. Attendants do considerable lifting and stooping and spend much time on their feet. Possible injuries include cuts from sharp tools and burns from hot engines. Safety precautions help protect against more serious injuries. Because of the nature of the work, attendants frequently get dirty as they pump gasoline and work around oil and grease. 3 1.2 Statement of the Problem It is increasingly difficult to describe exactly what sort of qualifications one must have in order to work in this field. What form of training, to do with courtesy when dealing with customers or to handle emergencies is provided by employers to their workers? It is with this in mind that the researcher set out to conduct an investigation of service stations within the Municipality of Meru. 1.3 Objectives of the Study 1.3.1 General Objective To investigate the challenges affecting employee performance in the petroleum industry. 1.3.2 Specific Objectives i. To establish how reward management affects employee performance in the petroleum industry. ii. To find out how training standards affect employee performance in the petroleum industry. iii. To determine the effect of working conditions on employee performance in the petroleum industry. iv. To de how job satisfaction affects employee performance in the petroleum industry. 1.4 Research Questions i. What is the effect of reward management on employee performance in the petroleum industry in Kenya? ii. What is the effect of training standards on employee performance in the petroleum industry in Kenya? iii. What is the effect of working conditions on employee performance in the petroleum industry in Kenya? iv. What is the effect of job satisfaction on employee performance in the petroleum industry in Kenya? 1.5 Importance of the Study Thus, the researcher believes that identifying what problems face petrol station attendants in performing their daily duties can go a long towards improving their welfare as workers 4 because there would be a basis on which to state their case against poor working conditions or low pay. With improved productivity from individual employees as a result of addressing workplace problems, owners/operators stand to gain more returns and thus higher profits from their businesses. 1.6 Limitations of the Study The researcher anticipates hurdles in obtaining permission and a lack of co-operation from firms not keen to divulge information on how they carry out their daily operations. There could also be issues where staffs find it difficult to speak in negative terms about their employers. 1.7 Scope of the Study The researcher has the intention of looking into a representative sample of the petrol stations that operate within Meru Municipality over a period of three weeks (21 days) in the month of November. There is only one data source for the entire study and that is the petrol station attendants serving at the targeted premises. 5 1.8 Conceptual Framework Reward Management Training Standards Influence Employee Performance Working Conditions Job Satisfaction (Independent variables) (Dependent variable) (Source: Researcher, 2016) 6 CHAPTER TWO LITERATURE REVIEW 2.1 Introduction The aim of this literature review is to acknowledge the contribution of other people in the proposed area of study. It brings out the previous studies done by other scholars in the same areas to enlighten the researcher to examine challenges affecting employee performance of the petroleum industry in Kenya. 2.2 Theoretical Literature Review. Reward management has been described as a key function in HRM systems in modern organizations, and it is often designed to attract, retain and motivate employees (Milkovich, 2011). Because of the strategic nature of human resource in the attainment of corporate goals and organizational competitiveness (McMahan, 2012), many authors have discussed the subject of reward management from different perspectives. Some of these perspectives focus on dividing reward systems into two categories; Extrinsic and intrinsic rewards. Extrinsic reward systems generally focus on offering performance-linked salary increases, monetary rewards, long term incentive plans, team-based rewards, and security benefits to employees (Laursen, 2003). These authors argue in favour of the values of these types of reward in boosting the morale of employees and improving their productivity as the same time. The result of this to the organization is better bottom line performance through increased revenue and profitability (Angeles, 2011). Intrinsic rewards are non-monetary rewards and could come in form of enriching job responsibility and empowerment (Oldham 2006), providing training resources and comprehensive learning opportunities (Amabile,2001), and maintaining good interpersonal relationships among employees (Harrington, 2000). Angeles (2011) identify two reward management perspectives based on the above classification and they call extrinsic reward systems, utilitarianism and intrinsic reward systems, romanticism. According to these authors, these are the two highly debatable theories of reward management in the HRM field. One of the basic assumptions underlying the theories of reward management is that the performance and motivation of employees can be improved by establishing a link between efforts and rewards through formalized and specific individual targets (Thompson, 2001). 7 The reinforcement theory postulates that a behaviour which has a rewarding experience is likely to be repeated. The implication for remuneration is that high employee performance followed by a monetary reward will make future employee performance more likely. By the same token, a high performance not followed by a reward will make its recurrence unlikely in future. The theory emphasizes the importance of a person actually experiencing the reward. Like the reinforcement theory, Vroom’s expectancy theory focuses on the link between rewards and behaviour. Motivation, according to the theory, is the product of valence, instrumentality and expectancy. Remuneration systems differ according to their impact on these motivational components. Generally speaking, pay systems differ most in their impact on instrumentality the perceived link between behaviour and pay. Valence of pay outcomes remains the same under different pay systems. Expectancy perceptions often have more to do with job design and training than pay systems. Although many authors and writers have established that there are enormous benefits for organizations in putting in a place an effective reward management system, some authors still warn against over-reliance on reward systems because of its potential to create several organizational issues which focus on fairness and diversity (Cannon, 2004). Many other authors have critically examined the underlying philosophies of reward management and the variables that make up a typical reward mix. Baeten (2011) provides a deeper insight into this when they argue that there are 34 different possible theories underlying a reward management system. Eisenhardt (2011) however limits reward management theories to two namely: The agency theory and the institutional theory. Agency theories of reward management basically seek to align organization and individual objectives. The main aim is to use incentives to direct employees towards the interests of the owners of the business, and to design the reward mix to reflect that. On the other hand institutional reward management theory focuses on the formal and informal pressures exerted on organizations by other organizations with which it is connected. Some of these pressures could come in form of employment legislations, legal requirements, tax policies, and a desire to adopt the policies that others have adopted so as to gain the security that conformity is perceived to bring (Powell, 1991). Finally other known theory of reward management under the institutional classification is normative pressure. This occurs when members of an organization collectively come together to define the conditions and methods of their works. 8 Training standards. As one of the major functions within HRM, training has for long been recognized and thus attracted great research attention by academic writers (Gordon 2012,). This has yielded into a variety of definitions of training. Gordon defines training as the planned and systematic modification of behaviour through learning events, activities and programs which result in the participants achieving the levels of knowledge, skills, competencies and abilities to carry out their work effectively. It is worth nothing that, as researchers continue with their quest into the training research area, they also continue their arguments into its importance. Some of these researchers argue that the recognition of the importance of training in recent years has been heavily influenced by the intensification of competition and the relative success of organizations where investment in employee development is considerably emphasized (Beardwell et al. 2004). Related to the above, he adds that technological developments and organizational change have gradually led some employers to the realization that success relies on the skills and abilities of their employees, thus a need for considerable and continuous investment in training and development. The main purpose of training is to acquire and improve knowledge, skills and attitudes towards work related tasks. It is one of the most important potential motivators which can lead to both short-term and long-term benefits for individuals and organizations. There are so many benefits associated with training. Cole (2001) summarizes these benefits as highly motivated employees who receive training have increased confidence and motivations; lower cost of production as training eliminates risks because trained personnel are able to make better and economic use of material and equipment thereby reducing and avoiding waste; lower turnover –since training brings a sense of security at the workplace which in turn reduces labour turnover and absenteeism is avoided; change management as training helps to manage change by increasing the understanding and involvement of employees in the change process and also provides the skills and abilities needed to adjust to new situations; provide recognition, enhanced responsibility and the possibility of increased pay and promotion; and help to improve the availability and quality of staff. Nadler (2016) noted that all the human resource development activities are meant to either improve performance on the present job of the individual, train new skills for new job or new position in the future and general growth for both individuals and organization so as to be 9 able to meet organization’s current and future objectives. There are broadly two different methods that organizations may choose from for training and developing skills of its employees. These are on-the job training given to organizational employees while conducting their regular work at the same working venues and off-the-job training involves taking employees away from their usual work environments and therefore all concentration is left out to the training. Examples of the on-the-job training include but are not limited to job rotations and transfers, coaching and/or mentoring. On the other hand, off-the-job training examples include conferences, role playing, and many more as explained below in detail. Armstrong (1995) argues that on-the-job training may consist of teaching or coaching by more experienced people or trainers at the desk or at the bench. Different organizations are motivated to take on different training methods for a number of reasons for example; depending on the organization’s strategy, goals and resources available, depending on the needs identified at the time, and the target group to be trained which may include among others individual workers, groups, teams, department or the entire organization. Orientation is yet another training and development method. This involves getting new employees familiarized and trained on the new job within an organization. During this process, they are exposed to different undertakings for example the nature of their new work, how to take on their identified tasks and responsibilities and what is generally expected of the employees by the organization. They are further given a general overview of the organizational working environment including for example working systems, technology, and office layout, briefed about the existing organizational culture, health and safety issues, working conditions, processes and procedures. Coaching involves having the more experienced employees coach the less experienced employees (Devanna, 2003,). It is argued that mentoring offers a wide range of advantages for development of the responsibility and relationship building (Torrington et al. 2005). The practice is often applied to newly recruited graduates in the organization by being attached to mentor who might be their immediate managers or another senior manager. This however does not imply that older employees are excluded from this training and development methods but it is mainly emphasized for the newly employed persons within the organization. 10 Working conditions An attractive and supportive work environment can be described as an environment that attracts individuals into the health professions, encourages them to remain in the health workforce and enables them to perform effectively. The purpose of providing attractive work environments is to create incentives for entering the health professions (recruitment) and for remaining in the health workforce (retention). In addition, supportive work environments provide conditions that enable health workers to perform effectively, making best use of their knowledge, skills and competences and the available resources in order to provide highquality health services. This is the interface of the work environment and quality of care. Working environment can be divided into two components namely physical and behavioural components. The physical environment consists of elements that relate to the office occupiers‟ ability to physically connect with their office environment. The behavioural environment consists of components that relate to how well the office occupiers connect with each other, and the impact the office environment can have on the behaviour of the individual. According to Haynes (2008), the physical environment with the productivity of its occupants falls into two main categories office layout (open plan verses cellular offices) and office comfort (matching the office environment to the work processes), and the behavioural environment represents the two main components namely interaction and distraction. These components can further be divided in major attributes and operationalized in the form of different independent variables. These variables will be used for analysis of their impact on dependant variable. It is generally understood that the physical design of offices and the environmental conditions at work places are important factors 10 in organizational performance. According to business dictionary “Working conditions refers to working environment and all existing circumstance affecting labour in the work place, including: job hours, physical aspects, legal rights and responsibility organizational culture work load and training”. Gerber et al (1998, p.44) Defined working condition as: “working conditions are created by the interaction of employee with their organizational climate, and includes psychological as well as physical working conditions’’ Therefore, we adopt the definition of working conditions as follows: “Working conditions refers to the working environment and aspects of an employee’s terms and conditions of Employment”. In other side Productivity is a concept that depends on the context in which it employed. It does not have a singular definite criterion 11 measure or operational definition (Wasiams et. al, 1996). These definitions suggest that productivity is the measure of economic performance, as well as resource used to produce goods and services (Bernardin & Russell, 2008). But, Wasiams et. al, (1996) says this concept depends the context in which is employed and does not have operational definitions. Firms that derive their productivity advantage from firm-specific knowledge may wish to provide better working conditions in the hope that this would reduce worker turnover and minimize the risk of their productivity advantage spilling over to competing firms (Fosfuri et al., 2001). If non-monetary working conditions are associated with higher productivity, the employer should pay more for the added productivity of employees in order to not losing the employees. In facts, “as long as more than one employer offers good working conditions for a particular category of worker, employers may be forced to bid up their wages – possibly as high as the marginal value of the worker’s product. Whether such a positive wage differential exists is an empirical question. If one is found, it would represent a lower bound on the value of actual differences in productivity, bearing in mind that some offsetting compensating wage differential may also be reflected in the observations” (Gariety, 2001). The factors that contribute either positively or negatively to employee productivity are temperature, humidity and air flow, noise, lighting, employee personal aspects, contaminants and hazards in the working environment, types of sub environment. According to Yesufu (2004), the nature of the physical condition under which employees work is important to output, Offices and factories that are too hot and ill ventilated are debilitating to effort. There should be enough supply of good protective clothing, drinking water, rest rooms, toilets, first aids facilities etc. Both management and employees should be safety conscious at all times and minimum of requirement of the factories act must respect. This push for more productivity from public sector agencies is not a new phenomenon. These factors may be important; yet, believing that the attitudes and management styles of mid-level managers are what really influences employee productivity. Bornstein (2007) states that in organizations where employees are exposed to stressful working conditions, productivity are negatively influenced and that there is a negative impact on the delivery of service. On the other hand if working conditions are good, productivity increase and there is a positive impact on the delivery of service. 12 Job satisfaction Job satisfaction plays an important role for an employee in terms of health and well being (Kornhaurser, 2005) and for an organization in terms of its productivity, efficiency, employee relations, absenteeism and turnover). Job satisfaction is a complex variable and influenced by situational factors of the job as well as the dispositional characteristics of the individual (Sharma, 2006). It can be captured by either a one dimensional concept of global job satisfaction or a multi faceted construct capturing different aspects of job satisfaction that can vary independently. The idea that job satisfaction leads to better performance is supported by Vroom's (2004) work which is based on the notion that performance is natural product of satisfying the needs of employees. The study relating to the relationship between job satisfaction and job performance has now become a research tradition in industrial-organizational psychology. The relationship between job satisfaction and job performance has been described as the "Holy Grail" of industrial psychologists (Landy, 2009). Many organizational theories are based on the notion that organizations that are able to make their employees happy will have more productive employees. Over the years, scholars examined this idea that a happy worker is a productive worker; however, evidence is not yet conclusive in this regard. Empirical studies have produced several conflicting viewpoints on the relationship between job satisfaction and job performance. Strauss (2008) commented, "Early human relationists viewed the morale--productivity relationship quite simple: higher morale would lead to improved productivity". Bagozzi (2000) suggested that job performance leads to job satisfaction but not the reverse and indicated that autonomy and feedback from the job is significantly correlated with the performance. Keaveney (2003) found a non-significant correlation coefficient between job satisfaction and job performance. Manjunath (2008) found job satisfaction of agricultural scientists significantly correlated with their scientific productivity. Ravindran (2007) found that job satisfaction is non-significantly correlated with job performance. There are conflicting viewpoints on the relationship between job satisfaction and job performance. The proposed study is to synthesize the results of different studies relating to the relationship between job satisfaction and job performance. It is the general understanding 13 that job satisfaction is an attitude towards job. In other words job satisfaction is an affective or emotional response toward various facets of one’s job. A person with a high level of job satisfaction holds positive attitudes towards his or her job, while a person who is dissatisfied with his or her job holds negative attitudes about the job. Luthans (2005) quotes a comprehensive definition given by Locke. A pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience. Job satisfaction is a result of employees’ perception of how well their job provides those things which are viewed as important. Job satisfaction is also defined as reintegration of affect produced by individual’s perception of fulfilment of his needs in relation to his work and the surrounding it (Saiyaden, 2003). Hammer (2001) pointed out that job satisfaction represents a complex assemblage of cognition, emotion and tendencies. From the above definitions, it is clear that job satisfaction is a unobservarable variable. Therefore, there is no definite way of measuring job satisfaction. But there are variety of ways can be identified from the current literature. A questionnaire can be used to measure job satisfaction. In the questionnaire method, it is measured the satisfaction with the different dimensions or facets of the job and sum of all satisfactions scores will be taken as the overall job satisfaction. Further, job satisfaction has significant managerial implications. If the job satisfaction is high, the employees will perform better. On the other hand if the job satisfaction is low, there will be performance problems. In examining in outcomes of job satisfaction, it is important to breakdown the analysis into a series of specific set of variables. They are productivity, turnover, absenteeism and other effects (accidents, grievances, physical and mental health). The main objective of reward programs are attract qualified people to join the organization to keep employees coming to work and to motivate employees to achieve high level of performance. Though the rewards are provided by the organization, they are evaluated by the individual. To the extent that the rewards are adequate and equitable, the individual achieves a level of satisfaction. The rewards can be broadly categorized in to two groups, namely intrinsic rewards and extrinsic rewards. Intrinsic rewards are psychological rewards that are experienced directly by an individual. These are defined as rewards that are part of the job itself. (Gibson, 2001). It had also defined as psychological reward that is experienced directly by an employee (Freeman, 2002). Extrinsic rewards are provided by an outside agent such as supervisor or work group. These 14 rewards had been defined as rewards external to the job Pay, promotions; interpersonal relationships, status and fringe benefits are some of the examples for extrinsic rewards. Responsibility, achievement, autonomy, personal growth, challenge, complete work and feedback characteristics of the job are some intrinsic rewards. Performance very much depends on perception, values and attitudes. There appear to be so many variables influencing the job performance that is almost impossible to make sense of them. Performance is defined as a function of individual ability and skill and effort in a given situation (Lawler, 2004). In the short run, employee’s skills and abilities are relatively stable. Therefore, for the purpose of the study, the researcher defines the performance in terms of effort extended to the job of an employee. Effort is an internal force of a person which makes him or her to work willingly when employees are satisfied with their job and their needs are met, they develop an attachment to work or we say that they make an effort to perform better. Increased effort results in better performances. Summary and gaps to be filled There are many ways that the employers can use to keep their employees motivated to improve their performance but motivation is relative in that different employees have different needs. The HR department should try and know their employees at a personal angle to know what would motivate them. Research shows that employees who are well motivated give better results than those that are ill treated. Managers are urged to make the working conducive for all employees and have a detailed study of the workforce diversity. The bigger question is the extent of the motivation needed by the employees who keep graduating based on the hierarchy of needs making it hard to be motivated. 15 CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 3.1 Introduction This chapter provides information on the methodology will be used in the study, research design, population of the study, sample and sampling methods and study instruments used. It also explains data collection procedures and analysis. 3.2 Research Design Kothari (2008) defined descriptive research design as a process of collecting data in order to test hypothesis or to answer questions concerning the current status of the subjects under study. The advantage of this design according to many researchers is that being a scientific method, it helps minimize bias judgments and opinions, and also have factual data. It describes it as a study that is concerned with the characteristics of a particular group. This is because it allows the researcher to be flexible in data collection exercise. Descriptive research describes the phenomena as it is without manipulation. 3.3 Target Population According to Mugenda (2008) target population is an entire group of individuals, events or objects having common observable characteristics to which the research wants to generalize the results of the study. The target population will be 100 employees from the gas stations. Table 3.3 Target Population Population category Target population Percentage (%) Top management 10 10 Lower level management 20 20 Support staff 70 70 Total 100 100 Source: Author (2015) 16 3.4 Sample Size Babbie, (2012) defines a sample as a process of selecting a number of individuals for a study in such a way that the individuals selected represent the large group from which they were selected. According to Miller and Yang (2007) a sample size should be more than 10% of the target population. A sample of 30 % of the target population will be picked through stratified random sampling, hence a sample size of 30 respondents. Table 3.4 Sample size Category Target Sample size Percentages % Population Top management 10 3 10 Lower level management 20 6 20 Support staff 70 21 70 Total 100 30 100 Source: Author (2015) 3.5 Data Collection The study will use semi structured questionnaires for collecting data. The questionnaires will consist of both open ended and closed ended questionnaires. A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. The advantages of using questionnaires are; they are inexpensive, self-administering and can be made anonymous. The researcher personally administer questionnaire to each respondent in the department of central facilitation services. 3.5.1 Validity and Reliability A pilot study will be conducted prior to data collection in order to test the reliability of the research instrument. During the pilot study, the researcher will send 5 questionnaires to 5 selected respondents in the gas stations who will be asked to fill them so that the researcher can specifically know which questions are relevant to the study. Then the researcher will 17 identify questionnaire items that may appear unclear to the respondents and such items will be modified to make them clear thereby improving reliability of the answers. Validity is defined as the accuracy and meaningfulness of inferences, which are based on the research results (Walliman, 2005). Validity of an instrument is improved through expert judgment. As such, the researcher will seek assistance from the supervisor in improving the questionnaires. 3.6 Data Analysis The raw data will be organized, coded, edited and analyzed for accuracy, consistency and acceptability. Errors and omissions detected will be corrected. Quantitative data collected will be analyzed using Microsoft Excel and presented using of frequency tables, graphs and charts. Qualitative data will be analyzed using statements. 18 CHAPTER FOUR DATA ANALYSIS, PRESENTATION AND DISCUSSION 4.1 Introduction This chapter contains results and presentations of the findings. The study aimed at establishing the factors leading to drop out among female students in secondary schools in Kenya: a case study of Daadab Sub County. Pie charts, graphs and frequency distribution tables were used in presenting data where interpretations and conclusions were made. 1.gender Response Frequency Percentage (%) Male 25 83.3 Female 5 16.7 Total 30 100 Out of the total number of people working n the petroleum industry 83%of hem are male while 16.7% are female.this shos that petroleum idustry is highlydominatd by the male gender. 2. Age of people workin I the petroleum industry Age Frequency Percentage (%) 18-30 23 76.7 31-40 6 20 41-50 1 3.3 Above 50 none 0 Total 30 100 19 Most of the people woking in petroleum industry are between the age of 18 and 30. The reson for the high number of works in this group is tat people work thee after school. 3. Level of education. Response Frequency Percentage (%) Phd 0 0 Masters 0 0 Degree 1 3.3 Diploma 1 3.3 Secondary school 27 90 Primary school 1 3.3 Total 30 100 There are no Phd and masters holders working in petroleum industry. One degee holder who is the head. The one dipomer person in every 30 personell here 27people working in petrol industry whos education is up to secondary school and on primary school we have one worker. 4.How many years have you been working in the petrol station Number of years Frequency Percentage (%) 1 to 5 22 73.3 6 to 10 6 20 Over 10 years 2 6.7 Total 30 100 20 The parents and guardians that are living with an annual income of 20000-40000, 4000080000, 80000-160000 all stand at 20% and those who earn 160000-320000 and at more than 320000 are both at 12.5% 5. Job designation in the organisation Response Frequency Percentage (%) Top management 1 3.3 Lower managment 3 10 Support staff 26 86.7 Total 30 100 The birth order of most of the respondents stood at third born with 58%, first born with 8% and second born with 17 % and other number in the birth order had 42%. SECTION B: Teacher Attitude 9. . Does the company give rewards for improvement on performance? Response Frequency Percentage (%) Yes 2 6.7 No 28 93.3 Total 30 100 Most of the respondents say that the teachers attitude does not at all affect the drop out rates in daadab but 42% of them are of the opinion that the teachers attitude affect the dropout rates. To what extent does this affect the performance you give? 21 Response Frequency Percentage (%) To a very large extent 4 13.3 Medium extent 12 40 Less extent 14 46.7 Total 30 100 The research shows that those who dropout because of the teachers attitude do it to a large extent with a rating of 60% and those with a medium extent as well as less extent stood at both 20 %. Section C: Does the level of training affect performance? Response Frequency Percentage (%) Yes 26 86.7 No 4 13.3 Total 30 100 The response shows that 58% of the girls drop out as a result of the distance that they cover to get to the schools. If Yes in question 9 above to what extent? Response To a very large extent Frequency 20 Percentage (%) 66.7 Medium extent 6 20 Less extent 4 13.3 Total 30 100 22 The distance covered by the students to get to their offices stood at 35% while to medium extent and less extent stood at 30% and 20% respectively. Section D: How would you describe your working conditions? Response Frequency Very good 2 Good 18 poor 10 Very poor 0 Total 30 Percentage (%) School based factors were found to lead to drop out rates at 67% while the other respondents were of a contrary opinion with 33%. If yes to what extent does school based factors school lead to drop out among female students in secondary schools? Response Frequency Percentage (%) Very high extent 40 50 High extent 20 25 Low extent 20 25 Total 80 100 Those who were of the opinion that school based factors led to drop out rates at a large extent were at 50%, while those of high as well as low extent stood at both 25%. 23 APPENDIX I QUESTIONAIRE Introduction This questionnaire is intended to collect data on the challenges affecting employee performance in the petroleum industry in Kenya. The information you give will be treated with utmost confidentiality and will be used for academic purposes only. Kindly respond to all the questions in the questionnaire as honestly as possible. Section A: General information 1. Gender: Male [ ] Female [ ] 18- 30 years [ ] 30 - 40 years [ ] 41 – 50 years [ ] Over 50 years [ ] PhD [ ] Masters Degree [ ] Degree [ ] High school [ ] Other [ ] 2. State your age 3. Level of education 4. . For how many years have you been working at any gas station? 1 - 5 years [ ] 6 - 10 years [ ] Over 10 years [ ] 5Your job designation in the organization Top management [ ] Lower Management [ ] Support staff [ ] 24 Section B: Reward Management 6. Does the company give rewards for improvement on performance? Yes [ ] No [ ] 7. To what extent does this affect the performance you give? Greater extent [ ] Lesser extent [ ] Not at all [ ] 8. How in your opinion does this affect your performance? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Section C: Training standards 9. Does the level of training affect performance? Yes [ ] No [ ] If Yes in question 9 above to what extent? Greater extent [ ] Lesser extent [ ] Not at all [ ] 12. In your own opinion, explain the effect of training standards in the performance of an employee? ………………………………………………………………………………… ………………………………………………………………………………. 25 Section D: Working conditions 13. How would you describe your working conditions? Very good [ ] Good [ ] Poor [ ] Very poor [ ] 14. To what extent does the working condition affect your performance? Greater extent [ ] Lesser extent [ ] Not at all [ ] 15. In what ways does the working condition affect your performance? ………………………………………………………………………………………… …………………………………………………………………………………… Section D: Job Satisfaction 16. Are you satisfied with your job? Yes [ ] No [ ] 17. If the answer is yes, to what extent does job satisfaction affect your performance? Greater extent [ ] Lesser extent [ ] Not at all [ ] 18. In your own opinion explain how job satisfaction affects your performance? ..………………………………………………………………………………………… ……………………………………………………………………………….................. Thank you for taking your time to answer this questionnaire. 26 27 28
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