The Effect of employee remuneration on organizational performance in the hotel and hospitality industry in Kenya

Abstract

Employee remuneration refers to the reward or compensation given to employees for their work performance, for services rendered or for playing a role towards achievement of organizational objectives.It is also widely referred to as employee compensation.Its not just about reimbursing employees but also providing certain benefits that come with the job.Remuneration provides basic attraction for an employee to perform their job efficiently and effectively. Remuneration constitutes an important source of income for employees and determines their standard of living.It has an effect on the employees productivity and work performance.Thus the amount and method of remuneration are very important for both management and employees. Organizational performance on the other hand may refer to whether or not an organization is achieving its objectives.These objectives are in terms of profitability, productivity and growth amongst others. For anorganization to achieve their objectives they must have in place a sufficient and efficient human resource team.This team which comprises the employees of an organization determines how well the organization performs.It is widely suggested in human resource circles that employee remuneration affects the performance of the employees and that of an organization as whole.This relationship remains largely untested especially in developing countries like Kenya This research will involvee a study into the effects of employee remuneration on the organizational performance of five star hotels in Kenya.It will seek to establish if this relationship is indeed factual and how organizations can use it to their advantage.Data will be collected from a sample of five star hotels in Nairobi, Kenya.The hotels will be chosen on the basis of their size and performance.The purpose of this research will be to establish the effect pay incentives and other forms of remuneration on employee performance and consequently organizational performance.