EFFECTS OF CORE VALUES ON THE PERFOMANCE OF

MANUFACTURING FIRMS IN VIHIGA COUNTY

PRESENTER: MUHONJA ANNE

INDEX NOMBER: 7410040615

INSTITUTION: THE KISUMU NATIONAL POLYTECHNIC

SUPERVISOR: MR. STEVE OUKO

A RESEARCH PROJECT SUBMITTED TO THE KENYA

NATIONAL EXAMINATION COUNCIL IN PARTIAL
FULFILLMENT FOR THE AWARD OF DIPLOMA IN
BUSINESS MANAGEMENT
NOVEMBER 2021
DECLARATION
I Anne Muhonja declare that this research project is my original work and has not been presented for a
diploma in any other institution or examination body.

Signature: ……………………… ……………………………

Muhonja Anne Date

This research project has been submitted to Kenya National Examination Council with the approval of my
supervisor.

Signature supervisor ………………………

…………………… Date

i
DEDICATION
This project is dedicated to my family members and friends for their encouragement and support
throughout the period of my study.

ii
AKNOWLEDGEMENT
I am very grateful to the almighty god for giving me the will and strength to seem through the three years
at the polytechnic. I am indebted to my project supervisor for wise guidance throughout the writing of my
project, special dedication to all other lecturers in the department of business studies for the dedication in
teaching us through the years, also indebted to my parents, siblings and friends for their patience,
understanding and all the encouragement they gave me when I was in need of it. All mentioned my God
bless you abundantly.

iii
ABSTRACT
The study investigated the effects of core values on the performance of the manufacturing firm in Vihiga
County. This study particularly ought to solve problems associated with core value implementation and
usage in the firms. The role of core values in a firm was constantly and continuously discussed whether
they actually exist and how they have an effect on the performance of manufacturing firms. As many
firms are faced with problems of performance core value was consider to be important for solving the
problems. The study was necessitated by the study of the objectives which are; to assess the effects of the
core value on the performance of manufacturing firms, to identify the core values in manufacturing firms,
to I identify the indicators of performance of manufacturing firms and to establish the relationship the
relationship between core values and performance of manufacturing firms. The research questions
guiding the study were; what are the effects of core values on performance? What are the core values of
the manufacturing firm? What are the indicators of performance of manufacturing firm? And what is the
relationship between core values and performance of manufacturing firm? The study was conducted
through descriptive cross section survey design. The data being collected during the period of august to
November through the use of questionnaire from a sample size of 50 of which only 25 responded. Data
was analyzed using frequency and percentage. The data were presented using tables and charts, the study
found out that the majority of respondents were male who have worked in the firm for a period of time
and have hence gained experience and knowledge, the findings showed that the respondents were well
educated thus knowledgeable to work in the firm. The study also established that most f the respondents
are middle aged. The study concluded that the firms core values play a significant role in improving the
performance of firm the hence provided a competitive advantage over other firm in the market. The
researcher recommended that the manufacturing firms to should continuously carry out audits to check
whether the core values in the firm are still relevant and are shared between organization members since it
has been established that it influences productivity which in turn influences performance of the firm

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Table of Contents
DECLARATION..........................................................................................................................................i
DEDICATION............................................................................................................................................ii
AKNOWLEDGEMENT.............................................................................................................................iii
ABSTRACT...................................................................................................................................................iv
CHAPTER ONE..........................................................................................................................................1
1.1 BACKGROUND OF THE STUDY......................................................................................................1
1.1.1 CORE VALUES.........................................................................................................................1
1.1.4. Area of study.............................................................................................................................5
1.2 Statement of the problem...................................................................................................................5
1.3 Study objectives.................................................................................................................................6
1.3.1 The aim of the study...................................................................................................................6
1.3.2 Objectives of the study...............................................................................................................6
1.4 Research questions............................................................................................................................6
1.5 Significance of the study...................................................................................................................6
1.6 Scope of the study..............................................................................................................................7
1.7. Limitation of the study......................................................................................................................7
CHAPTER TWO.............................................................................................................................................8
2.1. Literature review...............................................................................................................................8
2.2.1 Management theory........................................................................................................................9
2.3. Empirical study...............................................................................................................................10
2.4. Research gap...................................................................................................................................11
2.5. Conceptual frame work...................................................................................................................12
CHAPTER THREE...................................................................................................................................13
METHODOLOGY....................................................................................................................................13
3.1 Research design...............................................................................................................................13
3.2 Target population.............................................................................................................................13
3.3 Sample design..................................................................................................................................13
3.4 Sample size......................................................................................................................................13
3.5 Data collection.................................................................................................................................14

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 3.6 Data validity....................................................................................................................................14
3.6.1 Data reliability..........................................................................................................................14
CHAPTER FOUR: RESULT, DATA ANALYSIS AND DICUSSION....................................................15
4.1 INTRODUCTION...........................................................................................................................15
4.2Findings............................................................................................................................................15
4.3 Demographic characteristics............................................................................................................16
4.3.1 Age of the respondents.............................................................................................................16
4.3.2 Gender......................................................................................................................................18
4.3.3 Level of education....................................................................................................................19
4.3.4 Duration worked at the organization.........................................................................................20
4.4 Core values..................................................................................................................................22
4.4.1 Shared core values of the manufacturing firms.........................................................................22
4.4.2 Awareness of core values by employees...................................................................................24
4.4.3 The extent to which core values define what is important in the firm.......................................25
4.5 Performance of the manufacturing firm.......................................................................................27
4.5.1 Parameters used to establish performance.................................................................................27
4.5.2. Rating of performance of manufacturing firms in the last 3 years...........................................29
4.5 Relationship between core values and performance........................................................................30
4.7 Conclusion.......................................................................................................................................31
4.8 Recommendation.............................................................................................................................32
REFERENCE............................................................................................................................................33
QUESTIONNAIRE...................................................................................................................................37

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CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Most value statements are bland and far from being harmless as executives assume that they towards
many companies insincerity when attempting to attain common shared core values throughout a firm
never the less core values have become a great matter of interest for many companies and different
industry (Thomason 2004) Collins and Porras (1994) research suggest that organization will share deeply
held core-values outperform the completion on the market as well as demonstrate the ability to coop with
change and overcome setbacks. Although being very critical of many companies approach towards core-
values Lencioni (2002) still agreed for great opportunities from attaining strong share core-values within
a firm this give way to clarify the firm identity and set the company apart from competitors as well as
providing a rallying point for employees. This study derives from the interest on how and why firms tend
to formulate and implement core-values and furthermore what potential challenges might be waiting
during this process (Thornbur, 2003) core-values can provide companies and firms with cohesion and
common understanding in an increasingly net worked world. Every organization is influenced by the
existing core values which vary from organization to organization. Researchers like Schein (2004) and
Alvesson (2003) concluded that the productivity of an organization is greatly affected by its core values.
When you walk in different companies one will experience a certain atmosphere, style, personality a feel
that is unique to it, this is as a result influence how employees relate with one another and the clients.

1.1.1 CORE VALUES

Accountability

This means taking responsibility of once action. Accountability is essential for an organization and for
society without which is difficult to get people to assume ownership of their own actions because they
believe they will not face any consequences. Employees demonstrate accountability by providing honest
and construct feedback and also asking for assistance when needed.

TEAMWORK

This is the process of working collaboratively with a group of people in order to achieve a goal. Team
work means that people will try to cooperate using the individual skill and provide constructive feedback.
The firm should have cleared direction, open an honest communication; define roles and common goals
in order to have an effective team work.

INTEGRITY

This means being honest and having strong moral principles. A person with integrity behaves ethically
and does the right thing even behind closed doors. Employees show integrity by being dependable and
following through on commitment. Being open and honest when communicating with others, holding
yourself accountable and owning up to your shortcomings

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RESPECT

This is a way of treating or thinking about something or someone. Respect is shown by being polite and
kind, by listening to what other person has to say, also by listening and encouraging in each other opinion,
validating other people’s contributions, avoid gossip and other unprofessional behavior.

INNOVATION

This is coming up with something really new and a big idea. Innovation often starts with something that
annoys you personally and is a relevant to you something you’ve personally really want to change
because you need to. Its purpose i8s to create a business value that is incremental improvement to existing
product the creation of entirely new product to and service or reducing cost.

PROFFESIONALISM

This involves being reliable, setting high standards and showing that you care about every aspect of you
job, it’s about being industrious and organized and holding yourself accountable for your thoughts
towards an action. It involves commitment and confidence, responsibility and dependability, honesty and
ethics and appearance and professional presence.

CORE VALUES ELEMENTS

Deciding on values

The firm decides to choose values and let go some other once, the management team must decide what
important, reliable core values with no mistakes is or new and trendy core values the choice should be
made clear. Some core values have a bigger impact than others so the firm should be keen on deciding on
the core values to use the benefit of these elements helps the firm to choose the best core value. The
challenge of this element is that the firm might let go of important core value while deciding.

Describe behavior behind your core values

Core values can mean many things if you want our value statement to drive employees action. It is of
importance that firm put of clear descriptions of the expected behavior. The benefit of this element is that
it encourages value statement to drive employee action and put a clear description of the expected
behavior. It encourages employee performance behavior in the spirit of ownership. The challenge of this
element is that it is difficult to describe behavior since the core values varies and some carry more
meaning than others.

Make your values simple to understand and remember

Core value should be simple and easier to remember in the everyday working life of employees and help
guide their decision features.

Understandable and practical when values are simple and easy to remember, provides standard of
competence and morality relatively permanent more central to the core value of the firm.

2
Giving value-based feedback

Once values are defined, agreed upon and well defined in terms of expected behavioral patterns it then
signifies time to adjust the firm behaviors accordingly. It requires a high level of consciousness; the
management has to learn to notice the behavior that fits the values and the type that don’t. Employees and
not just management should give regular feedback to each other about which conclude actions conform to
the values and which once do not. The benefits of these elements are that employees learn how to give
and receive feedback. The other benefit is that the firm is able to move its organizational culture towards
the new values. The challenge of this element is that not everyone is able to learn and notice behavior.
Another challenge is the constant change of behavioral patterns towards formations of core values.

Keep you values unique

An effective firms core values should be unique to the companies and employee experience. This enables
firms to hire people that think the same unique way and who will contribute to the high performance of
the firm. The benefits of these elements are that it creates a performance driven culture helping the
management retain top talented employees. It also provides stability and satisfaction in the organization.
It helps the firm come up with a brand which is unique. It also promotes growth that is work flow
becomes more smooth when everyone knows the end goal based on the core values which are unique to
the firm. The challenge of these elements is that some of the core values are strongly attached to its
founder who provides final say which is not a good thing for the business. Another challenge is that it is
used as an excuse for bad behavior as an employee and over looks contradictions.

Indicators of performance

Growth in revenue

This is the increase or decrease in affirms sale between two periods. It demonstrate the degree to which a
firms revenue as grown or shrunk overtime. It shows how well a company is able to grow itself over a
period of time. It is important because it provides an indicator of the health of the business sales and it
assesses how successful a business is at selling its products.

Operational cash flow

This is measure of the amount of cash generated by a company’s normal business operations. It
determines the financial success of a business activity. It relates to a firm main business activity such as
selling and purchasing signing and purchasing the operational cash flow.

It shows how effectively a business can handle its activities in order to boost its performance.

Number of customers retained

This is the ability of a firm to turn customers into the repeated buyers and prevent them from switching
the competitor. It is the engaging of existing customers to continue buying products from your business.
Customer retention measures how successfully a company is in terms of its performance and growth. The

3
retention of customers is easier and cost effective than to acquire new ones since retained customers buy
more often and spend more than newer customers.

Employee’s satisfaction

It describes how satisfied employees are with their work in the firm. It determines the health of the firm.
It retains employees who are talented and deserving for long term growth and success of the firm. It also
ensures good behavior of employees in the firm. Satisfied workers are motivated to work hard hence
boosting the firms performance.

Order fulfillment time

It refers to a firm proses from there time it receives the order to the moments it’s delivered to the
customers. It varies from one firm to another, it encourages customers to buy the firms product, and it
also built a good reputation of a firm and also helps in generation of more sales hence improving the
firm’s growth and performance.

Percentage of market share

It represents the firm’s total sales that are earned over a specific time period.

It aids a company or a firm in its revenue growth.

It helps a firm to expand its shares in the market, growth or loses in market shares can have a significant
impact on a companies or firms performance depending on a firm’s condition.

Relationship between core values and performance

When employees follow the values that are most important to the business performance can improve as
result. Employees who understand and believe in the firms core values can have a clear understanding of
their own roles. They can know what the company is trying to achieve and how they can contribute. They
can know the values and attitudes they need to adapt to perform at their best. Core values improve
employee engagement which is a measure of hoe committed, energetic and focus employees are in their
approach to work. Engagement benefits may be even greater where it involves firm performance, how a
firm core values align in the behaviors of workers in the job, this is closely link to employee engagement
both of which intern job performance. Measuring important that a candidate or employees places on
different5s values can offer real insight into how likely they are to be motivated and the engaged at work,
their preferred ways of engaging with others and how they can be based developed. Values are distinct in
that no one value is more predictive performance than another. Of greater importance is how much a
person’s own value fit that of their profession manager, team and organization. The more employees
value align the livelier the firm. The importance of core value depends on the outcome measured by
performance.

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1.1.4. Area of study
The research will be carried out in Vihiga County which is located in the western region of Kenya. Vihiga
County has 5 constituencies and 25 electoral wards. Vihiga County has a population of 500000 people
according to the censor’s document. It consists of more women than men. May economic activities are
cottage industries, farming, horticulture, wholesale and retails and manufacturing industries. Vihiga
County is not indulged with many industrial activities. There exist a few that include, Mudete tea factory
in Sabatia division, a jiggery in Luanda and nine coffee pulpy factories trotted in all division of the
county. Other industrial activities include the informal Jua Kali. Most industries in the county are yet to
employ the latest industrial technologies example Mudete tea factory who depends on wood fuel as a
source of energy. There are 2233 business premises in the county dealing in domestic household’s goods.
Other manufacturing firms in Vihiga County include Tsian firm industry and trading company. It deals
with tiles and flooring display needs. Dervos forged steel valve manufacturing company limited and many
other industries.

1.2 Statement of the problem

Existing theories discuss the meaning of values and how these can be applied in a firm’s perspective.
Many times an attempt of differentiating and categorizing core values are made trying to distinguish the
mean behind why firms work towards establishing common values and what implications these might
have on its performance. A lot of the research is emphasized on the gains that can come out of successful
implementation of core values throughout the firm. Discuss an appropriate way of establishing
Implementing and fully recognizing values with all units of a firm. The strive towards the common core
values should be shared and believed in a affecting the daily behavior at work and to be integrated into all
decisions processes and business strategy as something firms aims to achieved. It is argued that values
can contribute as a foundation for firms something to support the entire business; values can also enable a
clarification of firm’s culture. However some assertion do exist that claims several firms to give meaning
to their values resulting in them not becoming integrated throughout the organization. However existing
research does not discuss the possible connection between potential challenges of communicating and
implementing core values. Meaning what potential effects core values have on performance of the firm.
To provide a deeper understanding of possible obstacles and challenges Firms might run across when
working towards a common platform f value taking effects on how performance might be affected after
this process. Therefore this study aims to contribute to former study to provide a deeper understanding of
possible obstacles and challenges organizations might run a cross when working towards a common
platform of values taking in the effect of how performance might be affected by the process.

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1.3 Study objectives
1.3.1 The aim of the study
To assess the effects of core values on performance of manufacturing firms in Vihiga County

1.3.2 Objectives of the study

i. To identify the core values in manufacturing firms
ii. To identify indicators of performance of manufacturing firms
iii. To establish the relationship between core values and performance of manufacturing firms in
Vihiga County

1.4 Research questions

i. What are the effects of core values on the performance of manufacturing firms?
ii. What are the core values of the manufacturing firm?
iii. What are the indicators of performance of manufacturing firms?
iv. What is the relationship between the core values and performance of manufacturing firms?

1.5 Significance of the study

The findings of this study would be of much importance to;

County government of Vihiga

As a who intend to improve on the lean practices within their local government set ups with aim of
benefiting from the entire attributes associated with application of the lean practices

The manufacturing firms

That would be willing to increase their efficiency and effectiveness in production and provide a criteria to
their customers, general stakeholders which will lead to minimal wastage, reduce lead time and less
rework of their products in order to attain high performance of their firm

Student studying the research

The student will use the findings of the research to improve on their knowledge of the business world

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1.6 Scope of the study
The study covers and is limited to Vihiga county, target population being mainly the staff undertaking
manufacturing operations in the county, thus the ability to generalize the entire Vihiga county staff and
other counties in Kenya within the same context is severely limited

1.7. Limitation of the study

During currying out the research the following limitations were anticipated. The research was time
consuming on the part of the student. The research process was a costly a fare the response of the firms
was slow. This research was mainly focused on how core values can influence business activities of a
firm internally meaning how core values can influence accounts performance therefore the research was
limited on how values of an organization can affect the firm internally.

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CHAPTER TWO
2.1. Literature review
Core values are essential part of the culture of the manufacturing firm according to Oomkes (2000) the
firm’s culture basically consist of core values and is formed through communication which plays an
important role in implementation and activation process of core values in the firm.

Blanchard and Oconner (1998) described management based on core values by differentiating three faces
of core values, first, formulating the core values, second communicating the core values and third
implementing the core values in the day-to-day firm. The more the core values are exposed the Core
values are essential part of the culture of the manufacturing firm according to Oomkes (2000) the firm’s
culture basically consist of core values and is formed through communication which plays an important
role in implementation and activation process of core values in the fir Blanchard and O’Conner (1998)
described management based on core values by differentiating three faces more the employees will be
invited and inclined to internalize them. Kinds (2000) for firms it's of great to show their operations are
based on specific clear core values and they also operate according to their reasons being that negative
publicity will definitely harm their performance. Scientist have made many attempts to describe what core
values are and their functions and importance in manufacturing firms on Penhusen (2000) Collins and
Porras (1996) have outlined the importance of core values in the manufacturing firms they also have
importance to those working in the firm following Van Luisk and Sehilder (1997) core values are related
more to what the firm wants to achieve in terms of the performance

2.2. Theoretical Review

This chapter deals with relevant theories. The Masor theories include Environmental Dependency theory
which seek to explore the impact of the environment and the employee association in regards to
representing the collective interest of their members whose behavior are mostly affected their values, it
emphasizes that value context matter in the functioning of an organization and the importance of the Tsai
(2005) environment for understanding the organization.

Social Norm theory Miller and M.C. Faland (1991) it describes situations in which 8individuals
incorrectly perceive the attitude and behavior of workers and employees to be different when in fact there
are not

Open system theory according to Loren (1994) it has dominated as a frame work for managerial behavior
and organization analysis. It focuses on value structure as a significant tool for the efficient achievement
of organizational goals, it reflected the belief that all organization are unique in past because of the unique
values that govern operations.

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2.2.1 Management theory
Value as a general concept is well known term but have numerous explanations when attempting to
define concept. A value is enduring belief that a specific mode of conduct or end state of existence is
personally or socially preferable to an opposite or converse mode of conduct or end. State of existence
(Rokeach, 1973)

Hofstedos (1980) definition of a value is a broad tendency to prefer curtains state of affair over others.

Hofsted (1998) in a later published article further tries to distinguish a difference between value and
attitude. In firms perspective within organizations are defined in several ways such as core values,
cooperate values and organizational values this have been investigated by numerous researchers listed by
Agle and Cadwell (1999) there are different ways of experiencing and categorize as work value which are
applied to explain the effect values have an individual and organization

Core values are the values deep rooted in the organization which have been presented for a long time
representing the heart of an organization (Thornbury, 2003)

Maibasic and BIcic (2012) defines values as stable and constant construct referring to the work of Collins
and Porras (1996) stated that core values should not depend on situation factor.

9
2.3. Empirical study
Core values have been studied and written about extensively a general understanding of the subject has
been drown Agle and Cadwell (1999) confirms the general experience that a substantial amount research
can be found within the subject of organization value

Maibasic and Bacic (2012) argues that core values can be distinguished based on the general concept of
values from organizational behavior Atkinson (2003), Escrocil and Leichty (1998) values to be visible in
every act of communication internally and externally as well as to prevent the perception of
organizational brand, the vision and mission statements.

Several theories have argued that high organizational performance can be linked to understanding of core
values Deal and Kennedy (1982)

Posner and Schimdt (1993) values are also considered to create an unfiled workforce working together to
shape a climate of growth and change.

Humble (1994) however while working towards implementing corporate values are often described as
rather abstract

Thomson (2004) and Grof (2001) further discussed how these core-values should be communicated
through the organization and furthermore how the communication should be adopted to the different stage
of a company’s life cycle

Organizational performance as an outcome contributed by core values are discussed in the perspective of
how well organization can align core values with the business activities Deal and Kennedy (1982)
described how the need for an alignment and unification of the entire organization often are a reaction
driven by performance of the organization.

Lencion (2002) argued that companies or firms do not actually know they establish core values and
therefore have them by the wrong means

The way companies handle core values further on been argued by Williams (2013) who suggested many
times aroused by companies any in accordance with the environmental and the circumstances in which
business are conducted within, portrayed as banal statements in Mottos and Slogans. Core values are an
area that has not been researched on especially for Kenyan based organizations. Notably, literature in the
area of core value reveals no clear pattern of effects and relationship between and core values and
performance outcome such as, product quality, customer satisfaction and organizational performance,
Jones (2007) established the basis of this study’s objective that sought to establish the correlation of
organizational values and employee’s performance this study will offer findings on such a relationship
based on empirical evidence from this case study. To remain competitive and to achieve sustainable
competitive advantage, organizations should constantly evaluate their core values and practices to ensure
they are aligned with their organizational strategies and business strategies. Research in the area will of
core values would justify the need to assess the leadership, management style and how far an organization
employee behavior matches its core values and how this affected on their performance

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2.4. Research gap
The study was to examine the process of formulating the core values, implementing within an
organization and its effect on the continuous performance of the firms in the market and what possible
challenges that companies might be faced with during their operations. This involves establishing shared
values as well as reassuring the core values to be integrated into all business activities to acquire a deeper
understanding within the research field and enables comparisons between relevant theories to investigate
how the process has been carried out and what challenges was met from implementing to the ongoing
integration and communication of core values within the organization.

Challenges of organizations in the adopting value system along with a changing environment, describe
the complexity of creating a shared value through an entire organization emphasizes on what potential
affects an implementation of shared values and how the process of core values as well as how
performance is affected throughout the organization.

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2.5. Conceptual frame work
The study was guided by the following conceptual frame work which was used to explain the relationship
between core-values and performance of manufacturing firms.

Core values Indicators of performance

Integrity Customer retention

 Team work
Employee’s satisfaction
 Transparency
 Respect Customer’s satisfaction
 Professionalism
Employee’s engagement
 Innovation
 Accountability Quantity
 Impartiality
Quality

How core value affect performance

Help firms fulfill its goals

Guide employees action

Affects how organization works

Make production improvement effective

Makes product and service more accessible

Helps educate customers/boost customer’s loyalty

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CHAPTER THREE

METHODOLOGY
3.1 Research design
Research design is defined as a broad plot that strategizes the means used in the collection and

Analysis of data and this must be harmonized with the objectives of the study. The research

Design was a case study. A case study method allows the researcher to go into details in context

and holistically. It is a way of organizing educational data and looking at object to be studied

As a whole it brings about a deeper insight and better understanding of challenges faced by

Employees in regards to the core values of the organization and how it affect its performance

There are three different elements of how science in business and management studies should be executed
reliability, reliability and validity. Reliability intends to measure weather data have been collected in a
trustworthy way. Reliability is the possibility being able to conduct the same process once again and
thereby be dependent on the description of methodology in detail. Validity intends to measure the
relevance of data collection in the specific study and thereby the level of comfort ability between studied
data from questionnaire and theoretical framework. To investigate the area of values in a firm a case
study has been performed, two different models are used together to test whether there is a relation
between core values and firms performance

3.2 Target population

The population of this study consists of selective members of the manufacturing firm’s categories of
member organizations from manufacturing firms

3.3 Sample design

A sample design which was random was employed, it covered a target population. Simple random
techniques were used to select the organizations which constituted the sample simple i.e. picking
individuals from the firms or using random members. It enabled the researcher obtain unbiased data

3.4 Sample size

This is the procedure used in gathering people, things to study; it is a process of selecting a number of
individuals and objects from a target population. The selection group contains elements representing the
characteristics found in the entire group. The sample size for the study was about 50 people who were
selected randomly from all the firms and distributed proportionately the choice was based on the
assumption that they are well adverse with their firm’s core values.

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3.5 Data collection
Primary data was collected using a semi structured questionnaire. The questionnaire was divided into two
parts; the first part captured demographic data while the second part contained questions on the member
perception of the core values on the firm’s performance. The respondents were members of the firms; the
questionnaire will allow collection of data from a large sample

3.6 Data validity

In this study multiple sources of evidence were used as a way to ensure effectiveness and validity.
Validity of measuring instrumental techniques will be established by pretesting questionnaire. The study
assessed easy use of the research instrument. Sensitive and biased item would be identified and modified
to obtain validity of the information presented

3.6.1 Data reliability

The study applied systematic questions in the questionnaire to show reliability of the data to be collected
from firms. The researcher will employ a test-to-test technique which the instrument of research will be
administered more than twice the same subject to ensure the desired result is obtained.11

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CHAPTER FOUR: RESULT, DATA ANALYSIS AND DICUSSION
4.1 INTRODUCTION
The aim of this study was to investigate the effects of core value on the performance of manufacturing
firms the purpose of this chapter is to analyze and present the result of the data

4.2Findings
Response rate

In carrying out the research study, the targeted population was 50 staff to distribute questionnaire to but
only 25 were available to give the questionnaire to. The achieved response rate for the research study was
at 50% which according to Mugenda and Mugenda (2003) is adequate for data analysis and reporting of
findings

The table below shows how the respondents from the manufacturing firms responded in the research
study

Table 1: respondent analysis

CATEGORY OF STAFF FREQUENCE PERCENTAGE RESPONSE (%)

Top management 2 8
Middle management 8 32
Low level staff 15 60
Total 25 100

Source field work, (2021)

Figure 1: Respondent analysis

15
 70%

60%

50%

40%

30%

20%

10%

0%
top management middle management low level staff

As shown in the table above 100% response was not achieved, it shows that 8% response was from top
management, 32% from middle management and 60% from the low level staff , conclusion is drawn from
the 25 responses which was adequate for drawing conclusion on the area of research.

4.3 Demographic characteristics

The basic characteristics of the respondents for example gender, age, highest level of education as well as
duration worked in the organization among others are described in the section. To explore these factors,
an analysis of frequencies was undertaken after which the output was illustrated as shown below.

4.3.1 Age of the respondents

The respondents were asked to state their age when filling the questionnaire, the table below shows the
response of 25 respondents from the manufacturing firm.

Table 2: Age distribution

AGE FREQUENCY PERCENTAG (%)

18-20 0 0%
20-30 9 36%
30-40 8 32%
40-50 6 24%
50 Years and above 2 8%
Total 25 100%

Source: Field work (2021)

16
Figure 2: Age distribution of respondents

40%

35%

30%

25%

20%

15%

10%

5%

0%
18-20 20-30 30-40 40-50 50 years and
above

As depicted by the table 36% of respondents were aged between 20-30 years, 32% of the respondents
were aged 30-40 years, 24% of respondents were aged between 40-50 years and 8% of respondents were
50 years and above. There no respondents aged between 18-20 years. This shows that the organization
has a younger work force that has capabilities of promoting and steering the existence of desired core
value at the firms and also a workforce that is performance oriented.

17
4.3.2 Gender
The respondents were asked to state their gender when filling the questionnaire; the table shows the
response of 25 respondents from the manufacturing firm

Table 3: Gender distribution

GENDER FREQUENCY PERCENTAGE

Male 15 60%
Female 10 40%
Total 25 100%
Source: Field work (2021)

Figure 3: Gender distribution

Gender

40% Male
Female

60%

As shown by the table 60% of the respondents were male workers while 40% were female

Respondents, this shows that the organization has a gender balanced workforce who are capable

Of promoting and steering the existences of core values and are performance oriented.

18
4.3.3 Level of education
The respondents were asked to state their level of education when filling the questionnaire. the table
below shows the response of 25 respondents from the manufacturing firms;

Table 4: Level of education

LEVEL OF EDUCATION FREQUENCY PERCENTAGE

University 13 52%
Collage 8 32%
Secondary 4 16%
Total 25 100%

Source: Field work (2021)

Figure 4: Level of education

60%

50%

40%

30%

20%

10%

0%
University Collage Secondary

As depicted by the table 52% of the respondents are university graduates, 32% of the respondents are
collage graduates and 16% of the respondents have reached secondary level. The organization has an
educated workforce that has capabilities of promoting the existence of the core values and a workforce
that is performance oriented.

19
4.3.4 Duration worked at the organization
The respondents were requested to state the time or period in years in which they had served at the
manufacturing firm. The aim was to inquire about the period that each respondent involved in the study
had shared values in the firms to evaluate whether the respondents had stayed in the firm well enough to
not only know the core values but to acknowledge them and know their significance.

Table 5: Duration worked at the manufacturing firm

DURATION FREQUENCY PERCENTAGE

Less than 1 year 2 8%
1-3 years 6 24%
4-7 years 9 36%
8-11 years 5 20%
More than 11 years 2 12%
Total 25 100%

Source: field work (2021)

20
Figure 5: Duration worked at the organization

40%

35%

30%

25%

20%

15%

10%

5%

0%
less than 1 year 1-3 years 4-7 years 8-11 years More than 11
years

8% of the respondents have worked for less than1 year, 24% of the respondents have worked for l to 3
years, 36% of the respondents have worked for 4 to 7 years, 20% of the respondents have worked for 8-
11 years and 12% of the respondents have worked for more than 11 years in the organization. Majority of
the employers are long serving in the firm.

21
4.4 Core values
4.4.1 Shared core values of the manufacturing firms
The objective of the study was to determine the core values of the firm and how it influenced the
performance, the respondents were asked to state the core values which are the primary source of
performance, the response of 25 respondents were shown in the table below;

Table 6: Share core values of the manufacturing firm

CORE VALUE FREQUENCY PERCENTAGE

Integrity 6 24%
Team work 10 40%
Professionalism 2 8%
Commitment 3 12%
Quality 4 16%
Total 25 100%

Source: Field work (2021)

22
Figure 6: Shared core values of the manufacturing firm

40%

35%

30%

25%

20%

15%

10%

5%

0%
Intergrity Team work professionalism Commitment Quality

As shown by the table below 24% indicated integrity as one of core values, 40% indicated team work as
one of the core values, 8% indicated professionalism as one of the core value, 12% indicated
commitment as one of their core values and 16% indicated quality as one of their core values. The
findings justified the need to assess how the core values influence performance.

23
4.4.2 Awareness of core values by employees
The respondents were requested to state if there aware of the core values of the firm when filling the
questionnaire, the table shows the response of 25 respondents.

Table 7: awareness of core values by employees

RESPONSE FREQUENCY PERCENTAGE

Yes 20 80%
No 5 20%
Total 25 100%

Source: Field work (2021)

Figure 7: Awareness of core values by employee.

Response

20%

Yes
No

80%

80% of the respondents were aware of the core values of the firm and only 20% were not aware. The
firm has a large no of employees aware of their core values hence capable of promoting their core values
that are performance oriented.

24
4.4.3 The extent to which core values define what is important in the firm.
The respondents were asked to state the extent to which core values define what is important in the firm
when filling the questionnaire; the table shows the response of 25 respondents

Table 8: The extent in which core values define what is really important in the organization

RESPONSE FREQUENCY PERCENTAGE

Very much 15 60%
Not at all 2 8%
I don’t know 5 20%
Not so much 3 12%
Total 25 100%

Source: Field work (2021)

25
Figure 8: the extent in which core values define what is really important in the organization

60%

50%

40%

30%

20%

10%

0%
very much
not at all
I don’t know
not so much

As shown by the table 60% of the respondents very much agreed that core values define what is really
important, 8% of the respondents not at all agreed that core values define what is really important, 20%
do know if core values define what is really important and 12% not so much agreed that core values
define what is really important.

26
4.5 Performance of the manufacturing firm
4.5.1 Parameters used to establish performance
The respondents were requested to state the indicators/parameters used to establish the performance of the
firm when filling the questionnaire.

The table below shows the response of 25 respondents.

Table 9: Indicators of performance

INDICATORS OF FREQUENCY PERCENTAGE

PERFORMANCE
Growth of revenue 5 20%
Number of customers retained 3 12%
Employee satisfaction 7 28%
Order fulfillment time 10 40%
Total 25 100%

Source: Field work (2021)

27
Figure 9: indicators of performance

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
growth of revenue number of customer employee satisfaction order fufillment time
retained

As shown in the table above 20% of the respondents indicated that growth of revenue was used to
establish performance, 12% of the respondent indicated that number of customer retained was used to
establish performance, 28% of the respondents indicated that employee satisfaction was used to establish
performance, 40% of the respondents indicated that order fulfillment time was used to establish
performance.

28
4.5.2. Rating of performance of manufacturing firms in the last 3 years.
The respondents were requested to rate the performance of their firms in the last 3 years when filling the
questionnaire.

The table shows the response of 21 respondents.

Table 10: Establish rate of performance.

RATING FREQUENCY PERCENTAGE

Very good 14 56%
Good 10 40%
Poor 1 4%
Very poor 0 0%
Total 25 100%

Source: Field work (2021)

Figure 10: Establish rate of performance

60%

50%

40%

30%

20%

10%

0%
Very good God Poor Very poor

As shown in the table 56% of the respondents rated their performance As very good, 40% of the
respondents rated their performance as good, 4% of the respondents rated their performance as poor, no
respondents rated their performance as very poor

29
4.5 Relationship between core values and performance
The respondents were requested to state the extended in which the core values relate with performance
when filling the questionnaire.

The table below shows the response of 25 respondents;

Table 11: establish relationship between core values and performance

RESPONSE FREQUENCY PERCENTAGE

Very much 15 60%
Not so much 7 28%
Not at all 0 0%
I Don’t know 3 12%
Total 25 100%
.

Source: Field work (2021)

Figure 11: establish relationship between core values and performance

60%

50%

40%

30%

20%

10%

0%
Very much Not so much Not at all I don’t know

As shown in the table above 60% of the respondents are very much aware of the relationship between
core values and performance, 28% of the respondents are not so much aware of the relationship between
core values and performance, 0% of the respondents were not at all aware of the relationship between
core values and performance and 12% 0f the respondents were not aware of the relationship between core
values and performance in the manufacturing firm.

30
4.7 Conclusion
As a matter of fact, and appreciation, it’s good to note that different manufacturing firms has its own
unique core values that must be understood by both management and employee for the success of the
firm. In order to achieve a successful core value, management should not ignore the core values. Core
values are well comprehended by all can work to the advantage of the organization because it’s been
established that it directly affects performance of the firm. It is through performance that a firm can
increase productivity and thus be able to offer customer value for competitive advantage. All members
and staff of the firm must be binded to core values of the firm as this will enhance commitment through
upholding of core values and firms’ performance. This study proposes that if a firm’s core values are to
improve performance, then the existing core values must be strong and provide a strategic competitive
advantage and its core values must be widely shared and firmly upheld.

31
4.8 Recommendation
Based on the research findings the manufacturing firms should embark on carrying core value audits.
These audits should be done regularly to check whether the firm is still relevant and whether the core
values are shared between its members. Core value has been established as a factor that affects
performance thus it’s important that the management develop core values that are practiced in the firm
and how they influence performance. In addition, core values will be used in establishing the desired
change as well as implement the desired culture that will promote the desired system and create the
desired working environment. Lastly core values have been proven to have a positive relationship with
the firms performance, thus the management should consider using it as a competitive advantage tool
against competitors who don’t have such core values in their firms. As Ogbanna and Harris (2002)
indicated, each firm or organization has its unique performance in the market.

32
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36
QUESTIONNAIRE
I am student at the Kisumu National Polytechnic undertaking a diploma course in business management a
case study at the manufacturing firm. The research findings will help in evaluating the core values in the
firms operation and its relation to performance and improve on the weaknesses in order to offer effective
and efficient manufacturing of goods and products

Please fill in the blank spaces or tick in the appropriate boxes all the information provided will be treated
confidentially

SECTION A

GENERAL INFORMATION

Name of organization

………………………………………………………………………………………………………………
………………………………………………………………………………………………

Nature of the organization ( Tick the appropriate)

Private ( )

Public ( )

3 Years of existence of organization (tick the appropriate)

0-5 years ( )

5-10 years ( )

10-15 years ( )

15-20 years ( )

20 and above years ( )

SECTION B: PERSONAL INFORMATION

1 GENDER

Male ( )

Female ( )

37
2 AGES

18-20 years ( )

20-30 years ( )

30-40 years ( )

40-50 years ( )

50 years and above ( )

3 EDUCATION LEVEL (tick the appropriate)

University ( )

College ( )

High school ( )

4 HOW LONG HAVE YOU BEEN WORKING FOR THESE ORGANIZATION (tick the appropriate)

Less than 1 year ( )

1-3 years ( )

4-7 years ( )

8-11 years ( )

More than 11 years ( )

5 AREA OF SPECILIZATION (tick the appropriate)

Production ( )

Packaging ( )

Grading ( )

Sorting ( )

Supply ( )

Others (specify) ……………….

6 DESIGNATIONS

Top management ( )

Senior staff ( )

38
Junior staff ( )

Support staff ( )

Others (specify)………………………

SECTION C:

CORE-VALUES

From the list please tick the core values for your organization.

Trust ( )

Quality ( )

Integrity ( )

Control ( )

Cooperation ( )

Respect ( )

Honesty ( )

Security ( )

Commitment ( )

Teamwork ( )

Loyalty ( )

Professionalism ( )

Others ( Specify)

Are the employees aware of the core values

Yes ( )

No ( )

What makes your core values unique ( explain)

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………

What benefits has core values brought to your organization.

39
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
……………………………………………..

To what extend does your core value define what is really important to your organization.

Very much ( )

Not at all ( )

I don’t know ( )

Not so much ( )

If not at all what are the reasons

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………………………………………………………………………

ORGANIZATIONAL PERFORMANCE

How does core values affect performance in your organization

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
……………..

What parameters do you use to establish performance of your organization(Tick the appropriate)

Growth of revenue ( )

Number of customers ( )

Employee’s satisfaction ( )

Order fulfillment time ( )

Others ( Specify) ( )

How do you measure employees performance

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………

40
How do you rate performance in the last three years

Very good ( )

Good ( )

Poor ( )

Very poor ( )

CORE VALUES AND ORGANIZATIONAL PERFOMANCE

To what extend does core values relate with your performance

Very much ( )

Not at all ( )

I don’t know ( )

Not so much ( )

Give reasons for the above

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………..

Are there meaningful performance rewards for following your values

Yes ( )

No ( )

Explain your answer above

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
……………………………………………………………………………..

Are your values creating a higher performance environment?

Yes ( )

No ( )

How does core values relate with your performance.

41
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
……………..

To what extend would you say each of the following have contributed to growth and development of
manufacturing firms ( use the following scale)

Factor Not at all Little Moderate Great Very great

influential influential
Existence of
respect
Satisfaction
and
commitment
of employees
Employees
productivity in
the firm
Achievement
of the intended
goals of a firm
Quality of
production
The core
values of the
firm
Team work in
the firm

42