Effect of Employee Engagement On Organizational Performance

EFFECT OF EMPLOYEE ENGAGEMENT ON ORGANIZATIONAL PERFORMANCE:
A CASE STUDY OF MOMBASA HOSPITAL, MOMBASA COUNTY
GALGALO RASHID WARIO
KIM/53511/18
A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF DIPLOMA IN HUMAN RESOURCE
MANAGEMENT SUBMITTED TO THE KENYA INSTITUTE OF
MANAGEMENT
JANUARY 2024
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DECLARATION
Declaration by the Student:
This research study is my original work and has not been presented to any other institution. No part
of this research should be reproduced without the authors‟ consent or that of the Kenya Institute of
Management.
Names: Rashid Wario Sign ….................. Date:………….…….Adm No: KIM/53511/18
Declaration by the Supervisor and Management:

This research study has been submitted with my approval as The Kenya Institute of Management
Supervisor.
Names: …………………………………………… Sign …................................. Date …………
For and on behalf of the Kenya Institute of Management
Name: ……………….…………………..Sign …................................ Date :……………………
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DEDICATION
I dedicate this research to my loving parents for their support both financially and spiritually
throughout the course of my studies. To my brothers and sister, thank you. God bless you all.
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ACKNOWLEDGEMENTS
First and foremost I thank the Almighty God for His grace, favor and providence, which enabled
me to undertake this research project. My deepest gratitude goes to my supervisor Madam Faith
for the support, wise guidance and timely feedback throughout this study that enabled me to
successfully complete my research project. Special acknowledgement goes to my mother for
giving me invaluable support and motivation during my studies. Finally to all my family, friends,
lecturers and fellow students, thank you for the input and support during the entire course.
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TABLE OF CONTENTS
DECLARATION.................................................................................................................................ii
DEDICATION....................................................................................................................................iii
ACKNOWLEDGEMENTS................................................................................................................iv
LIST OF TABLES..............................................................................................................................ix
LIST OF FIGURES.............................................................................................................................x
LIST OF APPENDICES.....................................................................................................................xi
LIST OF ACRONYMS AND ABBREVIATIONS...........................................................................xii
DEFINITION OF TERMS...............................................................................................................xiii
ABSTRACT......................................................................................................................................xiv
CHAPTER ONE..................................................................................................................................1
INTRODUCTION................................................................................................................................1
1.1 Background of the Study................................................................................................................1
Global Perspective of Employee Engagement and Organizational Performance................................1
Regional Perspective of Employee Engagement and Organizational Performance............................2
1.2 Statement of the Problem...............................................................................................................2
1.3 Research Objectives.......................................................................................................................3
1.3.1 General Objective.....................................................................................................................3
1.3.2 Specific Objectives...................................................................................................................3
1. To find out the Effects of Employees Commitment on performance of Mombasa Hospital..........3
2. To establish the Effects of Employee retention on performance of Mombasa Hospital.................3
3. To find out the Effect Employee motivation on the Hospital's performance...................................3
1.4 Research Questions........................................................................................................................3
1.2.1 What is the Effects of Employees Commitment on Performance of Mombasa
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Hospital? 3
1.2.2 What is the Effects of Employee retention on performance of Mombasa Hospital?.............3
1.2.3 What is the Effect of Employee motivation on performance of Mombasa Hospital.............3
1.5 Significance of the Study...............................................................................................................4
1.5.1 To the Researcher......................................................................................................................4
1.5.2 Kenya Institute of Management................................................................................................4
1.5.3 Other Researchers.....................................................................................................................4
1.6 Limitations of the Study.................................................................................................................4
1.7 Scope of the Study.........................................................................................................................5
CHAPTER TWO.................................................................................................................................6
LITERATURE REVIEW....................................................................................................................6
2.1 Introduction....................................................................................................................................6
2.2 Theoretical Literature.....................................................................................................................6
2.2.1 Social Exchange Theory...........................................................................................................6
2.2.2 Expectancy Theory...................................................................................................................7
2.2.3 Herzberg’s Two Factor Theory.................................................................................................8
2.2.4 Resource Based View Theory...................................................................................................8
2.3 Research Gaps................................................................................................................................9
2.4 Summary........................................................................................................................................9
2.5 Conceptual Framework................................................................................................................10
Independent Variables Dependent VariableFigure 2.1 Conceptual Framework..........................10
2.6 Review of Variables.....................................................................................................................11
2.6.1 Employees Commitment.........................................................................................................11
2.6.2 Employee retention.................................................................................................................12
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2.6.3 Employee motivation..............................................................................................................13
2.6.4 Organizational Performance....................................................................................................14
CHAPTER THREE............................................................................................................................15
RESEARCH METHODOLOGY.......................................................................................................15
3.1 Introduction..................................................................................................................................15
3.2 The Study Design.........................................................................................................................15
3.3 Target Population.........................................................................................................................15
Table 3.1 Target population...............................................................................................................16
3.4 Sampling Design..........................................................................................................................16
Table 3.2 Sample Size........................................................................................................................17
3.5 Data Collection Methods and Instruments...................................................................................17
3.6 Data Collection Methods..............................................................................................................17
3.6.1 Primary data............................................................................................................................17
3.6.2 Secondary data........................................................................................................................18
3.7 Data Collection instruments.........................................................................................................18
3.8 Reliability and Validity................................................................................................................18
3.9 Data Analysis and Presentation....................................................................................................19
CHAPTER FOUR..............................................................................................................................20
DATA ANALYSIS, FINDINGS AND DISCUSSIONS...................................................................20
4.1 Introduction..................................................................................................................................20
4.2 Response Rate..............................................................................................................................20
Table 4.1 Response Rate of the respondents......................................................................................20
4.2.1 Gender of the respondents.......................................................................................................20
4.2.2 Work Duration........................................................................................................................22
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4.2.3 Age of respondents..................................................................................................................23
Table 4.5 Education level of respondents..........................................................................................25
4.3 Descriptive Analysis....................................................................................................................25
4.3.1 Effects of Employees Commitment related with The Performance of Mombasa Hospital....25
4.3.2 Effects of employee retention on the Performance of Mombasa Hospital.............................27
Figure 4.8...........................................................................................................................................28
4.3.3 Effect Employee motivation on The Hospital's Performance.................................................29
CHAPTER FIVE................................................................................................................................33
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS......................................................33
5.1 Introduction..................................................................................................................................33
5.2 Summary......................................................................................................................................33
5.2.1 Effects of Employees Commitment on organizational performance......................................33
5.2.2 Effects of employee retention on Organizational Performance..............................................33
5.2.3 Effect Employee motivation on Organizational Performance................................................34
5.3 Conclusions..................................................................................................................................34
5.3.1 Effects of Employees Commitment on organizational performance......................................34
5.3.2 Effects of employee retention on Organizational Performance..............................................34
5.3.2 Effect Employee motivation on The Hospital's Performance.................................................34
5.4 Recommendations........................................................................................................................35
5.5 Recommendations for Further Research......................................................................................35
REFERENCES...................................................................................................................................36
APPENDIX I: Questionnaire.............................................................................................................41
Appendix II: Budget...........................................................................................................................44
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LIST OF TABLES
Table 3.1 Target population..............................................................................................................16
Table 3.2 Sample Size.......................................................................................................................17
Table 4.1 Response Rate of the respondents.....................................................................................20
Table 4. 2: Gender of Respondents...................................................................................................21

Table 4. 3: Work Duration................................................................................................................22
Table 4. 4: Ages of the Respondents................................................................................................23
Table 4.5 Education level of respondents.........................................................................................25
Table 4.6: Statement on the effects of Employees Commitment related with The Performance of Mombasa
Hospital.........................................................................................................................................................27
Table 4.7: Effects of employee retention on the performance of Mombasa hospital.....................29
Table 4.8: Statements on Effect of Employee motivation on The Hospital's Performance..........31
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LIST OF FIGURES
Figure 2.1 Conceptual Framework.................................................................................................10
Figure 4. 1: Gender of Respondents................................................................................................21
Figure 4. 2: Work Duration.............................................................................................................22
Figure 4. 3: Respondents Age.........................................................................................................24
Figure 4.4: Effects of Employees Commitment related with The Performance of Mombasa
Hospital...........................................................................................................................................26
Figure 4.5: Effects of employee retention on the performance of Mombasa hospital....................28
Figure 4.6: Effect of Employee motivation on The Hospital's Performance..................................31

Figure 4.7: Effects of Employees Commitment related with The Performance of Mombasa Hospital.......26
Figure 4.8: Effects of employee retention on the performance of Mombasa hospital....................28
Figure 4.9: Effect of Employee motivation on The Hospital's Performance.................................31
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LIST OF APPENDICES
APPENDIX I: Letter of Introduction............................................................................................41
APPENDIX II: Questionnaire......................................................................................................44
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LIST OF ACRONYMS AND ABBREVIATIONS
AC Affective Commitment
CD Career Development
HR Human Resource
ILO International Labor Organization
KIM Kenya Institute Of Management
OCB Organizational citizen behavior
OP Organizational Performance
RBV Resource Based View
SET Social Exchange Theory
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DEFINITION OF TERMS
Affective Commitment: Strong emotional attachment and involvement in an

organisation which makes an employee to identify with
organisational objectives and desires to remain a member
(Schaufeli and Bakker, 2017).
Behavioral engagement: refers to employees’ behavior of putting in extra

discretionary efforts in order to achieve
organizational goals (Meyerson and Dewettinck, 2019).
Career development: refers to formal, organized, planned effort to achieve a

balance between individual career needs and
organizational workforce requirements (Barney, 2016).
Employee engagement: refers to harnessing of organization members’ selves to

their job roles; in engagement people utilize and
articulate themselves physically cognitively
and expressively
during role performances (Wildermuth, 2018).
Organizational performance: is the ability of the organization to achieve its mission
and vision through meeting its stakeholders’ expectations

and its financial obligations (Rogers and Wright, 2015).
Working environment: this consists of physical setting, work place design,

ambience and work culture (Sundstrom, 2019).
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ABSTRACT
The current competitive business environment emphasizes that senior management get the best
out of their human capital to stand a chance of acquiring competitive advantage. Performance
Management is increasingly gaining acknowledgement in the business world: it has become a
concern and a key issue for top executives. Performance Management systems have become a
key tool that senior executives use to convert business strategy into business results. Many
organizations have over the years formulated and implemented performance management
systems hoping it will enhance the effectiveness of the organization as a whole: certain
management practices foster employee involvement and engagement. An engaged employee will
in all likelihood perform their work at a superior level all of the time. Achieving a committed
workforce is the key to providing higher performance. The purpose of this study was to examine
the effects of employee engagement on organizational performance of Mombasa Hospital in
Mombasa county. Three objectives guided the study; To find out the Effects of Employees
Commitment on Performance of Mombasa Hospital, To establish the Effects of employee
retention, how it affects Performance of Mombasa Hospital, To find out the Effect
Employee Satisfaction on The Performance of Mombasa Hospital. The study anchored its
variables on four theories namely: social exchange theory, expectancy theory, Herzberg’s two
factor theory and resource-based view theory. The study adopted descriptive research design.
Stratified random sampling technique was used to draw the study sample size. The population of
this study constituted 100 employees of Mombasa Hospital. A sample of 31 respondents was
drawn. This represented 30% of the population of staff of the targeted population. This gave the
management of Mombasa Hospital a clear understanding on employee engagement and the effect
it has on organizational performance. The summary of the major findings gave management the
necessary conclusions and recommendations based on the specific research objectives.
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
This chapter presented the market with necessary questions. As a comprehensive guide based on
interpretation of findings, involving employee role execution and effects it has towards achieving
organizational vision and mission.
1.1.1 Global Perspective of Employee Engagement and Organizational Performance

Globally the perceptions about resources and knowledge that foster a general culture of employee
engagement have fallen in the last year (Hewitt, 2015). Knowledge in general refers to the
workers capability and skill to perform the work.. Earlier members of staff engagement have been
focused on human resource administration. It’s understood to take in the bodily, mental
,emotional aspects of human resource and brings previous considered concepts of staff
dedication. Having emerged in to prospect of human resource administration recently not many
studies have been done on conception of member of staff engagement. However, the idea has
become trendy today and more resonated with employers (Wildermuth, 2018). Robinson (2013),
assert that employee engagement can be achieved through the creation of an organizational
environment where positive emotions such as involvement and pride are encouraged, resulting in
improved organizational performance, lower employee turnover and better health. The
organizational systems have to be integrated, management practices have to be aligned, and the
work climate has to be supportive so as to maximize worker engagement. The "power" element of
involvement means the organization truly and effectively empowers the workers to participate in
decision-making regarding their work. To a lesser extent, it might mean management has to adopt
a democratic style of leadership, which encourages workers to voice their opinion and concerns
before decisions are made. For this to work, the worker's suggestions have to be discussed, their
applicability evaluated, and some of the useful worker's suggestions have to be implemented. To
achieve greater involvement requires giving the workforce greater input and control. For workers
to be effective in their work, they need "information." This becomes the basis for decision-
making, problem-solving, and proper execution of the work. The challenge for management is to
set up a process by which the worker gets the right information at the right time. Another
important aspect that sustains involvement is when the worker sees a direct link
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between what they do on a daily basis and the organizational or proposal goals and objectives on
the whole. This sort of vertical alignment has been proven to be highly effective in engaging
workers and its resulting positive impact on organizational superior performance and outcomes.
A major gap exists between executives and employees regarding engagement and has become a
critical issue in the workplace as executives underestimate the importance of engagement and the
requirements to cultivate a desirable and productive culture (Meyerson & Dewettinck, 2019).
1.1.2 Regional Perspective of Employee Engagement and Organizational Performance

Locally, Mokaya and Kipyegon (2014) shows that employee engagement is found to be higher in
double digit growing companies. This study that was conducted among banks in Kenya further
revealed that there is a significant relationship between performance management system and
employee engagement and that workplace recreation does not significantly influence employee
engagement. The authors further concluded that satisfaction with amount of variety and challenge
in one’s job actually influence employee engagement. From this study it was well noted that
employees’ ability to influence decisions at work is one of the most important factors affecting
their motivation and psychological well-being.
According to Robbins (2014) proposed that employee engagement is affected by organizational
culture, appointing employees in mismatched positions, lack of development and participation in
decision-making. A number of employee engagement trends are identified in the extant literature
with regards to HR performing a strategic role, developing approaches to engage millennial,
inclusive culture, flatter structures and recognition strategies.
1.2 Statement of the Problem
A positive work environment encourages employees to be driven and perform exceptionally to

improve levels of productivity and the better utilization of organizational resources. Employee
engagement has become a very controversial topic in the recent years. It has garnered the interest
of many due to its impact on organizational performance (Markos and Sridevi, 2014; Mone and
London, 2014).
Mombasa Hospital performance declined the last two years prior to 2018 (Mombasa Hospital
financial report, 2018). According to the Mombasa Hospital financial report (2018), the company
posted profit of Ksh 90 million in 2015, and slightly reduced in the year 2016 by Ksh 21 million.
However, in the financial year of 2017, the company posted profit of Ksh 74 million which is
slightly higher than 2016
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profits and lower than 2015 profits. Consequently, the company is experiencing low staff morale,
working relations between the management and subordinates as well as reduced levels of
customer service (Mombasa Hospital management report, 2018). Majority of staff feel that
instructions from the management are not clearly and timeously communicated. This has resulted
in low self-esteem and has reduced the level of engagement and commitment by staff in
achieving their organizational goals and objectives (Mombasa Hospital management report,
2018).
Locally, many studies have been done on employee engagement (Wachira, 2013; Kibui, 2015;
Mokaya and Kipyegon, 2014), however from the reviewed extant literature, no known study has
focused on Health sector in Kenya. Inconclusive past empirical studies and current challenges in
the target firm has motivated a study on the effect of employee engagement on organizational
performance of Mombasa Hospital.
1.3 Research Objectives
1.3.1 General Objective
The general objective of this study was to examine the effects of employee engagement on
organizational performance of Mombasa Hospital.
1.3.2 Specific Objectives

1. To find out the Effects of Employees Commitment on performance of Mombasa Hospital.
2. To establish the Effects of Employee retention on performance of Mombasa Hospital.
3. To find out the Effect Employee motivation on the Hospital's performance.
1.4 Research Questions

1. What is the Effects of Employees Commitment on Performance of Mombasa Hospital?
2. What is the Effects of Employee retention on performance of Mombasa Hospital?
3. What is the Effect of Employee motivation on performance of Mombasa Hospital?
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1.5 Significance of the Study
The research findings would enable management of Mombasa hospital to understand the possible
organizational challenges occasioned by lack of employee engagement and thus offer managerial
solutions to the challenges.
The study is an important addition to the existing empirical literature on the influence of
employee engagement on organizational performance. The research would be supportive to
researchers who may want to accomplish additional research on issues associated to employee
engagement in hospital sector in Kenya.
1.5.1 To the Researcher

The findings of this project will be beneficial to the researcher as it will help him to improve in
future in examining employee engagement on organizational performance in organizations. The
project will also go a long way in assisting the researcher get his diploma from the college.
1.5.2 Kenya Institute of Management

The research will add to the library of knowledge already existing and this will provide
information to other students who will be interested in carrying out related research topics.
1.5.3 Other Researchers

Academicians and other researchers will find the study helpful to identify further areas
of research built on this topic or other related topics.
1.6 Limitations of the Study
The scope of discussions of employee engagement on organizational processes is minimal and

this limited the availability of empirical studies for literature review. The study however relied
on discussions from studies done on parastatals and other organizations to build literature review
and hence conduct the study. The other limitation came from reaching out to the staff at
Mombasa hospital.
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1.7 Scope of the Study
The contextual scope of this study was to establish the effect of employee engagement on
organizational performance. The geographical scope was Mombasa hospital, Mombasa County.
The study specific objectives of the study are employee commitment, employee retention and
employee satisfaction. The respondents included management, supervisors and subordinate staff
who provided pertinent information about the research problem. The study took was conducted
from periods of between September 2023 to January 2024 months.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter was concerned with literature review available that has been carried out by
other researchers. This chapter deals with past studies, review of major studies, critical
review and summary and gaps to be filled.
2.2 Theoretical Literature
A theoretical literature is a collection of interrelated concepts, like a theory but not necessarily so
well worked-out. According to Kothari (2008) a theory is a combination of well-articulated ideas
that serve to break down a certain phenomenon by giving variables of the laws that then relate
the variables to each other. Theoretical frameworks are obviously critical in deductive, theory-
testing sorts of studies. The theoretical background of this study is supported under four theories
namely: social exchange theory, expectancy theory, Herzberg’s two factor theory and resource
based view theory.
2.2.1 Social Exchange Theory
Social exchange theory was promulgated by scholars like Emerson and Ekeh in the 1970s. The
Social exchange theory (SET) is among the most influential conceptual paradigms for
understanding work place behavior (Croponzano & Mitchell, 2017). According to social
exchange theory, as individuals interact over time, they experience the need to reciprocate the
support and assistance of the other person. This is called the norm of reciprocity (Blau, 2015). If
this norm of reciprocity is fulfilled, a trusting and loyal relationship evolves (Cropanzano &
Mitchell, 2017). ‘Individuals experience a strong urge to reciprocate favors. Indeed, individuals
feel more motivated to reciprocate a favor than most benefactors actually predict (McGuire,
2015).
According to Wong et al. (2003), critics of SET have argued that the theory assumes that people
are rational and will always act in rational ways. Reality is that people sometimes act in irrational
ways; hence one should be cautious when applying the theory to workplace. This theory is highly
relevant to leadership because leaders are often in positions where they must manage
relationships in workplace to achieve employee commitment, retention, satisfaction, trust, and
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negotiate with others to achieve shared goals. Leaders should understand social exchange
theory because it
7
provides insights into how people perceive and evaluate the outcomes of their interactions.
According to the theory, people always compare the rewards and costs of their relationships with
others. Rewards can include tangible benefits like money, status, or resources and intangible
rewards like respect, recognition, and emotional support. Costs can include the effort, time, and
emotional investment required to maintain relationships and negative outcomes like conflict or
rejection (Zhang and Liu, 2019).
2.2.2 Expectancy Theory
The expectancy theory was developed by Vroom in 1964 who posited that the tendency to act in
a certain way depends on the strength of an expectation that an act will be followed by a given
outcome and on the attractiveness of that outcome to the individual. The focus of expectancy
theory is on the relationship between employee engagement and organizational performance.
Expectancy theory suggests that individuals are motivated to perform if they know that their
extra performance is recognized and rewarded (Vroom, 1964). Consequently, companies using
performance-based pay can expect improvements in employee retention, motivation and
satisfaction. Performance-based pay can link rewards to the amount of products employees
produced. As such, attraction, retention, productivity, quality, participation, and morale may
improve. Yet, for best practice gurus such as Pfeffer (1998), rewards had twin elements and
needed to be not only performance-related but also higher than average. If an outcome is
favorable, this will lead to a behavior being repeated while unfavorable outcomes lead to
avoidance of such an action (Robbins, 2015). Individuals will be motivated when their efforts
results in desirable outcomes (Denhardt, 2017). The attractiveness of the reward to the individual
determines how much energy is expended in achieving the goals. Individual must know in an
unambiguous way what is expected to achieve the goal. Further, one assesses the probability of
achieving the goal to determine whether it’s worth pursuing (Robbins, 2015).
The expectancy theory was refined by Porter and Lawler in 1968 who posited that over and
above expectation, ability and role clarity are important factors and ought to be taken into
account. Since its development, the expectancy theory has been widely used to explain human
behavior in organisations (Spector, 2013). Although the theory has its critics, there exists enough
empirical evidence to support its argument (Robbins, 2012). Researchers have posited that the
strength of expectancy theory lies with taking into account individual differences in behaviour
and motivation (Buchanan & Huczynisk, 2014). This theory is used to anchor both the
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dependent variable,
9
organisational performance as well as the independent variable; employee engagement.
2.2.3 Herzberg’s Two Factor Theory
Theoretical framework of the study is influenced by Herzberg’s two factor theory towards human
motivation, leading up to employee commitment, retention and satisfaction. According to this theory,
basic hygiene factors like company policy and working conditions may not serve to motivate
individuals making them to stay committed but could cause dissatisfaction if these factors are not
met. On the other hand, ‘Management practitioners have for some time been touting the
importance of drivers of engagement. The often quoted ‘people join companies, but leave
managers’ (Perrin, 2013) underpins this position.
In determining the specific drivers or leavers of engagement, research by many of the global
consultancy firms (e.g., Corporate Leadership Council) have reinforced the role of several factors
as a driver of employee engagement. For example, Perrin (2013) identified the following factors
(in order of priority) as the most important levers of engagement; management’s interest in
employees’ well- being, employee retention and satisfaction, employee committed to their work,
decision- making authority, evidence that the company is focused on customers, career
advancement opportunities, the company’s reputation as a good employer, a collaborative work
environment where people work well in teams, resources to get the job done. Kacel et al. (2005)
Herzberg's two-factor theory provides an insight into key elements that encourage employees to
be committed in the workplace, employee retention and satisfaction. It can also be used to
understand the motivations of individual employees that can in turn be utilized to craft a holistic
employee engagement plan. (Misener and Cox, 2001).
2.2.4 Resource Based View Theory

The foundations of this theory can be traced to the works of Penrose in 1959 and Chandler in
1962. These early scholars postulated that organizational internal resources were the most
important source of organizational performance and competitive advantage. Wernerfelt in mid
1990s is credited with popularizing the resource based theory (RBV). According to Barney
(2012), organizations gain competitive advantage by acquiring, developing and effectively
deploying resources available to them Competitive advantage is gained by an Organisation
through the internal resources owned by it (Wenerfelft, 2011). The RBV theory places
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emphasis on the
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connection between internal resources, strategy and organisational performance.
The resource based theory has been criticised for ignoring the external environment. Porter
(2010) advocated for a mixed approach that takes into account the internal as well as external
influences on performance. However, RBT has been widely used by researchers to underpin
studies on organizational performance. For instance, it was used by Mulabe(2010) and Kibui
(2015). It is a very useful theory in understanding how an organization’s unique strengths give
them competitive advantage that ensures their continued performance relative to their peers.
Using this view, organization ability to harness its human resource capacity by improving
employee engagement and organizational commitment to create room for employee satisfaction
and retention which could offer it a competitive advantage. Thus, the resource based theory with
its emphasis on resources being the source of a firm’s competitive advantage provides a suitable
theory to anchor both the dependent variable, organizational performance as well as the
independent variable; employee engagement. (Croucher, Stumbitz, & Michael, 2013).
2.3 Research Gaps

Existing literature which closely relate to the variables under study in this research have been
extensively researched in developed countries. The literature reviewed indicates that most of the
previous empirical studies on employee engagement have identified the drivers of engagement
but have not linked it to organizational performance. The study found that job autonomy and
decision making latitude has no significant influence on organizational performance. However
the study focused on single variable hence was narrow in scope (Bendix, 2011).
Further, previous empirical studies on the influence of employee engagement on organizational

performance have been conducted either in the public sector or in developed countries while little
has been done on the construction sector in developing countries such as Kenya. The current
study sought to fill the identified gaps by examining the effect of employee engagement on
organizational performance (Massarik & Tannenbaum, 2019).
2.4 Summary
This chapter reviews various theories that inform both independent and dependent variables. The
chapter further explores the conceptualization of the independent and dependent variables by
analyzing the relationship between the variables. In addition, analytical literature in a wide range
of studies has been considered in the study. Herein is also critique of existing literature and
research gaps. The reviewed literature has clearly demonstrated that there is significant
12
relationship between employee engagement initiatives and organizational performance. The
linkages among the variables were determined and a conceptual framework was hypothesized
and relevant gaps explained.
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2.5 Conceptual Framework
According to Mugenda and Mugenda (2012), a conceptual framework is a structure of variables

that the researcher operationalizes so as to accomplish the set objectives. They further define a
variable as a measure characteristic that assumes diverse values amongst subjects.
Employees Commitment
 Effective Commitment
 Fair remuneration
 Continuance Commitment
Organization
 Normative Commitment
performance
Employee retention  Revenue growth

 Operational
 Compensation benefits excellence
 Reward programs  Market share
 Training and development
 Career advancement
Employee Motivation
 Employee Recognition
 Workplace design
 Work Culture
 Work Life Balance
Independent Variables Dependent Variable
Figure 2.1 Conceptual Framework
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2.6 Review of Variables
This section discusses theoretical literature on both the dependent variable (organizational
performance) and the independent variables ( Employees Commitment, Employee retention and
Employee Satisfaction.)
2.6.1 Employees Commitment
Employees Commitment refers to employees’ behavior of putting in extra discretionary efforts in

order to achieve organizational goals. This is manifested by role expansion, personal initiative,
extra role behavior and organizational citizenship behavior. Employees who have capacity and
latitude to redefine their roles have been found to exhibit high levels of work commitment which
in turn has been found to be positively related to performance (Bakker, Tims &Derks, 2012).
Further, Celeik, Iraz, Casiki and Celik (2014) found that empowered employees have higher
levels of creativity. They use their discretion to solve complex challenges that they encounter in
performing their daily tasks. Similarly, Malik (2013) found that efficacy, optimism and resilience
influences organizational performance.
Historically, the first component of organizational justice is distributive justice. It is usually
directly associated with the assessment of fair remuneration. According to Adams’ equity theory
(1963), employees compare their effort with others. Based on the result of that comparison, they
formulate an assessment of fairness. If an employee expends more effort than the reference person
but does not receive a proportionally higher reward, they perceive this lack of balance as unfair.
Researchers from the London School of Economics explains recognition by management is about
giving positive feedback based on results or performance. Sometimes this happens in a formal
way: an award, a bonus, a promotion, a raise. Sometimes recognition is given more informally: a
verbal thank you, a handwritten note. All of these methods can be meaningful, especially if they’re
done in a timely and genuine way. They’re also motivating and exciting as everyone wants their
good work to be applauded.
A spot programme is a spur-of-the-moment employee recognition for employee performance and
exemplary behavior as and when it happens. The prize can be both monetary and non-monetary.
It is used as a retention tool to let employees know their efforts have been recognized and
reinforce the organization's values (Davis & Lansbury, 2012). This dimension of engagement is
seen as directly observable behaviour in the work context and includes innovative behaviours,
initiative, proactive behaviours and going above and beyond what might otherwise be expected.
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2.6.2 Employee retention
The effect of employee retention on performance of an organization explains that Employee
retention have two different aspects one is that when employee feel retain in the company for long
time then he didn’t do work properly and feel free from duty, didn’t do work and also involve in
other different time wasting activities so employee retention also is a bad aspect and in the other
hand employee retention is a good thing when one employee retain in the firm and got different
benefits from the company and also got the bonuses, old age benefits from the company then
employee is doing everything for the company, (Aguenza, 2015).
Blyton and Turnbull, (2012) views role Remuneration as the heart of the relationship between the
employer and his employees. It is an explicit part of the employment contract: the employee
receives a role change or increased roles hence change in work position in return for performing
work. Nevertheless, remuneration is only one of the modalities of the contribution-retribution
relationship. In terms of contribution, we can distinguish between what shows simple physical
strength and ability, time spent at work, talents, skills, results or performance achieved, and in terms
of reward, we distinguish between salary, bonuses, gratuities and monetary benefits, but also
material benefits.
Empirically, studies show that initiative conduct is a strong character under personal initiative
(Nsereko et al., 2018). According to Frese & Fay, (2001) personal initiative is a work behavior in
workplace that is witnessed when people are self-starting, proactive, resilient and goal orientation-
oriented. If the strategy was suggested from one of the low rank workers, this would imply a high
psychological distance and we would consider it to be personal initiative. Likewise, if the manager
assumes a strategy that is not “in the air,” or is unusual for his or her company, then there is a high
psychological distance and we would consider it to be Personal initiative.
A team is a group of people working towards a common goal. Team Building initiative involves the
process of enabling the group of people to reach their goals. It consists of steps like clarification of
team goals; identification of hindrances to goal achievements; facing the identified challenges and
enabling the achievement of the goals. Fajana (2002) asserts that teamwork is an integration of
resources and inputs working in harmony to achieve organisational goals, where roles are prescribed
for every organisation member, challenges are equally faced and incremental improvements are
sought continually. Katzenbach and Smith (1993) notes that One of the key aims of the team
building initiative is to change the behaviours and attitudes prevalent in the organization, which are
almost independent of who actually works there. Team building doesn't just mean getting the team
16
together. It is more than generic activities imposed upon teams without any real consideration for
what the team
17
wants or needs. There is need for a more considered approach and above all, something where the
objectives are clearly stated and can be met. It is necessary to take into account specific issues that
need to be addressed and the sorts or personalities involved in the team. Dianna (2006) affirms that
teamwork is a form of collective work that might involve individual tasks, but usually involves
some kind of collective task where each member is contributing part of a collectively written
document that is supposed to reflect the collective wisdom of the group.
2.6.3 Employee motivation
Employee motivation consists of physical setting, work place design, ambience and work culture.
A widely accepted assumption is that better workplace environment leads to employee motivation,
and could produce better results. Majority of the employees spend 50% of their lives within the
indoor environments,which greatly influence their mental status, actions, abilities and
performance (Sundstrom, 2013) better work place environment could result in better outcome
and increased productivity. Pech andSlade (2014) are of the opinion that employee
disengagement is increasing drastically and it is theneed of the day to take necessary action at
work place to make positive influence over work force.
Following the arrival of the workplace design, which did not originally include furniture
designed specifically for it, Herman Miller assigned Robert Propst and George Nelson to develop
the Action Office system in 1964 (Abercrombie, 1995). This innovation in office furniture took
Bürolandschaft further by providing employees with autonomy and control of their workspaces
(Worthington, 2006). Control was made possible by storage space, a “communications center,”
and the overall flexibility of movement that the furniture allowed.
To provide the biggest competitive advantage, an organization’s culture must be strong, widely
communicated and reinforced. Everyone must share their values and beliefs. (Davis & Lansbury,
2012). In a strong culture, employees feel valued. They enjoy at least some control over their
jobs, instead of feeling powerless. Whether it’s by working from home, choosing their projects or
trying out a new role, employees that feel valued and can make decisions achieve a higher level
of performance. Kothari and Gaurav (2014). Wellins and Bernthal (2015) notes that Strong
company cultures also give employees opportunities to grow. Offering promotions, career
development programs or extra training can keep employees motivated – which in turn, improves
performance. When everyone is in it together, they will all put forth the extra effort to achieve
18
organizational
19
goals.
This borrowed from Obonyo, (1974), who asserts that Employees who experience a healthy work-
life balance are more likely to feel satisfied with their jobs, resulting in a stronger commitment to
the organization. This satisfaction arises from the ability to manage both personal and professional
responsibilities effectively, reducing the likelihood of stress and burnout. When employees have the
resources and support to balance their work and personal lives, they are more inclined to remain
with their current employer, contributing to a lower turnover rate.
2.6.4 Organizational Performance
Organizational performance is key to the success and growth of an organization. (Rodgers &
Wrights, 2014). This is because organizational performance is dependent on the interpretation of
different stakeholders who in most cases have conflicting interests (Carton, 2013). Early empirical
studies on the concept of organizational performance (OP) focused on; financial performance,
market performance and shareholders return. However, measuring performance using these
indicators was eventually challenged as they are not applicable to all organizations especially those
that do not exist to maximize profits.
Pearce and Robinson (2013) highlight three economic goals, which define a company’s
performance guided by strategic direction. These goals are survival in the market, growth and
profitability. Organizational performance is the final achievement of an organization and contains a
few things, such as the existence of certain targets, has a period of time in achieving these targets
and the realization of efficiency and effectiveness (Gibson et al., 2014). On the other hand,
organizational performance refers to ability of an enterprise to achieve such objectives as high
profit, quality product, large market share, good financial results, and survival at pre-determined
time using relevant strategy for action (Koontz & Donnell, 2011). Organizational performance can
also be used to view how an enterprise is doing in terms of level of profit, market share and product
quality in relation to other enterprises in the same industry. Consequently, it is a reflection of
productivity of members of an enterprise measured in terms of revenue, profit, growth, development
and expansion of the organization.
20
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter provides analysis of research method used in this research. It also includes
population, sampling design, data collection methods, data analysis and data presentation
techniques used in this study. It also provides information on how the researcher obtains data
from respondents.
3.2 The Study Design
A research design is intended to provide an appropriate framework for a study: a well-planned

structure of the research process that provides a direction and their problems, guides the research
to the right path (Flick, 2015). The study uses descriptive research design. The descriptive
research design is regarded as the most appropriate research design to measure the perceptions of
the respondents in the study. Descriptive research design is a scientific method, which involves
observing and describing the behavior of a subject without influencing it in any way. It is useful
where it is not possible to test and measure the large number of samples needed for quantitative
types of research (Walliman, 2017).
3.3 Target Population
A population refers to the complete set of counts derived from objects possessing one or more
common characteristics (Flick, 2015). A target population is the specific population about which
information is desired. The target population of this study constituted 100 employees of Mombasa
hospital who were drawn from all categories in the hospital.
21
Table 3.1 Target population
Target group Frequency
Management 25
Supervisors 26
Subordinate Staff 49
Total 100
Source; Mombasa hospital HR (2023)
3.4 Sampling Design
A sampling frame is defined as a source of information from which a sample is selected: it’s a
complete list of everyone or everything you want to study, it is specific. The sampling frame for
this study consisted of all employees currently working at Mombasa hospital. According to
Mombasa hospital HR report (2023) there are 100 employees working in the Hospital.
Stratified random sampling method is used to select relevant respondents from the target company. The
choice of stratified sampling technique is because of non-homogeneity of the population of interest. Cooper
and Schindler (2012) found that stratified sampling technique involves the division of population into
smaller groups called strata. The strata are formed based on members’ shared attributes or characteristics; It
thus ensures inclusion in the sample of subgroup which otherwise can be omitted entirely by other sampling
methods. This represented 30% of the population of staff of the targeted population. According to Kothari
(2004) a representative sample is one which at least 10% of the population thus the choice of 30% was
considered as representative of the population.
22
Table 3.2 Sample Size
Target group Frequency Percentage Sample Size
Administrators 25 30 30/100*25 8
Supervisors 26 30 30/100*26 8
Subordinate Staff 49 30 30/100*49 15
Total 100 - 31
Source, Researcher 2023
3.5 Data Collection Methods and Instruments
3.6 Data Collection Methods
Saunders et al., (2014) described data as any information that has been collected, observed,
generated or created for reference or for analysis. The data can be either primary or secondary.
3.6.1 Primary data
Primary data is collected using (appendix II) structured questionnaire. Information is collected at
first hand and in its unedited form from a source for specific purpose. The researcher therefore
used questionnaire method to acquire data. This instrument is considered appropriate for the study
because it is less costly in terms of time and more flexible for busy respondents. Structured
questions is used and a cover letter is used to indicate the aim of the research and assurance of
confidentiality for respondents answer. Questionnaires are designed based on research questions
and objectives: A well-predesigned structured questionnaire containing both open and closed
questions is used to collect the primary data. To enhance quality of data to obtained, Likert type
questions is included whereby respondents indicate the extent to which the variables
23
is practiced on a five point Likert scale. The structured questions are used in an effort to save
money as well as to facilitate an easier analysis as they are in immediate unable form.
3.6.2 Secondary data
The researcher uses secondary data because of already existing information which saves time and
money. Secondary data is obtained from already existing sources such as relevant company
documents, published journals and past studies.
3.7 Data Collection instruments
The process of data collection begins by being granted approval to collect data and data
collection letter from KIM. Consent to collect data is sought from the management of target
institution and data is collected after obtaining the necessary consent. In the sampled company, a
contact person was identified who was trained on how to distribute the questionnaires after being
thoroughly briefed on purpose of the research and taken through the data collection instrument.
This makes it easy to follow up on respondents and ensures a high rate of response. The process
of data collection is expected to take two weeks to be completed after which data is cleaned and
coded before being analyzed.
3.8 Reliability and Validity

Kothari (2004), states that validity indicates the degree to which an instrument measures what it is
supposed to measure, that is, the extent to which differences found with measuring instruments
reflect true differences among those who are tested. This test the construct validity of the
instruments which is the measure of the degree to which data obtained from an instrument
meaningfully and accurately reflects or represents a theoretical concept. Two different instruments
that measure the same concept is used. Content validity of instruments is determined by colleagues
and experts in research who looked at the measuring technique and coverage of the specific areas.
The experts advised the researcher on the items to be corrected. The corrections on the identified
questions is incorporated in the instruments hence fine tuning the items to increase validity.
According to Kothari (2004) reliability is the consistency of instruments in producing reliable
results. The pilot study is done to ensure that the items consistently measured the variables in the
study and produced reliable results on repeated trials. The split half technique of assessing
reliability was will
24
be. The research instruments is designed in such a way that they had two parts. Subject scores from
one part is correlated with scores from the second part. Orodho (2004) contents that this method is
good enough because it eliminates error due to differing test conditions. It focuses on the degree to
which empirical indicators are consistent across two or more attempts to measure the theoretical
concept. Mugenda and Mugenda (2018), contend that the piloting procedure helps to ascertain that
the instruments of data collection are free from any pitfalls and mistakes that would have surfaced
in the main data collection process if the piloting of the instruments has not been done.
3.9 Data Analysis and Presentation
Data analysis is done through descriptive statistics. This process involved summarizing the collected
data and putting it together so that the researcher can meaningfully organize, categorize and
synthesize information from the data collecting tools. In the data analysis, the researcher examines
each piece of information in each instrument for completeness, organizes data as per research
questions, codes the data and develops code sheet. For qualitative data, patterns or themes is
identified and for all the research questions data is analyzed descriptively. The results will be
presented in tables, graphs, pie charts and percentages.
25
CHAPTER FOUR
DATA ANALYSIS, FINDINGS AND DISCUSSIONS
4.1 Introduction
This chapter presents the results of the study based on data analysis and interpretations of
findings based on research objectives that are presented in Chapter one of the study.
4.2 Response Rate
The researcher analyzes the response rate in relation to the targeted sample and the number of
respondents with a view to determining the reliability of the study. The results are presented in
Table 4.1.
Table 4.1 Response Rate of the respondents
Response/Total Frequency Percentage
Expected Results 31 -
Returned Results 30 97
Not Returned 1 3
Total - 100
Analysis
According to Table 4.1 above, the response rate was 93%. This response rate is considered
adequate for objectives of the study as it conforms to that recommended by Mugenda and
Mugenda (2012), who notes that a response rate of 70% and above is good, reliable and
representative.
4.2.1 Gender of the respondents

The respondents were asked to show their gender and the results are as follows in table 4.2 below
26
Table 4. 2: Gender of Respondents
Gender of the Respondents No of Respondents Percentage %
Male 20 67
Female 10 33
Total 30 100
Source: Researcher (2023)
Figure 4. 1: Gender of Respondents
Gender
33%
Male
Female
67%

Analysis
The respondents who are involved in the research study are requested to state their gender as shown
in table 4.2 and it comes to the researcher’s point of view that out of the 30 respondents 20% are
male, while 10% are female.
Findings
It is noted by the researcher that majority of the respondents are male with a percentage of 20% as
27
compared to 10% who are the female respondents. The researcher found out that, the male
respondents responded with big percentage than female respondents. This implies that there are
more males than females in the organization. More females need to be encouraged to join
organizations.
4.2.2 Work Duration

The respondents are asked to state their service duration in the organization as shown in the table
4.3 below.
Table 4. 3: Work Duration
Range of Years Frequency Percentage %

1-2 year 2 7
3 years 6 20
4 years 7 23
Over 5 years 15 50
Total 30 100
Figure 4. 2: Work Duration
Number of Respondents
7%
20%
1-2year
3years
50% 4 years
above 5 years
23%
28
Analysis
According to the data collected by the researcher, 7% of the respondents worked in the organization
for one to two years, 20% of the respondents have worked for three years, 23% have been in service
for a period of four years and 50% worked for over five years.
Findings
From researcher’s findings, it is found that the highest percentage of workers have a working
experience of over five years while the least with 7% viewed that, have worked with the
organization for one to two years. This means that many respondents are experienced and therefore
the quality response.
4.2.3 Age of respondents

The selected respondents are asked to state their age brackets.
Table 4.4 below shows the age distribution of the
respondents.
Response/Total Frequency Percentage (%)

24-30 years 10 20
31-37 years 12 24
37-40 years 11 22
Total 30 100
29
Table 4. 5: Ages of the Respondents
Age No of respondents Percentage %
Twenty four to Thirty years 12 40
Thirty one to Thirty seven years 12 40
Thirty seven to Forty two years 6 20
Total 30 100
Figure 4. 3: Respondents Age
Age Bracket
45%
40%
35%
30%
25% Age Bracket
20% 40% 40%
15%
10% 20%
5%
0%
24-30 years 31-37 years 37-42 years

Analysis
The respondents state their age bracket and their results are as indicated below. Out of 30
respondents who are interviewed by the researcher in the organization, 40% ranged between twenty-
four to thirty years, 40% of the respondents were between thirty to thirty-six years, while 20% of the
respondents fell between thirty-six to forty-two years and above of age.
30
Findings
From the presentation of the findings most of the respondents are between the age brackets of thirty
to thirty-six years while the least of the respondents in the organization ranged between thirty-six to
forty years old. This implies that many respondents are young people which make there work more
productive.
Table 4.6 Education level of respondents
Response/Total Frequency Percentage (%)

Polytechnic 2 7
College 15 50
Bachelor’s Degree 10 33
Master Degree 3 10
Total 30 100
Source: Author, (2021)
According to Table 4.4, majority of respondents (50%) have college qualification, while 7% of
respondents have polytechnic qualification and 33% have a bachelor’s degree qualification,
while only 10% have Master degree qualification.
Highest Level of Education
10% 7%
polytechnic
College
Bachelor's Degree
Masters Degree
33%
50%
31
4.3 Descriptive Analysis
This section comprises of descriptive analysis for variables under study. Descriptive statistics are
used to describe the basic features of the data in study, giving simple summaries about the
sample and the measures.
4.3.1 Effects of Employees Commitment related with The Performance of

Mombasa Hospital.
The respondents are required to indicate their level agreement with the statements relating the extent
to which employee commitment affects performance of Mombasa Hospital by filling a
5-Likert Scale where; 1=strongly disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree.
The variable uses mean and standard deviation to compute. The results are presented in Table 4.5.
Table 4.7
Likert Scale Frequency Percentage
Strongly Disagree 0 0
Disagree 1 3
Neutral 0 0
Agree 9 30
Strongly Agree 20 67
Total 30 100
Source: Researcher, 2023
From the findings in the table 4.5 above, 67% of the respondents strongly agreed that employee
commitment affects organizational performance in their organization, 30% agreed while 3%
disagreed to that. None of the respondents is neutral or strongly disagreed to that. This implies that
employee commitment affects organizational performance. This information is presented in a bar
chart as shown in the figure 4.7 below:
32
Table 4.4
Figure 4.4: Effects of Employees Commitment related with The Performance of Mombasa Hospital.
Effects of Employees Commitment related

with The Performance of Mombasa Hospital.
80%
70%
60%
50%
40%
67%
30%
20%
30%
10%
0% 0% 3% 0%
STRONGLY DISAGREE NEUTRAL AGREE STRONGLY AGREE
DISAGREE
Effects of Employees Commitment related with The Performance of Mombasa Hospital.

The respondents are further asked to indicate the level to which they agreed or not with a number of
statements related to effects of employee commitment related with the performance of mombasa
hospital. They are required to use the Likert below where 0= Strongly Disagree, 1=Disagree,
0=Neutral, 9=Agree and 20=Strongly Agree.
33
Table 4.8: Statement on the effects of Employees Commitment related with The Performance of
Mombasa Hospital
Statements 1 2 3 4 5
Fair remuneration improves employee commitment 0% 2% 0% 10% 88%
Recognition by management encourages employee commitment 1% 1% 0% 6% 92%
Spot Programmes promotes employee commitment 1% 3% 0% 2% 94%
Source: Research Data, 2023
From the findings in the table 4.8 above majority of the respondents strongly agreed that:
management to provide workers with fair remuneration (88%), recognition by management (92%)
and spot programmes (94%).
4.3.2 Effects of employee retention on the Performance of Mombasa Hospital
The respondents are required to indicate their level agreement with the statements relating the extent
to which employee retention affects the performance of Mombasa hospital by filling a 5-
Likert Scale where; 1=strongly disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree. The
variable uses mean and standard deviation to compute. The results is presented in table 4.6
Table 4.9
Disagree 2 7
Neutral 2 7
Agree 5 17
Total 30 100
34
From the findings in the table 4.6 above, 67% of the respondents strongly agreed that employee
retention affects organizational performance in their organization, 17% agreed, 7% where
neutral, 7% disagreed while 2% strongly disagreed to that. This implies that employee retention
affects organizational performance.
Figure 4.5: Effects of employee retention on the performance of Mombasa hospital
Effects of employee retention on the

performance of Mombasa hospital
80%
70%
60%
50%
40%
67%
30%
20%
10% 17%
2% 7% 7%
0%
STRONGLY DISAGREE NEUTRAL AGREE STRONGLY AGREE
DISAGREE
Effects of employee retention on the performance of Mombasa hospital
The respondents are further asked to indicate the level to which they agreed or not with a number of
statements related to the effects of employee retention on the performance of Mombasa hospital.
They are required to use the Likert below where 1= Strongly Disagree, 2=Disagree, 3=Neutral,
4=Agree and 5=Strongly Agree. The findings are shown in the table 4.10 below:
35
Table 4.10: Effects of employee retention on the performance of Mombasa hospital
Role remuneration increases employee retention 2% 2% 0% 6% 90%
Personal initiative encourages employee retention 0% 2% 0% 11% 87%
Team Building Initiative promotes employee retention 0% 0% 0% 0% 100%
From the findings in the table 4.10 above, majority of the respondents strongly agreed that: effective
role remuneration programs can increase performance (90%) personal initiative increase employee
retention(87%) and team building initiative improves employee retention (100%).
4.3.3 Effect Employee motivation on The Hospital's Performance.
The respondents were required to indicate their level agreement with the statements related the
extent to which working environment affects organizational performance by filling a 5Likert Scale
where; 1=strongly disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree. The variable used
mean and standard deviation to compute. The results are presented in table 4.7.
36
Table 4.11
Disagree 1 3
Neutral 1 3
Agree 7 24
Total 30 100
From the findings in the table 4.7 above, 67% of the respondents strongly agreed that Employee
Satisfaction affects organizational performance in their organization, 24% agreed, 3% where
neutral, 3% disagreed while 3% strongly disagreed to that. This implies that employee satisfaction
affects organizational performance.
Figure 4.6: Effect of Employee motivation on The Hospital's Performance
Effect Employee motivation on The Hos-

pital's Performance.
STRONGLY AGREE 67%
AGREE 24%
NEUTRAL 3%
DISAGREE 3%
STRONGLY DISAGREE 3%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Effect Employee motivation on The Hospital's Performance.
The respondents are further asked to indicate the level to which they agree or not with a number of
statements related to the effect of Employee Satisfaction on The Mombasa Hospital's Performance.
They are required to use the Likert below where 1= Strongly Disagree, 2=Disagree, 3=Neutral,
37
4=Agree and 5=Strongly Agree. The findings are shown in the table 4.12 below:
Table 4.12: Statements on Effect of Employee motivation on The Hospital's Performance.
Workplace design improves employee motivation 3% 7% 0% 3% 87%
Work culture improves employee motivation 0% 3% 0% 6% 91%
Work Life Balance improves employee motivation 4% 5% 1% 13% 77%
From the findings in the table 4.12 above majority of the respondents strongly agreed that
Workplace design improves employee satisfaction (87%), Work culture improves employee
satisfaction (91%) and Work Life Balance improves employee satisfaction (77%).
38
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter presents the summary of the major findings and recommendations. The objectives
of the study are to establish the effect of employee engagement on organizational performance.
The conclusion and recommendations are based on the specific research objectives.
5.2 Summary
The objective of the study is to establish the effect of employee engagement on organizational
performance. This study considers the descriptive research design. The study adopts a
quantitative approach to draw inferences on the effects of employee engagement on financial
performance. For data analysis and presentation of results, descriptive statistics were employed
to establish the significance of the model and also to establish the relationship between the study
variables.
5.2.1 Effects of Employees Commitment on organizational performance

The study establishes that employees are effectively involved in role expansion, and that
employees have high concentration while in work. Further, study established that it is difficult
for the employees to detach themselves from their job. The study establishes that employees are
very happy to be working intensely in the firm.
5.2.2 Effects of employee retention on Organizational Performance

The study establishes that employees regard pay and recognition as significant retention factors
and that the company has fully explored and identified the retention approaches. Further, the
study establishes that the firm management does not have retention strategy and that employees
are being identified for promotion. The findings are consistent with Meyerson and Dewettinck
(2015) who conducts a study on the effect of empowerment on employee performance and found
out that empowering employees increases performance.
39
5.2.3 Effect Employee motivation on Organizational Performance.
The study further establishes that there are adequate support systems in place to support
implementation of our programmes and projects and that employee have adequate working tools
and resources needed to do a job well. The study establishes that security is provided within the
work environment in the organization and that the current working environment is conducive.
The findings agree with a study carried out by International Labour Organisation (ILO) (2017)
on the factors affecting employee performance. The study establishes that good working
conditions reduce labour turn-over; contribute to higher discretionary efforts by employees and
higher levels of customer satisfaction.
5.3 Conclusions
5.3.1 Effects of Employees Commitment on organizational performance

The study concludes that the firm involves employees in role expansion. The study concludes
that Mombasa hospital employees have high concentration while in work and employees are
unable to detach themselves from their job and are satisfied with their job.
5.3.2 Effects of employee retention on Organizational Performance

The study concludes that employees regard pay and recognition as significant retention factors
and that the company has fully explored and identified the retention approaches. The study
concludes that the firm management does not have retention strategy and the firm management
identifies employees for promotion.
5.3.2 Effect Employee motivation on The Hospital's Performance

Finally, the study concludes that the company has enough support systems in place to ensure
successful implementation of employee programmes and projects that can lead to employee
satisfaction and that employee have adequate working tools and resources needed to do a job
well. The study concludes that security is provided within the work environment in the
organization.
40
5.4 Recommendations
The study recommends that the management of Mombasa Hospital should fully incorporate
employees’ suggestions when expanding the roles of employees in the firm. The study
recommends that company leadership should create an enabling environment for employees to be
innovative so as to improve organizational performance.
The study recommends that the management of the company should reward employees based on
performance so as to improve their morale and lead to increased organizational performance. The
company should come up with reward programs which are fair and objective. The employee
perception of fairness in reward programs will thrust individual employees to work diligently
with a view to be rewarded.
Finally, the study recommends that the hospital management should ensure that working
environment is conducive for employee to innovate and work tirelessly. The working tools and
systems should be reliable and easy to use so as to improve employee output. The study
recommends that the company should provide adequate security to employees and their
belongings while at work so as to enhance employee concentration at work.
5.5 Recommendations for Further Research

Further research is required to provide organizations with better understanding of the employees’
antecedents and consequences of work engagement. Further exploration of employees’ work
environment, particularly the impact of team leader’s behaviors, is important to study.
Finally, the study relied on self-reported data mainly from only one industry perspective alone
and used a single industry setting. Further research could seek to address this limitation by use of
multiple industries setting to conduct their studies and this would enhance the validity and
generalization of the research findings.
41
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47
APPENDIX I: Questionnaire
This questionnaire has been designed for intended purpose of collecting data on effects of
employee engagement on organizational performance. Your participation on questionnaire by
putting an “X” on the applicable provided space of the applicable answer.
SECTION A: General Information
• How many years have you been in the firm?

• 1-2 years ( )
• 3-4 years ( )
• 5-6 years ( )
• Over 7 years ( )
• Highest level of education

• Master’s degree ()
• Bachelors’ degree ()
• College ( )
• Polytechnic ( )
48
SECTION B
a) Employees Commitment related with The Performance of Mombasa Hospital.

On a scale of 1 to 5 where;
1 – Strongly disagree, 2 – Disagree, 3 – Indifferent, 4 – Agree, 5 – Strongly agree. Give the

effect of the following statements on employee commitment.
STATEMENT 1 2 3 4 5
a Employees are effectively involved in
role expansion
b When I am working, I forget
everything else around me
c It is difficult to detach myself from
my job
d I feel happy when I am working

intensely
b. Employee retention, how it affects The Performance of Mombasa Hospital.

effect of the following statements on employee retention.
STATEMENT 1 2 3 4 5
a Employees regard pay and
recognition as significant
retention factors
b The company has fully explored
and identified the retention
approaches
c Management do not have a
retention strategy
d Employees are being identified
for promotion
49
c. Employee motivation on The Hospital's Performance.

effectof the following statements on employee satisfaction.
Statement 1 2 3 4 5
There are adequate support systems
in place to support implementation of
our programmes and projects
torwards employee motivation
b I have the tools and resources I need
to do my job well
c Security is provided within the work
environment in the organization
d The working environment is

conducive
d. Organizational performance
Below are some of the organizational performance indicators. Please indicate the extent that
the performance measures below have been affected by employee engagement. Use 1- Very
low extent, 2-Low extent, 3-Moderate extent, 4- Great extent, 5- Very great extent.
STATEMENT 1 2 3 4 5
a Employee turnover rate has
increased in the last 3 years
b The firm revenue has increased over
the period of 3 years
c The market share of the firm has
expanded over the last 3 years
under consideration
Thank you for your cooperation
50
Appendix II: Budget
ACTIVITY COST
BUY NEW LAPTOP 32000
INTERNET SERVICES 1500
STATIONERY 2500
PHOTOCOPY 600
TYPING AND PRINTING 3000
BINDING 1500
TRAVELLING 2000
CONTIGENCIES 2500
TOTAL 45,600
51
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54

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EFFECT OF EMPLOYEE ENGAGEMENT ON ORGANIZATIONAL PERFORMANCE:

A CASE STUDY OF MOMBASA HOSPITAL, MOMBASA COUNTY

GALGALO RASHID WARIO

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE

Names: Rashid Wario Sign ….................. Date:………….…….Adm No: KIM/53511/18

Declaration by the Supervisor and Management:

Names: …………………………………………… Sign …................................. Date …………

For and on behalf of the Kenya Institute of Management

Name: ……………….…………………..Sign …................................ Date :……………………

LIST OF ACRONYMS AND ABBREVIATIONS...........................................................................xii

1.1 Background of the Study................................................................................................................1

Global Perspective of Employee Engagement and Organizational Performance................................1

Regional Perspective of Employee Engagement and Organizational Performance............................2

1.2 Statement of the Problem...............................................................................................................2

1.3 Research Objectives.......................................................................................................................3

1.3.1 General Objective.....................................................................................................................3

1.3.2 Specific Objectives...................................................................................................................3

1. To find out the Effects of Employees Commitment on performance of Mombasa Hospital..........3

2. To establish the Effects of Employee retention on performance of Mombasa Hospital.................3

3. To find out the Effect Employee motivation on the Hospital's performance...................................3

1.4 Research Questions........................................................................................................................3

1.2.1 What is the Effects of Employees Commitment on Performance of Mombasa

1.2.2 What is the Effects of Employee retention on performance of Mombasa Hospital?.............3

1.2.3 What is the Effect of Employee motivation on performance of Mombasa Hospital.............3

1.5 Significance of the Study...............................................................................................................4

1.5.1 To the Researcher......................................................................................................................4

1.5.2 Kenya Institute of Management................................................................................................4

1.5.3 Other Researchers.....................................................................................................................4

1.6 Limitations of the Study.................................................................................................................4

1.7 Scope of the Study.........................................................................................................................5

2.2 Theoretical Literature.....................................................................................................................6

2.2.1 Social Exchange Theory...........................................................................................................6

2.2.2 Expectancy Theory...................................................................................................................7

2.2.3 Herzberg’s Two Factor Theory.................................................................................................8

2.2.4 Resource Based View Theory...................................................................................................8

2.3 Research Gaps................................................................................................................................9

2.5 Conceptual Framework................................................................................................................10

Independent Variables Dependent VariableFigure 2.1 Conceptual Framework..........................10

2.6 Review of Variables.....................................................................................................................11

2.6.1 Employees Commitment.........................................................................................................11

2.6.2 Employee retention.................................................................................................................12

2.6.4 Organizational Performance....................................................................................................14

3.2 The Study Design.........................................................................................................................15

3.3 Target Population.........................................................................................................................15

Table 3.1 Target population...............................................................................................................16

3.4 Sampling Design..........................................................................................................................16

Table 3.2 Sample Size........................................................................................................................17

3.5 Data Collection Methods and Instruments...................................................................................17

3.6 Data Collection Methods..............................................................................................................17

3.6.1 Primary data............................................................................................................................17

3.6.2 Secondary data........................................................................................................................18

3.7 Data Collection instruments.........................................................................................................18

3.8 Reliability and Validity................................................................................................................18

3.9 Data Analysis and Presentation....................................................................................................19

DATA ANALYSIS, FINDINGS AND DISCUSSIONS...................................................................20

4.2 Response Rate..............................................................................................................................20

Table 4.1 Response Rate of the respondents......................................................................................20

4.2.1 Gender of the respondents.......................................................................................................20

4.2.2 Work Duration........................................................................................................................22

Table 4.5 Education level of respondents..........................................................................................25

4.3 Descriptive Analysis....................................................................................................................25

4.3.2 Effects of employee retention on the Performance of Mombasa Hospital.............................27

4.3.3 Effect Employee motivation on The Hospital's Performance.................................................29