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1.1 Background of the study. Also referred to as ‘merry-go rounds’, revolving groups are a form of friendship gro ups formed for the purposes of supporting the members financially. In revolving groups, members contribute cash or equivalents after a specified period. Each me mber benefits once in a cycle that goes round until all members have benefited. They are mostly dominant among the lower level employees. Friends with the inten tion of supporting each other financially therefore form them. Schein (1965) defines a group as any number of people who interact with and, are psychologically aware of one another hence they perceive themselves as a group. According to him these three conditions need to be fulfilled if a group is to b e distinguished from a random collection of people. Schein (Ibid) also argues that groups share some common aim or purpose. On his p art Cole (2002) defines an informal group as an association established by the e mployees themselves for their own purpose rather than to fulfill organization en ds. He also refers to informal groups as unofficial associations. According to Bennet (1997), informal groups are formed without the management su pport. People who feel they possess a common interest establish them. Informal groups are incidentally present in any organization and can exist witho ut the management support. These include work place cliques and networks of peop le who regularly get together to exchange information. Members energize themselv es and develop a sense of affinity to each other with a common cause. More often it is an informal group that actually determines how much work is done. It aris es through social interaction between people and tends to be small. It is humani stic and adds life into the body of members. Kathryn & Martin (1994) observed that employees rather than the organization est ablish an informal group in order to serve members interests or social needs. So metimes the aim of the informal groups that spring up in the organization will c orrespond to its management, which should recognize the importance of informal g roups for organizational efficiency and their potential for disrupting organizat ional plans. There are generally two types of informal groups, for instance, int erest and friendship groups. Interest groups are created to facilitate employee’s pursuit of common concern whereas friendship groups; evolve primarily around mee ting employees’ social needs. Salemi & Bogonko (1997) refers to informal groups as a relationship between peop le in an organization based not on procedures and regulations but on personal at titudes, prejudices, likes and dislikes, its spontaneous network of relationship s based upon personal needs, attitudes and emotions. Deacon (1998) argues that an informal group is a group that emerges as an effort of an individual to satisfy personal needs not met by the organization such as support, friendship, growth and recreation. Informal group is based on common in terest and mutual attraction. Sagimo (2002) argues that a common bond of friendship, social status, religion, educational background and ethnic origin among others usually ties informal grou ps. They have spontaneous human relations and so they are strongly tied. Armstrong (2003) defines informal group as a setup of people in an organization who have some affinity for one another. For example, formal groups satisfy the n eeds of the organization while informal groups satisfy the needs of their member s. Informal groups are unstructured form of organization. It sets its own rules, regulations, and code of conduct to govern it. In the formal group, the rules a
nd code of conduct are set by the organization without consulting employees. Inf ormal group has its mission and vision that they want to accomplish for example merry go round, which is just a vehicle to warrant members to continue with the group by contributing towards it either monthly or weekly. What bounds the forma l groups together is different from what binds the members of informal groups to gether. Its tasks, goals and values are mainly psychosocial centering on individ ual and group satisfaction, affiliation and co-friendship. 1.2 Problem statement According to Bennet (1997), an informal group actually determines how much work is done. Such possibilities pose serious challenges to an organization to the ex tent that they may fail to meet their set objectives because of factions operati ng in the organization. This research study intends to establish how workplace-revolving groups affect e mployee productivity in Equity Bank. Revolving groups also referred to as merrygo-round groups are a common occurrence in the Organisation. They are predominan t mainly among the lower cadre employees also referred to as operatives. The rev olving groups are formed by close knit friends who meet frequently to deliberate and make contributions. The operations of the groups therefore sometime coincide with the working hours. There are several occasions when officers leave their work schedules to attend to matters pertaining to the welfare of these groups at the expense of their off icial duties. It is for this reason that the researcher intends to establish the impact of informal workplace groups on employee productivity in the Bank and th e challenges they pose to the overall performance of the Organisation. 1.3 Objectives of the Study
1.3.1 General objective The general objective of the study was to find out the impact of workplace revol ving groups on employee productivity. 1.3.2 Specific objectives The specific objectives were: a) To find out if remuneration gives rise to the need of workplace revol ving groups b) To determine the growth of employee productivity c) To analyze the effect of motivation on the formation of workplac e of evolving groups d) To establish the need of security in workplace revolving groups. 1.4 Research Questions The study was guided by the following research questions: 1. How does pay package of employees influence the formation of workplace r evolving groups? 2. What are the factors that lead to the formation of workplace revolving g roups in the Bank? 3. Are there indicators of employee productivity in the Ministry? 4. Is there an effect of workplace revolving groups on employee productivit y? 1.5 Scope of the Study The study revolves around the impact of workplace revolving groups on employee p roductivity. It will be conducted among the lower cadre members of staff within , Job Groups 3 to 7 levels in Equity Bank Headquarters offices at Upperhill, i n Nairobi.
1.6 Significance of the Study The findings of this study will be of importance to several stakeholders, namely : 1.6.1 Management The study identified several factors that influence the formation and sustenance of workplace revolving groups. It also established how the workplace revolving groups affect employee productivity. This information is very necessary for mana gers of the Bank so that they can learn how to harness the power of informal gro ups in enhancing productivity. 1.6.2 Employees The findings of this study are also be important to the employees of the Ministr y of Planning National Development and vision 2030 some of whom are also members of the workplace revolving groups to realize that these groups create forums fo r constructive motivation that should benefit the organization and not fight it. 1.6.3 Other Researchers / Scholars To other scholars and researchers, the findings of this study provide ready scie ntific evidence as well as source of factual data for those intending to study i n this area.
1.7 Limitations of the Study The researcher encountered the following limitations in the course of this study : 1.7.1 Some respondents did not return the questionnaires given out to them for c ompletion. 1.7.2 Some respondents were reluctant to divulge information for fear of victimi zation. 1.7.3 Limited time to comprehensively conduct the study since the researcher apa rt from attending class must also attend to his other personal duties. 1.8 Assumptions 1.8.1 Revolving groups are formed by lower cadre employees to support each other socially as well as financially. 1.8.2 Pay package has direct link with the formation of work place revolving gro ups. 1.8.3 Workplace revolving groups have both positive and negative influence on em ployee productivity. 1.8.4 The management can guide the groups to become productive and benefi cial to both the individual members and to the organization. 1.9 Conceptual Framework Diagrammatic presentation: Security Remuneration Motivation Productivity
Source: author, 2011
1.9.1 Pay package The pay package that employees draw determines whom they associate with. Therefo re, one’s pay package has direct influence on the formation of workplace revolving groups.
1.9.2 Key components of workplace revolving groups The key features of workplace revolving groups are likely to reveal the relation ship that the groups have with the individual employee’s productivity in the organ ization. 1.9.3 Indicators of employees’ productivity Determining the indicators of employee productivity among members of staff is ne cessary because it enables the leadership to realize the kind behaviour to nurtu re among the employees and what set of behaviour to eradicate depending on how e ach one of them influences productivity. 1.9.4 Workplace revolving groups and employee productivity. Employee productivity refers to the positive outcome and or results of an activi ty or assignment undertaken by a person or a group of people. This study sought to establish the relationship between workplace revolving groups and employee pr oductivity.
Definition of operational terms and h
The following operational terms of the study have been used in the study ave their meaning as described below:
Employee: Refers to a person employed by an organization to serve its interests. Indicators of productivity: A set of factors or behaviour that reveal the level of output on the organization. Influence: Refers to the relationship between two variables. Also referred to as impact or effect. Management: A team of managers or an institutional social process consisting of planning, control, coordination and motivation measures towards of achievement o f goals. Morale: The confidence and enthusiasm that employees exhibit when carrying out their duties in the organization. Motivation: The drive behind employees desire to achieve, to perform beyond t argets. Productivity: The quality and efficiency of the output of employees when serving the organization. Leadership: A process by which an individual (the leader) influences the othe rs to contribute voluntarily to the achievement of group tasks in a given situat ion. Communication: The process of creating, transmitting and interpreting ideas, fac ts, opinions and feelings with meaning to the recipients. Pay package: refers to wholesome remuneration to an employee. Workplace revolving groups: An association of employees who come together in the organization with the aim of helping each other both socially and financially. They are also referred to us merry-go-round groups.
CHAPTER TWO 2.0 LITERATURE REVIEW
2.1 Introduction This chapter is a documentation of a comprehensive consideration of the publishe d and unpublished literary work from secondary sources on area of research. Vari ous researchers as well as authors’ work are reviewed in this regard. The research er is mainly concentrating on the available books and research material from dif ferent sources including the internet. In this chapter, the researcher has prese nted the following: The review of past studies, the critical review and Conclusion of the chapter. 2.2 Review of Past Studies
2.2.1 History of Related Studies on Informal Groups Gerald (2001) defines a group as a collection of three or more individuals who i nteract about some common problems or interdependent goal and can exert mutual i nfluence over one another. Brooks (1999) defines an informal group as a collection of people who become a g roup when members develop certain independencies, influence one another’s behaviou r and contribute to mutual need satisfaction. According to Brooks, there exist a number of informal groups such as revolving groups, the office quiz groups, Fri day evening drinking and Friday overnight prayers groups and the ‘lets mourn about the organization’ people. Saleemi and Bogonko (1997) defined informal groups as the relationship between p eople and an organization which board not on procedures and regulations but on p ersonal attitudes, prejudices, likes and dislikes. Nzuve (1999) on his part simply defined informal work groups as an alliance that is neither structured nor organizationally determined. Meaning they are self ge nerated, regulated, and as Saleemi and Bogonko pointed out based on personal att itudes, prejudices, likes and dislikes. Sogimo (2000) argues that common bonds of relationships, social status, religion , educational background and ethnic origin among others usually tie informal gro ups. They have spontaneous human relations and so there are strong ties and cohe siveness among members. According to Mullin (2005), informal groups are very imp ortant in an organization because they are based more on personal relationships and agreement of groups’ members.
People with high affinity for each, belief, and pursuit of a common purpose form informal groups by nature voluntarily. This therefore means that the purpose br inging these people together is more motivating than the official duties assigne d to them by the management. In light of this, the management could help by nurt uring an environment that allows sustenance for these groups to help boost their morale, which in turn helps boost the overall productivity of the employees. Cowling and James (2002) points out that motivating staff has always been one of the biggest challenges facing employers. This is especially so today when the w inning formula is performance through people. An employee’s drive to work consist of all the drives, forces and influences, conscious and unconscious that cause t he employee to want to achieve certain aims. Managers need to know about factors that create motivation in order to be able induce employees to work harder, fas ter, more efficiently motivated by human need to earn a living and partly by hum
an need for job satisfaction, security of tenure, the respect of colleagues and so on - Graham and Bennet – 1998. Heller (1998) points out that today’s increasing competitive business world means a highly motivated work force is vital for any organization seeking to achieve g ood results. Therefore, learning how to motivate others has become an essential skill for managers. Motivating people shows you how best to put motivational the ories into practice to create and sustain a positive environment in the work pla ce. He commends that for an employee, the chief advantage of being motivated is job satisfaction; for an employer, it means good quality work. Armstrong (2006) states that organizations function by means of collective actio n of people, yet each individual is capable of taking independent action which m ay not be in line with policy or instructions or may not be reported properly to other people who ought to know it. Effective communication is required to achie ve coordinated results. Good two-way communication is required so that managemen t can keep employees informed of the policies and plans affecting them, an emplo yee can react promptly with their views about values, plans, intentions and prop osals with the opportunities for discussion with and feedback results. There is always need every organization to have its communication channels open upwards, downwards and laterally. This allows free flow of information, which cu ts down rumors, apprehension over unnecessary concerns. In most cases if some mi sconceptions are not cleared in good time they cause unnecessary tension, which may lead to a go-slow mostly, spearheaded by the informal groups. This of course affects employee productivity negatively. Armstrong (Ibid) not communicating at all conveys a powerful message that the la st committed manager wants, you can never communicate too much, but take care of the content and delivery of message so that it inspires motivation upon recepti on. The system of communication by managers will encourage exchange of informati on and views between team members, allow managers and staff to work together cre atively, problems can be discussed and decisions recede quickly - Heller – (1998). Koontz and Weihrich (2003) indicated that over the years, many authors have reco gnized the importance of communication in organized effort. Communication is vie wed as the means by which people are linked together in the organization to achi eve a common purpose. This is still the fundamental function of communication. I ndeed group activity is impossible without communication, because coordination a nd change cannot be effected. The purpose of communication in an enterprise is t o effect change, to influence action towards the welfare of the enterprise. Comm unication is essential for internal functioning of the organization because it i ntegrates the managerial functions. Koontz and Weihrich (Ibid), communication is needed to establish and disseminate goals of an enterprise, develop plans for their achievement, organize human and other resources in the most effective and efficient way, select, develop and ap praise members of the organization, lead, direct and motivate and create a clima te in which people want to contribute and control performance. According to Armstrong (2006) all organization are concerned with what should be done to achieve sustained high levels of performance through people. This means that giving close attention to how individuals can best be motivated through su ch means as incentives, rewards, leadership and importantly the work they do and the organization context within which they carry out that work. The aim of cour se is to develop motivation process and a work environment that will help to ens ure that individuals deliver results in accordance with the expectation of manag ement.
2.2.2 Key components of workplace revolving groups Brooks (1999) argued that informal groups are based more on personal relationshi ps and agreement of group members than on any defined role relationship. They si mply emerge in the organization, from the informal interaction of the members of the organization. They may be born out of shared interests, friendship or some other social aspect. What informal groups satisfy, in a way that the formal grou ps may not, is that sense of belonging, the idea that we can be wanted, needed, included for what we are and not because the organization has put us to work wit h other people. Brooks (Ibid), further points out that informal groups also reduce feeling of in security and anxiety and provide each other with social support; fulfill affilia tion needs of friendship, love, and support; help to define our sense of identit y and maintain our self esteem; provide guidelines on generally acceptable behav iour; and cater for those often ill-defined tasks which can only be performed th rough the combined efforts of a number of individuals working together. Sandra (1998) points out that, groups contribute in two forms: contribution to i ndividuals; satisfaction of social and affiliation needs, security, support, and enhance feelings of self-esteem, if other members value a member. Contribution to the organization; provide and enforce guidelines for appropriate behaviour, provide a sense of identity hat often include a certain degree of status, enhanc e members access to information and help to integrate new employees into the inf ormal group expectations. 2.2.3 Influence of pay package on the formation of workplace revolving gr oups In most organizations, informal groups are predominant in the lower cadre catego ry of employees. It is no coincidence that this is also the lot that is paid low est in the organization. This therefore demonstrates that there exists a relatio nship between the compensation people get and the value they attach to the organ ization. This gives them the impetus to join an informal group for support finan cially, emotionally or otherwise. This therefore, means that a good pay package will have a positive impact on the group and therefore help shape its attitude t owards the organization. Drucker (1955) is of the opinion that if one can ‘get fired’ for poor performance, o ne must also be able to get rich for extraordinary performance. Rewards should b e directly tied in with the objectives set for the manager’s job. It is misdirecti on of the worse kind to tell employees that have to balance objectives to preser ve the long-term earning power of the business while basing their pay on immedia te short-range profits. According to Taylor (1939) the primary motive for hard work is high wages. There fore, the role of management is to organize work as efficiently as possible so t hat high wages can be earned. Bennet (1997) argues that a remuneration policy ha s two objectives: (i) To attract and retain high caliber workers and (ii) To provide incentives for increased effort. In most western countries, remu neration schemes have tended to move away from direct incentive systems towards other methods, which recognize that workers are motivated by factors other than monetary rewards. Desires for security, stability of earnings and job satisfacti on are also important. According to Cole (2007), quite apart from the internal to set acceptable levels of pay, there are considerable osed by legislation. All the more important, therefore, wages and salaries systematically, taking into account influences on the ultimate costs involved. pressures on management external constraints imp that manager should plan of external and internal
Cole (Ibid) further states that the payment of wages is the employer’s legal oblig ation to his or her employees. How much it to be paid, and in what manner, is a matter of judgment or negotiation. In theory, if an employer wee free to pay wha t he or she liked, he or she would probably pay the minimum. In reality of cours e, few employers are free to approach the labour market in this way, since there are numerous factors which distort the force of supply and demand. Cole (Ibid) concludes by suggesting that it is important for organizations to re view their pay and benefits on a regular basis. The continuing ability to recrui t, retain and motivate staff is vital to employee resourcing. Salary levels need to be comparable the competitors. Benefits, in particular, should be carefully examined as they are usually more visible than pay and can develop into major ir ritants if their application is seen to be unfair by those concerned. 2.2.4 Indicators of employee productivity A team, according to Adair (1986), is more than a group with a common aim. The c ontributions of individuals are seen as complementary in a group. Collaboration, working together, is the keynote of a team activity. He further suggests that t he test of a good (i.e. effective) team is whether its members can work as a tea m while they are apart, contributing to a sequence of activities rather than to a common task, which requires their presence in one place and at one time. Cole (2007) observes that since the majority of employees in organization are em ployed in groups if one kind or another, attention to team-roles, group working and/or team development is a crucial activity for management. He further points out that as the Japanese experience has shown, the development of highly cohesiv e teams imbued with the organizations culture, has brought considerable benefits both to the individuals and to the economy at large. As such, improvements are intimately associated wit personal values and self esteem. Graham (1998) views leadership styles as the ability of a person to influence th e thoughts and behaviors of others. A leader is a person who directs and control s the group so that the purposes of the group are achieved. A good management st yle is that which facilitates adequate or high productivity with reduction in la bour turnover and grievances. He adds that there is a continuum of possible lea dership styles extending from complete autocracy at one extreme to total democra cy at the other. According to Cole (2002), since 1950s, much of leadership has centered on the b ehaviour, or style, of the leader. If leadership is not so much about personal a ttributes, the argument goes, and then perhaps it is about the way in which the leader exercises leadership? In reference to a study carried out in 1939 by Lewi n, Lippit & White that examined the effect of leadership style on the performanc e; he points out that the results indicated that in terms of both goals and memb er satisfaction, a democratic style was preferred to autocratic or laissez-faire style. Cole (Ibid) argues employee’s participation is essential in organizations. He emph asizes the participation of non-managerial employees in the decision making proc ess of an organization. He further terms participation as the practice in which employees take part in management. Participation is based on a community of inte rest between employer and employee; in furthering the long-term prospects f the enterprise and those working in it. Cole concludes by stating, “We know enough about leadership to understand that it is not just a straightforward choice between this or that style. It is principal ly a question of balancing a number of key factors, such as the nature of the ta sk, the composition of the group, the degree of authority available and the pers
onal attributes of the leader. This balancing act is not achieved in a vacuum, b ut in the context of a living organization, composed of ordinary people, and sha ped by their dominant values. 2.3 Critical Review In the above studies, the authors quoted come clear on the importance of the ach ieving organizational goals. In all these, the underlying pillar becomes the nee d for collective and complementary effort geared towards increased productivity. In effect, they fail to boldly state how the present day managers can harness t he potential for informal groups to drive the organization productivity to even higher levels. This study was about the impact of workplace revolving groups on employee produc tivity. Most authors in the studies above concentrated their arguments on the fo rmal employee – employer (management) relations. They gave little reference to spe cific informal groups, which exist outside the controls, and policies of the org anization can influence the productivity. Whereas praising the role of teamwork, the authors did not come clean on the significance of workplace revolving group s on employee productivity. 2.4 Chapter Summary Informal groups have always existed in all formal organizations; however, little regard has been given to their potential in influencing the productivity of the organization. It is evident therefore that the management needs to device the m easures for containing the activities of informal groups that could be detriment al to productivity. High productivity will be ensured through recognition of the individual members to reap from the team spirit established naturally through t he existence of these groups.
CHAPTER THREE 3.0 3.1 RESEARCH DESIGN AND METHODOLOGY Introduction
This chapter is about the methods that were used in carrying out the study. It w as precisely detailed and highlighted the following subtopics: research design, target population, sampling techniques and instruments of data collection, data collection procedures and data analysis.
3.2 Research Design The research employed a descriptive study whose aim was to establish the effects of informal groups (revolving groups) on employees’ productivity in Equity Bank. Descriptive research seeks to establish factors associated with occurrences, out comes, conditions or types of behaviour. Descriptive research is a scientific method of investigation in which data is co llected and analyzed in order to describe the current conditions, terms or relat ionships concerning a problem. These methods of research were chosen because it allowed for in-depth study of the case. 3.3 Location of the Study The study was conducted at the Equity Bank Headquarter offices situated at Equit y Plaza, Upper Hill, Nairobi. 3.4 Target Population The study targeted the lower cadre employees that are on jobs group 3 to 7 at e Nairobi head offices of Equity Plaza, Upper Hill. This included every cadre employees from all the departments. Due to logistic problems, the study did t consider employees of the bank operating outside the head office. In total, e bank employs about 1,311 employees of various carders and qualifications. th of no th
3.5 Sample design and procedure A sample is a small portion of a target population selected using some systemati c procedure for study. Stratified sampling method was used in this study. A samp le of 0.2 was used from each a stratum (category) from which respondents was sel ected.
Table 3.1: Sample size Department Supervisors 80 x 0.2 16 Operational 120 x 0.2 24 Clerical 200 x 0.2 40 Total 400 x 20 80 Source: Author, 2011 3.6 Data Collection Instruments and Procedure The researcher used questionnaires and interviews in collection of raw data. The questionnaires contained both closed and open-ended questions. The researcher a Target population (x 0.2) Sample population
lso prepared and personally interviewed some members of staff on the effects of workplace revolving groups on productivity. 3.6.1 Data collection procedure The questionnaires were distributed to the respondents at their duty stations an d picked later by the researcher after completion by the respondents. Interviews were conducted by the researcher with the management staff in order to reinforc e results of the questionnaires that had been completed. 3.7 Data Analysis Methods & Procedure The data collected through the questionnaires and interview schedule were analyz ed using graphs, tables, percentages, frequencies, and pie charts. These include d content or descriptive analysis, use of graphs and tables for presentation. Th e charts and analysis were generated using SPSS computer package for social and scientific data analysis.
CHAPTER FOUR 4.0 DATA ANALYSIS INTERPRETATION AND PRESENTATION OF RESULTS
4.1 Introduction This chapter is a presentation of the results of the study. The findings are pr esented in two distinct areas, namely: Part A- information on the respondent’s bio data Part B - the area of study. The results are presented in table and graphs genera ted using computer statistical packages. 4.2 Response Rate There were 80 respondents selected for this study, out of this number only 60 co mpleted and returned the questionnaires sent to them. Most of those who did not return the questionnaires claimed that they had busy schedule, which did not all ow them to participate. Others claimed that academic of studies were a waste of time so they did not fill them as expected whereas others misplaced the question naires. The general response rate was as shown in the table below: Table 4.1: Response Rate Response rate Percent Supervisors 14 Target population (%) 16 18 24 Frequency
Operational staff 18
23 Clerical staff 40 36 45 Total 80 60 75 Source: Author, 2011 As indicated in table 4.1 above the study had a 75% response rate. This is rate is representative considering that only 25% responses were not received. The fin dings of the study presented here in are therefore reliable and representative. 4.3 Respondents’ Background Information This section presents the findings of the study on the background information of the respondents. 4.3.1 Age bracket of the respondents
Table 4.2: age bracket Age bracket No. of respondents 20-29 years 15 25 30-39 years 40-49 years 50 – Above Total 60 100 Source: Author, 2011 The table above presents the findings of the study on the age distribution of th e respondents. The findings indicated that the majority of the respondents were aged between ages 30-39 at 40%, followed by those aged between ages 20-29years a t 25%, then those aged between 40-49 years at 20% and lastly those aged over 50 years at 15%. 4.3.2 Highest Educational level of the respondents The table below presents the findings of the study on the level of education of the respondents in the study. The findings of the study indicated that the major ity of the respondents 60% had college diploma/certificates, 20% had university degrees, 10% had secondary school level of education and another 10% had MBA. Table 4.3: Educational level attained Educational level No. of respondents Secondary education 6 10 College certificate/diploma 60 Percent (%) 24 12 9 40 20 15 Percent (%)
University degree 20 MBA Total 6 10 60 100
Source: Author, 2011 The graph below presents the result graphically: Fig 4.1: Educational Level of the Respondents 4.3.3 Experience of the respondents
Table 4.4: Experience of the Respondents Length of service No. of respondents 0-9 years 24 40 10-19 years 33 20-above 27 Total 40 100 Source: Author, 2011 The table above presents the findings of the study on the length of time the res pondents had been in the service of the ministry. The results indicated that, th e majority 40% had been in the ministry for between 0-9 years, 33% had been in t he ministry for between 10-19 years and only 27% had been in the ministry for o ver 20 years. This is an indication that most of the respondents have been in th e service of the ministry long enough to be able provide unbiased and reliable i nformation concerning the operations as well the effect of informal groups on pe rformance. 4.3.4 Distribution of the respondents based on income 20 16 Percent (%)
Table 4.5: Income bracket Income bracket No. of respondents Percent (%) Less than 10,000 30 50 1001-20000 18 32
20001-30000 6 9 30001-above 6 9 Total 60 100
Source: Author, 2011 Table 4.5 above presents the findings of the study on the salary range of the re spondents. The findings indicated that the majority, 50% of the respondents earn ed below ksh.10,000, 25% earned between ksh10,000-20,000; 12.5% earned between k sh20,000-30,000 and another 12.5% earned above ksh30,000. 4.3.5 Current position held by the respondents The table below presents the findings of the study on the positions held by the respondents in the organization. The findings revealed that the majority, 34% of the respondents were clerical officers, 20% were HR officers, economists and ex ecutive assistants were both represented by 13% and lastly both Accountants and HR assistant were represented by 10%.
Table 4.6: Current position held by the respondents Position No. of respondents Percent (%) Clerical officer Accountant 6 HR officer 12 Economist 8 HR Assistant 6 Executive assistant Total 60 100 Source: Author, 2011 The graph below presents the findings graphically: Fig 4.2: Position held by the respondents 20 10 20 13 10 8 34
Source: Author, 2011 4.4 Impact of Informal Groups on Employee Productivity This section present the findings of the study on the area of study – influence of informal groups on employee productivity.
Respondent’s definition of workplace revolving groups
Table 4.7: Respondent’s definition of the revolving groups Definition No. of respondents Merry-go-round 40 67 Teams 12 20 Work units 13 Total 60 8 100 Percent (%)
Source: Author, 2011 The table above presents the findings of the study the respondent’s definition of workplace revolving groups. The majority, 67% of the respondents defined revolv ing groups as merry-go-round, 20% defined them simply as teams and 13% thought r evolving groups to be work units. 4.4.2 Key features of workplace revolving groups
Table 4.8: Features of workplace revolving groups Features Frequency Percent (%) Set to achieve set goals and objectives 4 7 Are temporary/short lived 3 2
Inconsistent due to lack of proper leadership structures 3 5 Lack adequate resources to sustain them 3 5
Their objectives are not in line with the organization’s 2 3 Based on interests i.e. ethnicity, gender, friendship or cadre 8 14 Individual members meet and contribute cash 12 20 Show of teamwork among group members 4 7
Boost morale of members 2 3 Commitment and sense of belonging 8 Operate on trust 4 7 Formed by between 5-10 people Common among female employees Total 60 100 Source, author 2011 These findings can also be presented in a graph as follows: Fig 4.3: components of revolving groups 2 9 5
Source: Author, 2011
Respondents attitude towards their pay package
Table 4.9: Respondents rating of pay package Rate of pay package No. of respondents Excellent 0 0 Good 6 10 Fair 45 75 Poor 9 15 Total 60 100 Source: Author, 2011 Percent (%)
Table 4.9 above presents the findings of the study on how the respondents rate t heir pay package. The findings of the study indicated that, the majority 75% of respondents indicated that their pay package was fair, 15% rated their pay as po or, 10% indicated their pay was good and none of the respondents thought their p ay could be described as excellent.
Whether pay package has influence on productivity
Table: 4.10 – Influence of pay package on productivity Responses No. of respondents Percent (%) Yes 45 75 No 15 25 Total 60 100 Source: Author, 2011 The table above presents the findings of the study on whether the respondents pa y package had any influence on their productivity. The findings indicated that, 75% of the respondents believed that their pay package had influence on their pr oductivity. 4.4.5 Whether current pay package can encourage joining revolving groups The table above presents the findings of the study on whether the amount of sala ry the respondent’s draws would influence him/her to join a revolving group at wor kplace. The findings showed that 50% of the r respondents were positive – the amou nt they drew in form of salary would make them join a revolving groups, 42% did not think and a further 8% were not sure. This revelation points to the fact tha t one’s pay package has a considerable influence in making to join or not to join a workplace revolving group. Table: 4.11 – pay package and joining revolving groups Responses No. of respondents Percent (%) Yes 30 50 No 25 42 Not sure 8 Total 60 5
100 Source: Author, 2011 These findings are also presented below in a graph: Fig. 4.4: pay package and revolving groups Source: Author, 2011 4.4.6 Indicators of employee productivity factors that indicate employee productivity Frequency Percent (%)
Factors/indicators Recognition 2 4 Delegation 2 4 Increased profitability 4 10
Incentives and bonuses for employees 6 Enhanced teamwork amongst employees 6 12 Good quality products/services 5 10 Minimum supervision 4 2
Equal training opportunity 2 4 Improved/good working conditions 8 Morale when carrying out duties 4 8 Adequate working tools/resources 4 8 Meeting of deadlines 12 6 4
Minimum conflicts 8 Customer satisfaction 15
4 7 5
Free flow of information within the organization 10 Improved corporate image 8 Total 60 100 Source: Author, 2011 4
The above table presents the findings of the study on the indicators of producti vity in the organization. The study revealed that the most popular indicators of productivity were: customer satisfaction 15%; meeting of deadlines 12%; enhance d teamwork 10%; free flow of information within the organization 10%; improved/g ood working conditions 8%; morale when carrying out duties 8%; adequate working tools and resources; and improved corporate image among others. Fig. 4.5: Indicators of productivity Source: Author, 2011 4.4.7 Whether workplace-revolving groups have influence on productivity The table below presents the findings of the study on whether workplace revolvin g groups have any influence on employee performance. The findings showed that, t he majority, that is, 90% of the respondents believed that workplace revolving g roups had influence on productivity, 10% of the respondents were not sure, and n one of the respondents were negative about this. Table 4.13: Revolving-groups and productivity. Responses No. of respondents Percent (%) Yes 54 90 No 0 0 Not sure 10 Total 60 6 100
Source: Author, 2011 These findings are also presented below in a graph form: Fig 4.6: Revolving groups ad productivity
Source: Author, 2011
How workplace revolving groups affect productivity
Table 4.14: effect of workplace revolving groups on productivity Effects Frequency Percent (%) Help in brainstorming of ideas 6 12 Helps build positive relationship among staff 20
Improves productivity 6 13 Helps the organization to generate quality leaders 10 Helps improve flow of work 8 Helps make employee efficient 10 Gives employees a sense of belonging 30 Total 60 100 15 20 15
Source: Author, 2011 The table above presents the findings of the study on how workplace revolving gr oups impact on productivity. The findings indicated the following as some of the factors that show how revolving groups affect productivity: they help in brains torming of ideas; builds positive relationships among staff; improves productivi ty; helps the organization in generating quality leaders; improves flow of work; make employee efficient; gives employees a sense of belonging. The figure below presents these findings graphically: Fig. 4.7: effects of revolving groups on productivity Source: Author, 2011
Qualitative Analysis General comments on informal groups in the organization
It was established in the study that some of the key components of workplace rev olving groups include: they are common among female members of staff, they meet regularly, members contribute cash every time they meet, they are temporary in n ature, they operate on trust, they boost the morale of members, they provide the members with commitment and a sense of belonging, and that their objectives are not always in line with the organizational objectives. 4.5.2 Indicators of productivity
The results from the study showed that some of the common indicators of performa nce included: the ability of employees to meet deadlines, minimum conflicts in t he organization, improved employee morale, increased productivity, incentives/bo nuses for employees, quality services, and minimum supervision. Other indicators included improved working conditions, enhanced teamwork and customer satisfacti on. 4.5.3 Informal groups and productivity in the organization
The respondents made it clear that workplace-revolving groups had effect on prod uctivity. Effectively the results indicated that informal groups affected produc tivity in the following ways: the groups helped in generating ideas, also helped in building positive relationships among members of staff, and enabled organiza tions to generate leaders. Other factors that indicate productivity in the organ ization included making of employee more efficient as well as giving the members a sense of belonging.
CHAPTER FIVE 5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATION OF THE STUDY
5.1 Introduction This chapter begins with the summary of the study. The focus of the study is dis cussions of the results arising from data analysis of chapter four. The also pre sents the conclusions as well as the recommendations made in the study. 5.2 Summary of findings The purpose of the study was to establish the impact of workplace revolving gro ups on employee productivity. The study was guided by the following specific obj ectives: to find out the key components of workplace revolving groups; to deter mine the indicators of employee productivity; to analyze the effect of pay packa
ge on the formation of workplace revolving groups; and to establish the effect o f workplace revolving groups on employee productivity The research design for this study was a descriptive study that aimed at establi shing the effects of salary structures of employee performance. Descriptive rese arch is a scientific method of investigation in which data is collected and anal yzed in order to describe the current conditions, terms or relationships concern ing a problem. The findings of the study indicated the following as some of the common features of workplace revolving groups in the Bank, they are set to achieve set goals an d objectives; in most cases are temporary/short lived; they are inconsistent due to lack of proper leadership structures; they lack adequate resources to sustai n them; mostly their objectives are not in line with the organization’s; they are based on some point of interest i.e. ethnicity, gender, friendship or cadre in t he organization. They also possess the following features – members f these groups meet and contrib ute cash; there is always a show of teamwork among team members; they boost mora le of the members; members show commitment and sense of belonging; they operate on trust; they are formed by between 5-10 members; and are common among female e mployees. The study revealed the following as some of the factors that indicate productivi ty in the organization: recognition; delegation; increased profitability; incent ives and bonuses for employees; enhanced teamwork; good quality products and ser vices. Other indicators according to the findings of the study include minimum s upervision; equal training opportunity; improved/good working conditions; morale when carrying out duties; adequate working tools/resources; ability to meet dea dlines; customer satisfaction, free flow of information within the organization; improved corporate image and minimum conflicts in the organization. On whether pay package had any effect on the formation of workplace revolving gr oups; the findings of the study revealed that the majority of the respondents in dicated that the amount of salary they drew at the end of the month could motiva te them to join a workplace-revolving group. On establishing the effect of workp lace revolving groups on employee productivity, the study found that 90% of the respondents believed that workplace-revolving groups had impact on their product ivity in the organization. 5.3 Answers to Research Questions What are some of the key components of workplace revolving groups? Based on the findings of the study it can be said that the most common component s or features of workplace revolving groups include: the groups are based on cer tain points of interest i.e. ethnicity, friendship, gender, or cadre of the empl oyee; that individual members meet and contribute cash regularly; that members o f these groups show the spirit of teamwork; that these groups helps cultivate co mmitment and sense of belonging among members; these groups operate on trust; an d that they are common among female employees. What are the indicators of employee productivity? The findings of the study revealed several factors that indicate employee produc tivity in an organization. Some of the most common according to the results incl ude: increased profitability; enhanced teamwork among employees; good quality pr oducts/services; improved/good working conditions; show of morale when carrying out duties; availability of adequate tools and resource of work; when deadlines are met; when there are minimum conflicts; customer satisfaction; free flow of i nformation; and improved corporate image. Does pay package have any effect on the formation of workplace revolving groups?
The findings of the study revealed that a considerable majority of the responden ts believed that their pay package played a major role in their readiness to joi n a revolving group at workplace. What is the impact of workplace revolving groups on employee productivity? The findings of the study affirmed that workplace-revolving groups had impact on employee productivity in the Bank. The study further established that revolving groups had the following effect on employee productivity: gives members sense o f belonging; makes employees more efficient; helps build good interpersonal rela tionship among staff; helps in brainstorming of ideas; helps improve flow of wor k; helps the organization to generate quality leaders; and that they improve pro ductivity by enabling members solve their financial woes that would otherwise pr eoccupy their working hours.
5.3 Conclusion Conclusions of the study are made along the specific objective of the study, whi ch includes the following: To find out the key components of workplace revolving groups. Based on the findings of the study it can be said that the most common component s or features of workplace revolving groups include: the groups are based on cer tain points of interest i.e. ethnicity, friendship, gender, or cadre of the empl oyee; that individual members meet and contribute cash regularly; that members o f these groups show the spirit of teamwork; that these groups helps cultivate co mmitment and sense of belonging among members; these groups operate on trust; an d that they are common among female employees. To determine the indicators of employee productivity, the findings of the study revealed several factors that indicate employee productivity in an organization. Some of the most common according to the results include: increased profitabili ty; enhanced teamwork among employees; good quality products/services; improved/ good working conditions; show of morale when carrying out duties; availability o f adequate tools and resource of work; when deadlines are met; when there are mi nimum conflicts; customer satisfaction; free flow of information; and improved c orporate image. To analyze the effect of pay package on the formation of workplace revolving gro ups The findings of the study revealed that a considerable majority of the responden ts believed that their pay package played a major role in their readiness to joi n a revolving group at workplace. To establish the impact of workplace revolving groups on employee productivity The findings of the study affirmed that workplace revolving groups had impact on employee productivity in the ministry of Planning, National Development and Vis ion 2030. The study further established that revolving groups had the following effect on employee productivity: gives members sense of belonging; makes employe es more efficient; helps build good interpersonal relationship among staff; help s in brainstorming of ideas; helps improve flow of work; helps the organization to generate quality leaders; and that they improve productivity by enabling memb ers solve their financial woes that would otherwise preoccupy their working hour s. 5.5 Recommendations of the study The findings indicated a presence of workplace revolving groups in the ministry;
this did not however seem to be a threat to the productivity of the organizatio n. On the contrary, the study revealed several interesting factors that showed t hat the groups could actually help improve productivity. It is against this back ground that the researcher makes the following recommendations:
The management should harness the benefits that accrue from the bond and the int erpersonal relationship that is born from the association of the members of the workplace revolving groups in the ministry. The findings revealed that through the revolving groups members are able to inte ract which encourages flow of work. The management should adopt a leadership sty le that allows free association as this leads to formation and sustenance of tea m spirit among members of staff in the organization. High productivity is a central goal of every organization and the only goal to a chieving this goal is through people, therefore the management need to create an environment where the employees’ desire or drive to achieve is unwavering. The fi ndings of the study indicated that revolving groups provided a forum where membe rs were able to help boost the morale of each other. Teamwork or team spirit was pointed out as one of the popular indicators of perf ormance. The management should therefore refocus its energy and intents on ensur ing that members of staff work together in achieving the overall productivity go als of the Bank. The findings of the study indicated that workplace-revolving groups had a positi ve influence on employee productivity in the organization. The study indicated t hat revolving groups helped improve productivity especially considering the fact that groups were took care of the member’s financial problems, which in turn ease d some of their stresses that could otherwise derail their productivity. This th erefore should be a wake up call to the management to strive to encourage the ex istence of informal groups.
REFERENCES: • Anthony D. (1999) Leadership, 3rd edition. Pauline publication Africa – Nairobi
• Armstrong M. (2001), A handbook of human resource management practice (8th editi on) McGraw Hill Book Company, London
• Bennet R (1998) Organizational behaviour, (5th edition) McGraw Hill Book Company , London • • York. • Drucker P.F. (1939), Practice of management, Prentice Hall – London Cole, G.A. (1996), Management theory and practice (5th edition) Kogan Page Deacon C. (1998) Human behaviour in organization, McGraw Hill Companies Inc. New
• Fuster J.M. (2005), Personal counseling, publisher better yourself books, bandar a Mumbai. 12th Edition. • Graham H.T. & Bennet R (1998) Human resource management, (6th Edition) McGraw Hi ll Book Company, London • Nzuve S.N.M. (1999) Element of organization behaviour, university press Nairobi.
Sagimo P.O. (2002) Management dynamics, east Africa publishers Nairobi • Saleemi N.A. (1997) Management (principles and practice) simplified. N.A. Saleem i publishers, Nairobi. • Schein, E.H. (1990), Organizational culture American psychologist, New York Taylor F.W. (1939), Industrial management, prentice hall – London
Appendix I TRANSMITTAL LETTER Institute of Human Resource Management, National Bank House, 20th Floor, Nairobi. To The Respondent, Equity Bank, Nairobi. Dear Sir/Madam, RE: RESEARCH ON IMPACT OF REVOLVING GROUPS ON EMPLOYEE PRODUCTIVITY.
I am a student at the Institute of Human Resource Management pursuing a Higher D iploma in Human Resource Management. As part of the requirement of the Kenya nat ional examination council, I am required to carry out a research on the above-me ntioned topic in your organization. I therefore send this questionnaire to you for completion. Your contribution of ideas and opinions will be very helpful in completing the research. Please compl ete the questionnaire attached and return to the researcher. Note the information collected will be treated with due confidentiality and for academic purposes only. Yours faithfully, Victor Njuguna Kamau.
Appendix II Questionnaire Please complete the questionnaire by ticking the correct option. Part A: background information of the respondent 1. Age bracket ( ( ( ( ) ) ) )
20 - 29 years 30 – 39 years 40-49 years 50 – Above
Highest level of education reached ( ( ( ) ) ( Length of service ( ( ) ) ) )
Secondary education College certificate/diploma University degree Other 3.
0-9 years 10-19 years
20- Above 4.
Income bracket (per month in Ksh.) ( ( ( ( ) ) ) )
Less than 10,000 10,001 – 20,000 20,001 – 30,000 Over 30,001
5. Current position _______________________________________________________
Part B: Impact of informal groups on employee productivity
6. Define a revolving group ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Merry-go-round ……………………………………………………………………………………………………………………………………………………………………………………………………… Teams ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Work units ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 7. What are some of the key features of workplace revolving groups in your organisation? ________________________________________________________________________________ ________________________________________________________________________________ _______________________________________________ 8. How do you rate your pay package? Excellent Good Fair ( ( ( ) ) )
9. Yes No
Do you think your pay package has any influence on your productivity? ( ( ( ) ) )
10. Is the amount of salary you draw likely to make you join a revolving group? Yes No ( ( ) )
11. What are some of the factors that indicate employee productivity? ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 12. In your opinion, do workplace-revolving groups have any effect on employee productivity? Yes ( ) No Not sure ( ( ) )
13. If yes above, how does workplace revolving groups affect employee productiv ity in your organisation. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Appendix III INTERVIEW SCHEDULE FOR MIDDLE LEVEL MANAGERS The interview schedule was used as a guide to assist the researcher to collect r elevant information pertaining to revolving (merry-go-round) groups on employee productivity.
1. What are your comments in general on informal groups in your organization or department ………………………………………………………………………………………………………………………………………………………………………………………………………… 2.
What do you think are the clear indicators of employee productivity …………………………………………
3. What are your comments on general productivity in your organization or de partment with regard to revolving groups? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………….
Appendix IV Budget Items Cost – Ksh Stationary 1,800.00 Typing 2,500.00 Printing 1,000.00 Binding 700.00 Miscellaneous expenses 1,000.00 Total 7,000.00
Appendix V Time plan March April May June July Activity Writing the literature review ++++++ ++++++ ++++++ Preparation of data collection instruments September
+++++++ +++++++ Pilot study +++++++ +++++++ +++++++ Data collection ++++++++++ ++++++++++++++++++++ Analysis and presentation of data ++++++++ ++++++++ Submission of proposal ++++++++
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