Project

CHAPTER ONE
INTRODUCTION OF THE STUDY

1.1 Introduction
This chapter introduces the study; it contains the background of the study, statement
of the problem, objectives of the study, research questions, and significance of the
study and limitations of the study.
1.2 Background of the Study

According to Kotler (1996), Non financial incentives on employee retention is the
activity that a selling organization undertakes in order to reduce customer defections.
Successful non financial incentives on employee retention starts with the first contact
an organization has with a customer and continues throughout the entire lifetime of a
relationship. A company’s ability to attract and retain new customers, is not only
related to its product or services, but strongly related to the way it services its existing
customers and the reputation it creates within and across the marketplace. Non
financial incentives on employee retention is more than giving the customer what they
expect; it’s about exceeding their expectations so that they become loyal advocates for
your brand. Creating customer loyalty puts ‘customer value rather than maximizing
profits and shareholder value at the center of business strategy’. The key differentiator
in a competitive environment is more often than not the delivery of a consistently high
standard of customer service.
An assessment of the product or service quality provided by a business that measures

how loyal its customers are. Non financial incentives on employee retention statistics
are typically expressed as a percentage of long term clients, and they are important to
a business since satisfied retained customers tend to spend more, cost less and make
valuable references to new potential customers. Non financial incentives on employee
retention has a direct impact on profitability. Research by John Fleming and Jim
Asplund indicates that engaged customers generate 1.7 times more revenue than
normal customers, while having engaged employees and engaged customers returns a
revenue gain of 3.4 times the norm. Customer lifetime value enables an organization
to calculate the net present value of the profit an organization will realize on a
customer over a given period of time. Retention rate is the percentage of the total
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number of customers retained in context to the customers that approached for
cancellation (Andrew, 2005).
Non financial incentives on employee retention is on the minds of small and medium
businesses across the world. With rising customer acquisition costs, businesses need
to get innovative and start taking a proactive role in retaining their clients. Studies
from the U.S. Small Business Administration and U.S.A Chamber of Commerce have
found that acquiring new customers can cost as mush as five to seven times more than
simply retaining existing customers. Considering customer profitability tends to
increase over the life of a retained customer, there is extra incentive for business to
allocate more resources to sharpening up their non financial incentives on employee
retention strategies (Martin, 2001)
According to Zenithal (2006) Hospitality industry is much more dynamic and we may
see day by day change in Hospitality industry. Mostly hotels are targeting their
consumers through quality services and by offering different packages regarding per
buffet charges and other services as well. Relationship marketing builds long lasting
relation with consumer and in this manner organization can achieve their ultimate
goal which they have to operate in this business. Organization should put up hard
efforts in non financial incentives on employee retention processes and adopt different
mechanism to cut their cost and remain the loyal to customer.
Jobber (2001) states that for many years in hospitality marketing activities of the
organization as much as possible to get as many new customers goal. Mature and
intense competition in the hotel industry, it fails to win a lot of marketing. The hotel
away from customer gaining and non financial incentives on employee retention and
loyalty by moving their marketing strategy. Intense competition in the hotel industry,
hotelier’s customer acquisition to non financial incentives on employee retention and
simultaneously shift their strategy, information technology, increase non financial
incentives on employee retention and loyalty continue to gain competitive advantage
in the market. Industry standard loyalty program, winning and maintaining customer
loyalty is an important source for hotels. The hospitality industry, the high quality of
service can add value to the image and amicably as well as photographs, non financial
incentives on employee retention and loyalty will lead the have.
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According to Bolton (2000) customer loyalty programs are going to help the
organization to maintain their customers. Some points to reach a common loyalty
program or participating hotel to spend a specific amount of customers who reward
points, discounts and customer subscription includes. Hoteliers use technology related
loyalty programs. To help foster loyalty, hotel reservations and other information to
access internet enabled device that provides a regular guest. Internet use by hoteliers
to develop loyalty online personal web site, email coupons and email marketing
allows you to create. Therefore non financial incentives on employee retention in an
organization and its customers by maintaining, customer loyalty is tested. Non
financial incentives on employee retention increases profits for the success of the
hospitality industry is very tough. Business Retention hotel or group of customers
depends on the image. Hotel customers to maintain or gain loyal customers need to
present a positive business image. The quality of services, identify customer needs,
and to provide users with the products and services required in the use of technology.
1.2.1 Profile of the Villa Rosa Kempinski Hotel

The Villa Rosa Kempinski hotel is located on Chiromo Road, within the commercial
center of Nairobi, 20 kilometers from the Jomo Kenyatta International Airport. The
hotel has 200 rooms and suites distributed throughout 10 floors, including a
Presidential Suite on the top floor. The hotel features 88 the Pan Asian Restaurant, the
Italian Bistro and Tambourin which is the Levant style Lounge, in addition to Café
Villa Rosa - all day dining restaurant, K Lounge and a Cigar Lounge. 88 and
Tambourin are not open as yet; we will keep you informed on these opening dates.
With state-of-the-art banqueting and conference facilities, the hotel’s pillar-less grand
ballroom is able to seat 500 people. Additional facilities for smaller gatherings such as
conferences, meetings and other events are also available. The hotel has a spa with
nine treatment rooms, and a fully equipped fitness center. At the luxurious Villa Rosa
Kempinski Nairobi, we aim to cater beyond your highest expectations with our
excellent services. We let you enjoy your holiday or carry out your business whilst we
take care of the rest.
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Figure 1.1 Organizational Structure of the Villa Rosa Kempinski Hotel
Director
General
Director Director Director Director

HR Financial Sales&Ma Food&Be
Controller rketing verage
Manager
Communication Supply Chain Brand Marketing

service
Source: Villa Rosa Kempinski Hotel (2019)

1.3 Statement of the Problem
Over the years, managers have talked about how financial incentives on employee
retention are, or would be, to their store. The problem is, until recently, it was always
just talking about customers. The biggest cause of customers not returning for service
lies in the fact that organizations don't know how good or how competitive the non
financial incentives on employee retention really is. Most institutions and
organization in Hospitality industry like Villa Rosa Kempinski Hotel depend on their
non financial incentives on employee retention team in retaining customers; creating
awareness, open market and promoting the reputation of the institution. Kotler (2004)
observed that most institutions especially Hospitality industry have the tendency of
ignoring the functions of the marketing department without even knowing they have
made such mistakes. This has been going on for many years due to negligence and
ignorance of the institution leadership. Effective solutions to curb these challenges are
the center of any organization success and it is important task of the organization as a
result Villa Rosa Kempinski hotel has its goals and objectives that are set regarding
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non financial incentives on employee retention. However the various factors have
hindered the company from achieving its mission. The main challenges faced were
being made in consideration with other factors that involve its customers. Another
cause was the design which was being used to make and implement those possible
and effective solutions. It’s for their reactive that the researcher choose this topic
concerning factors affecting non financial incentives on employee retention in the
hospitality industry.
1.4 Objectives of the Study.

1.4.1 General Objectives
The aim of this study was to assess the factors affecting non financial incentives on
employee retention in the hospitality industry in Kenya with reference to The Villa
Rosa Kempinski hotel.
1.4.2 Specific Objective.

i. To determine the effects of technology on non financial incentives on
employee retention in the hospitality industry.
ii. To find out the effects of employee competence on non financial incentives on
iii. To find out the effects of brand equity on non financial incentives on
iv. To find out the effects of competition on non financial incentives on employee
retention in the hospitality industry.
1.5 Research Questions

i. What are the effects of technology affect non financial incentives on employee
retention in the hospitality industry?
ii. To what extent does employee competence affect non financial incentives on
employee retention in the hospitality industry?
iii. What are the effects of brand equity affect non financial incentives on
iv. What are the effects of competition affect non financial incentives on
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1.6 Significance of the Study
1.6.1 To the Organization (Villa Rosa Kempinski Hotel)
This research study will be of help to the target organization. It will be of help to the
managers to capture the factors affecting non financial incentives on employee
retention in order to place it strategically to know the contribution of customers
towards organizational goals.
1.6.2 Other Hospitality Organizations

The research study will give other hospitality organizations a better sight into what
affect non financial incentives on employee retention and will help them formulate
policies which will remedy this, giving a competitive edge over other competitors
who do not understand what affect their non financial incentives on employee
retention.
1.6.3 Other Researchers

Future researchers will benefit from the use of the results from the study. The study
will act as a reference point for future studies on same or similar subtract. Acting as a
reference, it may also stimulate the interest among academicians and thereby
encourage further researchers about the problems and solutions and hence leading to
reduce marketing challenges.
1.7 Limitations of the Study

1.7.1 Confidentiality
Some of the information was very confidential due to the fact that such information can
easily leek to the company’s competitors. The respondents feared to give out some
information due to confidentiality. The researcher overcame this limitation by clearly
explaining the purpose of the study and how it was going to be beneficial to them.
Confidentiality of the information obtained was also emphasized.
1.7.2 Lack of Cooperation

Some respondents were reluctant to give information or they were simply not
interested in sharing out their views concerning the subject matter of the research
hence pausing a lot of information. By convincing the respondents that the research
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work was very important to the researcher, the researcher was able to overcome this
obstacle.
1.8 Scope of the Study

This research was limited to the factors affecting non financial incentives on
employee retention in the hospitality industry in Kenya with specific reference to The
Villa Rosa Kempinski Hotel which is located along Waiyaki way off Chiromo Road,
Nairobi. The study focused on Sales and Marketing Department because it was well
placed to answer statement problems which were being investigated. The department
had senior level management, Middle level management, and Lower level
Management with a target population of 92 employees. The study was conducted
between March 2019 and May 2019
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter presents a review of related literature and various concepts on the subject
under study presented by various researchers, scholars, analysts, theorists and authors.
This chapter contains review of theoretical literature, critical review of literature,
summary and gaps to be filled and conceptual framework.
2.2 Review of Theoretical Literature

2.2.1 Technology
According to Martinich (1997) Technology is "art, skill, cunning of hand"; and is the
making, modification, usage, and knowledge of tools, machines, techniques, crafts,
systems, and methods of organization, in order to solve a problem, improve a pre-
existing solution to a problem, achieve a goal, handle an applied input/output relation
or perform a specific function. It can also refer to the collection of such tools,
including machinery, modifications, arrangements and procedures. Technologies
significantly affect human as well as other animal species' ability to control and adapt
to their natural environments. The term can either be applied generally or to specific
areas: examples include construction technology, medical technology, and
information technology.
Technology can be most broadly defined as the entities, both material and immaterial,
created by the application of mental and physical effort in order to achieve some
value. In this usage, technology refers to tools and machines that may be used to solve
real-world problems. It is a far-reaching term that may include simple tools, such as a
crowbar or wooden spoon, or more complex machines, such as a space station or
particle accelerator. Tools and machines need not be material; virtual technology,
such as computer software and business methods, falls under this definition of
technology. The word "technology" can also be used to refer to a collection of
techniques. In this context, it is the current state of humanity's knowledge of how to
combine resources to produce desired products, to solve problems, fulfill needs, or
satisfies wants; it includes technical methods, skills, processes, techniques, tools and
raw materials. When combined with another term, such as "medical technology" or
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"space technology", it refers to the state of the respective field's knowledge and tools.
(Martinich, 1997).
The future company will operate with a digital nervous system.” Technology has an
impact on the organization as a whole for example linking the customers to the
system, can improve efficiently and more effectively by providing better service to
customers. The application of technology has improved the organization’s ability to
respond to each customer or client’s unique products/service needs. Computer
systems can help an organization record, process and keep track of the many details
needed to provide customers with what they want, when they want it, and in the
manner that they want. Technology will help an organization to answer customer’s
queries faster and to keep on customer’s wants/needs. Technology has enabled the
exchange of information between men and machines through voice, image, data or
multimedia which basically characterizes future information technology infrastructure
which is driving our society’s dramatic transformation to information based on
economy. The availability of such enables the information that is used or passed to be
simple, secure, reliable and cost effective (Martinich, 1997).
According to Thomas and Scott (2004) today a company cannot succeed without
incorporating into its strategy the astonishing technologies that exist and continue to
evolve. Technology advance create new products, advanced production techniques
and better ways of managing and communicating. In addition, as new technology
evolves, new industries, markets and competitive niches develop. New technologies
also provide new production techniques. In manufacturing, sophisticated robots
performs jobs without suffering, fatigue, requiring vacations or weekend off or
demanding wage increase. They also provide new ways to manage and communicate
computerized management information systems make information available when
needed. Computer monitors productivity and performance deficiencies. Advances in
design and manufacturing technology have made it possible to reduce substantially
the amount of time to introduce a new product in market. The computers and
statistical analysis in manufacturing have boosted quality with machines and
processes integrated by means of common databases and routines that simplify
procedures and reduce the potential of human error.
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According to Thomas and Scott (2004) the most significant contribution of advances
manufacturing technologies is that of mass atomization- the ability to produce a wide
variety of a product by using the same basis design and production equipment, but
making certain modifications to meet the demand of a broader market. Computers are
pointing the way to an automated society. The development of robots to work in
certain hostile situations, such as firefighting, security of sensitive establishments and
space exploration could bring considerable benefits. Industrial robots, which have the
capacity to charge industrial practice radically and to bring about automation on a
scale not yet envisaged or understood, may not be socially acceptable. Computers are
used in organizations to improve the quality and accelerate the flow of information
and thus speed up and improve the performance of planning, decision making and
control activities.
According to Cole (2004) state that business firms have increasingly turned to
computer to help perform vital marketing functions in the face of the rapid change of
today’s environment. Marketing information systems, for instance provides
information for planning, pricing decisions, advertising and sales promotion strategies
and expenditures, forecasting marketing potential for new and present products, and
determining of channels of distribution. Control reporting systems support the efforts
or marketing managers to control the efficiency and effectiveness of the selling and
distribution of products and services. He continues to states that digital revolution has
placed a whole new set of capabilities in the hands of consumers and business. Many
observers believe that due to increased amount of purchasing will shift from market
place to market space which is digital. It has an impact that improves the effectiveness
of the functions in using of computer- aided design to improve quality and nature of
service the organization offers. Technology can be viewed as an activity that forms or
changes culture. Additionally, technology is the application of math’s, science and the
arts for the benefit of life as it is known.
A modern example is the rise of communication technology, which has lessened

barriers to human interaction and, as a result has helped spawn new subcultures; the
rise of cyber culture has, at its basis, the development of the internet and the
computer. Not all technology enhances culture in a creative way; technology can also
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help facilitate political oppression and war via tools such as guns. As a cultural
activity, technology predates both sciences and engineering, each of which formalizes
some aspects of technological endeavor. Information technologies includes new
communication and computer processing technologies with regard to communications
technologies, he discusses electronic mail, teleconferencing and telecommunication as
follows: Electronic mail involves sending information to others by computer. This
process eliminates the need for physical handing of documents. With the availability
of electronic communications, many individuals can engage in teleconferences
without meeting physically. He continues to say that active people can receive
messages on 5 to 10 networks, be involved with multiple project groups and belong to
20 or more interested groups. Videos conferencing is a form of teleconference in
which groups members can see each other’s using still videos snapshots in live
television monitors. The ability to telecommunicate electronically gave birth to
telecommuting in which employees work at home on a personal computer, hooked up
to the company’s central workplace (Bateman & Zeithani, 1990).
Bateman & Zeithani, (1990) pinpoint, out that failure to think on a large scale about
technology can lead to two potentially harmful kinds of managerial myopia namely:
Internal myopia is a failure to realize technology’s full power or putting technologies
to the wrong user. While External myopia, is being unaware of understanding an
emerging technology. To avoids technological myopia, advice the management to
think strategically about technology. Technology plays a role in both old line and
high-tech industries in some cases rejuvenating the traditional industries, in others
providing the impetus for early growth. He continues and says that innovations users
imitators and others are intimate by involved in all cases and cross-fertilization occurs
to the benefit of many. The key to profits is often a combination of an inventive
genius patent innovation, and marketing muscle.
Creativity in science and technology must be couple with quality and efficiency of
production and with the ability to commercialize and to bring new ideas, products,
and processes to the market place. For business sustainability technology innovation
is the key to penetrate new markets, create customers loyalty and word of competition
hence create profits and more growth. Maintaining technological capabilities is
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expensive in the short run but not having it can be fatal in the long run. Technology
strategies needs to be coordinated consciously with the overall strategy so that it
supports the organizations and it should be intended in the long term survival and
prosperity. With a well done technological capabilities can be used to revitalize and
strengthen the entire organization (Andrew, 2005).
2.2.2 Employee Competence

A competency is a set of defined behaviors that provide a structured guide enabling
the identification, evaluation and development of the behaviors in individual
employees. Employee competence as a combination of knowledge, skills and
behavior used to improve performance; or as the state or quality of being adequately
or well qualified, having the ability to perform a specific role. For instance,
management competency might include systems thinking and emotional intelligence,
and skills in influence and negotiation. Competency is also used as a more general
description of the requirements of human beings in organizations and communities.
Supplier competency is sometimes thought of as being shown in action in a situation
and context that might be different the next time a person has to act. In emergencies,
competent people may react to a situation following behaviors they have previously
found to succeed. To be competent a person would need to be able to interpret the
situation in the context and to have a repertoire of possible actions to take and have
trained in the possible actions in the repertoire, if this is relevant. Regardless of
training, competency would grow through experience and the extent of an individual
to learn and adapt (Shippmann et al., 2000).
Competencies provide organizations with a way to define in behavioral terms what it

is that people need to do to produce the results that the organization desires, in a way
that is in keep with its culture. By having competencies defined in the organization, it
allows employees to know what they need to be productive. When properly defined,
competencies, allows organizations to evaluate the extent to which behaviors
employees are demonstrating and where they may be lacking. For competencies
where employees are lacking, they can learn. This will allow organizations to know
potentially what resources they may need to help the employee develop and learn
those competencies. Competencies can distinguish and differentiate your organization
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from your competitors. While two organizations may be alike in financial results, the
way in which the results were achieve could be different based on the competencies
that fit their particular strategy and organizational culture. Lastly, competencies can
provide a structured model that can be used to integrate management practices
throughout the organization. Competencies that align their recruiting, performance
management, training and development and reward practices to reinforce key
behaviors that the organization values (Kesser, 2003).
Employee competencies required for a post are identified through job analysis or task
analysis, using techniques such as the critical incident technique, work diaries, and
work sampling. A future focus is recommended for strategic reasons. Competencies
refer to skills or knowledge that leads to superior performance. These are formed
through an individual/organization’s knowledge, skills and abilities and provide a
framework for distinguishing between poor performances through to exceptional
performance. Supplier competencies can apply at organizational, individual, team,
and occupational and functional levels. Competencies are individual abilities or
characteristics that are key to effectiveness in work. Supplier competencies are the
characteristics of a manager that lead to the demonstration of skills and abilities,
which result in effective performance within an organizational area (Kesser, 2003).
Once the job requirements have been clarified, then competency interviewing helps
interviewers look for evidence of those requirements in each candidate. For people
already in jobs, competencies provide a way to help identify opportunities for growth
within their jobs. Employee competencies are not fixed they can usually be developed
with effort and support. Employees and their managers together can identify which
competencies would be most helpful to work on to improve the employee’s
effectiveness. They can then integrate that into a learning plan that may include on-
the-job experience, classroom training, or other developmental activities. Supplier
competencies are not a tool to be used for evaluating people for layoffs. Competencies
are only a way of talking about what helps people get results in their jobs. What
matters is performance being effective and meeting job expectations (Sanghi, 2004).
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Competency models can help organizations align their initiatives to their overall
business strategy. By aligning competencies to business strategies, organizations can
better recruit and select employees for their organizations. Competencies have been
become a precise way for employers to distinguish superior from average or below
average performance. The reason for this is because competencies extend beyond
measuring baseline characteristics and or skills used to define and assess job
performance. In addition to recruitment and selection, a well sound Competency
Model will help with performance management, succession planning and career
development (Gupta, 2007).
Companies with specific strengths in the marketplace, such as data storage or the
development of accounting applications, can be said to have a core competency in that
area. The core part of the term indicates that the individual has a strong basis from
which to gain the additional competence to do a specific job or that a company has a
strong basis from which to develop additional products. Competency as a measurable
pattern of knowledge, skills, abilities, behaviors, and other characteristics that an
individual needs to perform work roles or occupational functions successfully.
Competencies specify the show of performing job tasks, or what the person needs to
do the job successfully. Competencies represent a whole-person approach to assessing
individuals. Competencies tend to be either general or technical. General
competencies reflect the cognitive and social capabilities required for job performance
in a variety of occupations. On the other hand, technical competencies are more
specific as they are tailored to the particular knowledge and skill requirements
necessary for a specific job (Shippmann et al., 2000).
Employee competency mapping is a process through which one assesses and

determines one's strengths as an individual worker and in some cases, as part of an
organization. It generally examines two areas: emotional intelligence or emotional
quotient and strengths of the individual in areas like team structure, leadership, and
decision-making. Large organizations frequently employ some form of competency
mapping to understand how to most effectively employ the competencies of strengths
of workers. They may also use competency mapping to analyze the combination of
strengths in different workers to produce the most effective teams and the highest
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quality work. Competency development is the design of a competency model to be
used by an organization. As challenges change, businesses need to adapt. Individuals
need to know how to respond, and what specifically they need to do differently. They
need this information in credible language and models they can understand. The best
approach to competency framework design is to work closely with key players in
organizations to develop or update their competency models, positioning the content
to the end user needs. This ensures there is buy-in and ownership of the model at all
levels of staff (Sanghi, 2004).
2.2.3 Innovation
According to Jobber (2001) innovation is the application of better solutions that meet
new requirements, in-articulated needs, or existing market needs. This is
accomplished through more effective products, processes, services, technologies, or
ideas that are readily available to markets, governments and society. The term
innovation can be defined as something original and, as a consequence, new, that
"breaks into" the market or society. A definition consistent with these aspects would
be the following: "An innovation is something original, new, and important in
whatever field that breaks in to a market or society. While something novel is often
described as an innovation, in economics, management science, and other fields of
practice and analysis it is generally considered a process that brings together various
novel ideas in a way that they have an impact on society. Innovation differs from
invention in that innovation refers to the use of a better and, as a result, novel idea or
method, whereas invention refers more directly to the creation of the idea or method
itself.
In business and economics, innovation is the catalyst to growth. With rapid

advancements in transportation and communications over the past few decades, the
old world concepts of factor endowments and comparative advantage which focused
on an area’s unique inputs are outmoded for today’s global economy. Industries must
incessantly revolutionize the economic structure from within, that is innovate with
better or more effective processes and products, such as the shift from the craft shop
to factory. Continuously look for better ways to satisfy their consumer base with
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improved quality, durability, service, and price which come to fruition in innovation
with advanced technologies and organizational strategies (Joseph Schumpeter, 2004).
In the organizational context, innovation may be linked to positive changes in

efficiency, productivity, quality, competitiveness, market share, and others. However,
recent research findings highlight the complementary role of organizational culture in
enabling organizations to translate innovative activity into tangible performance
improvements. Organizations can also improve profits and performance by providing
work groups opportunities and resources to innovate, in addition to employee's core
job tasks. All organizations can innovate, including for example hospitals,
universities, and local governments. A performance-measurement data and
management system that allows officials to maintain statistics on trends to condition
of potholes. This system aids in better evaluation of policies and procedures with
accountability and efficiency in terms of time and money. Even mass transit systems
have innovated with hybrid bus fleets to real-time tracking at bus stands. In addition,
the growing use of mobile data terminals in vehicles that serves as communication
hubs between vehicles and control center automatically send data on location,
passenger counts, engine performance, mileage and other information. This tool helps
to deliver and manage transportation systems (Jobber, 2001).
Still other innovative strategies include hospitals digitizing medical information in

electronic medical records. For example, the U.S. Department of Housing and Urban
Development's HOPE VI initiatives turned severely distressed public housing in
urban areas into revitalized, mixed-income environments; the Harlem Children’s Zone
used a community-based approach to educate local area children; and the
Environmental Protection Agency's brownfield grants facilitates turning over
brownfields for environmental protection, green spaces, community and commercial
development (Kotler, 1996).
According to Peter F. Drucker (1989) there are several sources of innovation. It can
occur as a result of a focus effort by a range of different agents, by chance, or as a
result of a major system failure. The general sources of innovations are different
changes in industry structure, in market structure, in local and global demographics,
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in human perception, mood and meaning, in the amount of already available scientific
knowledge, etc. Original model of three phases of the process of Technological
Change. In the simplest linear model of innovation the traditionally recognized source
is manufacturer innovation. This is where an agent (person or business) innovates in
order to sell the innovation.
According to Jobber (2001) innovation by businesses is achieved in many ways, with

much attention now given to formal research and development (R&D) for
"breakthrough innovations". R&D help spur on patents and other scientific
innovations that leads to productive growth in such areas as industry, medicine,
engineering, and government. Yet, innovations can be developed by less formal on-
the-job modifications of practice, through exchange and combination of professional
experience and by many other routes. The more radical and revolutionary innovations
tend to emerge from R&D, while more incremental innovations may emerge from
practice but there are many exceptions to each of these trends.
According to Kotler (1996) an important innovation factor includes customers buying

products or using services. As a result, firms may incorporate users in focus groups
(user centered approach), work closely with so called lead users (lead user approach)
or users might adapt their products themselves. The lead user method focuses on idea
generation based on leading users to develop breakthrough innovations. U-STIR, a
project to innovate Europe’s surface transportation system, employs such workshops.
Regarding this user innovation, a great deal of innovation is done by those actually
implementing and using technologies and products as part of their normal activities.
In most of the times user innovators have some personal record motivating them.
Sometimes user-innovators may become entrepreneurs, selling their product, they
may choose to trade their innovation in exchange for other innovations, or they may
be adopted by their suppliers. Nowadays, they may also choose to freely reveal their
innovations, using methods like open source. In such networks of innovation the users
or communities of users can further develop technologies and reinvent their social
meaning.
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Davila et al. (2006) states that programs of organizational innovation are typically
tightly linked to organizational goals and objectives, to the business plan, and to
market competitive positioning. One driver for innovation programs in corporations is
to achieve growth objectives. As Companies cannot grow through cost reduction and
reengineering alone... Innovation is the key element in providing aggressive top-line
growth, and for increasing bottom-line results. One survey across a large number of
manufacturing and services organizations found, ranked in decreasing order of
popularity, that systematic programs of organizational innovation are most frequently
driven by: Improved quality, Creation of new markets, Extension of the product
range, Reduced labor costs, Improved production processes, Reduced materials,
Reduced environmental damage, Replacement of products/services, Reduced energy
consumption, Conformance to regulations.
These goals vary between improvements to products, processes and services and
dispel a popular myth that innovation deals mainly with new product development.
Most of the goals could apply to any organization be it a manufacturing facility,
marketing firm, hospital or local government. Whether innovation goals are
successfully achieved or otherwise depend greatly on the environment prevailing in
the firm. Conversely, failure can develop in programs of innovations. The causes of
failure have been widely researched and can vary considerably. Some causes will be
external to the organization and outside its influence of control. Others will be internal
and ultimately within the control of the organization. Internal causes of failure can be
divided into causes associated with the cultural infrastructure and causes associated
with the innovation process itself. Common causes of failure within the innovation
process in most organizations can be distilled into five types: Poor goal definition,
Poor alignment of actions to goals, Poor participation in teams, poor monitoring of
results, Poor communication and access to information (Kotler, 1996).
2.2.4 Brand Equity

According to Armstrong (2006) Brand equity is a phrase used in the marketing
industry which describes the value of having a well-known brand name, based on the
idea that the owner of a well-known brand name can generate more money from
products with that brand name than from products with a less well known name, as
18
consumers believe that a product with a well-known name is better than products with
less well-known names. Some marketing researchers have concluded that brands are
one of the most valuable assets a company has, as brand equity is one of the factors
which can increase the financial value of a brand to the brand owner, although not the
only one. Elements that can be included in the valuation of brand equity include (but
not limited to): changing market share, profit margins, consumer recognition of logos
and other visual elements, brand language associations made by consumers,
consumers' perceptions of quality and other relevant brand values.
The value premium that a company realizes from a product with a recognizable name
as compared to its generic equivalent. Companies can create brand equity for their
products by making them memorable, easily recognizable and superior in quality and
reliability. Mass marketing campaigns can also help to create brand equity. If
consumers are willing to pay more for a generic product than for a branded one,
however, the brand is said to have negative brand equity. This might happen if a
company had a major product recall or caused a widely publicized environmental
disaster (Cole, 2004).
Consumers' knowledge about a brand also governs how manufacturers and advertisers
market the brand. Brand equity is created through strategic investments in
communication channels and market education and appreciates through economic
growth in profit margins, market share, prestige value, and critical associations.
Generally, these strategic investments appreciate over time to deliver a return on
investment. This is directly related to marketing ROI. Brand equity can also
appreciate without strategic direction. A Stockholm University study in 2011
documents the case of Jerusalem's city brand. The city organically developed a brand,
which experienced tremendous brand equity appreciation over the course of centuries
through non-strategic activities. A booming tourism industry in Jerusalem has been
the most evident indicator of a strong ROI (Armstrong, 2006).
According Jobber (2001) brand equity is strategically crucial, but famously difficult to
quantify. Many experts have developed tools to analyze this asset, but there is no
universally accepted way to measure it. As one of the serial challenges that marketing
19
professionals and academics find with the concept of brand equity, the disconnect
between quantitative and qualitative equity values is difficult to reconcile.
Quantitative brand equity includes numerical values such as profit margins and
market share, but fails to capture qualitative elements such as prestige and
associations of interest. Overall, most marketing practitioners take a more qualitative
approach to brand equity because of this challenge. In a survey of nearly 200 senior
marketing managers, only 26 percent responded that they found the "brand equity"
metric very useful.
The purpose of brand equity metrics is to measure the value of a brand. A brand
encompasses the name, logo, image, and perceptions that identify a product, service,
or provider in the minds of customers. It takes shape in advertising, packaging, and
other marketing communications, and becomes a focus of the relationship with
consumers. In time, a brand comes to embody a promise about the goods it identifies
promise about quality, performance, or other dimensions of value, which can
influence consumers' choices among competing products. When consumers trust a
brand and find it relevant, they may select the offerings associated with that brand
over those of competitors, even at a premium price. When a brand's promise extends
beyond a particular product, its owner may leverage it to enter new markets. For all
these reasons, a brand can hold tremendous value, which is known as brand equity.
Brand Equity is best managed with the development of Brand Equity Goals, which are
then used to track progress and performance (Armstrong, 2006).
One situation when brand equity is important is when a company wants to expand its
product line. If the brand's equity is positive, the company can increase the likelihood
that customers will buy its new product by associating the new product with an
existing, successful brand. For example, if Campbell's releases a new soup, it would
likely keep it under the same brand name, rather than inventing a new brand. The
positive associations customers already have with Campbell's would make the new
product more enticing than if the soup had an unfamiliar brand name (Jobber, 2001).
20
2.2.5 Competition
Competition is the rivalry among sellers trying to achieve such goals as increasing
profits, market share, and sales volume by varying the elements of the marketing mix:
price, product, distribution, and promotion. Merriam-Webster defines competition in
business as "the effort of two or more parties acting independently to secure the
business of a third party by offering the most favorable terms. It was described by
Adam Smith in The Wealth of Nations (1776) and later economists as allocating
productive resources to their most highly-valued uses and encouraging efficiency.
Smith and other classical economists before Cornet were referring to price and non-
price rivalry among producers to sell their goods on best terms by bidding of buyers,
not necessarily to a large number of sellers nor to a market in final equilibrium.
Later microeconomic theory distinguished between perfect competition and imperfect

competition, concluding that no system of resource allocation is more Pareto efficient
than perfect competition. Competition, according to the theory, causes commercial
firms to develop new products, services and technologies, which would give
consumers greater selection and better products. The greater selection typically causes
lower prices for the products, compared to what the price would be if there was no
competition (monopoly) or little competition (oligopoly). It is generally accepted that
competition results in lower prices and a greater number of goods delivered to more
people. Less competition is perceived to exhibit higher prices with a fewer number of
goods delivered to fewer people (Lysons, 2004).
Competition is a business relation in which two parties offering the same service or
providing the same product to the market compete to gain customers. Competitors are
those organizations offering a product or service to the same category of the market.
Direct competitors are the most obvious competitors; these are other service providers
with same services to compete for the same customers. Competition is at the care of
the business success or failure of a firm. This means the sustainability of a firm may
be based on competition. It determines if a firm’s innovations, creativity, cohesive
culture or implementation can contribute to its performance. Intensity of competition
in an industry is neither a matter of coincidence or bad lack. Instead, it is rooted in its
underlying economic structure and political competitors (Brown, 2008).
21
According to Armstrong (2006) to be successful in the market, a firm must provide
greater custom value and satisfaction than its competitors. Pharmacies must offer
customers value to place its products offered in the minds of consumers against
competitors products and services and identify and access competitors then select
which competitors to attack or avoid. Therefore, for sustainability purposes in
processing they should be ready to compete with other organizations which are
competitors.
Packaging competition also takes various forms. Management task is to choose the
combination of ways in which any organization will compete. The various ways are
like rendering quality service to members, innovation, fashion, selling effort, location,
investment in capacity and cooperation with competitors. In every industry there are
products that tend to look alike. Somebody innovative in the industry comes up with a
better product or service. Others on seeing the popularity of the new product imitate
the popular product in order to take part of the market (Lysons, 2004).
Kotler (1996) stated that the market concept of competition is looking at the
companies that are trying to satisfy the same customer needs or serve the same
customer group. The key to identify customer is to link industry and market analysis
through mapping the product/market needs to gather information on competitors'
strategies, objectives, strengths/weaknesses and reaction patterns. The common
reactive profiles found among competitors are; the laid back competitors who react
swiftly and strongly to any assault on its terrain a predictable reaction pattern. Most
often, it is difficult to foresee what it will as based its economics history or anything
else.
It is important to understand your customer needs and satisfy them but at the same
time, it is more imperative to understand your competitors to help in sustainability of
any organization. The firm should constantly compare its products, price and channel,
launch more precise attacks on its competitors as well as prepare stronger defenses
against attacks and making similar offers to them, it should also pay attention to its
talent competitors who may offer new or other ways of to satisfy the medical services
22
since the fall of communism most business operators in the market economies are
characterized by competition in the market environment. This means that every
business that tries to sell a product or a service in the market environment is
constantly up against competition and that it is often competitors who determine how
much of a given product can be sold and what price and what rice can be asked for it
(Kotler 1996).
Kotler (1996) stated that it is important for an organization, for its sustainability to
understand the customer’s needs and satisfy them but at the same time it is more
imperative to understand your competitor more. The fact that a firm should constantly
compare its products or services in health industry as well as prepare stronger defense
attacks and making similar offers to them, it should also pay attention to its talent
competitors who may offer new or other ways to satisfy the same needs.
According to Cravens (1992) processing sustainability is the key objective to ensure

that through the competition offered by other health industry, the improvement of its
service delivery to its members is taken into greater consideration. Most
pharmaceutical institutions are offering their products and services at reduced cost.
These are health competitors who venture into accessibility of more customers in
terms of financial delivery and other services. Better and improved concern to the
welfare of pharmaceutical members in offering the best services than other health
institutions will counter- compete them and engineer the sustainability of the
pharmaceuticals in tough economic times. Market accessibility is another word for
market opportunity which means a situation in which combination of factors creates
the potential for sales of the company's products or services. This improves the
competitors and sustaining its growth.
2.3 Review of Critical Literature

Martinich (1997) states that technology can be most broadly defined as the entities,
both material and immaterial, created by the application of mental and physical effort
in order to achieve some value. In this usage, technology refers to tools and machines
that may be used to solve real-world problems. It is a far-reaching term that may
include simple tools, such as a crowbar or wooden spoon, or more complex machines,
23
such as a space station or particle accelerator. Although this is true, the author failed
to show us how technology affects the non financial incentives on employee retention
in the hospitality industry in Kenya. This problem created the need for study to be
conducted to fill the gaps left.
According to Gupta (2007) a competency is a set of defined behaviors that provide a

structured guide enabling the identification, evaluation and development of the
behaviors in individual employees. Employee competence as a combination of
knowledge, skills and behavior used to improve performance; or as the state or quality
of being adequately or well qualified, having the ability to perform a specific role. For
instance, management competency might include systems thinking and emotional
intelligence, and skills in influence and negotiation. Whereas this is true the author
failed to show us how employee competence affects non financial incentives on
employee retention in the hospitality industry in Kenya. This study intended to find
out how employee competence affects non financial incentives on employee retention
in the hospitality industry in Kenya.
Kotler (1996) Innovation is the application of better solutions that meet new
requirements, in-articulated needs, or existing market needs. This is accomplished
through more effective products, processes, services, technologies, or ideas that are
readily available to markets, governments and society. In business and economics,
innovation is the catalyst to growth. With rapid advancements in transportation and
communications over the past few decades, the old world concepts of factor
endowments and comparative advantage which focused on an area’s unique inputs are
outmoded for today’s global economy. Although this is true, the author failed to show
us how innovation affects non financial incentives on employee retention in the
hospitality industry in Kenya. This problem created the need for study to be
conducted to fill the gaps left.
Lysons (2004) defines brand equity as a phrase used in the marketing industry which
describes the value of having a well-known brand name, based on the idea that the
owner of a well-known brand name can generate more money from products with that
brand name than from products with a less well known name, as consumers believe
24
that a product with a well-known name is better than products with less well-known
names. Some marketing researchers have concluded that brands are one of the most
valuable assets a company has, as brand equity is one of the factors which can
increase the financial value of a brand to the brand owner, although not the only one.
Although this is true, the author failed to show us how brand equity affects non
financial incentives on employee retention in the hospitality industry in Kenya. This
problem created the need for study to be conducted to fill the gaps left.
Competition is said to exist when there is more than one business selling similar goods,
providing similar services. Competition removes the element of monopoly in business
industry. This gives the consumer a variety to choose from the several products available in
the market. Although this is true, the author failed to show us how Competition affects the
non financial incentives on employee retention in the hospitality industry in Kenya.
This study intended to find out how competition affects non financial incentives on
employee retention in the hospitality industry in Kenya.
2.4 Summary and Gaps to be filled

Technology deals with the creation and use of technical means and their interrelation
with life, society, and the environment, drawing upon such subjects as industrial arts,
engineering, applied science, and pure science. A successful organization has its
foundation in the effectiveness of their communication skills; all employees should be
able to communicate at the workplace and with their customers. Technology allows
individuals and organizations to be able to communicate better in the workplace.
Managers embrace technology and encourage workers to enable themselves and their
co-workers to work smarter, faster and more productively.
Competency is used as a more general description of the requirements of human

beings in organizations and communities. Supplier competency is sometimes thought
of as being shown in action in a situation and context that might be different the next
time a person has to act. In emergencies, competent people may react to a situation
following behaviors they have previously found to succeed. To be competent a person
would need to be able to interpret the situation in the context and to have a repertoire
25
of possible actions to take and have trained in the possible actions in the repertoire, if
this is relevant.
In the organizational context, innovation may be linked to positive changes in

efficiency, productivity, quality, competitiveness, market share, and others. However,
recent research findings highlight the complementary role of organizational culture in
enabling organizations to translate innovative activity into tangible performance
improvements. Organizations can also improve profits and performance by providing
work groups opportunities and resources to innovate, in addition to employee's core
job tasks.
The value premium that a company realizes from a product with a recognizable name
as compared to its generic equivalent. Companies can create brand equity for their
products by making them memorable, easily recognizable and superior in quality and
reliability. Mass marketing campaigns can also help to create brand equity. If
consumers are willing to pay more for a generic product than for a branded one,
however, the brand is said to have negative brand equity.
Competition is a business relation in which two parties offering the same service or
providing the same product to the market compete to gain customers. Competitors are
those organizations offering a product or service to the same category of the market.
Direct competitors are the most obvious competitors; these are other service providers
with same services to compete for the same customers. Competition is the rivalry in
which every seller tries to get what other sellers are seeking at the same time: sales,
profit, and market share by offering the best practicable combination of price, quality,
and service.
26
2.5 Conceptual Framework
Figure 2.1 Conceptual Framework

Independent Variables Dependent Variable
Technology
Employee Competence
Customer Retention in
Innovation
the Hospitality Industry
Brand Equity
Source:Competition
AutLogisticshor (
Source: Author (2019)
2.5.1 Technology
Technology can be most broadly defined as the entities, both material and immaterial,
created by the application of mental and physical effort in order to achieve some
value. In this usage, technology refers to tools and machines that may be used to solve
real-world problems. It is a far-reaching term that may include simple tools, such as a
crowbar or wooden spoon, or more complex machines, such as a space station or
particle accelerator.

A competency is a set of defined behaviors that provide a structured guide enabling
the identification, evaluation and development of the behaviors in individual
employees. Employee competence as a combination of knowledge, skills and
behavior used to improve performance; or as the state or quality of being adequately
or well qualified, having the ability to perform a specific role.
27
2.5.3 Innovation
An innovation is something original, new, and important in whatever field that breaks
in to a market or society. While something novel is often described as an innovation,
in economics, management science, and other fields of practice and analysis it is
generally considered a process that brings together various novel ideas in a way that
they have an impact on society.
2.5.4 Brand Equity

Brand equity is a phrase used in the marketing industry which describes the value of
having a well-known brand name, based on the idea that the owner of a well-known
brand name can generate more money from products with that brand name than from
products with a less well known name, as consumers believe that a product with a
well-known name is better than products with less well-known names.
2.5.5 Competition
Competition is the rivalry among sellers trying to achieve such goals as increasing
profits, market share, and sales volume by varying the elements of the marketing mix:
price, product, distribution, and promotion. Therefore a firm should pay attention to
latent customer who may offer new or other ways to satisfy the same needs. Bigger
business enterprise they benefit from economies of scale, offer the same goods as the
small scale but at lower price which affect the pricing in the enterprise.
28
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter represents the research design, target population, description of the
instruments that will be used for the data collection and data analysis procedure
applied the researcher.
3.2 Study Design

A study design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure Kothari, (2004). A descriptive research design was used in this study since
it enabled the researcher to seek new ideas from the respondents and develop an
insight to the problems under study. Questionnaires as a method of collecting data
were used whereby they were issued out to the selected population.
3.3 Target Population

Target population is the complete set of individuals, cases or objects with some
common characteristic to which the researcher wants to generalize the results of the
study (Mugenda and Mugenda, 1999). The study focused mainly on the employees of
the company targeted in sales and marketing department in the following categories,
which had a population of 92 numbers of persons.
Table 3.1 Target Population

Category Frequency Percentages
Senior Managers 4 4
Middle Management 6 7
Operational Level 82 89
Total 92 100

3.4 Sample Design
29
Sampling is a procedure by which some elements of the population are selected as
representatives of the total population through the use of probability to acquire a
representative degree of reliability in the selected area, (Saleemi, 1997). Stratified
random sampling was used because the group was heterogeneous and the researcher
wanted each member of the target population to have an equal chance of participating
in the study. The study used a sample size of 50% of the targeted population.
Table 3.2 Sample Size
Category Frequency Sample Size Percentage
Senior Managers 4 2 4
Middle 6 3 7
Management
Operational Level 82 41 89
Total 92 46 100
3.5 Data Collection Procedures

3.5.1 Questionnaires
This study used primary data that was collected through questionnaire. The
questionnaire were used because of its economy, also to ensure anonymity, permit use
of the standardized questions and has uniform procedures, provide time for subjects to
think about responses and it is easy to score. The questionnaire were made up of
closed ended and open ended questions to avoid being too rigid and quantify data
especially where structured items were used (Kothari, 2004). This method helped the
study to collect enough information, which was otherwise impossible using interviews
and observations. Secondary data was collected from published materials.
30
3.5.2 Validity and Reliability of Research Instruments
Validity refers to whether the research measures what it will intend to. Reliability can
be identified as the extent to which the measurement of a test remains consistent over
repeated tests of the same subject under identical conditions. A pilot study was done
to identify elements of study population and unit of analysis. During the study, draft
questions were pre tested to remove ambiguity and achieve high degree precision. On
the other hand, questions which did not yield the required data were discarded. All the
units of analysis were comprehensively studied and whole population taken into
account. Before the questionnaire being administered they underwent pretesting with
five respondents to confirm validity and reliability of the research instrument and also
ascertain whether the target population was able to comprehend and give information
needed by the researcher.
3.6 Data Analysis Methods

This involved qualitative and quantitative analysis. The data collected by use of
various instruments was first edited to get the relevant data for the study. Data
analysis is a process of gathering, modeling and transformation data with the goal of
highlighting useful information, suggesting conclusions and supporting decision
making hence preparing crude data into interpretable designs, (Mugenda, 2003). Data
was analyzed using statistical methods by use of tables, charts, frequencies and
percentages. It envisaged that the comparative methods were the best since the data is
quantitative in nature prior to the summarization of the data. The questionnaires were
checked to ensure that they were fully completed and accurate.
31
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF FINDINGS
4.1 Introduction
In this chapter the researcher carries out an analysis of data using both quantitative
and qualitative methods. The analysis process is done on the basis of the variables of
the research objectives. The analysis and interpretation of data is done by the help of
graphs, pie charts and through judgment due to observations made.
4.2 Presentations of Findings

Table 4.1 Response Rate
Category Frequency Percentage
Response 39 85
Non Response 7 15
Total 46 100
Figure 4.1 Response Rate
From the analysis in table 4.1 and figure 4.1 indicates the response rate for the actual
representation of the population. Out of 46 questionnaires distributed 39 were
returned, that is 84% of the total population and only 7 which is 15% was not
returned. This showed that the response rate was good enough for the researcher to
proceed on.
32
4.2.2 Gender Analysis
Table 4.2 Gender
Male 22 56
Female 17 44
Total 39 100
Figure 4.2 Gender Analysis
Analysis from the above table 4.2 and figure 4.2 shows that 56% of the respondents
were male while 44% were Female. This can be interpreted that majority of the
respondents were male.
33
4.2.3 Management Levels
Table 4.3 Management Levels
Senior Managers 2 5
Middle Management 7 18
Support staff 30 77
Total 39 100
Figure 4.3 Management Levels
Table 4.3 and figure 4.3 indicate the response of the management levels of persons
who filled the questionnaires. Senior Management respondent by 5%, middle
management 18%, while the response of support staff being the highest with 77%.
34
4.2.4 Number of years of service
Table 4.4 Number of years of service
Less than 2 years 5 13
2 – 4 years 12 30
Above 5 years 22 57
Total 39 100
Figure 4.4 Number of years of service
Table 4.4 and figure 4.4 above indicates the analysis of work experience. 13% had
less than 2 years, 30% had 2-4 years’ experience, and 57% had above 5 years of
experience. This shows that most of the respondents were above 5 years.
4.2.5 Highest level of Education

35
Table 4.5 Highest level of Education
Primary 5 13
Secondary 8 21
College 14 36
University 12 30
Total 39 100
Figure 4.5 Highest level of Education
Table 4.5 and figure 4.5 indicated that majority of the respondents 30% were
graduates. 36% of respondents had college education while 21% had secondary
education. 13% of respondents had primary education. This indicates therefore that
most of the respondents were learned, hence well informed of their rights and
expectations as both internal and external customers of the organization.
4.2.6 Technology
36
Table 4.6 Whether Technology Affects Non financial incentives on employee
retention in the Hospitality Industry
Yes 32 82
No 7 18
Total 39 100
Figure 4.6 Whether Technology Affects Non financial incentives on employee

Analysis from the table 4.6 and figure 4.6 above indicates that 82% of the respondents
agreed that technology affects non financial incentives on employee retention in the
hospitality industry in Kenya whereas 18% of the respondents disagreed. Majority of
the respondents agreed that technology affects non financial incentives on employee
retention in the hospitality industry in Kenya.
4.2.7 Technology
37
Table 4.7 Extent to Which Technology Affects Non financial incentives on
employee retention in the Hospitality Industry
Very Large Extent 22 56

Large Extent 10 26
Low Extent 5 13
Very Low Extent 2 5
Total 39 100
Figure 4.7 Extent to Which Technology Affects Non financial incentives on

From the table 4.7 and figure 4.7 above majority of respondents indicated that
technology affects non financial incentives on employee retention in the hospitality
industry. This was represented by 56% who indicated very large extent, 26% large
extent, 13% low extent while 5% indicated that very low extent. This showed that
technology affects the organization in a very large extent.

38
Table 4.8 Whether Employee Competence Affect Non financial incentives on
Yes 31 79
No 8 21
Total 39 100
Figure 4.8 Whether Employee Competence Affect Non financial incentives on

From the above table 4.8 and chart 4.8, respondent of 79% indicated that employee
competence affect non financial incentives on employee retention in the hospitality
industry while 21% indicated that employee competence does not affect the
organization. Majority agreed that employee competence do affect non financial
incentives on employee retention in the hospitality industry in Kenya.
39
Table 4.9 Extent to Which Employee Competence Affect Non financial incentives
on employee retention in the Hospitality Industry
Very High Extent 20 51
High Extent 12 31
Moderate Extent 4 10
Low Extent 2 5
None At All 1 3
Total 39 100
Figure 4.9 Extent to Which Employee Competence Affect Non financial

incentives on employee retention in the Hospitality Industry
From the findings in table 4.9 and figure 4.9 the response of 51% indicated very high
extent, 31% high extent, 10% moderate extent, 5% indicated low extent while 3%
indicated none at all. From these findings it was indicated that employee competence
affects non financial incentives on employee retention in the hospitality industry in a
very high extent.
4.2.10 Innovation
40
Table 4.10 Whether Innovation Affects Non financial incentives on employee
Yes 34 87
No 5 13
Total 39 100
Figure 4.10 Whether Innovation Affects Non financial incentives on employee

Analysis from the table 4.10 and figure 4.10 above indicates that 87% of the
respondents agreed that innovation affects non financial incentives on employee
retention in the hospitality industry whereas 13% of the respondents disagreed.
Majority of the respondents agreed that innovation affects non financial incentives on
4.2.11 Innovation
41
Table 4.11 Effects of Innovation on Non financial incentives on employee
retention
Very High 20 51
High 12 31
Moderate 5 13
Low 2 5
Total 39 100
Figure 4.11 Effects of Innovation on Customer
Analysis from the above table 4.11 and figure 4.11 indicates that 51% of the
respondents agreed that innovation affects non financial incentives on employee
retention in the hospitality industry in a very high, 31% high, 13% moderate and 5%
low extent. Majority of the respondents agreed that innovation affects non financial
incentives on employee retention in the hospitality industry in Kenya with a very high
extent.
4.2.12 Brand Equity

42
Table 4.12 Whether Brand Equity Affect Non financial incentives on employee
Yes 29 74
No 30 26
Total 39 100
Figure 4.12 Does Brand Equity Affect Non financial incentives on employee
Table 4.12 and figure 4.12 showed the response on effects of brand equity with 74%
indicating it does affect non financial incentives on employee retention in the
hospitality industry while 26% diagreed. Majority of the respondents agreed that
brand equity do affect non financial incentives on employee retention in the
hospitality industry
4.2.13 Brand Equity
43
Table 4.13 Effects of Brand Equity on Non financial incentives on employee
retention
Large Extent 23 59
Moderate 11 28
Small Extent 4 10
No Extent 1 3
Total 39 100
Figure 4.13 Effects of Brand Equity Affect Non financial incentives on employee
retention
Table 4.13 and figure 4.13 from the data analyzed the researcher identified that the
respondents agreed that brand equity affects non financial incentives on employee
retention in the hospitality industry in a large extent. This was represented by 59%,
moderate was 28%, small extent were 10% while no extent had 3%.
4.2.14 Competition
44
Table 4.14 Effects of Competition on Non financial incentives on employee
retention
Yes 33 85
No 6 15
Total 39 100
Figure 4.14 Effects Competition of Non financial incentives on employee

retention
Table 4.14 and figure 4.14 showed the response on effects of competition with 85%
indicating it does affect the organization while 15% diagreed. Majority of the
respondents agreed that competition does affect the non financial incentives on
4.2.15 Competition
45
Table 4.15 Extent to Which Competition Affects Non financial incentives on
Large Extent 18 46
Moderate 14 36
Small Extent 6 15
No Extent 1 3
Total 39 100
Figure 4.15 Extent to Which Competition Affects Non financial incentives on

From the table 4.15 and figure 4.15 a response of 3% indicated no extent, 15% small
extent, 36% indicated moderate while 46% indicated large extent. From this
competition does affect non financial incentives on employee retention in the
hospitality industry in Kenya at a large extent.
4.3 Summary of Data Analysis

46
4.3.1 General Information
Out of 46 questionnaires distributed 39 were returned, that is 85% of the total
population and only 7 which is 15% was not returned. Analysis from the above table
4.2 and figure 4.2 shows that 56% of the respondents were male while 44% were
Female. This can be interpreted that majority of the respondents were male. Senior
Management respondent by 5%, middle management 18%, while the response of
support staff being the highest with 77%. 13% had less than 2 years, 30% had 2-4
years’ experience, and 57% had above 5 years of experience. Majority of the
respondents 30% were graduates, 36% of respondents had college education while
21% had secondary education and 13% of respondents had primary education.
4.3.2 Technology
Analysis shows that technology affects non financial incentives on employee retention
in the hospitality industry in Kenya; this was represented by 82% of the respondents
who agreed that technology affects non financial incentives on employee retention in
the hospitality industry whereas 18% of the respondents disagreed. From the study
analysis the respondents suggested that technological improvement be advanced in the
organization for effective and efficient in non financial incentives on employee
retention.The management should invest more on their technology for the
improvement of general wellbeing of their services as much as creating awareness in
the market as not only they are in the market but there are more players.

From the study analysis it was noted that employee competence and the training
process carried out in the organization does affect non financial incentives on
employee retention in the hospitality industry in Kenya. This was represented by 79%
of the respondents who said that employee competence do affect non financial
incentives on employee retention in the hospitality industry whereas 21% of the
respondents disagreed with the rest.
4.3.4 Innovation
47
From the analysis, respondents of 87% indicated that innovation does affects the non
financial incentives on employee retention in the hospitality industry Kenya while
13% showed that it does not affect the organization. Organizations can also improve
profits and performance by providing work groups opportunities and resources to
innovate, in addition to employee's core job tasks.
4.3.5 Brand Equity

Majority of respondents pointed out that brand equity affects non financial incentives
on employee retention in the hospitality industry in Kenya and this was indicated by
74% of the respondents who indicated that it does affect the organization while 26%
of them disagreed; Managers should ensure that brad equity plans are implemented.
This will ensure more loyalty from the customers at any given time.
4.3.6 Competition
Analysis shows that competition do affect non financial incentives on employee
retention in the hospitality industry in Kenya; this was represented by 85% of the
respondents who agreed that competition affects non financial incentives on employee
retention in the hospitality industry in Kenya whereas 15% of the respondents
disagreed. This competition can easily hinder non financial incentives on employee
retention in the hospitality industry
CHAPTER FIVE
48
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter summarizes, discusses and makes conclusions on the findings of this
study in relation to the objectives put forward in chapter one. It also discusses the
recommendations for further research as well as recommendations for policy and
practice.
5.2 Summary of Findings

5.2.1 To What Extent Does Technology Affect Non financial incentives on
employee retention in the Hospitality Industry?
Analysis shows that technology do affect non financial incentives on employee
retention in the hospitality industry in Kenya; majority of respondents indicated that
technology affect the organization. This was represented by 56% who indicated very
large extent, 26% large extent, 13% moderate while low extent was 5% indicated.
This showed that managements advances as technology advances and this enabled
them to meet competition accordingly. The respondents indicated that the technology
has greatly changed and transformed the management of hospitably industry.
5.2.2 To What Extent Does Employee Competence Affect Non financial

incentives on employee retention in the Hospitality Industry?
From the study analysis it was noted that employee competence do Affect non
financial incentives on employee retention in the hospitality industry . The response of
51% indicated very high extent, 31% high extent, 10% moderate extent, 5% indicated
low extent while 3% indicated none at all. This showed that, the employees of the
organization are well trained and have the respective skills to perform the tasks
assigned to them. The respondents indicated that the employee skills has greatly
changed and transformed non financial incentives on employee retention in Kenya.
5.2.3 To What Extent Does Innovation Affect Non financial incentives on

From the analysis it was indicates that 51% of the respondents agreed that innovation
do affect non financial incentives on employee retention in the hospitality industry in
a very high, 31% high, 13% moderate and 5% low extent. Lack of innovation in the
49
organization can lead to challenges facing non financial incentives on employee
retention in the hospitality industry. This therefore calls for managers to seek enough
resources to sustain their activities.
5.2.4 How Does Brand Equity Affect Non financial incentives on employee
retention in the Hospitality Industry?
From the study analysis it was noted that brad equity do affect non financial
incentives on employee retention in the hospitality industry. A response of 3%
indicated no extent, 10% small extent, 28% indicated moderate while 59% indicated
large extent. Managers should ensure that brading decisions and plans are
implemented and controlled in efficient and effective way.
5.2.5 To What Extent Does Competition Affect Non financial incentives on

Researcher identified that the respondents noted that competition does affect non
financial incentives on employee retention in the hospitality industry in a large extent.
This was represented by 46%, moderate 36%; small extent 15% while no extent had
3%. Competition can easily hinder non financial incentives on employee retention in
the hospitality industry, thus leading to them under performing in terms of low sales
which affect their overall perfomance.
5.3 Conclusions
The future company will operate with a digital nervous system.” Technology has an
impact on the organization as a whole for example linking the customers to the
system, can improve efficiently and more effectively by providing better service to
customers. The organization should invest more on technological knowhow because
this will provide them with an opportunity to increase on their service delivery to the
customers. Technology also gives the organization a point to ensure that the products
being offered are of high quality and can be produced faster and more effectively.
Employee competence is the ability of an individual to do a job properly. A

competency is a set of defined behaviors that provide a structured guide enabling the
identification, evaluation and development of the behaviors in individual employees.
50
It is also important for the management to ensure that training should be for all levels
of management that when they can achieve the much need objective of the firm.
Innovation is the catalyst to growth. Hospitality organizations must incessantly

revolutionize the economic structure from within, that is innovate with better or more
effective processes and products, such as the shift from the craft shop to factory.
Continuously look for better ways to satisfy their consumer base with improved
quality, durability, service, and price which come to fruition in innovation with
advanced technologies and organizational strategies.
Companies can create brand equity for their products by making them memorable,
easily recognizable and superior in quality and reliability. Mass marketing campaigns
can also help to create brand equity. If consumers are willing to pay more for a
generic product than for a branded one, however, the brand is said to have negative
brand equity.
Competition can easily hinder non financial incentives on employee retention in the
hospitality industry, thus leading to them under performing in terms of low sales
which affect their customer loyalty. Competition is said to exist when there is more
than one business selling similar goods, providing similar services. Competition
removes the element of monopoly in business sector. This gives the consumer a
variety to choose from the several products available in the market.
5.4 Recommendations
5.4.1Technology
The researcher calls for the company’s management to support the use of technology
as its impact can be ineffective without necessary internal support. They should also
encourage and promote the use of technology in various departments of the
organization as it will help to reduce operating costs and facilitate effectiveness of the
service being offered. This will enable effective and efficient non financial incentives
on employee retention in the hospitality industry.
51
Employee competence should be enhanced to improve on the performance of the
employees through taking them to seminars or holding workshops for them to learn
more on the necessary operations pertaining the well-being of the organization. This
will enable the organization to implement the policies passed for non financial
incentives on employee retention.
5.4.3 Innovation
Managers should ensure that the organization it’s more innovative because this will
help the company to come up with quality and many varieties in the market. This will
enable the company in gaining competitive advantage in the market thus ensuring non
financial incentives on employee retention in the hospitality industry.
5.4.4 Brad Equity

The organizations should effectively manage activities concerning brad equity. Brand
equity is important is when a company wants to expand its product line. If the brand's
equity is positive, the company can increase the likelihood that customers will buy its
new product by associating the new product with an existing, successful brand.
5.4.5 Competition
Competition always affects any organization regardless of which industry you are.
This competition affects non financial incentives on employee retention in the
hospitality industry. For any business venture to be successful, fighting off
competition is very important. The organization should ensure that they do well in
their core business which will enable them fight their competitors with ease.
5.5 Suggestions for Further Study

The research was only carried out on five variables. The researcher suggests that a
further study to be carried out to investigate the effects of company policy, cost and
management styles on non financial incentives on employee retention in the same
sector.
52
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54

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CHAPTER ONE

INTRODUCTION OF THE STUDY

1.2 Background of the Study

An assessment of the product or service quality provided by a business that measures

1.2.1 Profile of the Villa Rosa Kempinski Hotel

Director Director Director Director

Communication Supply Chain Brand Marketing

Source: Villa Rosa Kempinski Hotel (2019)

1.4 Objectives of the Study.

1.4.2 Specific Objective.

1.5 Research Questions

1.6.2 Other Hospitality Organizations

1.6.3 Other Researchers

1.7 Limitations of the Study

1.7.2 Lack of Cooperation

1.8 Scope of the Study

2.2 Review of Theoretical Literature

A modern example is the rise of communication technology, which has lessened

2.2.2 Employee Competence

Competencies provide organizations with a way to define in behavioral terms what it

Employee competency mapping is a process through which one assesses and

In business and economics, innovation is the catalyst to growth. With rapid

In the organizational context, innovation may be linked to positive changes in

Still other innovative strategies include hospitals digitizing medical information in

According to Jobber (2001) innovation by businesses is achieved in many ways, with

According to Kotler (1996) an important innovation factor includes customers buying

2.2.4 Brand Equity

Later microeconomic theory distinguished between perfect competition and imperfect

According to Cravens (1992) processing sustainability is the key objective to ensure

2.3 Review of Critical Literature

According to Gupta (2007) a competency is a set of defined behaviors that provide a

2.4 Summary and Gaps to be filled

Competency is used as a more general description of the requirements of human

In the organizational context, innovation may be linked to positive changes in

Figure 2.1 Conceptual Framework

Source: Author (2019)

2.5.2 Employee Competence

2.5.4 Brand Equity

3.2 Study Design

3.3 Target Population

Table 3.1 Target Population

Source: Author (2019)

Table 3.2 Sample Size

Category Frequency Sample Size Percentage

Source: Author (2019)

3.5 Data Collection Procedures

3.6 Data Analysis Methods

4.2 Presentations of Findings

Figure 4.1 Response Rate

Source: Author (2019)

Source: Author (2019)

Figure 4.2 Gender Analysis

Source: Author (2019)

Source: Author (2019)

Figure 4.3 Management Levels

Source: Author (2019)

Less than 2 years 5 13

Source: Author (2019)

Figure 4.4 Number of years of service

Source: Author (2019)

4.2.5 Highest level of Education

Source: Author (2019)

Figure 4.5 Highest level of Education