Determinants of Intrinsic and Extrinsic Rewards on Employee Performance in Kapsara Tea Factory Company Trans Nzoia County Kenya

The purpose of the study was to analyse the determinants of extrinsic and intrinsic rewards on employee performance. The specific objectives were: To examine the effect of employee Motivation on organizational Performance; to evaluate the effect of Employee Commitment on Organizational Performance; to determine the effect of employee training on organizational performance in Kapsara Company Kitale, Trans Nzoia County. Literature was reviewed based on the study objectives. The study was conceptualized on two main theories which were incentive and process theories. It adopted a descriptive survey research design. It targeted a population of 60 employees from various departments including; the senior management, middle level managers, supervisors and the general workers. Census technique was used to select the sample of the study hence; all the population was targeted as a sample. Questionnaires were used as the primary tools for data collection. The instruments were tested for test reliability through a pilot study at Kiptagich tea factory which did not fall within the study area. Data was collected from the field, coded and cleaned of any missing variable and categorized manually according to the questionnaire items. It was then transferred into the computer sheet and processed using the statistical package for social sciences version 20.0. The data was analysed using a regression model and presented using frequency distribution tables and percentages. The study concluded that the most influential reward as a motivation driver is not fat salary, or additional responsibility but job security. Majority of the employees at the company are not committed as if they said get a similar job elsewhere they will leave. That employee training and development has an effect on performance especially learning on the job. Basing on the analysis of the collected data, the following recommendations were made: The Company should assure employees on job security given that many of them feel that it is through job security that they can give their best input hence performance. The company too should endeavour to ensure that there is promotion and growth, career advancement and as leading motivational drivers in the company if they have to realize optimum performance. The study entreats management to invest in a reward system that can improve on employee commitment as results show a poorly committed employee workforce. Employees who are not committed in their work cannot offer their maximum efforts for organizational growth to be realized. Management should set career advancement paths through training and development policy which seems to lack in the company. It should set aside funds to support employees who they could have trained. The company as well develops a training policy which should be aligned to the company’s business strategy.