Effect of Motivation on Employee Performance: A Case Study of South Nyanza Sugar Company Limited

Employee motivation is of critical importance with respect to employment relationships, but decisions related to motivation policy are difficult due to cost and ability of the company to attract and retain as well as control the behavior and attitudes of employees. Past studies do not clearly indicate the link between motivation policies and employee performance. The sugar industry is not an exception to this. This study focused on the effects of motivation practices on employee performance. The study focused on the sugar industry particularly the sugar industry in Kenya and more specifically Sony Sugar Company Limited. The study objectives were to establish the effects of basic pay, health compensation, bonus compensation, and employee recognition programs on the performance of SONY Sugar Company Limited. The research adopted a case study design with a focus on Sony Sugar Company Limited in Awendo sub county, Migori County - Kenya. The target population was 1008 employees of Sony Sugar Company Limited. The study sample size was 100 respondents who wereselected using stratified random sampling technique. The study further employed questionnaires as a data collection tool and the reliability of the research instrument was tested using Cronbachs Alpha coefficient and test re-test reliability coefficient. The research used both primary and secondary data which was then analyzed using descriptive statistics which involves the use of means, standard deviation, percentages and mean weights. Inferential statistics involved the use of regression and correlation analysis. The study established that all the motivation practices under study are adopted at SONY Sugar Company Limited to a moderate extent. However, employee recognition was highly rated as the company relies on it to influence employee performance. On the effect of the motivation practices on employee performance, the study established that health compensation practice is highly rated as it influences performance to a great extent. Bonus compensation was on the other hand rated least but at moderate extent. The regression results showed that all the Independent Variables have an effect on the Dependent Variable. Consequently, the study concluded that health compensation, bonus pay and employee recognition programs have a statistically significant effect on employee performance at SONY Sugar Company Limited and therefore the study recommends that these compensation practices be maximized to boost employee performance in SONY and across the sugar industry at large.