EMPLOYEE PERCEPTIONS OF STATUTORY DEDUCTIONS ON EMPLOYEE PRODUCTIVITY IN SELECTED CONFECTIONERY MANUFACTURING INDUSTRIES IN NAIROBI CITY COUNTY.
Loading...
Date
2025-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
Abstract
Employee productivity is important as it determines the value of the organization. In Nairobi, the confectionery industry has witnessed increased consumer demand and expanded marketing opportunities however, productivity challenges persist influenced by various factors such as management practices as well as working conditions. Understanding these factors is essential for enhancing efficiency and competitiveness in the industry. Therefore, to improve employee productivity manufacturing companies must have strategies that involve creative and innovative thinking, quality services and timeliness in achievement of tasks. The purpose of this study was to determine the effect of employee perceptions of statutory deductions on their productivity in confectionery industries in Nairobi. The research focused on specific objectives that were; to determine the effect of perceived fairness of statutory deductions, to examine the effect of administration of statutory deductions, to identify the effects of income level and to establish the effect of tax policies on employee productivity in confectionery industries in Nairobi. It also explored if organization culture had a moderating effect on the relationship between statutory deductions and employee productivity. The research was supported by the Expectancy theory, Equity theory, effort- reward imbalance theory and Hertz berg's two factor theory. A positivism philosophy was used to test the hypotheses through the use of a descriptive research design. The design used quantitative data. The research utilized simple random sampling technique to select a sample size of 73 employees from a target population of 90 employees in the selected confectionery industries for the study. The primary method of collecting data was through questionnaires. The researcher conducted a pilot study using a pre-test method where content, construct and criterion validity was ensured. To verify for reliability of the questionnaire it was tested using Cronbach’s Alpha value, with a values being > 0.70 showing that there was internal consistency. Diagnostic tests were conducted in the form of normality tests and multicollinearity tests using the Variance inflation Factor revealing a VIF < 3 which meant there was no multicollinearity between the variables. Descriptive statistics were used to present data in the form of percentages, mean, and standard deviation. As for inferential statistics multiple regressions analyzed the relationship between statutory deductions and employee productivity. Data was sorted, edited and analyzed using SPSS version 30 and regression analysis employed to show the relationship between the variables and data presented in diagrams and tables. The findings indicate that there was a significant positive relationship between employee perceptions of statutory deductions and employee productivity (0.734). Income level positively influences employee productivity (0.237) while perceived fairness (0.460) and tax policies (0.413) have a positive relationship with productivity but showed no statistically significant effect. Administration of statutory deductions demonstrated a negative relationship with productivity at (-0.589) suggesting that inefficiencies in statutory processes may hinder productivity. Organization culture showed a significant moderating effect on the relationship between statutory deductions and productivity implying that a supportive culture may offset negative impacts of deductions. Recommendations for practice from the study would be adopting equitable taxation models, having salary reviews for the employees ,enforcing fair and progressive tax policies as well as optimizing administrative efficiency and fostering a supportive culture that prioritizes employee well-being.
Description
Thesis
Keywords
Statutory deductions, employee productivity, employee perceptions, manufacturing industry, human resource management, confectionery firms, Nairobi City County, Kenya