Abstract:
Organisational development (OD) interventions are structured programs designed
to solve a problem, which enables the organisation to attain its goals which are
critical in an age where organisation performance and return on investors is
important. Employee performance is how employees fulfil their duties and
complete the tasks assigned at the workplace on time. Increased employee
performance translates to higher output hence higher returns to factors of
production. It is on this note the paper aims to determine the relationship between
reward and compensation management and employee performance in not-forprofit organisations in Kenya using a case of select organisations within the South
Rift region. The study adopted a quantitative research design where a target
population of 500 respondents was used. The findings indicated that reward and
compensation initiatives had a significant positive relationship with employee
performance (β = 0.395; p = 0.000<0.05). The study recommends that there is a
need for organisations to have proper rewards and compensation in place to
enhance employee performance. More emphasis should be directed to reward and
compensation because it is the main contributors to employee performance.