ABSTRACT

The management of a corporate invests in motivating employees so as to improve their performance. The main purpose of the study was to investigate the effect of motivation on employee performance of parastatals in Kenya parastatals:  a case study of the postal corporation of Kenya. The study was anchored on Hertzberg’s two factor theory and Equity theory. The research adopted a descriptive research. The target population was 536 employees of PCK from which a sample of 107 employees was selected using stratified random sampling method. Primary data was collected using a questionnaire. The research used package for social sciences (SPSS) computer package for analysis. Regression analysis was used in determining the influence of motivation on employee performance. The findings were presented in the form of tables and figures. The study found out that if employees are motivated, their performance will be high.  The inferential results on effect of employee motivation on employee performance show R=0.697 indicating a strong positive correlation and R2=0.486 and there was a significant effect between employee motivation on employee performance. (t=9.726, p<0.05). From the study results it was concluded that employee motivation increases the employee morale and thus increases performance. Training of the staff also has a higher role as a motivator in influencing employee productivity in the Postal Corporation of Kenya.