EFFECTS OF EMPLOYEE ENGAGEMENT ON EFFECTIVE SERVICE

DELIVERY AMONG SMALL AND MEDIUM ACCOUNTANCY FIRMS IN

NAIROBI COUNTY

BY

LILIAN WAIRIMU NYANDIA

UNITED STATES INTERNATIONAL UNIVERSITY – AFRICA

SPRING 2020

EFFECT OF EMPLOYEE ENGAGEMENT ON SERVICE DELIVERY

AMONG SMALL AND MEDIUM ACCOUNTANCY FIRMS IN NAIROBI

COUNTY

BY

LILIAN WAIRIMU NYANDIA

A Research Project Report Submitted to the Chandaria School of

Business in Partial Fulfillment of the Requirement for the Degree of

Masters in Business Administration (GMBA)

UNITED STATES INTERNATIONAL UNIVERSITY – AFRICA

SPRING 2020

ii

STUDENT’S DECLARATION

I, the undersigned, declare that this is my original work and has not been submitted to

any other college, institution, or university other than the United States International

University in Nairobi for academic credit

Signed: _________________________ Date:____________________________

Lilian Wairimu Nyandia 660367

This Research Project has been presented for examination with my approval as the

appointed supervisor.

Signed: _______________________ Date:____________________________

Prof. Timothy Okech

Signed: _________________________ Date:____________________________

Dean, Chandaria School of Business

iii

COPY RIGHT

This Research Project report partly or whole should not be produced or distributed by

any form electronically, magnetic tape or mechanical including photocopying,

recording of any information, storage and retrieval systems without prior acquitting

permission from the author.

© 2019 Copyright, Lilian Wairimu Nyandia

iv

ACKNOWLEDGMENT

I would like to thank God the Almighty for giving me strength to write this Research

Project. I thank my supervisor, Prof. Timothy Okech for the support and guidance that

helped me to clear this project. I would like to thank the Management of the United

States international university. The university provided a conducive environment for

me to write this project. I would also like to thank all the lecturers who taught me

various units during my course work.

v

ABSTRACT

The purpose of this study was to investigate the effect of employee engagement on

effective service delivery among small and medium accountancy firms in Nairobi

County. The study was guided by the following research questions: What are the

effects of employee engagement on service delivery among small and medium

accountancy firms in Nairobi County? What are the strategies put in place to ensure

effective employee engagement among small and medium accountancy firms in

Nairobi County? What are the challenges faced in achieving employee engagement

among small and medium accountancy firms in Nairobi County?

The study adopted a descriptive research design. The study was conducted in

accountancy firms in Nairobi City County. The target population of this study

constituted human resource departments in the accountancy firms in Nairobi County.

The study used census method in collecting data from all the SMEs in consultancy

firms using a structured questionnaire that contained both open and closed ended

questions. The collected information was then analyzed using the Statistical Package

for Social Sciences (SPSS). The study used descriptive statistics including means,

standard deviation and frequency tables. In addition, inferential statistics including

Pearson Moment of Correlation, ANOVA and regression were computed.

On the first research question, the study established that employee engagement has

postive and significant effect on service delivery of an organization. The respondents

agreed that employees were more involved in their work, the firms had motivated

staffs in their company and employees were willing to go an extra mile to provide

quality services to customers. The results on the second research question indicated

that employee engagement strategies have postive and significant effect on service

delivery of the organization. Respondents noted that the firm communicated to all

employees the requirements for individuals to hold each position and that employees

were trained. In view of the third research question, the study revealed that the

challenges in employee engagement have postive and significant effect on service

delivery of the firm. Majority of the respondents revealed that they made sure that the

employees had morale when it came to performing their duties.

The study concludes that employee engagement has a positive effect on service

delivery since employees are more involved in their work, the firms have motivated

vi

staffs in their company, employees were willing to go an extra mile to provide quality

services to customers and employees have positive influence on profitability of the

business as reflected in the quality of services. On engagement strategies employed in

effective service delivery the study concluded that firm communicates to all

employees the requirements for individuals to hold each position. Employees are

trained and have mentorship programs while the firm promotes a learning culture

among employees for better performance. The study also concluded that firms made

sure that the employees have morale when it came to performing their duties, the firm

has employed good human resource practices in management of and also the

abruptness of change itself make it difficult for the firm to respond timely

The study recommended that for employee engagement initiatives to be successful,

they must be tailored to the unique needs and motivations of each individual. In order

to achieve this management should incorporate more financial based reward and

recognition systems as well as foster the adoption of indirect employee participation

tools.. Firms should also promote a learning culture among employees for better

performance and enlarge the job tasks for their employees from time to time. The

study also recommends that that top management's function should not only create

conditions for service delivery strategy plan, but also continuously monitor the

implementation process so as to ensure harmony among the influencing factors.

Firms should adopt use of performance based budgeting to improve service delivery

within the companies should be adopted; employers should encourage employees to

have morale when performing their duties.

vii

DEDICATION

I dedicate this Research Project to my Soul sister Wambui who has been my rock in

my life.

viii

TABLE OF CONTENTS

STUDENT’S DECLARATION ................................................................................. ii

COPY RIGHT ............................................................................................................ iii

ACKNOWLEDGMENT ........................................................................................... iv

ABSTRACT ..................................................................................................................v

DEDICATION........................................................................................................... vii

TABLE OF CONTENTS ........................................................................................ viii

LIST OF ABBREVIATIONS .....................................................................................x

LIST OF TABLES ..................................................................................................... xi

CHAPTER ONE ..........................................................................................................1

1.0 INTRODUCTION..................................................................................................1

1.1 Background of the Study ...................................................................................... 1

1.2 Statement of the Problem ..................................................................................... 6

1.3 Purpose of the Study ............................................................................................ 7

1.4 Research Questions .............................................................................................. 7

1.5 Significance of the Study ..................................................................................... 7

1.6 Scope of the Study................................................................................................ 9

1.7 Definition of Terms .............................................................................................. 9

1.8 Chapter Summary ............................................................................................... 10

CHAPTER TWO .......................................................................................................11

2.0 LITERATURE REVIEW ...................................................................................11

2.1 Introduction ........................................................................................................ 11

2.2 Benefits of Employee Engagement in Effective Service Delivery .................... 11

2.3 Employee Engagement Strategies for Effective Service Delivery..................... 16

2.4 Challenges in Employees’ Effective Service Delivery ...................................... 22

2.5 Chapter Summary ............................................................................................... 28

CHAPTER THREE ...................................................................................................29

3.0 RESEARCH METHODOLOGY .......................................................................29

3.1 Introduction ........................................................................................................ 29

3.2 Research Design ................................................................................................. 29

3.3 Population and Sampling Design ....................................................................... 29

ix

3.4 Data Collection Methods .................................................................................... 31

3.5 Research Procedure ............................................................................................ 32

3.6 Data Analysis Methods ...................................................................................... 33

3.7 Chapter Summary ............................................................................................... 33

CHAPTER FOUR ......................................................................................................34

4.0 RESULTS AND FINDINGS ...............................................................................34

4.1 Introduction ........................................................................................................ 34

4.2 Response Rate and Demographic Information................................................... 34

4.3 Benefits of Employee Engagement in Effective Service Delivery .................... 37

4.4 Engagement Strategies Employed in Effective Service Delivery ...................... 41

4.5 Challenges in Employees’ Effective Service Delivery ...................................... 45

4.6 Service Delivery ................................................................................................. 48

4.7 Chapter Summary ............................................................................................... 49

CHAPTER FIVE .......................................................................................................50

5.0 DISCUSSION, CONCLUSSION AND RECCOMENDATIONS ...................50

5.1 Introduction ........................................................................................................ 50

5.2 Summary ............................................................................................................ 50

5.3 Discussion .......................................................................................................... 52

5.4 Conclusion .......................................................................................................... 58

5.5 Recommendation ................................................................................................ 59

REFERENCES ...........................................................................................................62

APPENDICES ............................................................................................................71

Appendix I: Questionnaire ....................................................................................... 71

Appendix II: List Of Accountancy Firms In Nairobi County .................................. 77

Appendix III: Research Permit ................................................................................. 79

x

LIST OF ABBREVIATIONS

COSO Committee of Sponsoring Organization

ERM Enterprise Risk Management

ROA Return on Asset

ROE Return on Equity

SACCOs Savings and Credit Corporative Societies

xi

LIST OF TABLES

Table 3.1: Reliability Results ....................................................................................... 32

Table 4.1: Gender of the Respondents ......................................................................... 35

Table 4.2: Level of Education ...................................................................................... 35

Table 4.3: Position Held .............................................................................................. 35

Table 4.4: Working Experience ................................................................................... 36

Table 4.5: Area of Specialization ................................................................................. 36

Table 4.6: Category of the Business ............................................................................ 37

Table 4.7: Benefits of Employee Engagement in Effective Service Delivery ............. 39

Table 4.8: Model Summary ......................................................................................... 40

Table 4.9: ANOVA Statics .......................................................................................... 40

Table 4.10: Regression of Beta Coefficients and Significance .................................... 41

Table 4.11: Engagement Strategies Employed in Effective Service Delivery ............ 43

Table 4.12: Model Summary ....................................................................................... 44

Table 4.13: ANOVA Statistics .................................................................................... 44

Table 4.14: Regression of Beta Coefficients and Significance .................................... 45

Table 4.15: Challenges in Employees’ Effective Service Delivery ............................. 46

Table 4.16: Model Summary ....................................................................................... 47

Table 4.17: ANOVA Statistics .................................................................................... 47

Table 4.18: Regression of Beta Coefficients and Significance .................................... 48

Table 4.19: Service Delivery ....................................................................................... 49

1

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Employee engagement is the rate of degree at which employees of a certain

organization feel passionate about their job and the tasks they are assigned to the

organization. Effectively and efficiently engaged employees have meaningful work,

security and safety, and are available to attend to their chores (Anitha, 2014). The

engagement is seen by these employees going an extra mile of out of their way to

accomplish their assigned tasks and use the organizational resources well and for the

assigned duties. The employees would also stay with their employers for a long period

resulting in a low turnover rate. They also feel a sense of commitment to the firm and

will often go an extra mile or put more effort while doing their tasks so as to be

successful (Al-dalahmeh, Masa’deh, Khalaf & Obeidat, 2018). Engaged employees

produce positive impacts on their attitudes, ability to handle the challenges at work,

reduce cases of absenteeism and the high turnover that many organizations are

currently facing (Bailey, Madden, Alfes & Fletcher, 2017). Engagement is also

strongly linked to high productivity levels and there is a high correlation with

individual, team and the whole organizational performance such as customer service

delivery in terms of quality and timelines. Saks and Gruman (2014) noted that any

organization that has a very big rate of engaged employees has increased its operating

income by more than a quarter and earnings also by a quarter in all the subsequent

years.

An employee is considered a valuable asset in an organization especially when well

managed as well as engaged in an appropriate way (Bhuvanaiah & Raya, 2014). An

employee who is engaged is one who is fully engrossed by and enthusiastic about

their work and therefore takes optimistic action to improve the interests of the

organization. According to Bedarkar and Pandita (2014), highly engaged workforce

can ensure an organization realizes an increase in innovation, productivity and the

bottom-line performance while reducing costs related to hiring and retention. Anitha

(2014) suggest that an engaged employee is aware of business context, and works

with colleagues to improve performance within the job for the benefit of the

organization. Employee engagement has been linked to customer satisfaction which is

2

also linked to financial success of the organization. Essentially, employees can be

classified into three classes on the basis of their engagement; those who are engaged,

the ones who are not engaged as well as the staff who are actively disengaged.

Engaged staff have a very strong sense of belonging in an organization with higher

performance as compared to their unengaged as well as disengaged counterparts

(Barkhuizen, Mogwere & Schutte, 2014).

A research conducted by Mann and Harter (2016) on the worldwide employee

engagement crisis revealed that in United States of America, the loss among firms due

to disengagement among employees was estimated at $ 250 and $ 300 billion per

year. However, these estimates of losses due to disengaged employees go as high as

$350 billion annually. In fact, most firms in America incur an expenditure of over

$720 million every year with the aim of increasing employee engagement (Gerst,

2013). These estimates clearly indicate that employee engagement is a top of agenda

among most firms in developed countries. A study by Sendawula, Kimuli, Bananuka

and Muganga (2018) on training, employee engagement and employee performance

acknowledged the key role played by employee engagement in overall employee

performance. The level of commitment, involvement, energy, efficacy, vigor and

dedication of employees determine how well they accomplish their tasks hence

affecting the overall effectiveness of small and medium accountancy firms in service

delivery.

The level of employee engagement among employees working in information

technology departments within the banking sector in Jordan affected the

effectiveness with which they accomplished their tasks (Al-dalahmeh et al., 2018). It

affected their overall job satisfaction and the desire to continue working with their

institutions. The study acknowledges the expanded requirements for employee which

go beyond the basic salary. Manager should engage their employees in daily

activities of their companies so as to ensure that they are motivated both

intellectually and emotionally to perform their tasks diligently so as to realize the

objective of the organization. It is important that employees are happy and satisfied

with their jobs in the same way they are satisfied with their working environment in

order to get committed. According to Prajogo and Cooper (2017), engaged

employees stand a high chance of trusting and holding a high quality relationships

3

with their employer. By so doing, they feel obliged to go an extra mile to ensure that

the objectives of the organization are achieved. Engaged employees have been found

to perform their tasks more effectively thereby solving customer challenges in a

timely and precise manner.

In India, Sarangi and Nayak (2016) opine that employee engagement had in

organizational success using the case of manufacturing firms. The study findings

revealed that engagement helps in getting employees devoted as they become

passionate about what they do and the way they do it. They pine that whenever

employees hold positive emotions about their work and places of work, they are

capable of thinking in a more flexible and innovative manner leading to development

of efficient processes that leave customers delighted. This is because the level of

errors is reduced as accuracy increases which help in improving overall customer

satisfaction. This can be achieved through creation of work environment in which

positive emotions are cultivated through involvement. It is important for organizations

to ensure that there is work-life balance for their employees.

Using a case of institutions of higher learning in Malaysia, Hanaysha (2016) looked at

employee engagement and its influence on organizational commitment. It was pointed

out that employee engagement has significant influence on organizational

commitment towards performance. In Indonesia, Meswantri and Ilyas (2018)

evaluated factors influencing employee engagement and its influence on performance

of employees. The study noted that in Indonesia, employee engagement is most

realized through having in place proper leadership styles, improving on the overall

competencies and experience of staff through training. In Bangladesh, Hoque, Awang,

Siddiqui and Sabiu (2018) analyzed the role played by employee engagement on

performance of staff in the context of telecommunication firms. It was revealed that

employee engagement significantly mediates the link between compensations systems

and the ability of employees to perform their duties efficiently.

A study conducted by Pillay and Singh (2018) on the impact of employee engagement

on performance using an Insurance Brokerage Company in Gauteng showed that

employee engagement was occasioned by low staff morale, absent transparency,

inconsistent communication and low levels in customer satisfaction. This was a result

of poor timely communication of instructions to the staffs and as a result, staff failed

4

to compile client quotations accurately resulting in incorrect premium calculations.

There was constant failure by some members of staff in meeting deadlines majorly

because of large workloads. The study established that in order to improve service

delivery in the brokerage firm, it was important that the firm focuses on staff

engagement.

Dajani (2015) used the context of banks to study the role of employee engagement in

establishment of commitment and performance of employees. This was informed by a

growing gap in literature occasioned by limited studies in the case of emerging

economies. It identified engagement as a positive attitude which enables an employee

to act beyond the call of duty in ensuring that business interests are achieved. The

study identified key drivers in employee engagement as including leadership,

organizational justice, compensation and benefits, work policies and procedures,

training and development. It was recommended that banks and other institutions need

to continuously empress employee engagement as part of their daily business

operations to ensure effective service delivery. This also helps in boosting customer

satisfaction.

Sanneh and Taj (2015) conducted a study on employee engagement and pointed out

that a number of factors determine employee engagement in an organization; these

include leadership, ensuring that staff are adequately trained and equipped with

required tools. It was noted that engaged employees are enthusiastic on the work that

they do and this positively enhances performance of the organization. In South

Africa, Patel (2014) used a case of the retail sector to assess how employee

engagement influences performance. This study pointed out significant factors that

influence employee performance. These factors include the reward systems,

empowerment, leadership as well as relationship with supervisors.

Kazimoto (2016) studied the extent to which employee engagement affected the

ability of retail enterprises to deliver on their mandate in Wobulenzi-Luweero City.

The study was informed by challenges experienced by retail outlets in the

management of challenges affecting employees’ ability to deliver on their tasks. The

challenges ranged from issues emanating from leadership, personal trauma to cope

with workload and cultural diversity among employees. The managers emphasized

more on financial benefits as opposed to work environment and other aspects related

5

with work place. There was neglect of issues related to human resources. The findings

show that implementation of employee engagement programs resulted in effective

service delivery as the level of commitment and passion among staff increased. The

level of customer complaints reduced leading to greater customer satisfaction and

loyalty.

Mbae (2014) focused on employee engagement and its effects on performance output

among employees using the case of staff at the Kenya Medical Training College

Headquarters, Nairobi. This was informed by the then limited studies carried out on

employee engagement and performance in the Country. The study established that

little was said concerning whether there were other parameters used to create unfair

treatment. The respondents were not happy with the remuneration package despite

being technically competent to perform duties. Though the employees got on well

with colleagues, they were dissatisfied with engagement in duty on issues relating ton

inadequate resources to perform duties, involvement in decision making, and manner

in which promotions were awarded. Theuri (2017 looked at employee engagement

and its influence on employee retention with reference to Peach Consulting. It was

revealed that presence of an organizational culture which emphasizes on the need of

employee engagement in an organization results into effective service delivery.

The accountancy sub-sector in Kenya is fairly developed making significant

contribution to economic growth of the nation. The sector has ensured effective

tracking of employee engagement through the recruitment and hiring process that

maintains the workforce and high level of the production process (Agoi, 2015). Most

managers in the accounting sectors always see the need of engaging their employees

with the main aim of doing away with personal interests as they lower the level of

production. Taking a holistic view of employee time and attendance, it becomes much

easier to detect the accounting departments that are facing management issues and

thus enforce proper measures that will ensure successful employee engagement.

With most accounting firms increasingly forced to do more with less, employee

engagement becomes the most important for the success of the firms (Mokaya &

Kipyegon, 2014). With the accounting sectors in Kenya having a workforce that

comprises of workers with different levels of education, age and backgrounds, factors

like cultures clash at the workplace and finally affect employee engagement which

6

lowers firm’s performance. This raises a concern for the accounting managers to

ensure good implementation of organization programs that work hand in hand with

employee engagement. The workers may report to work on time but due to lack

engagement they may fail to perform their assigned duties appropriately, hence the

need for employee engagement.

High performing small and medium accounting firms have emphasized on employee

feedback, economic environment which has improved their financial performance

through enhanced practice of employee engagement (Gichohi, 2014). Highly

attractive and competitive accounting firms always aim at constantly working towards

the improvement of their net profits. In today’s life, many organizations are always

ready and willing to have devoted employees that have the capability of engaging

their colleagues in working towards achieving their organizational set goals and

objectives. Engaged employees in accounting firms are considered as a priceless asset

who strive to ensure that the growth, innovation, survival and performance of their

organizations are maintained (Otieno, Waiganjo & Njeru, 2015)

1.2 Statement of the Problem

Employees who are engaged and committed in their work give companies crucial

competitive advantages. Most accounting firms in Kenya are yet to determine the

levels of employee engagement in their organizations. Accounting firms are facing

issues on timely submission of quality reports be it on tax, accounting, auditing or

advisory services. Katambo (2016) acknowledge the fact that Small and medium

accountancy firms face limitations relating to capital, innovations and experience

which make them less competitive in effective delivery of services. Employee

engagement has been overlooked hence the need of carrying the study.

A study by Al-dalahmeh et al. (2018) assessed the effect that employee engagement

had on performance outcomes among commercial banks in Jordan through assessment

of the moderating role of job satisfaction and revealed that low level of employee

engagement among information technology department staff negatively affected their

job satisfaction and overall bank performance. The study focused on technology staff

hence the need to undertake the current study. In another study, Dajani (2015)

assessed the impact of employee engagement had on accomplishment of tasks and

7

employee commitment in Egypt banks and found that employee engagement greatly

affected overall job performance among employees. Mbae (2014) on employee

engagement and its effects on performance output among in Kenya Medical Training

College found that employees got on well with colleagues. The study focused on the

educational sector hence need for another study.

As noted earlier, there are a number of studies (Katambo 2016; Al-dalahmeh et al.,

2018; Dajani, 2015; Mbae, 2014) that have focused on employee engagement and

organizational performance. The studies’ contexts, methodology and variables

however limit the application of their findings in the current study context. This study

therefore sought to fill these gaps by studying the effect of employee engagement on

service delivery among small and medium accountancy firms in Nairobi County.

1.3 Purpose of the Study

The purpose of this study was to investigate the effects of employee engagement on

effective service delivery among small and medium accountancy firms in Nairobi

County.

1.4 Research Questions

The study was guided by the following research questions:

1.4.1 What are the effects of employee engagement on service delivery among small

and medium accountancy firms in Nairobi County?

1.4.2 What are the strategies put in place to ensure effective employee engagement

among small and medium accountancy firms in Nairobi County?

1.4.3 What are the challenges faced in achieving employee engagement among small

and medium accountancy firms in Nairobi County?

1.5 Significance of the Study

This study sought to provide additional information on the way employee engagement

affects effective delivery of services among audit and accounting firms. Findings

would be important to the auditing and accounting sector as a whole besides other

firms especially the following stakeholders:

8

1.5.1 Audit and Accountancy Firms

The auditing and accountancy field is unique because of the importance attached to

the information it avails in guiding the investment decisions among investors. Being a

service industry, it is characterized by high people involvement. This therefore means

that the level of engagement of employees had a great impact on the quality of reports

issued. Audit and Accounting firms could use the findings of this study to guide their

future employee management programs to ensure that their level of engagement is

high for optimal and effective service delivery.

1.5.2 Employees in Accounting Firms

This study would contribute greatly to the wellbeing of employees in accounting firms

as it identifies the challenges in employees’ effective service delivery, employee

engagement strategies and the benefits of employee engagement. This would help to

improve the working environment for employees as the owners of these firms seek to

get optimal output. The employees would also benefit in terms of the firms trying to

implement strategies that would improve the level of engagement as these may

include several empowerment projects that helped employees grow.

1.5.3 Regulatory Bodies and the Government of Kenya

Regulatory bodies like the Institute of Certified Public Accountants of Kenya would

find the findings of this study relevant in guiding the operation of their member firms

to ensure that they provide quality reports that would promote integrity. The study

would identify the key contribution of having engaged employees for effective service

delivery. This is important because the integrity and credibility of reports and

opinions issued by accounting professionals affect the overall development of a nation

as it influences the investment decisions. The findings of the study would also be

important to the Government of Kenya especially the Ministry in charge of labor

relations in terms of development of policies and guidelines for optimal staff

engagement. This would promote the general level of employee relations to ensure

that both employers and employees interests are well safeguarded.

9

1.5.4 Researchers and Scholars

The study would contribute to the body of knowledge in the areas of employee

engagement and service delivery. This would help to identify the gaps in research in

terms of concepts, context and methodology to guide the proceeding of future

research discourse. The study would also guide the development of future research in

this area of employee engagement and service delivery by suggesting areas for further

research where future scholars can focus

1.6 Scope of the Study

The study sought to determine relationship between employee engagement and

effective service delivery. Specifically, the study sought to establish benefits of

employee engagement in effective service delivery, employee engagement strategies

as well as the challenges in employees’ effective service delivery. The study was done

covering among small and medium accountancy firms in Nairobi County. The

respondents of the study comprised of all the 110 accounting firms in Nairobi City

County. The study was conducted in the Months of August and September 2019 using

primary data that was collected using a questionnaire.

1.7 Definition of Terms

1.7.1 Employee Engagement

Employee engagement refers to a combination of both intellectual and emotional

commitment by an employee to an organization (Dajani, 2015). It describes the

existing relationship between an employee and his / her job and is measured in terms

of how satisfied employees are with their job and the working environment

(Barkhuizen et al., 2014).

1.7.2 Effective Service Delivery

Effective service delivery refers to making available services that match the

expectation of customers at the right time. This is aimed at improving the level of

customer satisfaction and loyalty. It reduces issues related to customer complaints

(Bontis, Richards & Serenko, 2011).

10

1.7.3 Strategy

Refers to a game plan developed to manage daily processes or duties towards

achievement of the medium or long term target (Olphert & Damodaran, 2007).

1.8 Chapter Summary

This chapter mainly involved the introduction of the study. The first section consists

of the background of the study that discusses the concept of employee engagement

from a global, regional as well as local perceptive. The second section then includes

statement of the problem. The next section then stated the purpose of the study. The

other section that followed discussed the research questions. The significance of the

study followed next then the scope of the study. The section that followed discussed

the definition of terms and then the chapter concluded by discussing the chapter

summary.

The second chapter provided a review of literature based on research questions. This

was organized in terms of what the focuses of the studies were, methodologies

applied, findings and conclusion so as to see how it could direct this study. Chapter

three covered methodology that was used. Specifically, this chapter identified

research design, population, sampling design, data collection methods, research

procedures and data analysis methods.

Chapter four of this study provided the response rate and the background information

of the respondents. It also gave the inferential statistics on the three variables of the

study including the means and the standard deviation for data analysis. The chapter

specifically gave the regression analysis in terms of the model summary, Anova

statistics and the regression beta coefficients and significance. Chapter five covered

the summary of the findings, discussion of the findings, conclusions,

recommendations based on the findings and suggestions for further research.

11

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter presents a review of literature on employee engagement and its influence

on effective service delivery. The review is centered on benefits of employee

engagement in effective service delivery, employee engagement strategies are

employed by small and medium accountancy firms and the challenges in employees’

effective service delivery.

2.2 Benefits of Employee Engagement in Effective Service Delivery

Organizations that forester and encourage employee commitment are associated with

an improvement in service delivery (Anitha, 2016). Highly committed employees

contribute to improvement in market share, reduction in staff turnover and greater

satisfaction with the activities in the firm. It is also seen to positively contribute

towards quality improvement, customer services and cost reduction (Narteh &

Odoom, 2015). Employee engagement means that staff are emotionally connected and

linked with the activities in the firm.

Employee engagement is considered as a psychological rather than a social contract.

Engaged employees are willing to go an extra mile to realize the set goals of the

organization (Masakure, 2016). Most firms have failed to establish the link between

their productivity, returns as well as the level of employee engagement. To increase

employee engagement, organization should ensure that the talent as well as

organizational strategies is in line. According to Lee, Wang, Chien, Wu, Lu, Tsai and

Dong (2016), an organization is made of a group of people from different

background.

Companies require motivated staff in order to carry out given tasks and

responsibilities hence attaining the set goals. The main reason for survival of firms is

to attain the formulated goals and objectives (Narteh & Odoom, 2015). For realization

of the set goals, Karatepe and Olugbade (2016) notes that firms are forced to pool

together the available resources including financial, technological as well as the

12

talents. Engaged employees are more optimistic about the growth and success

prospects of the firm and thus contributing towards better performance. Employee

engagement has an influence on the level and extent of staff retention, loyalty as well

as satisfaction. At the same time, employee engagement acts as a link between the

level of reputation in the firm, degree of customer satisfaction as well as the value

created to shareholders of the company.

Some firms have management teams that do not value employee engagement as

viable. Such firms are characterized by extremely miserable employees (Narteh &

Odoom, 2015). This has an adverse influence on the quality of services that these staff

renders the customers of the firm. There has been a rise in the degree of employee

engagement in most African countries. This trend is largely because of many viable

economic opportunities within the area. This trend has resulted into most employees

embracing innovation, excellent communication as well as leadership (Anitha, 2016).

Most of employees in organizations do not feel motivated to waking up and going to

their various places of work. Other employees feel so insecure in their various jobs in

as much as sufficient tools are availed to staff to carry out activities more efficiently

and effectively (Kumar & Pansari, 2016). The ability of staff to shape and influence

their decisions at the place of work is a significant factor influencing satisfaction and

motivation. Engaged employees are readier to take part in different activities in the

firm including making resolutions (Narteh & Odoom, 2015).

2.2.1 Employee Satisfaction and Commitment

Employee satisfaction is a positive or pleasurable feeling of the mind of the staff in an

organization that results from experience or appraisal of the job. It is how employees

emotionally react to all the circumstances surrounding a given job (Alegre, Mas-

Machuca & Berbegal-Mirabent, 2016). Employee satisfaction is affected by a number

of factors including the internal nature and quality of the environment surrounding

work. Employees who are largely satisfied with the firm may have a positive

influence on profitability of the business as reflected in the quality of services.

Employee engagement also has an influence on the level of satisfaction as well as

absenteeism among employees. The degree of employee motivated is also linked to

13

aspect like work involvement and turnover of employees (Huang, Li, Meschke &

Guthrie, 2015).

Employee or organizational commitment is made up of affective, normative as well as

continuance commitment. Affective commitment is the emotional attachment to,

identification with and involvement in the firm by staff (Meyer, 2016). Continuance

commitment is where employees are aware of the costs related with leaving the firm.

Such staff remains in the firm because they feel and need to do so. Normative

commitment is feeling of obligation to continue employment (Kumar & Pansari,

2016). An organization that embraces engagement strategies has employees who are

committed. This result into improved service delivery among these staff as they have

a common goal of increasing the overall level of services delivered to customers

(Anitha, 2016).

Committed employees usually report earlier at the place of work and sometime leave

late to ensure that the goals of the organization are attained. Such employees are

motivated by success of the assigned duties and responsibilities (Kumar & Pansari,

2016). Commitment is highly related with dedication and devotion. It involves

sacrificing all the time and enough for realization of a given set of goals. Committed

employees would therefore utilize their time in a most effective and efficient way to

meet the goals and objectives of the firm (Lam, O'Donnell & Robertson, 2015).

2.2.2 Employee Loyalty

Loyalty is said to be devolution to any activity with the whole heart. Loyalty is

evolved over a given period of time and it arises from shared experiences. Employee

loyalty is not only limited to some specific roles and responsibility of staff but also

safeguarding the secrets of the business (Kumar & Pansari, 2016). There are four

components of employee loyalty to an organization; well wishing, identification,

reciprocity as well as sacrifices. Loyal employees can be motivated to stay in the firm

for a longer period of time than as expected (Masakure, 2016).

Staffs are key sources of differentiation particularly in firms embracing similar

pricing and product strategy with competitors. Loyal employees have positive attitude

towards the firm and thus are likely to improve on the service delivered to customers

14

(Jayaram & Xu, 2016). In the service sector, evaluation of employee performance is

carried out on the basis of their behavior as opposed to their measurable outcomes that

they can attain. The evaluation of employees is conducted based on their extent of

customer orientation, team work, commitment as well as the degree of realization of

goals (Narteh & Odoom, 2015).

2.2.3 Increased Employee Empowerment

Employee empowerment indicates ensuring that employees have authority, self-

control and skills to properly carry out their duties and responsibilities. Empowerment

is giving employees the flexibility and right of making decisions and initiating actions

(Jayaram & Xu, 2016). Employee empowerment is about ensuring that staff has

authority to decide on how to improve on their processes and activities in the firm.

Employee empowerment ensures that the skills of employees are fully utilized for

general improvement in service delivery of the firm (Rajput, Singhal & Tiwari, 2016).

Empowered employees have autonomy and control on their activities that carry out

each and every day in the firm. Empowering employees is one avenue of ensuring that

they are motivated to positively impact on effective service delivery and thus the

general performance of the firm (Özçelik, 2015). Employees can be empowered

through promotion, recognition as well as delegation of more challenging

responsibilities. Employee empowerment comes with a sense of responsibility since

staff shall be held personally accountable for every decision made (Kumar & Pansari,

2016).

2.2.4 Increased Employee Competence

The management of most organization is more concerned of how to improve on the

salaries of employees as compared to enhancing the level of their competence. Few

organization places emphasis on the capabilities possessed by employees in

improving service delivery of the firm (Özçelik, 2015). Capability results from the

degree of competence of the employees in an organization. Competence can be

viewed in terms of skills and knowledge that are possessed by given employees of an

organization (Buil, Martínez & Matute, 2016).

15

According to Popli and Rizvi (2015), lack of required competencies and experience

means that employees would not be able to clearly conduct the assigned duties and

responsibilities. In such a case, maintenance of competencies would not significantly

contribute towards effective service delivery. This would mean that the firm brings on

board new competencies through hiring and recruitment while ensuring that only

competent and experienced staffs are retained to the firm. The competence of current

employees in the organization can also be increased through training programs.

Firms with developed competencies or capabilities are more reliable and would be

better as compared to firms with low capabilities and skill set. The required

competences should be in line with the overall goals of the firm. According to

Jayaram and Xu (2016), the human resource department is absent in most in most

cases when strategies are being formulated in the firm. This is because the HR

function is taken as being none-business. This means that the competences required

are not fully incorporated in the long term plans of most firms.

2.2.5 Reduced Staff Turn Over

Staff turnover is reflected in the number of employees that continuous leave an

organization within a given time frame. High staff turns over means that employees

do not stay longer in the firm. Organizations that do not embrace employee

engagement strategies are characterized by lower staff more and commitment which

translates into higher staff turnover. On the other hand, organization practicing

employee engagement practices are characterized by low staff turnover since

employee like and enjoy working in these firms and therefore would not readily fill

like leaving the firm (Reilly & Williams, 2016).

There are several advantages that accrue as a result of reduced staff turnover. This

means that the in-house skills and competencies are maintained which contribute to

the general performance of the firm. Low staff turnover among employees ensures

that the operations of the firm are carried out as normal without disruptions. There is

cost reduction for instance the costs related to new hires which translates into

organizational performance. Low staff turnover strengthens the organizational culture

embraced by the firm which translates to improved service delivery among employees

(Özçelik, 2015).

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2.3 Employee Engagement Strategies for Effective Service Delivery

Effective service delivery in organizations requires employees who are engaged and

committed to the goals and objectives of the firm. It is the desire and goal of every

firm to ensure that customers get quality and effective services and this is best

realized through employee engagement strategies (Patterson & Zibarras, 2018). In

essence, employee engagement is considered as a tool for determining the strength of

the firm. Employee engagement ensures that staffs are highly committed to their roles

and responsibilities to ensure that quality services are delivered to customers (Rana,

Ardichvili & Polesello, 2016).

For employee in an organization to be actively engaged, Wirtz and Zeithaml (2018)

point out conditions; ease of use, safety as well as meaningfulness. Employee

engagement can be considered in terms of the how staffs of an organization are

rationally and psychologically committed to the firm and three key behaviors are

exhibited; say, strive as well as stay. Thus, engaged employees will be positive about

the firm and would wish to stay longer.

Highly committed and busy employees are expressly and mentally united with the

firm and offer all the efforts to ensuring that the goals of the organization are realized

(Patterson & Zibarras, 2018). It is believed that engaged staff in an organization

would execute their duties and responsibilities in a better way and putts in more effort

in the activities that contribute towards excellent service delivery in an organization.

The environment of highly engaged employees is made up of fairness, support as well

as appreciation and reward systems (Ye, Wang & Li, 2018).

2.3.1 Promoting a Learning Culture and Career Progression

A learning culture is key in delivery of excellent services to customers of the firm.

This transforms the firm into a learning organization into the process called

organizational learning. Innovation and organizational learning are highly related and

results into service excellence. A learning culture in an organization results into

creation of experts that shape performance of the organization. A learning culture can

be promoted in an organization by use of a number of methods including training and

17

mentorship programs. Employees can also be offered chances of trying out on new

things (Deasy & Mannix‐ McNamara, 2017).

Both existing and potential staffs are keen to see the trend in their career trends and

paths while being employed in an organization. Most people apply for new jobs

because of availability or in search for opportunities for advancement and growth as

compared to stability, responsibility or competitive salary packages (Henry &

Marioni-Henry, 2017). It is also important that an organization communicates what is

required of employee in order to be promoted. Career progression ensures that

employees get challenging responsibilities. This is linked to improved service

delivery among employees. It also makes employees to be more committed and

satisfied and would wish to stay longer in the firm (Brooks & Youngson, 2016).

2.3.2 Job and Task Design

The world has witnessed evolution in the nature of employment and works that

individuals carry out. In the ancient days, laborers as well as craftsmen were

employed to work in workshops and farms. This was followed by emerge of the

cottage industries in which products and goods were assembled by suppliers for firms

that sold and marketed them (Chae & Choi, 2018). Thereafter, individuals started

working in firms characterized by highly formal interaction. Currently, organizations

are characterized by agile and flat structures with high level of outsourcing. All these

changes have brought about changes and evolution in the nature of job and task

designs (Bertolino, 2015).

Different firms are effectively shaping the job and task design through job

enlargement and job enrichment. Job enlargement is related with ensuring that the

tasks of the job are enlarged. On the other hand, job enrichment ensures that more

complex as well as challenging activities is in place for employees. Highly enriched

jobs are full of variety, autonomy as well as meaningfulness and this increases

engagement besides enthusiasm (Pee & Lee, 2015).

18

2.3.3 Selection and Recruitment

The message conveyed by the firm in search for new job candidates has an influence

on future engagement of employees in the firm. When existing staffs are recruited for

desirable jobs, their levels of engagement as well as commitment get to improve as

seen through growth opportunities. Strengthening employee commitment in an

organization is determined by the balance that the firm strikes between external as

well as internal job applicants (Patterson & Zibarras, 2018).

If an organization recruits from external sources at the expense of the available

employees, this implies that the commitment of the existing staff is not reciprocated in

the firm. This would make existing employees to question and ask their own

commitment to the firm. In recruiting the external employees into an organization,

efforts should be made to ensure that the values and job features are properly

communicated to employees. In return to this, the firm should offer competitive

salary, flexible working hours as well as career growth and advancement

opportunities (Dipboye, 2017).

Once promising potential candidates have been established from the recruitment

efforts in place, qualified applicants are selected to fill up the positions. When right

applicants are selected for the right job, the new hired employees would smoothly

execute their tasks and responsibilities. A positive initial impression at the hiring

stage would mean that the recruited employees would be positive about the firm and

thus more committed and engaged to the company (Patterson, 2018).

2.3.4 Training, Development and Orientation

The skills set and level of knowledge shape the degree of service delivery among

firms. This has made most firms to invest in training programs for equipping staff

with excellent skills. Organizations with proper training and orientation practices are

characterized by low cost of hiring staff, greater motivation and retention of

employees (Hung, Chen, Sung & Ho, 2017). An organization is able to align its goals

with those of its employees through training and orientation. Orientation plays an

important role in enhancing employee engagement through explanation for the pay,

the work schedules and policies of the firm (Baker, 2018).

19

Staff orientation also helps in ensuring that employees are given sufficient

information and knowledge on how the firm is organized, new employees are

introduced to prospective co-workers and safety regulations of the firm are explained

to employees. This results into creation of a personal fit that is vital and important for

highly committed and engaged employees in an organization (Rowland, Ruth & Ekot,

2017).

Training of employees ensures that the new as well as current employees in place are

equipped with the required skills and knowledge for success of the firm. Employees

with enhanced skills through training are deemed to be more engaged to the activities

of the firm and their duties. It is through training that the value of employees to the

firm as well as their employability is enhanced (Qu, Jiang & Gao, 2017).

2.3.5 Compensation Plans

Compensation is highly linked to employee commitment and engagement. For

instance, a firm that offer generous retirement benefits to employees will have more

and more committed staff. The design of compensation plan requires careful

consideration of employee commitment and engagement. Compensation is made of

monetary (financial elements) that include pay as well as the benefits and non-

financial aspects firm picnics and daycare services. The most critical compensation

plan should ensure that the strategic objectives of the firm are supported. An

organization is able to gain competitive advantage through the compensation plan in

place. This is because a proper compensation plan helps the firm in attracting best

candidates and ensures that employees are well motivated top ensuring that goals are

realized (Carberry & Zajac, 2017).

Incentive pay (pay-for-performance may have an influence on staff productivity and

the degree of employee commitment. The incentive pay can also be tied to team or

work group performance and to the results across the firm for instance the profit-

sharing schemes. A number of employees are highly motivated by financial incentives

and would put in more efforts to increase the level of their overall productivity

((Mapp, Peterson & Johnson, 2017).

20

Organizations can also consider adopting a competency-based pay plan where

remuneration is paid based on the skills set. In this plan, employees are rewarded on

the basis of the mastery of given job relevant skills and knowledge. This remuneration

plan ensures that employees master their skills which contribute to overall

commitment. There are also retirement plans in most firms that act as compensation

packages for employees. Most of these plans are usually available to full time staff in

an organization (Kumar & Pansari, 2016).

2.3.6 Work Force Diversity

Diversity revolves around acknowledgement, understanding, accommodating,

appreciating and celebrating differences and similarities amid people. It stands for

individuality in terms to age, class, gender, ethnicity, physical and mental ability,

income race, sexual orientation, work experience, perceptions and spiritual practice

(Barak, 2016). Organizations are influenced by these dynamics which if not managed

would affect the performance of employees and hence overall organization

performance. There are numerous human characteristics and dispositions that make

one employee different from another.

There needs to be a deliberate, systematic and comprehensive managerial course for

managing diversity if an organization is to realize its goals and objectives. Mugo

(2012) noted that the case is not any different in the microfinance institutions as they

employ staff from diverse educational and professional background, religion among

other aspects that need to be well managed for optimal employee relationship and

performance.

Organizations recruit staffs from diverse styles, countries, cultures and even values.

While employees expect returns from the organization, their effective performance is

significant for the success of an organization. It is therefore important that

organizations understand the effect of recognizing work place diversity on employee

performance (Sungjoo, 2010).

In the modern business environment, the workforce is far more varied than in the past.

This is due to economic and demographic factors such as age, sex, marital status,

income levels, religion, educational level, globalization, immigration among others

21

(Erasmus, 2007). In Kenya, Gacheri (2012) found out that workforce diversity affects

employee performance at varying degrees in her study of Equity Bank employees. In

this era of economic globalization many institutions are putting in a lot of effort to

attain workforce diversity while others lack basic written policies on how to manage

diversity at the workplace.

The influence of workforce diversity on employee performance cannot be

underestimated. Barak (2016) looks at workforce diversity as the way people differ

from each other and for the management in organizations; their major concern is how

these differences affect the relationships at work or how tasks are accomplished. For

HRD, the differences in the diversity of the organizational employees should spark

employees to work hard and hence improve their individual and eventually the

organizational performance.

Fouad and Arredondo (2007) concur that institutions that are keen in developing a

reputation for managing diversity will most likely attract the best talent which helps to

improve organizational effectiveness. Jonsen, Maznevski and Schneider (2011) reason

that to understand the real impact of workplace diversity, researchers must consider

the interrelationships among groups and people, the sharing of valued and rare

resources and the composition of other elements such as occupation, job, organization

and society at large.

Organizational behavior is heavily impacted by workforce diversity such as

personality (Mkoji & Sikalieh, 2012). It was established that that the

conscientiousness personality trait is the most predictive of job performance followed

by openness to experience, agreeableness, extraversion and emotional stability.

According to a study by Kinicki (2008), workforce diversity comprises four

dimensions; personality which represents extraversion, introversion, agreeableness,

conscientiousness, emotional stability, openness to experience, internal dimension

which represents, age, ethnicity, race, religion, culture, sex, physical ability while

external represents, work experience, marital status, educational background, job

satisfaction, income. The organizational dimensions represent the outer most layers

and consist of characters such as management status, union affiliation, work location,

seniority, divisional department, work content/field, and functional level

classification.

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2.4 Challenges in Employees’ Effective Service Delivery

Effective service delivery brings results into customer satisfaction and loyalty with

the products that the firm offers (Nasurdin, Ahmad & Tan, 2015). Employees may be

willing to offer effective services but however, they are faced with a number of

challenges. Effective service delivery requires employees who are well motivated and

paid. Effective service delivery requires employees who are committed to realization

of quality objectives of the firm (Burke, 2017). Service quality also requires

employees who are committed to meeting or exceeding the needs and expectations of

customers. Effective service delivery is a pillar of realization of competitive

advantage among firms in the currently challenging and changing business landscape

(Meijerink, Bondarouk & Lepak, 2016).

Service delivery is defined as the actual rendering of an activity like acceptance of the

customer order, clearing customers after payment and contacting clients in response to

their complaints (Mpofu & Hlatywayo, 2015). In support of this view, Wirtz and

Jerger (2016) argue that in economic transaction, service delivery simply relates with

the knowledge and specialized skills that are exchanged for money as compared to

other physical resources. Based on each of the offered service, each of this has a key

intervention and role of transforming customers such that the client is the major

beneficiary of the delivered service.

Nasurdin, Ahmad and Tan (2015) view service delivery as the provision of economic

activities or benefits for the general satisfaction of the customers. In order to increase

the effectiveness of employees in their service delivery, Mpofu and Hlatywayo (2015)

opine that organizations need to address some of the challenges leading to poor

service delivery. Some of these challenges in service delivery include inability to

manage change, inadequate employee capacity, poor planning, poor human resource

policies and poor performance management in most organizations.

2.4.1 Inability to Manage Change

Change characterizes the present life of an organization either at strategic or

operational level. Change come into two forms; evolutionary and revolutionary

change (Goleman, 2017). In management point of view, change occurs when an

23

organization transforms its culture and strategy due to the rapidly dynamic

environmental forces, people and technology (Cascio, 2018). Johnston and Marshall

(2016) opine that changing something refers to alteration, variation and modification

in one way or the other. Change is an inevitable component of people and the

organizations they establish besides the environment they operate in.

Change management in an organization is a state of transition between the current to a

future state that an organization is being directed (Cascio, 2018). It refers to any

activity, action or set of actions that result into a shift in the processes or direction

affecting the manner which an organization is operated. Change is the only aspect of

human phenomena that is ever constant. Change can either be planned or deliberated

by management of an organization within or it can originate outside an organization

where an organization has no control (Moran & Brighton, 2011). Change may have

far reaching effect on strategies an organization uses to attain the set goals and

objectives. Naturally, some changes are relatively small while others result into

organizational transformation (Gollenia, 2016).

Change management tends to be painful, uncomfortable and disruptive. It is therefore

important that the management react to the ever-changing changing business

environment through proper Strengths, Weaknesses, Opportunities and Threats

(SWOT) analysis (Moran & Brighton, 2011). Simply put, change in an organization is

reaction to the changing environment conditions. The main reason why organizations

react to changes in environment is to remain competitive, survive and be sustainable

in future (Al-dalahmeh et al., 2018). According to Burke (2017), change management

in organization is largely due to external as compared to internal forces of

environment. When these changes take place, organizations that quickly adapt to them

achieve sustainable competitive advantage while those organizations that fail to

respond to these changes are left behind and are likely to fail with time.

Change management is alteration of operations and activities within an organization.

This alteration may include change in overall goals, mission and strategies of an

organization that drive its future (Moran & Brighton, 2011). Change management is

also viewed as the key disruption of the normal ways which organizations conduct

their businesses. Change management is inevitable for an organization to remain

competitive in the contemporary business environment (Cascio, 2018). As such,

24

organizations are ever monitoring and scanning their external environment while

anticipating and adapting timely to continuous change.

According to Goleman (2017), change management is shaped by three trends; an

increased level of competition due to forces of globalization, information and

communication technology and management of innovation. With globalization, the

world has been reduced to a global village and therefore increased business

opportunities that has resulted into greater competition (Moran & Brighton, 2011).

Technology is also ever changing, and this has affected the way organizations carry

out their businesses. In response to both competition due to globalization and the

rapidly changing technology, managerial innovation remains a response to these two

changes (Cascio, 2018).

Change management according to Korir, Mukotive, Loice and Kimeli (2012) is the

management of business change in an organization in a manner that is effective in

such a way that senior leadership, managers and employees successfully work

towards implementation of required change in an organization in terms of technology

or processes within an organization. According to Moran and Brighton (2011),

change management as a process entails continued renewal of the general direction of

the company, capabilities and structures for serving the continuously changing needs

of both internal and external forces of the environment (Cascio, 2018).

2.4.2 Poor Human Resource Practices

Human resources are essential assets that influence effective service delivery in an

organization. Organizations embrace human resource practices to ensure that the

welfare of employees is well taken care of. Some of the human resource practices that

organizations embrace include recruitment and selection, reward systems, ensuring

employee morale as well morale (Hwang, Han & Kim, 2015).

Most startup businesses are faced with a challenge of limited financial resources and

thus unable to embrace good HR practices and this result into inefficient service

delivery. This is slightly different from the larger businesses that have enough capital

for investing in HR practices in order to increase employee service delivery (Karatepe

& Olugbade, 2016).

25

2.4.2.1 Poor Reward Systems

The degree of effectiveness in service delivery of employees relies on how well they

are rewarded. The reward systems in organization can broadly be classified into

monetary and non-monetary. According to Muthu, Thurasamy, Alzahrani, Alfarraj

and Alalwan (2016), reward as well as compensation systems have postive effect on

effective service delivery among employees. The rewards system of employees is

positively correlated with their performance which is reflected in their services

delivered to customers. Reward system serves two functions; the financial as well as

the non-financial role that result into improved service delivery among the employees

(Hwang, Han & Kim, 2015). The reward system can comprise of tangible as well as

intangible benefits to employees of an organization which boosts the level of services

delivery.

According to Paparoidamis, Tran and Leonidou (2019), the reward system is the most

important driver of employee performance that is evidenced by effective service

delivery. Although wages have remained important components of the reward system,

non-monetary incentives also play an important role when it comes to improvement of

the level of service delivery in organizations (Hwang, Han & Kim, 2015). The

reward system also plays an important role in attraction as well as retention of

qualified and talented staff. It is this new skill set that would enhance the

effectiveness in service delivery.

Most organizations leverage on employee reward to recognize as well as appreciate

staff so that they encourage and strengthen their service delivery. Employees are

usually encouraged to perform better when they are aware of the fixed reward at

completion of the exercise. Most small firms have failed to establish the link and

connection between reward and service delivery as seen in employee performance

(Paparoidamis et al., 2019). Poor reward systems in most small firms only

demotivates employees to put in more efforts and improve on effectiveness and the

quality of services rendered (Hwang, Han & Kim, 2015).

26

2.4.2.2 Inadequate Performance Management Systems

Performance management ensures that the overall goals of the firm are aligned with

the agreed measures by employees, their skills as well as levels of competency

(Jayaram and Xu, 2016). One performance management system is ensuring that skills

of employed are linked with the reward. In such a system, the reward paid to

employees is based on their skills and level of competence. This means that

employees having greater competence will receive a higher pay as compared to the

less skilled employees (Holen-Rabbersvik, Eikebrokk, Fensli, Thygesen & Slettebø,

2018).

Skills are important when it comes to service delivery. Skilled employees are usually

associated with greater service delivery as compared to the less skilled ones (Jayaram

& Xu, 2016). The challenge faced by most startup firms is that they have limited

capital to invest in strengthening their performance management systems. This

adversely affects the level of service delivered to customers by employees as they feel

demotivated (Dajani, 2015).

In creating an effective performance management system, Jayaram and Xu (2016)

argue that the objectives of the job should first be linked with the goals of the firm.

Employees should also be encouraged to be included in the goal setting process. This

helps employees to clear understand the formulated goals and therefore easily to be

realized. This also results into acceptance of challenging objectives since individuals

will be more committed to the goals they have participated in formulation. The

performance management process should be undertaken on a continuous basis

(Jayaram & Xu, 2016). An organization should also examine how its treats employees

who are more experienced. The designed performance management systems should

recognize as well as reward active information and knowledge sharing and expertise

among other co-workers in the firm.

2.4.2.3 Lack of Employee Capacity and Tools

It is better for an organization to determine and understand that staffs are working on

the right tasks that result into effective service delivery. Organizations can built the

capacity of employees either internally or externally with the help of short and long

27

term plans. Employee capacity building initiatives aim at facilitating effective

operation and functioning of the entire work place. The internal employee capacity

building focuses on making sure that the knowledge and competence of staff are

developed (Katambo, 2016).

Employee capacity can be enhanced when the organization has supplied adequate and

necessary tools required to carry out the operations. Effective service delivery

requires that employees have access to all the required facilities. Accomplishment of

some services requires tools like computer systems and other electronic gadgets

including the calculator for those in the accounting profession (Kazimoto, 2016).

Limited budget constraints, most startup firms have not invested in sufficient tools for

staff thus reducing the quality and effectiveness of services rendered or delivered to

customers. Supplying employees with the required tools is not enough to enhance the

effectiveness of service delivery. Organizations should go an extra mile to ensure that

employees are equipped with skills on how to use the tools in place. This is because

some of the tools require specialized knowledge and skills (Mbae, 2014).

2.4.2.4 Poor Planning and Training Programs for Employees

Planning is an integral component of excellent service delivery among the employees.

Planning simply relates with identification of goals and plans that can be in varying

time horizons for instance long term, medium term as well as short term. Effective

service delivery requires that clear and well-established goals have been set. The

formulated goals and plans should be Specific, Measurable, Attainable, Realistic and

Time-bound (SMART). It is also important that employees are involved in setting of

these goals. Involving employees in setting of the targets increases the chances of

success which is translated into effective service delivery (Pillay & Singh, 2018).

Training plays an important role when it comes to enhancing their capacity to

effectively deliver services to customers. Training equips employees with the required

skills and competencies in performing giving tasks and activities hence effective

service delivery. Training is also perceived as a response strategy to the increasingly

turbulent and changing business environment. Organizations can use different

28

methods to train employees’ for instance on-the-job training, off-the-job training and

vestibule training among others (Sarangi & Nayak, 2016).

Instituting a training program in an organization first starts with a thorough training

need analysis. Training need analysis identifies the gaps and key areas that require

advancement of skills for employees in an organization through training. Once this

has been done, it becomes easier to train staff in an organization. The changing

business environment especially with advancement of new technologies means that

firms need to have new skills and competencies which are best attained through

training of employees (Chae & Choi, 2018).

2.5 Chapter Summary

This chapter has reviewed literature on employee engagement and how it relates with

service delivery. The review of literature is centered along three themes; the benefits

of employee engagement, strategies of employee engagement as well as the

challenges in effective service delivery. It is also clear from literature that a number

of benefits accrue to an organization that embraces employee engagement strategies.

These benefits include increased employee satisfaction, commitment, loyalty and

empowerment. It also goes a long way to reducing employee turnover in an

organization. It is evident from the reviewed literature that a number of strategies can

be employed for employee engagement in organizations. These include promotion of

a learning culture and career progression, design of tasks, selection as well

recruitment, compensation plans as well as enhancing work force diversity. The key

challenges in effective service delivery that the literature has focused on include

inability to manage as well as poor human resource (HR) practices. Change is

inevitable in life and thus requires proper strategies for effective management. HR

practices cover things like reward systems, performance management, employee

capacity and tools besides training programs for employees. Next is chapter three

which looks at the research design, the population and sampling design, data

collection method, research procedure and data analysis methods.

29

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

The chapter presents the methodology that was used in answering the research

questions of the study. The chapter specifically looked at the research design, the

target population and how sampling was done. The procedure for data collection,

analysis and research procedures are provided.

3.2 Research Design

A research design gives a framework on the procedures that were adopted in

collecting and analyzing data. There are three main research designs namely;

descriptive research, exploratory research and causal research. Descriptive research

describes a phenomenon as it exists, by taking raw data and tabulating it into a

useable format (Creswell, 2013). Exploratory research refers to sections of a

procedure that aids the researcher to maintain a form of control over all variables

affecting results of an experiment. Causal research is an effect that occurs when

variation in the independent variable results in the variation of another variable.

For this study, a descriptive research design was employed in explaining the

determining factors affecting performance of small and medium accounting practice

firms in Kenya. According to Yin (2014), descriptive research design is ideal since it

reports things the way things are in the current state. It also allows for more data to be

collected and tested hence suitable for obtaining data on definitive goals of the

defined issues in this study (Creswell, 2013).

3.3 Population and Sampling Design

3.3.1 Population

Population is described as a group of elements or items that have common observable

features that are greater interest to the researcher (Sekaran & Bougie, 2016). It is

across the population that the study findings may be generalized on (Bertolino, 2015).

30

The target population on the other hand is a collection of items that the study seeks to

make inferences (Bryman, 2016). The study targeted human resource manager from

each of the 110 human resource departments of the small and medium accountancy

firms in Nairobi City County. A total number of targeted populations were 110 human

resource managers drawn from the small and medium accountancy firms in Nairobi

City County as listed in Appendix II.

3.3.2 Sampling Design

Sampling is the process that the researcher uses to identify the sample of the

population to be included in the study (Thomas, Nelson & Silverman, 2015).

Sampling procedure ensures that representative items from the population are selected

for inclusion in the study. The sample needs to be large enough to bear as much

characteristic as possible if compared with the population.

3.3.2.1 Sampling Frame

Sampling frame is a list of units or elements of the population which the units that

should be sampled and included in the study (Coolican 27th day of May and June

2019 respectively, 2017). The sampling frame comprised of the owners/managers of

the accountancy firms in Nairobi City County. The data was obtained from ICPAK

register on the number of registered accountancy firms in the county which was 110

firms. Therefore, the sampling frame was 110.

3.3.2.2 Sampling Technique

Sampling technique lays down the steps to be followed in selecting the sampler size.

There are generally two common types of sampling techniques; probability and non-

probability sampling (Patten & Newhart, 2017). Barrat, Ferris and Lenton (2015)

indicated that in cases where the population is not large can easily be accessed, a

census study would be more appropriate. This study included all the 110 firms in the

study to improve the ability of generalization of study findings to the entire

population.

31

3.3.2.3 Sample Size

Sample size is a means of determining the number of elements of the population to be

included in the sample (Creswell, 2013). The study included all 110 firms in the study

hence a census. There was no sampling as the target population was small and could

easily be accessed within Nairobi City County.

3.4 Data Collection Methods

Data collection is the process of getting data from the field that when analyzed results

into drawing of inferences about the population (Brannen, 2017). Data collection is

an important step since it ensures that all required data is collected for analysis (Yin.

2014). There are commonly two key types of methods for collection of data namely

primary and secondary methods (Thomas et al., 2015). Primary data collection relies

on first hand sources of information and it can be collected with use of questionnaires,

observation and interviews (Bell, Bryman & Harley, 2018).

Secondary data, on the hand represent the second-hand source of information for the

study and it can be collected from books, journal, periodicals and other relevant

publications (Yin, 2016). The study collected primary data using questionnaires. The

questionnaires contained close and open-ended questions for ease analysis of the

findings. Open ended questions enabled the study to collect qualitative information

while clos ended questions facilitated collection of quantitative data. Some of these

close ended questions on the questionnaire were structured using a five point Likert

scale where1 = strongly disagree, 2= disagree, 3 = Neutral, 4 = Agree, and 5 =

Strongly Agree.

The questionnaire was divided into five sections. Section A presented the general

information about the respondents; section B had information on benefits of employee

engagement in effective service delivery; section C presented information on

engagement strategies employed in effective service delivery, Section D had

information on challenges in employees’ effective service delivery while section E

presented information on service delivery which was the dependent variable of the

study.

32

3.5 Research Procedure

The researcher first obtained an introduction letter from the university that was given

to the management in the accountancy firms while seeking permission to conduct the

research data within their firms. The researcher also applied for a research permit

from National Commission for Science, Technology and Innovation (NACOSTI) as

part of the requirement for data collection process.

Before carrying out the actual study, piloting was conducted among ten (10)

respondents in the targeted population. The aim of the pilot study was to test for

reliability and validity of the instruments of the study (Bernard, 2017). Once the

research instruments have been found to be valid and reliable, the study sought for an

introduction letter from the University which stated the purpose of the study as being

for academic reason. The identified firms were notified in advance in written on the

study. The researcher administered questionnaires in self to increase on the response

rate. When administering the questionnaires to respondents, the researcher ensured

that respondents have been given ample time to respond to the questionnaires and thus

increasing the response rate.

Before going to the field to collect information, the study sought to ensure that the

instruments are reliable and valid through a pilot test. Dikko (2016) noted that

respondents to take part in the pilot study can range from 5-10. Therefore, the study

purposively selected 5 respondents to take part in the pilot testing and these were

excluded from the final sample size so as to avoid possible biasness. In order to

determine validity of the instruments, the study engaged the supervisor who reviewed

the items on the questionnaires to ensure they measured the underlying constructs in

the conceptual framework. In order to test for reliability, the study used Cronbach

Alpha Coefficients where 0.7 was considered as the threshold. The results are as

presented in Table 3.1.

Table 3. 1: Reliability Results

Variable Number of Items Cronbach Alpha

Benefits of employee engagement 29 .765

Engagement strategies 32 .793

Challenges in employees’ effective

service delivery

23 .757

service delivery 5 .852

33

From the results in Table 3.1, all the items had Cronbach Alpha coefficient values

above 0.7; which can be inferred to mean that the instruments of the study were

reliable.

3.6 Data Analysis Methods

On completion on data collection, the collected data was checked for completeness

and consistent before being entered the Statistical Package for Social Sciences

(Version 24.0) for analysis. The study used descriptive statistics including means and

standard deviation to analyze the findings. Descriptive statistics was chosen because it

made it possible to show the distribution or the count of individual scores in the

population for a specific variable. The presentation of the findings was done using

tables and figures.

To establish the relationship between employee engagement and effective service

delivery, the researcher conducted inferential statistics including Pearson Moment of

Correlation, ANOVA and multiple regression analysis. Pearson Moment of

Correlation was applied to establish the strength and direction of relation while

multiple regression analysis was used to estimate the changes in effective service

delivery that can be explained by employee engagement variables studied.

3.7 Chapter Summary

From chapter three, it is clear that an explanatory research design was employed the

total number of targeted population was 110 human resource managers drawn from

the small and medium accountancy firms in Nairobi City County. The study adopted a

census and thus the sample size was 110 respondents. The chapter further detailed that

primary data was collected with the aid of questionnaires. The collected data was

analyzed using descriptive statistics which included means and standard deviation

used to analyze the data. The next chapter provides results and findings followed by

summary of the findings, discussion, conclusion and recommendations in chapter

five.

34

CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

This chapter presents the results and findings including response rate and

demographic information. The results are presented in term of descriptive statistics

and regression results based on the specific objectives. The findings are presented in

form of tables, figures and charts.

4.2 Response Rate and Demographic Information

In the subsection, response rate and demographic information is provided starting

with the response rate.

4.2.1 Response Rate

The study reached out to a total of 110 targeted owners/managers of the accountancy

firms in Nairobi City County. A total of 78 participants responded giving a response

rate of 71%. These results are adequate for generalization. The response was adequate

to make conclusion of the research findings (Yarchoan, Hopkins & Jaffee, 2017).

4.2.2 Demographic Information

This section presents the background information about the respondents who were

included in the study. This was done to determine the reliability to provide adequate

data required.

4.2.2.1 Gender of the Respondents

The study identified the genders of the respondents; from the findings, 65.3% of the

respondents were male while 34.6% were female. This was a clear indication that the

study coved both genders indicating gender diversity hence information was sought.

The results are presented in Table 4.1.

35

Table 4.1: Gender of the Respondents

Gender Frequency Percent

Male 51 65.3

Female 27 34.6

Total 78 99.9

4.2.2.2 Level of Education

The respondents of the study were requested to indicate their level of education. From

the results 44.9% of the respondents had degrees, 25.6% had diplomas, 14.1% had

certificates, 12.8% had masters, and only 2.6 had others. This implies that all the

respondents were knowledgeable and could understand the questions give the correct

answers. The data collected therefore was reliable to give a true View of the activities

on ground. Table 4.2 is a summary of the findings.

Table 4.2: Level of Education

level Frequency Percent

Certificate 11 14.1

Diploma 20 25.6

Degree 35 44.9

Masters 10 12.8

Other 2 2.6

Total 78 100.0

4.2.2.3 Position Held

The study examined various positions held by the respondents at the time of the study;

from the findings 55.1% of were managers, 34.6% were owners of the firms and

10.3% held other positions. This indicated that majority of the respondents were

managers in the firms which was consistent with the study. The summary of the

findings is presented in Table 4.3.

Table 4.3: Position Held

position Frequency Percent

Owner 27 34.6

Manager 43 55.1

Other 8 10.3

Total 78 100.0

36

4.2.2.4 Working Experience

Respondents of the study were requested to indicate how long they had served in their

various positions in their firms. The study found out that 52.6% of the respondents

had served in their positions for more than 4 years, 41.0-% had served for 2-4 years

and 6.4% had served for less than 1 year. This showed that most of respondents had

clear information about their firms since they had served for a longer time of more

than 4 years. The findings are indicated in Table 4.4.

Table 4.4: Working Experience

Years Frequency Percent

Less than 1 year 5 6.4

2-4 years 32 41.0

more than 4 years 41 52.6

Total 78 100.0

4.2.2.5 Area of Specialization

The study sought to find out the area of specialization of the firms, the results

indicated that 74.4% of the organizations dealt with auditing, 55.1% involved in Book

keeping, 47.4% of the organizations deals with tax consulting and 28.2% specialized

in other area. This was a clear indication that majority of the respondents had

specialized in auditing. The summary of the results is presented in Table 4.5.

Table 4.5: Area of Specialization

Area Frequency Percent

Book keeping 37 47.4

Audit 58 74.4

Tax consulting 43 55.1

Other 22 28.2

4.2.2.6 Category of the Business

The study further sought to find out the kind of businesses respondents were running,

the study established that 41.0% were running partnership type of business, 24.4%

were operating as sole proprietors, 19.2% were operating limited companies and

15.4% were operating other types of the business. This implies that majority of the

respondents own the firms. The summary of the findings is indicated in Table 4.6.

37

Table 4.6: Category of the Business

Category Frequency Percent

Sole proprietor 19 24.4

Partnership 32 41.0

Limited company 15 19.2

Other 12 15.4

Total 78 100.0

4.3 Benefits of Employee Engagement in Effective Service Delivery

The study proposed a number of statements that required respondents to indicate their

level of agreement with each of them on a scale of 1-5 with 5-Strongly agreed, 4-

Agreed, 3-Neutral, 2-Disagree, 1-Strongly disagreed. The study then calculated the

mean and standard deviations to help derive the average perceptions held by the

respondents on each statement. From the findings, respondents agreed that employees

are more involved in their work with a mean of 4.22 and a standard deviation of 1.07,

the firms have motivated staffs in their company with a mean of 4.20 and a standard

deviation of 1.06. Respondents also agreed that their employees are willing to go an

extra mile to provide quality services to customers with a mean of 4.17 and a standard

deviation of 0.12, employees also have positive influence on profitability of the

business as reflected in the quality of services with a mean of 4.13 and a standard

deviation of 1.07.

The results also indicate that respondents agreed that employees are committed in

their tasks with a mean of 4.11 and a standard deviation of 1.02, employees exercise

self-control in responding to concerns raised by customers with a mean of 4.08 and a

standard deviation of 0.09. Respondents also agreed that employees in the firms

perform well because they are satisfied which had a mean of 4.07 and a standard

deviation of 0.88, employees deliver on their assignment on time with a mean of 4.06

and a standard deviation of 0.05. The respondents further agreed that employees stay

with the firm for more than 5 years on average which had a mean of 4.03 and a

standard deviation of 1.09.

The study also found out that employees have been empowered to make decisions on

behalf of the firm with a mean of 3.98 and a standard deviation of 0.69, employees

utilize their skills to the maximum with a mean of 3.97 and a standard deviation 1.03.

Respondents revealed that they have loyal employees, who are motivated to stay in

38

the company for longer period with a mean of 3.96 and a standard deviation of 1.09,

employees are happy to be associated with the firm had a mean of 3.90 and a standard

deviation of 1,06. Employees are promoted from time to time on merit had a mean of

3.88 and a standard deviation of 1.05, managers delegate different responsibilities to

their junior staff from time to time had a mean of 3.72 and a standard deviation of

0.62. Moreover, respondents agreed that employees perform their tasks competently

with a mean of 3.58 and a standard deviation of 1.08, employees have self-control

when carrying out their duties with a mean of 3.51 and a standard deviation of 1.01.

Respondents were however not sure whether employees are proud to be identified by

our firm with a mean of 3.49 and a standard deviation of 0.33, whether employees

sacrifice their private time to the service of our company with a mean of 3.48 and a

standard deviation of 1.09. Respondents were neutral that total number of employees

leaving their firm has reduced in the last five years with a mean of 3.43 and a standard

deviation of 1.00 and also neutral that employees have positive attitude towards their

work with a mean of 3.41 and a standard deviation of 1.07.

39

Table 4.7: Benefits of Employee Engagement in Effective Service Delivery

Statement Mea

n

Std. Dev.

We have motivated staffs in our company 4.20 1.06

Employees in our firm perform well because they are satisfied 4.07 0.88

Our employees are willing to go an extra mile to provide quality

services to customers

4.17 0.12

Our employees are more involved in their work 4.22 1.07

Our employees have positive influence on profitability of the

business as reflected in the quality of services.

4.13 1.08

Our employees stay with the firm for more than 5 years on

average

4.03 1.09

Our employees are proud to be identified by our firm 3.49 0.33

Our employees sacrifice their private time to the service of our

company

3.48 1.09

Our employees are committed in their tasks 4.11 1.02

Our Employees report early at work 4.02 1.01

Our employees deliver on their assignment on time 4.06 0.05

Our employees are happy to be associated with the firm 3.90 1.06

We have loyal employees who are motivated to stay in the

company for longer period

3.96 1.09

Our employees have positive attitude towards their work 3.41 1.07

Our employees have self-control when carrying out their duties. 3.53 1.01

Our employees perform their tasks competently 3.58 1.08

The total number of employees leaving our firm has reduced in

the last five years

3.43 1.00

Our employees exercise self-control in responding to concerns

raised by customers

4.08 0.09

Our employees have been empowered to make decisions on behalf

of the firm

3.98 0.69

Our employees utilize their skills to the maximum 3.97 1.03

Our employees are promoted from time to time on merit 3.88 1.05

Our managers delegate different responsibilities to their junior

staff from time to time

3.72 0.67

Aggregate Score 3.88 0.847

4.3.1 Regression Results of Benefits of Employee Engagement in Effective

Service Delivery.

The study conducted the regression analysis to determine the benefit of employee

engagement on effective service delivery. The findings are presented in the

subsequent sections.

40

4.3.1.1 Model Summary

From the findings in the model summary bellow, the coefficient of correlation R is

0.770 showing a strong positive correlation between the benefits of employee

engagement on effective service delivery among small and medium accountancy

firms in Nairobi County. The coefficient of determination R square is 0.593 showing

that 59.3% change in service delivery is explained by the benefits of employ

engagement. The other factors explain 40.7%. The findings on the model summary of

regression are presented in Table 4.8.

Table 4. 8: Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .770a .593 .587 1.76013

4.3.1.2 ANOVA Statics

Analysis of Variance (ANOVA) was performed at 5% level of significance and the

findings are indicated in 4.9. The ANOVA findings at 5% level of significance

indicate an F calculated of 110.552. In comparison to the value of F critical (at df.1,

77), it can be seen that F calculated is greater than F critical. This implies that the

regression model was a significant predictor of benefits of employee engagement on

effective service delivery among small and medium accountancy firms in Nairobi

County. With a p value 0.000<0.05, this indicates that benefits of employee

engagement significantly affect service delivery among small and medium

accountancy firms in Nairobi County.

Table 4.9: ANOVA Statics

Model Sum of Squares df Mean Square F Sig.

Regression 342.497 1 342.497 110.552 .000b

Residual 235.452 76 3.098

Total 577.949 77

4.3.1.3 Regression of Beta Coefficients and Significance

The findings on regression beta and significance as determined by p-values are

indicated in Table 4.10. The established regression equation becomes:

41

Y = 10.962+0.377X1 …………………………………………………………….(i)

Where Y = Service Delivery

X1 = Benefits of Employee Engagement

According to the findings, effective service delivery among small and medium

accountancy firms in Nairobi County would be 10.962. An increase in benefits of

employee engagement, other factors kept constant would result in a 37.7 % increase

in the service delivery among small and medium accountancy firms in Nairobi. At 5%

level of significance, the study noted that benefits of employee engagement (p<0.05)

has significant effect on service delivery.

Table 4.10: Regression of Beta Coefficients and Significance

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) 10.962 2.796 3.921 .000

Benefits .377 .036 .770 10.514 .000

4.4 Engagement Strategies Employed in Effective Service Delivery

Several statements on engagement strategies were proposed by the study, respondents

were required to indicate their level of agreement with each of them on a scale of 1-5

with 5-Strongly agreed, 4-Agreed, 3-Neutral, 2-Disagree, 1-Strongly disagreed. The

study then calculated the mean and standard deviations to help derive the average

perceptions held by the respondents on each statement. Respondents of the study

revealed that the firm communicates to all employees the requirements for individuals

to hold each position with a mean of 4.44 and a standard deviation of 1.03, Employees

are trained and have mentorship programs which had mean of 4.30 and a standard

deviation of 1.03 and that the firm promotes a learning culture among employees for

better performance with a mean of 4.22 and a standard deviation of 1.07. Respondents

agreed that the firm enlarges the job tasks for its employees from time to time with a

mean of 4.20 and a standard deviation of 1.02 also the firm trains its staff to become

experts in their different professional areas with a mean of 4.16 and a standard

deviation of 1.08, firm employs staff from diverse work experience with a mean of

4.12 and a standard deviation of 1.04 and that the firm organizes professional

trainings for its staff with a mean of 4.11 and a standard deviation of 0.96.

42

Respondents also revealed that their firm has set up mentorship programs for junior

staff with a mean of 4.10 and a standard deviation of1.05, the firm has a flexible

working hour for its staff with a mean of 4.08 and a standard deviation of 1.01 and

that the firm compensate its employees competitively with a mean of 4.07 and a

standard deviation 1.08. Respondents agreed that firms employ staff from diverse

spiritual practice with a mean of 4.06 and a standard deviation 1.01, firm employs

staff of diverse age sets with a mean of 4.05 and a standard deviation 1.06 and that the

firm presents a number of career growth opportunities for its staff with a mean of 4.04

and a standard deviation of 0.81. Respondents of the study further agreed that their

firm policy is to promote internal staff before considering external applicants with a

mean of 4.03 and a standard deviation of 0.86, they have training, development and

orientation program for their staff had a mean of 4.02 and a standard deviation1.09,

their firm ensures that its employees engage in complex and more challenging tasks

had a mean of 4.00 and a standard deviation of 0.21 and also the firm balances gender

in its staff recruitments had a mean of 3.93 and a standard deviation of 1.09.

The study further found out respondents agreed that firm has a well-planned

orientation program for all new staff with a mean of 3.85 and a standard deviation of

1.04, the firm employs staff from diverse racial background had a mean of 3.80 and a

standard deviation of 0.77, the company select the right applicants for the right job

with a mean of 3.75 and a standard deviation 0.14 and that the firm employs staff

from diverse ethnicity with a mean of 3.74 and a standard deviation of 0.35 however

respondents were neutral that the firm promotes internal staff for an existing vacancy

with a mean of 3.36 and a standard deviation of 108.

43

Table 4.11: Engagement Strategies Employed in Effective Service Delivery

Statement Mean Std. Dev.

Our firm promotes a learning culture among employees for

better performance

4.22 1.07

Our firm trains its staff to become experts in their different

professional areas

4.16 1.08

Our firm communicate to all employees the requirements for

individuals to hold each position

4.44 1.03

Employees are trained and have mentorship programs 4.30 1.03

Our Firm has set up mentorship programs for junior staff 4.10 1.05

Our Firm organizes professional trainings for its staff 4.11 0.96

Our firm enlarges the job tasks for its employees from time to

time

4.20 1.02

Our firm ensures that its employees engage in complex and more

challenging tasks

4.00 0.21

Our Firm promotes internal staff for an existing vacancy 3.36 1.08

The company select the right applicants for the right job 3.75 0.14

We have training, development and orientation program for our

staff

4.02 1.09

Our firm compensate its employees competitively 4.07 1.08

Our firm policy is to promote internal staff before considering

external applicants

4.03 0.86

Our firm has a flexible working hour for its staff 4.08 1.01

Our firm has a well-planned orientation program for all new staff 3.85 1.04

Our firm presents a number of career growth opportunities for its

staff

4.04 0.81

Our firm employees’ staff of diverse age sets 4.05 1.06

Our firm balances gender in its staff recruitments 3.93 1.09

Our firm employees’ staff from diverse ethnicity 3.74 0.35

Our firm employees’ staff from diverse racial background 3.80 0.77

Our firm employees’ staff from diverse work experience 4.12 1.04

Our firm employees’ staff from diverse spiritual practice 4.06 1.01

Aggregate Score 4.21 0.952

4.4.1 Regression Results of Engagement Strategies Employed in Effective Service

Delivery

The study sought to determine the overall regression model of the engagement

strategies employed in effective service delivery. The findings are presented in the

subsequent sections.

4.4.1.1 Model Summary

From the findings in the model summary bellow, the coefficient of correlation R is

0.679 showing a strong positive correlation between the engagement strategies

44

employed on effective service delivery among small and medium accountancy firms

in Nairobi County. The coefficient of determination R square is 0.461 showing that

46.1% change in service delivery is explained by the engagement strategies

employed. The other factors explain 54.9%. The findings on the model summary of

regression are presented in Table 4.12.

Table 4.12: Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .679a .461 .454 2.02389

4.4.1.2 ANOVA Statistics

Analysis of Variance (ANOVA) was performed at 5% level of significance and the

findings are indicated in Table 4.13. The ANOVA findings at 5% level of significance

indicate an F calculated of 65.096. In comparison to the value of F critical (at df.1,

77), it can be seen that F calculated is greater than F critical. This implies that the

regression model was a significant predictor of engagement strategies employed on

effective service delivery among small and medium accountancy firms in Nairobi

County. With a p value 0.000<0.05, this indicates that engagement strategies

employed significantly affect service delivery among small and medium accountancy

firms in Nairobi County.

Table 4.13: ANOVA Statistics

Model Sum of Squares df Mean Square F Sig.

Regression 266.643 1 266.643 65.096 .000b

Residual 311.306 76 4.096

Total 577.949 77

4.4.1.3 Regression of Beta Coefficients and Significance

The findings on regression beta and significance as determined by p-values are

indicated in Table 4.14. The established regression equation becomes:

Y = 42.024+0.306X1…………………………………………………………….(ii)

Where Y = Service Delivery

X1 = Engagement Strategies Employed

According to the findings, effective service delivery among small and medium

accountancy firms in Nairobi County would be 42.024. An increase in engagement

45

strategies employed, other factors kept constant would result in a 30.6 % increase in

the service delivery among small and medium accountancy firms in Nairobi. At 5%

level of significance, the study noted that engagement strategies employed (p<0.05)

has significant effect on service delivery.

Table 4.14: Regression of Beta Coefficients and Significance

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) 42.024 2.942 14.284 .000

Strategies .306 .038 .679 8.068 .000

4.5 Challenges in Employees’ Effective Service Delivery

The study sought to find out the level of agreement of the respondents on several

statements on challenges in employees’ effective service delivery. On a scale of 1-5

with 5-Strongly agreed, 4-Agreed, 3-Neutral, 2-Disagree, 1-Strongly disagreed. The

study then calculated the mean and standard deviations to help derive the average

perceptions held by the respondents on each statement. From the findings respondents

of the study agreed that they make sure that the employees have morale when it

comes to performing their duties with a mean of 4.16 and a standard deviation of 1.06,

the firm has employed good human resource practices in management of change with

a mean of 4.15 and a standard deviation of 1.00 and also the abruptness of change

itself make it difficult for the firm to respond timely with a mean of 4.06 and a

standard deviation of 1.16. Respondents also revealed that employees feel that change

management is painful, disruptive with a mean of 4.06 and a standard deviation of

1.08, employees are normally reluctant to embrace change in the way they perform

their tasks with a mean of 4.03 and a standard deviation of 1.07, they are very keen on

recruitment and selection for better service delivery which had a mean of 3.99 and a

standard deviation of 0.04 and that Staff skills deficiency limit their organization’s

response to change with a mean of 3.92 and a standard deviation of 1.09.

The study further established that huge investment required to align their firm to

changing business environment affect service delivery had a mean of 3.90 and a

standard deviation of 1.05, they try their best to improve the reward system in the

company for better service delivery with a mean of 3.87 and a standard deviation

of.05, Employees feels that change management uncomfortable with a mean of 3.83

46

and a standard deviation of 0.67, limited resources make it difficult for the firm to

respond to change adequately with a mean of 3.82 and a standard deviation of 0.32

and finally poor human resource practices affect the employee’s welfare had a mean

of 3.74 and a standard deviations of 0.06.

From the findings it’s clear that the firms face many challenges for effective service

delivery, employees are always reluctant for change and feel uncomfortable to adapt

the changes. It’s also observed that the firms are always keen when it comes to

effective service delivery they make sure employees have morals when serving the

customers. The firms have limited resources to respond adequately to various changes

within the organization. It can also be noted that many organizations ensure that

employee motivation is a priority for effective service delivery while recruitment is

handled seriously to ensure employees are equipped with the right skills.

Table 4. 15: Challenges in Employees’ Effective Service Delivery

Statement Mean Std. Dev.

Employees feels that change management uncomfortable 3.83 0.67

Our employees are normally reluctant to embrace change in the

way they perform their tasks

4.03 1.07

Staff skills deficiency limit our organization’s response to

change

3.92 1.09

The abruptness of change itself make it difficult for our firm to

respond timely

4.06 1.16

Limited resources make it difficult for our firm to respond to

change adequately

3.82 0.32

Huge investment required to align our firm to changing

business environment affect our service delivery

3.90 1.05

Employees feel that change management is painful, disruptive 4.06 1.08

Our firm has employed good human resource practices in

management of change

4.15 1.00

Poor human resource practices affect the employee’s welfare 3.74 0.06

We are very keen on recruitment and selection for better

service delivery

3.99 0.04

We try our best to improve the reward system in the company

for better service delivery

3.87 1.05

We make sure that the employees have morale when it comes

to performing their duties

4.16 1.06

Aggregate Score 3.96 0.80

47

4.5.1 Regression Results of Challenges in Employees’ Effective Service Delivery

The study conducted the regression analysis to determine the benefit of employee

engagement on effective service delivery. The findings are presented in the

subsequent sections.

4.5.1.1 Model Summary

From the results in the model summary bellow, the coefficient of correlation R is

0.653 showing a strong positive correlation between the challenges in employees’

effective service delivery among small and medium accountancy firms in Nairobi

County. The coefficient of determination R square is 0.426 showing that 42.6%

change in service delivery is explained by challenges in employees’ effective service

delivery. The other factors explain 58.4%. The findings on the model summary of

regression are presented in Table 4.16.

Table 4.16: Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .653a .426 .419 2.08897

4.5.1.2 ANOVA Statistics

Analysis of Variance (ANOVA) was performed at 5% level of significance and the

findings are indicated in Table 4.17. The ANOVA findings at 5% level of significance

indicate an F calculated of 56.441. In comparison to the value of F critical (at df.1,

77), it can be seen that F calculated is greater than F critical. This implies that the

regression model was a significant predictor of challenges of employee’s effective

service delivery among small and medium accountancy firms in Nairobi County. With

a p value 0.000<0.05, this indicates that challenges of employee’s significantly affect

service delivery among small and medium accountancy firms in Nairobi County.

Table 4.17: ANOVA Statistics

Model Sum of Squares df Mean Square F Sig.

Regression 246.299 1 246.299 56.441 .000b

Residual 331.650 76 4.364

Total 577.949 77

48

4.5.1.3 Regression of Beta Coefficients and Significance

The study sought to find out the regression beta and significance as determined by p-

values; the results are indicated in Table 4.18. The established regression equation

becomes:

Y = 42.024+0.306X1 ……………………………………………………………. (iii)

Where Y = Service Delivery

X1 = Challenges in Employees Effective Service Delivery

According to the findings, effective service delivery among small and medium

accountancy firms in Nairobi County would be 42.433. An increase in challenges in

employees, other factors kept constant would result in a 61.3 % increase in the service

delivery among small and medium accountancy firms in Nairobi. At 5% level of

significance, the study noted that Challenges in employee effective service delivery

(p<0.05) has significant effect on service delivery.

Table 4.18: Regression of Beta Coefficients and Significance

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

(Constant) 42.433 3.213 13.206 .000

Challenges .613 .082 .653 7.513 .000

4.6 Service Delivery

The study further sought to find out the level of agreement of the respondents about

the service delivery in their organizations on a scale of 1-5 with 5-Strongly agreed, 4-

Agreed, 3-Neutral, 2-Disagree, 1-Strongly disagreed. The study then calculated the

mean and standard deviations to help derive the average perceptions held by the

respondents on each statement. The study established that the firm is able to manage

changes in customer preferences had a mean of 4.00 and a standard deviation of 1.23,

the firm delivers promised services to customers in a consistent manner which had a

mean of 3.95 and a standard deviation of 0.93. Respondents also agreed that

employees deliver speedy services to customers with a mean of 3.92 and a standard

deviation of 0.93, employees contact clients in response to their complaints with a

mean of 3.72 and a standard deviation of 1.24 and that employees attend to customers

individually with a mean of 3.71 and a standard deviation of 0.85.

49

Table 4.19: Service Delivery

Statement Mean Std. Dev.

The firm delivers promised services to customers in a consistent

manner

3.95 0.93

Employees attend to customers individually 3.71 0.85

Our employees deliver speedy services to customers 3.92 0.93

Our employees contact clients in response to their complaints 3.72 1.24

Our firm is able to manage changes in customer preferences 4.00 1.23

Aggregate Score 4.83 1.30

4.7 Chapter Summary

This chapter provided the response rate of the study and the background information

of the respondents. It covered the inferential statistics and provided the findings based

on the research questions in terms of means and standard deviation. This section of

the study also provided the regression analysis that was performed which included the

model summary, ANOVA statistics and the regression beta coefficients and

significance. Next is chapter five which presents a summary of the results, discussion

of the findings, conclusion and recommendations for improvement and for further

research.

50

CHAPTER FIVE

5.0 DISCUSSION, CONCLUSSION AND RECCOMENDATIONS

5.1 Introduction

This chapter presents a summary of the results and findings in line with the research

questions. This is followed by conclusions based on the key findings from the

analysis. Thereafter, recommendations are provided in terms of suggestions for

improvements and further studies in that order.

5.2 Summary

The purpose of this study was to investigate the effects of employee engagement on

effective service delivery among small and medium accountancy firms in Nairobi

County. The study was guided by three research questions namely: what are the

effects of employee engagement on service delivery among small and medium

accountancy firms in Nairobi County? what are the strategies put in place to ensure

effective employee engagement among small and medium accountancy firms in

Nairobi County? what are the challenges faced in achieving employee engagement

among small and medium accountancy firms in Nairobi County?

The study adopted a descriptive research design in explaining the determining factors

affecting performance of small and medium accounting practice firms in Kenya. The

target population of this study was 110 human resource departments in the

accountancy firms in Nairobi County. The study used census and hence all the 110

respondents were included. Data was collected using structured questionnaire that

contained both open and closed ended questions. The collected information was then

analyzed using the Statistical Package for Social Sciences (SPSS) in terms of both

descriptive and inferential statistics. Descriptive statistics were in terms of frequency

tables, means and standard deviation, while inferential statistics included Pearson

Moment of Correlation and multiple regression analyses.

51

From descriptive statistics on benefits of employee engagement, most of the

respondents agreed that employees were more involved in their work, the firms had

motivated staffs in their company and employees were willing to go an extra mile to

provide quality services to customers. Respondents also agreed that employees had

positive influence on profitability of the business as reflected in the quality of

services, employees were committed in their tasks and employees exercised self-

control in responding to concerns raised by customers and those employees in the

firms performed well because they are satisfied. The results also indicated that

employees delivered their assignment on time and employees stayed with the firm for

more than 5 years on average. Regression results showed that employee engagement

strategies have positive and significant influence on effective service delivery. The

value of F calculated from ANOVA was large enough to infer the model was good for

use, thus, the model was suitable for predicting the interaction between benefits of

employee engagement and effective service delivery. The findings of regression

analysis indicated employee engagement has postive benefits on effective service

delivery.

The results of descriptive statistics on employee engagement strategies indicated that

the firm communicated to all employees the requirements for individuals to hold each

position, employees were trained and had mentorship programs and that the firm

promoted a learning culture among employees for better performance. Respondents

agreed that the firm enlarged the job tasks for its employees from time to time, also

the firm trained its staff to become experts in their different professional areas,

employed staff from diverse work experience and organized professional trainings for

its staff. Moreover, respondents also revealed that their firms had set up mentorship

programs for junior staff, the firm had a flexible working hour for its staff and firms

compensated its employees competitively. Respondents further agreed that firms

employed staff from diverse spiritual practice; firms employed staff of diverse age

sets and presented a number of career growth opportunities for its staff. From

regression results, employee engagement strategies were found to have a postive and

significant effect on service delivery. The ANOVA findings showed that the overall

model was fit to predict this interaction between employee engagement strategies and

service delivery as supported by a relatively larger value of F calculated relative to F

critical figure.

52

From descriptive statistics on challenges in employee engagement, majority of the

respondents revealed that they made sure that the employees had morale when it came

to performing their duties, the firm had employed good human resource practices in

management of change and also the abruptness of change itself made it difficult for

the firm to respond timely. Respondents also revealed that employees felt that change

management was painful and disruptive. Employees were normally reluctant to

embrace change in the way they perform their tasks, the firm was very keen on

recruitment and selection for better service delivery and staff skills deficiency limited

organization’s response to change. The regression results indicated that the

challenges in employees have significant effect on effective service delivery. The

ANOVA results indicated that the overall model of the study was significant and thus

suitable for predicting how the identified challenges in employee engagement affected

service delivery.

5.3 Discussion

In the sub-section, a comprehensive discussion of the results is provided. This is

provided based on the research questions by comparing the findings and what already

exist as reviewed in chapter two.

5.3.1 Benefits of Employee Engagement in Effective Service Delivery

The study found out benefits of employee engagement has a positive impact on

effective service delivery. An increase in engagement benefits, other factors kept

constant would result to an increase in the service delivery. The results are in line with

Al-dalahmeh et al. (2018) who revealed that low level of employee engagement

among information technology department staff negatively affected their job

satisfaction and overall bank performance. Dajani (2015) found that employee

engagement greatly affected overall job performance among employees. Mbae (2014)

on employee engagement and its effects on performance output among in Kenya

Medical Training College found that employees got on well with colleagues

Employees are more involved in their work and are committed in their tasks and that

the firms motivate staffs in their company. This is in line with Narteh and Odoom

53

(2015) who stated that highly committed employees contribute to improvement in

market share, reduction in staff turnover and greater satisfaction with the activities in

the firm. Kumar and Pansari (2016) noted that committed employees usually report

earlier at the place of work and sometime leave late to ensure that the goals of the

organization are attained and that such employees are motivated by success of the

assigned duties and responsibilities.

Employees were willing to go an extra mile to provide quality services to customers

and had positive influence on profitability of the business as reflected in the quality of

services. The findings conquers with Masakure (2016) noted that employee

engagement is considered as a psychological rather than a social contract. Engaged

employees are willing to go an extra mile to realize the set goals of the organization.

Patterson and Zibarras (2018) opine that it is the desire and goal of every firm to

ensure that customers get quality and effective services and this is best realized

through employee engagement strategies. Rana et al. (2016) argue that employee

engagement ensures that staffs are highly committed to their roles and responsibilities

to ensure that quality services are delivered to customers.

Moreover, employees exercise self-control in responding to concerns raised by

customers while they performed well because they are satisfied; they also deliver their

assignment on time and stay with the firm for more than 5 years on average.

Employee satisfaction is a positive or pleasurable feeling of the mind of the staff in an

organization that results from experience or appraisal of the job. It is how employees

emotionally react to all the circumstances surrounding a given job (Alegre et al.,

2016).

The study further established that employees have been empowered to make decisions

on behalf of the firm, employees utilize their skills to the maximum, and companies

have loyal employees who are motivated to stay in the company for longer period and

employees are happy to be associated with the firm. According to Jayaram and Xu

(2016), employee empowerment indicates ensuring that employees have authority,

self-control and skills to properly carry out their duties and responsibilities.

Empowerment is giving employees the flexibility and right of making decisions and

initiating actions. In South Africa, Patel (2014) used a case of the retail sector to

assess how employee engagement influences performance where the study pointed

54

out significant factors that influence employee performance. These factors include the

reward systems, empowerment, leadership as well as relationship with supervisors.

Employees are promoted from time to time on merit and managers delegate different

responsibilities to their junior staff from time to time. The finding contradicts with

Huang et al. (2015) who established that employee engagement also has an influence

on the level of satisfaction as well as absenteeism among employees. The researcher

argues that the degree of employee motivated is also linked to aspect like work

involvement and turnover of employees. In a study conducted by Mbae (2014), it was

shown that though the employees got on well with colleagues, they were dissatisfied

with engagement in duty on issues relating ton inadequate resources to perform

duties, involvement in decision making, and manner in which promotions were

awarded.

Employees are entitled to perform their tasks competently and have self-control when

carrying out duties. Capability results from the degree of competence of the

employees in an organization. Competence can be viewed in terms of skills and

knowledge that are possessed by given employees of an organization (Buil et al.,

2016). These findings indicates that employees are the main pillars of the firm since

they have a positive influence on the firms profitability through quality service

delivery and if they are motivated accordingly they are likely to become more

efficient and effective when caring out their daily duties (Özçelik, 2015). Employee

satisfaction and self-control improves a firm’s performance by attracting more

customers and retaining existing clients in the long run. Low staff turnover

strengthens the organizational culture embraced by the firm which translates to

improved service delivery among employees.

5.3.2 Engagement Strategies Employed In Effective Service Delivery

From the regression analysis, the results indicated that engagement strategies

employed have a positive effect on effective service delivery on firms. The results is

echoed by Mann and Harter (2016) who examined the worldwide employee

engagement crisis and revealed that in United States of America, the loss among firms

due to disengagement among employees was estimated at $ 250 and $ 300 billion per

year. Similarly, Sendawula et al. (2018) on training, employee engagement and

55

employee performance acknowledged the key role played by employee engagement in

overall employee performance. The level of commitment, involvement, energy,

efficacy, vigor and dedication of employees determine how well they accomplish their

tasks hence affecting the overall effectiveness of small and medium accountancy

firms in service delivery.

The firm communicated to all employees the requirements for individuals to hold

each position, this contradicts with Brooks and Youngson (2016) who established that

it is also important that an organization communicates what is required of employee

in order to be promoted. Career progression ensures that employees get challenging

responsibilities. This is linked to improved service delivery among employees. Henry

and Marioni-Henry (2017) argue that it is important that an organization

communicates what is required of employee in order to be promoted.

Firms also train their employees, offer them mentorship programs and promote a

learning culture among employees for better performance. This finding is in line with

Qu et al. (2017) who noted that employees with enhanced skills through training are

deemed to be more engaged to the activities of the firm and their duties. It is through

training that the value of employees to the firm as well as their employability is

enhanced. Deasy and Mannix‐ McNamara (2017) indicate that a learning culture can

be promoted in an organization by use of a number of methods including training and

mentorship programs. Employees can also be offered chances of trying out on new

things.

It was also revealed that the firm enlarged the job tasks for its employees from time to

time. The firms trains its staff to become experts in their different professional areas

organizations with proper training and orientation practices are characterized by low

cost of hiring staff, greater motivation and retention of employees (Hung, et al.,

2017). Similarly, Pee and Lee (2015) held that different firms are effectively shaping

the job and task design through job enlargement and job enrichment. Job enlargement

is related with ensuring that the tasks of the job are enlarged.

Firms employ staff from diverse work experience and that the firm organizes

professional trainings for its staff, this conquers with Mugo (2012) who noted that in

the microfinance institutions employ staff from diverse educational and professional

56

background, religion among other aspects that need to be well managed for optimal

employee relationship and performance. Barak (2016) consider diversity to revolve

around acknowledgement, understanding, accommodating, appreciating and

celebrating differences and similarities amid people. The author went further note that

it stands for individuality in terms to age, class, gender, ethnicity, physical and mental

ability, income race, sexual orientation, work experience, perceptions and spiritual

practice.

Firms had set up mentorship programs for junior staff, the firm has a flexible working

hour for its staff; the firm compensates its employees competitively. The findings are

in line with Carberry and Zajac (2017) who opined that an organization is able to gain

competitive advantage through the compensation plan in place. This is because a

proper compensation plan helps the firm in attracting best candidates and ensures that

employees are well motivated top ensuring that goals are realized. Moreover firms

employ staff from diverse spiritual practice and of diverse age sets. The firms present

a number of career growth opportunities for its staff, and the firm policy was to

promote internal staff before considering external applicants.

The firms have training, development and orientation program for their staff, the firm

ensures that its employees engage in complex and more challenging tasks and also the

firm balances gender in its staff recruitments. This finding is in line with Baker (2018)

who stated that an organization is able to align its goals with those of its employees

through training and orientation. These implies that the firms employed various

strategies to ensure effective quality service delivery to improve the performance of

the company, the companies were also keen when recruiting employees in various

positions to ensure employees are placed in the right position that they are qualified.

The firms also exercised equality by recruiting employees from different

backgrounds, spiritual practice and ethnic groups.

5.3.3 Challenges in Employees Engagement

It was shown that the challenges in employee engagement have positive and

significant effect on service delivery. In order to increase the effectiveness of

employees in their service delivery, Mpofu and Hlatywayo (2015) opine that

organizations need to address some of the challenges leading to poor service delivery.

57

Some of these challenges in service delivery include inability to manage change,

inadequate employee capacity, poor planning, poor human resource policies and poor

performance management in most organizations.

It was shown that the firms made sure that the employees have morale when it comes

to performing their duties. The firms have employed good human resource practices

in management of changes and the abruptness of change itself make it difficult for the

firm to respond timely. According to Hwang et al. (2015), human resources are

essential assets that influence effective service delivery in an organization.

Organizations embrace human resource practices to ensure that the welfare of

employees is well taken care of. Some of the human resource practices that

organizations embrace include recruitment and selection, reward systems, ensuring

employee morale as well morale. Cascio (2018) provides that change management in

an organization is a state of transition between the current to a future state that an

organization is being directed. On the other hand, Moran and Brighton (2011) noted

that change management tends to be painful, uncomfortable and disruptive. It is

therefore important that the management react to the ever-changing changing business

environment through proper Strengths, Weaknesses, Opportunities and Threats

(SWOT) analysis.

The study also found out that employees feel that change management is painful,

disruptive. The finding conquers with Moran and Brighton (2011) who noted that

change management tends to be painful, uncomfortable and disruptive. It is therefore

important that the management react to the ever-changing changing business

environment through proper Strengths, Weaknesses, Opportunities and Threats

(SWOT) analysis. Employees are normally reluctant to embrace change in the way

they perform their tasks, Firms are very keen on recruitment and selection for better

service delivery and that Staff skills deficiency limit their organization’s response to

change. Moran and Brighton (2011) indicate that change management is alteration of

operations and activities within an organization. This alteration may include change in

overall goals, mission and strategies of an organization that drive its future. Cascio

(2018) noted that change management is the key disruption of the normal ways which

organizations conduct their businesses and that it is inevitable for an organization to

remain competitive in the contemporary business environment.

58

The study further established that huge investment required to align their firm to

changing business environment affect service delivery and that the firms tried their

best to improve the reward system in the company for better service delivery,

employees felt that change management was uncomfortable. Change management is

inevitable for an organization to remain competitive in the contemporary business

environment (Cascio, 2018). As such, organizations are ever monitoring and scanning

their external environment while anticipating and adapting timely to continuous

change. The environment of highly engaged employees is made up of fairness,

support as well as appreciation and reward systems (Ye et al., 2018).

Limited resources made it difficult for the firm to respond to change adequately and

poor human resource practices affect the employee’s welfare. Most startup businesses

are faced with a challenge of limited financial resources and thus unable to embrace

good HR practices and this result into inefficient service delivery. This is slightly

different from the larger businesses that have enough capital for investing in HR

practices in order to increase employee service delivery (Karatepe & Olugbade,

2016). This had an implication that employees were efficient in their daily duties

hence ensuring that the clients are served on time and given the right services they

required. Employees were able to handle customers in a polite manner to create good

relationships with the clients so as to retain them for a longer period. For realization

of the set goals, Karatepe and Olugbade (2016) noted that firms are forced to pool

together the available resources including financial, technological as well as the

talents.

5.4 Conclusion

5.4.1 Benefits of Employee Engagement in Effective Service Delivery

Employee engagement has a positive effect on service delivery since it ensures that

employees are more involved in their work. Most small and medium accountancy

firms had motivated staffs, employees were willing to go an extra mile to provide

quality services to customers and employees had positive influence on their

profitability as reflected in the quality of services. Furthermore, employees were

committed in their tasks and exercised self-control in responding to concerns raised

by customers. Employees in the firms seemed to perform well because they were

59

satisfied and delivered their assignment on time as well as stayed with the firm for

more than 5 years on average.

5.4.2 Engagement Strategies Employed In Effective Service Delivery

Majority of the small and medium accountancy firms communicated to all employees

the requirements for individuals to hold each position. Employees were trained and

had mentorship programs while the firms promoted learning cultures among

employees for better performance. The firms enlarged the job tasks for its employees

from time to time, trained their staff to become experts in their different professional

areas, employed staff from diverse work experience and organized professional

trainings for its staff. Furthermore, the studied firms had set up mentorship programs

for junior staff, had flexible working hour for staff and compensated their employees

competitively.

5.4.3 Challenges in Employees’ Effective Service Delivery

In terms of challenges, it is inferred that the studied firms made sure that the

employees had morale when it came to performing their duties, they employed good

human resource practices in management of and also the abruptness of change itself

made it difficult for the firm to respond timely. The employees felt that change

management was painful and disruptive, employees were normally reluctant to

embrace change in the way they performed their tasks and they were very keen on

recruitment and selection for better service delivery.

5.5 Recommendation

In the sub-section, recommendations are made in terms of suggestions for

improvements and suggestions for further research.

5.5.1 Suggestion for Improvements

5.5.1.1 Benefits of Employee Engagement in Effective Service Delivery

For employee engagement initiatives to be successful, all small and medium

accountancy firms must ensure that they are tailored to the unique needs and

60

motivations of each individual. In order to achieve this management should

incorporate more financial based reward and recognition systems as well as foster the

adoption of indirect employee participation tools. The organization should further

empower employees to be task-solvers and involve them more in participative

decision making and delegation of duty.

It is important for a firm to set goals and challenge their employees to make them to

promote a sense of purpose for effective service delivery. Employees should be

granted the autonomy to improve the way things are done, and involved in decisions

to help them feel a sense of ownership over the direction of the company. Firms to

show employees efforts are recognized and rewarded. Regularly, thanking employee

for their efforts demonstrates firm’s awareness of their hard work and provides

encouragement for them to boost their performance. Organizations should put in place

compensation plan in order to gain competitive advantage. This is because a proper

compensation plan helps the firm in attracting best candidates and ensures that

employees are well motivated top ensuring that goals are realized.

5.5.1.2 Engagement Strategies Employed In Effective Service Delivery

Small and medium accountancy firms should also promote a learning culture among

employees for better performance and enlarge the job tasks for their employees from

time to time. The study also recommends that that top management's function should

not only create conditions for service delivery strategy plan, but also continuously

monitor the implementation process so as to ensure harmony among the influencing

factors.

To better engage modern workforces and help employees meet their career

development needs, organizations should provide relevant interactive training to their

learners as a strategy by including video content and conversation simulations that

focus on specific aspects of an employee’s role to improve employee performance for

effective service delivery. Organizations should also promote a learning culture by

use of a number of methods including training and mentorship programs. Employees

can also be offered chances of trying out on new things.

61

5.5.1.3 Challenges in Employees’ Effective Service Delivery

There is need for enhanced use of performance based budgeting to improve service

delivery among small and medium accountancy firms. The small and medium

accountancy firms should encourage employees to have morale when performing their

duties. The top management of small and medium accountancy firms should employ

good human resource practices in management of changes. The study also

recommends that organizations should put in place measures to manage any arising

changes so that employees do not feel that change management is painful and

disruptive. Organizations should provide proper training programs, friendly job

environment, rapid customer growth and unthawed employee expectations for

effective service delivery among the small and medium size firms in Nairobi County.

5.5.2 Recommendations for Further Studies

The study recommends further studies to be conducted away from Nairobi County to

cover other firms in Kenya. Regression results indicated that apart from employee

engagement, there are other factors with an influence on service delivery. Hence,

future studies should be conducted to examine these other factors.

62

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APPENDICES

APPENDIX I: QUESTIONNAIRE

SECTION A: GENERAL INFORMATION

1. Kindly indicate your gender

Male [ ] Female [ ]

2. What is your highest level of education?

Certificate [ ] Diploma [ ] Degree [ ]

Masters [ ] PhD [ ] Other [ ]

3. What is your position in this organization?

Owner [ ] Manager [ ] Other (specify) [ ]

________________________________________________________

4. How long have you served in this position in this organization?

Less than 1 year [ ] 2-4 years [ ]

More than 4 years [ ]

5. What is the area of specialization for your firm? (SELECT ALL THAT APPLY)

Book Keeping [ ] audit [ ] tax consulting [ ]

Other please specify [ ]

6. In what category is your business?

Sole proprietor [ ] Partnership [ ]

Limited Company [ ] Other Please specify [ ]

SECTION B: BENEFITS OF EMPLOYEE ENGAGEMENT IN EFFECTIVE

SERVICE DELIVERY

7. Below are several statements on benefits of employee engagement in effective service

delivery among small and medium accountancy firms. Kindly indicate your level of

agreement with each. Use a scale of 1-5 where 1 = strongly disagree, 2= disagree, 3 =

Neutral, 4 = Agree, and 5 = Strongly Agree.

72

Statements 1 2 3 4 5

We have motivated staffs in our company

Employees in our firm perform well because they

are satisfied

Our employees are willing to go an extra mile to

provide quality services to customers

Our employees are more involved in their work

Our employees have positive influence on

profitability of the business as reflected in the

quality of services.

Our employees stay with the firm for more than 5

years on average

Our employees are proud to be identified by our

firm

Our employees sacrifice their private time to the

service of our company

Our employees are committed in their tasks

Our Employees report early at work

Our employees deliver on their assignment on time

Our employees are happy to be associated with the

firm

We have loyal employees who are motivated to

stay in the company for longer period

Our employees have positive attitude towards their

work

Our employees have self-control when carrying out

their duties.

Our employees perform their tasks competently

The total number of employees leaving our firm has

reduced in the last five years

Our employees exercise self-control in responding

to concerns raised by customers

Our employees have been empowered to make

73

decisions on behalf of the firm

Our employees utilize their skills to the maximum

Our employees are promoted from time to time on

merit

Our managers delegate different responsibilities to

their junior staff from time to time

8. In your opinion, what are the other benefits of employee engagement in effective

service delivery among small and medium accountancy firms?

_____________________________________________________________________

_____________________________

SECTION C: ENGAGEMENT STRATEGIES EMPLOYED IN EFFECTIVE

SERVICE DELIVERY

9. Below are several statements on engagement strategies employed by small and

medium accountancy firms in Nairobi County for effective for service delivery.

Kindly indicate your level of agreement with each. Use a scale of 1-5 where 1 =

strongly disagree, 2= disagree, 3 = Neutral, 4 = Agree, and 5 = Strongly Agree.

Statements 1 2 3 4 5

Our firm promotes a learning culture among

employees for better performance

Our firm trains its staff to become experts in their

different professional areas

Our firm communicate to all employees the

requirements for individuals to hold each position

Employees are trained and have mentorship programs

Our Firm has set up mentorship programs for junior

staff

Our Firm organizes professional trainings for its staff

Our firm enlarges the job tasks for its employees from

time to time

74

Our firm ensures that its employees engage in complex

and more challenging tasks

Our Firm promotes internal staff for an existing

vacancy

The company select the right applicants for the right

job

We have training, development and orientation

program for our staff

Our firm compensate its employees competitively

Our firm policy is to promote internal staff before

considering external applicants

Our firm has a flexible working hour for its staff

Our firm has a well-planned orientation program for

all new staff

Our firm presents a number of career growth

opportunities for its staff

Our firm employees staff of diverse age sets

Our firm balances gender in its staff recruitments

Our firm employees staff from diverse ethnicity

Our firm employees staff from diverse racial

background

Our firm employees staff from diverse work

experience

Our firm employees staff from diverse spiritual

practice

Our firm employees staff from diverse marital status

10. In your opinion, what are the other engagement strategies employed by small and

medium accountancy firms in Nairobi County for effective for service delivery?

_____________________________________________________________________

_____________________________________________________________________

________________________________

75

SECTION D: CHALLENGES IN EMPLOYEES’ EFFECTIVE SERVICE

DELIVERY

11. Below are several statements on challenges in employees’ effective service delivery

among small and medium accountancy firms in Nairobi County. Kindly indicate your

level of agreement with each. Use a scale of 1-5 where 1 = strongly disagree, 2=

disagree, 3 = Neutral, 4 = Agree, and 5 = Strongly Agree.

Statements 1 2 3 4 5

Employees feels that change management

uncomfortable

Our employees are normally reluctant to embrace

change in the way they perform their tasks

Staff skills deficiency limit our organization’s

response to change

The abruptness of change itself make it difficult for

our firm to respond timely

Limited resources make it difficult for our firm to

respond to change adequately

Huge investment required to align our firm to

changing business environment affect our service

delivery

Employees feel that change management is painful,

disruptive

Our firm has employed good human resource

practices in management of change

Poor human resource practices affect the

employee’s welfare

We are very keen on recruitment and selection for

better service delivery

We try our best to improve the reward system in the

company for better service delivery

We make sure that the employees have morale

when it comes to performing their duties

76

12. In your opinion, what are the other challenges in employees’ effective service

delivery among small and medium accountancy firms in Nairobi County?

_____________________________________________________________________

_____________________________________________________________________

____________________________________

SECTION E: SERVICE DELIVERY

13. Below are several statements on challenges in employees’ effective service delivery

among small and medium accountancy firms in Nairobi County. Kindly indicate your

level of agreement with each. Use a scale of 1-5 where 1 = strongly disagree, 2=

disagree, 3 = Neutral, 4 = Agree, and 5 = Strongly Agree.

Statement 1 2 3 4 5

The firms deliver the promised services to the customers in a

consistent manner

Employees attend to the customers individually

Our employees deliver speedy services to our customers

Our employees contact clients in response to their complaints

Our firm is able to manage changes in customer preferences

77

APPENDIX II: LIST OF ACCOUNTANCY FIRMS IN NAIROBI COUNTY

1. K. Wachira & Associates

2. Kamau & Awuondo CPA

3. Aam Resources

4. Kanyonyo & Associates

5. Abdulbasid & Associates

6. Karanja Kamanu & Company

Apollo & Associates

7. Kariru and Associates

8. ASH Hassan and Associates

9. Karue & Associates

10. Awiti & Associates

11. Kengat Associates

12. Ayunga & Associates

13. Kepherfranklin & Associates

14. Barasa Okechi & Company

15. Khalid & Company

16. Basil Doyle & Associates

17. Khoya & Company CPAK

18. Bassan Khanna Saini Kiage &

Associates

19. Caleb Ndolo & Associates

20. Kiarie Kangethe & Co.

21. Bell-Mount & Associates

22. Kibiego Kiptum & Co.

23. Charles Mutuku Maingi

Kigathi & Associates

24. Benconsult & Associates

25. Kigundu Mwangi & Associates

26. Chege Muchunguzi Mwangi &

Company

27. Kiige & Associates

28. Clyde & Associates

29. Kilaka & Associates

30. Costa Luis & Co.

31. Kimani Gitahi & Associates

32. D.K Waweru & Associates

33. Kimani Mburu & Associates

34. DMK Muathe & Associates

35. Kimuati Bett & Company

36. DMG Peter & Associates

37. Kingangi Kamau & Company

38. DMC Associates

39. Kingori Kimani & Company

40. David Ngugi waweru T/A

D.N.Waweru & Associates

41. Kinyanjui & Associates

42. Dan & Associates Kinyoe &

Company

43. Esani & Associates

44. Kioi & Associates

45. Evanson Munene & Waruhiu

Kioko & Associates

46. Esther Muchemi & Co

47. Kiragu Njiru & Company

48. Eunice Njuguna and Company

49. Kirugu & Associates

50. F.K. Kimuhu KM Ndura &

Associates

51. Fintax Associates

52. Labchey & Associates

53. Five Elements Advisory

Lawrence and associates

54. Francis Kieti & Associates

55. Leon Williams & Associates

78

56. Francis Kigo Njenga Lishenga

& Company Associates

57. G Gitau & Associates

58. M.N.Nyakang'o & Associates

59. Gachoka & associates

60. Mabeya & Associates

61. Gade Associates

62. Maingi & Associates

63. Gathogo & Associates

64. Makeni Mutua & Associates

65. Gemal & Company Makonnen

& Company

66. Geoffe & Associates

67. Malinda & Associates

68. Gichure & Associates

69. Nyabena & Associates

70. Gichuru M & Company

71. M K Mazrui & Associates

72. Gikuru Kazibwe & Company

73. M.N Cliff& Associates Gitaka

& Associates

74. Nyaga Mugo & Co.

75. Githiga Mwangi & Associates

76. Nyagari & Associates

77. Hank Kinyua & Associates

78. Nyambari & Associates

79. Hassan & Company

80. Nyasae & Associates

81. Henry Smith & Wislon O.M.

82. Ngotho & Associates

83. IMG &Associates

84. Obwocha & Associates

85. J G Associates

86. Simiyu Toywa & Company

87.

88. J M Gitau & Company

89. Sir Robert & Company

90. J M Ikonya & Associates

91. Smith & Associates

92. J.N. Matheka & Associates

93. Solomon George and Company

94. Jaidev Nanji & Co.

95. Sol & Associates

96. Jam Martins Gachuhi &

Company

97. Tela Alusala & Company

98. James & Company Associates

99. Thoithi & Associates

100. Josephat Waititu & Associates

101. Thuku & Associates

102. Josiah Ongaro & Associates

103. Thumbi Nga'ang'a & Associates

104. K & A Certified Public Accountants

105. Wachira N Associates

106. K Njoroge & Company

107. Wambu & Associates ‘

108. kago kagwi & associates

109. Wambugu Wangai & Company

110. Kamani & Associates

111. Wamutu & Associates

79

APPENDIX III: RESEARCH PERMIT