Influence of Performance Management Practices on Employee Job Performance in Matatu Savings and Credit Cooperative Organizations in Meru County, Kenya

Abstract

Employee job performance is essential for service consistency, customer satisfaction, operational discipline, and organizational sustainability in Kenya's public transport sector. Despite the formalization of Matatu Savings and Credit Cooperative Organizations, performance challenges persist due to weak target setting, inconsistent supervision, inadequate feedback, and uneven accountability systems. This study assessed the influence of performance management practices on employee job performance among Matatu Savings and Credit Cooperative Organizations in Meru County, Kenya. The study was anchored on Goal-Setting Theory and supported by Human Capital Theory. A positivist research philosophy and descriptive-correlational design were adopted. The target population comprised 1,669 drivers, stage clerks, and management officials, from which 323 respondents were sampled using stratified and simple random sampling. Structured questionnaires generated 299 valid responses. Data were analyzed using descriptive statistics, Pearson correlation, and simple linear regression. Findings established that performance management practices had a positive and statistically significant influence on employee job performance (r = .857, R² = .735, β = .857, t = 28.679, p = .000). The study concluded that clear targets, regular evaluation, consistent feedback, close monitoring, and fair disciplinary enforcement improve employee accountability and performance. It recommended formal performance management systems to strengthen service delivery.