THE MEDIATING ROLE OF EMPLOYEE ATTITUDE ON PARTICIPATION-PERFORMANCE RELATIONSHIP IN STATE OWNED CORPORATIONS IN KENYA

Abstract

Purpose:The paper aims to clarify the relationship between employee participation and performance of organizations, and tries to demonstrate the mediator role of employee attitude in this relationship. Design/Methodology/approach: The proposed model was analyzed with a sample of 378 workers in 20 state owned corporations in kenya. Findings:Three participation schemes were found to influence significantly the performance of state corporations in Kenya.These were: personalized empowerment schemes, workteams,and representative schemes.Financial participation schemes however had no significant influence on performance of state corporations. Employee attitude had a strong mediating effect on financial and indirect participation schemes. Employee attitude had moderate mediating effect on use of workteams and performance relationship. However, employee attitude does not have any significant mediating effect on the relationship between use of personalized empowerment schemes and performance of state corporations in Kenya.