Employee-Employer Relations and Employee Performance Among Small and Medium Enterprises in Central Region

Abstract

This study was aimed on the examination of the effect of employer-employee-employer relations on employee performance. Specifically, the study sought to examine the employee-employer relations among Small and Medium Enterprises in the Central Region; to assess the level of employee performance among Small and Medium Enterprises in the Central Region; to examine the relationship between employee-employer relations and employee performance among Small and Medium Enterprises in the Central Region. The study was centered on the Herzberg’s two-factor theory and Locke’s theory of goal setting. The “study employed the explanatory research design since the study tested the relationship between the various variables. The data collection instruments were questionnaire. The study employed the quantitative research approach. The simple random sampling technique was used in selecting a respondent of 326. Descriptive statistics and structural equation model were employed to analyse the objectives of the study. The study found that employees in the region generally perceived their organizations as fostering positive relations with their employers. Key aspects such as open communication, support from colleagues and supervisors, and the opportunity for professional growth were highly rated by the respondents. The study found that employees in the SMEs studied generally rated their performance highly. The results from the structural equation model indicated that improvements in employee-employer relations are associated with higher levels of employee performance. The recommended that employees of small and medium enterprises must foster a culture of open communication.