ABSTRACT

Employee relations is one of the key fundamental elements of organizational performance, prosperity and sustainability. Since good employee relations results in a highly committed, motivated and loyal employees there is need for organizations to develop strategies that will improve performance. Employee relations strategy involves decisions and actions made by the management affecting the way in which the organization relates with its employees. The general objective of this study was to establish the effect of employee relations strategies on the performance of Water and Sewerage service providers in Nairobi Kenya. The Water and Sewerage service provider under study was Nairobi City Water & Sewerage Company, Kenya owing to the fact that it is the largest service provider both in Nairobi and Kenya based on customer base and revenue turnover hence the findings were generalized to the entire population. The study was guided by the following specific objectives; To examine the effect of employee welfare, communication, employee participation and grievance resolution mechanism on the performance of Nairobi City Water & Sewerage Company, Kenya. The study was anchored on four theories; unitarist, pluralist, system and process theories. The study employed a descriptive design. The target respondents were 3534 staff cutting across all cadres. Stratified random sampling was applied to select 10% of respondent from each stratum of; senior managers, middle level managers, supervisors and support staff thus sample population was 354.Primary data was collected using structured questionnaires and analyzed using descriptive and inferential statistics and the results presented in tables. The study found that employee welfare, communication, employee participation and grievance resolution as components of employee relations strategies significantly influence organizational performance at Nairobi City Water and Sewerage Company, Kenya and therefore various strategies to strengthen these components of employee relations strategies should be explored and put in place. The multiple regression analysis results indicated that variations in employee relations strategies discussed that is; employee welfare, communication, employee participation and grievance resolution explains 54.8% of the variations on organization performance at Nairobi City Water and Sewerage Company Kenya meaning the other employee relations strategies for training, recruitment among others that influence performance of Nairobi City Water and Sewerage Company. The study recommended that a similar study should be carried out in various organizations in other sectors of the economy to complement the findings.