THE EFFECT OF ORGANISATION STRUCTURES AND COMPENSATION POLICIES ON EMPLOYEE PERFORMANCE IN PUBLIC SERVICE INSTITUTIONS IN KENYA, A CASE OF THE WATER SECTOR TRUST FUND

Public service institutions have often been handicapped by inappropriate organisational structures featuring excessive levels of bureaucracy and characterised formalisation, specialisation, impersonality hierarchy. Many public sector organisations do not provide competitive compensation for their employees owing to pay that factor into consideration prevailing market valuations certain jobs. The study’s objectives were determine the influence structures, policies on employee performance in Kenya, A case Water Sector Trust Fund. study adopted coordination theory expectancy motivation. This applied a descriptive research design. It focused target population 150 staff WSTF office premises Nairobi County. questionnaire was used data collection due benefit inclusion more extensive enquiries. then SPSS as platform conducting analysis, correlation analysis regression analysis. results presented through use mixture graphs tables. findings that; has incorporated an structure enhanced evidenced adoption hierarchical where each manager oversees smaller group employees; making decentralisation effective adaptation specific circumstances restructuring exercise. However, needs be done reduce level centralisation top decision making, well ensuring clarity management so remove blurred lines authority responsibility. organisation institutionalised led improved performance. ensured integration communication content control effort improve its communication. it failed enhance competencies essential skills such despite having bloated workforce. assured positive reinforcements fair treatment; greater job involvement adopting high work systems; engaging processes, procedures techniques innovation. hampered poor remuneration, delayed payment salaries, stagnation one position or long. Key Words: Coordination Techniques, Organisation Structures, Compensation Policies, Employee Performance Service Institutions CITATION: Tinkoy, W. S., & Makhamara, F. H. (2023). effect Strategic Journal Business Change Management, 10 (1), 440 – 453.