Employee Work Ethics and Organization Performance: Reviewing the Relationship in the Kenyan Insurance Industry

  • Benjamin Abongo Kenya Methodist University, Nairobi, Kenya
  • Rayvisic Mutinda
  • Thomas Senaji
  • Nancy Rintari

Abstract

Faced with a highly competitive and highly volatile operating atmosphere, insurance companies are forced to seek means and ways to acquire and maintain a competitive advantage. This study considers the ethical values of employees as the important area of interest for insurance managers who are performance oriented. The researcher planned to establish how employees cope with the dynamics of the contemporary customer. More particularly, the study looked at how ethical practices affect employee and the insurance company performance. The study investigated ethical values, ethical guidance and ethical reporting as the major constructs for employee work ethics within the insurance sector in Kenya. The researcher used the employee risk triangle, social exchange and expectancy theories as the basis upon which the study model was founded. The researcher considered the insurance industry as the unit of analysis. The target population was established as the insurance companies and insurance intermediaries operating in the republic of Kenya at the time of the study. Study targeted all the 62 insurance companies in Kenya realizing 65% response rate with primary data being collected using a structured questionnaire in these companies. All the three employee work ethics constructs of ethical values, ethical guidance and ethical reporting were observed to affect the performance of insurance companies in Kenya. The study confirms that employee work ethics affects the performance of insurance companies, and therefore, employee work ethics should be an area of focus for the modern insurance companies, highlighting the value of work ethics in improving job performance, hence contributes to the literature and theoretical models related to ethics in the modern organization.

Keywords: Employee Work Ethics, Ethical Values, Organization Performance, Insurance Sector

References

Al Mahjob Jamal AA, (2018). The Role of Business Ethics in Improving the Quality of Job Performance. Journal of Entrepreneurship and Organization Management, 7: 224. doi: 10.4172/2169-026X.1000224

Banks S. (2014). Reclaiming social work ethics: Challenging the new public management. Ethics, critical and radical debates in social work, 1: 1-24.

Blau, P.M. (1964). Exchange and Power in Social life. New York: Wiley

Butts J.B (2013). Ethics in Organizations and Leadership, (Chapter 4 Pg. 119). Jones and Bartlett Publishers

Cardona, P., Lawrence, B.S. and Bentler, P.M. (2004). The influence of social and work exchange relationship. Group and Organization Management, 29: 219-247.

Cragg, W., & Matten, D. (2011). Ethics, corporations, and governance. Journal of Business Ethics, 102(1), 1-4.

DeConinck, J.B. (2010). The influence of ethical climate on marketing employees’ job attitudes and behaviors. Journal of Business Research, 63(4), 384-391

Drucker, P.F (1981). What is business ethics? The Public Interest, 63,18

Eisenberger, R., Armeli, S., Rexwinkle, B., Lynch, P.D., and Rhoades, L. (2001). Reciprocation of perceived organizational support. Journal of Applied Psychology, 86: 42-51.

George J.M. & Jones G.R. (1996). Understanding and Managing Organizational Behaviour. Student Value Edition, 6 Ed.

Gouldner A., (1960). The Norm of Reciprocity: A Preliminary Statement. American Sociological Review, 25, 161-178. Doi 10.2307/2092623

Gouldner, A.W. (1960). The norm of reciprocity. American Sociological Review, 25: 161-178.

Korsgaard, M.A; Meglino, B.M; Lester, S.W; and Jeong, S.S. (2010). Paying you back or Paying me forward: Understanding rewarded and unrewarded OCB. Journal of Applied Psychology, 95(20): 227-290.

Lewis, P. V. (1985). Defining ‘business ethics’: Like nailing jello to a wall. Journal of Business Ethics, 4(5), 377-383.
Longstaff, F. A. (2010). The subprime credit crisis and contagion in financial markets. Journal of Financial Economics, 97(3), 436-450.

Marta JKM, Singhapakdi A, Lee DJ, et al. (2013). Perceptions about ethics institutionalization and quality of work life: Thai versus American marketing managers. Journal of Business Research, 66: 381-389.

Michael, J. (2006). Developing ethical corporate culture in three organizations. Corporate Social Responsibility in the Supply chain, 8(1) 35 – 52.

Murtaza G., Abbas M, Raja U., Roques O., Khalid A., et al. (2016). Impact of Islamic work ethics on organizational citizenship behaviors and knowledge sharing behaviors. Journal of Business Ethics, 133: 325-333.

Mwaponda, P. W (2009). Factors influencing ethical standards of managers within the Kenyan oil industry. Unpublished MBA Project, University of Nairobi.

Organ, D.W. (1988). Organizational Citizenship Behaviour: The good soldier syndrome. Lexington, MA: Lexington Books.

Parrott L (2014). Values and ethics in social work practice. Learning Matters.

Ross, G.L. (2011). Five Questions for Addressing Ethical Dillema. Journal of Strategy & leadership, 39 (6), 35-42.

Sapovadia V. & Patel S., (2013). Business Ethics & Employee Turnover: CAFE Matrix. Munich Personal RePEc Archive (MPRA), 68784. Shanti Business School, LJ Institute of Management Studies.

Shaw, W. H. (2010). Business Ethics. CengageBrain.com.

Terris, L.H. (1985). Corporate Policing and Corporate Governance: What Can We Learn from Employee Risk Triangle? James Currey Ltd, Oxford.

Trevino, L.K. and Nelson, K.A. (2011). Managing business ethics. John Wiley & Sons.

Tripathi S.P., (2014). Impact of Work Ethics on Organizational Commitment and Employee Satisfaction at HDFC Bank Indore, India. Global Journal for Research Analysis, 3(5)

Valentine, S., & Fleischman, G. (2008). Ethics programs, perceived corporate social responsibility and job satisfaction. Journal of Business Ethics, 77(4), 159–172. http://dx.doi.org/10.1007/s10551-006-9306-z

Valentine, S., Godkin, L., Fleischman, G. M., & Kidwell, R. (2011). Corporate ethical values, group creativity, job satisfaction and turnover intention: The impact of work context on work response. Journal of Business Ethics, 98(3), 353–372. http://dx.doi.org/10.1007/s10551-010-0554-6 |

Vieira M.E.R., (2013). The effects of ethical behavior on the profitability of firms – a study of the Portuguese construction industry. Escola Superior de Technologia e Gestao: Instituto Politecnico de Leiria

Vig S. and Dumicic K., (2016). Impact of Commitment to Business Ethics to Nonfinancial Business Performance. Interdisciplinary Description of Complex Systems, 14(2), 165-181

Vig, S. (2014). Developing Ethical Organization: Values, Implementation and Governance. 6th International Scientific Conference on Economic and Social Development and 3rd Eastern European ESD Conference: Business Continuity. Vienna
Published
2019-05-20
How to Cite
Abongo, B., Mutinda, R., Senaji, T., & Rintari, N. (2019). Employee Work Ethics and Organization Performance: Reviewing the Relationship in the Kenyan Insurance Industry. Journal of Human Resource & Leadership, 3(2), 55-80. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-human-resource/article/view/289
Section
Articles