Aug. 2014. Vol. 4, No.4 ISSN 2307-227X International Journal of Research In Social Sciences © 2013-2014 IJRSS & K.A.J. All rights reserved www.ijsk.org/ijrss 1 RELATIONSHIP BETWEEN DIRECT PARTICIPATION SCHEMES AND ORGANIZATIONAL PERFORMANCE IN GOVERNMENT OWNED AGENCIES IN KENYA SIMON THIAINE KUBAISON, HAZEL G.GACHUNGA, ROMANUS ODHIAMBO Jomo Kenyatta University of Agriculture and Technology,Kenya. kubaison@yahoo.com hazelgac@yahoo.com dvc@aa.jkuat.ac.ke ABSTRACT The purpose of the study was to explore the degree to which direct employee participation practices in the organization contribute to organizational performance. Direct participation schemes in the organization include empowerment of individuals through attitude surveys, suggestion schemes and use of various work teams. In the study, these components formed the independent variables, while organizational performance was the dependent variable. The study was a descriptive survey design and utilized a correlation studies strategy to establish the relationship between independent and dependent variables. Multi stage sampling procedure was used for this selection, which identified a sample of 378 respondents who were expected to participate. The sampling frame was from a list of 178 state corporations that participated in performance contract in 2010/2011, with a population of 86, 878 workers. Questionnaire was the main data collection instrument. A pilot study was carried out in two organizations. In the main study data was collected from a sample of 400 respondents categorized as managerial, supervisory and ordinary workers in state corporations. Usable and valid questionnaires from 348 respondents in 20 select state corporations in Kenya were returned and used for the study. Descriptive and inferential statistics were utilized. Correlation was analyzed using Pearson’s correlation method and with the help of SPSS tool to determine relationships between variables. Hypotheses were tested to establish whether various participation schemes had significant influence on the performance of state corporations in Kenya. Findings indicated a strong relationship between direct participation and performance of state corporations in Kenya. Direct team based participation was the more preferred mode of participation, compared with direct individual-based participation. One limitation of the findings is the use of self-report questionnaires to collect data on all measures. The study recommends enhancement of empowerment programmes as a business strategy aimed at improving performance, and stakeholder attitude; especially management and labor work attitudes. Future studies could investigate the level of planned performance management systems as a business and competitive strategy in the public sector. Ke y words: individualized-participation, team-based participation, state corporation. Introduction Employee participation allows workers to exert some influence over their work and the conditions under which they work (Markey, Hodgkinson & Kowalczky, 2002). Direct participation may take place in self-determination, and goal-setting plans by individuals, while at departmental level employees are formed into quality circles, and work groups. At the organizational level, use of dialogue conference where all employees are invited to offer their input to the planning and realization of the company’s strategy is widely used. Indirect participation involves use of employee’s chosen representatives or shop stewards (Juan et al., 2007). Employee empowerment provides an extension to authority by allowing workers to take decisions that were previously the preserve of their line managers and to assume responsibility for their consequences (Hyman & Cunningham, 1998). The seventeenth report of the public accounts committee on the accounts of state corporations (Republic of Kenya, 2010) noted that several state corporations continued to operate under financial constraints and mismanagement. Public institutions in Kenya are required to develop strategic plans anchored on national planning instruments such as national development plans, Medium term plans and vision 2030 (ROK, 2004). Employee participation has been identified as a strong pillar for