Corporate governance practices on employee performance: the case of St. Peter’s Secondary School, Naalya

Abstract

The study established the role of corporate governance practices on employee performance: the case of St. Peter’s SSS Naalya (SPENA) The following specific objectives guided the study’s direction; to establish the corporate governance practices employed in SPENA; to examine the effectiveness of corporate governance practices on employee performance, and to propose strategies for strengthening the corporate governance practices to improve employee performance at SPENA. The study used a case study design with quantitative and qualitative approach. Data collection was obtained using structured questionnaires and interviews. Quantitative data was analyzed with SPSS version 20 and qualitative data was analyzed with Nvivo content analysis. The study found that the school was implementing several corporate governance practices; accountability, meaningful communication, fairness, transparency, leadership styles, and performance management. The practices have had a strong and significant correlation (r=657**) with employee performance in terms of improved productivity, employee commitment, responsibility sharing and timely task completion amidst of challenges like excessive powers to managers, ineffective board composition, unclear terms of reference which overwhelmed the implementation of the practices. Suggested mechanisms were sharing the school’s vision and strategic plan, setting clear performance standards, ensuring board diversity, strengthening internal control systems, adhering to employee ethical codes, meritocracy hiring of employees and board integrity. The study’s findings support the notion that good corporate governance principles are essential for raising employee productivity in a private secondary school environment. For this reason, the investigation advises private secondary schools to adopt and embrace effective corporate governance practices such as allowing teachers’ representatives to report to board of directors administratively and functionally to head teacher, non-executive board committee members for oversight role to support employee performance.