THE EFFECT OF WORK ETHICS ON PRODUCTIVITY LEVEL AND FISCAL SUSTAINABILITY IN KENYA'S PUBLIC SECTOR WAGE BILL MANAGEMENT INSTITUTIONS

Abstract

Work Ethics can be referred to as the behavioural working conducts of employees and their positive moral involvement in doing a good job, through honesty, compassion, and loyalty in the course of economic development. The objective of the study was to determine the effect of work ethics on productivity level and fiscal sustainability as well as assess the contribution to research gaps that have failed to highlight the effects of work ethics on the connection between productivity level and fiscal sustainability in Kenya's public sector wage bill management institutions. The study proposed that the primary causes are related to bad governance; lack of reliable labour market structures and regulations; poor work ethics; and low productivity level. The study was guided by the utilitarianism theories of work ethics. The philosophical foundation adopted by the study was positivism and a cross sectional survey design because the data collected was quantitative and qualitative. The study population was from Kenya's public sector wage bill management institutions. In the determination of sample size, the Krejcie and Morgan table was used. Primary data was collected by the use of structured questionnaires and the choice of drop and pick method was used because the technique is believed to minimise non-coverage error. Data analysis involved the computation of percentages means scores, and frequencies for descriptive statistics and correlation and regression for inferential statistics. The results from the study found that ineffective and poorly designed policies made it difficult for public sector firms to implement the most conducive work ethics resulting in lower productivity, high turnover rates of workers, and loss of funds through corruption and mismanagement, thereby making fiscal sustainability an unachievable goal. The study concluded that service delivery policies are not aligned to productivity and fiscal sustainability, ineffective and poorly designed policies contribute to reduced work ethics, organizational structure, and employee performance, leading to fiscal unsustainability. The study recommended policies be developed that promote productivity whilst upholding fiscal sustainability, leaders be equipped with the right skills to govern public institutions diligently devoid of bias and employees be empowered to contribute to fiscal transformation besides emphasis being made on productivity, communication, customer satisfaction, and employee loyalty.