Moderating Effects Of Flexible Working Arrangements on Stress Management And Employee Performance: A Case Study Of Kenya Electricity Generating Company

Abstract

Kenya Electricity Generating Company, Kenya’s largest electricity producer, operates in a high-pressure environment with demanding roles, shift work, and hazardous conditions. Organizations increasingly implement stress management strategies to boost employee efficiency and satisfaction. However, workplace factors such as FWAs can influence these strategies’ effectiveness. Studies indicate that FWAs reduce absenteeism, improve retention, and boost motivation. This study investigates how FWAs moderate the relationship between stress management and employee performance at KenGen. Guided by social exchange theory, the research adopted a positivist approach and explanatory design, targeting 2,487 employees across various branches. Using proportional stratified random sampling, 331 respondents were selected based on Krejcie and Morgan’s table and Neyman’s formula. Data collected through questionnaires was analyzed using descriptive and inferential statistics. Results revealed a positive and significant correlation between FWAs and employee performance (r=.531, p<0.01), as well as stress management and performance (r=.671, p<0.01). Stress management significantly impacted performance (ß=0.314, t=5.897, p<0.05), but FWAs did not (ß=0.031, t=0.610, p>0.05). Notably, FWAs negatively moderated the stress management-performance relationship (ß=-0.150, p<0.05), indicating that flexibility may weaken the benefits of stress management strategies. Thus, organizations like KenGen should carefully implement FWAs to avoid undermining stress management initiatives, ensuring clear guidelines, communication, and technological support.