Abstract:
The  purpose  of  the  study  was  to  determine  the  effects  of  extrinsic  motivation  on  employee  performance 
in medium class hotels in Kisumu city, Kenya. The specific objectives of the study were to examine the effects of working conditions, incentives and interpersonal relations on employee performance. The study adopted survey 
research design. The target population was the employees in medium class hotels. Simple random sampling and stratified  sampling  were  used.  Questionnaires  were the  research  instruments  used.  Descriptive  and  inferential statistics  (Pearson  product  moment  and  multiple  regression)  were  used  to  analyze  data.  Results  revealed  that there is no single set of extrinsic motivation that leads to effective performance and, therefore, combinations of 
extrinsic  motivation  are  required  to  ensure  effective  performance.  It  may  also  be  concluded  that  improved extrinsic motivation significantly (P=0.05) improves employee performance at work especially in medium
 class hotels. This implies that managers should increase 
extrinsic motivation to increase employee performance