Employee Productivity On Organizational Performance In The Kenyan Banking Sector: A Case Of Kenya Commercial Bank

ABSTRACT

Enhancing employee productivity and subsequent organizational performance is vital in business as a going concern. Kenya commercial bank considers individual productivity a single most driver of organizational performance making it one of the strategic pillars for its growth. The main objective of the study therefore was to establish the influencers of employee productivity and subsequent impact on organizational performance in Kenyan Banking sector with main reference to Kenya Commercial Bank Limited. The study was guided by the following specific objectives; to determine how employee motivation, training and development and organizational climate influence employee productivity and subsequent organizational performance in Kenya Commercial Bank. The study reviewed Hertzberg‘s Two Factor Theory and Need theory as well the empirical literature relevant to the study. Descriptive design was used in the study because it ensures complete description of the situation, making sure that there is minimum bias in the collection of data. The researcher used stratified sampling procedure to select a sample that represented the entire population. The sample size was sixty one (61) respondents comprising of senior management, middle level managers and low level managers of Kenya Commercial Bank branches within Nairobi‘s Central Business District. Questionnaire was used for collecting data containing mainly closed ended questions to the sample respondents thus ensuring that each respondent received the same set of questions in exactly the same way. The data collected was then checked for errors and then analyzed using descriptive statistics with the use of mean and standard deviation with the aid of SPSS and for inferential statistics, regression analysis was conducted so as to show the relationship between the variables. Data collected and analyzed was presented in various formats such as charts, graphs and tables. The findings indicate that the bank has a mechanism that ensures that the employees are happy, also given the right tools and materials, the right compensation, and promotion on merit employees work at their utmost ability. The findings also showed that effective training programs enhances the knowledge, skills an attitude of the employees thus improving their productivity which contributes to superior organizational performance. In addition, the study found that organizational climate ensures less absenteeism, improved participation and work commitment hence high employee productivity. It also influences employees‘ perceptions, feelings, attitudes and views of which affect employee productivity and organizational performance. The study therefore recommends that Kenya Commercial bank and other organization sought to ensure that feedback is done periodically so that the employees may know their expectations or organization goals; there should be rewards for positive results as well as training for negative results in order to empower the employees. It also recommended that comprehensive training and development programs should be provided to employees to equip them with the right skills so as to enhance their productivity and subsequently enhance organizational performance. The study also recommends that the bank provide a good working environment for employees so as to enhance their efficiency and productivity.