Human Resource Policies Implementation and Employee Performance in Development Banking Institution in Kampala, Uganda

ABSTRACT The study investigated the extent of implementation of human resource policies and its effect on employee performance in the East African Development Bank. The study used a cross-sectional survey design. Primary data was collected via questionnaire and interview guide. Secondary data was collected through review of related literature. Validity of the instrument was tested using coefficient validity index that yielded validity index of 0.8. A sample size of 146 respondent’s staff was used. The study found that the existing human resource policies at EADB were implemented inadequately causing low morale of employees. Advertisement, the most used method of sourcing applicants was done only in the national print media. Other out-sourcing methods such as headhunters and universities were not used. There was no pre-screening in the selection process. Short-listing of applicants was done manually, which leads to bias and unfairness, The selection method also emphasized oral interviews over other methods. Orientation was given late and only for a short period. There were disparities in salary scales. Other incentives were not paid. Nonmonetary rewards such as recognition, acknowledgements were not implemented adequately. Promotion was rarely effected leading to stagnation on job. Training was not given to all staff and trainers do not undertake knowledge and skill analysis before conducting training. The study further found significant correlation between human resource policy and employee performance (R = 0.79~5~ p = 0.05). These findings disapprove the null hypothesis but support the alternative hypothesis which states that human resource policy has a significant effect on employee performance. The study therefore, recommends review and streamlining of the implementation of human resource policies at the EADB to ensure that the right competencies are attracted to the organization, rewarded appropriately and well trained to motivate them to perform effectively to achieve the development objectives of the Bank.

TABLE OF CONTENTS

Chapter Page

One THE PROBLEM AND ITS SCOPE 1

Background of the study 1

Statement of the Problem 3

The Objective of the study 4

Research Objectives 4

Research Questions 4

Hypothesis 5

Scope 5

Significance of the Study 6

Operational definitions of Key Terms 7

Two REVIEW OF RELATED LITERATURE 9

Concepts, Ideas, Opinions From Authors/Experts 9

Theoretical Perspectives 19

Related Studies 21

Three METHODOLOGY 24

Research Design 24

Research Population 24

Sample Size 24

Sampling Procedure 24

vii

Research Instrument 25

Validity and Reliability of the Instrument 25

Data Gathering Procedures 26

Data Analysis and interpretation 27

Ethical Considerations 27

Limitations of the Study 28

Four PRESENTATION, ANALYSIS AND INTEPRETATION DATA 30

Profile of the Respondents 31

Extent of Human Resource Policies Implementation 33

The Level of Employee Performance 35

Correlation of Human Resource Policies Implementation 37

Regression Analysis 38

Five FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 39

Findings 39

Conclusions 41

Recommendations 42

Suggestion for further research 43

References 44

Appendices

Appendix I - Research Instrument 48

Appendix II - Data Presentation Tables 54

Appendix III - Raw data 56

Appendix III - Letter of introduction from KIU 67

Appendix V - Letter of Consent EADB 68