ABSTRACT
Downsizing strategy has been implemented by many organizations as a way to deal with the
economic pressures from the business environment. Despite the increase in downsizingin
several banks, there is little empirical research on the impact of downsizing on employee
performance. The objective of the research was to investigate the effect of organizational
downsizing on employees’ performance in selected commercial banks in Nyeri County,
Kenya. The specific objectives of the study were to investigate the effect of organizational
commitment on employee performance, to determine the effect of job morale on employee
performance, to assess the effect of job security on employee performance and to determine
the effect of career advancement plans on employee’s performance. The study was guided
by Maslow hierarchy of needs theory, job embeddedness theory and equity theory. The
study used descriptive research design since it determines means and other statistical data of
the population. The study targeted 168 employees from the selected commercial banks in
Nyeri County and since the target population is of manageable size, a census was conducted
to all the respondents. Semi-structured questionnaire were administered to the respondents to
collect primary data. To ease analysis, the Statistical Package of Social Sciences (SPSS)
computer software was applied. Descriptive, correlation and inferential analysis was used to
show relationships amongst the variables. The study found that employees feel part of the
bank family at all times and that they would like to work in the same bank for a longer time.
The study established that employees are satisfied with the salary increments done every
year though some opined that it was not enough compared to their daily inputs. The study
found that employees feel safe in their current positions. The study established that banks
have promotion opportunities available for best performing employees. It was however
established that banks provides regular opportunities for job enrichment to increase
performance. The study found that training needs assessment was carried out continuously
within the organization to enhance performance and that the banks provided opportunity to
do creative and challenging work. The study concluded that employee’s commitment, job
morale, career advancement and job security have a strong positive correlation with the
employee’s performance. The study recommends that banks should provide regular
opportunities for job enrichment to increase performance and training needs assessment
should be carried out continuously within the organization. The study recommends that
downsizing should be done carefully not to affect the commitments of the retained
workforce. The study recommends that the survivors of downsizing need to be managed and
directed to positivity, explaining to them the need for downsizing. The study recommends
that for the purposes of job security, the bank should improve trust between managers and
employees by encouraging frequent and free employee and manager communication at all times.
NJOKI, K (2021). Organizational Downsizing And Employees Performance of selected Commercial banks In Nyeri County, Kenya.. Afribary. Retrieved from https://afribary.com/works/organizational-downsizing-and-employees-performance-of-selected-commercial-banks-in-nyeri-county-kenya
NJOKI, KAGURE "Organizational Downsizing And Employees Performance of selected Commercial banks In Nyeri County, Kenya." Afribary. Afribary, 01 Jun. 2021, https://afribary.com/works/organizational-downsizing-and-employees-performance-of-selected-commercial-banks-in-nyeri-county-kenya. Accessed 08 Oct. 2024.
NJOKI, KAGURE . "Organizational Downsizing And Employees Performance of selected Commercial banks In Nyeri County, Kenya.". Afribary, Afribary, 01 Jun. 2021. Web. 08 Oct. 2024. < https://afribary.com/works/organizational-downsizing-and-employees-performance-of-selected-commercial-banks-in-nyeri-county-kenya >.
NJOKI, KAGURE . "Organizational Downsizing And Employees Performance of selected Commercial banks In Nyeri County, Kenya." Afribary (2021). Accessed October 08, 2024. https://afribary.com/works/organizational-downsizing-and-employees-performance-of-selected-commercial-banks-in-nyeri-county-kenya