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Influence of Employee Involvement on the Performance of Commercial Banks in Kenya

Author

Listed:
  • Janet Chepngetich Sitonik

    (School of Business and Economics, Kenya Methodist University)

  • Jane Munga

    (School of Business and Economics, Kenya Methodist University)

  • James Mbebe

    (School of Business and Economics, Kenya Methodist University)

Abstract

Employee involvement is important for driving performance, as engaged employees are more likely to contribute positively to organizational goals, leading to enhanced productivity and innovation. High performance is essential for maintaining competitiveness, achieving financial stability, and ensuring long-term success. However, Commercial Banks in Kenya face a pressing need to improve performance, as existing gaps in employee involvement could be hindering the organization’s potential and leading to missed opportunities. This paper sought to determine the influence of employee involvement on the performance of Commercial Banks in Kenya. The study applied a descriptive research design on 38 Commercial Banks in Kenya as the unit of analysis in the study. The target respondents were 190 middle-level managers of commercial banks in Kenya as the unit of observation. Stratified random sampling technique was applied in addition to Taro Yamane’s formula to sample 129 participants in the study. The study gathered data through questionnaires which were administered both physically and online. Data collected was analyzed through both descriptive and inferential analyses. Results revealed a β of 0.435 and a p-value of 0.001, between employee involvement and performance of commercial banks in Kenya. The study concluded that employee involvement had a positive and significant influence on the performance of commercial banks in Kenya. The study recommends that Commercial Banks in Kenya should empower employees by expanding decision-making structures to encourage ownership and active participation. The study also recommends regularly updating training programs to align with employees’ evolving needs. Additionally, the study recommends strengthening communication channels to keep employees informed about organizational changes. The study further recommends implementing a structured and frequent recognition program to boost employee morale. Moreover, the study recommends expanding leadership development opportunities through mentorship and workshops. Lastly, the study recommends increasing the frequency of team-building activities to foster stronger relationships and a collaborative culture.

Suggested Citation

  • Janet Chepngetich Sitonik & Jane Munga & James Mbebe, 2024. "Influence of Employee Involvement on the Performance of Commercial Banks in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 3375-3383, August.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:8:p:3375-3383
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    References listed on IDEAS

    as
    1. Mohsen, Ahsanullah & Sharif, Omer, 2020. "Employee participation in decision making and its effect on job satisfaction," MPRA Paper 102471, University Library of Munich, Germany, revised Jul 2020.
    2. Kasim Ahmed & Giovanni Calice, 2023. "The effects of supervisory stress testing on bank lending: examining large UK banks," Journal of Banking Regulation, Palgrave Macmillan, vol. 24(2), pages 228-247, June.
    3. David J. Deming, 2022. "Four Facts about Human Capital," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 75-102, Summer.
    4. Dong, Jichang & Yin, Lijun & Liu, Xiaoting & Hu, Meiting & Li, Xiuting & Liu, Lei, 2020. "Impact of internet finance on the performance of commercial banks in China," International Review of Financial Analysis, Elsevier, vol. 72(C).
    5. Gary S. Becker, 1994. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition," NBER Books, National Bureau of Economic Research, Inc, number beck94-1, July.
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