PERFORMANCE MANAGEMENT AND EMPLOYEE PRODUCTIVITY AMONG SELECTED BANKS IN KENYA, A CASE OF EQUITY BANK KENYA LTD AND KENYA COMMERCIAL BANK, HEAD OFFICE BRANCHES IN NAIROBI CITY COUNTY

Abstract

This study investigated the role of performance management on productivity of employees within selected banks in Kenya. The study specifically established the influence of performance planning, monitoring and rewarding on productivity of employees within Equity and Kenya Commercial Bank branches in Embu County. The study was anchored on Knowledge-Worker Performance Theory, Balanced Score Card Theory and Performance Management Theory. The study adopted descriptive research design. This study adopted stratified random sampling according to departments. The respondents were drawn from the head office employees and management of Kenya Commercial Bank and Equity bank in Kenya. The target population was the banks’ head office staffs who were 338 in number. Due to easy accessibility of the staff, a census survey was adopted. The study used primary data hence the use of Likert scale questionnaires.  Responses in the questionnaires was tabulated, coded and processed by use of a computer Statistical Package for Social Science (SPSS) programme. Descriptive statistics such as mean and standard deviation was adopted. The relationship between the dependent variable and the independent variables was tested using multiple linear regression model. The study found that performance planning, performance monitoring and performance rewards had a positive significant influence on employee productivity within selected Commercial Banks in Kenya. The study concluded that performance planning helps in matching organization and employee objectives. Employee performance monitoring is the practice of tracking the work of employees including the quality, quantity, and efficiency of work and performance rewards encourage employees to take on additional responsibilities or improve their performance. The study recommended that performance planning should attempt to match the employee’s career goals and aspirations with those of the company or organization. The banks should use employee monitoring tracking software to track the staff's activity on their work computers. The banks should align rewards with performance to show employees how their productivity helps the company. A rewards program can be established to incentivize employees based on how well they meet or exceed these targets.

Key Words: Planning, Monitoring, Rewards Management, Employee Productivity

 CITATION: Ng’endo, H. R., & Bura, H. (2023). Performance management and employee productivity among selected banks in Kenya, A case of equity bank Kenya ltd and Kenya commercial bank, head office branches in Nairobi City County. The Strategic Journal of Business & Change Management, 10 (3), 459 – 471.