EFFECTS OF PERFORMANCE MANAGEMENT ON ORGANIZATION EFFECTIVENESS: CASE OF KENYA COMMERCIAL BANK HEADQUARTERS, NAIROBI, KENYA
Abstract
Organizations are operating in an environment that is continuously evolving due to factors of change such as globalization, technology and demographics. Human resource development (HRD) interventions are one way of ensuring the organization keeps up with those changes and remains competitive. Human resource development interventions are measures of continuously enhancing the abilities and performance of the employee using the available means. This study sought to provide more empirical evidence on the effect of human resource development interventions practices on organizational effectiveness at Kenya Commercial Bank, Headquarters.The objective was to: examine the effect of performance management on organizational performance. The study adopted descriptive research design. It targeted a population of 250 employees of Kenya Commercial Bank headquarters, Nairobi. A sample size of 153 was used for the study being determined by using Slovian’s formula. Data was collected using a self-administered questionnaire given to the banks staff. A pilot study at Equity Bank headquarters Nairobi, was also used to identify challenges in the research instrument. Data was analysed through descriptive statistics and results presented in tables as percentages. The study established that the PMS contributed to improve the company’s productivity (54.7%). The study concluded that performance management as an HRD intervention practices significantly affects organizational effectiveness. Recommendations of the study were that: Organizations need to practice human resource development interventions that can work within their institutions by looking inward to identify the resources available and explore them; Organizations should always Conduct a Needs analysis before employing any HRD Intervention for it to be effective; a cross sectional survey would suffice to understand the effect of HRD on the Banking sector in Kenya.
Key Words: Performance Management, Organization Effectiveness
CITATION: Chebeni, M. (2020). Effects of performance management on organization effectiveness: case of Kenya Commercial Bank headquarters, Nairobi, Kenya. The Strategic Journal of Business & Change Management, 7(3), 531 – 540.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1690
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