Influence of organization factors on employee performance in Tier-1 commercial banks in Kenya

Abstract

The level of employee performance in terms of their input is key to the organization’s outcomes. With the commercial banking industry witnessing an influx of structural changes and reforms, maintaining employee productivity has become a major issue for the management of commercial banks. This study examined the impact of internal organizational factors on employee performance in Kenyan banks. Specifically, the study examined the effect of organization environment, organization structure, management support and organization culture on employee performance. The study was grounded on the Contingency Theory. The research employed a positivist research philosophy with descriptive analysis. The population of this study was 29,081-employees selected across the Tier-1 commercial banks. The sample respondents were 396 respondents drawn from the 11 commercial banks. Questionnaires, together with google forms were the main data collection tools while analysis involved the use of quantitative statistical techniques. The study conducted collinearity tests and normality tests prior to regression analysis. The study established a positive and significant impact of organization environment, organization structure, management support and organization culture, on employee performance. The study concluded that internal organization factors have a significant impact on employee performance. As such the research concluded that effecting changes in the organization environment, organization structure, management support and organization culture will significantly lead to better employee performance. In regard to the organization structure and culture, the study recommends that banks should align their structure to the changing operating environment and ensure awareness of the corporate culture among employees. Further, managers are advised to instil a culture of involving employees in decision-making and extend the rewards and recognition systems which will be instrumental to fostering management support. Lastly, due to changing environment, the study recommends that banks should develop relevant infrastructure to support remote working and improve on the available facilities to employees at the workplace.