MCOM Theses and Dissertations (2019)

Permanent URI for this collection

http://hdl.handle.net/11071/6570

Browse

Recent Submissions

Now showing 1 - 5 of 41
  • Thumbnail Image
    Item
    Effects of structural change on employee commitment in the Kenyan Banking industry: a case of mergers and acquisitions
    (Strathmore University, 2019) Njeri, Kigera Susan
    Almost all organizations irrespective of their size or business type undergo some form of change. To muddle through emerging technologies, demographic and competitive forces, sector leaders must continue to find new techniques to help their firms attune to these circumstances and change their way of doing business. As a result of operating environment changes, several licensed institutions particularly commercial banks have had to change their structures. Since the year 1989, the Kenyan banking sector has experienced a wave of mergers and acquisitions that affect different aspects of the business such as employees, finances, and technology. Most bank employees view mergers and acquisitions as a threat to their jobs as shareholders often demand a reduction in the number of staff employed and this may affect their commitment. Several studies focus on structural changes but few explicitly seek to close the knowledge gap between organizational structural changes and employee commitment in the Kenyan Banking Sector for banks that have undergone mergers and acquisitions. This research, therefore, sought to address this knowledge gap by examining the effects of structural organizational change on employee commitment in the Kenyan banking sector in the context of Mergers and Acquisitions. The research was based on Systems theory which argues that a business is composed of organizations as systems of multiple internal relationships, as well as participants of the encompassing environments in which they operate. A change in one part of the system, for example, the organizational structure, affects another part of the system in this case employee commitment. The research used a descriptive research design. The population of the study is 913 employees from the 12 financial institutions that merged or underwent acquisition between 2008 and 2017. The sample size determined was 269 respondents from all 12 banks. Data was collected using a structured questionnaire and analyzed using different tools including regression analysis. The findings of the research revealed that structural changes specifically roles and responsibilities, reporting lines, and hierarchy levels have a significant impact on employee commitment. This research, therefore, recommends that banks should prioritize and concentrate on factors that boost employee commitment levels to remain competitive in the Kenyan banking industry. The research also showed that structural changes if not adequately comprehended can lead to a loss of morale and increased job dissatisfaction. This in turn leads to some employees looking for an exit strategy. It is therefore imperative that organizations put in place measures that address employees' concerns before, during, and after restructuring to facilitate minimum comfort and commitment.
  • Thumbnail Image
    Item
    The Influence of service quality on customer satisfaction-a case of the Kenyan Standard Gauge Railway
    (Strathmore University, 2019) Omar, Mwinyi Khatib
    The key to sustainable competitive advantage in the public transport industry amidst today's world of dynamic changes in the business environment and intense competition depends on delivering high-quality services, which will in turn yield customer satisfaction, customer retention, and business sustainability. Service quality has become a major area of interest in the service industry as customers' needs evolve and become almost insatiable. Service quality is a function of customer satisfaction and a critical issue in the competitive market to determine the sustainability of an organization. A firm’s interest to measure and meet customers' requirements is key to influencing brand loyalty in tum generating more business for the company. The purpose of this study was to assess the influence of service quality on customer satisfaction by looking at the case of the Standard Gauge Railway in Kenya. The study examined which dimensions had a positive influence on service quality and which dimensions had the most and least impact on service quality as perceived by train passengers. To achieve this purpose, data were collected from 395 passengers using the services of the train using a structured questionnaire. The service Quality (SERQUAL) model was adopted as a measure of service quality. The findings revealed that all the service quality dimensions (IVs) were found to be positively correlated to customer satisfaction (DV). The Spearman correlation analysis showed a moderate relationship between service quality and - customer satisfaction. The most valued service quality dimension was reliability with responsiveness considered as the least important. The study was only limited to the passenger stream of the standard gauge railway and could also be replicated on the cargo side as well to determine the level of satisfaction.
  • Thumbnail Image
    Item
    Determinants of interest rate spreads among licensed commercial banks in Kenya
    (Strathmore University, 2019) Koech, Emmanuel
    High interest rate spreads remain a barrier to financial intermediation because it disheartens probable investors with little profits on deposits and raises funding expenses for debtors consequently decreasing savings and development chances. Thus, it is imperative to ascertain factors that affect interest rate spreads that in essence to solve the barriers to financial intermediation. The broad research objective was to establish factors that influence interest rate spreads. Specific objectives included to determine effect of interest capping legislation, asset quality, management quality, bank size, and leverage on interest tariff spreads of commercial banks in Kenya. An exploratory, ex post facto and causal research design was adopted because it established the cause and effect relationship. The target population was the 42 licensed commercial banks in Kenya as at 30th June 2016. However, eight banks were expunged from the analysis because they became licensed before the study period, ceased operations in the study period, or were sharia compliant banks that did not charge interest. The study period comprised five quarters before interest capping law was enacted and five quarters after. The study utilized secondary panel data. The researcher employed multiple linear regression to analyze data collected during the study, Statistical Package for Social Sciences (SPSS) was used in analyzing data. Research variables were analyzed using fixed effects panel regression model. The univariate general linear model was utilized with the banks being the limiting factor. The study concluded that the factors chosen in the study have substantial effect in unison on interest tariff spread. However, only the interest rate capping legislation had a noteworthy effect on interest rate spread in isolation. This implies that since the enactment of bill capping interest rates, the interest rate spreads have been declining. Thus, the law had a significant influence on interest rate spreads since its enactment. Research findings were proposed to government agencies to evaluate influence of interest tariff capping law on interest rate spreads since its enactment and to also consider the effect on it by the various factors when formulating policies and legislative frameworks. Commercial banks’ management, consultants, and scholars can also utilize research findings to document influence of the various factors on interest tariff spreads.
  • Thumbnail Image
    Item
    The Influence of human resource management practices on employee retention in public universities in Kenya
    (Strathmore University, 2019) Kabaru, Maria Wamaitha
    The purpose of this study was to analyze the influence of human resource management practices on employee retention in public universities in Kenya. The specific objectives included: to establish the level of employee retention in public universities in Kenya, to investigate the influence of training and development on employee retention in public universities in Kenya, to analyze the influence of compensation on employee retention in public universities in Kenya and to examine the influence of recruitment and selection on employee retention in public universities in Kenya. Data was collected by use of questionnaires from the target population of 31 registered public universities in Kenya. Descriptive statistics, correlation analysis and multiple correlation analysis were used to analyze the data. Results showed that recruitment and selection was the most widely adopted human resource management practice, followed by compensation and reward then training and development as evidenced by their overall mean scores. On the influence of each human resource management practice on employee retention, training and development was the only independent variable found to be significant to employee retention in public universities in Kenya. The study however had limitations, in that it was only limited to three human resource management practices. The results therefore are not generalizable to all the other human resource management practices. Further research should therefore be done in order to find out what influence other human resource management practices have on employee retention in public universities in Kenya and in other areas of the world.
  • Thumbnail Image
    Item
    The Effect of capital structure and agency costs on the firm value of non-financial companies listed on the Nairobi's Securities Exchange
    (Strathmore University, 2019) Kisilu, Gloria Mwende
    The value of a firm is an important indication of the financial performance of any company, more so to current and potential investors. Firm value is affected by various factors, this study singles out three factors as the independent variables; leverage, cost of capital and agency costs, as to what extent these factors affect firm value. The study population was of 46 non-financial listed companies in Kenya; only 22 companies are on focus in the study as they met the criteria of a balanced panel data approach. A sectoral approach is taken in the study, as the 22 companies are analyzed in their various sector category for a 5-year period (20 13-20 17). The regression results showed that all the independent variables, including the moderating variable of size were highly significant to firm value with a p value of 0.00 each. Leverage and cost of capital resulted in positive significance while agency cost and size resulted in negative significance. The results derived from the answered questionnaires were consistent with the regression results. The study measured firm value using Tobin's Q ratio, the overall mean aggregate of all the companies being 1.12 and indication that investing in non-financial companies in the NSE is a good investment prospect. The aggregate value of each company in the eight sectors is given. The firm value was computed based on information derived from the company's statements and to act as a guide but should not be used in isolation when making investment decisions.