Influence Of Human Resource Management On The Performance Of The Commercial Banks Unsecured Loan Project: A Case Of Nairobi Cbd, County, Kenya

Abstract

The commercial banks in Kenya have in the recent past registered varied accounts on the performance of their unsecured loan projects. This comes amid efforts by many organizations to emphasize and utilize human resource management as a tool to improve performances. Banking sector projects remain among those whose competitive edge is being enhanced by its effective utilization of human resources management to enhance performance. The objective of this study was to assess the influence of human resource management on the performance of commercial banks unsecured loan projects in Nairobi CBD, County, Kenya. The study utilized both a descriptive research design using both qualitative and quantitative methods to obtain information the participants. Bank managers, human resource managers, finance managers, customer relationship managers, and marketing managers and bank employees were recruited from 15 commercial banks within Nairobi CBD County. A sample size of 110 participants was obtained using purposive sampling. Study questionnaires were administered alongside personal interviews to obtain the required information. Data was analysed using the SPSS statistical analysis tool to depict the relationship between the variables. Descriptive statistics, correlation and regression analysis, ANOVA and Coefficient of Variations were the statistical tools used to present data for analysis and interpretation. The findings showed that human resource management influence the performance of commercial banks unsecured loan projects. The human resource functions investigated include performance management, knowledge management, forecast and planning and human resource analysis. Forecast and planning was the most significant in influence performance management, followed by performance management and human resource analysis. Knowledge management had positive insignificant correlation with performance of the commercial banks unsecured loan projects and as such may not contribute much to influence the performance of the unsecured loans. The study recommends that the functions of human resource management should be enhanced if performance of the commercial banks unsecured loan project is to be improved. More resources should be channelled to forecast and planning, performance management, human resource analysis as knowledge management may not result in significant performance of the unsecured loan projects.