Effect of Performance Management Systems on Employees’ Engagement at National Bank of Kenya Limited

Abstract

The topic of the study was to determine the effect of performance management systems on employee engagement at National Bank of Kenya Limited. Performance management system is expected to show a positive relationship on employee’s engagement at their work stations, and assist them display their full potential. It was anchored on the three-component model and the self-determination theory. The components of performance management included Goal setting, Setting targets, Planning, Monitoring, Feedback, Appraisal and Reward. The targeted population were the 1030 employees of National Bank of Kenya Limited, countrywide. The sample population of 120 staff was selected randomly. This research paper source of data was obtained from primary and secondary sources. The collection of data was made possible through the administration of questionnaires which were delivered to respondents and collected, while others were emailed to distant respondents. The questionnaires were distributed countrywide in all branches including the head office of NBK. Statics of descriptive format like standard deviation, mean and frequency was used in the analysis of data. In conclusion drawing inferential statistics was applied. In conclusion of the study it was clear the period of time that the employees of NBK have been engaged in the bank is a confirmation that they are quite informed of the bank’s day to day operations and their feedback on this study was relevant. In the study results it shows there was collection of data from senior most management, middle level supervisors, and the subordinate or other staff within the firm. From the outcome of the analysis of data and the research findings, conclusion can be drawn that members of the organization are very much aware of their employer’s expectations, and the organization has the culture of encouraging information sharing, resources and knowledge. Conclusion can as well be drawn that if people are allowed to conduct their own work-related decisions, regulate their work and goal achievement, may lead to workers being more engaged in their work. In conclusion, it is evident that employee’s engagement has a direct relationship to performance management (r = 0.88, p <0.001). Recommendations from this study indicates that managers have a duty to involve the employees in the process of goal setting. The benefits of this is to make sure that employees have a clear picture of their targets. Additionally, the bank is required to have a consideration on how to encourage and recognize contributions that higher that the expectations. Supervisors need to encourage time to time deliberations about feedback and performance forums to have knowledge of which job aspects have more weight for each staff and which are the most challenging tasks. When such deliberations are ongoing, the supervisors can clarify what going the extra mile is like and come up with ideas for recognizing such efforts by the employees. To enhance increased engagement the management needs to ensure that employees’ achievement in the long run. National bank of Kenya Ltd should as well recognize the experienced employees and their expertise.