A survey of performance measurement systems used in commercial banks operating in Kenya.
Abstract
This study aimed at identifying the performance measurement systems used by commercial bank
operating in Kenya. The study sought to identify the performance measurement systems and the
factors influencing the choice of a particular system. The systems are both modern and
traditional. .
The study instrument was the questionnaire; the questionnaire was distributed to 38 of the 43
commercial banks operating in Kenya out of which 36 were returned. Several approaches were
then used to analyze the data after coding them; these included a regression function and
descriptive analysis. From the results, identification of the various traditional and modern
measurement systems that are used by commercial banks operating in Kenya was made.
The findings from descriptive and discriminant statistical analysis established the various performance measurement systems used by commercial banks operating in Kenya and the factors
influencing the choice of such systems. Findings suggest that, banks are still using the traditional
performance measurement systems like profitability, liquidity and ratio analysis in their day- to
day operations. Some banks have also complemented the traditional systems with the modern
performance measurement systems such as the balanced scorecard which is frequently used in
operations. The factors influencing the choice of such systems depended on the company culture,
management belief, company size among others.
Citation
Masters Of Business Administration (MBA) Degree, University of NairobiPublisher
University of Nairobi School of Business
Description
Masters of Business Administration (MBA)