Determinants of Organisational Performance by Tier Three Commercial Banks in Kenya
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Date
2013-11Author
Gikunda, Joseph M
Type
ThesisLanguage
enMetadata
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The Banking sector has undergone significant transformation and continues to improve
with new regulations and guidelines seeking to maintain stability. The objective of the
study was to establish determinants of organization performance in Kenya banking sector
with special focus on tier three Commercial Banks. The research adopted a descriptive
survey design on a population of the 43 commercial banks in Kenya. The study utilized
both primary and secondary sources of data. Data analysis was done using the facilities
for descriptive methods on the Statistical Packages for Social Sciences (SPSS). Based on
the findings in relation to specific objective, the study concluded that majority of the
organization perceive that alleged that corporate governance affects organization
performance. Also the study concluded that companies had put in place effective
corporate governance systems that shown to implement solid and integrated performance
approaches more easily than others and that management in their organization are
committed in ensuring the performance of the bank is improved. Likewise, the study
concluded that management most organization consider merit and previous performance
of the individual to be mandated in the management position and that bank shares more
democratic ownership structures, more balanced and broader governance systems, and a
more comprehensive view of organizational goals and performance have also better
chances to increase shareholders’ loyalty. Finally the study found that management is
committed hence influencing bank performance to a great extent. To technologies
advancement, the study concluded that technologies advancement enhancement bank
performance where it eases the process and procedure of banking. On bank size, the study
concluded that most of the banks had 16-30 branches where number of branches that
bank have determines its profitability. Loans from us hence low interest income.
Inclusively, the study established that bank size determines bank profitability to very
great extent. To financial strategies adopted by the banks, the study concluded that
investment management strategy and cash flow management strategy were the main
financial strategies adopted by most of tier three banks in Kenya.
Keywords: Corporate governance, firm size, financial strategy, technology advancement
Citation
Master Of Business Administration, University Of Nairobi , 2013Publisher
University of Nairobi School of Business