Perceived Relationship Between Employee Empowerment and Organizational Performance Among Commercial Banks in Kenya
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Date
2015-11Author
Ndegwa, Tabitha
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The banking industry builds competitive advantages by providing exceptional
customer service. To achieve this, every institution must have an empowered
workforce. Employee empowerment is a strategy and philosophy that enables
employees to make decisions about their jobs and helps employees own their work
and take responsibility for their results as well as serve customers at the level of the
organization where the customer interface exists. It is one of the keys to implementing
profitability improvement and other organizational change and maintaining
continuous improvement. The objective of the study was to establish the perceived
relationship between employee empowerment and organizational performance of
commercial banks in Kenya. The study adopted a descriptive approach. The
population of this study comprised of all licensed commercial banks in Kenya; which
are 43 in total. The primary data was collected by use of a questionnaire which was
used to record respondents’ responses. After data collection, the filled-in and returned
questionnaires was edited for completeness, coded and entries made into Statistical
package for social sciences (SPSS version 20). Descriptive analysis was conducted,
which involved the use of frequencies in their absolute and relative forms. Percentage,
Mean and standard deviations were also be used as measures of central tendencies and
dispersion respectively. The researcher found that employee empowerment positively
and significantly influences organizational performance of commercial banks in
Kenya to a very great extent. The study concludes that employee empowerment
positively and significantly influences organizational performance of commercial
banks in Kenya to a very great extent. Empowered employees equipped with tools,
information, and support, people’s skill base will improve, will increasingly make
informed decisions and overall accomplish more, thereby benefiting the organization
as a whole. The study concludes that employee empowerment improves the
relationship between the employee and the customers to a greater extent and has a
positive impact on organizational performance. The study also concludes that training
enhances work performance and enables employees to meet their set targets to a very
great extent. The study recommends that commercial banks should increase the level
of employee empowerment because contributions by empowered employees are
believed to have a significant impact on business productivity, revenue and the
organization's overall effectiveness.
Publisher
University of Nairobi