Influence of Organizational Culture on Employee Engagement at Kcb Head Office

Abstract

Employees’ engagement is a good indicator of outcomes that a business values, and is thus a good gauge of organizational health in terms of commitment, satisfaction, productivity, innovation and retention. Organizations with a positive culture reward their employees and create an enabling environment where employees develop, grow and operate at their full potential. This study sought to establish the effect of organizational culture on employee engagement. The study was anchored on the structural theory of culture, Schein’s theory of organizational culture and cultural web theory. The study adopted a descriptive research design where the target population was all the 1026 employees of KCB head office in Nairobi. Stratified random sampling was used to arrive at a sample of 20% based on the level of employees ranging from managerial, clerical and operational level. The study relied on primary data which used a structured questionnaire. The questionnaires were administered through a drop and pick later method. Organization culture was based on six main parameters ranging from dominant characteristics, organizational leadership, management of employees, organization glue, strategic emphasis and criteria success. Employee engagement was measured in terms of vigor, dedication and absorption. Both descriptive and inferential statistics were used to analyze quantitative data. In descriptive statistics, the study used frequency, mean, standard deviation and percentages. The analyzed data was then presented in tables and figures. In relation to inferential statistics the study used regression analysis. The study established that there is a strong positive relationship (R= 0.644) between the variables. The study also revealed that 64% of employee engagement at KCB head office could be explained by organizational culture. The study further established that market culture is the most dominant at KCB head office. Hierarchical culture is also dominant though to a small extent. Adhocracy and clan culture exist to a very small extent. This study recommends that management of commercial banks in Kenya should ensure that an entrepreneurial culture is instilled among staff aimed at enabling them stick out their necks to take risks whenever opportunities present themselves. The leadership of commercial banks should also nurture upcoming talents and develop a staff retention strategy aimed at ensuring value of employee abilities. Strategic emphasis should stress on human growth, high confidence, candidness and participation. Management should ensure staff work vigorously, are more dedicated and absorbed in their daily routine. This can only be achieved by using a multifaceted approach. A broad based study covering all commercial banks in Kenya should therefore be carried out in future. A study should also be done on the effect of ICT adoption on the employee engagement as measured by their productivity.