The banking industry in Kenya: Restructuring and its effect on job satisfaction among employees (A case study of Equity Bank)
Olung'o, Kennedy O
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Banking sector plays a significant role in the growth of economies all over the world. The objective of this study was to determine the effect of restructuring on job satisfaction in the banking industry in Kenya. The study is a case based and utilizes primary data collected from the bank's staff. The study targeted all the bank staff in Nairobi. The primary data was collected using a structured questionnaire that was administered to the target respondent. The data was analyzed using statistical package for social scientist with the help of descriptive statistics. The study revealed lack of capital, regulatory policies, cultural factors, socio-economic as some of the challenges encountered by the bank in pursuit of the restructuring strategy. The challenges posed high labour cost, slow business growth and delay in the implementation of restructuring. Most male below 30 years of age and well educated responded to the questionnaires compared to female, who had been involved in the restructuring in their course of employement. Top level Managers were found to be strongly ofthe view that organizational change and restructuring had severely undermined the skills base of the organization with experienced workers tending to have been replaced by temporary or contract staff, they felt that restructuring has radically reduced managers' sense of loyalty, motivation, morale and job security. Middle level managers experienced increased performance pressures and heavier workloads as well as an increase in working hours as a result of restructuring. Lower cadre staff perceives work to be much less secure, their loyalty, morale and motivation have been reduced and that they perceive that the skills and experience bases of Banks have been depleted as more flexible contract and temporary workers occupy a greater share of jobs in these departments.Government restrictions and regulatory policy, Lack of capital, competition, and New technology were found as factors that influence the restructuring process. Most of the top level management agreed that the restructuring is implemented by top level managers only. In contrast, 18 % said restructuring is implemented by middle level managers' staff and only 10 % said it's implemented by lower level staff only, thus the research revealed that the restructuring process is more implemented by the top management. The findings showed less commitment and despite having a strong sense of belonging to the organization, they don't feel part of the family of banking sector. Generally there is dissatisfaction by the employees, they have no confidence in the decision made by immediate manager/supervisor and management, and they have no drive and motivation to perform tasks effectively. The employees are not sufficiently informed about the bank's performance and future plans; there is inadequate communication within their departments. The staff showed dissatisfaction in the management; they don't lead with strong focus on the bank's core values, mission and vision. There is poor supervision after restructuring as the managers don't live the organizations values. Restructuring was found to have a negative impact on motivation. Bankruptcy laws, labour and employment issues, existence of regulatory tendencies by government central bank, and general risk were found to be some of the challenges of restructuring.