The link between strategic human resource development and employee performance among commercial banks in Kenya
Knowledge is viewed as the key of realization of a competitive advantage. Since the organizational knowledge is largely located in the human mind, as carriers of knowledge and activities, human resources are becoming the key factor of business success. The purpose of this study was to establish the relationship between strategic human resource development and employee performance in the commercial banks in Kenya. The study reviewed the available literature with regard to need for strategic human resource development, link between strategic human resource development and performance, strategic human resource development and productivity, employee motivation, competitive advantage and customer relations. This study used descriptive census survey on all the 43 commercial banks in Nairobi. The primary data was collected through a structured questionnaire administered on a drop and pick basis. Data collected quantitative in nature and was analyzed using descriptive statistics. The study targeted a sample of 43 respondents based on their functional categories from which only 34 filled in and returned the questionnaires making a response rate of 79%. This infers that employee motivation as a result of strategic human resource development contributes more to the employee performance in the banks followed by customer relations. Majority of the respondents agreed that their organisations train and develop employees on their present qualifications and job knowledge, while a small proportion of the respondents disagreed. Majority of the respondents said that the response of employees regarding the training programs prepared by toe organization was positive. Based on the findings, the study concludes that there is a positive relationship between strategic human resource development and employee performance among commercial banks in Kenya. The study further concludes that the employees receive timely information on training opportunities and they participate in staff performance appraisal. The study finally concludes that the strategic human resource development practices affect employee performance in commercial banks in Kenya were cost-benefit analysis of training programs. The study recommends that the commercial bank managers should ensure that there are training needs analysis in order to establish the needs of the employees.