Analysis of Strategic Response on Employee Performance Among NSE Listed Commercial Banks

Abstract

Globally, the banking business has seen growing rivalry, necessitating the application of important consistent and skilful decisions to boost the survival rate of numerous institutions. The recent failure of some commercial banks demonstrates that strategic responses for boosting employee performance have yet to be implemented. Employee productivity in Kenya's banking sector has also declined significantly over the years. Employees are also stressed, which leads to decreased productivity, increased absenteeism, low levels of engagement, and low retention rates. The main objective of the study was to determine the influence of strategic response on employee performance among NSE listed Commercial Banks in Kenya. The study was guided by the following specific objectives; to establish the effects of market expansion, cost-cutting strategies and strategic leadership on employee performance among NSE listed Commercial Banks in Kenya. The study also investigated the moderating effect of technology adoption on the relationship between strategic response and employee performance among NSE listed Commercial Banks in Kenya. The study followed a descriptive research design approach focusing on commercial banks based in Nairobi. The target population was all the 10 NSE listed commercial banks and the study data was collected using questionnaires for a period of one month. Due to the population being small, the study used a census sampling approach to cover all 10 commercial banks in Kenya. The study used both primary data. Primary data was collected using semi-structured questionnaires containing both open ended and close ended questions. The content analysis method was used to analyse qualitative data. Quantitative data, on the other hand, was analysed using both descriptive and inferential statistics in SPSS in accordance with the research objectives. Correlation and regression analysis were used in inferential statistics to determine the relationship between the research variables. The findings were presented using tables and figures. From the analysis, it was evident that human resource practices such as recruitment of agencies to help in marketing and selling was mostly adopted. The regression analysis confirmed that strategic leadership and cost-cutting strategies are important factors affecting employee performance in the firms and that market expansion strategies may not have a significant impact on employee performance. The study found that technological strategies may not have a significant moderating effect on the relationship between strategic response and employee performance among NSE listed Commercial Banks in Kenya. The study concluded that there is a positive correlation between strategic response and employees’ performance among NSE-listed Kenyan commercial banks. The study also concludes that strategic leadership and cost-cutting strategies are significant factors affecting employee performance in among the firms. Market expansion strategies and technological strategies may not have a significant impact on employee performance in NSE-listed Kenyan commercial banks. The study further recommended that NSE-listed commercial banks in Kenya should focus on fostering a positive work environment and effective leadership to enhance employee performance. The recommended the NSE listed Kenyan Commercial Banks to continue emphasizing and investing in expansion and cost cutting practices. The study suggested that providing leadership training and support to managers and executives can help them become more strategic in their decision-making. Banks should also carefully evaluate their cost-cutting initiatives to ensure that they do not compromise employee morale, job satisfaction, or overall performance Regular evaluation of technological strategies can help identify areas for improvement and potential opportunities to leverage technology for better employee performance.