EFFECT OF TOP MANAGEMENT SUPPORT ON OPERATIONAL PERFORMANCE OF COMMERCIAL BANKS IN NANDI COUNTY, KENYA

Abstract

This paper looks at the effect of top management commitment and support on operational performance of commercial banks in the County of Nandi, Kenya. Commercial banks’ operational performance is pegged on reliability of services, dependability of services and also speed to which critical operations are performed for improving customer satisfaction. However, over the years the Kenya’s banking industry has consistently been characterized by persistent operational inefficiency and customer problems due to poor services. The study adopted ex-post facto research approach strategy. The target population consisted of 177 commercial bank employees in Nandi County. A simple random sampling technique was used to select a sample of 123 employees. The study used questionnaire as instrument for data collection. The study found out that top management support was a regular QMS practice evidenced in Nandi County commercial banks. Through top-down approach, regular top down communication thrived well and the top management regularly reviewed organizations’ QMS at planned intervals to ensure effectiveness and continuity. Correlation statistics computed showed that there existed significant positive effect (p <0.05) of top management support on commercial banks operational performance. The study recommends that: there is need for creation and sustenance of shared values and fairness for all employees working in the bank without discrimination. JEL: G32, G21, G24 Article visualizations: