An evaluation of high performance working practices on performance in the Kenyan banking sector
Kyambi, Justine Mukuma
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The objective of the study was to evaluate high performance working practices and their contribution to performance in the Kenyan banking sector. The high performance working practices have been determined using a model proposed by Centre for labor Market Studies (Cl.Mx), 2006. The need for this study arose from the fact that employees today are central in achieving organizations' competitive advantage. The linking of human resource management with strategic goals and objectives in order to improve business performance has been the cry of any organization that aims at developing an organizational culture that fosters innovation and flexibility. The study reviewed literature from past studies done on this area from journals, books, Internet and other relevant written materials. The literature covers: Human resource as a competitive advantage; the concept of SHRM; Resource based approach of IIR; High performance working; High performance working practices which include organizational learning, rewarding performance, employee commitment, shared values, trust, communication and information sharing, and work design; and the conceptual framework of high performance working practices. The study was of descriptive nature. The study was conducted in Nairobi area with target population drawn from the ten selected banks in Kenya. The ten banks were selected using convenient sampling. A sample population of one hundred respondents was selected through the method of proportionate stratified simple random sampling. The data was collected from primary source using questionnaires and analyzed using descriptive statistics. The data obtained during the study was organized in terms of the profile of the respondents, extent to which the banking sector has considered high performance working practices to increase performance, other working practices that contribute to performance, and the challenges experienced in the implementation of high performance working practices. A comprehensive summary of the research was given. The study concluded that the sector has scored highly in areas such as, having employees with high qualification, sufficient reward policies, well established communication and information sharing systems, and work which is designed to achieve organizational objectives. The sector has underscored by having majority of the employees as young people with insufficient experience, not fully committed in their work, and without strong organizational values. The study recommended that the Kenyan banking sector should spent considerable resources on socializing employees into the philosophy of high performance working practices. Benchmarking, flat management hierarchy, appropriate rewarding for overtime, full employees' commitment into organizational values, and work design if put into consideration can lead to increased performance in the sector. Lastly suggestions for further research were given.