Learning Organisation and Employee Performance of Equity Bank in Kiambu County, Kenya
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Date
2020
Authors
Wanyeki, Moses Njuguna
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Competition in the banking sector has been increasing globally, hence, implementation of
learning organization becomes a key focus in any organization. Research indicates that
employees play a major role in the banking sectors and they are the determinants of customer
retention. Hence employee performance is a key issue that most banking sectors look upon.
Studies have indicated that most banks perform poorly in terms of ensuring that the
performance of their employees is high hence facing high employee turnover rates. Kiambu
County, Equity banks is among the many commercial banks present and also the mostly used
at Kiambu County and outside residents due to its diversity. However, Equity Bank at Kiambu
have experienced long term challenge pertaining employees. The persistent problem
necessitated the research to analyze the effect of learning organization on employee
performance in Kiambu County, Kenya. The research was directed by five objectives namely;
to investigate the effect of learning culture, shared vision, personal mastery, strategic
leadership, and innovation on the employee performance in Kiambu County, Kenya. The
research underpinned on four theories, that is, transformative learning theory, social cultural
learning theory, Goal theory, and Watkins and Marsicks theory. Transformative learning
theory was the main domain theory, which helped the researcher to understand the interrelation
among study variables such as learning culture, shared vision, personal mastery, strategic
leadership, and innovation. The study employed descriptive research design. Stratified and
simple random sampling techniques was used in the selection of the study respondents in the
three categories; branch manager, human personnel and bank clerks. A sample size of 70
respondents was drawn from a target population of 12 Equity banks found in Kiambu County.
Semi-structured questionnaires were presented to the participants in order to collect primary
data and later analyzed using SPSS for inferential and descriptive statistics. Regression and
correlation analyses were run to determine and explain the degree of relationship between the
predictor and dependent variables. But before regression analysis, diagnostic test which
includes normality test and multicollinearity were run. Additionally, qualitative data was
analyzed using content analysis. Descriptive results indicated that Equity banks in Kiambu
County did not fully embrace learning culture, shared vision, personal mastery, strategic
leadership, and fostered innovation. The correlation analysis showed that all the independent
variables and the dependent variable had a positive and significant that is learning culture (r=0.
407, p= 0.000), shared vision (r= 0. 260, p=0.030), personal mastery (r = 0.511, p= 0.000),
strategic leadership (r =0.408, p=0.000, and innovation (r = 0.301, p= 0.011). Regression
analysis revealed that learning culture had a significantly positive effect on the employee
performance (β=0.092, p=0.049). Shared vision had have positive and significant on the
employee performance (β=0.327, p=0.008). Personal mastery indicated a significant positive
influence on the employee performance (β=0.567, p=0.001). Strategic leadership had a positive
and significant influence on employee performance (β=0.246, p=0.028) while innovation had
a positively significant impact on the employee performance at the Equity banks in Kiambu
County (β=0.127, p=0.033). This study recommends that Equity banks in Kiambu County
should continue to encourage learning culture, shared vision, personal mastery, strategic
leadership, and fostered innovation to achieve employee performance.
Description
A Research Project Submitted to the School of Business in
Partial Fulfilment of the Requirements for the Award of a
Master in Business Administration Degree (Human Resource
Management) of Kenyatta University
Keywords
Employee Performance, Equity Bank, Kiambu County, Kenya, Banking sector, Learning culture, Shared vision, Personal mastery, Strategic leadership, Innovation