An investigation of the effects of business process Reengineering on employee morale in banking sector: A case study of Co-operative bank of Kenya
Kimuru, James Gachoki
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The study focuses on the effects Business Reengineering Process on employee morale in banking sector in Kenya with specific reference to Cooperative Bank of Kenya in Nairobi branches was studied. Business Process Reengineering has since been an organizational change and great challenge in many financial institutions. This is because during organizational redesign or restructuring, BPR process faces a lot of resistance from employees, employee turnover may be experienced and ultimate resulting to demoralized employees. The general objectives of the research were to examine the effect of business process reengineering on employee morale in banking sector. The specific objectives of the study were to establish the effects of organizational leadership, information technology, effective communication, and training and reward systems on employee's morale through BPR in banking sector in Kenya. The study used descriptive research design because it dealt with the aggregate of all responses using descriptive statistics such as mode, percentages, mean and frequency distribution through self administered questionnaires and stratified random sampling procedure selected the sample that represented the entire population. The stratified random sampling was used because the population was heterogeneous and was considered even subgroups. The researcher targeted 1230 employees from the three levels of management of all the Nairobi branches and a sample size of 333 respondents. Questionnaire administration personally and via email was the main method of data collection. Then the results were analyzed by use of both qualitative and quantitative techniques. Results were analyzed qualitatively by data being cleaned, coded and narrative explanation given. Quantitative data analyzed quantitatively by use of tables, charts and interpretive will be derived thereof for easy interpretations. The study found that the five mentioned factors such as, organizational leadership ,information technology, effective communication, training and reward system was the effects of business process re engineering on morale of employees in the banking sector in Kenya. It was concluded that that customer care should be considered when sourcing banks materials, technology adopted can influence the banks to improve sourcing through efficiency and effective means. It was concluded that organizational leadership can affect the morale of employees through during business process re engineering, information technology should be used if successful morale is to be achieved, effective communication in the organization Morales most of the employees when changes are taking place. Training is important for employees morale, reward systems should be considered when having business re engineering for morale. The study recommends that better leadership should be adopted in banking sector, information technology should be incorporated into the business which is having changes, flow of information should be accessible to all employees. it also recommends that training employees makes it easy for them to stay long in the organizational changes because of morale building. Better rewards should be adopted when re engineering is taking place.