Change Practices and Organizational Performance of Nairobi Metropolitan Family Bank Branches in Kenya

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Njugi-Muriuki, Loise Wangui
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Kenyatta University
The performance of the banking sector in Kenya has come under close scrutiny owing to the mixed fortunes in terms of organizational performance that has been witnessed in the industry lately. The political instability in the run to the 2017 general elections, and proliferation of micro finance institutions and the regulatory reforms in regard to capping of interest rates significantly led into dipping of profits of many Kenyan financial institutions. The main duties of focus in this research was to establish the change practices and organizational performance of Nairobi metropolitan family bank branches in Kenya. The specific objectives of the study were; to establish the effect of communication effectiveness on organizational performance, to determine the employee participation effects on organizational performance, to evaluate the staff training impact on organizational performance in Family Bank Limited and to examine the influence of leadership effectiveness on organizational performance in Family bank Limited. This study was anchored on the theories such as Profit Maximization Theory, Mintzberg and Quinn’s Theory of Change and Resource Based Theory. This research relied on descriptive survey as the guiding research design. The target included employees drawn from ten branches of family bank in Nairobi County and its outskirts. The researcher used survey sampling on 250 managers and officers involved in the organizational strategic decisions. This research utilized both secondary as well primary data. The structured questionnaires were the main source of primary data used. Data was validated, sorted, edited and coded and then analyzed by use of Statistical package for Social Sciences (SPSS) software. The descriptive statistics including percentages as well as means were utilized in summarizing data. Additionally, data presentation was done using tables. Inferential analysis specifically regression analysis was utilized in studying the effect of organizational change practices on organizational performance. Based on the correlation coefficient, the study discovered that a strong positive relationship exists between the study variables. This research further revealed that Communication effectiveness, Employee participation, Effect of staff training and leadership effectiveness significantly affected the organizational performance of Family bank Limited. Based in the research’s findings and discoveries the researcher recommends and proposes that Family bank puts up proper communication structures and networks. The bank should have an open communication policy among the employees. They should adopt a culture and mechanisms where feedback is freely shared within the organization. This could be done by adopting the currently available communication tools, modes and technology in the market geared to support efficient and effective communication within organizations. This would be a beneficial strategy in the improvement of the performance of the bank.
Research Project Report Submitted for Degree of Master of Business Administration (Strategic Management) Option in the School of Business of Kenyatta University,October 2022
Change Practices and Organizational Performance, Nairobi Metropolitan Family Bank Branches, Kenya