An investigation of the effects of business process Reengineering on employee morale in banking sector: A case study of Co-operative bank of Kenya
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Date
2013-08-27
Authors
Kimuru, James Gachoki
Journal Title
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Abstract
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.
Description
Department of Business Administration,79p. The HF 5549.5 .M6K5 2013
Keywords
Employee morale --Banks and banking --Kenya, Work motivation --Kenya