IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

No images

UserInfo


54.80.81.223
United States United States
Your Time

User Statistics Info
IJSSE is one of the leading International Journals by User Statistics!

Login Form



IJSSE Newsletter Form
Full Names *
E-mail Address: *
Country *
PDF Print E-mail

ROLE OF ORGANIZATIONAL DESIGN ON THE PERFORMANCE OF COMMERCIAL BANKS: A CASE OF NATIONAL BANK OF KENYA


Frank Abner Michieka

Jomo Kenyatta University of Agriculture and Technology, Kenya

Ogollah Kennedy (PhD)

Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

Organization Design is concerned with the relationships and interconnectivity between people, work, formal structures, informal practices, and cultural behaviors, both internally and externally, it is about the way in which an organization manages and coordinates its human, administrative and operational resources to benefit from unique capabilities over the long-term. The business of banking and financial institutions in Kenya has been, and is still, going through a period of rapid and profound change, of which the development of new organization design is extremely important. Statistics from Central Banks of Kenya (CBK) show that the Banking sector has recorded a decline in performance in some banks as from 2011 with National Bank of Kenya announcing a profit decline of 17 percent in first-half posting a profit of 911.8 million shillings from the 1.1 billion shillings posted in year 2011. Studies by Kenya Bankers Association show that there is stiff competition faced by NBK from other banks like Equity and Standard Chartered Banks and it is anticipated that the Organization Design efforts will herald the performance of NBK. The study will be guided by the following objectives; to determine the effect of organization structure in the performance of commercial banks in Kenya, to determine effect of organizational resources in the performance of commercial banks in Kenya, to establish the effect of technology on the performance of commercial banks in Kenya and to determine the effect of strategic human resource management practices on the performance of commercial banks in Kenya. A sample of 20% was selected from within each stratum of the low level, middle level and top level management in proportions that each stratum bears to the study population. This study collected both primary and secondary data. The study used a survey questionnaire. The study selected a pilot group of 10 individuals from the target population at National Bank of Kenya to test the reliability of the research instrument. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 21) and presented through percentages, means, standard deviations and frequencies. The findings strongly agreed that the organization structure must be aligned to put the strategy in effect. The study concludes that organization structure involves how programs and tasks are coordinated and the tools or mechanisms used to coordinate. The study recommends that an organization structure (OS) must be aligned to put the strategy into effect.


Full Text PDF Format

 
Banner
Publication Disclaimer: The accountability of the article published in IJSSE journals is entirely of the author(s) concerned and not of the publisher/editor. The view expressed in the articles of any IJSSE journal is those of the contributors, and it does not essentially correspond to the views of the publisher/editor. It is responsibility of the authors to seek copyright clearance for any part of the content of the articles. The publisher/editor of IJSSE journals is not liable for errors or any consequences arising from the exercise of information contained in it.
Free counters!
IJSSE - International Journal of Social Sciences and Entrepreneurship | Copyright 2013 | All Rights Reserved  <