The Role of Target Setting in Influencing Employee Productivity in Commercial Banks in Meru County, Kenya

Abstract

Problem statement: The commercial banks in Kenya have been experiencing reduction in employee productivity, which has resulted to collapse and placement under receivership of some of the banks. At the same time, the banking industry has been facing challenges with performance appraisal system, particularly, target setting. Purpose of the study: This study, therefore, sought to examine the role of target setting in influencing employee productivity in commercial banks in Meru County, Kenya. Study Methodology: It adopted a descriptive survey research design. Primary data was collected through self-administered questionnaires. Descriptive and inferential statistics were used in the analysis. Results of the study: According to correlation results, target setting was positively and significantly correlated to the employee productivity. Regression results indicated that a positive and significant influence exists between the two variables; hence, target setting had a positive and significant connection with employee productivity in commercial banks in Meru County. Conclusion: The study concluded that the level of target setting in a commercial bank could be used to predict employee productivity. Target setting enhances staff efficacy, motivation, and eventually expand organization efficiency. It also enables staff to be engaged in a constructive acuity about performance appraisal process. Recommendations: Commercial banks ought to ensure the employees are engaged through being involved in target setting in order to improve their productivity.