Influence of Employee Involvement on the Performance of Commercial Banks in Kenya

Abstract

Employee involvement is important for driving performance, as engaged employees are more likely to contribute positively to organizational goals, leading to enhanced productivity and innovation. High performance is essential for maintaining competitiveness, achieving financial stability, and ensuring long-term success. However, Commercial Banks in Kenya face a pressing need to improve performance, as existing gaps in employee involvement could be hindering the organization's potential and leading to missed opportunities. This paper sought to determine the influence of employee involvement on the performance of Commercial Banks in Kenya. The study applied a descriptive research design on 38 Commercial Banks in Kenya as the unit of analysis in the study. The target respondents were 190 middle-level managers of commercial banks in Kenya as the unit of observation. Stratified random sampling technique was applied in addition to Taro Yamane’s formula to sample 129 participants in the study. The study gathered data through questionnaires which were administered both physically and online. Data collected was analyzed through both descriptive and inferential analyses. Results revealed a β of 0.435 and a p-value of 0.001, between employee involvementand performance of commercial banks in Kenya. The study concluded that employee involvement had a positive and significant influence on the performance of commercial banks in Kenya. The study recommends that Commercial Banks in Kenya should empower employees by expanding decision-making structures to encourage ownership and active participation. The study also recommends regularly updating training programs to align with employees' evolving needs. Additionally, the study recommends strengthening communication channels to keep employees informed about organizational changes. The study further recommends implementing a structured and frequent recognition program to boost employee morale. Moreover, the study recommends expanding leadership development opportunities through mentorship and workshops. Lastly, the study recommends increasing the frequency of team-building activities to foster stronger relationships and a collaborative culture.