Influence of Resource Allocation on Organizational Performance of Commercial Banks in Meru County, Kenya

Abstract

The purpose of the study was to evaluate the influence of resource allocation on the organizational performance of commercial banks in Meru County, Kenya. The study used a descriptive design targeting 19 banks in Meru County, involving 19 managers and 91 staff. Data were collected via questionnaires and interviews, analyzed using SPSS and thematic methods. Most respondents (87%) reported ICT investment improved communication, efficiency, and reduced resource waste. Financial accountability (84%) also reduced waste, but challenges like poor training, politics, and resistance affected risk allocation. A significant correlation (r = 0.379, p < 0.001) was found between resource allocation and performance outcomes. The study recommends that senior management should ensure that there is impartiality in organizational politics to minimize its interference with even resource distribution among the departments. Furthermore, the study suggests that there is a need for employee involvement measures to minimize the resistance level experienced within the banking departments.