Effect of Organizational Ownership and Culture on Employee Performance Among Selected Banks in Kenya

  • Emmy Langat School Of Business and Economics, Moi University, Eldoret-Kenya
  • Charles Lagat School Of Business and Economics, Moi University, Eldoret-Kenya

Abstract

The role of organizational culture on employee performance has
been a subject of interest. The purpose of the study was to establish the
effects of organizational ownership and culture on employee performance.
The study was guided by Social cognitive theory. Explanatory research
design was used. The target population comprised of 403 employees drawn
from 12 Commercial Banks in Kenya. Stratified and random sampling
techniques were used to obtain sample size of 141 employees. The study
used questionnaires as a tool for data collection. In order to test the
reliability of the instrument, Crobanch alpha test was used. The study
adopted both descriptive statistics and inferential statistics. Pearson
correlation and multiple regression analysis were employed to estimate the
causal relationships between organization culture and performance, and
other chosen variables. Findings indicate that involvement culture (β1 =
0.230, p-value<0.05) and consistency culture (β2 = 0.286, p< 0.05) has a
positive and significant effect on employee performance. Ownership thus
has positive and significant moderating effect of bank ownership on the
relationship between involvement culture and employee performance (β =
0.26, ρ<0.05) and (β= -0.2, ρ<0.05) respectively hence concluding that
consistency culture and involvement culture improves employee
performance. The study recommends that organizations that aim at
improving employee performance need to ensure that employees have
inputs into issues that affect both their work and the organization in general.
Moreover, information needs to be widely shared so that each and every
employee can get the information they require to make the appropriate
decisions.

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Published
2017-05-31
How to Cite
Langat, E., & Lagat, C. (2017). Effect of Organizational Ownership and Culture on Employee Performance Among Selected Banks in Kenya. European Scientific Journal, ESJ, 13(13), 409. https://doi.org/10.19044/esj.2017.v13n13p409