Analysis of Strategic Response on Employee Performance Among NSE Listed Commercial Banks

Abstract

Growing competition in the banking industry worldwide has made it necessary to apply crucial, 
dependable, and skillful selections in order to increase the survival rate of many organizations. 
Strategic approaches to improve staff performance have not yet been put into practice, as seen 
by the recent bankruptcy of several commercial banks. Over time, employee productivity in 
Kenya's banking industry has also drastically decreased. Additionally, stress among employees 
results in poor levels of engagement, low retention rates, increased absenteeism, and lower 
productivity. Determining the impact of strategic response on employee performance in Kenyan 
commercial banks listed on the NSE was the primary goal of the research. The study's particular 
goals were to determine how market growth, cost-cutting measures, and strategic leadership 
affected employee performance at Kenyan commercial banks that were listed on the NSE. The 
research also looked at how technology adoption affected the link between employee 
performance and strategic responsiveness in Kenyan commercial banks that were listed on the 
NSE. The study focused on Nairobi-based commercial banks utilizing a descriptive research 
design technique. All ten of the commercial banks listed on the NSE were the target audience, 
and questionnaires were used to gather research data over the course of a month. The research 
used a census sample technique to cover all ten commercial banks in Kenya because of the tiny 
population. Both main data were utilized in the research. Semi-structured questionnaires with 
both open-ended and closed-ended questions were used to gather primary data. Qualitative data 
was analyzed using the content analysis approach. In contrast, quantitative data was analyzed 
in SPSS utilizing both descriptive and inferential statistics in line with the study's goals. To 
ascertain the link between the study variables, inferential statistics techniques such as regression 
analysis and correlation were used. Tables and figures were used to display the results. It was 
clear from the investigation that the majority of human resource procedures were implemented, 
including hiring firms to assist with marketing and sales. The regression analysis confirmed that 
strategic leadership and cost-cutting strategies are important factors affecting employee 
performance in the firms and that market expansion strategies may not have a significant impact 
on employee performance. The study found that technological strategies may not have a 
significant moderating effect on the relationship between strategic response and employee 
performance among NSE listed Commercial Banks in Kenya. The research found that among 
Kenyan commercial banks listed on the NSE, there is a favorable relationship between workers' 
performance and strategy response. The research also finds that cost-cutting measures and 
strategic leadership have a big impact on worker performance across companies. Employee 
performance at Kenyan commercial banks listed on the NSE may not be significantly impacted 
by market growth or technology plans. The report also suggested that in order to improve 
employee performance, Kenyan commercial banks that are listed on the NSE should concentrate 
on creating a healthy work environment and having strong leadership