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.
Keywords: Target setting, employee productivity, commercial banks
References
Bhattacherjee, A. (2012). Social Science Research: Principles, Methods, and Practices. https://scholarcommons.usf.edu/cgi/viewcontent.cgi?article=1002&context=oa_textbooks
Fincham J. E. (2008). Response rates and responsiveness for surveys, standards, and the Journal. American Journal of Pharmaceutical Education, 72(2), 43-53. https://doi.org/10.5688/aj720243
Graham, L. (2003). Writing journals: an investigation. Journal of Research in Reading and Literacy, 37(1), 39-42. https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-9345.3701008
Karim, M., Haque, E., Dona, P.D., & Moniruzzaman (2015). Performance appraisal system of employees of private banking sector in Bangladesh: A case study on national bank Limited. International Journal of Advanced Multidisciplinary Research 2(3), 77-81. www.ijarm.com
Kemboi, A. (2015) Performance contracting as a strategy for enhanced employee commitment: a case of the vocational training centre Sikri, Kenya. International Journal of Business and Social Research, 5(12), 56-67. https://www.thejournalofbusiness.org/index.php/site/article/view/850
Khan, M. F. U. (2013). Role of performance appraisal system on employees motivation. IOSR Journal of Business and Management, 8(4), 66-83. http://www.iosrjournals.org/iosr-jbm/papers/Vol8-issue4/H0846683.pdf
Kipsegerwo, K., E., Kimutai, K. G., & Chege, K. (2016). Effects of performance management process on employee productivity: A survey of commercial banks in Turkana County. IOSR Journal of Business and Management (IOSR-JBM). 18(11), 52-64.http://www.iosrjournals.org/iosr-jbm/papers/Vol18-issue11/Version-4/G1811045264.pdf
Korir, F. K. (2014). Employees perception on performance appraisal process in G4S Kenya limited (Doctoral dissertation) University of Nairobi, Nairobi, Kenya. http://erepository.uonbi.ac.ke/bitstream/handle/11295/75503/project%20final%20Frank.pdf?sequence=3
Latham, G. P., & Locke, E. A. (2008). Employee motivation; In C. L. Cooper and J. Barling, (Eds), Handbook of Organizational Behavior (pp. 318–333). Los Angeles: Sage
Leitao, J., Pereira, D., & Goncalves, A. (2019). Quality of Work Life and Organizational Performance: Workers' Feelings of Contributing, or Not, to the Organization's Productivity. International journal of environmental research and public health, 16(20), 3803-3813. https://doi.org/10.3390/ijerph16203803
Locke, E. A., & Latham, G. P. (1968). New directions in goal-setting theory. Current Directions in Psychological Science, 15 (5), 265–268. doi:10.1111/j.1467-8721.2006.00449.x
Metzenbaum, S. H. (2006). Performance accountability: The five building blocks and six essential practices. IBM center for the business of government. www.businessofgovernment.org/sites/default/files/ Performance%20Accountability.pdf
Moy, W. (2011). Report on adoption and use of performance management systems including performance measurement, monitoring and evaluation in Africa.
Nda, M. M., & Fard, R. Y. (2013). The impact of employee training and development on employee productivity. Global journal of commerce and management perspective, 2(6), 91-93. https://s3.amazonaws.com/academia.edu.documents/61384156/
Ndiba, B.G. (2014). Effects of innovation of service delivery system on financial performance: a case of commercial banks in Meru Town, Kenya (Master’s Thesis) Egerton University, Nakuru, Kenya. http://ir-library.egerton.ac.ke/jspui/bitstream/123456789/695/1/Backson%20Gitimu%20Ndiba.pd
Nwannebuife, A. S. (2017). Effect of employee motivation on organizational productivity (Master’s thesis). Covenant University, Ota, Nigeria. http://eprints.covenantuniversity.edu.ng/9797/1/Binder%203.pdf
Sahai, S., & Srivastava, A. K. (2012). Goal/target setting and performance assessment as tool for talent management. Procedia-Social and Behavioral Sciences, 37(2012), 241-246. doi: 10.1016/j.sbspro.2012.03.290
Sarker, A. S. (2017). Human resource management practices and employee performance in banking sector of Bangladesh. Journal of Human Resource Management, 20(1), 68-80. http://www.jhrm.eu/2017/05/68-human-resource-manag ... ector-of-bangladesh/
Teo, T. C., & Low, K. C. P. (2016). The impact of goal setting on employee effectiveness to improve organisation effectiveness; empirical study of a high-tech company in Singapore. Journal of Business & Economic Policy, 3(1), 1-16. http://jbepnet.com/journals/
The Kenya Bankers Association (2016) Annual Report. https://www.kba.co.ke/downloads.php.
