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Billah Moraa - Master of Business Administration (Human Resource), Kenyatta University, Kenya

Dr. Jedidah Muli - Department of Business Administration, Kenyatta University, Kenya


Human resource management concerns the human side of the management of enterprises and employees’ relations with their firms. Its purpose is to ensure that the employees of a company are used in such a way that the employer obtains the greatest possible benefit from the abilities and the employees obtain both material and psychological rewards from their work. The performance of employees in an organization is fundamental to the organizational performance and achievement of that firm’s strategic goals. This study sought to establish the influence of human resource management practices on the performance of commercial banks in Kisii County, Kenya. It was based on the following specific objectives; to establish the effect of reward system, compensation, work-life balance and employee working conditions on performance of commercial banks in Kisii County, Kenya. The study was based on three theories which include; resource-based theory, human capital theory and Maslow’s hierarchy of needs theory. A descriptive research design was employed to analyse the findings. The target population of the study was 351 human resource department employees across the 17 commercial banks in Kisii, Kenya. The study used a sample of 105 respondents who were selected through purposive random sampling. Collected was analyzed using descriptive and inferential statistics then presented using charts, percentages, frequencies and tables. The study found out that coefficient of correlation R was 0.864 an indication of strong correlation between the objectives and coefficient of adjusted determinant R2 was 0.722 an indication that changes in dependent variable was explained by changes in independent variables. The study concludes that reward system influenced bank performance. The bank reviewed the salary structure of employees and the job grade or group progression was based on merit to foster performance. Commercial banks offered bank offer incentives to respondents such as bonuses and special packages to motivate employees. Employee compensation positively influenced bank performance since the bank offered additional responsibilities that come with additional benefits and pay to the staffs. Work life balance positively influenced bank performance. The study concludes that the bank had team building activities to promote bonding among the staffs, had an active guidance and counselling department. On working conditions, the study further concludes that the bank had issued a job description which clearly outlined staff duties. The study recommends that commercial banks ought to offer incentives to staffs for increased motivation by offering bonuses and special packages. The bank ought to have a higher rate of compensation compared to competitors and have a formal employee merit review process policy on employees to stimulate performance. The bank ought to have a clear salary scale for every employees, remunerate competitively and offer promotions that come with improved salaries to staffs. The bank ought to give employees incentives to encourage them to perform much better and have competitive allowances for additional work done. The Bank ought to have team building activities to promote bonding among the staffs. The bank ought to adopt active guidance and counseling department and rehabilitated its employees who are addicts of drugs or alcohol. Employee diversity ought to be adopted by the bank. Commercial bank ought to promote inclusivity and have a HIV policy. Employees ought to fit in the Bank’s job design. The bank ought to issue a job description which should clearly outline staff duties. Most employees ought to be willing to work longer for their bank and employees fill motivated. The job design adopted by the bank ought to fit employees job description and job design ought to be relevant with the Bank’s objectives.

Full Length Research (PDF Format)