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

Abstract

The role of organizational culture on employee performance hasbeen a subject of interest. The purpose of the study was to establish theeffects of organizational ownership and culture on employee performance.The study was guided by Social cognitive theory. Explanatory researchdesign was used. The target population comprised of 403 employees drawnfrom 12 Commercial Banks in Kenya. Stratified and random samplingtechniques were used to obtain sample size of 141 employees. The studyused questionnaires as a tool for data collection. In order to test thereliability of the instrument, Crobanch alpha test was used. The studyadopted both descriptive statistics and inferential statistics. Pearsoncorrelation and multiple regression analysis were employed to estimate thecausal relationships between organization culture and performance, andother chosen variables. Findings indicate that involvement culture (β1 =0.230, p-value<0.05) and consistency culture (β2 = 0.286, p< 0.05) has apositive and significant effect on employee performance. Ownership thushas positive and significant moderating effect of bank ownership on therelationship between involvement culture and employee performance (β =0.26, ρ<0.05) and (β= -0.2, ρ<0.05) respectively hence concluding thatconsistency culture and involvement culture improves employeeperformance. The study recommends that organizations that aim atimproving employee performance need to ensure that employees haveinputs into issues that affect both their work and the organization in general.Moreover, information needs to be widely shared so that each and everyemployee can get the information they require to make the appropriatedecisions.