INFLUENCE OF HUMAN RESOURCE INFORMATION SYSTEMS ON PERFORMANCE OF THE BANKING INDUSTRY IN KENYA

Abstract

Information Technology has revolutionized the mode of conducting business all over the world. It is applied in virtually every sector of the world economy. Technology adoption is linked with higher business outcomes. Best practices in human resource management should not be overlooked while embracing technology. In Kenya performance in the banking sector demand that the institutions should have effective systems in place to offset unpredictable events that can maintain their operations and reduce the risks implicated through development. This study sought to fill the existing research gap by to determine the role of human resource information systems on organization performance in banking industry in Kenya. The research design employed in this study was descriptive research design inform of a survey. The population of interest of this study comprised of 41 Commercial Banks in Kenya. Thus the study conducted a census survey owing to the small number of commercial Banks license by Central banks of Kenya. The study employed a purpose sampling to select one respondent (Human Resource Manager) from each company. The study sampled 41 respondents who were the respondent for this study. Self-administered questionnaires were distributed among sampled respondents. A content analysis and descriptive analysis was employed. The data was coded to enable the responses to be grouped into various categories. Descriptive statistics was also used to help in data analysis. Inferential statistics regression was done to determine the role of human resource information systems on performance of commercial banks in Kenya. In addition, a multiple regression was used to measure the quantitative data and was analyzed using SPSS too. The study found that recruiting information systems influence performance of commercial banks in Kenya. The study also established that training and development information system influences performance of commercial banks. The study recommends that management of commercial banks should not conduct training based on the good will of the senior employee but based on the needs of the employees the study found that training programs provides detailed training plan managers and eliminates skill gaps.