The Moderating effect of Psychosocial Work Environment on The Relationship Between Team Learning and Employee Performance In The kenyan Islamic Banking Practice

Abstract

Organizational Learning has been explored in many ways to develop human skills and expertise for the job they do, so as to improve on their performance on a day to day basis. The Banking industry internationally and in Kenya has evolved over the last ten years and banks are now well spread across the country using digital platforms to reach their un-banked clientele. The Islamic banking concept was introduced in Kenya in the year 2007 with 2 fully Shariah compliant banks while many other windows offering the concept were also accessible to the Kenyan public. The growth of the institutions has been remarkable, although not many employees or the Kenyan public are aware of the concept and modalities of how it is practiced. The aim of this study was to determine the moderating effect of psychosocial work environment on the relationship between team learning and employee performance. The explanatory research design was adopted for this study. The target population was considered to be 600 employees and theample size of 173 was obtained using the proportionate sampling method from three banks offering Islamic Banking products. Data was collected using five point Likert scale. Data was analyzed using multiple regression analysis. The study revealed that team learning (β=0.5576p- value 0.00) as an organizational memory tool had a statistically significant effect on employee performance. The study further failed to reject the null hypothesis for the moderating effect of psychosocial work environment on the relationship between team learning and employee performance (β=0.03477, p-value=0.064. This study concludes that team learning is important for employee performance, however, psychosocial work environments does not affect teams and their performances. It is therefore recommended that Banks practicing Islamic Banking concept should work more in team targets instead of individual employee performance targets to improve on overall organizational performance