Effects Of Strategic Planning On Human Resource Performance In Commercial Banks In Migori County, Kenya

Abstract

Commercial banks scramble with the challenges of redundancy, profit reductions, employee turn-over or job-hopping phenomenon, people are the key factor to organizational success, innovation, and profitability. This calls for effective strategic planning to make work more interesting, challenging and engaging and produce maximum performance under the prevailing conditions. The purpose of this study was therefore to investigate the effect of strategic planning on the human resource performance in commercial banks in Migori County. The specific objectives of this study were to investigate the effect of the strategic objectives on human resource performance in commercial banks in Migori County, to assess the effect of formulation and implementation of strategic planning on human resource performance in commercial banks in Migori County and to evaluate the effect of monitoring and evaluation of strategic planning on human resource performance in commercial banks in Migori County. This study employed a cross sectionalsurvey research design. The study targeted the 11 Branch managers, 11 operational managers, 11 customer care managers and 864 employees in the Commercial Banks in the Migori County. This translated to 897 respondents. This study employed purposive sampling and simple random sampling techniques to select the sample. Purposive sampling was used to sample the branch managers, operations managers, and customer care managers. Simple random sampling was used to select the employees in the commercial banks. The sample size for the study comprised of 11 branch managers, 11 operations managers, 11 Customer care managers and 267 employees totaling to three hundred (300) respondents. The study used questionnaires and interview schedules for data collection. Reliability and validity of the research instruments was tested before embarking in data collection. The reliability coefficient obtained in this study was 0.895 which implied that the instruments were reliable for data collection. In this, study data was organized, presented, analyzed and interpreted using descriptive and inferential statistical techniques.Based on the findings of this study, it can be concluded that strategic planning in commercial banks if enhanced can enable HR to improve quality of service of the banks as well as the level of productivity and net profit of the bank. The findings may therefore form a useful reference material on the literature of strategic planning to staff of commercial banks, human resource practitioners, educators in banking and human resource, general readers as well as to researchers in this area. Based on the findings of this study, the following recommendations were made that the management of the commercial banks to fully implement the strategic objectives of the banks as this will have a bearing to HR performance of the banks.