Integration of Technological Systems and Employee Performance in Selected Commercial Banks in Eldoret Kenya

Abstract

Sustainability of banks is dependent on how well the services are rendered to clients. Therefore, the role played by employees in the Banking sector cannot be underestimated. In their quest to improve on employee performance, banks have turned to adoption and integration of technology in their daily operations. Based on the way systems are planned, introduced and implemented, employees can either embrace productively or otherwise. This study therefore sought to examine the effect of integration of technological systems on employee performance in selected commercial banks in Eldoret, Kenya. The study was guided by the following specific objectives: to identify types of technological systems integrated in commercial banks and their impact on employee performance in commercial banks in Kenya, to assess the effect of employee involvement in system development and technological integration process on employee performance in commercial banks in Kenya, to determine the level of technological systems integration in commercial banks and the impact employee performance in Kenya, to establish the ease of use of technological systems integrated in commercial banks on employee performance in Kenya. The study targeted 277 employees of selected commercial banks in Eldoret, Kenya. Simple random sampling technique was used to select a sample size of 164 employees. The researcher also used purposive sampling technique to select 6 managers or head of departments from participating banks as the key informants. This implied a sample size of 170 was used in this study. The study adopted explanatory design. Data collection tools included a semi structured questionnaire and an interview schedule administered by the researcher. Data was analyzed using descriptive and inferential statistics; specifically, multinomial logistic regression model was used to test the hypotheses. The study findings established that integrating technological systems, employee involvement in system development and technological integration process, the purpose for technological systems integration and ease of use of technological systems integrated had a positive and significant effect on employee performance with respective coefficients given as 𝛽 = 0.798 (𝑝 = 0.001), 𝛽 = 0.047 (𝑝 = 0.005), 𝛽 = 0.582 (𝑝 = 0.024) and 𝛽 = 1.467 (𝑝 = 0.002). It is therefore concluded that working conditions defined by integration of technological systems provide employees with opportunities to learn new skills thus improving performance. It can also be concluded that there is low involvement of employees in the planning and integration process of technology. Automated teller machines, internet banking and mobile banking were popular technological systems embraced by most banks and that website related technology services were least utilized. Therefore, it is recommended that commercial banks to leverage integration of technological systems in their operations as it leads to increased performance of bank employees resulting to improved return on investment. Further, banks should be sensitive to employee needs and capacity building through involvement in the planning and integration process via training, piloting and feedback to enable them perform better.