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Today's demanding markets requires organization to work harder than ever before to develop employees who can perform smarter, faster and more creatively than their competitors. If an employee is not working up to full speed he/she is costing the company money in wasted efficiency and wasted profits. That is why performance appraisal is important. It is your best chance as an organization to reward your employees for their accomplishments and motivate them to new levels of productivity. It is also through performance appraisal that a company can realize the deviations from expected outcomes and help to lay out a plan so that improvement can be made.
According to Cummins and Worley (2001), performance appraisal can be defined as a feedback system that involves the direct evaluation of individual or work group performance by supervisor, Manager or peers. Most organizations have some kind of evaluation system that is used for performance feedback, pay administration and in some cases counseling and developing employees.
For instances, in Kenya Commercial Bank the appraisal performance is usually an annual event where employees are appraised by their immediate supervisor and managers. The results of these appraisals are used for the bonus distribution at the end of financial year. The results are also used as the basis of either being promoted to higher grade or being demoted. There has been a lot of cases where employees complain that their performance appraisal was subjective rather that being objective. It is this view that the research is aimed at establishing the factors that affect the performance appraisal process and recommend the ways in which the process can be made more effective and objective.
Harvard (2001), identified some area that is addresses during performance appraisal process and these were; defining goals, targets and objectives for the period in which appraisal are to be done by providing a formal method of setting and agreeing on work objectives, giving the appearance that the organization is interested in challenging employees to deliver high performance by providing a formal system to review performance, work planning and problem sharing. Review past performance in order to evaluate it and associate rewards with it as a way of recognizing the contributions and achievement of each individual member staff. Identify and planning to build on the strengths of employees in an organization. Identifying and eliminating weakness of employees in an organization by identifying training needs and agree on way to improve individual performance. Establishing constructive dialogue about performance that can be used after the appraisal discussion to improve communication and understanding between managers and employees.
However the process of performance appraisal has not been effective in Kenya Commercial Bank for the last three years it has been used. In many incidents the appraisal process has failed to because those who are responsible for getting them of the ground do not think through what they are doing. They copy another organization scheme without necessary finding out what it offers its host.
For instance, KCB introduced the appraisal system after learning that other banks like Barclays and Co- operative Bank are doping it without preparing employees through training to understand how the process works. This has lead to a lot of resistance from employees because some view performance appraisal as a threat to their jobs.
Bascal (2002) observed that most banks have an internal training department that offers wide range of courses. These courses range from two days to two weeks in length in each year. While this is true with KCB the training has not been successful from the word go, because the tool that has been used for performance appraisal Balance Score Card was perceived to be a tool for down sizing the organization and people resisted the use of the tool in 2005. In the year 2006 and 2007 there has been intensive training which includes hiring of consultant to train employees on balance score card and still there are problems that are associated with appraisal process.
Since the introduction of performance appraisal where the balance score card (BSC) is used as a measurement tool for employees, there has been debate on how the process is subjected to personal prejudices. This has come up as a result of some supervisors being more lenient while others are strict when it comes to awarding scores a BSC.
The main purpose of this research is to find out the benefits that are associated with a well designed PA process as well as addressing the problems that affect the effectiveness of performance appraisal. The study will also suggest some of the ways that can be used to improve the process of appraisal. It is in this view that the study is aimed at establishing the benefits that the bank has enjoyed since the introduction of BSC as a performance measurement tool since 2004.the study will also address the stabling blocks that hinder the effectiveness of a PA process. The study will conclude by suggesting the ways in which the process can be improved.
- Statement of the problem
According to Nzuve (1999) performance appraisal can be defined as the evaluation of employees work performance over a given period of time. It is formalized review of the way in which an employee has been performing on the job. In Kenya Commercial Bank employees' appraisal is always carried out at the end of the year and the results of the appraisal are tied to bonus, promotions and Demotions of some employees. The appraisal process has been perceived to be very subjective rather than being objective.
There are several issues that have been raised in connection with appraisal process. For instance during the process the Manager may recommend a job rotation for employees in a given department to gain more skill in other areas but you still find a clerk who has worked in one department for more than ten years. The challenge is, on how to use the recommendations in performance appraisals to increase employees' productivity in an organization.
Levinson and Harry (2003) commented that employees are in most cases not allocated mentors neither do they get a chance to rotate in various departments and gain knowledge of other section of the Bank.
This has lead to monotony of performing same tasks over a long period of time. In most cases, employees' ends up feeling de-motivated, as their personal growth is kind of stagnant into one position.
The other issue is employee involvement in the appraisal process right from one planning trough review and final assessment. According to ken and Christina (2001) a key aspect of the appraisal is to communicate objectives with measurable criteria.
The management is supposed to ensure that performance is measurable in numerical or percentage terms. This is to provide appraisee with specific targets and give them sense of achievement when they surpass them. This is most cases is not done because employees are not involved at the initial stages when the targets are set from the corporate level and cascaded down ward to employees without consultation. This has brought about the issues of unrealistic targets, which are not achievable.
When it comes to promotion the scores of performance appraisal have to be accompanied by academic qualifications and these de-motivates the workers who are well experienced and are performing in a excellent manner but because they have no degree they can never see the door to promotion.
- Purpose of the study
The main purpose of this study is to analyze the major benefits associated with a well designed performance appraisal system the researcher is also concern with major problems associated with the performance appraisal so, as to come up with ways in which the process can be made more effective. This is to ensure that the process encourages and motivates staff to realize their full potentials and make maximum contribution to the organization.
- Research Questions
The research questions that the study will address are:
- What are the benefits associated with a well designed performance appraisal system in KCB?
- What are problems that hinder effective performance appraisal in KCB?
- How can performance appraisal be improved at KCB?
- Importance of the study / justification of study
The study will add more knowledge to the existing research in the field of performance appraisal; it will help KCB to establish the stabbing blocks of the performance appraisal and get to know how these problems can be addressed to make the process more effective and applicable to organization. This will eventually lead to staff motivation that result in higher staff retention. With motivated work force, the level of customer service will greatly improve hence attracting more business and this will lead to profitability of the company. The results of the research can be used by other institutions in the banking industry to improve on their performance appraisals process
- Scope of the Study
The research will be a case study of KCB. The study basically will be carried out with respondents from the central Region which comprises of six branches namely; Thika, Ruiru, Matuu, Gatundu, Githuguri and Kiambu and Head Office. The sample will be drawn from two categories of staff namely management and union members
- Definitions of terms
- Performance Appraisal
According to Nzuve (1999) performance appraisal can be defined as the evaluation of employees work performance over a given period of time. It is formalized review of the way in which an employee has been performing on the job.
- Balanced Score Card
It is a tool used to measure employee performance. It outlines the key result areas like financials, customer service, internal process and growth as the main areas to be measured .It is also given the targets to be achieved in either numerical or percentage ratios.
According to industrial relation Act 1996 Section 5, an employee is any person employed in an industry whether on salary or wages or piece of rate. In Kenya Commercial Bank we
have employees who are under management while others are union members.
According to Robbins (2007), performance feedback has been defined as the information that lets an employee know how well he or she is performing a job
1.7.5 Performance Measurements
The term performance measurements have been defined by Jonathan and Canwel (2004) as the quantity and quality of work that individual employees produce during the course of their job.
1.8 Chapter Summary
The abroad objective of this study is to establish the factors that influence the performance appraisal process either positively or negatively. The chapter has addressed the topics such as background of study, statement of the problem, purpose of the study, research questions, and importance of study. The scope of study and definitions of terms are also covered in this chapter.
The next chapter will be based on literature review and will be addressed in line with sub-endings outlined by Research questions outlined in this chapter. Chapter three will cover the methodology to be used by the research in collecting the data.
2.0 LITERATURE REVIEW
The Literature review is based on works and studies which have bee done by the other scholars and researcher in the area of performance appraisal process.
The review will provide some basic knowledge of the research topic by shedding some light on what other researchers have found out in their studies concerning the major benefits of performance appraisal process. It will also address some of the major problems encountered during the evaluation process. The literature reviews highlight the major ways in which the performance appraisal system can be improved in an organization.
In today's competitive business environment, employees in a given company present one of the most valuable assets in an organization. The success or productivity of a company depends on full utilization of individuals potentials in a given organization.
Therefore a performance appraisal process is absolutely critical to the ongoing success of a company. Without measuring the performance, employees may lack an idea of what is expected of them and may not be working towards the goals that contribute to long term success of the business.
2.2 Benefits of a well Designed Performance Appraisal
There are several benefits associated with a well designed performance appraisal system in a given company. Bob (2001) made an observation from his working experience with clients and by reading the research done by other scholars in the discipline of performance and came up with some crucial benefits that acts like the pillars of performance management. These pillars need to be in place to contribute to an organization excellence. These pillars are:
2.2.1 Organizational Purpose and Direction.
People need to know the organizations vision, mission and values, especially those that differentiate it from other apparently similar organization. The mission and vision statements of a given company spell out the purpose and direction that it takes.
Since the performance process of an employee is based on the company's mission and its objectives, then management of performance makes it clear to employees what is expected of them by setting goals, establishing timelines when the goals should be achieved, tracking progress through review process and identifying obstacles or challenges faced in meeting the goals. The purpose becomes clear to all people and teams at different levels in an organization.
A good performance appraisal should be built around unambiguous objectives. These objectives should cover all the levels and areas of the organization and the needs of each. The appraisal system should be clear in its purpose. Participants should know whether it is being used to determine raises and promotions or to determine developmental needs. It is important to clearly state who should participate in the system that is, will employees at all levels be involved or will some area or layers in the organization be excluded? Participants must be aware of what type of information will be collected, how often, and who will have access to this information
Performance management can act as a mechanism to help people recognize that continuous improvement is essential not just desirable and to know what excellent performance looks like. By giving employees as clear understanding of their individual goals and how they fit into the bigger corporate picture is a motivating factor for employees. Measuring one's performance acts as a drive for higher achievements. The performance appraisal process provided a link between the business objectives and employees' day to day action which are directly linked to company's objectives.
Performance discussions between the appraiser and the employee are the most critical components of a successful performance appraisal system. Performance reviews should not emphasize a “tell and sell” approach in which the appraiser tells the employee how good or bad their performance has been and attempts to convince them to accept this rating. Using a “tell and sell” approach can alienate employees and destroy the possibility of open communication in the future.
Instead the performance review should emphasize dialogue between the evaluator and the employee. During the discussion the employee should be given the opportunity to see all written appraisal of his or her performance then discuss them with the evaluator. The response should be obtained from employee both verbally and in writing. Some organizations encourage employees to fill out a self appraisal form to facilitate this dialogue.
By managing performance of a company it creates a support mechanism to encourage and give individuals a sense of self confidence to recognize their potential. It also helps in identifying training needs of employees which is necessary in ensuring that employees have the necessary skills required to perform their duties to the expected level.
The support mechanism helps the company to reduce employee turn over and attrition by ensuring that our employees remain relevant to the needs of the company. The results of performance process can be used by managers and supervisors who know how to motivate their people to do the necessary couching for their staff.
For performance appraisal system to be effective, it should be supported by the entire workforce. This includes management, support for possible expenses such as additional training, employees meetings appraisal forms and other materials of staff time. In addition, employees can benefit from involvement in the performance appraisal process. For example, many companies encourage employees to do a self appraisal as a means for discussion. The information solicited by self - appraisals should be consistent with both the organizations objectives and individual goal.
2.2.4 Recognition and Compensation of Top Performers.
Employees' progress can be tracked against the performance goals so as to identify the employees who are delivering against expectations and contributing to the overall success of a company. The results of performance appraisal can be used to reward employees who have put exceptional efforts to the success of a company.
The reorganization may be on monetary or non-monetary basis for instance awarding of certificate and trophies. Studies have shown that reorganization of employees contributes to ongoing job satisfactions and productivity.
A company that is able to recognize its employees is able to retain its best performers and this helps employees to be more successful by providing them with clear goals that supports the company's objectives. The success of individual employees is directly related to the success of a company.
2.2.5 Feedback Loops
Performance appraisal gives the feedback on how people and performance doing. By getting feedback on performance it is easier for management to know how well the organization is doing against the expectations. The performance appraisal can be used as a structured ongoing day-to-day feedback from managers, colleagues and customers. The identified loops can be filled up or a remedial action to be taken.
Performance management is an important tool in an organization because it provides details and conditions that need to be met for an employee to continue working in a given company. If a case arises that calls for termination of an employee due to unsatisfactory performance then the company is legally protected by the rules and regulations laid down in the performance contract
Therefore in any given organization the human resource department should understand the importance of having a strong performance management process in place, such a process helps the company to better motivate and retain top performers, more closely align individuals goals with those of the organization and create a more engages workforce all of which leads to greater productivity and ultimately improve the profitability.
2.3 Potential Problems Associated With Performance Appraisal
The aim of any human resource department is to conduct a performance appraisal that is free from personal biases and prejudices. However, this has not been achieved due to perceptual errors that occur in the process of appraisal. Regardless of the performance criteria or the scientific nature of the appraisal method, perceptual errors can occur.
2.3.1 Halo Effect
This error occurs when the appraiser allows one trait or characteristic which may be either positive or negative to override a realistic appraisal of other traits or characteristics. For instance, if an employee is always on time to work, a supervisor might allow these positive characteristics to influence his / her evaluation of this employee's performance on other dimensions. Thus, this employee might be judged as a good performer - not because of actual performance, but because of the halo effect.
The recommendation from Robbins and Decenzo (2007) for people who design teaching appraisal forms for college students to fill out to evaluate the effectiveness of their instructors each semester is that they must confront the halo effect error. This is because the students tend to rate a faculty member as outstanding on all criteria when they are particularly appreciative of a few things he or she does in the classroom. Similarly, a few bad habits, such as showing up late for lectures, being slow in returning papers or assigning an extremely demanding reading assignment might result in students evaluating the instructor as “lousy” across the board.
Stereotyping occurs when the appraiser places an employee into a class or category based on one or a few traits or characteristics. For example, an older worker may be stereotyped as being slower, more difficult to train and unwilling to learn new approaches. This perpetual error could negatively affect the overall performance evaluation. Of course the older worker being evaluated may not fit this stereotype at all and may be quick to pick up new concepts and anxious to participate in new training programs.
Similar to reducing the halo effect, stereotyping may be controlled by offering specialized training to the appraisers and making the problem associated with stereotyping salient. In addition to this, avoiding scales that are not tied to performance standards can help reduce stereotyping errors.
Attribution is another error that affects the validity of performance appraisal. According to Robbins and Decenzo (2007) attribution occurs when rating other in a way that gives special consideration to qualities that appraisers perceive in them. For instance, if a supervisor attributes an employee's good performance to external causes such as luck, holding an easy job, or receiving help from co workers, then the performance evaluation will not be as positive as if the supervisor had attributed good performance to external causes such as effort or ability.
Attribution errors can be avoided by using behaviorally anchored rating scale because this method requires the evaluator to rate the behavior but not judge it.
2.3.4 Recency Effect
Recency errors occur when performance is evaluated based on performance information that occurred most recently. Since it is easier for most of us to remember vividly what happened last week than what happened a year ago then this creates the potential for Recency error during performance appraisal. Recency errors are most likely to occur where there is a long period of time between performance evaluations for instance one year.
Because recent employee's behavior is the most salient to a supervisor, using a method that requires the appraiser to keep a log of employee performance throughout the year, such as the critical incident approach and forcing the appraiser to reveal the log before making a rating can help to alleviate this problem. Critical incident method of performance appraisal ensures that a record of highly effective or highly ineffective performance is kept.
Recency error can be reduced by continually keeping documented evidence of employee's performance. It is important to keep a file for each of your employee and continually put note in this files describing specific incidents of accomplishment including dates and details. When the time comes for you to conduct the formal employee appraisal, you will have a comprehensive history of each employee's performance record during the appraisal period.
2.3.5 Leniency / Strictness Errors
This error occurs when the appraiser tends to use one of the extremes of a rating scale. When leniency error occurs, most employees receive favorable rating, even though it is not warranted by their performance. leniency errors can occur for a number of reasons. For example, a supervisor may be uncomfortable confronting particularly aggressive employees with less than favorable evaluations. To avoid conflicts, the supervisor might choose to rate everyone high. It is also possible that the supervisor's own performance evaluation is based particularly on the performance of his/her work group. Then rating everyone favorably gives the impression that entire work group is very effective.
Strictness errors, which are basically the opposite of leniency errors, occur when the appraiser erroneously evaluates most employees unfavorably. In this case, supervisors may simply want to appear “tough” or they may have unrealistic expectations of performance. Regardless, most employees are assigned rating at the lower end of the performance scale.
Both of these errors can be eliminated by using forced distribution method that requires that the appraiser place a certain percentage of the people being evaluated in various categories, from outstanding to below average. By forcing the appraiser to use all of the categories, both leniency and strictness errors will disappear.
Leniency error can be solved by use of multiple appraisers. In this case a set of evaluator's judges a performance, the highest and the lowest scores and the final performance appraisal is made up from cumulating scores of those remaining. If an employee has ten supervisors, nine having rated him or her excellent and one poor, the one poor appraisal takes less importance. Multiple appraisers increase reliability of results.
2.3.6 Central Tendency Errors
According to Robbins and Decenzo (2007), central tendency error occurs when the appraiser tends to avoid the “excellent” category as well as the unacceptable category and assign all ratings around the “average” or midpoint range. For example, if you rate all employees as 3 on a scale of 1 to 5, then no differentiation among them exists. Suppressing differences makes employees work performances appear considerably more homogenous than they really are.
To curb these problems personnel comparison system may be applied, for example, forced distribution. This method requires the appraiser to place a certain percentage of employees into each of several categories based on overall performance. For example, 10% of the employees must be placed in the “unsatisfactory” category, 15% must be placed in the “fair” category, and 50% must be placed in the “satisfactory or average” category, 15% in the “good” category and 10% in the “outstanding” category.
2.4 How to Improve Performance Appraisal
The performance appraisal system can be used to promote a variety of management goals and objectives. In addition to systematically encouraging high levels of performance, the system is useful in identifying employees with potential, rewarding performance equitably and determining employees need for development. However Watson (2001) observed that both appraisers and appraisee dread the process of performance appraisal whether the organization is using traditional appraisal methods peer appraisals or leading edge 3600 feedback. It's important to note that any company can improve the ability of its system to influence and improve performance. Some of the major components or principles that can enhance or improve the performance appraisal are:-
2.4.1 Job Description
A good job description helps an employee to break down the job into components tasks for success. The beginning of a good performance appraisal starts with a good job description, Basal (2002)., For an organization to have the best performance appraisal system, then it should ensure that all employees have a job description which they have agreed on and should be updated regularly to make necessary adjustments it need arises
- Performance Appraisal Design
Organizations are required to have a standard and effective way of designing performance appraisal system if the appraisal is to be considered effective. According to Daniel (2001), employees need to feel that performance appraisal method used gives enough feedback on their performance based on the performance standard and set performance measurements. If they perceive the process is unfair, inaccurate and subjective, there is a danger of unreliability of the system being used. The performance appraisal system should be supported by the entire workforce.
2.4.3 Performance Indicators
Paradis (2001), defined performance indicators, as the means by which success in achieving objectives can be planned, monitored and evaluated. Performance indicators help the employees to evaluate their performance against the given indicators. For instance, a sales person can be given a certain target to achieve in a specified period of time. The target acts as a performance indicator to know whether the person is performing to the expected level or below the average.
In situation where performance indicators are lacking performance appraisal becomes very difficult and largely ineffective in cases where there are no targets set, and agreed on, individuals performance cannot be objectively assessed. This creates a room for subjective opinion about personality traits and the whole process become bias. Lack of performance indicators reduces the performance appraisal process to a personal relationship between supervisor and the staff member rather than a business association with the organization.
Therefore, it is important that a performance appraisal process should provide for indicators that can help in setting targets that lead to objectives assessment of employees in a company. The performance indicators help in focusing individuals efforts on organizational goals
The term performance measurements have been defined by Jonathan and Canwel (2004) as the quantity and quality of work that individual employees produce during the course of their job. Performance measurements are agreed when setting objectives. It is worthy noting that performance measurements deals not only with what is to be achieved by those concerned but also how well they know that they have achieved. Performance measures should provide tangible or observable evidence of whether or not an intended outcome has been achieved and the extent to which the job holder has produced results.
According to Armstrong (2001), performance measures should at all times be related to results and not effort put to perform. It should also be within the job holders control objective and measurable in terms of finance, output, impact reaction or time
According to Robbins (2007), performance feedback has been defined as the information that lets an employee know how well he or she is performing a job. It may be intrinsic (self generated feedback) which is provided by the work itself. It can also be extrinsic which is provided by supervisor or other sources.
The timing of the performance appraisal or feedback session should be predictable. For instance, some organizations have an annual performance appraisal while others have it after every six months. When the appraisal is predictable it helps the employee to prepare psychologically for evaluation. In this case employees will always have an advanced knowledge of what to expect in the performance review and when to expect it.
The word “feedback” relates to any information that helps to evaluate the success or failure of an action that has taken place. According to Katz (2001) a critical manager's responsibility is assessing and giving timely feedback to his/her subordinates on their performance. Continuous feedback in an organization is necessary because as soon as the mistake is discovered it can be corrected immediately to avoid further deviations. Feedback on performance that is given as soon as possible has proven to be the most effective.
Secondly it is not fair to tell someone how she/he messed up two to three months after the job is done. Let people know quickly where they are not performing to the expected standards so that they rectify their errors that have been identified and move on to attaining success.
Ivan (1999), observed that people want to know how they are doing, how they are being perceived by their supervisor and others. They also want to find possible ways on how they can improve their performance. Employees attitudes are directly linked to the performance feedback they get from time to time, Lam (2002) made an observation that employees who receive favorable performance feedback usually develop a more favorable work attitude which is expected to persist for a long period of time.
Thus, attitudes such as organizational commitment, job satisfaction and distributive justice often deteriorates when the performance fall short of individuals' expectations. Performance appraisal should therefore be seen as an attempt to influence or reinforce a positive behavior and elimination of certain bad action. In this case, supervisors must be sincere and create a enabling working environment as possible Robbins (2002).
An effective performance appraisal is that which has been properly planned. The planning process should include both the appraisee and the appraiser. Ken and Christina (2001), advocates that planning includes preparing measurable objectives. At this stage both appraiser and apraisee assign measures to each objective ensuring that they will be able to access the information they need to monitor performance against those measures. It involves looking at the team and organizational objectives and how they can be measured. The planning process considers the contributions that each team member must make in realization of the corporate objectives. Performance appraisal can be improved by ensuring that there is effective planning which should outline the subordinate performance expectation based on critical job functions and agreed goals (Katz, 2001).
The training for both appraisee and appraiser is necessary to improve performance appraisal. It addresses the lack of necessary skills or information that prevents either the appraiser or appraisee from performing to standards. Appraisers need training on how to address performance appraisal problems.
Ken and Christina (2001), suggest that before the appraiser corrects a problem, the appraisee must acknowledge that a problem exists. It is important that they realize the adverse impact their actions on meeting their objectives or they will not commit to solving the problem. The appraiser should acquire skills to explain how the performance of each member affects the entire organization
2.5 Chapter Summary
This chapter provides the literature review based on research questions which were:
1. What are the benefits of a well designed performance appraisal system in KCB?
2. What are potential problems associated with performance appraisal in KCB?
3. How can performance appraisal be improved at KCB?
The literature has provided the several benefits that are associated with a well designed performance appraisal system. The review has also addressed the major problems associated with the process of performance appraisal. The various ways in which performance appraisal system can be improved have been discussed.
The next chapter looks at the methodology to be used in the study. it will specifically deal with the research design, population, sample design which consists of sample frame and sampling techniques, data collection, research procedure, data analysis and presentations.
3.0 RESEARCH METHODOLOGY
This chapter will outline the methodology to be used to carry out this study. It focuses on research design, population and sample size, data collection, research procedure data analysis and presentation methods as well as highlighting some of limitations which are likely to be encountered.
3.2 Research Design
The purpose of this study is to identify and analyze the major benefits of a well designed performance appraisal system and address the potential problems associated with performance appraisal and come up with ways in which performance appraisal can be improved. The research is designed as a case study of Kenya Commercial Bank. According to Brian (2000) a case study can be defined as an extensive study of a single situation such as individual family or organization. The justification for choosing a case study of KCB is that the study will help to investigate the benefits that accrue to a well designed PA process. The approach of a case study will be cost-effective and easily accessible.
3.3Population and Sampling Design.
Population has been defined by Cooper and Schindler (2000) as the total collection of elements about which the researcher wishes to make some inferences. For this research, the population comprises of employees both in management and in union in six branches of KCB within the central region which are: Thika, Ruiru, Githunguri, Matuu, Kiambu and Gatundu.
as well as the Head office in Nairobi. The major categories of this population will be; Management (180) and union (300). Management is divided into two; senior management and line management while union staff falls under two category supervisors and clerks.
3.3.2 Sampling Design
This is a determination of who and how many people to interview, what and how many events to observe or what and how many records to inspect. Cooper and Schindler (2000) define a sample as a group of cases respondents or records comprised of part of the target population carefully selected to represent the population. They continued to say that a good sample is accurate and precise and for a sample to be a representative of the population, it should be at least over 20% of the population.
The total number of staff population in Central region of KCB is four hundred and eighty (480). The study will take 28% of that population as a sample. The sample will comprise of one hundred and thirty four employees drawn from both Managerial and Union staff in order for it to be a good representative of the whole population.
18.104.22.168 Sampling Frame.
According to Denscombe (1999) a sampling frame can be defined as an objective list of the population from which the researcher can make his/her selection. It contains a complete, up to date list of all those that comprise the population for research. In this research, the sampling frame will be obtained from the central region of KCB and head office in Nairobi. The central region is composed of six branches which are: Thika, Ruiru, Githunguri, Matuu, Kiambu and Gatundu.
22.214.171.124 Sampling Technique
A stratified sampling technique will be used. In this research the population will be split into sub populations called strata as senior management, line management, supervisors and clerical staff. A sample size of (134) will be determined then divided into sub-samples (strata). From each sample, a random number of respondents will be selected. Finally the sub sample results will be added together to obtain figures for the overall sample
126.96.36.199 Sample size
Cooper and Schindler (2000) defined sample size as being a function of the variation in the population parameters under study and the estimating precision needed by the researcher.
The sample size distribution will be as shown below:-
Sample size distribution
Table 1 Sample Size Distribution
3.4 Data Collection Methods.
The research will be conducted using questionnaires as the data collection method with all respondents from the four categories of staff. All the questionnaires will be delivered to the respondents, the researcher through the postal address. The questionnaires will contain both closed and open ended questions. Personal interviews will be used where the respondents have difficulties in understanding the questions.
The questionnaires will be based on the research questions highlighted in chapter 1.
3.5 Research Procedure
Questionnaires are designed and developed to collect primary data based on the research questions. Once questionnaires are ready a pilot test will be carried out to identify any weakness in it and to do the necessary adjustment to improve it.
3.5.1 Pilot study
The questionnaire will be retested to detect weakness. The pilot study will involve two senior managers, three line managers, five supervisors and six clerical staff. According to Cooper and Emory, (1995) it is necessary to do a pilot study to ensure that the questions are well understood by the respondents. Piloting of a questionnaire is a test for validity and reliability.
3.5.2 Administration of the Questionnaire
The pilot questionnaires will be administered by the researcher through hand delivery to each respondent within the branch by postal address to those in other branches.
A covering letter highlighting the purpose of study will be sent along with questionnaire. The covering letter requests the respondents to complete the questionnaire in 14 days.
A research assistant will follow the progress the respondents are making and delivering the completed questionnaires back to the researcher to do the necessary amendments.
3.6 Data Analysis and Presentation
Data analysis will be done using statistical package for the social sciences (SPSS), the software that is used to generate quantitative reports through tabulations, percentages and measures of central tendency. Responses from the questionnaires will be interpreted coded and their frequencies will be determined through cross tabulation on differences between respondents. The data will be supported by pie charts.
By the fact that the banking sector is a busy service industry, there could be some delay of getting the feedback from respondents. However, this will be reduced by the researcher going an extra mile to interviewing the employees who work overtime like on Saturday and Sundays when there are no customers in the banking hall.
3.8 Chapter Summary.