Motivational Factors Affecting the Performance of Employees in the Banking Sector: a Case Study of Eco-bank Kenya

Abstract

Businesses in all sectors are faced with increased competition and high customer expectations; it has become apparently clear that these organizations need to embrace strategies that are customer oriented to gain sustainable competitive advantage. Organizations placing greater emphasis on customer focus will tend to attach a relatively high degree of importance to value added activities that build links with customer's needs and finding solutions to service gaps so as to improve the organization's performance. In this study, the focus was to investigate the effect of customer oriented strategies on the performance of commercial banks in Kenya. It was driven by the general objectives of determining the effects of customer acquisition strategies, customer retention strategies and customer relationship management strategies on the performance of commercial banks. This project examined resource based theory which emphasizes the firm's resources as the fundamental determinants of competitive advantage through customer oriented strategies and performance. The structural contingency theory was also relevant in the study because it points out that organizational structure must be adaptable to each business and that each business must make moves to ensure they are operating within the most efficient structure to support the business. The Market orientation model (Mktor Model) was presented in the study as it refers to the understanding of current and future distributors and of user's value chain, as well as the creation of superior value for both of them. The study employed was descriptive research design and data collected using a survey method. The target population for this study was all commercial banks in Kenya-Mombasa. This population included all banks that operate in Mombasa. The total number of the population was the 42 licensed commercial banks in Kenya. The sample size covered all 38 banks with a representative in Mombasa. The researcher selected respondents from each bank to bring the sample size to 110 respondents. Primary data for the study was collected using a Likert scale structured questionnaire that was developed by the researcher on the basis of research objectives. In  order  to  test  liability  and  validity  for  questionnaires,  a  pilot  study  was conducted and assessed using Cronbach's alpha. The results of quantitative data were presented in charts and tables. Data was analysed using Statistical Package for Social Science (SPSS Version 22). Descriptive statistics such as percentages mean scores, standard deviation and frequencies was used for analysis and presented in form of graphs, charts and tables. The study has determined that acquisition strategies can be used to create specific products for specific customers and the help banks to identify niche markets. The study confirms that better pricing and product innovation are emphasized by the banks as they  influences customer buying a product or service. Based on the result this was able to reveal study that customer oriented strategies geared toward acquisition need to create trust between the organizations and customers to facilitated continued patronage. The study has determined that empowerment of employees in service organization is inevitable in view of the nature of service itself, lack of it could lead to under performance during service encounters. Based on the study findings, it was recommended that Customer oriented strategies need to be strengthened and emphasised as it influences the growth and success of the organization amidst the competitive business environment. The banks employees need to be empowered and motivated for them to deliver on the customer expectation. The banks also need to reward and recognise its customer in order to build a lasting beneficial relationship.