Influence of functional structures on the performance of programs of operating commercial banks: a case of national bank of Kenya (NBK)-western Kenya region

Abstract

Functional management structures include employees understanding of working relationships with their manager, subordinates and peer group. Management structures appear in every type of organization. The main purpose of these study was to assess the influence of functional structures on the performance of programsof operating commercial banks.The objectives of the study were:To find out the extent to which planning influences the performance of programs in commercial banks in Kenya, to determine the extent of implementation influence the performance of programs in commercial banks in Kenya, to determine the extent to which monitoring influence the performance of programs in commercial banks in Kenya and to determine the extent to which evaluation influence the performance of programs in commercial banks in Kenya. The study was of most importance to banks as it used the findings of the study to come up with policies that helped in improving management structures. It was also important to management of financial institutions and research organization. I chose this area because of its large customer turnover and familiarity of the institution. The target population will be 150 employees working in the 10 branches of National bank of Kenya and stratified random sampling procedures will be used to get sample size of 50 employees working representing a sample of 10 branches. Researcher administered questionnaire was used as a tool to collect data. Validity was ensured through the expert opinion of the supervisors while test retest method was used to ensure reliability of the research instrument. The data was analyzed by use of descriptive inferential statistical method. It was then presented in form of charts and frequency tables. From the findings the study established that planning well established functional management structures leads to highly motivated employees thus competitive advantage of any company because their performance leads an organization to well accomplishment of its goals and in today’s dynamic environment the highly motivated employees serve as a synergy for accomplishment of company’s goals, business plans, high efficiency, growth and performance of Programs of Operating Commercial Banks in Kenya as well as all firms in the banking sector. The study recommends that the management keeps on monitoring as well as re-assessing the effect and frequency of mitigation measures adopted in managing functional management structures. The study recommends that the management of organizations in banking sector should have an effective working environmental management plan. This will help to identify internal and external constraints which are likely to cause a significant increase in the budget, disruption of the schedule or performance problems.