A survey of the application of performance Management principles in the kenyan commercial Banking industry

Abstract

The survey for the study was carried out between 17th September and 4th October 2003. The study was conducted with the objective of determining the extent of the application of performance management principles in the Kenyan commercial banking sector. To achieve this objective, primary data was collected from all the commercial banks in Kenya. The researcher adopted the list of the banks from the Central Bank of Kenya. Analysis of the data indicated that all the banks practice performance management principles to a fair extent. However, further studies indicated that performance management principles are practiced in the larger banks as compared to the medium and small banks. The findings from the analysis showed that the following performance management principles are most practiced by the banks: • Line managers are actively involved in performance management • All staff own the performance management system • Teamwork is emphasized by your bank • The bank emphasizes individual approach to task performance • The bank's performance appraisal/review system is objective • The bank's compensation system is based on performance • Performance appraisal is used exclusivelv for performance improvement • The bank's performance management syst~ encourages coaching The following performance management principles were found to be weak: • The principle of mentoring. • The principle of staff training and development. • Counseling principle • The principle of coaching