Effect of Employee Service Training on Performance of Commercial Banks in Kenya: A Case of Tier 1 Banks

Abstract

The perception that service improvement strategies affect organizations’ performance positively motivated the conduct of this study to determine the effects of service improvement strategies on the performance of commercial banks in Kenya where limited such studies have been done. The study sought to determine effect of identified service improvement strategies on the performance of Tier 1 banks in Kenya as the main players in the country’s banking sector controlling the market share, customer base and asset base as well as employee numbers. The study adopted a descriptive survey design. A sample of 96 purposively selected respondents from the branches of the six Tier 1 banks in Nairobi was picked. Nairobi banks were targeted because all banks in Kenya have their headquarters and their main branches here. The study found that there are linear relationships between banks performance with each of the interrogated variables with varying significant strengths. Moreover, Kenya should invest more on Customer relationship management and product differentiation without ignoring employee training but not much competitive value is added by market segmentation. Future research should focus more on Customer relationship management and product differentiation for performance improvement and employee training strategy for improving worker efficiency in the banks.