Leadership Practices and the Performance of Public Organizations in Kenya: A Case of Nyeri County Headquarters (Published)

Despite the central role leadership plays in achieving set objectives for organizations, leadership practices can sometimes be an impediment to achieving those goals and objectives. The study examined influence of leadership practices on performance of public organisations in Kenya, Nyeri County Headquarters. Predictor variables included communication, leadership support, accountability, and delegation. Out of the 159 randomly selected participants, 113 successfully participated, translating into 71% response rate. From the findings, 53%, 76%, 73%, and 64% of the respondents respectively agreed that communication, leadership support, accountability, and delegation influenced performance of public organizations. Inferential statistics showed that communication (p=0.002<0.05), leadership support (p=0.001<0.05), accountability (p=0.004<0.05), and delegation (p=0.003<0.05), all significantly influenced organizational performance in the public sector in Kenya. In conclusion, leadership practices generally significantly influenced organizational performance in the public sector. The study recommended good leadership practices in Kenyan public sector through effective HR policies and management structures for better performance.

Keywords: Kenya, Nyeri, Performance, leadership practices, public organizations

Cross Promotions and Brand Loyalty: International Fast-food Brands in Nairobi, Kenya. (Published)

The purpose of the study was to determine the influence of cross promotions on brand loyalty of International Fast-Food brands in Nairobi, Kenya. The study adopted a descriptive survey methodology. The target population for the study encompassed 24 customer relations managers from the 24-registered fast-food brands in Kenya. The study utilized purposive sampling technique in an effort to identify the most suited respondents for the study. A structured questionnaire was utilized as the data collection tool. The questionnaire was divided into two parts containing the demographic data relating the respondent’s background in the first part and the second part covering consumer’s sales promotion techniques on brand loyalty. Questionnaire items were structured with a 5-point Likert scale. Descriptive and Inferential statistics were used in the analysis of the data. Linear regression analysis method was used to assess the associations between cross sales promotions techniques and brand loyalty. The study established cross-promotion registered a positive influence of brand loyalty of international fast-food brands. Cross-promotion strategy was found to account for 70% (β=0.400). The study concluded that cross promotion produces new value-added synergetic product which results into increased frequency of repeat purchase. The study recommends the need to enhance effectiveness of the cross-promotion strategy by identifying deficiencies among the strategy’s activities such as inter-brand online advertisement, new value-added synergetic product, role model advertisement sponsorship of the fast-food brand, social responsibility partnership strategy with global entities such as UNEP, UNICEF motivates customers’ referral.

Keywords: : Fast Food, International, Kenya, Nairobi, brand loyalty, cross promotions

Effects of Communication On Quality Service Delivery in Mission Hospitals in Meru County, Kenya (Published)

Communication is one of the most critical management practices in an organization. It is argued that managers spend over 70 percent of their time communicating. This is because without effective communication, understanding is lost or compromised in the ‘noise’ and mess that is everyday work life. Communication is effective if done well downwards, upwards and sideways from seniors, subordinates and peers respectively and effective feedback given. The means or channels of communication should also be very clear and short to avoid long bureaucracies and excessive routes that compromise the quality of what is being communicated. The health sector in Kenya is highly regulated by both the Government and relevant professional bodies to ensure quality is maintained in training of medical caregivers and in dispensing services. Three major categories of healthcare service providers exist in Kenya – public, private and mission/faith-based organizations with variants in between. Meru County, one of the forty-seven counties in Kenya, is situated almost at the center of the country and has all these major categories of hospitals. Within the mission hospitals in Meru County, besides the government and professional bodies, close regulation is also practiced by faith-based organizations that sponsor the hospitals. The purpose of this study was to establish the nature and effect of communication in providing quality service delivery in the mission hospitals in Meru County, Kenya. The study was formulated as a survey to cover all the eight mission hospitals namely Nkubu, Chaaria, Kiirua, Maua, Mutuati, Tigania, Igoji and Gitoro. Piloting was done at Wamba mission hospital in Isiolo county to ensure validity of study tools. Descriptive study design was used. Major stakeholders in the hospitals were targeted as respondents including CEOs, Human resource and public relations officers and other staff as internal stakeholders while patients, suppliers and neighbours formed external stakeholders. A total of 128 were interviewed as a representative sample. A drop and pick method was used where questionnaires for each hospital were delivered and distributed to the potential respondents. Some respondents like patients and neighbours were assisted by researchers to fill in the questionnaires to avoid bothering them unnecessarily. Data was analyzed quantitatively using SPSS Version 23 and results described using descriptive statistics and presented in tables. The study found that communication had a significant positive affect on quality-of-service delivery (R=0.498, F=6.922, P=0.00) in mission hospitals.  Effective communication and customer care was lauded as a critical consideration in dealing with clients and was emphasized among all levels of staff of mission hospitals to ensure sustainability of quality service delivery. The study recommended further analysis of private and public hospitals on the same parameters for comparison.

Citation: Stephen Laititi Mutunga (2022) Effects of Communication On Quality Service Delivery in Mission Hospitals in Meru County, Kenya, International Journal of Business and Management Review, Vol.10, No.3, pp.39-51

 

Keywords: Kenya, Meru County, Quality, Service delivery, communication, mission hospitals

Effect of Recruitment and Selection Practices on Job Satisfaction of Security Personnel in Public Secondary Schools in Baringo County, Kenya (Published)

Security officers are part of the non-teaching staff in schools and school managers expect them to be productive, dedicated, disciplined and committed to their work. Studies carried out in other countries have revealed that human resource management practices have profound effects on the job satisfaction of security personnel. Therefore, the purpose of this study was to examine the effect of human resource management practices on the job satisfaction of security personnel in public secondary schools in Baringo County, Kenya. This paper presents and discusses the research findings on the effect of recruitment and selection practices on job satisfaction of security personnel in public secondary schools in Baringo County. It targeted 508 security personnel and 169 principals in public secondary schools in Baringo County. Slovin’s formula was used to get the sample of 224 security personnel. Random sampling technique was used to select 10% of the school principals to participate in the study. A questionnaire and an interview guide were used to collect data. These research tools were validated and then tested for reliability. Cronbach Alpha was used to test reliability. The reliability of the instrument was 0.788, which was above the 0.70 threshold of acceptable reliability. Qualitative data was analysed thematically based on the objectives. Quantitative data was collected and analysed by use of both descriptive (means, percentages as well as frequencies) and inferential statistics. The inferential statistics comprised Pearson product moment correlation and multiple linear regression. The results from the research revealed that recruitment and selection practices (β2=0.322, p<0.05) had significant effect on security personnel’s job satisfaction. Therefore, recruitment and selection practices were found to be major predictors of job satisfaction. The researcher concluded that the Recruitment and selection practices were significant determinants of security personnel’s job satisfaction. It is therefore recommended that school Boards of Management should clarify the requisite skills and qualification for security personnel. They should advertise vacancies for security jobs and avoid recruiting personnel only from the school neighbourhood. They should ensure they select the right candidates for the right job.

Keywords: Baringo County, Effect, Job Satisfaction, Kenya, Public Secondary Schools, Recruitment, security personnel, selection practices

The Effect of Relationship Quality on Customer Loyalty: Evidence from Selected Banks in Kenya (Published)

One of the key marketing strategies implored by Banks is to create emotional connectivity with its customers and ultimately build a strong base of loyal clients. Loyalty will enable the banks to woo new customers through referrals whilst retaining existing ones and thus maintain a huge customer base. The banking industry in Kenya has undergone a revolution such that most bank customers are multi banked and therefore, majority of them may not have allegiance to specific banks. Available literature indicates that relationship quality has a direct effect on customer loyalty. In light of this fact, this paper examines the effect of relationship quality on customer loyalty based on a study of selected banks in Kenya. The main objective of the research was to develop and test a model that examines effect of relationship quality on customer loyalty. The study adapted a positivist approach because of the use of quantitative data. The study further utilized explanatory research design. A questionnaire was used to collect data from a sample of 309 bank customers in Nairobi, Mombasa, Nakuru, Kisumu and Eldoret who maintained bank accounts in the Kenya Commercial Bank, Cooperative Bank, NIC Bank, Diamond Trust Bank, African Banking Corporation and K-Rep (renamed Sidian) Bank. Correlation analysis was used to establish the relationship among the variables. Multiple and moderated regression analysis was used to test the hypotheses at α=.05 level of significance. Model effect size was measured using R-square. The results indicated that relationship quality and the dimensions in the study that is, commitment, communication and conflict handling, were significant in affecting customer loyalty, this is consistent with previous studies. Based on the findings it is imperative for the Banking industry to offer more personalised service, be more innovative, enhance the aspect of CRM (Customer Relationship Management) and embrace technology more at all service points as a tool to understand their customer’s holistically and provide timely information on the touch of a button. The study contributes to knowledge and theory through additional research in the field of relationship quality and customer loyalty.

Keywords: Banks’, Customer loyalty, Kenya, Relationship quality

Effect of Communication and Complaints Handling Strategies on Customer Loyalty at Almasi Beverages Limited, Kenya (Published)

Competition in business has gained a whole new dimension due to global consumerism, rapidly changing consumer buying patterns and high technological innovation. Consequently, the market players have switched focus from customer attraction to customer retention than at any other time in the recent past. Communication and complaints handling has become an area of interest to scholars, marketers and organizations operating in various sectors of the economy from which customer satisfaction and loyalty can be secured. Therefore, customer complaint management and effective communication form the decisive test of organization’s customer focus that eventually affects customer satisfaction and loyalty. In spite of the vast literature on the effect of communication and complaint handling strategies on loyalty, exhaustive empirical research has not been directed towards the retail setting in the FMCG industry. The purpose of the study was to determine the effects of communication and complaints-handling strategies on customer loyalty at Almasi Beverages Limited (ABL) in Kenya. The study was guided by the following research questions: What is the effect of communication on customer loyalty at ABL? What is the effect of the complaints-handling strategies on customer loyalty at ABL? A survey research design was employed and the target population was the Coca-Cola retailers who sold through the company-owned Cold Drink Equipment (CDEs) for over a period of three years. The sample size was 369 respondents. Data was collected through the use of structured questionnaires and content validity of the instruments was achieved by incorporating the views and recommendations of marketing experts who assessed the research instruments. Data collected was analysed through quantitative statistics and presented in charts, graphs and frequency tables. The study adopted chi-square to test the hypotheses. The findings established that effective communication and satisfactory complaint-handling strategies are vital in developing and nurturing healthy business relationships that subsequently lead to loyalty. The study concludes that when an effective communication and complaints-handling oriented program is implemented correctly, an organization begins to focus more on managing its customers rather than its products. This enables companies to establish strong performance that lead to long-term profits and increased competitive edge as result of stable partnerships. Evidently, organizations are confronted with complaining customers and despite the precautionary measures taken by an organization to avoid conflict with customers; problems are bound to occur in the relationship. Therefore, the study recommends that companies should focus effective communication and proper complaints handling in order to keep the customers delighted. One implication of this study is that companies like ABL need to have in place proper mechanisms for registering and addressing customer complaints.

Keywords: Almasi beverages, Customer loyalty, Effect, Kenya, Strategies., communication, complaints-handling

The Effect of Non-Financial Motivators on Employee Performance: A Case Study of Baringo County Referral Hospital in Kenya (Published)

The research assessed the effects of non-financial motivators on employee performance, taking a case of Baringo County Referral Hospital. The specific objectives were to: document the non-financial motivators used; determine the role of work environment in employee motivation; assess the effect of effective communication on employee productivity, and determine the role of training on employee performance. The research gaps identified were lack of non-financial motivators in the institution to improve employees’ performance. The study was prompted by the frequent strikes in public hospitals in Kenya. The study adopted a descriptive research design. The sample comprised 50 employees out of the 250 working in different departments within the Hospital. The sample was selected using the Central Limit Theorem. To collect data, questionnaires were used. The collected data was then analysed using study descriptive statistics to with the aid of computer software Statistical Package for Social Science (SPSS). From the findings of the study, there were some non-financial motivators at the hospital, namely communication, training and working environment. Most of the respondents stated that there was inadequate use of non-financial motivators and only a few were of contrary opinion. It was found that the majority of the employees felt there was no free flow of information in the hospital. In conclusion it was found that there is no free flow of information and also there are communication barriers within the institution. Concerning working environment, the health and safety policy is in existence but most of the staff are not aware. The training committee should base their recommendations on training projections and the five day training policy so that it may enhance staff performance. In recommendations the institution should enhance free flow of information. On work environment the employees should sensitized on health and safety policy.  The researchers recognized the functionality of training committee. However, they should have a clear criterion of recommending employees for training to ensure equity achieved upon the staff.

Keywords: Baringo County Referral Hospital, Employee Performance, Kenya, Non-Financial Motivators

The Influence of Capital Adequacy Ratio on the Financial Performance of Second-Tier Commercial Banks in Kenya (Published)

Performance of most mid-tier commercial banks in Kenya has been fluctuating over the past few years. Meanwhile, some of them continue to post impressive results as majority report losses and others merge in order to remain sustainable. This situation points to financial performance affecting the mid-tier commercial banks in Kenya. The government, through the Central Bank of Kenya, introduced prudential regulations aimed at bringing sanity in the banking industry. This move led to closure of Dubai Bank and Imperial Bank while Chase Bank went under statutory management awaiting new investors. From this, an investigation was done on how Central Bank regulations influenced financial performance of second-tier commercial banks in Kenya. Based on the study, this paper explores how capital adequacy ratio influences financial performance of commercial banks in Kenya. The study was purely quantitative research and, therefore, correlation research design and descriptive research designs were used. The study was conducted in 14 second tier commercial banks in Kenya. It collected financial data from 2013 to 2016, considering that the regulations came into effect in 2013 from CBK and commercial banks websites. The data was sourced from Central Bank of Kenya after getting permission and approval from National Commission for Science, Technology and Innovation (NACOSTI). Data collected was analysed using descriptive and inferential statistics. Multiple Regression Analysis was used to test the study research hypothesis. Findings were presented through tabulations and graphical illustrations. Computed correlation showed that capital adequacy ratio had significant strong positive relationship (p<0.05) with financial performance of mid-tier commercial banks. In conclusion, it was found that capital adequacy ratio is among the main predictors of mid-tier commercial banks’ financial performance. It was therefore recommended that CBK needs to regularly monitor commercial banks by ensuring that they publish their quarterly results to the public. The investment regulators in the country such as the Capital Markets Authority (CMA), Kenya Banker Association (KBA) and Central bank of Kenya can use these study findings to understand the bottom line impact of bank regulatory requirements and in understanding banks decision on to its customers.

Keywords: Capital Adequacy Ratio, Commercial Banks, Financial Performance, Influence, Kenya

The Relationship between Board Members’ Knowledge and Organizational Performance of Private Commercial Banks in Nairobi County, Kenya (Published)

Many organizations are striving to enhance their organization performance by creating and commercializing knowledge in a timely and cost-efficient manner. Given the intensifying competitive environment, the critical determinant of organizational success is the effectiveness of board of directors. The purpose of the study was to establish the relationship between board members’ characteristics and organizational performance, drawing empirical lessons from private commercial banks in Nairobi County, Kenya. Based on the study, this paper examines the relationship between board members’ knowledge and organizational performance. The study employed a correlation research design. It targeted 207 senior management staff drawn from 28 private commercial banks within Nairobi County. Stratified and random sampling technique was used to select a sample of 103 senior management staff, representing 50% of the target population. Primary data was collected using structured questionnaire while secondary data was collected using documentary guided. Content validity index was used to test validity of research instruments whilst Cronbach alpha method was applied to test reliability of the research instruments. Correlation analysis was used to determine the nature of the relationship between variables. The study found no significant correlation between board members’ knowledge and organization performance. The study therefore adds new knowledge to the existing body of literature since the extant literature suggests that board members’ knowledge has a positive influence on organization performance. There is however need for further studies on the same to establish if the study findings hold.

Keywords: Influence Board Members, Kenya, Knowledge, Nairobi County, Organizational Performance, Private Commercial Banks

Influence of Organizational Arrangement and System Complexity on Adoption of Integrated Financial Management Information System by Uasin Gishu County Government, Kenya (Published)

Over the past decade, developing many countries has increasingly embarked on efforts to computerize their government operations, beginning especially with the public financial management (PFM). Among the most common systems implemented is the integrated financial management information system (IFMIS). The system computerizes and automates key aspects of budget execution and accounting operations across institutions of government. The study investigated factors affecting the implementation of IFMIS in Uasin Gishu County Government. Based on the study, this paper explores the effect of organizational arrangement and system complexity on successful implementation of IFMIS in Uasin Gishu County. The study employed a correlation research design. Stratified random sampling method was used to select 170 respondents from a target population of 566 County’s employees who used IFMIS. Data was collected by means of a questionnaire and was analysed using descriptive and inferential statistics. The findings of this study revealed that organization arrangement (β=.51, P-.000) had a significant effect on implementation of IFMIS in Uasin Gishu County. However, system complexity (β=.01, P-.000) had no significance effect on implementation of IFMIS. Therefore, the study recommended that the Uasin Gishu County government should embrace change of management since it enhances many positive benefits to an employee’s life, including a better greater job satisfaction, more autonomy, increased energy, creativity, motivation and morale. As work becomes more sophisticated and more technology-dependent, the importance of virtual teams will increase rapidly.

Keywords: Adoption, IFMIS, Integrated Financial Management Information System, Kenya, Organizational Arrangement, System Complexity, Uasin Gishu