Influence of human capital development on staff performance of Commercial Banks in Kenya: a survey of Commercial Banks in Ongata Rongai Town

Abstract

Human capital development is one of the most important requirements to ensure the sustenance and improvement of an economy either at macro or micro level. Human capital development is the continuous process from childhood to old age. It is also any society or enterprise that wishes to survive under the complex challenges of the dynamic world. The study is done to find out the influence of human capital development on staff performance of commercial banks in Ongata Rongai Town, the objectives of the study were to determine effect of innovation ability, learning capacity, and work experience on staff performance. The study employed a descriptive research design to determine the direction and magnitude of the relationship between the studied variables. The population of the study was randomly selected from each of the managerial level and lower level of different commercial banks in Ongata Rongai town for the purpose of administering questionnaire to an aggregated population of 200 staff. The study used a sampling frame of branch and operational managers of the banks within Ongata Rongai Town where a mixture of simple/stratified random sampling method was used to select a sample size. A sample size was obtained with the help of Taro Yamane formula, to be 133. Data was collected by use of questionnaire containing four sections namely General information, Innovation ability, Learning capacity and Work experience. The questionnaires were distributed by the research assistant to the selected respondents. Data was analyzed using a Statistical Package for Social Sciences (SPSS). Descriptive statistics was used to analyze data, summarize, and present the major characteristics of the main variable as well as the relationship among the variables. Completeness, reliability, and consistency of the collected data was checked through the analysis of reliability and internal consistency, corded, and analyzed. Results were presented in the form Frequency distribution tables and figures from which conclusions was obtained in relation to the objective of the study. Descriptive techniques that were used include, Means and Standard Deviation. The findings of the study indicated that there is a relationship between human capital development and performance of commercial banks in Ongata Rongai town. This was most apparently reflected in the extent to which the bank was promoting staff development through further education, trainings, and workshops. The study also disclosed that investing in human capital has long term and sustainable outcomes such as enhancing customers trust due to improvement of service delivery. The study recommends that there is a need of promoting in-service training and further education related to career advancement particularly among employees working with financial institutions. These training led to optimization of human labor which ultimately translates to increased organization production performance. However, similar research to be carried out in other financial organizations such as insurance companies and the results be compared to establish whether there is consistency on learning organizations and organizational performance.