FACTORS AFFECTING EMPLOYEE RELATIONS IN THE BANKING

SECTOR: A CASE STUDY OF STANDARD CHARTERED BANK (SCB)

HEAD OFFICE

BY

LENA KIAMBI

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT FOR THE AWARD OF DIPLOMA IN HUMAN
RESOURCE MANAGEMENT TO THE KENYA INSTITUTE OF
MANAGEMENT

JULY 2020
 DECLARATION

Declaration by Student

This research is my original work and has not been presented to any other
examination body. No part of this research should be reproduced without my consent
or that of the Kenya Institute of Management.

Name……………………………..Signature………………………Date ……………
KIM/HRM/56044/18

Declaration by Supervisor

This research proposal has been submitted with my approval as the Kenya Institute of
Management Supervisor
Name……………………………..Signature………………………Date ……………
Lecturer Supervising

For and on behalf of The Kenya Institute of Management

Name……………………………..Signature………………………Date ……………
Branch Manager, Nairobi

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 DEDICATION
I dedicate this research proposal is to my mum Elizabeth Kiambi for her unending
support both financially and morally.

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 ACKNOWLEDGEMENT
I wish to acknowledge the following for their assistance and support in ensuring that
this proposal is complete and without whom I could not be able to complete this
paper. My supervisor Madam Sophia Ndung’u for her timely professional guidance
and support throughout the preparation of this proposal. I would also wish to
acknowledge the immense wealth of knowledge and research facilities available at the
Kenya Institute of Management. Am grateful to the management and staff of Standard
Chartered Bank - Nairobi Headquarters for allowing me to conduct this research in
the organization.

ABSTRACT
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The purpose of this research proposal will be to determine factors that affect
employee relations at SCB headquarters Nairobi Kenya. The specific objectives of the
study will be to establish the effect of leadership style, employee compensation,
training, trade unions and finally organizational culture on employee relations at
banking sector. The data will of significance to the management of standard chartered
management, the employees and other researchers.

The researcher will adopt descriptive research design in collecting data from the
respondents. The researcher will target the staff of Standard Chartered Bank limited
which has employed 154 employees and sample size of 77 respondents which is 50%
of the target population. The sampling design adopted will be stratified random
sampling since it gives an equal chance to the all respondents while a questionnaire
will be used as data collection tool. The questionnaire will contain semi structured and
structured questions which will be administered and used to collect data. Quantitative
and qualitative analysis will be used to analyze the data. Data will be presented by use
of table, charts and bar graph.

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 TABLE OF CONTENTS
DEDICATION...............................................................................................................ii
ACKNOWLEDGEMENT............................................................................................iv
ABSTRACT...................................................................................................................v
LIST OF TABLES.....................................................................................................viii
LIST OF FIGURES......................................................................................................ix
LIST OF ABBREVIATIONS........................................................................................x
OPERATIONAL DEFINITION OF TERMS..............................................................xi

CHAPTER ONE
INTRODUCTION OF THE STUDY
1.1 Introduction............................................................................................................1
1.2 Background of the Study.......................................................................................1
1.3 Statement of the Problem.......................................................................................6
1.4 Objectives of the Study..........................................................................................7
1.5 Research Questions................................................................................................7
1.6 Significance of the Study.......................................................................................8
1.7 Limitations of the Study.........................................................................................9
1.8 Scope of the Study.................................................................................................9

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction..........................................................................................................10
2.2 Review of Theoretical Literature.........................................................................10
2.3 Review of Critical Literature...............................................................................22
2.4 Summary and Gaps to Be Filled By the Study....................................................23
2.5 Conceptual Framework........................................................................................25

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 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction..........................................................................................................28
3.2 Research Design...................................................................................................28
3.3 Target Population.................................................................................................28
3.4 Sample Design.....................................................................................................29
3.5 Data Collection Methods and Instruments...........................................................30
3.6 Data Analysis Methods........................................................................................31

REFERENCES.............................................................................................……..........
APPENDICES
Appendix I- Questionnaires
Appendix II - Budget
Appendix III - Work Plan

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LIST OF TABLES

8
LIST OF FIGURES

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 LIST OF ABBREVIATIONS
AFL-CIO American Federation of Labour and Congress of Industrial
Organizations
CBK Central Bank of Kenya
COTU Central Organization of Trade Unions
CWB Counterproductive work behaviour
DBM Diploma in Business Management
DHRM Diploma in Human Resource Management
EI Employee Involvement
EU European Union
HR Human Resource
HRM Human Resource Management
ITUC International Trade Union Confederation
OB Organizational Behavior
SCB Standard Chartered Bank
UK United Kingdom

OPERATIONAL DEFINITION OF TERMS

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Employee Compensation This is concerned with formulation and implementation
of strategy and policies that aim to reward people fairly,
equitable and consistently in accordance with their
value to the organization. Employee compensation top
develop and implement achievement of the organization
business goals when the management employee
compensation their employees fairly and equitable their
performance will be affected and the organizations too.

Leadership style Organization and coordination of the activities of

people or groups of people in order to achieve defined
objectives. It can also be used to refer to directors and
managers who have the power and responsibility to
make decisions and oversee an enterprise.

Organizational Culture Refers to the cumulative deposit of knowledge,

experience, beliefs, values, attitudes, meanings,
hierarchies, religion, notions of time, roles, spatial
relations, concepts of the universe, and material objects
and possessions acquired by a group of people in the
course of generations through individual and group
striving.

Trade Unions It is an association, combination or organization of

employee who band together to secure favorable
employee compensation, improved working conditions
and better work hours and to resolve grievances against
employers.

Employee Training Training aims at equipping employees to perform

competitively in the present and future jobs so as to
increase their efficiency and effectiveness of the
organization and their own job satisfaction.

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 CHAPTER ONE
INTRODUCTION OF THE STUDY
1.1 Introduction
This chapter presents the background of the study, the profile of Standard Chartered
Bank, statement of the problem, research objectives, research questions, significance
of the study, the study limitations and the scope of the study.

1.2 Background of the Study

Other than company-customer relationships the other most important relationship in
any organization is employee relations. This relationship has a critical impact on
performance and performance management and talent retention strategies should be
applied in order to enhance effective and efficient production within and outside the
organization. The Exit-interview research (Leigh, 2005) shows the number one reason
employees leave their jobs is their managers. It is therefore paramount to study the
relationship between managers and employees and establish the main factors that
influence such ties. Other reasons that may cause employee turnover are:
compensation, growth, meaningful work, supervisor skills, workload balance,
fairness, and recognition to name a few. General organizational behavior is very
complex and consists of very many inputs and dimensions. It can however be
categorized into three wide categories i.e.: The cognitive framework, Behaviorist
framework and social cognitive framework.

According to Edward (2008) cognitive theory this framework, cognition precedes

behavior and constitutes input into the persons thinking, perception, problem solving,
and information processing. Therefore, behavior is directed towards a goal. Form the
work of Ian Pavlov and John Watson (who thought that it will be more important to
deal with observable behavior, than the elusive mind which will be more complex)
human behavior is dependent on stimuli. I.e. a stimulus elicits a response. Operant
Conditioning is one of the most successful theories on human behavior. BF, Skinner
found out through his operant conditioning experiment, that the consequences of a
response could better explain most behavior.

Managers worldwide apply these theories of how human beings learn behavior to
influence employees to adhere to organizational culture. Furthermore, due to
globalization, managers are required to modify their managerial practices in order to
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interact well with employees for effective achievement of organizational goals.
Variables such as leadership style, organizational culture, employee compensation,
training and trade unions have become so dynamic in the world’s banking industry
and therefore call for managers to streamline as per these developments. In Africa for
instance, the banking sector has moved from being a theoretical concept and
evolutional into employing and empowering many people. Similarly, employers are
always employing employees from various diverse and stern cultures and it’s upon
these that managers should also conform.

Employee relations examine the various aspects on how people at work inter-relate.
Employee relations, therefore, is the interaction between employees themselves and
also with their employers. Such interaction can either be formal or informal. It
encompasses all areas of management that may include labor relations, employee
involvement and participation, employee communication and industrial relations
Okombe (1998) says that good employer-employee relations is essential to the
organization because it inspires employees to work better and produce more results.
The application of human relations in managing human resource is critical in today’s
business competitive environment.

According to Donally & Ivancevich (2001) factors such as job satisfaction is achieved
when there is a great working relationship between labour and management (Boyle,
2006). Yes, organizations can have competent, qualified and motivated employees but
if there is no peace and harmony at the workplace their performance will be in danger.
Because the relationship between the employer and the employee is very crucial,
employers need to pay attention to this relationship if they want their businesses to
grow and succeed and that firms should actively seek good employee relations
whether or not they are bound by union contracts. Organizations need employees who
can peacefully work together towards the achievement of the set objectives and goals,
and this can only be achieved if there is a good employee relations in the organization
as the objectives of employee relationship is to achieve harmonious employee
relations and minimize conflict practices in employment. Employee relationship
management has many documented positive effect in organizations such as
strengthening corporate communication and culture, fostering about company

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products, services and customer providing real-time access to company training,
targeting information to an employee based on their needs (Wargborn, 2008).

According to Torrington (1998), the relationship between employees and management

is a framework of organizational justice consisting of organizational culture and
management styles as well as rules and procedural sequence for grievance and
conflict management. Gennard (2002) stated that employee relations are a study of the
rules, regulations and agreements by which employees are managed both as
individuals and as a collective group. The author explained that employee relations
suggest a wider employment canvas being covered with equal importance attached to
non-union employment arrangements and white collar jobs. The author observed that
employee relations is to manage the relationship between employer and employees
with the ultimate objectivity of achieving the optimum level of productivity in terms
of goods and services, employee motivation taking preventive measures to resolve
problems that adversely affect the working environment. Walton (1985) narrated that
the unitary viewpoint of employee relations is the belief that management and
employees share the same concerns and it is therefore in both their interests to
cooperate.

According to Koontz (2000) commented that effective employee relationship

management requires cooperation between managers representatives and employees,
that good relationship between employer and employee do not just happen but they
are the result of a strategy and activities that employee relations managers design to
improve communication between employees and management. He said that employee
relations involve the communication and relationships that in the end contribute to
satisfactory productivity, job satisfaction, motivation and morale of the employees.
The author highlighted that the right of employer on employer and employee
relationship is to control work performance, integrate employee in the organization’s
structure and management system and create a mutual trust environment, confidence
and supply of enough and reasonable work while employees obey lawful and
reasonable orders, maintain fidelity and work with due diligence and care (Fayol,
2002).

Tsui & O’Reilly (2005) argued that for organizational members to perceive employee
relations management practices positively, the organizational leadership needs to put
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emphasis on gaining support from employees, having mutual trust and confidence
building, allowing freedom of association, improving career and salary tracks,
retirement benefits, and retaining measures. Organizations should strive to satisfy
their employees with good pay, good supervision and good stimulating work. They
inferred that best employee relationship management practices incorporate labor and
employment laws, resourcefulness and human resource expertise in developing
practices that improve working relationships.

Social identity theory suggests that people’s self- concepts consist in part of the set of
social groups to which they belong (Tyler, et al, 1999). In an organization setting,
people desire to enhance the status of the groups with which they identify in order to
enhance their self-esteem. Hence a salient relationship between the management and
the employees results in positive bias in interpersonal perceptions and behavior. Both
the trait and social identification perspectives imply that employees will accept
corrective feedback more readily from superiors who share important demographic
characteristics. The trait perspective suggests that demographic similarities lead to
fewer misunderstandings and more effective communication, which is likely to reduce
employees’ resistance to negative feedback. The social identification perspective
implies that employees will accept performance evaluations more readily from a
similar than a dissimilar supervisor because they will be more likely to make positive
attributions about the supervisor‘s behavior and will evaluate the supervisor’s
behavior more positively (French and Raven, 2008).

1.2.1 Profile of Standard Chartered Bank of Kenya

Standard Chartered bank is one of the 43 licensed commercial banks in Kenya,
according to the Central Bank of Kenya statistics. Standard Chartered Kenya, whose
official name is Standard Chartered Bank (Kenya) Limited, but is sometimes referred
to as Stan chart Kenya, is a commercial bank in Kenya. It is a subsidiary of the British
multinational financial conglomerate headquartered in London United Kingdom,
known as Standard Chartered. SCB Kenya is one of the banks licensed by the Central
Bank of Kenya, the national banking regulator. Standard Chartered Kenya is a large
financial services provider in Kenya. According to Kenyan sources, the bank will be
the 5th largest commercial bank in the country, by assets, as of December 2011. At
that time, its total asset valuation will be in excess of US$2 billion (KES: 164 billion).
According to the website of the Central Bank of Kenya, the bank received its
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commercial banking license in 1910. In January 1911, it opened its first two branches,
one in the national capital, Nairobi, and another in the port city of Mombasa. As of
April 2012, the bank has a network of 34 branches, 90 Automated Teller Machines
(ATMs) and employs 154 people. Commercial banks in Kenya play a major role in
Kenya. They contribute to economic growth of the country by making funds available
for investors to borrow as well as financial deepening in the country.

Standard Chartered Bank Kenya has achieved a number of firsts in the Market: first
bank in Kenya to be awarded the ISO 9002 certification in technology systems, first
ATM Automated Banking Centre in Kenya and for 24-hour convenience, first to
introduce unsecured Personal Loan and first to introduce Priority Banking facilities in
Kenya for more affluent customers amongst others. SCB Business model is driven by
a refreshed strategy, which is highly focused on the three clients segments (Retail
Banking, Commercial Banking and Corporate & Institutional Banking) and supported
by five product groups. The vision of the bank is to be a Catalyst for change by
playing a key role in stimulating economic and social development through the
services provided and by being a force for good. The mission of the bank is to create
exceptional value for our clients, investors and staff; through market leadership in
providing innovative Shariah compliant products and solutions and by adopting and
living our core values. The core values of the bank are being courageous, being
responsive, being international, creativity and being a trustworthy bank. These core
values provide the bank with a framework with which to assess and monitor the
behavior of its employees and the ability to communicate its distinctive culture to a
broader range of stakeholders, prospective employees and customers.

Figure 1.1 Standard Chartered Kenya Organizational Chart

Management Director

Chief Operating
Officer
 Head of Head of General
Service Legal Manager.
Delivery Services Business
Development

Head of HR Head of
and Treasury Manager,
Administration Risk and
Compliance

Head of Head of
Credit Marketing
Head of
Finance
Head of and
Internal Head of
Collections Strategy
Audit

Source: Standard Chartered Kenya (2020)

1.3 Statement of the Problem

Lack of goal clarity often is misidentified as an individual performance issue. This
leads to blame, conflict and increased turnover by frustrated employees who are
working hard but not getting the results the organization expects. Often, organizations
will address this through personnel changes, but because they are addressing a
symptom and not the cause, the problems will inevitably resurface. Similarly, when
employees lack knowledge, they also will use resources inefficiently. Mistakes will be
common, and quality issues will be prevalent. When necessary resources are
unavailable, knowledgeable employees will become discouraged, which can lead to
frustration and, subsequently, high turnover

Finally, miscommunication (poor interaction) between the managers and the

employees causes poor information sharing and makes it difficult to get the right

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people involved at the right time to make the best decisions. Consequently, people
attempt problem solving and decision making in isolation or with the wrong people.
This can result in poor decision making, prolonged decision making or, even worse,
no decision making at all.

In Kenya, banking problems have persisted since independence in 1963 culminating

in major bank failures. As at 2002, there were a total of 37 failed banks and the failure
is mostly associated with weak management-employee relationships among
inadequately equipping employees with expertise and necessary skills required. This
research seeks to observe such issues and more that are connected with employee-
management relationships.

1.4 Objectives of the Study

1.4.1 General Objective
The main objective of this study will be to establish factors that affect employee
relations at SCB headquarters Nairobi Kenya.

1.4.2 Specific Objectives

i. To analyze effects of leadership style on employee relations in the banking
sector.
ii. To investigate how employee compensation, affect employee relations in the
banking sector.
iii. To identify the ways in which training affects employee relations in the
banking sector
iv. To analyze how trade unions impacts employee relations in the banking sector.
v. To find out how organizational culture affects employee relations in the
banking sector.

1.5 Research Questions

i. What role does leadership style play in influencing employee relations in
banking sector?
ii. To what extent does employee compensation affect employee relations in
banking sector?
iii. What are the ways in which training influences employee relations in banking
sector?

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 iv. In which ways do trade unions affect employee relations in banking sector?
v. How does organizational culture affect employee relations in banking sector?

1.6 Significance of the Study

1.6.1 Management of Standard Chartered Bank
Understanding what employees from different backgrounds, age and gender expect
from their employers can provide key information for designing effective
communication and reward systems that can retain employees with varied
demographic differences. This research project will be very useful and efficient to
managers of standard chartered bank, Furthermore, the management will learn the
benefits of effective leadership style, involvement of trade unions , employee
compensation and employee training on improvement of employee relations in the
organization.

1.6.2 Employees of Standard Chartered Bank

Similarly, current and prospective employees will have their share of benefits from
this research paper. They can face issues they are familiar with and identify ways in
which can cope with them. Employees will be able to find out the critical issues that
affect them in their organization and other similar organizations. This will in turn
enable them to know to which extent they can pull the variables.

1.6.3 Other Researchers

Finally, other researchers will benefit from this research paper since it will assist them
to conduct more in depth research on this topic or to use this research paper as a
reference. Since a researcher requires a basis for their research, it will be relevant for
them to read through this research and analyze the factors that affect the employee
relations.

1.7 Limitations of the Study

1.7.1 Lack of Cooperation
The researcher will be unable to collect all the required information since some of the
respondents will be uncooperative to the extent that they will refuse to offer the
information and therefore some questions will not be answered. Some of them will
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fear victimization yet others will think that their time will be wasted thus affecting the
accuracy of the results. The researcher will give them more time to fill the
questionnaire. The researcher later collects the questionnaire and use fully filled ones
for the analysis.

1.7.2 Confidentiality
Some respondents will fear for their privacy. The confidentiality of the questionnaires
will be guaranteed; thus respondents should not be worried that the information will
be leaked. This will encourage them to respond honestly. The researcher will also
assure the respondents that the data collected will be used for academic purposes only.

1.7.3 Fear of Victimization

Some of the respondents may retreat from responding to the research questions since
they may fear that information they provide can put them at risk of losing their jobs
for exposing them on goings in the provide and sought authority from the
management to undertake in the organization. To overcome the problem, the identity
of the respondents who will participate will be kept anonymous.

1.8 Scope of the Study

The study will aim at investigating factors affecting employee relations at Standard
Charted Bank Kenya headquarters Nairobi. The study will be confined to Standard
Chartered Bank Head office which is located in Westlands Nairobi Kenya. The target
population will be 154 employees from which a sample of 77 respondents will be
drawn from top, middle and support staff representing 50% of the target population.
The study will be conducted in the months of April to July 2020.

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter focuses on the review of literature on methods used by firms in
improving employee relationships in the banking sector, a review of variables such as
leadership style, employee compensation, training, trade unions and organizational
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culture, critical review, summary and gaps to be filled including the conceptual
framework related to the study. An in depths look at some of the factors that have
been highlighted as those that affect the relationship between the management and the
employees

2.2. Review of Theoretical Literature

Smart companies know if managers are trained and charged with responsibility for the
success of their reports, departmental and organizational performance will take care of
itself. Companies that do not drive home the importance of this relationship to
frontline managers, or to provide the necessary training, eventually pay the price via
the loss of good employees and decreases in performance as a result of employee
dissatisfaction (Talent management, 2012).

2.2.1 Leadership Style

Leadership is a wide concept that has bias on influence. According to Bennis (2000)
leadership is being able to create the kind of meaning for people, the values that make
sense to them; where there is enough trust in the system …he continues to explain that
leadership is not about ranks and tittles but rather about responsibility. Leadership is
therefore not the act of doing things for people but the act of doing things with people
(employees). In management jobs, it is the job-holders’ capacity to obtain the
commitment of people to objectives of the organization; hence there should be no
compromise on quality of the kind of leadership being reinforced. Leadership is a
concept that has been in existence since time immemorial only that it has gained
defined traits in recent years.

There are several leadership theories that determine leadership styles ,according to
Cone, (2006) Trait theory explains that leadership is based on the physical and mental
characteristics of the leader, situation theory describes a leader as the one who stands
out in a given situation, functional theory argues that leadership is a shared
responsibility, while the contingency theory on the other hand argues that leadership
is a combination of traits and the tasks to be performed and finally the group
dynamics theory argues that a leader will arise out of the compatibility and the task.

Leadership styles (Cone, 1996) are also derived from the theories of leadership and
they include: homothetic leadership which is associated with scientific management it
focuses on efficiency and is task oriented with little regard to employees. The second
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leadership style is idiographic leadership style which is based on human relations this
style considers the needs and the personalities of the employees. The third leadership
style is the transactional style which combines both the idiographic and the
homothetic styles; this is achieved through matching the tasks of the organization and
the characteristics of the individuals. Other leadership styles are autocratic,
democratic, laissez faire and charismatic.

Managers today must lead under new and difficult conditions. The time frames for
getting things accomplished are becoming shorter; leaders are expected to get things
done on the first short with second chances being few and far between; the problems
to be resolved through leadership are complex, ambiguous and multi-dimensional;
leaders are expected to be long-term oriented even while meeting demands for short-
term performance results. Good leaders should be able to apply relevant leadership
style depending with a given situation. A leader that chooses the laissez faire (free
rule) style might not be able to achieve most organizational goals, for example.

In our study, a leader should represent a figure who can positively influence others
and who has managerial authority; a figure that influences a group to achieve goals
both personal and organizational. According to Robbins (2006), Leading is one of the
four management functions, ideally, all managers should be leaders. Leadership is the
moral and intellectual ability to visualize and work for what is best for the company
and its employees. To maintain a good rapport between employer and employee, a
leader should create team spirit around and near him. Good leadership involves the
effective process of delegation and empowerment and should not be limited to leader
behavior resulting in subordinate behavior. It should be a dynamic process.

Leadership is the ability to get men (and women) to do what they don’t like to do and
like what they don’t want to do’ should echo in every organizations management
notion. Stoner (2009) defined managerial leadership as the process of directing and
influencing the task related activities of group members. There are four important
implications of our definition. First, leadership involves other people-employees or
followers. By their willingness to accept directions from the leader, group members
help define the leader’s status and make the leadership process possible. Without
people to lead all the leadership qualities of a manager would be irrelevant. Second,
leadership involves an unequal distribution of power between leaders and group

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members. Group members can and do shape group activities in a number of ways.
Still, the leader will usually have more power.

A third aspect of leadership is the ability to use different forms of power to influence
followers’ behavior in a number of ways. Indeed, leaders have influenced soldiers to
kill and leaders have influenced employees to make personal sacrifices for the good of
the company. The fourth aspect of leadership combines the first three and
acknowledges that leadership is about values. With such leadership traits then the
quality of employer-employee relationship is not compromised (Harry, 2006).
Depending with the leadership style chosen by the manager, the process of listening to
employees and making decisions within the shortest time possible will be determined.
The leadership style should be in such a way that is a win-win situation for both
parties.

2.2.2 Employee Compensation

Employees’ behavior, motivation, and job satisfaction can be intrinsically or
extrinsically motivated. The wage paid to an employee goes a long way in identifying
the employee with the organization in which they are working in. Chapman (2010)
states that employee compensation, and therefore employee compensation, refers to
all forms of payments or direct rewarding going to employees and arising from their
employment.

Rajang (2001) also explains that more often than not, most organizations need to
adapt to modern change in competitive business environment because they fail to
satisfy the needs of the diverse group of employees within the company which makes
the employees not feel satisfied resulting grievance. It is very advisable for business
to deal with employees’ grievances, mostly pay, to consider how the reward system
will be. Firms should do a thorough research on review of rewards as a motivator
during the employee management error. This helps to stop labor turnover as a result
of satisfied employees or employee’s grievances not addressed. Employee
compensation and remuneration in the workplace are becoming increasingly
important because the corporate world is demanding higher level of performance from
employees. Therefore, total quality management should incorporate continuous
improvement and employee empowerment.

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Priscilla (2011) stated that very few organizations regard the needs of the employees
during the operational processes and as an outcome to that they face high resistance
due to dissatisfaction of employees. The body in an organization is the employees.
Without employees, no organization can survive. Satisfaction of employees in a firm
is what brings about growth, productivity and competitive edge. Firms should
critically examine themselves the level of reward systems and address any grievances
that are raised by employees. It should find a show case of improvement of employees
by pilot implementation of a grievance management, and then it should encourage the
employees on successful implementation of process by rewarding the organization
movers who are the employees.

In the dynamic environment the wage review has become increasingly used to the
organizations meaning new changes in wage system. With a more global market,
more staff change, the need for more complex wage strategies and the desire to drive
up employee’s engagement, reward administration is becoming more complex. Every
company needs a strategic wage system during business operations that addresses
compensation, benefits, recognition and appreciation. The element that are addressed
aren’t properly aligned with the company’s other corporate strategies (Lukeman,
2009).

A winning system during a business’ life in order to increase employee’s morale

should be recognition and wage policies on the employee’s activities, performance
and behavior. An effective reward system coupled with communication and learning
is one of the most critical levels of the grievance handling process. However, even if
the problem message is well communicated and well received and people are given an
opportunity to learn so that they can behave differently in the new environment, it
doesn’t follow if anyone s is going to change their behavior unless its backed up by
reward system (Markey, 2000). Employers wage systems can help much during an
organization transformation. It can help employees achieve their organizational goals
as set during time of work; employers must first identify each job objective clearly
before developing tangible or intangible reward systems. Important goal such as
employee retention and job satisfaction, performance improvement and employee
motivation can be achieved by identifying the desire outcome of employee reward
system programs.

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Company’s executives and managers that align their organizational objectives with
employee’s wage system are likely to experience repeated instances of improved
employee performance. Spontaneous remuneration acknowledges exceptional
performance when it occurs. These informal rewards and various forms of recognition
require minimal planning and effort. According to Wood, (2009) established that
better grievance management towards wage system should be based on equity theory
to enable everybody in the organization to be satisfied. Equity theory is an important
theory of satisfaction and motivation that is fundamental basis of the design of most
modern compensation systems. It is based on the premise that employees evaluate the
level of their pay by comparing their contributing (inputs) and rewards(outcomes) to
the contribution and rewards of comparison others or referents.

Wage can conceivably consist of pay only, there are also other components such as:
fringe benefits, status, opportunities for advancement, job security or anything else
that the employees’ values. Equity theory explains how individuals seek to achieve a
balance between the ratio of their contribution to the wage to the ratio of contribution
and wage of others. Equity exists from perspective of individuals, when this ration
balance is achieved. Equity is an individual perception of his or her contributing and
rewards of the reference that is important in determining whether the individual
perceives equity or in equity. An equitable pay structure is one that is designed in
such way that the majority of employees perceive their pay as equitable during
working period. The basis for all effective compensation systems is an equitable ay
structure (Tom, 2005).

2.2.3 Employee Training

The level of training and education of an employee helps in determining their job
satisfaction. According to Burdria (2011) of the University of Madeira and his
research team studied almost 5,000 employees and discovered that better-educated
workers were 2 percentage points more likely than their peers to be dissatisfied at
work.

At a time in which businesses are fighting to keep costs down, companies may opt to
hire less educated employees at a lower salary, scale back on training or eliminate
company programs designed to financially assist the higher education pursuits of
employees. In the short run, this strategy may reduce expenses. In the long term,
however, employers who choose instead to invest in hiring educated employees and
14
providing their staff continuous training opportunities are likely experience a greater
return on their investment and higher profitability as compared to companies that opt
for a less educated staff (John, 1996).

When managers hire a trained employee, they receive an individual with a pre-
existing skill set. In the process of acquiring an education or training, individuals
develop their capacity to observe, analyze and act on information. In translating this
ability, the workplace, trained employees exhibit a greater aptitude for handling large,
complex projects in a more productive and efficient manner as compared to their less-
educated workers. In addition to the bonus of a pre-existing skill set, educated
employees generally exhibit higher levels of motivation, which in turn leads to higher
quality output and fewer errors (Maynard, 2019).

As new international client markets emerge, the need for a workforce that understands
the culture, values, and language of these global regions will be essential to business
growth. Trained employees are more likely to understand foreign languages and
cultures through either having studied or lived in an international location. Through
hiring trained employees and offering continuous employee training, organizations
enhance client services. Furthermore, increasing employee awareness on company
policies, products and developments enables employees to be more knowledgeable on
company values and increases their ability to anticipate and predict client needs
(Keynes, 2009).

Beyond the value that trained employees add to client relationships, well-informed,
knowledgeable workers enhance company leadership. Well-trained individuals are
more goal oriented, delivering better work performance than less-educated
employees. Moreover, companies can benefit from the dynamic perspective and
innovative thinking of high performers. Ensuring education through continuous
company training is equally as important as hiring workers with pre-existing skill sets.
In a recent survey conducted Spherion Atlantic Enterprises LLC., a staffing and
employment-services firm, 61 percent of respondents who received training or
mentoring said they were very likely to remain with their current employer for the
next 5 years or more (Smith’s, 2003).

Ongoing training promotes the employees' understanding of company values and

processes. Employee empowerment through education will lead to greater employee

15
engagement and will encourage employees to take leadership within the company.
Training bring additional resources to individuals and enables them to change as
affected be it politically, socially, economically or adaptability to law.

2.2.4 Trade Unions

Trade unions, originating in Europe, became popular in many countries during the
Industrial Revolution, when the lack of skill necessary to perform most jobs shifted
employment bargaining power almost completely to the employers' side, causing
many workers to be mistreated and underpaid. Trade unions may be composed of
individual workers, professionals, past workers, students, apprentices and/or the
unemployed.

In Adam (2006) we rarely hear, it has been said, of the combination of masters,
though frequently of those of workmen. But whoever imagines, upon this account that
masters rarely combine, is as ignorant of the world as of the subject. Masters are
always and everywhere in a sort of tacit, but constant and uniform combination, not to
raise the employee compensation of labor above their actual rate. When workers
combine, masters ... never cease to call aloud for the assistance of the civil magistrate,
and the rigorous execution of those laws which have been enacted with so much
severity against the combination of servants, laborers, and journeymen

As Smith (2003) noted, unions were illegal for many years in most countries,
although Smith argued that it should remain illegal to fix employee compensation or
prices by employees or employers. There were severe penalties for attempting to
organize unions, up to and including execution. Despite this, unions were formed and
began to acquire political power, eventually resulting in a body of labor law that not
only legalized organizing efforts, but codified the relationship between employers and
those employees organized into unions. Even after the legitimization of trade unions
there will be opposition, as the case of the Tolpuddle Martyrs show.

As explained earlier Trade unions have a long history in Europe, according to Webb,
(2003) today, the highest rates of union membership are in the Scandinavian
countries. In 2010, the percentage of workers belonging to a union (or total labor
union "density") will be 68.3% in Sweden and 54.8% in Norway, while it will be
34.9% in Ireland and 18.4% in Germany.

16
Trade unions however vary from country to country. “In the Continental European
System of labor market regulation, the government plays an important role as there is
a strong legislative core of employee rights, which provides the basis for agreements
as well as a framework for discord between unions on one side and employers or
employers’ associations on the other (Sidney, 2001). This model will be said to be
found in EU core countries such as Belgium, France, Germany, the Netherlands and
Italy, and it is also mirrored and emulated to some extent in the institutions of the EU,
due to the relative weight that these countries had in the EU until the EU expansion by
the inclusion of 10 new Eastern European member states in 2004.

In the Anglo-Saxon System of labor market regulation, the government’s legislative

role is much more limited, which allows for more issues to be decided between
employers and employees and any union and/or employers’ associations which might
represent these parties in the decision-making process (WeAb,2006). However, in
these countries, collective agreements are not widespread; only a few businesses and a
few sectors of the economy have a strong tradition of finding collective solutions in
labor relations. Ireland and the UK belong to this category, and in contrast to the EU
core countries above, these countries first joined the EU in 1973.

In the Nordic System of labor market regulation, the government’s legislative role is
limited in the same way as in the Anglo-Saxon system. However, in contrast to the
countries in the Anglo-Saxon system category, this is a much more widespread
network of collective agreements, which covers most industries and most firms. This
model will be said to encompass Denmark, Finland, Norway and Sweden. Here,
Denmark joined the EU in 1973, whereas Finland and Sweden joined in 1995.

According Bernstein, Aaron (2004) the largest trade union federation in the world is
the Brussels-based International Trade Union Confederation (ITUC), which has
approximately 309, affiliated organizations in 156 countries and territories, with a
combined membership of 166 million. The ITUC is a federation of national trade
union centers, such as the AFL-CIO in the United States and the Trades Union
Congress in the United Kingdom. Other global trade union organizations include the
World Federation of Trade Unions.

National and regional trade unions organizing in specific industry sectors or

occupational groups also form global union federations, such as Union Network

17
International, the International Transport Workers Federation, the International
Federation of Journalists or the International Arts and Entertainment Alliance. Other
than the good things that trade unions are associated with Trade unions have been
accused of benefiting insider workers, those having secure jobs, at the cost of outsider
workers, consumers of the goods or services produced, and the shareholders of the
unionized business. In Kenya all the employees trade unions are embodied under one
umbrella called the Central Organization of trade unions (Beatrice, 2009).

The process of registering a trade union in Kenya takes six months and is provided for
in sections 12, 13 and 14 of the Labor Relations Act, 2019, Laws of Kenya.
Registration of a trade union begins when any two persons apply for a certificate to
promote the establishment of a trade union wherein the name of the proposed trade
union and any prescribed information are specified. A certificate shall specify that the
promoter may undertake lawful activities towards establishment of a trade union.
Applications for registration of a trade union are made to the registrar of trade
unions within six months of the date of the certificate issue. A trade union certificate
of registration may be withdrawn if the registrar has a reason to believe that the
certificate will be obtained by fraud, misrepresentation, and mistake or that any
person has undertaken unlawful activities in contravention of the Labor Relations Act,
2019.

Section 32 of Labor Relations Act, 2019, allows for an employee who is above 16
years to enjoy the rights of membership of a trade union. A voting member of a trade
union must be one employed in the sector for which the trade union is registered and
his/ her subscriptions must not be more than 13 weeks in arrears. However, managers
cannot be part of the trade unions formed by employees as provided by the law: The
level of unionization of employees is provided for in of the Industrial Relations
Charter (Beatrice, 2009). The charter prohibits persons having authority in their
organizations to hire, transfer, appraise, suspend, promote reward, discipline and
handle grievances, from being included in the union representation. Therefore, in
view of the foregoing, managers cannot form and belong to trade unions.

Employees feel much safer when they in trade unions that are able to do collective
bargaining for them concerning their salaries, and any mistreatment that may occur
from their employers. Employees are likely to register if they feel that they don’t have

18
security of tenure. Managers should work with trade unions to understand the
grievances of employees (Ken, 2004).

2.2.5 Organizational Culture

Businesses operate in an increasingly complex and global environment, with
companies conducting business in foreign countries. As such, organizations are faced
with the challenge of managing a culturally diverse workforce. The broader national
culture that the employment relationship is embedded can shape employees’
expectations about the organization, including what they feel their organization owes
them (perceived expectations). In their study, David et al (2000) found out that, when
their managers are a different race, both blacks and Hispanics have higher dismissal
rates and lower promotion rates. These effects could simply reflect the fact that same-
race managers may be better able to motivate black and Hispanic employees. On the
other hand, these effects could reflect behavior by black and Hispanic employees; if
employees dislike dissimilar managers, they may respond with behavior (e.g., reduced
effort or absenteeism) that raises dismissal rates and reduces promotion rates. Second,
the effects could reflect preferential treatment by black managers toward blacks and
by Hispanic managers toward Hispanics.

In contrast to the effects on blacks and Hispanics, the study found that race
differences have favorable effects on white dismissal and promotion rates. When
white employees have nonwhite managers, they actually have lower dismissal rates
and higher promotion rates than when they have white managers. Two factors may
help explain this. First, their quit results suggest it is more difficult for non-white
managers to retain white employees, and their analysis of employee self-selection
suggests it is also more difficult for minority managers to hire white employees.
These difficulties could cause minority managers to be especially indulgent toward
white employees. Finally, the unfavorable effects could reflect discrimination by non-
black managers against black employees and by non-Hispanic managers against
Hispanic employees (Levine, 2009).

Research on gender diversity prior to the 2000 focused largely on discrimination and
bias resulting from being different from the majority. Research reporting negative
effects for women regarding performance ratings (Tsui & O’Reilly, 2005) and pay
discrimination built on the similarity-attraction paradigm. Previous research posited
that women experienced isolation and stereotyping. Contrary to popular belief,
19
gender diversity has also been found to have more negative effects on men than
women in regards to outcomes, such as attachment to the organization.

There have been recent interests in exploring factors influencing employee relations
with a specific focus on gender differences. Studies have tested this relationship on
the basis of satisfaction as an outcome. Studies report that women have high job
satisfaction irrespective of whether they are answerable to a male or female boss as
compared to men who derived less satisfaction when under a female boss. In a study
among women working in the private banking sector, Metle (2001) reported there will
be gender discrimination in seniority and qualifications.

Men and women working in gender balanced groups have higher levels of job
satisfaction than those working in homogeneous groups. Gender bias in the workforce
has reported to impact negatively on performance in the organizations, the banking
sector included. Amidst gender bias, women are less likely to receive help from their
managers toward advancement and are less satisfied than men in the work they
performed. Managements have been accused of assigning women employees’ less-
challenging tasks, non-commensurate with their backgrounds. Data from the U.S
National study by Donohue and Heywood (2005), report that overall women have a
higher job satisfaction than men. Women also have higher job satisfaction in
workplaces dominated by women. However, men and women value job flexibility
differently, and once this difference is controlled for, gender composition in the work
place play no role in determining job satisfaction of women.

In view of the status characteristics theory, in most cultures, men are accorded greater
esteem, social worth and respect than women. People hold low expectations for
women’s performance on tasks traditionally conducted by men. Women may receive
fewer chances to perform challenging tasks, they may be given less time to express
their views, and they may be less often selected for leadership positions, etc. This
differential treatment, in turn reduces women’s achievements and subsequent rewards.
Men traditionally have held organizational leadership positions, and research shows
that good managers are seen as holding masculine rather than feminine characteristics,
especially by men. Rudman and Kilianski (2000) showed that both women and men
held negative implicit attitudes toward women in authority, though men were more
likely than women to express negative attitudes toward women leaders explicitly.

20
In their meta-analysis, Eagly, and Kolinsky (2002) found that female leaders received
poorer evaluations than their male counterparts, especially when they exhibited an
autocratic leadership style, when they were in predominantly masculine settings, and
when they were evaluated by men. Custodians of the social cognitive theory, assert
that gender diversity moderates the relationship between group efficacy and group
outcome. They agree that group efficacy-performance relationship is stronger in
mixed gender groups than in same gender groups.

There is ample evidence in the literature that women are subjected to gender-based
evaluations, with their performance on male gender-typed tasks often devalued and
their competence denied (Maruyama, & Myers,2009). These biased evaluations have
been attributed to cognitive distortion in the service of perpetuating negative
expectations of women. The negative expectations are thought to result from the
inconsistency between stereotypic perceptions of what women are like and the
qualities thought necessary to perform a typically male job. Indeed, bias seems to
flourish in situations in which there is ambiguity about performance quality and
cognitive distortion can easily occur. However, sometimes a woman’s
accomplishments are clearly and irrefutably excellent. In this case, the tendency to
distort is constrained; consequently, expectations are overridden, success is
acknowledged, and she is accepted as competent.

2.3. Review of Critical Literature

The researcher tried to find out how previous researchers have commented on how the
issues of leadership style, employee compensation, training, trade unions and
organizational structure affected employee relations in a firm. Although quite some
work has been done by researcher there is very little that relates to how organizational
culture affects employee relations. The norms in an organization are very crucial in
determining whether a given employee will stay in the company or leave. In other
words organizational culture has a long run effect on employee turnover. The
literature review failed to establish a solution for this problem hence resulting into a
research gap which will be filled by the researcher.

According to Gaulick (2004) employee compensation are contributory factor in

business success. This is mainly because businesses employee compensation enables
the owner to acquire the returned loans at low interest rate while can act as guaranties
and securities. Whereas this is true the author has failed to show us how employee
21
compensation affects employee productivity in the banking industry. Employee
compensation system should be improved by paying the employees fairly. This results
into delays which in turn cause the country to lose millions of shillings. The literature
review failed to explain what has been done to improve employee compensation so as
to facilitate the employee relations thus creating a research gap which the researcher will
try to fill.

Saleemi (2007) notes training aims at equipping employees to perform competently in

their present and future jobs so as to increase efficiency and effectiveness of its
organization and their own job satisfaction. It is a planned provision of learning on the
job or in a training center. Limiting the planned training and development activity to
courses, failure to identify each individual development needs affects the performance
of an individual. Training provides job security and opportunity for advancement.
Skills acquired through training are the cornerstone of quality performance and
management of the organization. Trained human resources save the establishment
from time will betage; raw materials and product will balefulness. Change of political,
socio-economy and technology demands the organizations train its personnel to avoid
production of obsolete products or services. The following research gaps were
identified hence the researcher will try to find the solutions to the various factors which
include the variables and how they can be improved to facilitate the improvement of
employee relations in the banking sector in Kenya.

The Union will be successful in the strike because of good organization and solidarity
which could only be achieved with a good communication system. The “mainstream”
newspapers could not have given the Union total control over its communications
during the course of the strike. Using a relatively cheap and simple technology and
controlling the distribution network, the Union ensured that its communication lines
were not disrupted by employers or the colonial authorities (Singh, 1998). This results
into double expenditure whereby the management has to rely on their employees to
identify factors affecting customer service in the organization. The literature review
failed to establish a solution for this problem hence resulting into a research gap
which will be tried to be filled by the researcher.

According to Stanley (2003) organizational culture is an idea in the field of

Organizational studies and management which describes the psychology, attitudes,
experiences, beliefs and values (personal and cultural values) of an organization. It
22
has been defined as "the specific collection of values and norms that are shared by
people and groups in an organization and that control the way they interact with each
other and with stakeholders outside the organization, but the author has not informed
us the contributions of organizational culture to customer service and therefore there
will be high need to find out the effect of culture on customer service. The literature
review failed to establish a solution for this problem hence resulting into a research
gap which will be filled by the researcher.

2.4 Summary
The performance of any organization depends upon the effort which the employees
put in to the productivity of the firm. The effort of the employee, on the other hand,
depends on the relationship the employee has with the employer or manager.

A good manager should select a leadership style that encompasses the needs of as
many employees as possible. A leader who chooses the autocratic leadership, for,
example should be able to address people’s issues if and when they occur. The
manager and the employee should be able to continuously update the employee wage
system to ensure that the employees are paid fairly. It is paramount for employees to
be paid according to their job description, educational level and the input they deliver
to the company.

Training is vital because it hold the key to productivity gain and improve customer
service employee are better equipped to do there. Present job at satisfactory or prepare
him for high position with increased responsibilities the effective functioning of any
organization require employee to perform at satisfactory level of proficiency because
it holds the key to productions gain and improve customer service better utilization of
human resources by giving the employee mystery over their work and recognition by
management however most of training is conducted to improve employee present and
potential job performance customers wants and desire and how to meet these need it
keeps close eyes on measureable performance outcomes and is often highly solution
oriented there is increase employee skills gap and improvement of industrial
performance the intent of these process is to ensure that the appropriate training and
development policies and procedure exist to meet business goals and more generally
to promote culture which is key the way organization operates inadequate training
will result to how skills how output and lack of motivation which encourage
employee turnover.
23
Trade unions are very essential in any employee relations at the workplace. They are
the employer’s watchdog. Employees should therefore be encouraged to join and
register into trade unions

Some observations can be made about the body of work on culture diversity/race and
ethnicity in organizations. First, in contrast to a popular belief on ethnic diversity, the
positive effect of ethnic diversity on work group performance has not been supported
conclusively. Instead, null and negative results have been more common. Therefore,
more research is certainly needed to specify different contingencies such as length of
time together as a group, task characteristics, and various combinations of ethnicity in
which ethnic diversity may have differential effects on performance. Most research on
gender diversity in organizations is premised on the assumption that diversity is
fraught with difficulties, such as in-group bias, or that diversity is a double-edged
sword with challenges accompanying the potential benefits. Research that focuses on
neutral or positive predictions would be a valuable addition to the literature on gender
in organizations. In addition, research should go beyond examining the effect of
gender composition on outcomes and instead consider such variables as effective
leadership of mixed gender groups.

2.5. Conceptual Framework

This section provides the independent variables in relation to the dependent variable,
showing the inter-relationship amongst the variables in the context of the research
problem.

Figure 2.1 Conceptual Framework

Independent Variables Dependent Variable

Leadership Style

Employee Compensation

Employee Relations in the

Employee Training
Banking Sector in Kenya

24
Trade Unions
Source: Author (2020)

2.5.1 Leadership Style

A good manager should possess very good managerial skills and understand
managerial roles. The essence of a manager understanding managerial skills is very
relevant in ensuring that the performance of a company is not jeopardized. The
leadership style imposed determines the manner in which employees react to the
organizations activities especially employee relations in the banking sector in Kenya.
Leaders who use charismatic leadership, for instance, might want to consider the
direction where employees are headed to and adopt it.

2.5.2 Employee Compensation

The amount of wage given to an employee is an extrinsic motivation that ensures that
employees stick to their work. These incentives ensure that the employee is
productive and loyal to the managers and employers. Basic pay and other bonuses are
very influential in ensuring that employee’s well-being is catered for. This enhances
employee relations in the organization. They also act as a motivational factor for the
employees and may increase the retention rate.

2.5.3 Employee Training

Training aims at equipping employees to perform competitively in the present and
future jobs. Once each employee has an idea of what he /she is expected to do in their
duties then the running of the organization becomes easier. This also increases the
productivity levels of the organization. For employee relations to be effective in the
banking sector there is need for continuous training for all the staff in the
organization.

2.5.4 Trade Unions

Trade unions are an important part of any organization. Employees feel the need to
register and be part of trade unions with the hope that these unions will protect their
rights if violated by their mangers or employer. Trade unions will represent and
25
bargain on behalf of the employee in matters such as employee compensation, health
insurance, social security and working conditions. Trade unions are well known to
fight for employee welfare and are not left behind when it comes to employee
relations in different sector of the economy. Once an employee feels that such things
are addressed they feel more motivated to work since the level of grievances goes
down and in case they arise the way they are handled is up their satisfaction.

2.5.5 Organizational Culture

Culture refers to the cumulative knowledge about the organization. Some of these are
the experience, attitudes, meanings, religions roles, notions of time etc. These are
acquired by a group of people in the course of generations through individual and
group striving. An organization with strong organization culture has the ability to
have enhanced employee relations as cultivated in the organizational beliefs. Once
employees feel that whatever they believe is being respected among themselves and
by their superior then the running of the organization seem to be smooth. This is
because they are less grievances.

26
 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter gives details regarding the procedures used in conducting the research.
The issues which were discussed include the research design that will be used, the
target population, sampling procedures and sample size, sources of data, instruments
of data collection as well as the data analysis methods.

3.2 Research Design

A research design is a master plan specifying the methods and procedures used for
collecting and analyzing any needed information. The study will use descriptive
research design where the researcher will collect the data and accessed on the factors
affecting employee relations at Standard Chartered Bank in Kenya. According to Gay
(1983), descriptive research is a process of collecting data in order to test hypothesis
or to answer research questions. This design will be considered appropriate because it
allows for individual views and opinions concerning the issue of the factors affecting
employee relations at Standard Chartered Bank in Kenya. It also describes the state of
affairs, as it exists without manipulating facts.

3.3 Target Population

A target Population refers to a group of person’s that a researcher identifies for
conducting the research. Mugenda and Mugenda (2004) define research population as
the complete set of individuals, objects or cases with some common observable
characteristics. Cooper et al (2003) defines the target population as the list of all the
elements from which the sample is actually drawn. According to the Personnel
27
Records (2000) Standard Chartered Bank, limited has employed 154 employees, in
the study and it consists of senior management, middle level management staff and
the support staff, stationed at the Standard Chartered Bank. The details of the target
population are indicated in the table 3.1.

Table 3.1 Target Population

Population Category Target Population Percentage %

Top Management 6 4
Middle Management 20 13
Support Staff 128 83

Total 154 100

Source: Author (2020)

3.4 Sample Design

According to Kombo (1992), a sample is a sub-set of a given unit. It is the process of
selecting a representative sample from a target population. Stratified sampling will be
adopted where the sample selected will be divided into strata, which could justify the
researcher in getting reliable and adequate information. The researcher used stratified
random sampling to ensure that the different groups of the population were adequately
represented in the sample so the level of accuracy will be increased. Here the sample
will be divided into strata’s and it is advantageous because the results of the sample
can be applied in general and the researcher can get reliable and adequate information.
The sample for the study constituted 77 employees of the Standard Chartered Bank to
be arrived at based on 50% of the target population as shown in the table below.

Table 3.2 Sample Size

Category Target Population Sample Size Percentage %
Top Management 6 3 4
Middle Management 20 10 13
Support Staff 128 64 83
Total 154 77 100

Source: Author (2020)

28
3.5 Data Collection Methods and Instruments

3.5.1 Questionnaires
Primary data will be collected through administration of semi-structured
questionnaires to the respondents. This method will be convenient to both the
researcher and the respondents in terms of time, effort and costs. It is free from bias of
the researcher and respondents. Also respondents were free to respond to sensitive
issues. The questionnaires will contain both closed and open-ended questions. This
includes the analysis of documents for example identifying the sources and getting the
relevant materials. These included published books, projects, internet, newspapers and
journals. The materials then complied with field findings after the fieldwork will be
done.

3.5.2 Validity and Reliability of Research Instatements

Kothari (2009) stated that validity is the accuracy and meaningfulness of inferences
which are based on the research results. Results obtained from the analysis of data
represent the phenomenon under study while reliability is a measure of the degree to
which a research instrument yields consistent results after repeated trials through the
degree. It involves administering the same instrument a number of times to the same
group of subject. The researcher will obtain authority from the management standard
Bank to circulate questionnaires. To ensure reliability and validity, questionnaires will
be pre- tested on four respondents. These respondents will not be included in the final
study. The questionnaires will then be corrected before the final distribution is done.

3.5.3 Administration of Questionnaires

Questionnaires will be used in the study. They will be hand-delivered and collected
after seven days. The type of questions that will be used will include both open and
closed ended. Closed ended questions will be used to ensure that the given answers
were relevant. The researcher will phrase the questions clearly in order to make clear
dimensions along which respondents will be analyzed. In open ended questions,
spaces will be provided for relevant explanation by the respondents, thus giving them
freedom to express their feelings. This method will be effective to the study in that; it

29
creates confidentiality. The presence of the researcher will not be required as the
questionnaire will be self-explanatory.

3.6 Data Analysis Methods

According to Kothari (2004), data analysis procedure includes the process of
packaging the collected information putting in order and structuring its main
components in a way that findings can be easily and effectively communicated. After
the fieldwork, before analysis, all questionnaires were adequately checked for
reliability and verification. Editing, coding and tabulation were carried out. The data
collected will then be analyzed using qualitative and quantitative methods and will be
presented using pie charts, tables, figures and graphs.

30
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Stoner V. (2009) “Formal Education Training”, 5th Edition, West Publishing
Company, New York, USA
Tom F. (2005) Aspects of the Working Environment, 7th Edition, and Thomson
Southwest, India
Torrington A. (1998) Human Resource management, 4th Edition, Europe Prentice
Hall
Tsui F. & O'Reilly H. (2004) “Customer Satisfaction”, 2nd Edition, Parkland
Publishers, Stockholm, Sweden
Wargborn, B. ( 2008) Managing motivation in Organizations - Why employee
Relationship Management Matters. Saarbruecken: VDM.
Weab (M. 2006) Empowerment Process of Employees, 5th Edition, Oxford University
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Webb R. (2006) “Management Practise”, 8th Edition, Edinburgh Gate, Harlow,
England
Wood G. (2009) Safety Training Programmes, 4th Edition, Thomson Learning,
London, UK

33
 APPENDIX II
QUESTIONNAIRE

Please answer questions by putting a tick [√] in the appropriate box or by

writing in the space provided.
.

SECTION 1: PERSONAL INFORMATION

1. Gender
Male { }
Female { }
2. Age in years
21– 30 Years { }
31– 40 Years { }
41– 50 Years { }
Above 50 Years { }

3. Highest Level of Education

Secondary { }
Diploma { }
Undergraduate { }
Post Graduate { }
Others { }

4. Work Experience

Below 5 years { }
6 - 10 Years { }
11 - 15 Years { }
Over 16 Years { }

5. Level of Management
Top Management { }
Middle Management { }
Support Staff { }

i
 SECTION 2: LEADERSHIP STYLE

6. Does leadership style affect employee relations in the banking industry in

Kenya?

Yes { }

No { }

7. To what extent does leadership style affect employee relations in the banking
industry in Kenya?

Very Large Extent { }

Large Extent { }

Medium Extent { }

Low Extent { }

No Effect { }

Please Explain

…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………………………….

SECTION 3: EMPLOYEE COMPENSATION

8. Does employee compensation affect employee relations in the banking

industry in Kenya?
Yes { }
No { }

9. To what extent does employee compensation affect employee relations at the

banking industry in Kenya?

Very Large Extent { }

Large Extent { }

ii
 Medium Extent { }

Low Extent { }

No Effect { }

Please Explain

…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………………………….

SECTION 4: EMPLOYEE TRAINING

10. Does employee training affect employee relations at the banking industry in
Kenya?
Yes { }
No { }

11. To what extent does employee training affect employee relations at the
banking industry in Kenya?

Very Large Extent { }

Large Extent { }

Medium Extent { }

Low Extent { }

No Effect { }

Please Explain

…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………………………….

SECTION 5: TRADE UNIONS

12. Do trade unions affect employee relations at the banking industry in Kenya?
Yes { }

iii
 No { }
13. To what extent do trade unions affect employee relations at the banking
industry in Kenya?

Very Large Extent { }

Large Extent { }

Medium Extent { }

Low Extent { }

No Effect { }

Please Explain

…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………………………….

SECTION 6: ORGANIZATIONAL CULTURE

14. Do you think organizational culture affects employee relations at the banking
industry in Kenya?

Yes { }

No { }

15. To what extent does organizational culture affect employee relations at the
banking industry in Kenya?

Very Large Extent { }

Large Extent { }

Medium Extent { }

Low Extent { }

No Effect { }

Please Explain

…………………………………………………………………………………………
…………………………………………………………………………………………

iv
…………………………………………………………………………………………
………………………………………………………………………………………….

Thank you for your Cooperation

v
 APPENDIX II

WORK PLAN

Details May 2020 June 2020 July 2020

Chapter One

Chapter Two

Chapter Three

Source: Author (2020)

APPENDIX III

vi
 RESEARCH BUDGET

Particulars Cost

Typing and Printing 5000

Transport 3500

Internet 1500

Total 10,000

Source: Author (2020)

vii