SOCIALLY RESPONSIBLE INVESTING AS A STRATEGIC LEADERSHIP AND ORGANIZATIONAL PERFORMANCE: A CASE OF NATIONAL BANK OF KENYA
SOCIALLY RESPONSIBLE INVESTING AS A STRATEGIC LEADERSHIP AND ORGANIZATIONAL PERFORMANCE: A CASE OF NATIONAL BANK OF KENYA
Mary Wanjiru Wachira - Masters Student, Kenyatta University, Kenya
Dr. Lawrence Wainaina (PhD) - Department of Business Administration, Kenyatta University, Kenya
ABSTRACT
Improving organizational performance which entails using organizational resources correctly to achieve set goals and objectives is an important aspect for every organization that seeks to survive in the crowded and competitive market. This has led to banks and other organizations adopting a strategic leadership style to ensure they perform at the optimum. The focus of this investigation was to establish the association between human capital development and how the NBK performs in the market. NBK is a registered commercial bank in Kenya with a countrywide branch network. NBK has continued to perform poorly both in terms of profits and customer deposits even when other banks record improved performance. It was conducted within the national bank of Kenya by involving the head office and 9 branches in the coast region. The study was guided by the resources-based view (RBV) and Transformational leadership theories. The research employed a descriptive survey design. To actualize this, the researcher conducted a census using an interview guide to collect data from 18 senior managers at the national bank head office located at the National Bank Building Harambee Avenue, Nairobi. The study also used a self-administered questionnaire with predetermined responses requiring respondents to pick only one item per question. The tool was administered to 36 branch management staff in the coast region (Malindi, Kilifi, Mtwapa, Nyali, TUM, Bondeni, Changamwe, Nkrumah, and Ukunda). The study registered an 80% return rate which is acceptable for analysis. Analysis for the study data was done using frequencies, percentages, mean and standard deviation while the relationship between study variables was tested using bivariate correlation analysis and multiple linear regression analysis. The study analysis show that results of analysis showed that human capital development is statistically significant to organizational performance at ninety-five percent level of confidence. Based on the findings of this study it is recommended that the organization should continuously develop its human capital to make the bank increase its performance in the market.
