FACTORS INFLUENCING IMPLEMENTATION OF PARTICIPATIVE PLANNING AND MANAGEMENT STRATEGIES IN FINANCIAL INSTITUTIONS: A CASE OF NATIONAL BANK OF KENYA
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The purpose of this study was to analyze the factors that influence implementation of
participative planning and management practices in an organization. The site of the
study was National Bank of Kenya Ltd. The objectives of the study were to find out how
participative planning and management enhances employees morale, promotes
coordination at the work place, provides a basis for decentralization of authority, and
establish to what extent control facilitates participatory planning and management in
organizations. The study used a descriptive survey design which helped to gather
information about the present existing condition. The target population was 300
employees in the six divisions of National Bank of Kenya headquarters. A sample size of
85 respondents which composed employees and managers was selected using a stratified
random sampling technique.. Questionnaires were used to collect the required data. A
pilot study was carried out with eight members of staff of National Bank of Kenya at
Embu Branch to establish the validity and reliability of the research instruments. The
questionnaires were collected after which the data was analyzed and descriptive statistics
such as mean and percentages were generated and presented in form of tables.
The study findings revealed that 95% of the employees were involved in the management
of NBK at operational level. The findings further revealed that 84% of employee
suggestions are forwarded to the top management for action and mostly their line
manager for actions. A majority of employees of 70% have ever experienced the bank
face setbacks of closure of bank branches. The study findings revealed that there was
training on participatory planning and management though the bank lacks a department in
charge of reviewing and harmonizing conflicting interests in participative planning and
management
It also emerged that 69% of the managers engage and normally involve employees in
planning on performance planning and community work under the social and corporate
responsibility. A majority of 60% that and morale and productivity are moderately
enhanced with their in participation in planning, 74% of the managers understudy were in
agreement that there is a relationship between participative planning and coordination.
That participative planning and management does not foster decentralization process at
National bank of Kenya. On participative planning and controls in an organization it was
highly regarded because it enhances ownership, promotes discipline, enhances
cohesiveness and promotes team work among the staff members and management,
promotes understanding, enhances bonding between the employer and employee and
brings forth consensus leading to smooth running of the organization.
There is impact attached to participative planning and effective control at National Bank
of Kenya. This was noted to devolve decision making to staff level creating harmony
with managers, motivates employees to work with minimum supervision as well as
promotes a balance between employee’s private life and work environment. The
respondents further noted that though participative planning takes time in decision
making it provides democratic space where employees give their diverse contributions in
opinions.
Based on study findings it is recommended that there is need for delegation in which
employees work on projects or tasks with considerable responsibility being delegated to
them. To have suggestion schemes for new ideas where employees are given channels
whereby they can suggest new ideas to managers within the organization. To have
Consultative forum meetings whereby employees are encouraged to share ideas. Promote
multi-channel decision making processes whereby decisions are not only made in a
downward direction, they also result from communications upwards, sideways, and in
many other directions within the organization.
More studies to be carried on employee motivation and impact organizational growth and
performance and secondly on the impact of on job training of employee and organization
performance.