Effect of Strategic Human Resource Practices on Employees’ Performance in Commercial Banks in Nairobi (A Case of Nairobi County)

Despite the recognition of the important role that human resource practices play in enhancing employee performance, there is a lack of comprehensive research on the specific impact of these practices in the banking industry. The study aimed to investigate the relationship between strategic human resource practices and employee’s performance in the 38 commercial banks in Nairobi. The study specific objectives were to determine the effect of performance appraisal, employee training, employees’ involvement, employee motivation on employee performance in commercial banks in Nairobi. The study was guided by four theories; Harvard model, Goal setting theory, Human capital theory, technology acceptance model. The study adopted explanatory research design and probability sampling strategy. The study target population were 228 respondents comprising of 38 heads of human resources, 38 heads of operations, 38 heads of marketing and 38 heads of finance and 76 human resource managers in the 38 commercial banks in Nairobi County. The study employed primary data. The sample comprised of 145 respondents from the 38 commercial banks in Nairobi County. A 5-point Likert scale was used to measure employees’ performance in commercial banks. The study employed both descriptive and inferential statistics to analyze data. Findings indicated that performance appraisal, employee training and employee motivation significantly influence employee performance in commercial banks in Nairobi while employee involvement negatively and insignificantly influence employee performance. Thus, the study concluded that performance appraisal, employee training, employees’ motivation significantly influences employee performance in commercial banks in Nairobi. The study recommends that commercial banks in Nairobi prioritize and enhance their performance appraisal systems, training programs, and employee motivation strategies, as these practices have been shown to significantly boost employee performance. Banks should focus on regular and comprehensive performance appraisals that provide constructive feedback and recognize employee contributions, as well as invest in continuous training programs that equip employees with the necessary skills and knowledge to perform effectively.