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Employees Perception of Industrial Action in Commercial Banks in Kenya EMPLOYEES PERCEPTION OF INDUSTRIAL ACTION IN COMMERCIAL BANKS IN KENYA NGOJE ROBLEY OTIENO A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE IN HUMAN RESOURCE MANAGEMENT, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI 2014 i DECLARATION I hereby declare that this project is my original work and has never been presented to any other institution for the award of a degree. No part of this research should be reproduced without my consent or that of the University. Sign……………………… Date…………………… NGOJE ROBLEY OTIENO D64/65261/2013 This research project has been submitted for examination with my approval as the university supervisor. Sign……………………… Date…………………… Mr. George Omondi Supervisor, Department of Business Administration, School of Business, University of Nairobi. i DEDICATION I have dedicated this research project to my mother for her kindness and devotion, and for her endless support when I needed it most in my academic pursuit at all levels; her selflessness will always be remembered and cherished. May the Almighty God grant you good health, comfort and peace. ii ACKNOWLEDGEMENTS It gives me great pleasure in expressing my gratitude to all those people who have supported me and had their contributions in making this research project possible. First and foremost, I must acknowledge and thank the Almighty God for blessing, protecting and guiding me throughout this period. I could never have accomplished this without the faith I have in the Almighty. I express my profound sense of reverence to my supervisor and mentor - Mr. George Omondi, for his constant guidance, support, motivation and untiring help during the course of my research. His in-depth knowledge on a broad spectrum of different issues concerning employee/industrial relations matters, among others, has been extremely beneficial for me. He has given me enough freedom during my research, and he has always been nice to me. I will always remember his calm and relaxed nature whenever I consulted him. I am thankful to the Almighty for giving me a supervisor and mentor like him. I express my deepest gratitude to my wife - Mrs. Jackline Ngoje for her understanding even in extreme moments of somewhat my desertion of cardinal household duties. She has stood with me throughout this research. I wish to sincerely thank my daughters - Sheryl, Sandra and Merab for their unprecedented encouragement and cooperation during my academic pursuit. I cannot imagine my current position without the love and support from my family and relatives. I thank my mother, Mrs. Yucabeth Ngoje, my uncle - Mr. Dickson Onyango Ongaro and his spouse - Mrs. Carren Onyango for striving hard to provide a good foundation for my education. Without you I would not have scaled the heights of education. I always fall short of words and felt impossible to describe their support in words. If I have to mention one thing about them, among many, then I would proudly mention that you are very simple people who taught me how to lead a simple life. I would simply say, “Mom you are great!” The several miles you trekked to look for money in my formative education was not in vain! My brother – Mr. Robert Ngoje and my sisters – Jane and Rose are always excited to hear my success and that inspires me to perform better and be successful. I am distinctly grateful to my secondary school principal, Mr. Jack Siso Kolweya who laid seeds of enthusiasm and passion in my pursuit of knowledge. Finally, I wish to heartily thank KCB Bank Group for the enormous financial support. iii TABLE OF CONTENTS DECLARATION…………………………………………………………………….i DEDICATION……………………………………………………………………….ii ACKNOWLEDGEMENTS………………………………………………………..iii LIST OF FIGURES……………………………………………………...…………vi LIST OF TABLES…………………………………………………………...…….vii ABSTRACT…………………………………………………………………….…viii CHAPTER ONE: INTRODUCTION ........................................................................1 1.1 Background of the Study .....................................................................................1 1.1.1 Concept of Perception ...................................................................................2 1.1.2 Industrial Action ...........................................................................................3 1.1.3 Commercial Banks in Kenya ........................................................................5 1.2 Research Problem ................................................................................................6 1.3 Research Objective ..............................................................................................8 1.4 Value of the Study ...............................................................................................8 CHAPTER TWO: LITERATURE REVIEW ...........................................................9 2.1 Introduction ..........................................................................................................9 2.2 Theoretical Foundation of the Study....................................................................9 2.2.1 Pluralist Theory .............................................................................................9 2.2.2 Unitarist Theory ............................................................................................9 2.3 Industrial Action ................................................................................................11 CHAPTER THREE: RESEARCH METHODOLOGY ........................................16 3.1 Introduction ........................................................................................................16 3.2 Research Design.................................................................................................16 3.3 Target Population ...............................................................................................16 3.4 Sample Design ...................................................................................................16 3.5 Data Collection ..................................................................................................16 3.6 Data Analysis .....................................................................................................17 iv CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION .................................................................................................18 4.1 Introduction ........................................................................................................18 4.2 Response Rate ....................................................................................................18 4.3 Demographic Characteristics of the Respondents .............................................18 4.4 Employee Perception of Industrial Action in Commercial Banks in Kenya .....22 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMEDATIONS 26 5.1 Introduction ........................................................................................................26 5.2 Summary ............................................................................................................26 5.3 Conclusion .........................................................................................................26 5.4 Recommendations ..............................................................................................27 5.5 Limitations of the Study.....................................................................................27 5.6 Suggestions for Further Research ......................................................................27 REFERENCES ...........................................................................................................28 APPENDICES ............................................................................................................34 v LIST OF FIGURES Figure 4.1: Gender of the Respondents........................................................................19 Figure 4.2: Age of the Respondents .............................................................................20 Figure 4.3: Distribution of Respondents by Level of Education .................................21 Figure 4.4: Work Experience of the Respondents .......................................................21 Figure 4.5: Position held by the Respondents ..............................................................22 vi LIST OF TABLES Table 4.1: Employee perception of industrial action in commercial banks in Kenya…………………………………………………………………….25 vii ABSTRACT Support of employees is paramount for organizational success. Industrial action is a form of protest by employees to push an agenda. Research finding has shown that industrial actions such as covert and overt actions are taken by employees at varying scales to express their displeasure with the management whenever they are aggrieved. It is significant for employers and employees to maintain cordial working relations in the world‟s competitive global market. The study sought to establish employees‟ perception of industrial action in Commercial Banks in Kenya. A descriptive study design was used and out of the 803 questionnaires sent out, 571 responded. The data collected was analyzed through descriptive statistics which included mean, standard deviation and percentages. Industrial action was positively perceived by most employees in Commercial Banks in Kenya as an effective way to deal with management in terms of problem solving and pressing for resolution of their issues. It is evident that most of the bank employees
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