A Case Study of Commercial Bank of Africa by Paul Mathen
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THE EFFECT OF AGILE WORK ON ORGANIZATIONAL PERFORMANCE IN KENYAN BANKS: A CASE STUDY OF COMMERCIAL BANK OF AFRICA BY PAUL MATHENGE UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SUMMER 2019 THE EFFECT OF AGILE WORK ON ORGANIZATIONAL PERFORMANCE IN KENYAN BANKS: A CASE STUDY OF COMMERCIAL BANK OF AFRICA BY PAUL MATHENGE A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Master of Science in Management and Organizational Development (MOD) UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SUMMER 2019 STUDENT DECLARATION I, the undersigned declare that this project is my original work and that it has not been submitted to any other college or other institution of higher learning for academic credit other than United States International University-Africa Signed: ___________________________ Date: ____________________ Paul K. Mathenge This project has been presented for examination with my approval as the appointed supervisor Signed: ___________________________ Date: ____________________ Fred Newa Signed: ___________________________ Date: ____________________ Dean, Chandaria School of Business ii COPYRIGHT All rights reserved. No part of this report may be photocopied, recorded or otherwise reproduced, stored in a retrieval system or transmitted in any form or by any electronic or mechanical means without prior permission of the copyright owner. Copyright © PAUL MATHENGE (2019) iii ABSTRACT The general objective of the study was to determine the Effect of the Agile Work Model on an Organization’s Performance. The study focused on the banking sector and specifically, took up a case study on Commercial Bank of Africa Limited. The specific objectives of the study were to study the Influence of the Agile Work Model on Team Cohesion at Commercial Bank of Africa Limited; to determine the Influence of the Agile Work Model on Individual Work Performance at Commercial Bank of Africa Limited and to determine the Influence of the Agile Work Model on Strategy Execution at Commercial Bank of Africa Limited. A descriptive research design was adopted by the study, with a target population that included 162 employees working at the Commercial Bank of Africa headquarters sampled from different levels of management incorporating senior level, middle level and lower level cadres. Stratified sampling method was utilized since the population of interest was heterogeneous. To collect data, structured questionnaires presented in a likert scale were adopted. 100 respondents participated in the study which gives a response rate of 61.7%. The analysis was done quantitatively using descriptive and inferential statistics. The first objective of the study was to determine the influence of the agile work model on team cohesion at Commercial Bank of Africa Limited. The inferential findings regarding correlation indicated that agile work model was positively and significantly associated with team cohesion at Commercial Bank of Africa Limited (r =0.424, p <0.05). Similarly, the regression findings revealed that agile work model positively and significantly affects team cohesion at Commercial Bank of Africa Limited; R square value was 0.269 which implied that agile team cohesion explained 26.9% of the variability in agile work model. The second objective of the study was to determine the influence of agile work model on individual work performance at Commercial Bank of Africa Limited. The inferential findings regarding correlation indicated that agile work model was positively and significantly associated with individual work performance at Commercial Bank of Africa Limited (r =0.846, p <0.05). Furthermore, the regression findings revealed that agile work model positively and significantly affects individual work performance and explained up to 72% of the variation in individual work performance at Commercial Bank of Africa Limited. iv Findings on the third objective of the study, influence of the agile work model on strategy execution, found out that agile work model influenced strategy execution (r =0.866, p <0.05). The inferential correlation results indicated that agile work model was positively and significantly associated with strategy execution at Commercial Bank of Africa Limited. The regression findings revealed that 75% of the variability in the agile work model positively and significantly affects strategy execution at Commercial Bank of Africa Limited. The study concluded that agile work model positively and significantly affects team cohesion in organizations, individual performance and strategy execution. The study recommends a high extent in adoption of the model in order to enhance team cohesion, individual performance and strategy execution. In so doing, the organization will realize increased employee productivity, job satisfaction, commitment and production. The study recommended high extent in adoption of the agile work model in order to enhance team cohesion, facilitate teamwork and elimination of work stress in organizations to realize increased employee productivity, job satisfaction and commitment. Additionally, the study recommended that the management of companies in the banking sector and other sectors to adopt agile work model when there is a need to improve the employee’s individual performance and employees’ strategies executions. v ACKNOWLEDGEMENT I would like to appreciate the following people who were instrumental in helping me with this work. I acknowledge my supervisor, Fred Newa, whose insightful comments, scholarly guidance and cooperation encouraged and saw me through this work. vi DEDICATION For Elsie and for Victor vii TABLE OF CONTENTS STUDENT DECLARATION ............................................................................................ ii COPYRIGHT .................................................................................................................... iii ABSTRACT ....................................................................................................................... iv ACKNOWLEDGEMENT ................................................................................................ vi DEDICATION.................................................................................................................. vii TABLE OF CONTENTS ............................................................................................... viii LIST OF TABLES ............................................................................................................. x LIST OF ABBREVIATIONS AND ACRONYMS ....................................................... xii CHAPTER ONE ................................................................................................................ 1 1.0 INTRODUCTION........................................................................................................ 1 1.1 Background of the Study ............................................................................................. 1 1.2 Statement of the Problem ............................................................................................ 6 1.3 General Objective ....................................................................................................... 9 1.4 Objectives of the Study ............................................................................................... 9 1.5 Significance of the Study ............................................................................................ 9 1.6 Scope of the Study .................................................................................................... 10 1.7 Definition of Terms ................................................................................................... 11 1.8 Chapter Summary ..................................................................................................... 13 CHAPTER TWO ............................................................................................................. 14 2.0 LITERATURE REVIEW ......................................................................................... 14 2.1 Introduction ............................................................................................................... 14 2.2 Influence of Agile Work Model on Team Cohesion ................................................. 14 2.3 Influence of Agile Work Model on Individual Work Performance .......................... 19 2.4 Influence of Agile Work on Strategy Execution ....................................................... 24 2.5 Chapter Summary ..................................................................................................... 29 CHAPTER THREE ......................................................................................................... 30 3.0 RESEARCH METHODOLOGY ............................................................................. 30 3.1 Introduction ............................................................................................................... 30 viii 3.2 Research Design ........................................................................................................ 30 3.3 Population and Sampling Design .............................................................................. 30 3.4 Data Collection Method ............................................................................................ 32 3.5 Research Procedures ................................................................................................