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Employee Perception of Equity, Motivation and Job Satisafaction Among Medium Banks in Nairobi

Essay by   •  July 6, 2011  •  Case Study  •  582 Words (3 Pages)  •  2,377 Views

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A survey of the relationship between employee perception of equity, motivation and job satisfaction among medium banks in Nairobi.


A country thrives economically when the standards of living of its citizens are of great quality and improved. The banking sector plays a crucial in the effective and efficient delivery of financial services which are core to functioning of a state economy. In the recent years banks have embraced the economic realities and stiff competition hence have become more customer oriented giving customers value for their money

Human resources are key inputs in product development and service delivery in the banking sector. How an organization manages its human resources forms an integral part of how it's going to achieve its objectives. Human resource management coherently and strategically deals with the most valued asset of any Organization that is the people who individually or collectively contribute towards the achievement of the organization success(Armstrong 2001).Of all the functions of human resource management , Perception of equity among employees is arguably the most contentious. According to (Adams 1963) an employee will compare his ratio of outcomes he gets from his /her employer to input he/she contributes to the Organization with the same ratio inside and outside the Organization. Inputs include time, effort, loyalty, qualification, flexibility, experience, and enthusiasm and sacrifice that the employee brings to the Organization. Whereas ouput include recognition, work itself, more responsibility, advancement and growth salary increment and achievement (Traupmann and Walster 1978).

In Kenya the Central bank of Kenya has divided the commercial banks into peers that are Large, medium and small. In our research our main focus will be the medium banks .There are 13 registered medium banks in Kenya. Bank staff who work in medium banks will tend to compare the input output ratio with comparable others in the banking industry. This comparison might result in the following two outcomes 1The employee perceives his/her ratio to be equal comparable to others ratio (fairness)

2The employee perceives his ratio to lower than comparable others ratio (unfairness).The absence of equity among employees makes it difficult for firms to attract, hire and retain competent staff who can enable them meet the overall objectives. Equity plays a key role in the strategic management of human resource. This proposal is based on whether equity affects the motivation and job satisfaction of employees working in medium banks in Nairobi.

1.2 Research Objectives

1. To establish the relationship between employee perception of equity and motivation of employees of medium banks in Nairobi.




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