Effect of Employee Engagement on The Performance of Microfinance Banks: A Case of AB Bank Rwanda Plc.
DOI:
https://doi.org/10.53819/81018102t7033Abstract
This research project investigated the relationship between employee engagement and the performance of AB Bank Rwanda Plc, focusing on four specific objectives: evaluating the impact of internal communication on employee engagement, analyzing the influence of leadership, assessing the connection between employee well-being and engagement, and examining the effect of training and development on employee growth. A combination of descriptive and correlational research designs was employed to determine the effect size of these objectives. The study targeted a population of 257 individuals, with a sample size of 157 respondents calculated using the Yamane formula, selected through simple random and purposive sampling methods. Data was collected using questionnaires and documentation. The findings reveal valuable insights not only for AB Bank Rwanda Plc but also for the broader microfinance sector in Rwanda. The study showed that staff recognized the positive effects of internal communication, evidenced by a beta value of 0.742 (p < 0.05), indicating a strong association between e-tendering and the bank's organizational performance. Additionally, there was a substantial positive link between leadership and organizational performance, with a beta value of 0.639 (p < 0.05). The regression analysis further demonstrated a strong positive correlation (beta = 0.705, p < 0.05) between employee well-being and organizational success at AB Bank Rwanda Plc. Lastly, the analysis indicated a significant positive relationship between training and development and organizational performance, shown by a beta value of 0.660 (p < 0.05). The study confirms the positive relationships between internal communication, leadership, employee well-being, and training and development as critical factors contributing to the performance of AB Bank Rwanda Plc. These findings suggest strategies for optimizing operations and enhancing employee engagement within the microfinance sector.
Keywords: Employee Engagement, Organizational Performance, Internal Communication, Leadership, Training and Development
References
Achieng Otieno, B. B., Waiganjo, E. W., & Njeru, A. (2015). Effect of Employee Engagement on Organisation Performance in Kenya’s Horticultural Sector. International Journal of Business Administration, 6(2), 77–85. https://doi.org/10.5430/ijba.v6n2p77.
Akella, D. (2016). Workplace Bullying: Not a Manager’s Right. Journal of Workplace Rights, 1(10), 1–10. https://doi.org/10.1177/2158244016629394.
Alan M. Saks, (2006). "Antecedents and consequences of employee engagement." Journal of Managerial Psychology, 21(7), 600–619.
Al-Fayoumi, N. A., & Abuzayed, B. M. (2009). Assessment of the Jordanian Banking Sector within the Context of GATS Agreement. Banks and Bank Systems, 4(2), 69-79.
Ariani, D. (2013). The Relationship between Employee Engagement, Organizational Citizenship Behavior, and Counterproductive Work Behavior. International Journal of Business Administration, 4(2), 46-56.
Asif, S., & Sargeant, A. (2000). Modelling internal communication in the financial services sector. European Journal of Marketing, 34, 299-317.
Bass, B. M., & Riggio, R. E. (2006). Transformational Leadership (2nd ed.). Psychology Press.
Bateman, M., & Chang, H.-J. (2012). The Political Economy of Microfinance: Financializing Poverty. Palgrave Macmillan.
Greenhaus, J. H., & Allen, T. D. (2011). Work–family balance: A review and extension of the literature. In J. C. Quick & L. E. Tetrick (Eds.), Handbook of Occupational Health Psychology (2nd ed., pp. 165–183). American Psychological Association.
Harter, J.K., Schmidt, F.L., & Hayes, T.L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268-279.
Morduch, J., & Rice, M. (2006). The role of banks in microfinance: Lessons from the UK. Journal of Development Economics, 81(2), 459-471.
Noe, R. A. (2013). Employee Training and Development (6th ed.). McGraw-Hill Education.
RAND Europe (2015). Health, wellbeing and productivity in the workplace. Cambridge: RAND Corporation.
William, A., & Kahn, W. A. (1990). Psychological Conditions of Personal Engagement and Disengagement at Work. Academy of Management Journal, 33(4), 692–724.
