Abstract: The banking sector in Kenya has become extremely competitive with 43 banks serving a total population of 40 Million. This created cut throat competition in the industry where the customers are now multibanked. Since the regulator, central Bank of Kenya has place strict controls on pricing, the only option left is through the delivery of exceptional service. The employees being the only mode of that service delivery, it has become challenging for the organizations to keep the employees motivated and focused to achieve the organization goals. While the Islamic banking concept has been in practice for more than 40 years around the world, it was introduced in Kenya in the year 2007 with 2 fully Shariah compliant banks while many other windows offering the concept were also accessible to the Kenyan public. This also brought additional challenges to the banking sector and the employees who were career conventional bankers to focus on the idelologies of the Islamic banking practice. The aim of this study was to determine the moderating effect of psychosocial work environment on the relationship between shared vision and employee performance. The explanatory research design was adopted for this study.The target population was considered to be 600 employees and the sample size of 173 was obtained using the proportionate sampling method from three banks offering Islamic Banking products. Data was collected using five point Likert scale. Data was analyzed using multiple regression analysis. The study revealed that shared vision (β=0.7511 p- value 0.00) as an organizational memory tool had a statistically significant effect on employee performance. The study further failed to reject the null hypothesis for the moderating effect of psychosocial work environment on the relationship between shared vision and employee performance (β=0.02672, p-value=0.104. This study concludes that shared vision is important for employee performance, however, psychosocial work environments does not affect the vision and goals of individuals and their performances. It is therefore recommended that Banks practicing Islamic Banking concept should concentrate in developing and sycnchronising the goals of individuals and those of the bank. This should be done by developing career paths for all job descriptions and criteria to be available for the staff so as to aim precisely for themselves and inturn grow the performance of the organization as a whole.
Keywords: Organizational Memory, Organizational Learning, Shared Vision, Goal Setting Theory, Psychosocial Work Environment, Islamic Banking Practice.
Title: The Moderating Effect of Psychosocial Work Environment on the Relationship between Shared Vision and Employee Performance in the Kenyan Islamic Banking Segment
Author: Salyani, Mohamed Shakeel, Maru Loice, Korir Michael
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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