EFFECT OF INFORMATION TECHNOLOGY ON HUMAN RESOURCE MANAGEMENT IN THE BANKING INDUSTRY IN KENYA: A CASE OF KCB BANK KENYA LIMITED

OMBOK MILDRED JUDITH, DR WERE SUSAN

Abstract


The purpose of this study was to investigate the effects of Information Technology on Human Resource Management in KCB Bank Kenya Limited, Nairobi County, Kenya. The study objectives were to establish the effect of communication networks on human resource management in KCB Bank Kenya Limited, Nairobi County, Kenya, to examine the effect of management information systems on human resource management in KCB Bank Kenya Limited, Nairobi County, Kenya, to identify the effect of administration automation on human resource management in KCB Bank Kenya Limited, Nairobi County, Kenya and to determine the effect of E-Recruitment and Selection Process on human resource management in KCB Bank Kenya Limited, Nairobi County, Kenya. This study employed a descriptive survey research design. The targeted respondents were 435 respondents comprising of 6 managers and 429 employees from six departments. The sample size was 185 respondents and stratified sampling was used to sample the bank’s departments. A census sampling was used to select the managers and simple random sampling was used to select the employees from each stratum. Data was collected through the use of questionnaires for the employees and interviews for the managers. The study established that there was positive correlation between communication networks and human resource management. The study also found that management information systems positively affect human resource management in the banking industry in Kenya. The study revealed that there was a strong positive correlation between administration automation and human resource management. The study also found that e-recruitment and selection process would positively affect human resource management in Kenya Commercial Bank. There is need for the management of commercial banks to embrace the use of internet and tele-working as it will help the bank to have quality and efficient communication network. The improvement of the efficiency of human resources and their ability to communicate in suitable corporate culture should therefore become one of the key priorities of companies through communication networks. This study recommends that management of commercial banks should train it employees on their management information system, this will help employee to complete their duties at speeds  and  better  usage  technology so as to improve on efficiency and productivity. There is need for the management of the banking industry to adopt advanced technology which will enable automation of HRM functions ranging from training and development, compensation to performance management so that the banks stay competitive and meet their HRM strategic objectives.


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