Employee Performance Hinged on Internal Capability: A Peep Into Deposit Money Banks in Anambra State

Abstract

This work determined the influence of internal capabilities on employee performance in selected deposit money banks in Anambra state. Specifically, however, the study assessed the effect of employee training on customer satisfaction and identified the nature of the relationship between operational flexibility and customer retention. This study was anchored on the Knowledge Base Theory. A survey research design was deployed for this work with a population of all the staff of 6 selected deposit money banks in Anambra state Nigeria, which was put at 1,110 staff. However, a sampled size of 285 was used, after the application of Krejcie and Morgan's (1970) sample size determination formula. Data for the study was collected using a structured questionnaire, which was subjected to both validity and reliability tests. The data analysis technique for the study was simple regression and hypotheses were tested at a 5% level of significance. The results revealed that employee training has a statistically significant effect on customer satisfaction (r = .970; R-Square = .940, P-value < 0.05) and that there is a statistically significant relationship between operational flexibility and customer retention in DMBs in Anambra state (r = .971; R-Square = .943, P-value < 0.05). The study therefore concluded that internal capabilities have an influence on the performance of employees because training and operational flexibility were seen to be positively related to customer satisfaction and retention respectively. On the strength of this, it was recommended that the management of the banks should continue training and retraining employees especially in the area of customer relations as it has been seen to be responsible for customer satisfaction in DMBs in Anambra state. Keywords: Employee Performance, Internal Capability, Employee Training, Customer Satisfaction, Operational Flexibility and Customer Retention.