Functional Strategies and Performance: Empirical Evidence from Commercial Banks in Nakuru County in Kenya

Abstract

Business environment is characterized by high turbulence in organizational performance. Functional strategies play a role as banks aim at customer retention, increased profits, increased sale volumes, efficiency and increased market share. The research established the effect of operational, marketing, finance and human resource management strategies on organizational performance. The study used descriptive research design with a target population of 205. Questionnaire was used to collect primary data which was analyzed using descriptive and inferential statistics with the help of Statistical Package for Social Sciences software. Findings indicated that operational, marketing, finance and human resource management strategies affected the organizational performance. The correlation between the operational strategies and marketing together with human resource management strategies was negative and insignificant. The correlation between operational and finance strategies was positive and insignificant. Operational, finance, marketing and human resource strategies were not significant to organizational performance. It is recommended that functional strategies be improved.