SERVICESCAPE, STAFF MOTIVATION AND EMPLOYEE PERFORMANCE IN COMMERCIAL BANKS IN KENYA: A SURVEY OF MOMBASA COUNTY

Abstract

The purpose of the study was to establish the relationship between services cape and employee performance in commercial banks in Kenya by conducting a survey in Mombasa County. Specifically, the study endeavored to determine the relationship between ambient conditions and employee performance, to determine the relationship between spatial layout and employee performance; to determine the relationship between signage and employee performance and to establish whether services cape leads to motivation of employees leading to employee performance in commercial banks in Kenya. The study adopted a mixed correlational design. The population of the study comprised of all individuals in employment with commercial banks based in Mombasa County. The primary data was collected through a semi-structured questionnaire obtained from one hundred and fifty (150) participants. To help in the determination of the relationship between services cape and employee performance, a regression model was used. The study found out that commercial banks largely put in place measures to ensure ambient working conditions, spatial layout dimensions of services cape and adopted the use of signage to a large extent. Further, it was found out that employee motivation moderates the relationship between services cape and employee performance. The study also found out that spatial layout and employee performance had a low positive significant correlation while employee motivation and employee performance was found to have a moderate positive and significant correlation and the correlation. The study also found out that ambient conditions and employee performance have a low positive but non-significant correlation while at the same time, signage and employee performance have a low positive but insignificant correlation. The regression analysis found a significant relationship between services cape and employee performance. The study therefore concluded that there is a significant relationship between services cape and employee performance. The study also concluded that commercial banks have adopted services cape dimensions including spatial layout, ambient conditions and signage. Regarding employee motivation, the study concluded that the commercial banks realized improved employee motivation due to services cape by reducing stress levels, improving the self-esteem of employees, reduction of levels of absenteeism and reduction of staff turnover. The researcher recommends that managers of commercial banks should find mechanisms of improving the initiation and use of services cape dimensions. This is because banks are often the focus of the public and hence must provide a good services cape to attract them into banking, besides improving market share. The researcher also recommends that the commercial banks should create effective services cape elements such as ambient condition, space function, sign, symbols and artifacts.