Management by objectives and employee performance: a case of Centenary bank Kampala

Abstract

The study was titled "Management by Objectives: A Case of Centenary Bank, Kampala" The purpose of the study was to establish the relationship between management by objectives and employee performance in Centenary Bank, Kampala. The specific objectives of the study were; to establish the relationship between participative goal and employee performance, examine the relationship between participative decision making and employee performance and to assess the relationship between extrinsic motivation and employee performance in Centenary Bank, Kampala. The study used a cross sectional research design and qualitative and quantitative approaches were used. The study used stratified sampling. The study used a sample of 110 respondents. The findings were: in objective one participative goal setting had a weak relationship with employee performance, in objective two participative decision making had a moderate relationship with employee performance; while in objective three extrinsic motivation was not related to employee performance.The study concluded that participative goal had a moderate but positive significant relationship with employee performance in Centenary Bank, participative decision making influenced performance of employees in Centenary Bank fairly strongly and extrinsic motivation cannot account for improvement of employee performance in Centenary Bank. The study recommended that to get the best out of participative goal, bank employees need to have targeted training, participative decision making needs to happen routinely and not something management pays lip service to and Centenary bank management and board need to consider alternative options like investing in intrinsic motivation on top of the extrinsic motivation, and perhaps the employees may respond to this fresh approach.