employee performance, staff training and customer

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EMPLOYEE PERFORMANCE, STAFF TRAINING AND CUSTOMER SERVICE QUALITY IN KENYA BUREAU OF STANDARDS

ABDALLAH SHAMIM MUSTAFA

A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF MANAGEMENT AND LEADERSHIP IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION OF THE MANAGEMENT UNIVERSITY OF AFRICA

SEPTEMBER, 2018

DECLARATION This research project is my original work and has not been presented for a degree to any other University.

Signature Name: Shamim Mustafa Abdallah Reg. No.: MBA/8/00065/3/2016

Date:

This research project has been submitted for examination with my approval as University Supervisor.

Signature Dr. Washington Okeyo School of Management and Leadership The Management University of Africa

Date

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DEDICATION This research project is dedicated to my wonderful family for accepting and understanding all the challenges experienced while undertaking this career and my research project. I also thank the Almighty for giving me the strength and my family for providing the moral support, cooperation and understanding that I needed during this period.

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ACKNOWLEDGEMENT First, I wish to thank the Almighty God for the gift of life, strength, perseverance, and giving me wisdom and blessings that which He has bestowed upon me throughout this entire research project. Secondly, I deeply thank my supervisor Dr. Washington Okeyo for his academic insight and guidance both as a supervisor and a mentor throughout my MBA studies and this project. More so, for believing in me, my potential abilities and consequently for his invaluable support, and to the management of MUA for the facilitation in provision of facilities and conducive environment and opportunity towards the great experience. I also extend gratitude to my classmates whose presence offered me the psychological motivation and need to learn. Lastly, my deep special thanks go to my family for their support, encouragement and understanding in accomplishing and making it possible for me to achieve my dreams and aspirations. May Almighty God bless you all abundantly, today and forever!

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TABLE OF CONTENTS CONTENT .................................................................................................................. PAGE DECLARATION............................................................................................................... ii ACKNOWLEDGEMENT ............................................................................................... iii TABLE OF CONTENTS ..................................................................................................v LIST OF TABLES .......................................................................................................... vii LIST OF FIGURES ....................................................................................................... viii ACRONYMS AND ABBREVIATIONS ........................................................................ ix OPERATIONAL DEFINITION OF TERMS .................................................................x ABSTRACT ...................................................................................................................... xi CHAPTER ONE: INTRODUCTION 1.0 Introduction ....................................................................................................................1 1.1 Background of the Study ...............................................................................................1 1.1.1 Employee Performance ..........................................................................................2 1.1.2 Staff Training .........................................................................................................3 1.1.3 Customer Service Quality ......................................................................................4 1.1.4 Profile of Kenya Bureau of Standards ...................................................................5 1.2 Statement of the Problem ...............................................................................................8 1.3 Objectives of the Study ................................................................................................10 1.3.1 General Objective.................................................................................................10 1.3.2 Specific Objectives...............................................................................................10 1.4 Significance of the Study .............................................................................................10 1.5 Scope of the Study .......................................................................................................11 1.6 Limitations of Study ....................................................................................................12 1.7 Chapter Summary ........................................................................................................12 CHAPTER TWO: LITERATURE REVIEW 2.0 Introduction Literature Review ....................................................................................13 2.1 Theoretical Literature Review .....................................................................................13 2.1.1 Expectancy Theory ..............................................................................................13 2.1.2 Social Cognitive Theory .....................................................................................14 2.1.3 Reinforcement Theory ........................................................................................14 v

2.2 Empirical Review.........................................................................................................16 2.2.1 Employee Performance and Customer Service Quality .......................................16 2.2.2 Employee Performance, Staff Training and Customer Service Quality ..............17 2.2.3 Combined effect of Employee Performance and Staff Training on Customer Service Quality ..............................................................................20 2.3 Research Gaps ..............................................................................................................22 2.4 Hypotheses of the Study ..............................................................................................25 2.5 Conceptual Framework ................................................................................................25 2.6 Operationalization of Variables ...................................................................................26 2.7 Chapter Summary ........................................................................................................27 CHAPTER THREE: RESEARCH METHODOLOGY 3.0 Introduction ..................................................................................................................28 3.1 Research Design...........................................................................................................28 3.2 Target Population .........................................................................................................28 3.3 Sample and Sampling Technique.................................................................................29 3.4 Data Collection Instruments ........................................................................................30 3.5 Pilot Study....................................................................................................................31 3.5.1 Validity of the research instrument ......................................................................31 3.5.2 Reliability of the research instrument ..................................................................32 3.6 Data Collection Procedure ...........................................................................................32 3.7 Data Analysis and Presentation ...................................................................................33 3.8 Ethical Considerations .................................................................................................34 3.9 Chapter Summary ........................................................................................................34 CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION 4.0 Introduction ..................................................................................................................35 4.1 Response Rate ..............................................................................................................35 4.2 Test of Instrument Reliability and Validity .................................................................36 4.3 Demographics ..............................................................................................................36 4.3.1 Gender ..................................................................................................................36 4.3.2 Age .......................................................................................................................37 4.3.3 Education..............................................................................................................38 vi

4.3.4 Experience ............................................................................................................40 4.3.5 Division ................................................................................................................40 4.3.6 Branch Office .......................................................................................................41 4.3.7 Level of Hierarchy ...............................................................................................42 4.4 Descriptive Statistics....................................................................................................43 4.5 Correlation Analysis ....................................................................................................51 4.6 Regression Analysis .....................................................................................................53 4.7 Discussion of the Findings ...........................................................................................61 4.7.1 Relationship between Employee Performance and Customer Service Quality ...61 4.7.2 Mediation of Staff training on the relationship between Employee Performance and Customer Service Quality ......................................................................................62 4.7.3 Joint Effect of Employee Performance, Staff Training and Customer Service Quality ...........................................................................................................................63 4.8 Chapter Summary ........................................................................................................64 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.0 Introduction ..................................................................................................................65 5.1 Summary of the Findings .............................................................................................65 5.1.1 Relationship between Employee Performance and Customer Service Quality ...50 5.1.2 Mediation of Staff training on the relationship between Employee and Customer Service Quality ..............................................................................................................65 5.1.3 Joint Effect of Employee Performance, Staff Training and Customer Service Quality ...........................................................................................................................66 5.2 Conclusions ..................................................................................................................67 5.2.1 Relationship between Employee Performance and Customer Service Quality ...70 5.2.2 Mediation of Staff training on the relationship between Employee and Customer Service Quality ..............................................................................................................70 5.2.3 Joint Effect of Employee Performance, Staff Training and Customer Service Quality ...........................................................................................................................72 5.3 Recommendations for further study.............................................................................73 5.3.1 Employee Performance ........................................................................................73

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5.3.2 Staff Training .......................................................................................................74 5.3.3 Customer Service Quality ....................................................................................75 5.4 Suggestions for further research ..................................................................................77 REFERENCES .................................................................................................................79 APPENDIX I: LETTER TO RESPONDENTS................................................................86 APPENDIX II: RESEARCH STUDY QUESTIONNAIRE ............................................87 APPENDIX III: PROPOSED RESEARCH WORKPLAN .............................................94 APPENDIX IV: LETTER AND PERMIT FROM NACOSTI ........................................96

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LIST OF TABLES Table 2.1

Research Gaps

Table 2.2

Operationalization of Variables

Table 3.1

Target Population

Table 3.2

Research Study Sample Size

Table 3.3

Model summary for testing

Table 4.1

Response Rate

Table 4.2

Summary of Cronbach’s Alpha Reliability Coefficient

Table 4.3

statements relating to the effect of employee performance on customer service quality

Table 4.4

Challenges experienced at KEBS

Table 4.5

Frequency on how often employees conduct knowledge transfer

Table 4.6

How staff training has changed perception of employees

Table 4.7

Statements relating to the effect of staff training on customer service quality

Table 4.8

Number of staff trainings to be undertaken

Table 4.9

Need of improvement on customer service quality

Table 4.10

Table showing joint effect between employee performance, staff training and customer service quality

Table 4.11

Correlation analysis for independent and dependent variables

Table 4.12

Model Fitness for the EP and CSQ

Table 4.13

Analysis of Variance for EP and CSQ

Table 4.14

Regression of Coefficients for EP and CSQ

Table 4.15

Model Fitness for the Mediating effect of ST on EP and CSQ

Table 4.16

Analysis of Variance for Mediating effect of ST on EP and CSQ

Table 4.17

Regression of Coefficients for Mediating effect of ST on EP and CSQ

Table 4.18

Model Fitness for the ST and CSQ

Table 4.19

Analysis of Variance for ST and CSQ

Table 4.20

Regression of Coefficients for ST and CSQ

Table 4.21

Combined Model Fitness for the EP, ST and CSQ

Table 4.22

Combined Analysis of Variance for EP, ST and CSQ

Table 4.23

Combined Regression of Coefficients for EP, ST and CSQ

Table 5.1

Summary of results

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LIST OF FIGURES Figure 2.1

The relationship between Independent Variable and Dependent Variable

Figure 4.1

Gender of respondents

Figure 4.2

Age of respondents

Figure 4.3

Level of Education for respondents

Figure 4.4

Working Experience for respondents

Figure 4.5

Division/Department for respondents

Figure 4.6

Branch office/workstation

Figure 4.7

Level of hierarchy

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ABBREVIATIONS AND ACRONYMS KEBS

Kenya Bureau of Standards

MBO

Management by Objectives

BSC

Balanced Score Card

ISO

International Organization for Standardization

IEC

International Electro-Technical Commission

TQM

Total Quality Management

SPSS

Statistical Package for Social Science

HRM

Human Resource Management

SERVQUAL

Service Quality Model

SQMT

Standardization, Quality Assurance, Metrology and Testing

HR

Human Resource

JKIA

Jomo Kenyatta International Airport

HRD

Human Resource Development

NHIF

National Hospital Insurance Fund

NACOSTI

National Commission for Science, Technology & Innovation

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OPERATIONAL DEFINITION OF TERMS

Employees

“employee” means a person employed for wages or a salary and includes an apprentice and indentured learner, as per Employment Act, of 2007. Employees are staff employed to work in an organization on various terms either contract, temporary or permanent and pensionable

Performance

Performance is the measure of output vis-à-vis the inputs.

Training

Training is the processes used to input more skills to the employees and give them more relevant information to enable them carry out quality duties effectively

Standard

Document that provides rules or guidelines to achieve order in a given context.

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ABSTRACT The purpose of this study was to determine the effects of employee performance and staff training on customer service quality at the Kenya Bureau of Standards. The main objectives was: To determine the relationship between Employee performance and Customer Service Quality in KEBS, To establish the mediating effect of Staff Training on the relationship between employee performance and customer service quality in KEBS and to determine the joint effect of Employee Performance and Staff Training on Customer Service Quality in KEBS. The research design used was Descriptive research design. The target population of the employees as at 2018, HR records was 1015. The sample size derived was 279 using the Cochran’s formula. The respondents ranged from Top, Middle and Operational levels from various divisions/departments. A stratified random sampling was used in the study analysis. Data collection was through a well-structured questionnaire, which was self-administered and was analyzed using percentage and frequencies. Pearson Correlation Coefficient was used for correlation analysis while simple linear regression model was used for regression. The data analysis tool used were Statistical Package of Social Scientists (SPSS) and Microsoft Excel. Findings of the study revealed that employee performance was impacted by various challenges. These were provision for fair remuneration, use of monitoring and measuring tool through favors, change in organization culture, improved communication, leadership, tribalism. The study concluded that staff training improved employees performance, increased knowledge and skills, and increased morale. The study also revealed the relevance of observing customer service quality leads to increased customer satisfaction, retention, improved productivity, increased revenue generation and possibly improved organizational reputation. The study found that employee performance, staff training and customer service quality as significantly and positively related. The study recommended that both employee performance and staff training be objectively monitored and evaluated and fair rewards aligned to it, in order to increase morale of the employees, for the employees to improve the customer service quality.

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CHAPTER ONE INTRODUCTION 1.0 Introduction This chapter covers the introduction and background of the research study, statement of the problem, objectives of the study, research questions, significance of the study, scope of the study, limitations of the study and the chapter summary. 1.1 Background to the Study Today, no matter where you are in the world, one thing is expectations for customer service is increasing at an alarming rate and notably this cannot be underestimated because, customers

have

become

more

informed

and

are

fully

aware

of

their

expectations/needs/wants on what to expect from organizations. According to a research study by Kiragu (2015) indicated that there has been intense competition for delivery of quality services which serves as a key source of competitive advantage. Service industry sectors have become one of the most prominent and thriving sector of the economy as a result of increased globalization and competition across geographical boundaries in both developed and least developed countries. In Kenya, the sector has continued to span the socio-economic development by leading to rise in the GDP of 5.8% growth in 2016 from service sectors such as agriculture, forestry and fishing (15.2%), manufacturing (6.3%), transport and storage (9.7%), information and communication (6.1%), construction (8.2%), real estate (12.3%) and financial services (7.3%) as per Kenya Economic Report, 2017. Customer Service in service firms is highly interactive in nature. Customers interact with the firm physical facilities, personnel, and tangible elements like the price of the service. The success of any service firm depends on how its performance is judged and perceived by the customer. Today, Service Firms are becoming highly competitive, so, it is essential for service firms to provide high quality services for their survival (Khaemba, 2017).

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Chepkorir (2015) stated that service quality is a comparison of a customer’s expectations with the actual performances of the services they seek for. Further the researcher also states that service quality is crucial but though to a profit making enterprises when attracting more customers. The quality of service delivery can be achieved in the public sectors through public policy reforms that emphasize the need to enhance the quality of services that are provided to the public (Ng’aru & Wafula 2015). Yator (2012) in his study conducted in the hospitality industry on Lake Bogoria to determine the effect of service quality on customer satisfaction revealed that wooing, wowing and winning is the strategy today to winning customers and niching on large market share be it in hospitality industry, banking industry or any other service industry. Yana (2015) concluded in his study that to succeed, or to survive, companies must learn new philosophies in these industries. Winning is possible if companies are also focused on the customer with the highest value being considered as a fulfilment of the target group wishes. Companies have to generate customers and not only to provide services (Kotler, 2013). 1.1.1 Employee Performance Githinji (2014) defines Performance as the measure of output vis-à-vis the inputs. Employees are staff employed to work in an organization on various terms either contract, temporary or permanent and pensionable. Employee Performance shows the effectiveness and efficiency that serves as payment to organizational goals that is dependent on factors such as performance appraisals, employee motivation, employee satisfaction, compensation, Job security, organizational structure etc. Employee Performance involves the work related activities that organizations expect from employees as to their service output of how well they execute those tasks assigned (Njeri, 2016). Employee performance also refers to the individual behaviours that are relevant to achievement of organizational goal and which are under the control of individual employees themselves (Swabra, 2014). Measuring employee performance involves the evaluation of the main tasks completed and accomplishments of the employee in a given period in comparison with the goals set at the 2

beginning of the period. Shaout and Yousif (2014) indicated that there are several appraisal methods used for employee performance including and not limited to traditional and modern methods. Traditional method refers to the older methods of performance appraisal such as ranking methods, Graphic rating scale, the Critical incident method. (Dessler and Gary, 2011). Modern measurement of employees performance include Balanced Score Card (BSC), Six Sigma, Management By Objectives (MBO), 360 Degree and 720 Degree method of evaluation (Michael et al, 2014). With increased competition on services offered by KEBS, measuring of service quality through the SERVQUAL model against employee performance will help the organization determine its level of motivation to its employees, noting the gaps or areas for improvement, increasing productivity and delivering effective services to its customers and instituting modern methods of improving the quality of customer service delivery for long term commitment, loyalty and retention of potential customers. 1.1.2 Staff Training Amadi (2014) did a research on the effect of training and development on employees performance at Safaricom Limited call centre and defined training as a type of activity which is planned, systematic and it results in enhanced level of skill, knowledge and competency that are necessary to perform work effectively. Training and Development are often used to close the gap between current performance and expected future performance. The term training refers to the acquisition of knowledge, skills, and competencies because of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. Training has specific goals of improving one's capability, capacity and performance at the work place or off the place (Swabra, 2014). Organizations that are dedicated to generating profits for its owners, are able to provide quality service to customers and beneficiaries, are dedicated to investing in the training of its employees.

According to Amadi (2014), training can achieve high morale and

motivation, lowers cost of production, lowers labour turnover and rate of absenteeism. Training is most important for employees development as it enables them achieve self3

fulfilling skills and abilities, reduces operational costs, enhances their performance for better results and limits organizational liabilities as concluded in the research study on effects of training and development on employee performance at Kakamega County General Hospital, Kenya (Khaemba, 2017). Ahmed (2014) conducted a study at NHIF Machakos county on effect of training on employee performance in public sector organizations and emphasized that evaluation of staff training is necessary to determine the value in the efficiency and effectiveness of a training program on trainees’ performance and behavior. Measuring is useful in fostering management support for the training program. Further, the researcher asserts and agrees that the evaluation schemes that many corporate training programs use is the Kirk Patrick’s four level method of evaluation that is based on reaction, learning, behavior and results. 1.1.3 Customer Service Quality According to Ochieng (2016), quality has been defined by the international organization for standardization (ISO) simply as a relative concept encompassing the characteristics (distinguishing feature such as physical, sensory, temporal or functional) of a service that meets the requirements of the customer and is rated as high quality, where quality and customer satisfaction is concerned. Quality is measured on subjective aspects such and friendliness and objective aspects such as customer expectations as per the ISO 9001:2015 Quality Management System Requirement. Kotler and Bloom (2013) refers to services as “any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.” Customer service is defined as an organization’s ability to meet the needs and desires of its customers. Excellent customer service is a vital part of marketing for any existing business/organization. It is the ability of an organization to consistently exceed the expectations of its customers. Customer service is displayed in the presentation of an organization’s facilities as well as in the attitude, knowledge and behavior of its employees.

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Customer service begins before a customer arrives and ends long after the customer leaves the enterprise (Enizan, 2011). Kotler (2013) defined a customer is a person who brings us his wants. It is our job to handle them profitably to him and to ourselves. Watiki (2014), Customer satisfaction is defined as the consumer’s fulfilment response to a product or service where pleasurable level of consumption-related is fulfilled. The customers are satisfied when their judgement of service equals or exceeds their expectation as illustrated; P=E (Satisfied), P≥E (Delighted), P≤E (Dissatified). Perceived customer service quality has been conceptualized in literatures and considered as an evaluative construct is the result of the comparison of expectations before services with real experience of service and is considered as the difference between the expectations of service receivers and their perception that meets or exceeds customers expectations and it is a critical determinant of customer satisfaction (Salim, 2016). Good service quality is generally regarded as a way to retain existing customers and acquire new ones, reduce costs, enhance corporate image, generating positive word-of-mouth, recommendation and improving profitability as indicated by (Lau et al, 2013). Gilani (2013) stated that quality of service can help an organization differentiate itself from other organizations and in turn achieve a sustainable competitive advantage. The methods used to measure service quality according to Parasuraman et al (1985) is the five dimensions of service from the SERVQUAL model, also known as the gap model which has been proven to be one of the best ways to measure the quality of services provided to customers. It is evaluation of service quality from the customers perspective based on reliability, responsiveness, assurance, empathy and tangibility dimensions. 1.1.4 Kenya Bureau of Standards In the global world, standards and standardization have become a major issue that have been adopted by countries that possibly contribute to economic development through globalization. Internationally among them are International Standardization Organization 5

bodies, International Electro-Technical Commission, Total Quality Management and Six Sigma that have been used to drive industries success and enhance business continuity. According to ISO guide 2004 report, a Standard is a document established through a consensus and approved by a recognized body that provides for common and repeated use, rules, guideline or characteristics for activities or their results aimed at achieving the optimum degree of order in a given context. Standards are a vehicle for sharing knowledge, technology and good practices. ISO Guide (2014) elaborates that ISO (The International Organization for Standardization) and IEC (International Electro-Technical Commission) as worldwide federations of national standards bodies (ISO member bodies and IEC national committees). ISO has a membership of some 160 national standards bodies from countries large and small, industrialized, developing and in transition, in all regions of the world. ISO’s portfolio is over 18,600* standards that seeks to provide business, government and society with practical tools for all three dimensions of sustainable development, economic, environmental and social. ISO Standards make a positive contribution to the world we live in as they facilitate trade, spread knowledge, disseminate innovative advances in technology and share good management and conformity assessment practices. The work of preparing IS (International Standards) is normally carried out through ISO and IEC technical committees. Each member body interested in a subject for which a technical committee has been established has the right to be represented on that committee. International organizations, government and non-governmental, in liaison with ISO or IEC, also take part in the work. ISO collaborates closely with IEC on all matters of electrotechnical standardization. Within the East African Community (EAC) the Standards bodies that contribute to driving the industries and enforcement of standards and policies that facilitate trade regionally and ensures that goods and services are up to standards include the regional Inter-governmental organization of the Republics of Kenya, Uganda, Burundi, Rwanda and Tanzania, with its Headquarters located in Arusha, Tanzania. The East African Heads of State signed the 6

Treaty for the establishment of the EAC that aid in various objectives to develop policies and programs aimed at widening and deepening cooperation among the partner states in economic, social, cultural and political fields for the mutual benefit. In addition, the partner countries seek to establish among themselves a customs union, a common market, subsequently a monetary union and ultimately a political federation to strengthen, regulate and enhance an accelerated harmonious, equitable and sustained economic development. The EAC Treaty also provides for cooperation among the partner states on standardization, quality assurance, metrology and testing (SQMT). It provides a regulatory framework for development and adoption of East African Standards by member states to deepen the integration and promote free movement of goods within the EAC, protecting the health and safety of the consumers, animals, plant and the environment in general, prevent deceptive practices in business transactions, and increase competitiveness and productivity. The East African Standards Committee executes its mandate through technical sub-committees (STC) namely: Standards, Quality Assurance and Accreditation, Metrology and Testing. In Kenya, the standard body responsible for facilitation of quality goods and services in the market is the Kenya Bureau of Standards. The Kenya Bureau of Standards (KEBS) was established by an Act of Parliament of the Standard Act Cap 496 of the Laws of Kenya. It started its operations in July 1974. KEBS has 1015 employees out of which 770 employees are at the Headquarters in Nairobi inclusive of the Nairobi branch offices (Per human resource records, as of July, 2018). The services offered by KEBS include laboratory testing, standards development and implementation, provision of standards information services, sale of Kenya and Foreign standards, product certification (issuance of Diamond Mark of Quality), handling of consumer/customer complaints, calibration of measuring instruments and maintenance of standards of measurement, quality inspection of imports at ports of entry, ISO 9000 certification, ISO 14000 certification, training programmes and technical advice. KEBS activities include standards development, testing and calibration, quality assurance, inspection and certification, training as well as support activities like HR, procurement, 7

administration, marketing, finance etc. As a government body, KEBS is supported by the GoK, it provides services to Kenya’s citizens and industry in terms of standardization. KEBS has Regional offices in Mombasa, Kisumu, Eldoret, Nyeri, Busia, Namanga, Malaba, Isebania and Garissa. The KEBS has an Apex known as the National Standards Council (NSC). This Apex formulates policies and supervises the institution and is a member of the International Organization for Standardization (ISO) which has a network of 163 national standards bodies. 1.2 Statement of the problem For the past three years, KEBS had experienced a decline in customer service satisfaction based on the target set for achievement with varying degree level of poor performance from employees. According to an IPSOS (2017) report, overall customer satisfaction at KEBS was at 69.7% which was considered low based on the objective to be attained of 80% customer satisfaction level. It was observed that there had been decline in customer satisfaction at KEBS per the customer satisfaction survey report, on customer care trend analysis for customer complaints as received and documented for the years 2015/2016, 2016/2017 and 2017/2018. The analysis was as a result of increased customer complaints, staff absenteeism, use of alcohol/drugs, delays, poor customer service leading to lack of attainment of targets set/objectives/goals, loss of customers, declining profits/low revenue generation due to lower levels or in-service requests on services rendered. In this regard, the problems have had an effect on the output to customers based on the customer service quality delivery. Onikoyi (2015) revealed that the rate of excessive staff absenteeism leads to considerable loss to the organization because work schedules are upset and delayed and costly where management has to give overtime wages to meet the delivery turn-around timelines. On the other hand, increased customer complaints, poor handling of complaints and lack of skills by employees to handle complaints will lead to loss of customer loyalty, loss of customers and in the process tarnish the reputation of the organization to its employees as well as the general public and stakeholders. In addition, delays in response time and lack of customer follow-ups affects customer service quality as it tends to increase the rate of 8

complaints received thereby posing a challenge for organization to achieve its targeted goals and objectives. Due to the increasing customer demands, businesses are working tirelessly and continuously striving to improve on the quality of service to their customers triggered mostly by increased competition. Competition in the service industry organizations especially, on service delivery and the quality of service offered to customers, has become a rampant issue that organizations are still grappling with, and are forcefully working to develop strategies to counter service quality. Majority of organizations are customer focused oriented, but statistics depicted that only a few were able to keep up with the consistency, irrespective of each and every organization trying to keep a heads lead (Bloom, 2013). With reference to a Global customer service report (2015) on customer service, the customer behavior is triggered due to poor customer service that seldom leads to loss of revenues. This behavior could result to customers switching companies where 66% of customers switch companies as a result of being kept on hold for long, lack of staff knowledge, rude and unhelpful staff, speaking to multiple agents over and over. Thus, consumers impulse to punish bad service is relatively more readily available than to reward delightful service especially in both phone-based and self-service. Mose (2016) research study found that quality of customer service in the banking industry at the Ecobank Kenya, had increased despite the challenges the bank experienced. Customers faced abnormal frustrations such as system malfunctions, lack of feedback and lack of satisfaction on the bank’s services were some of the notable worrisome indicators of the poor customer services rendered. As a result, the bank experienced low customer satisfaction levels, low customer loyalty and retention levels that negatively impacted on the overall organization’s performance. Ochieng (2016) research study focused on service quality in the aviation industry in Kenya. The researcher stated that in meeting the growing demand for customer satisfaction, the 9

production and service industry had adopted customer focus as a long run initiative for sustainable competitive advantage.

With the aviation industry in Kenya currently

contributing 1.1% of the national GDP as per the (Kenya Association of Travel Agent, 2016) as quoted in the research study (Ochieng, 2016). Some of the challenges experienced in the aviation industry that had an effect on service quality and the customer satisfaction was due to lack of adherence to flight schedules, appearance of staff uniform, problem solving interests for complaints, safety record of the airline, capability of delivering what is promised, promptness of service, consistency of service, convenience of working hours among others. The objective of the study focused on coming up with ways on how to improve employee performance, staff training and customer service quality consistently at KEBS by suggesting appropriate and effective strategies to help administer possible solutions. Further the study established the research gaps by showing the relationship between employee performance and customer service quality indicating how it affected the customer satisfaction levels through loss of customers, delays, increased complaints, poor sales, low revenue and productivity among others. In addition, addressed the gap on the mediating effect of staff training on employee performance and customer service quality and joint effect of employee performance, staff training and customer service quality. 1.3 Objectives of the Study The main objective of the study was to determine the effects of employee performance and staff training on customer service quality at the Kenya Bureau of Standards. 1.3.1 General Objective The general objective of the study was to analyze the influence of employee performance and staff training on customer service quality at the Kenya Bureau of Standards 1.3.2 Specific Objectives The specific objectives of the study were;

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i.

To determine the relationship between employee performance and customer service quality in KEBS

ii.

To establish the mediating effect of staff training on the relationship between employee performance and customer service quality in KEBS

iii. To determine the joint effect of employee performance and staff training on customer service quality in KEBS 1.4 Significance of the study The findings from this study have implication to academia, theory and in policy formulation and to industry and practice. The study is significant to KEBS and other government/parastatal bodies. The study focused and addressed key areas that, drive and boost customer service and propel customer service initiatives that spur economic growth. More so, gave guidelines and suggestions on how customer service quality delivery can be achieved, to enable KEBS achieve its goals and objectives, and more specifically in attaining and maintaining targets set for customer satisfaction, that will consequently lead to improved customer service handling, customer satisfaction and excellent customer service delivery. Further, the result from this findings are significant to organizations in the service industry, in mapping out possible roadmaps to enhance customer service quality at greater lengths, that can be facilitated in spurring growth in the modern 21st tech savvy century and for the Big 4, President’s Agenda for (Manufacturing, food security, housing and health care), through listening to the voice of the customer so as to design the blue print, that focuses directly on customer’s functional and emotional need and also through automation. The result of the findings outlines the benefit to the policy makers in formulating strategies of improving customer satisfaction and customer experience through customer service quality delivery. In addition, the study will also provide a networking forum approach, for stakeholder’s to counter awareness on innovative practices to be implemented. This can be facilitated in forums such as the customer service events, that are to be organized.

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1.5 Limitations of the study Due to the confidentiality of information, organizations advocate for integrity and secrecy to every kind of information, that is made publicly, and to the contrary, that can be detrimental to the image/reputation of the organization. Thus, anyone conducting research is subjected to providing approvals for ethics consideration, through following and adhering to the written guidelines through policies and procedures to facilitate access to information. The researcher had to seek authority to conduct the study, by obtaining a letter from the Management University of African, an online application submitted to the National Commission for Science, Technology and Innovation (NACOSTI), through payment and KEBS Management (HR department). During the study, for data collection, the researcher encountered challenges such as inadequate time to collect and analyse data, reluctance from some of the respondents, lack of understanding to some of the questions documented in the questionnaire, some questions were left blank that forced the researcher to analyse for a criterion for such question, addressed as (not applicable). Consequently, the respondents were unwilling to share important information regarding the study, due to fear of victimization. To realize this, the researcher assured the respondents of integrity and anonymity (no mention of names or marital status preferences), to encourage the respondents to share their views and opinions openly for purposes of the research study only. 1.6 Scope of Study The study focused on the effects of employee performance and staff training on customer service quality in parastatals in Kenya and the research was conducted at the KEBS office. The researcher interviewed employees from the senior management level, middle management and employees at the support/operational levels as structured. The researcher adopted a descriptive research design.

The researcher targeted a population 1015

employees of the Kenya Bureau of Standards. The researcher determined the sample size using the Cochran formula and arrived at 295 respondents for the sample size. The study was carried out between the months of January, 2018 through to August, 2018.

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1.7 Chapter Summary This Chapter has outlined the background recap of the research on employee performance. It also highlighted on the importance of employee performance, staff training and customer service quality and how each of the variables is measured to the benefit of improving overall organizational performance. The statement of the problem, purpose of the study, general objectives of the research study, research questions, scope of the study and the definition of terms were examined.

13

CHAPTER TWO LITERATURE REVIEW 2.0. Introduction This chapter presents the general overview of employee performance, staff training and customer service quality, critical elements ensuring positive customer experience, training on excellent customer delivery, effects of training on customer service delivery, perceptions of customers on service delivery and reviews the literature of other researches on customer service delivery. 2.1. Theoretical Literature Review This chapter presents the results of a theories applied and literature survey developed by other researchers previously to support a proposed model of this study with focus on the dependent and independent variables. It identifies several relevant variables for each critical success factors and presents a model for future research. It also analyses the relative importance of different critical success factors and observes that organization and management factors are the most important category for success of quality customer service initiatives. the modern motivation theories worthy of consideration in this study are: Social Cognitive Theory, Reinforcement theory, Goal Setting Theory and Expectancy Theory as those that have cut across the variables and suitable for the study.

2.1.1 Expectancy Theory Expectancy theory had been proposed by Vroom (1964). The theory is based on the hypothesis that employees seemingly adjust their behaviours in the organization based on the satisfaction of achieved goals set. It is a cognitive process theory of motivation based on the assumptions that people believe there exists relationship between the effort they put in advance at work, the performance they achieve from the efforts and rewards they receive from these efforts and performance. Thus, people will be motivated if they believe that strong efforts lead to good performance and good performance will consequently lead to desired rewards. The theory best fits generalization of all the variables conjoined. 14

The underlying assumptions to the Expectancy theory contend that people join organizations with expectations about their needs, motivation and past experiences will end up influencing their reaction to the organization. Secondly, is that an individuals behavior is a result of the conscious choices. Thirdly, people want several different things from the organizations such as a good salary, job security, advancement and challenges and lastly is that people will choose among alternatives so as to optimize outcomes for them personally, through trainings “ (Maranga, 2014) Since Vroom’s expectancy theory works on perceptions, employees believe that the company atmosphere is perfect to boost motivation. Hence, it is about the associations people make towards rewards and the level of performance they can offer in order to attain those rewards and to perform better on the job. In its application, the main goal of expectancy theory is to yield best possible outcomes. Further, in order to receive maximum performance from individuals, employers must use transparent systems that closely relate rewards with performance. Another thing to consider is that the rewards offered must be desired by the employees. As the employee believes that the more effort he puts in, the better will be the outcomes (Pet therapy, 2018). 2.1.2. Social Learning Theory and Social Cognitive Theory Nabavi (2012) on Theories of developmental psychology titled Bandura’s Social Learning Theory and Social Cognitive Learning Theory stated that Albert Bandura (1977) is well known as the father of cognitive theory. The two learning theories have been influential in areas of inquiry such as education, health sciences, social policy and psychotherapy among others. In social learning theory is based on various principles such as observation, imitation and modeling whereas for social cognitive learning theory principle is on observation, understanding, predicting and changing human behavior. Bandura (2006a) in his study still believes that direct reinforcement accounts for all types of learning which calls for inclusion of social element that people can learn new information and behaviors by watching other people

15

Williams (2010) stated that social learning theory has become one of the most influential theory of learning and development best rooted on the basic concept of traditional learning theory. Further, social cognitive learning theory has expanded from social learning theory to social cognitive theory (Bandura 1999). It provides a framework for understanding predicting and changing human behavior. It focuses more on cognitive concepts and on how children and adults operate cognitively on their social experiences and how it influences their behavior and development (Nabavi 2012). social cognitive theory as a learning theory based on how people learn through observation. In most instances, it is influenced by one’s personality and the environment in which they operate leading to changes in behavior. The researcher further stated that as per the principle of social learning, whilst a visible change in behavior is most common factor proof of learning, it is otherwise not necessary. Marangu (2014) stated that in social learning theory, employees acquire new skills and knowledge by observing other members of staff whom they have confidence in and as well believe to be credible and more knowledgeable. The theory posited that training and learning is influenced by person’s self-efficacy and his ability to successfully learn new skills which can be influenced by encouragement, oral persuasion, logical confirmation, observation of others leading them to persist towards higher levels of task performance. The consideration of motivation as a mediator of the relationship between social networks and employee performance is novel to the social networks perspective, and represents a key contribution of this dissertation. The theory best suits relevance of training employees to benefit their performances. In this regard of social learning theory and social cognitive theory, self-efficacy is highly exhibited. Self-efficacy beliefs exert their diverse effects through cognitive, motivational, emotional, and decisional processes. Efficacy beliefs affect whether individuals think optimistically or pessimistically, in self-enhancing or self-debilitating ways. They play a vital role in self-regulation of motivation through goal challenges and outcome expectations. (Mark & Campbell, 2011). On this regard self efficacy lies at the center of 16

social cognitive learning theory and shows that beliefs about one’s ability or capacity to execute a behavior successfully. Consequently, it clarifies that people tend to engage in activities based on their sense of competence and/or past success. Hence, the two theories will enhance relevance in the study, by understanding its importance and application on the relationship between employee performance and staff training on customer service quality. 2.1.3

Reinforcement Theory

According to Banaji (2011) B.F Skinner referred to the theory as Behaviorism, or Operant Conditioning, which is still commonly taught in psychology today. The theory was developed by B.F Skinner (1963). The theory states that an individual’s behavior is a function of its consequences. Behaviorism evolved out of frustration with the introspective techniques of humanism and psychoanalysis, as some researchers were dissatisfied with the lack of directly observable phenomena that could be measured and experimented with. In their opinion, it would make the discipline of Psychology more "scientific" and on par with the core sciences. These researchers turned to exploring only the behaviors that could be observed and measured, and away from the mysterious workings of the mind (Funder, 2010). B.F Skinner (1963) revealed that the theory was developed to explain behavior and why we do what we do in order to motivate employees. It is one of the most commonly used methods to motivate employees and enhance their performances and strengthen their behavior based on consequences at workplaces through positive reinforcement, intrinsic rewards, extrinsic rewards, and punishments. Positive reinforcement can be applied at work through the fringe benefits, promotion and pay. Khaemba (2017) stated that reinforcement theory concept permits growth and greater knowledge to enhance greater performance of activities.

Intrinsic rewards involve

intangible things such as praise, acknowledgement, recognition, acceptance whereas extrinsic is applied through salary/monetary measures. By applying his thoughts on adjusting motivation through various stimuli, industries such as business, government, 17

education, prisons, and mental institutions can gain a broader understanding of human behavior. In understanding why any organism behaves the way it does, Skinner saw no place for dwelling on a person’s intentions or goals. Leong and Rashad (2014), quoted reinforcement theory as an instrument used by managers to increase or decrease employees’ behavior. Positive reinforcement has been proven to be the most effective way of motivating staffs to perform better in organizations. Moreover, employees feel satisfied when their work is recognized and their hard work is paid off. Punishment is also applied to reduce or remove certain unwanted behaviours. When employees are rewarded for their performances, they will most likely increase their behavior and perform better. However, it is advisable that managers be able to decide strategically which method to use when eliciting or removing bad behavior at the right time. An alternative approach to follow through is the consequence-based technique which is effective in managing an individual or a team of staffs.

2.2 Empirical Literature Review Empirical review is based on observed and measured phenomena and derives knowledge from actual experience rather than from theory or belief. The researcher will use quantitative research methods, which will aid in generating numerical data and seek to establish causal relationships between two or more variables. Empirical research articles here in will apply the use of qualitative research methods, which objectively and critically analyze behaviors, beliefs, feelings, or values with few or no numerical data available for analysis. 2.2.1 Employee Performance and Customer Service Quality Employee performance is the successful completion of tasks by selected individuals as set and measured by a supervisor or organization within a changing environment. Githinji (2014) stated that performance does not include the results of an employees behaviour but only the behaviour of what employees do. Customer service is the practice of providing customers with a positive helpful experience when they enter a business, throughout the time they stay at the business, and even after the customer leaves, should they have 18

additional questions or products to return (Thompson & Kolsky, 2014). Customer service, especially in the shape of a call-centre is to customers one of the most visible and significant aspects of organizational performance (Flanagan & Fredericks, 2013). Winfred (2013) in his study found that employee factors are often critical and thus need to be taken seriously if organization’s are to deliver high quality services to their customers. The study further established that good remuneration, clear job descriptions, increased employee performance reduces conflicts and in the process motivates employees to work hard for the satisfaction of the customers. This is also similar to a study at Safaricom Limited on the effect of training and development on employee’s performance indicating the importance of effectively managing performance of individuals by setting goals and ensuring that employees expectations are clear and improved through frequent feedback (Mose, 2016). Kamau and Waudo (2012) reveal that there exists a relationship between the skills expected by employees and set quality standards by organizations. Such skills included, customer care, multi-skills, communication and understanding the level of perceived service expected in any service industry whereby the study found a paradigm shift between the managers and employees’ expectation to be varying. Thus, organizations should focus on having a common goal at both individual and organizational level for effective realization and successful achievement of the stated goals. Kimungu and Maranga (2010) indicated that several employee factors affect customer service quality. The study focused on employee turnover and how it relates to customer satisfaction in services and competitiveness of an establishment. The study revealed that low job satisfaction, unfavourable working conditions, slow career advancement as the major factors influencing employee performance and leading to employee turnover which consequently interferes with internationalization of standards by the employees, resulting to lower quality of service and reduced customer satisfaction thus making an establishment less competitive.

19

2.2.2 Mediating effect of Staff Training Employee Performance and Customer Service Quality Elnaga and Imran (2013) in their study focused on work place development and defined it as a term used for work place learning to improve on performance. The forms of training have been categorized as on-the-job or off-the-job training. On-the job training takes place in a normal working situation, using the actual tools, equipment, documents or materials that trainees will use when fully trained. On-the-job training has a general reputation as most effective for vocational work. Off-the-job training takes place away from normal work situations, implying that the employee does not count as a directly productive worker while such training takes place. Off-the-job training has the advantage that it allows people to get away from work and concentrate more thoroughly on the training itself. This type of training has proven more effective in inculcating concepts and ideas (Odhiambo, 2016). Customer service has a direct effect on whether a company will struggle or thrive during economic slowdowns and recessionary times (Watiki 2014). Consistency is maintained if customers are not promised what cannot be delivered to them. Customers must be told what to expect and assured of the commitment of the organization which serves them. Customer satisfaction can be measured by asking customers questions (Imran 2013). Training for customer ‘s service skills and behaviours is necessary because of the increased complexity of duties performed by a company’s representative in his area and that it also improves one’s behaviour for example, the most common training tools of telephone calls emphasize attitude, courtesy, ability to help (or refer the caller to someone else who can), message handling and managing voice message systems. These and other developments on the horizon will force many services firms to redefine what they do (Adeniyi 2010). Pamela and Lwakama‘s (2010) in their study stated that a satisfied customer was one whose expectations are met, or exceeded, who experiences good service delivery, who felt they were treated equitably, and who thinks that he or she got good value for money. The key drivers of customer satisfaction (and future intention) are core service delivery (the promise),

relational

service

quality

(how

the

service

is

delivered,

staff

attitude/professionalism) and perceived value for money, (the difference between 20

perceived benefits and costs). The relative importance of each of these varies across services but the two main drivers of overall customer satisfaction are core service delivery (what is delivered) and perceived value a perception by customers that they got value. The effect of staff training on customer service delivery has not attracted that attention of standard bureaus, although they acknowledge it as the means to generate revenue. But, customers experiencing poor service are likely to tell up to twenty people out about their experience which is not good advertisement for a business. This may deter others from trying the products or service of the company (CIM 2016). But on the other hand, those that receive good service will promote the company in positive manner. Amadi (2014) conducted a research on the effect of training and development on Employees’ performance; at Safaricom limited Call Centre.

In the human resource

management field, training and development is the field concerned with organizational activity aimed at improving the performance of staff/personnel in an organizational setting. This study’s sought to determine the effect of training and development on employee performance of with a case study of Safaricom Call Center. The result showed that training and development has a positive impact on both motivations of employees as well as performance. The study recommends that basing on the objectives of the company training needs at Safaricom should be considered on the basis of overall company objectives. In addition, the staff training programs should be in line with the company’s goals. Watiki (2014) conducted a study on service quality and customer satisfaction in hotels in Kenya and revealed that, organizations that are dedicated to generating profits for their owners, can provide quality service to customers and beneficiaries, are dedicated to investing in the training of its employees. According to Ahmed (2014), training can achieve high morale and motivation, lowers cost of production, lowers labour turnover and rate of absenteeism. Evaluation of staff training is necessary to determine the value in the efficiency and effectiveness of a training program on trainees’ performance and behavior. Measuring is useful in fostering management support for the training program. Benedicta (2010) asserts and agrees that the evaluation schemes that many corporate training 21

programs use is Kirk Patrick’s four level method of evaluation based on reaction, learning, behavior and results.

Faris, Mahmoud and Rosima (2014) claimed based on descriptive survey and data analysis that, the impact of training can be evaluated by comparing the behavioral style of each employee prior and after the training program. The member of the control group, as the comparison group which was not experienced any training treatment, have no significant behavioral changes, even after the six months period of real-implementation working experience. The important factor to be considered by the company is the material of training program (Sunardi, et al. (2012). NaderBarzegar (2011) stated based on descriptive- survey that organizations should create training programs that fit most of employee and it should be conducted regularly and properly to get greater efficiency. Therefore, before handling of training program, the organization should advise the employees about conditions, goals of the courses, and Interest to participate in courses. Khan (2011) argues as stated in data were collected by means of questionnaires that training and development, On the Job Training, Training Design and Delivery style are four of the most important aspects in organization, so the relationship between these four aspects have effects on organizational performance. Therefore, it is very important for the organization to design the training very carefully, the design of the training should be according to the needs of the staff. So those organizations which create a good training design according to the needs of the staff are more likely to get good results and achieve organizational goals. 2.2.3 Joint effect of Employee Performance and Staff Training on Customer Service Quality Mantey (2012) emphasized that customer care training should be included as part of an overall approach to systematic improvement. The perception of success of customer interactions is dependent on employees who can easily adjust and adapt themselves to the personality of the guest.

Adeniyi (2010) stated that employees involved in quality

assurance should be mindful of potential conflicts of interest that might arise and must not 22

use their position to gain or seek to gain a benefit for themselves or any other person. They must also strive to avoid perceptions of conflicts of interest, or of undue influence, as well as avoiding them in fact as employees involved in quality are impartial and professional in their approach, and that their activities will withstand public scrutiny. Quality customer service training requires quality professional training in appropriate skill and calls for commitment on behalf of the organization starting from the top. Main skills taught during today ‘s training is: telephone skills, customer service and retention, telemarketing, problem solving capabilities, maintaining customer satisfaction and effective use of technology (Sultan, 2012). Most companies provide their employees with a combination of in-house and external training session. These tend to emphasize courtesy and patience as well as promoting a genuine effort to solve problems of customers' problems and respond to them about enquires, while often at the same time becoming familiar with new software designed to ease and aid their work (McGraw, 2013). Mollahoseini and Farjad (2012) also conducted their study and according to the descriptive survey, stated that the effectiveness of training depends on well designing and implementation of Training, Learner Involvement, Learner Attitude change, provides opportunity to Application New skills and Knowledge in Workplace, Job Commitment, Top Managers views for Training, and connection training to organization's Vision and Strategies. Elnaga and Imran (2012) claims according to analysis of the existing literature of different studies that training program should be designed for each job regard to individual, vocational and organization needs. Training programs is the incentives that all employees need to improve their performance and capabilities, therefore increase organizational productivity. Fulmer, Gerhart and Scott (2003) in their study noted that employees attitude is an important factor while dealing with customers as the right attitude can positively affect the customer satisfaction level especially if the employee attitude enables the customer expectations to be met. There are various studies that has been conducted to determine how employees impact on the customer perception that can build a lasting brand image. 23

Employees that are in the service industry and are in direct contact with customers have a stronger medium in which they can build a lasting brand image. The motivation levels of these employees can also affect the way the employees provide customer service to the customers and in the end this can have an effect on the satisfaction of customers (Gittell & Weiss, 2004). Studies have shown that employee’s attitude does have an effect on the performance of the company in regard to financial and non-financial measures. Respected companies use various opportunities that are advantageous to their employees as a motivation strategy for their workers (Simon & DeVaro, 2006). The service sector is greatly affected by the level of service offered to customer, which ensures that the customers are satisfied. It is important to motivate employees especially in the service industry as they have a greater effect on the level of customer satisfaction as they are in direct contact with the customers. So as to ensure that customers in the service industry are highly satisfied, employers need to motivate their employees and improve their engagement with them in the organizations (Harter, Schmidt & Hayes, 2012). There are various theories and models developed to ensure customer satisfaction in case of companies that sell tangible products. However, these theories cannot be applied in the service industries. Anderson and Fornell (2010) in their study stipulate that intangible assets such as customer relationships, knowledge and systems can be used by firms to gain a competitive advantage in the ever changing economic world. Well performing companies are able to satisfy their customers by motivating their employees and keeping them happy, happy and motivated employees are able to offer quality service to their customers. The results of this study can be used to reach a conclusion that strategic human resource is an important factor to be considered when seeking to improve a company’s performance (Simon & DeVaro 2006). What has been widely acknowledged is that use of technology and current information greatly facilitates the provision of excellent customer service because we live in age of technology in which it impacts. Technology reduces paper work and requires only a direct computer link between supplier and customer and now being conducted via the internet 24

(Githiri, 2015). However, training may have some impact on customer service delivery, but the effect of training on customer service delivery has not been given attention. Sloman (2012) elaborated that understanding the behaviours and attitudes of customers by customer service providers, results in the use of appropriate ways to deal with them. A customer service provider is expected to be firm to immature customers. Otherwise, they will complain that they do not have enough money to pay for the service because they barely have enough to pay for food. They may not appreciate enforcing of company policies, but they need a reality check. For an organization to avoid failure, complaints should be encouraged, positively and complaints must be handled well and must be seen to be well handled by the complainant and the organizations own staff (Githinji, 2014). Odhiambo (2016) elaborated that an appropriate way to improve customer service through technological advancement, is for service providers to allow an old customer to figure how to use technological equipment’s such as computer, by giving then assistance. It is also appropriate for a customer service provider to find out from an impatient customer, if he or she is calling at the right time before proceeding to what he or she wants to communicate. This is important because impatient customers may complain that the customer service provider is disrupting their work or bothering them. Hence, the desire to cut down on operational costs and limit the misuse of resources as a result of technological advancements, it is imperative to enhance the quality of services rendered to customers through

adopting

vocational

apprenticeship

to

enhance

the

progress

of

workforce/employees productivity, (Khaemba, 2017). 2.3 Research Gap Omvia (2016) conducted a study on factors affecting the performance of employees at the Ministry of Health and the researcher established that, there exist factors that affect employees performance such working conditions, monitoring and evaluation systems and capacity development training. Githinji (2014) was able to establish the relationship between training and employee engagement, training and motivation and training and overall job satisfaction and further concluded his findings that training positively 25

influences employee performance by having a positive influence on employee engagement and overall organizational performance. Previous research has indicated and established that employee performance, staff training as dependent variables have an effect on customer satisfaction. Therefore, the study has established the relationship between these variables as joint effect on customer service quality in KEBS.

26

Table 2.1: Summary of Research Gap Study (Author) Omvia (2016)

Ochieng (2016)

Githiri (2015)

Broad Objective Factors Affecting the Performance of Employees at the Ministry of Health

Main Findings Working environment, monitoring and evaluation systems and capacity development affects performance of employees based on efficiency, effectiveness, productivity and timelines Service Quality and Customer The results revealed that Satisfaction in Kenya’s Aviation there is a near perfect Industry positive relationship between service quality and customer satisfaction

Factors affecting Customer Staff Training, Service Delivery at the Standard Employee Motivation Chartered Bank, Kenya and Technology affect customer service delivery

27

Gap The study was limited to Uganda, staffs at the Ministry of Health in Kampala

How Study addressed the gap The study examined the relationship between employee performance and customer service quality while addressing these other factors and how they affect employee performance

The study was carried out at the Wilson airport to passengers using local airlines, whilst that views from passengers using other airports were not captured. Area of coverage was limited to banking industry, particularly Standard Chartered bank industry in Kenya. Further research done linking the entire service industry organizations globally with focus on the challenges facing customer service delivery.

The study addressed the other variance of customer satisfaction that is not addressed in customer service quality

The research study addressed the gap by establishing the role of staff training on the relationship between employee performance and customer service quality

Study (Author) Githinji (2014)

Broad Objective Effects of Training on Employee Performance among the International Civil Servants

Amadi (2014)

This study aimed at examining the effect of training and development on employee performance with a case study of Safaricom Call Center, thus presenting a clear scope gap. Service Quality and Customer The five dimensions of The factors established in Satisfaction in hotels service quality have a the study did not prove positive impact on effect on customer satisfaction

Watiki (2014)

Main Findings Employee training influences performance by positively influencing the employee engagement, motivation and job satisfaction Effect of training and It was found that training development on Employees’ and development has a performance. positive impact on both motivations of employees as well as performance.

28

Gap Impact of Training on employee training at other different populations at different timezones/globally

How Study addressed the gap The study focused on determining the joint effect of employee performance and staff training on customer service quality

The current study focused on similar objective at KEBS

The study will link on the relation of customer satisfaction to customer service quality

2.4

Hypotheses

The study investigated the relationship between the variables based on the following hypotheses: H01: There is no significant relationship between employee performance and customer service quality in KEBS HA1: There is a significant relationship between employee performance and customer service quality in KEBS H02: There is no significant mediating effect of staff training on relationship between employee performance and customer service quality in KEBS HA2: There is a significant mediating effect of staff training on relationship between employee performance and customer service quality in KEBS H03: There is no significant joint effect on relationship between employee performance and staff training on customer service quality in KEBS HA3: There is a significant joint effect on relationship between employee performance and staff training on customer service quality in KEBS

2.5 Conceptual Framework The research study is aimed at analysing the relationship between the training given to staffs, perception of customers and effects of training on customer’s service delivery of the KEBS. The independent variables will be the training given to staffs, Perception of customers on KEBS staff and effects of training on customer’s service delivery. The dependent variable will be the improved customer service quality the conceptual framework was therefore formulated as follows.

29

Figure 2.1: Relationship Between Independent variables and Dependent Variable Independent Variables

Intervening Variable

Dependent Variable

Ho1 Ho2

Employee Performance

Staff Training

Ho3

Customer Service Quality

2.6 Operationalization of variables Table 2.2: Operationalization of Variables Variables

Indicators

Employee Performance

    

Staff Training

    

Delays Attendance Motivation Output Absenteeism

Skills Knowledge Number of Trainings Type of Training Relevance of Training  Effectiveness of Training

30

Type of

Measure of

Measurement

Indicator

 Interval  Ratio

 Section in Questionnaire Sec B, pg. 75

 Interval  Ratio

 Section in Questionnaire Sec C, pg. 76

Variables

 Indicators

 Type of

Measurement Customer Service Quality

       

 Interval  Ratio

Complaints Employee Survey Time Responsiveness Availability Intangibility Assurance Empathy

 Measure of

Indicator  Section in Questionnaire Sec D, pg. 77

2.7 Chapter Summary This chapter looked at other scholarly work regarding staff training and customer service quality and its impact on the delivery of services. Various theories that support training, challenges and studies of how these have influenced employee performance and how they have worked in various industries/organizations have been reviewed. The chapter ends by stating the knowledge gaps encountered.

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CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction This section enumerates the research methodology that was adopted by the study. It covers the research design, target population, sampling techniques that was used, data analysis and data collection methods. It also showed how validity and reliability of research instrument used were determined and ethical consideration. 3.1 Research Design A research design is a layout used to respond to research questions. Kothari (2004) refers to the manner in which the research study is devised. The research design the study adopted was descriptive design, in order to understand the effects of performance and staff training on customer service delivery and also for qualitative results. For descriptive design, it allowed the researcher to establish reasons as to why an incident occurred, allow the investigator to generalize the findings to the population of interest and draw conclusions. The choice for a descriptive design is to give unbiased presentation of the population. The purpose of this study was to gather detailed information in order to provide detailed information on the effect of employee performance and staff training on customer service quality at the Kenya Bureau of Standards. The study design was convenient as it allows the use of both qualitative and quantitative for data collection instruments in the study 3.2 Target Population According Connie (2000) target population is a group of people selected for study or it is the total number of potential survey respondents in study. Target population comprises an entire group of elements which have similar features, are huge and distinct from sampled group the researcher withdraws conclusions about the interested population.

The

population of the study was undertaken through establishing the total number of employees that were at KEBS as at 2018, per HR records. The study comprised of a selected number of KEBS workers, at various levels of hierarchy within the organization structure. KEBS 32

is a parastatal body that has branches all over the counties with a total of 1015 employees at various KEBS branches. The target population is summarized in the Table 3.1. Table 3.1 Target Population Category (KEBS Branches)

Target Population

KEBS HQ (Nairobi)

707

Coast Region

137

Lake Region

66

South Rift Region

27

North Rift Region

23

Mt. Kenya Region

22

North Eastern Region

33

Total

1015

Source: KEBS HR records (2018) 3.3 Sample and Sampling Technique Kothari, (2004) defined a sample design as a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure the researcher would adopt in selecting some sampling unit from which inferences about the population is drawn. Stratified random sampling method was used. According to Mugenda and Mugenda (2003), stratified random sampling involves selecting subjects in such a way that the existing subgroups in the population are more or less reproduced in the sample. The study considered stratified sampling, whereby a proportionate allocation on different strata was applied due to heterogeneity of the population in study. The method was appropriate as it gave all respondents from each strata an equal chance to participate. Using Cochran’s (1977) formula, which was developed to yield a representative sample for proportions, the sample size was calculated as follows: Assuming; 33

n0 = Sample size, N = Target population (1015 employees) (1 –α equals the desired confidence level of 95%)1, q is 1-p. n1 = 384 e=level of precision ±5% 05 (error of 5%) = n0=(t)2*(p)(q)/(d)2=384 385 1 + (385-1) 1015 = 279

Table 3.2: Research Study Sample Size

Category (KEBS Branches)

Target Population

Sample Size

KEBS HQ (Nairobi)

707

194

Coast Region

137

38

Lake Region

66

18

South Rift Region

27

8

North Rift Region

23

6

Mt. Kenya Region

22

6

North Eastern Region

33

9

Total

1015

279

3.4 Data Collection Instruments A questionnaire is an analysis tool or instrument used in research and contains the questions on the variables of the study. The researcher used well-structured questionnaire that was self-administered. A questionnaire has the advantage that it gathers data over a large sample within a short period, and is more efficient and economical tool for descriptive research and for the sample size chosen (Kombo, 2006). The questionnaires contained both open-ended and closed ended questions to facilitate structured responses and provide 34

additional respondents information. Most importantly, questionnaires measures likelihood of straight, even and blunt answers (Arodho, 2005). Data was obtained from both Primary and Secondary sources. The bulk of primary data was obtained through questionnaires. Secondary data was obtained from the internet, library, journals, reports, magazines and document analysis for literature review (Cooper and Schindler, 2008).

Data from respondents, was shared through email for the

respondents who were at the outskirts branches as well as to those who were away from office due to unavoidable circumstances. The questionnaires were administered by the researcher to employees to fill based on four sectional areas: Section A: Background information of respondents, Section B: Employee Performance, Section C: Staff Training and Section D: Customer Service Quality. The degree of agreements on the questionnaire were also rated from strongly disagree (1), disagree (2), neutral (3), agree (4) and strongly agree (5) where a mean of the findings was then calculated and the findings recorded in the liker scale. 3.5 Pilot Study Cooper and Schindler (2008), pilot study was conducted before main research to establish the validity and reliability of the research study, in order to test out the instrument among the practitioners and professionals in the research study area. According to Cooper and Schindler (2008), a pilot study should be ten percent of the main study. The pilot testing was conducted using the questionnaire, through random sampling of 30 staff at KEBSJKIA branch office in Nairobi City County, who were not be included as part of the final study. 3.5.1 Validity of the Research Instrument According to Gilham (2008), validity is the accuracy and meaningfulness of inferences, which are based on right research questions for accurate research results. Content validity draws an inference from test scores to a big area of items similar to those on the test. Content validity of the instrument was determined in two ways. First, the researcher 35

discussed the items in the instrument with the supervisors, colleagues and other lecturers in the department. Advice given by these people, helped the researcher determine the validity of the research instruments. The advice included suggestions, clarifications and other inputs in order. These suggestions were used in making necessary changes. Secondly, content validity of the instrument was determined through piloting, where the responses of the subjects were checked against the research objectives. This also gave a reason as to why content was used. For a research instrument to be considered valid, the content selected and included in the questionnaire must be relevant to the variable being investigated (Mutai, 2001). 3.5.2 Reliability of the Research Instrument Reliability is the consistency of estimation to how much an instrument measures a similar way each time it is utilized under a similar condition with similar subjects (Mugenda and Mugenda, 2003). The researcher used the widely recognized inner consistency measure, known as Cronbach’s Alpha (a) of the SPSS version 22 of statistical technique. It demonstrated the degree to which an arrangement test of things can be dealt with as measuring a solitary inert variable. Based on the scores for reliability, 0.5 is poor, >0.6 is questionable, >0.7 is acceptable; > 0.8 is good while > 0.9 is excellent. The study adopted a co-efficient of 0.7 that is considered adequate and acceptable for the level. The construct multiple of reliability is Cronbach alpha to test research instruments reliability (Seifer 2012). 3.6 Data Collection Procedure The research study made use of both primary and secondary sources of data. The researcher enlightened the respondents that the instruments being controlled were only for study reason and the reaction from the respondents were kept classified. The researcher gave a letter of introduction from the University with a specific end goal to gather information from the field and later conveyed the surveys to the respondents so they could be filled in and afterwards collect them for polling. The strategy that was utilized was the drop and pick later approach.

36

3.7 Data Analysis The study analyzed descriptively both quantitatively and qualitatively, and presented in the form of frequency distribution tables, graphs and charts that facilitated description and explanation of the study findings. Quantitative data was obtained from the questionnaire items which were edited, coded, organized, analyzed and consequently presented using, percentages, mean, and frequency tables using SPSS version 22. The researcher used descriptive and regression analysis to analyze data. Correlation and regression co-efficient were used to establish the relationship and predictor element for the independent variables and dependent variable. The research hypotheses were tested by examining both the R values from the correlation result and the P-value at 95% confidence level from the regression co-efficient results, to either accept or reject the null hypothesis. Multiple linear regression model used in this study was as follows: Y = α + β1X1 + β2X2 + ℮ Where: Y is Customer Service Quality; α is a constant amount; β1 & β2 rep the coefficients; X1 is Employee Performance; X2 is Staff Training; ℮ is the error term that reflect other variables to have an effect on Y. Models based on objectives ad hypotheses: i)

Y = α + β1X1

ii)

X2 = β1X1

iii)

Y = α + β2X2

iv)

Y = α + β1X1 + β2X2

Table 3.3 Model summary for testing Objective

Hypotheses Test

To determine the relationship H01 between employee performance and customer service quality in KEBS

Y = α + β1X1

37

Decision Criteria p≤ 0.05

Objective

Hypotheses Test

To establish the mediating effect of staff training on the relationship between employee performance and customer service quality in KEBS

H02

Decision Criteria

i) Y = α + β1X1

p≤ 0.05

ii) X2 = β1X1 iii) Y = α + β2X2 iv) Y = α + β1X1 + β2X2 Y = α + β1X1 + β2X2

To determine the joint effect of H03 employee performance and staff training on customer service quality in KEBS

p≤ 0.05

3.8 Ethical Consideration Permission to carry out the study was sought out from the management of the organization. After approval from the University has been obtained to conduct the study, permission was also obtained from the National Commission of Science Technology and Innovation (NACOSTI). The researcher explained on the nature and the purpose of the research study. The researcher showed respect to the individuals’ rights to safeguard their personal integrity and confidentiality for the information he obtained. At any time during the data collection, the respondents were free to withdraw from the study if they wished. The respondents were assured of anonymity and confidentiality.

No names or personal

identification numbers were reflected on the questionnaires except the numbering for questionnaires, which were done for purposes of identification of data during data editing.

3.9 Chapter Summary The chapter outlines the methodology employed in the research study and the type of research study used. It also elaborates further on the population study and the various selection methods used, data collection methods, research study design, pilot study, validity, reliability and the ethical considerations to be observed.

38

CHAPTER FOUR RESEARCH FINDINGS AND DISCUSSION 4.0 Introduction This chapter comprised of data analysis, findings and interpretation. The chapter included the response rate, the demographic characteristics, descriptive statistics, correlation analysis and the regression analysis. The results were analyzed using Excel worksheet and SPSS. Results were presented in tables and diagrams. The analyzed data was arranged under the themes that reflect the research objectives. 4.1 Response Rate The research was conducted at KEBS headquarters and its other branches covering geographic locations. During the study, a total of 279 questionnaires were administered to the respondents. A total of 265 questionnaires were filled and returned with 14 catering for non-respondents. This was arrived at after getting the percentage of the respondents who returned the questionnaire as compared to the number of the questionnaires that were administered. According to Mugenda and Mugenda (2003), a response rate of 50% is adequate for a descriptive study. Babbie (2004) also asserted that return rates of 50% are acceptable to analyze and publish, 60% is good and 70% is very good. Table 4.1 shows analysis of the responses. Table 4.1: Response rate Response

Frequency

Percent

Returned

265

95.0

Unreturned

14

Total

279

`

5.00 100

39

Table 4.1 shows that 279 questionnaires were distributed evenly as per the sample size distribution whereby 265 questionnaires were duly filled and returned.

From this

indication, the percentage response rate is 95%. According to Mugenda and Mugenda (2003), a response rate of more than 50% is sufficient for scrutiny and analysis. 95% response rate is considered acceptable and very good for the study. 4.2 Test of Instrument Reliability and Validity The main tool of data collection used in the study was semi-structured questionnaire. The instrument was reviewed and tested using Cronbach’s alpha test. The results of the Cronbach’s Alpha test are presented in Table 4.2. Table 4.2: Summary of Cronbach’s Alpha Test Reliability Coefficient Variable Employee Performance Staff Training Customer Service Quality

Cronbach's Alpha 0.724 0.771 0.795

Comment Reliable Reliable Reliable

The results of the test as summarized in Table 4.2. The instrument produced scores above 0.7 which is acceptable since Cronbach’s alpha coefficient of over 0.7 qualifies an instrument as reliable and consistent (Nachmias & Nachmias, 2006). The table shows that the Cronbach Alpha for employee performance, staff training and customer service quality are all above 0.7. Hence, the data collection instrument was therefore reliable and acceptable for the study. 4.3 Demographics This section consists of information that describes basic characteristics such as gender of the respondents, age of the respondents, education level attained by the respondents, working experience, the department/division the respondents belong to, branch office or area of work of the respondents and the level of hierarch the respondents fall under. 4.3.1 Gender 40

The respondents were asked to indicate their gender. Analysis by gender was done using excel and SPSS and results present in Figure 4.1. Figure 4.1: Gender of respondents

Source, Field Data (2018) From figure 4.1 shows a slightly higher number of the respondents were male who represented 51.3 % of the sample while 48.7% were female. This implies that slightly more of the employees working at KEBS are male. Hence, the results and findings of the study may therefore be skewed more, towards the male gender than the female gender. 4.3.2 Age of the respondents The respondents were asked to state their age in the ranges that were provided. The analysis was done using excel and SPSS and results given in Figure 4.2.

41

Figure 4.2: Age of respondents

Results in Fig. 4.2 shows that a majority of employees at 39.6% of the respondents are between ages 35 – 44 years, 33.6% of the respondents are between ages 25 – 34 years, further, the results in fig. 4.2 show that 16% of the respondents are between ages 55 – 64 years, 6% of the respondents are between ages 18 – 24 years and lastly 5% of the respondents are above sixty-five years old. This implies that the organization considers fairness in terms of providing employment to all. This implies that this study managed to reach out to workers in all spheres in the organization in terms of years of age in order to achieve unbiased results. More so, this implies that there exists more maturity, activeness and agility workforce diversity in the organization. 4.3.3 Level of Education of the Respondents The respondents were asked to state their level of education. Thus, the analysis was computed through the use of excel and SPSS data analysis to produce the results as shown in Figure 4.3. 42

Figure 4.3: Level of Education of respondents

Results in fig. 4.4 showed that majority of the respondents had attained education up to university level with 59.3% of the respondents with a bachelors degree, while 16% of the respondents had masters degree. Some of the respondents had attained education level up to college, with 15.1% having a diploma while a few 7% of the respondents had attained certificates. Fig. 4.3 also shows that 2.3% of the respondents had at least attained education up to secondary level whereas 0% for primary level. This implied that the study managed to reach out to workers in all dimension in the organization based on academic qualifications, which was important to achieve the unbiased results. Further, on the representations, this implied that the organization focuses on employing skilled workforce who are graduates, also encourages career advancement of its employees thorough capacity building etc. Further, the results implies that the organization has men and women who are highly ranked, are of high educational standard, that can help contribute their combined efforts, towards achieving the organization’s mission and vision through set targets or objectives. 43

4.3.4 Working Experience The respondents were asked to indicate the number of years they had worked in their organization. The results were analyzed using excel and SPPS as indicated in figure 4.4.

Figure 4.4: Working experience

Results in fig. 4.4 showed that majority with 29.4% of the respondents indicated that they had worked in their organization for 10 - 14 years while 27% of the respondents had worked in the organization for 0 – 4 years. Further in the study, 18% of the respondents had worked in the organization for over 20 years whereas 17% of the respondents had worked in the organization between 5 – 9 years. The lesser ones 9.4% of the respondents had worked in the organization for 15 – 19 years. 4.3.5 Work Area

44

The respondents were asked to indicate the division/department which they had worked under. The results and analysis indicating the various departments were analyzed using excel and SPSS as outlined in Figure 4.5.

Figure. 4.5: Division/department

From the results, figure 4.5 revealed that 29.4% were the majority among the respondents, who had worked at the Metrology and Testing division, 17.5% of the respondents had worked at the Quality Assurance and Inspection division. Figure 4.5 also shows that 15% of the respondents had worked at the Standards Development and Trade division, 15% of the respondents had worked at Human Resource and Communication department while 11% of the respondents had worked at the Finance and Strategy division. Lastly, 8% of the respondents had worked at procurement department while 5% of the respondents having worked at Market Surveillance division. The results in fig. 4.5 further show that most of the employment vacancies at KEBS was based on the core activity of the organization that is, technical and focuses on activities

45

such as standardization, conformity assessment, metrology and testing and quality assurance and inspection as it holds higher percentages based on the respondents

4.3.6 Work Station The researcher was tasked to distribute the questionnaires and asked the respondents to indicate their work stations. The responses were analyzed using excel and SPSS as shown in Figure 4.6.

Figure 4.6: Area of workstation

Results in figure 4.6 revealed that the majority with 82% of the respondents operated at the headquarter office covering offices in Nairobi from JKIA, ICD, Pepe and Namanga office. 8% of the respondents worked in Coast (Mombasa office). Further, the study showed that 3% of the respondents were from North Eastern office while 3% of the respondents were from Mt. Kenya. 2.3% of the respondents were from South Rift office whereas 1.5% each represented the percentage of the respondents from North Rift and Lake Region offices respectively. 46

4.3.7 Level of hierarchy The respondents were asked to indicate their level in the hierarchy they fall under with regards to their job position. The results and analysis based on the respondents’ position level were analyzed using excel and SPSS as shown in Figure 4.7. Figure 4.7: Level of hierarchy of respondents

Results in figure 4.7 revealed that 60% of the respondents were in support/operational level in the organization. Further in the study, 39% of the respondents in the middle management level whereas the 1% of the respondent top/senior level management. This implies that most of the respondents in the study were in the lower tier jobs and are the ones mostly affected in terms of delivering quality service to customer. Hence, this also implies that they were the employees who had issues to be addressed. This can be supported by the results of the level of education and experience as indicated. This also clearly indicates the real situation whereby many employees working in senior positions normally have tight schedules which hinders their participation in such a study.

4.4 Descriptive Statistics

47

Descriptive statistics are used to describe the basic features of the data in a study. They provide simple summaries about the sample and the measures. Together with simple graphics analysis, they form the basis of virtually every quantitative analysis of data. A Likert scale with options of strongly disagree, disagree, neutral, agree and strongly agree were presented for answering by respondents. For the purposes of interpretation of the study results, 5 was strongly agree, 4 was agree,3 was neutral 2 was disagree and 1 was strongly disagree. The results were presented in form of mean and standard deviations.

Table 4.3: Employee performance Descriptive Statistics Statements SD D Employees complete tasks given to them on time 2.30% 2.30% Employees enjoy working beyond normal working hours 10.90% 27.90% Staff carryout work that meets the client satisfaction 1.10% 6.80% Employees always meet targets 3.40% 9.80% Employees record daily activities and keep track of evidences 4.50% 12.80% Increased cases of poor performance among employees in the division 29.40% 28.30% Employees are fairly rewarded for outstanding performance 20.40% 22.60%

Mean

Std. Deviation

21.50% 61.90% 12.10%

3.792

0.7677

29.10% 21.90% 10.20%

2.925

1.1588

14.30% 57.00% 20.80%

3.894

0.8462

24.90% 46.80% 15.10%

3.604

0.9719

20.00% 37.70% 24.90%

3.657

1.121

23.40% 14.30%

4.50%

2.362

1.1762

25.30% 21.10% 10.60%

2.789

1.2795

N

A

SA

Table 4.3 showed that the statement with the highest mean score observed in the results was Staff carryout work that meets clients expectations (Mean=3.89; Standard Deviation=0.846). The second most ranked statement was Employees complete tasks given to them on time (Mean=3.79; Standard Deviation=0.767) followed by Employees record activities and keep track of evidences (Mean=3.65; Standard Deviation=1.121). All the statements for employee performance had mean scores of more than two. These findings

48

showed that employees generally agreed with the statements on the relationship between employee performance and customer service quality.

4.4.1 Challenges at KEBS that which addressed, will significantly increase and boost employee performance The respondents were asked to give out their opinion based on the challenges experienced, that which if addressed, would boost their performance. The results of the analysis were computed using SPSS and excel as shown in Table 4.5. Table 4.4 Challenges experienced at KEBS Statements

Frequency

Percent

51 44 139 24 7 265

19.2 16.6 52.5 9.1 2.6 100

Not Applicable Mgt. Issue HR Issue Departmental Issue Communications Issue Total

Valid Percent 19.2 16.6 52.5 9.1 2.6 100

Cumulative Percent 19.2 35.8 88.3 97.4 100

Results from Table 4.4, showed that 53% of the respondents based their opinion to human resource issues such as promotions, bonuses, increments, rewards, favorism and trainings be catered for whereas 19% of the respondents had no opinion whatsoever. Further, from the analysis, 17% of the respondents elaborated that the major challenges experienced were from management side clearly indicating issues such as lack of leadership, lack of top management support and implementation, nepotism, organizational politics, poor organization structure and organizational culture, tribalism, poor monitoring and evaluation systems not in fruition as was considered to be very biased. More so, Table 4.4 showed that 9% of the respondents felt that the challenges were departmental based, in that there was lack of support from supervisors/subordinates, lack of clear set out roles, targets and lack of adequate resources and equipment to carry out work. Lastly, 3% of the respondents were of the opinion that the challenges were as a 49

result of poor means of communication within the organization context, media of communication used was not adequate, complaints handling procedures were not adhered to, and issues of unresolved complaints, hence respondents felt discouraged and were not confident to air out their outcries no matter what they were exposed to. 4.4.2 Do employees conduct knowledge transfer in your department/division? Respondents were asked to comment on whether employees conduct knowledge transfer, after possible trainings. The results of the analysis were analyzed using excel and SPSS as Is knowledge transfer done?

Valid

Yes No Total

Frequency 155 110 265

Percent 58.5 41.5 100.0

Valid Percent 58.5 41.5 100.0

Cumulative Percent 58.5 100.0

indicated in Table 4.5. Table 4.5: How often employees conduct knowledge transfer

From the Table 4.5 analysis, 58% of the respondents agreed Yes, that employees undertook knowledge transfer in their departments or divisions but with exception that, it is conducted based on training reports only, that were forwarded and filed, hence limiting sharing to other employees in the same line of operation/expertise, in gaining access of its relevance. Further, 42% of the respondents disagreed (No), that employees do not conduct knowledge transfer in their departments. 4.4.3 Staff training has changed your perception on KEBS staff training department, positively or negatively The respondents were asked to explain how staff training had changed their perception on the training department. The results from the analysis were computed and analyzed using SPSS on frequencies as shown in Table 4.6.

50

Table 4.6 Staff training has changed perception of the respondents Staff Training has changed perception of staff

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Not Applicable

50

18.9

18.9

18.9

Negatively Positively Total

61 154 265

23.0 58.1 100.0

23.0 58.1 100.0

41.9 100.0

Results from Table 4.6 showed that 58% of the respondents said Yes. This implies that majority believed that staff training has changed their perception towards the training department positively as they had been able to embrace and utilize the new skills gained, increased efficiency and effectiveness in enhancing work productivity, self-development and achieving set targets through improved performance. 23% of the respondents said no, meaning that their perception towards training department, was negatively stimulated. This was due to biasness in training selection, lack of training schedule, lack of transparency between the training representatives and the training department, limited funds or budget allocation for training etc. 19% of the respondents did not fill in the question. 4.4.4 Relationship between staff training and customer service quality The respondents were asked to fill questions in line with the effect of staff training on customer service quality. The results and analysis were computed using excel and SPSS as shown in Table 4.7. Staff Training has changed perception of staff Valid Cumulative Frequency Percent Percent Percent Valid

Not Applicable

50

18.9

18.9

18.9

Negatively Positively Total

61 154 265

23.0 58.1 100.0

23.0 58.1 100.0

41.9 100.0

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Table 4.7: Statements relating to the effect of staff training on customer service quality delivery Descriptive Statistics Statements

SD

D

N

A

SA

Mean

Std. Deviation

Skills acquired have creased due to number of trainings attended

6.40%

6.40% 27.50% 49.80%

9.80%

3.502

0.9814

Staff training improves skills and competences

2.30% 10.20% 14.30% 55.50%

17.70%

3.762

0.9375

Employees put into practice new knowledge and skills

1.10%

9.40% 30.60% 49.10%

9.80%

3.57

0.837

Employees share knowledge acquired after training

3.40% 20.00% 29.40% 37.40%

9.80%

3.302

1.0073

Number of staff training is 17.70% 24.50% 27.90% 23.40% adequate

6.40%

2.762

1.1807

Employees attend a 14.30% 19.60% 26.40% 21.90% minimum of one training

17.70%

3.091

1.3024

Staff training attended is part of the skills gap in JD

3.40% 12.10% 20.40% 41.90%

22.30%

3.675

1.0555

Employees attend trainings approved in the training plan

5.70% 12.50% 27.50% 37.40%

17.00%

3.475

1.0873

Employees undertake regular training in areas of expertise only

6.00% 14.00% 26.00% 35.50%

18.50%

3.464

1.1246

Staff training is relevant

0.40%

7.50% 13.60% 37.70%

40.80%

4.109

0.933

Staff training is conducted based on training needs assessment

1.50%

8.30% 33.20% 42.60%

14.30%

3.6

0.8868

Employees are evaluated 11.30% 15.80% 35.10% 27.90% after attending trainings

9.80%

3.091

1.1312

29.10%

3.936

0.9922

Staff training improves performance and results

2.30%

6.00% 14.30% 48.30%

52

Table 4.7 showed that the statement with the highest mean score observed in the results was Staff training is relevant (Mean=4.10; Standard Deviation=0.933). The second most ranked statement was Staff training improves performance and results (Mean=3.93; Standard Deviation=0.992) followed by Staff training improves skills and competences (Mean=3.76; Standard Deviation=0.937). All the statements for staff training had mean scores of more than three. These findings showed that employees generally agreed with the statements on the relationship between staff training and customer service quality.

4.4.5 How many staff trainings would you recommend for KEBS to conduct per staff in a year? Respondents were asked to indicate the number of staff trainings that they found appropriate for KEBs to conduct per staff, per year. The results were analyzed using excel and SPSS as shown in Table 4.8. Table 4.8 Table showing number of staff trainings

Valid

Frequency N/A 1 2 3 4 Total

Staff Training Percent Valid Percent Cumulative Percent 31 11.7 11.7 54 20.4 32.1 90 34 66 49 18.5 84.5 41 15.5 100 265 100

Results from Table 4.8, revealed that 34% majority of the respondents recommended for at least two trainings per staff for every year while, 20% of the respondents who recommended that at least one training per staff was reasonable and adequate. Further, 19% of the respondents recommended that at least three trainings per staff was suitable every year whereas, 16% of the respondents recommended that at least four trainings per staff in a year serves right. From the results therein, it showed that staff training was regarding as crucial for improved performance of employees and for overall organizational productivity. According to the 53

responses remarks, respondents were on consensus that at least two trainings per staff per year was quite adequate and would be appropriate based on the relevance of the training, availability of budget, benefit of the training to the individual and organization as well as consideration for experience, qualifications, and job position, with regards to type of training attended. 4.4.6. Do you think there is a need for improvement in customer service quality at KEBS? Respondents were asked whether there was need for improvement on customer service quality. The results and analysis were analyzed as shown in Table 4.9. Table 4.9. Need of improvement on Customer service quality Customer Service Quality Valid

Frequency Yes No Total

Percent Valid Percent Cumulative Percent 247 93.2 93.2 18 6.8 6.8 265 100 100

93.2 100

Results from table 4.9 showed that 93% of the respondents agreed Yes, to the need for improvement on customer service quality whereas 7% of the respondents disagreed No, that there was no need for improvement on customer service quality at KEBS. This implies that customer service quality was regarded highly for success and survival of the organization in the modern competitive world. 4.4.7 Joint effect on relationship between Employee Performance, Staff training and Customer Service Quality The respondents were asked to explain the joint effect of employee performance, staff training and customer service quality. The results were analyzed and computed using excel and SPSS as shown in Table 4.10.

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Table 4.10 Relationship between employee performance, staff training and customer service quality

Statements There is full adherence to customer service charter Turnaround time for addressing complaints is adequate Quality of KEBS customer service is good Training on customer service is necessary for excellence

SD

D

SA

Mean

Std. Deviation

N

A

2.30% 10.20%

29.10%

43.40%

15.1

3.589

0.9418

0 22.30%

21.90%

39.20%

16%

3.502

1.0155

3.00%

4.90%

24.50%

43.80% 23.80%

3.804

0.957

1.50%

3.80%

10.90%

32.10% 51.70%

4.287

0.9133

Training on customer relations is important for employees

1.10%

5.70%

10.60%

29.40% 53.20%

4.279

0.9442

Speed of customer service is fast

2.30% 11.30%

28.30%

44.20% 14.00%

3.562

0.9439

Quick responses to enquiries Staff are friendly Are knowledgeable Are professional Have high integrity

3.40% 4.20% 0 0.80% 4.50%

8.70% 4.20% 5.70% 5.30% 7.20%

25.70% 15.80% 12.10% 16.60% 22.30%

44.90% 55.10% 53.60% 47.90% 44.90%

17.40% 20.80% 28.70% 29.40% 21.10%

3.642 3.842 4.053 4 3.709

0.9788 0.9401 0.796 0.8616 1.0236

Employees would recommend KEBS to a friend/customer

0.80%

1.90%

11.70%

44.30% 37.40%

4.166

0.8543

1.50%

5.30%

19.60%

41.50% 32.10%

3.974

0.931

1.10% 13.60%

29.40%

38.10% 17.70%

3.577

0.9705

Customer care has improved for better Expectations on customer care request/complaints are met

Table 4.10 showed that the statement with the highest mean score observed in the results was Training on customer service is necessary for excellence (Mean=4.28; Standard Deviation=0.913). The second most ranked statement was Training on customer relations is important for employees (Mean=4.27; Standard Deviation=0.944) followed by 55

Employees would recommend KEBS to a friend/customer (Mean=4.16; Standard Deviation=0.854). All the statements for customer service quality had mean scores of more than three. These findings showed that employees generally agreed with the joint statements on the relationship between employee performance, staff training and customer service quality. 4.5 Correlation Analysis for all Variables Pearson's correlation is used when one is working with two quantitative variables in a population to establish the magnitude and direction of the relationship. The possible research hypotheses are that the variables showed a positive linear relationship, a negative linear relationship, or no linear relationship at all or interdependence between two variables. (Stevenson, 2009). The Pearson correlation coefficient, r, can take a range of values from +1 to -1. A value of 0 indicates that there is no association between the two variables. A value greater than 0 indicates a positive association; that is, as the value of one variable increases, so does the value of the other variable (Stevens, 2009). A value less than 0 indicates a negative association; that is, as the value of one variable increases, the value of the other variable decreases. In this study the Pearson correlation coefficient, r, was used to show the degree and significance of the relationship between variables. Correlation analysis for this study was done using excel and SPSS. To establish the relationship between employee performance, staff training and customer service quality, Pearson’s bivariate correlation was used and the findings are as shown in Table 4.11.

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Table 4.11 Correlation Analysis Results Correlations

EMPLOYEE PERFORMANCE

STAFF TRAINING

EMPLOYEE PERFORMANCE

STAFF TRAINING

Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N

1

CUSTOMER SERVICE QUALITY

265 .323** 0 265

Pearson Correlation .213** Sig. (2-tailed) 0 N 265 **. Correlation is significant at the 0.01 level (2-tailed).

CUSTOMER SERVICE QUALITY .323** 0 265 1 265 .252** 0 265

Pearson correlation analysis was conducted at 95% confidence interval and 5% confidence level 2 tailed. From the findings, Table 4.11 indicates that there was a positive correlation between customer service quality and employee performance (r=0.213, p=0.000), a positive correlation between customer service quality and staff training (r = 0.252, p=0.001) and a positive correlation between employee performance and staff training (r = 0.323, p=0.001). 4.6 Tests of Hypotheses The objective of the study was to determine the relationship between employee performance, staff training and customer service quality. Inferential statistics were carried out using bivariate and multivariate linear regression to determine the relationship between each of the independent variable and organizational performance and the effect of the moderator variable and mediator variable. Analysis of Model summary, Variance (ANOVA) and co-efficient was conducted to establish whether the whole model was significant fit of the data. To test the hypotheses, the analysis of variance (ANOVA) and F-test were carried out. Linear regression

analysis was used to test all the hypotheses:

57

4.6.1 Relationship between employee performance and customer service quality The study conducted a regression analysis between employee performance and customer service quality at KEBS. The findings are presented in Table 4.8. A simple linear regression model of the form CSQ = a+b*Employee Performance was used to test the hypothesis. The results of the test are provided in Table 4.12. Table 4.12 Overall Model for Employee Performance and Customer Service Quality Model Summary Adjusted R Model R R Square Square 1 .213a 0.045 0.042 a. Predictors: (Constant), EMPLOYEE PERFORMANCE

Std. Error of the Estimate 0.5998

Results from the regression analysis Table 4.12 showed the model summary of employee performance with adjusted R square (R2) of 0.042. This means employee performance explains 4.2% of customer service quality at KEBS. The remaining 95.8% explained by other factors not included in the model. ANOVA tests were further done to determine strengths and statistical significance of this relationship. Table 4.13 shows results from ANOVA tests. Table 4.13 ANOVA for regression between Employee Performance and Customer Service Quality ANOVA Mean Sum of Squares df Square Regression 4.505 1 4.505 Residual 94.617 263 0.36 Total 99.122 264 a. Dependent Variable: CUSTOMER SERVICE QUALITY b. Predictors: (Constant), EMPLOYEE PERFORMANCE Model 1

F 12.521

Sig. .000b

From the ANOVA Table 4.13, the model is statistically significant as the p-value is less than 0.05. The values of F = 12.521, P < 0.05, revealed that employee performance is

58

statistically and significantly predicts the customer service quality hence, the regression model is a good fit of the data. Table 4.14 Coefficient of Regression between employee performance and customer service quality The results were analyzed using excel and SPSS to show the relationship as analyzed in Table 4.14. Table 4.14: Coefficients of regression between employee performance and customer service quality Unstandardize Std. Standardized Model dB Error Beta (Constant) 3.06 0.228 EMPLOYEE 1 PERFORMANCE 0.259 0.073 0.213 a. Dependent Variable: CUSTOMER SERVICE QUALITY

t 13.426

Sig. 0

3.539

0

Regression results from Table 4.14, revealed that there was a positive and significant relationship between employee performance and customer service quality (β = 0.213, p=0.000). These findings agreed with that of Swabra (2014) who found that employee performance have a significant effect on customer service delivery. 4.6.2 Mediating effect of staff training on the relationship between employee performance and customer service quality The Baron and Kenny (1986) approach on testing for mediation was employed for the purpose of testing this hypothesis. For mediation to be confirmed, four conditions should be fulfilled: 1. The independent variable is significantly related to the dependent variable in the absence of the mediating variable. 2. The independent variable is significantly related to the mediator variable. 3. The mediator variable is significantly related to the dependent variable. 4. When controlling for the effect of the mediating variable on the dependent variable, the effect of the independent variable on the dependent variable is not significant in the presence of the mediating variable. 59

The study conducted a regression analysis between staff training and customer service quality at KEBS. The findings are presented in Table 4.15. Table 4.15 Model Summary for regression on mediating effect of Staff Training on Employee Performance and Customer Service Quality

Model Summary Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1 .288a .083 .079 a. Predictors: (Constant), EMPLOYEE PERFORMANCE, STAFF TRAINING

.58798

Results from the regression analysis Table 4.15 showed that the effect of staff training on employee performance is significant with adjusted R square (R2) of 0.079. This means staff training explains 8% of customer service quality at KEBS. The remaining 92% is explained by other factors not included in the model. ANOVA tests were further done to determine strengths and statistical significance of this relationship. Table 4.16 shows results from ANOVA tests. Table 4.16 ANOVA for regression on mediating effect for Staff Training on Employee Performance and Customer Service Quality ANOVAa Sum of Model Squares df Mean Square F 1 Regression 8.197 1 8.197 23.710 Residual 90.925 263 .346 Total 99.122 264 a. Dependent Variable: CUSTOMER SERVICE QUALITY b. Predictors: (Constant), EMPLOYEE PERFORMANCE, STAFF TRAINING

Sig. .000b

From the ANOVA Table 4.16, the model is statistically significant as the p-value is less than 0.05. The values of F = 23.710, P < 0.05, revealed that staff training is statistically 60

and significantly predicts the customer service quality. Hence, the regression model is a good fit of the data which states that the independent variable should be significantly related to the dependent variable in the absence of the mediating variable is thus satisfied. Table 4.17 Coefficient for regression on mediating effect of Staff Training on Employee Performance and Customer Service Quality The results were analyzed using excel and SPSS to show the relationship as analyzed in Table 4.17.

Model 1 (Constant) EMPLOYEE PERFORMANCE, STAFF TRAINING

Coefficientsa Unstandardized Coefficients Std. B Error 2.590 .262 .193

Standardized Coefficients

.040

Beta

t 9.869

Sig. .000

.288

4.869

.000

a. Dependent Variable: CUSTOMER SERVICE QUALITY

Regression results from Table 4.17, revealed that there was a positive and significant mediating relationship of staff training on the relationship between employee performance and customer service quality (β = 0.288, p=0.000). These findings agreed with that of Ahmed (2014) who found that staff training have a significant effect on employee performance. The study conducted a regression analysis between staff training and customer service quality at KEBS. The findings are presented in Table 4.18.

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Table 4.18 Model for regression between Staff Training and Customer Service Quality Model Summary Adjusted R Model R R Square Square a 1 .252 0.063 0.06 a. Predictors: (Constant), STAFF TRAINING

Std. Error of the Estimate 0.59411

Results from the regression analysis Table 4.15 showed the model summary of staff training with adjusted R square (R2) of 0.060. This means staff training explains 6% of customer service quality at KEBS. The remaining 94% is explained by other factors not included in the model. ANOVA tests were further done to determine strengths and statistical significance of this relationship. Table 4.16 shows results from ANOVA tests. Table 4.19 ANOVA for regression between Staff Training and Customer Service Quality ANOVAa Sum of Squares

df

Mean Square

F

Sig.

Regressio n

6.293

1

6.293

17.828

.000b

Residual

92.829

263

0.353

Model

1

Total 99.122 264 a. Dependent Variable: CUSTOMER SERVICE QUALITY b. Predictors: (Constant), STAFF TRAINING

From the ANOVA Table 4.16, the model is statistically significant as the p-value is less than 0.05. The values of F = 17.828, P < 0.05, showed that staff training is statistically and significantly predicts the customer service quality hence, the regression model is a good fit of the data.

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Table 4.20 Coefficient of Relation between staff training and customer service quality The results were analyzed using excel and SPSS to show the relationship as analyzed in Table 4.17. Coefficientsa Unstandardized B 2.982

1

Std. Error .210

Standardized Beta

(Constant) STAFF .251 .059 TRAINING a. Dependent Variable: CUSTOMER SERVICE QUALITY

.252

t

Sig.

14.177

.000

4.222

.000

Regression results from Table 4.17, revealed that there was a positive and significant relationship between employee performance and customer service quality (β = 0.252, p=0.000). These findings agreed with that of Ahmed (2014) who found that staff training have a significant effect on employee performance. 4.6.3 Joint effect between employee performance, staff training and customer service quality (H03) The study was conducted on regression analysis between employee performance, staff training and customer service quality at KEBS. The regression analysis was computed using excel and SPSS as shown in Table 4.18 Table 4.21 Model for regression between Employee Performance, Staff Training on Customer Service Quality Model Summary Model

R 1

R Square .288a

0.083

Adjusted R Square 0.076

Std. Error of the Estimate 0.58905

a. Predictors: (Constant), STAFF TRAINING, EMPLOYEE PERFORMANCE b. Dependent Variable: CUSTOMER SERVICE QUALITY

The results presented in the Table 4.21 showed the fitness of model used in the regression model in explaining the study phenomena. Employee performance and staff training were found to be satisfactory variables in explaining their effect on customer service quality. This is supported by co-efficient of determination also known as the R square of 8.3%. 63

This means that employee performance and staff training explain 8.3% of the variations in the dependent variable customer service quality is explained by the model. This result further means that other factors not studied in this research contribute 91.7% in the dependent variable. ANOVA tests were further done to determine strengths and statistical significance of this relationship. The results were analyzed using excel and SPSS. Table 4.22 shows results from ANOVA tests. Table 4.22 ANOVA for joint regression between Employee Performance, Staff Training on Customer Service Quality ANOVAa Model 1

Sum of Squares

df

Mean Square

F

Sig.

11.837

.000b

Regression Residual

8.214

2

4.107

90.908

262

.347

Total

99.122

264

a. Dependent Variable: CUSTOMER SERVICE QUALITY b. Predictors: (Constant), STAFF TRAINING, EMPLOYEE PERFORMANCE

Table 4.22 provides the results on the analysis of the variance (ANOVA). The results indicated that overall model was statistically significant. Further the results imply that the independent variables (employee performance and staff training), indeed affect the quality of customer service at Kenya Bureau of Standards. This was supported by an F-statistics of 11.837 and the reported p value (p≤0.000) which was less than the conventional probability value of 0.05 significance level. Further tests for regression co-efficients were analyzed using excel and SPSS. The results are presented in Table 4.23.

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Table 4.23 Coefficient of regression for joint effect between employee performance, staff training on customer service quality

Coefficientsa Unstandardized

Std.

Standardized

B

Error

Beta

2.597

.265

.179

.076

.203

.062

Model 1

(Constant) EMPLOYEE PERFORMANCE STAFF TRAINING

t

Sig.

9.807

.000

.147

2.353

.019

.204

3.270

.001

a. Dependent Variable: CUSTOMER SERVICE QUALITY

Regression results revealed that there was a positive and significant relationship between employee performance (β = 0.147, p=0.019). This implied that a unit increase in employee performance would lead to an increase in customer service quality by 0.147 units. These findings agreed with that of Hassan (2015) who found that employee performance have a significant effect on organizational performance. Results further showed that there was a positive and significant relationship between staff training on customer service quality (β= 0.204, p=0.001). This implied that a unit increase in staff training would increase customer service quality by 0.204. These findings agreed with that of Khaemba (2017) and Githiri (2015), who found that training have a significant effect on customer service delivery and organizational performance. The optimal model of the study is; Y = α + β1X1 + β2X2 + ℮ Where: Y is Customer Service Quality; α is a constant amount; β1 & β2 rep the coefficients; X1 is Employee Performance; X2 is Staff Training; ℮ is the error term that reflect other variables to have an effect on Y. C.S.Q = 2.597 + 0.147 Employee Performance + 0.204 Staff Training 65

Since all the variables had a p