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 JFRM  Vol.10 No.2 , June 2021
Effect of Cross Functional Job Rotation on Corporate Financial Performance of Commercial Banks in Kenya
Abstract: This study sought to examine the effects of cross functional job rotation on corporate financial performance of commercial banks. This study was informed Resource-Based Theory. The study employed positivism. In this study, explanatory research design was adopted. The study targeted 814 employees from 43 commercial banks operating in Kenya according to the CBK supervisory report in 2018. Simple random was used to select 267 employees. Structured questionnaire was used to collect data. Cronbach alpha was used Reliability, while factor analysis was used to test validity. Data was analyzed using both descriptive statistics and inferential statistics. Findings from Multiple regression showed that job rotation (β1 = 0.169, p < 0.05), had a positive and significant effect on firm performance thus, the study infers that job rotation practices are major determinants of financial performance in banks. In addition, job rotation is likely to strongly improve financial performance. It is also, important for supervisors to allow employees to make decisions without having to consult them regularly. It is utmost necessary for the employees to actively participate in top decision making. Furthermore, the organization structure should be in such a way that it is flexible.
Cite this paper: Ondiba, P. , Cheruiyot, T. and Sulo, T. (2021) Effect of Cross Functional Job Rotation on Corporate Financial Performance of Commercial Banks in Kenya. Journal of Financial Risk Management, 10, 187-199. doi: 10.4236/jfrm.2021.102011.
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