Abstract:
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.
Keywords
Job Rotation, Corporate, Financial Performance, Commercial Banks
