Organizational Learning and employee performance. An Indirect Effect Model of Employee Loyalty

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186

Organizational Learning and Employee Performance. An Indirect Effect Model of Employee Loyalty

 Grace Orinda^1*, Dr. Patrick Limo², Dr. Joel Chepkwony^3
1,2,3 Moi university, Kenya
Corresponding author*

Abstract: The purpose of this study was to determine the indirect effect of employee loyalty on organizational learning and employee performance. The study adopted a cross-sectional designand systematic random sampling techniques in collecting data from a sample of 411 sampled from a target population of 2433 bank employees in Kenya. Findings reveal that organizational learning affects employee performance and also influences employee loyalty. Additionally, results show that organizational learning has an indirect effect on employee performance via employee A loyalty, thus revealing a partial mediation process. Banks should improve on organizational learning strategies through enhancement of knowledge awareness, intellectual cultivation and information sharing which enhances their commitment/loyalty to their work, thus increasing employee performance. The findings of this study bring new insights into theory and literature through the indirect process by unveiling a partial mediation mechanism on the link between organizational learning and employee performance.

Key words: Organizational Learning, Employee Loyalty and Employee performance.

I. INTRODUCTION

Employee performance is the job-related activities expected of an employee and how those activities are executed (Dugguh & Dennis, 2014). According to ul Hassan, Shaukat, Shakeel, and Imran (2012) high organizational performance is attained through enhanced employee performance. It is the behavior that accomplishes results in an organization (Balouch & Hassan, 2014).Employee performance is what people do that can be observed and measured in terms of each individual’s experience or level of contribution (Pulakos, Arad, Donovan, & Plamondon, 2000). Jones and Zsidisin (2008)also state that performance can be viewed as an evaluation of the results of a person’s behavior which includes determining how well or poorly a task has been completed.

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