Influence of Goal Setting and Sustainable Firm Performance of Commercial Banks in Eldoret, Kenya

Abstract

The purpose of this study was to determine the relationship between goal setting and sustainable firm performance of commercial banks in Eldoret. The objective was to determine the effect of goal setting on sustainable firm performance. This study was based on Goal theory. The study adopted an explanatory survey design and the target population being 1150 employees. The sample size was obtained using Slovin’s formula and a sample size of 297 was used. Questionnaire was used. A pilot study done Nakuru and experts judgment used to determine validity. Cronbach’s alpha was used to test reliability. Data was analyzed using descriptive and inferential statistics and presented in form of tables. Correlation results showed that relationship between goal setting and sustainable firm performance was positive and statistically significant (r=0.717, p<0.05). The study concludes that employees should be given clear and specific goals, employees should be able to satisfy both their organizational and personal goals, in order for the banks to realize sustainable performance. Leaders should demonstrate strong leadership skills and employees should be trained in order for them to do well in their job. The study recommended that; the organization should give clear and specific goals to employees; seniors should always treat employees fairly