EFFECT OF ORGANIZATIONAL SOCIAL FACTORS ON EMPLOYEES’ PERFORMANCE IN SELECTED COMMERCIAL BANKS IN ABUJA, NIGERIA

Abstract

Despite the substantial strides made in the Nigerian banking sector Commercial Banks in Abuja Nigeria is still faced with challenges caused by inadequate communication channels, lack of trust, poor leadership and Inadequate or inequitable reward systems which lead to a lack of initiative, decreased productivity, and a decline in overall performance. This study therefore sought to examine organizational social factors elements of Reward and Trust, and how it affects the employees’ performance of selected commercial banks in Abuja, Nigeria. The study adopted a survey research design whereby structured 5-point likert scale questionnaire were administered to a sample of two hundred and ninety-one (291) staff of commercial Banks in Abuja Nigeria. Partial Least Square structural equation modelling was employed to test the hypotheses formulated of which the study found that reward and trust have positive and significant effect on employees’ performance of selected commercial banks in Abuja. The study recommends that Banks should develop a well-structured system that recognizes and rewards employees' contributions and achievements in a fair and transparent manner. This system should include monetary rewards, promotions, bonuses, and other forms of recognition based on performance. Banks should actively invest in trust-building initiatives that foster positive relationships among employees, between employees and management, and between employees and the organization itself. This may include team-building activities, open communication channels, and transparency in decision-making processes.