Employee Performance Factors in the Nepalese Commercial Banks: Insights from Emerging Markets

Abstract

. The study examined the factors impacting employee performance in Nepalese Commercial Banks (NCBs) employing quantitative methodologies. The study assessed the effect of remuneration, working environment, training, supervisory assistance, and organizational culture on the NCB's performance based on the survey among 418 respondents. The study's findings indicated that organizational culture (β = 0.386, p = 0.000) had the most significant influence on the EP of the NCBs. Keeping all other independent variables constant, an increase of one unit in organization culture would increase to 0.582 units in EP, followed by increases of 0.312 units in training (β = 0.133, p < 0.05), 0.225 units in supervisor support (β = 0.146, p < 0.05) , 0.196 units in the working environment (β = 0.112, p < 0.05) , and 0.069 units in remuneration (β = - 0.04, p > 0.05). Theoretical implications of evaluating employee performance characteristics include social exchange theory, which argues that empowered and valued individuals are more likely to perform well. Reciprocal social exchange partnerships only form if all parties value the transaction and feel they can contribute. As a practical implication, employees who are satisfied with their workplace interactions are likelier to perform well. Examining and identifying the workplace factors of performance can help managers further understand and improve employee performance. This is how, as a practical contribution, it explains how working in a friendly, cooperative, and affirming organizational culture leads to superior job performance. Hence, Commercial banks must focus on enhancing the working environment, providing training and supervisory assistance, and, most importantly, developing an organizational culture that affects employee performance.