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Advances in Social Sciences Research Journal – Vol. 11, No. 2.2

Publication Date: February 25, 2024

DOI:10.14738/assrj.112.2.16407.

Zainisham, N. H. & Zaman, M. D. K. (2024). A Study on the Factors that Affect Employees’ Performance in the Banking Sector in

Malacca, Malaysia. Advances in Social Sciences Research Journal, 11(2.2). 469-485.

Services for Science and Education – United Kingdom

A Study on the Factors that Affect Employees’ Performance in the

Banking Sector in Malacca, Malaysia

Nurhudatul Haziqah Zainisham

hudahaziqah87@gmail.com

Universiti Teknologi Mara, Puncak Alam, Malaysia

Maliza Delima Kamarul Zaman

*Corresponding author: malizadelima@uitm.edu.my

Universiti Teknologi Mara, Puncak Alam, Malaysia

ABSTRACT

Employees’ performance is the main issue in the current situation especially since

Covid-19. Covid-19 has compelled every sector of society to adopt technology and

banking sector was no exception. This means employees must be able to use

technology to work from office or home as the new norm. Better performance can

only be accomplished when employees use their individual talents to boost the

organization's performance. This is because employees’ performance is crucial to

organizations in the twenty-first century. It enables the organizations to compete

advantageously with other businesses in the ever-changing environment.

Therefore, this study will be carried out to examine the relationship between

motivation, job design, management style, working conditions, workplace reward

and training development on employees’ performance. Stratified random sampling

will be employed in this study with the respondents of employees from selected

banks in Hang Tuah Jaya, Malacca. In this study, the population number of banking

employees would be 250 and the sample size of employees in the selected banking

sector in Hang Tuah Jaya, Malacca is 152. The pilot test was successfully carried out

with a sample size of 35 employees of the banking sector. The data from this study

will be collected through the distribution of the questionnaire. To answer the

research questions, the data will be analyzed with correlation and regression of

Statistical Package for Social Science (SPSS Version 28).

Keywords: Employees’ Performance, Banking sector, Motivation, Job design,

Management style.

INTRODUCTION

The banking sector is responsible to offer services to consumers in terms of giving answers to

financial demands, and in order to do so, they must be secured by human resources to perform

successfully. In the banking sector, strong performance of human resources is essentially

required in order to realize the employee's vision and purpose. Employees’ performance

management is an organizational procedure that coordinates employee performance metrics,

skill and competency requirements, development plans, and delivery of outcomes [1].

According to the business dictionary, it refers to the tasks a person must complete as part of

their employment and how successfully they complete them. Different sorts of resources, such

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Advances in Social Sciences Research Journal (ASSRJ) Vol. 11, Issue 2.2, February-2024

Services for Science and Education – United Kingdom

as human capital, money, machinery, and raw materials, are used in an organisational

environment to facilitate the smooth operation of an organization [2]. The only living resource

an organization has out of all of them is its human capital. Any organization may afford the

proper supplies, sufficient funds, and even modern machinery to carry out its activities

efficiently, but not every organization can afford better human capital [1].

An organization's human resources are a major element since they give the organization a

competitive advantage over rivals in the same sector. Employee performance is crucial to

organizations in the twenty-first century because it enables them to compete successfully.

According to [3], a person's performance may be influenced by a variety of elements, such as

their personality, the values they were raised with, their attitudes, and their competence, which

is a combination of how they see the world and what drives them. However, it was also noted

that biographical details including a person's age, gender, marital status, and degree of seniority

could not actually provide precise and conclusive evidence of correlations to increase employee

performance. According to [4] there are several tools that could be used to gauge an

organization's success. The first tool is the 360-degree feedback, which is utilized on managers

by the individuals who often interact with them. Second, the balanced scorecard, which

combines quantitative data like sales quotas and budget position, may be used. Another useful

method is management by objectives, in which managers set goals for their staff members and

then evaluate them at the end of a period to determine if they were met.

As [3] pointed out that employee performance depends on both motivation and ability,

therefore it makes sense to have strategies that attempt to improve both. As a result, there are

numerous means for employees to acquire the necessary abilities such as careful selection and

training and numerous incentives to increase motivation and different forms of financial and

non-financial rewards. In addition to this, the equation is used to express how three elements

affect work performance. This equation states that environment, aptitude, and motivation are

the three main factors affecting employee performance. Therefore, it is crucial to ascertain what

aspects of the workplace environment influence how well employees perform.

Employees’ performance is the main issue in the current situation. According to [3], the

workplace is host to all the forces and compelling factors that are currently or may someday

conflict with the actions and performance of the employees. The variables which are caused to

influence employee performance in the organization comprise management, motivation,

working conditions and training. Employee performance is viewed as an indicator in the

banking sector to comply, dismiss, promote, or transfer to another department or branch. As a

result, it is critical for the bank's employer to detect and assess its employees' performance,

since any deterioration in job performance might affect the banks and other employees'

productivity. However, the core problem that banks are presently experiencing is the essential

question of what significant factors were seen as most critical by banking employees in

determining their performance.

Therefore, Covid-19 compelled every sector of society to adopt this technologically advanced

world. This means employees must be able to use technology to work from home to circumvent

government laws that forcibly distance people from one another. According to a recent Gartner

survey, 73% of organizations that typically perform formal evaluations around the halfway

point of the year will do so this year. They thought that performance reviews may be a useful