Antecedents Influencing Employee Performance in the VUCA World of Commercial Banks in Thailand

Abstract

In this research investigation, the researchers examine the consistency of the model with the empirical data and investigate the management approaches of antecedents affecting employee performance in the VUCA world of commercial banks in Thailand. The mixed-methods research of quantitative and qualitative approaches was employed. In the quantitative research, the sample population consisted of 555 employees in commercial banks in Thailand. The technique of multi-stage sampling was employed. The research instrument was a questionnaire. The index of item objective congruence (IOC) of 0.60-1.00 was considered to be consistent with the accepted criteria of 0.50. The Cronbach’s alpha coefficient or the reliability of each component of 0.700-0.896 was considered to be consistent with the generally accepted criteria of not less than 0.700.  Descriptive statistics and the structural equation model were employed. In the qualitative research, the key informants consisted of ten executives of commercial banks in Thailand using the technique of purposive sampling with in-depth interviews. The conclusion was conducted using the inductive analysis. The quantitative and qualitative research findings were then integrated.

Findings showed that the highest proportion of the members of the sample population strongly agreed that all four aspects of the antecedents were important and exhibited an influence on employee performance at the highest level. Employee performance was directly and indirectly influenced by such antecedents. The task and contextual performance exhibited a supportive relationship but differed in importance according to the nature of the work. The adjusted structural equation model was consistent with the empirical data based on the qualified fit index (² = 101.40, df = 80, ²/df = 1.27, p-value = 0.05, RMSEA = 0.02, CFI = 1.00, GFI = 0.98, AGFI = 0.96). The hypothesis analysis supported all items at the statistically significant level of 0.01.

In regard to the management approaches to ensure good employee performance and efficiency in the VUCA world, it should start with employees having the characteristics of transformational leadership and innovative work behaviors. They need to have work engagement, understanding, and apply the human resource management model appropriately. Most importantly, the organization must adequately support both skills and tools. Such antecedents should be consistently developed for employees at all levels. Transformational leadership and innovative work behaviors should be integrated with major activities.