Journal of
the Kenya Counselling and Psychological Association

OFFICIAL PUBLICATION OF THE KENYA COUNSELLING AND PSYCHOLOGICAL ASSOCIATION
  • Abbreviation: J. Kenya Couns. Psychol. Assoc.
  • DOI: 10.5897/JOKCPA
  • Start Year: 2020
  • Published Articles: 1

Full Length Research Paper

Employee counseling and performance of employees in commercial banks in Kenya

Weldon K. Ng’eno
  • Weldon K. Ng’eno
  • Department of Public Policy and Administration, School of Humanities and Social Sciences, Kenyatta University, Kenya.
  • Google Scholar
Hannah Bula
  • Hannah Bula
  • Department of Business Administration, School of Business, Kenyatta University, Kenya.
  • Google Scholar
David Minja
  • David Minja
  • Department of Public Policy and Administration, School of Humanities and Social Sciences, Kenyatta University, Kenya.
  • Google Scholar


  •  Received: 23 July 2020
  •  Accepted: 03 November 2020
  •  Published: 31 December 2020

 ABSTRACT

The study sought to determine the extent to which employee counselling programs affected employee performance within the commercial banks in Kenya. It was guided by positivist philosophy and used descriptive research design targeting 30,903 employees of the 43 banks. Proportionate stratified combined with purposive sampling was used to identify 395 respondents. Reliability and validity of the instrument was tested using Cronbach alpha (α) and expert opinion respectively. Structured questionnaires were used for primary data while other studies, libraries, worldwide web and organizational reports provided secondary data. Descriptive statistics and regression model was used to analyze quantitative data while content analysis was utilized to analyze qualitative data. Employee performance was found to be affected positively by the employee counseling programs (61.8%). Employee counseling programs should be enhanced to improve performance. Commercial banks should consider policy changes on employee counseling programs, and that there would be need to incorporate them in the Employment Law of Kenya. The study suggest that further study needs to be conducted on the on the other factors that affects the performance of employees at the commercial banks in Kenya since only 61.8% of the changes can be explained by the changes in employee counseling programs.

 

Key words: Employee counseling programs, employee performance, commercial banks, Kenya.


 INTRODUCTION

Corporations over time have advanced their investments in the health and well-being of their employees (Ton, 2014). Medical Billing and Coding (2012) in the survey in USA, found that only 10% of companies do not utilize wellness programs including basic tests of blood and screening for cancer, blood pressure and diabetes. The companies also do not have employee programs for exercise, nutrition and diet  nor  employee  health  history surveys and also do not have trainings on health improvement and protection. The availability of the wellness programs in 90% of the companies can be attributed to the ever increasing obesity and diabetes rates among the staff which have had an adverse effect on employee performance, employer-sponsored health insurance and absenteeism (Baicker et al., 2010).
 
Counselling at the workplace for employees involves a discussion of an issue by employee intended to help such employees manage with the situation in a better way (Ajila and Adetayo, 2013). Gerstmanm (2014) opines that the objective of employee counselling is to assist both the employments parties tackle problems at hand through an active problem-solving approach. Furthermore, Gerstmanm (2014) states that the specific objectives of employee counselling include exploring and finding the key sources of difficulty and reviewing the current strategies of the individual employee. It also includes styles of managing such difficulties as well as instituting strategies of addressing the issue at hand, consequently alleviating the issue and evaluate the effectiveness of chosen strategies. Increasingly, the application of counselling in the workplace has been widened to include performance management and designing the most appropriate intervention for such declines. This is beyond the traditional use of counselling in addressing alcohol dependency and marital breakdown.
 
Pickerell (2011) found out that the employees can be helped by counselors to maintain work that uses their skills, talents, and attributes in order to support career engagement and advancement. Roy (2011) argues counselling is offered to people with a problem and requires professional guidance to enable them overcome such problems. Roy (2011) argues that such problems could keep the individual disturbed and under tension and unless resolved, the performance of such a person will continually be inhibited. Historically, counselling was associated with serious personal problems such as alcohol dependency and marital breakdown according to Tony (2005). There are 40 commercial banks; dropping from 42 as Giro Commercial Bank was acquired by I&M Holdings in 2016 and Diamond Trust Bank is currently under the process of purchasing Habib Bank, while Chase Bank and Imperial Bank are under receivership (CBK, 2017). Thirty of them are domestically owned while 13 are foreign which accounts for 35% of all banking assets. In Kenya the commercial banks dominate the financial sector and any failure in the sector has a negative effect on the country’s economic growth
 
Statement of the problem
 
The trend in the commercial banks sector globally, has witnessed rapid and dynamic changes over the last decade. Competition for market share has been tight, forcing banks to not only enhance their effectiveness and competitiveness, but also pushing their performance high implying tighter schedules on the employees, more work and duties, higher performance targets both in quality and quantity (Jha and Hui, 2012). Goetzel and Ozminkowski (2008) and Anderson et al. (2009) found out that workplace wellness programs enhances employee health, output, reduces absenteeism and enhances higher job satisfaction and is cost-effective for employers in the long-run yet many organizations are reluctant to provide these programs to its workforce in the pretext that they are expensive and the returns of such an investment does not match cost of implementing them. The focus of the current study was on how the wellness programs provided by commercial banks, influences work performance of employees which these earlier studies did not address
 
Research objective
 
The study sought to determine the effect of employee counselling programs on employee performance in commercial banks in Kenya
 
Justification and significance of the study
 
The study was undertaken at the headquarters of commercial banks within Nairobi City County. The choice of these headquarters was necessitated by the fact that most of the wellness programs are provided at the headquarters where a higher number of staff work from. Employees at the headquarters require putting in more work and energy characterized by high level commitments, deadlines and unpredictable peaks and troughs within the working time. Major banks have their busiest branches in the Nairobi Central Business District (CBD) requiring the employees to work longer hours, given that their work and assignments are more complex and intensified thus experiencing a lot of work pressure and creating a culture of poor work life balance. With these conditions make the job hectic, strenuous and creates enormous stress as a result of work life conflict and hindering the commitment of employees to the firm which may ultimately affects the performance. With these working conditions, the study then targeted these commercial banks within the CBD since they would provide more relevant feedback which justifies the scope of the study than if the study was conducted in other branches outside the CBD.
 
The study is of value to the practice of employee wellness in that the management of the commercial banks would be able to understand the significance of such programs both to the individual employee and the organization in general. From the research findings, it will be important for organizations to understand whether the provision of the wellness programs is a worthwhile venture of not, comparing the costs associated with the provision vis-à-vis the benefits derived. The study also provides an indication of the value of the wellness programs to the employees in that, the study would indicate the benefits they attach and gain from such programs to their health and performance levels. The management would then be guided by the study findings in developing and implementing suitable policies which would enhance the utilization of the wellness programs within the bank.
 
The study is also beneficial to future researchers as it forms a foundation and a basis upon which other researches along this field would be developed. It adds to the body of knowledge. Human resources policies and regulations regarding wellness programs would also gain from this study given that the study found out that the wellness programs provided by employers to its employees enhances and facilitates higher productivity and ultimate performance. Thus the study enables the academic world gain insight on the various aspects of wellness programs and how they can be utilized to enhance employee performance.
 
Social comparison theory
 
The study was guided by Social Comparison Theory which posits that people are pushed to focus on how their perceptions compare to status of others (Festinger, 1954). They also focus on how their viewpoint will be utilized to minimize and manage uncertainties and approve of their behaviour and character. The theory is founded on cognitive and social, and is linked to conformity, self-affirmation and self-validation (Horcajo et al., 2010). Within this ideology, is the idea of “strength in numbers” (Park and Hinsz, 2006), suggesting that if many employees are involved in the same behaviour to achieve similar objectives, then such behavior is adopted and reinforced through group membership (Park and Hinsz, 2006). The theory was relevant to this study in that when employees notice that some of their colleagues are utilising the recreational facilities, the counselling services or even the drug and substance abuse cessation programs and that they are seeing changes courtesy of such programs, they would not hesitate to also engage and achieve the same results. When employees notice that their colleagues are able to perform well, produce higher output, rarely absent, they would desire to also partake of these facilities and programs so as to also become more effective in their performance.
 
Empirical literature review
 
Hughes and Kinder (2007) in their study on counselling for effective work performance as a way for service improvement in Calabar, found out that counselling support can have a significant positive impact on employees’ job performance. The study sought to find out whether workplace counselling actually produced the intended results and concluded that for enhanced productivity, work place counselling is necessary for employees. The study did not consider other wellness programs that the organizations could provide to their employees which the current study sought to address. Chan (2011) conducted a study on the effectiveness of workplace counselling in improving employee well-being (workplace stress, burnout and depression) and performance in the United Kingdom. The findings showed that workplace counselling improves employee well-being; while the intervention helps employees in alleviating symptoms of workplace stress, burnout and depression. However, workplace counselling services seems to have neutral effect on employee performance. The study concluded that workplace counselling should be used as a tool to restore and improve employees and organizational performance. This study focused much on the counselling only without looking at the other elements of employee wellness yet the current study seeks to address not only employee counselling but also recreational facilities and drug and substance cessation programs in enhancing employee performance.
 
In a study on the significance of workplace counselling in increasing job performance, Izzat (2014) found out a significant effect of workplace counselling on employee job performance. Izzat (2014) conducted the study in over 70 public sector organizations in Malaysia while the current study seeks to study commercial banks in Kenya rather than public sector organizations.
 
According to the study by David, John and Richard (2012) in USA on effects of workplace counselling, counselling in the workplace positively impacted output measured using the scales of the Workplace Outcome Suite. The study focused on employee counselling and Employee Assistance Programs (EAPs) sampling respondents from manufacturing firms. The study did not concern itself to the effects of the counselling on performance nor did it focus on other forms of wellness programs within the organizations. This therefore provided gaps both in content and context, which the current study endeavored to fill.
Summary of gaps
 
The summary of gaps is shown in Table 1.
 
Conceptual framework
 
The framework is represented in Figure 1. The counseling programs considered in this study ranged from the counselling provided to the employees regarding their social life both at home and at work, the management of anxiety, depression as well as the management of conflicts within their work environment. The commercial banks provided educational fairs and awareness programs in order to provide counselling to their employees and also provided the Voluntary Counselling and Testing (VCT) programs and chronic disease management, financial counselling and counselling of accident and trauma victims. On drug and substance abuse cessation programs, the study sought to establish the effects of smoking cessation programs, the health and education  fairs,  alcohol and drug abuse cessation as well as the drug and substance  rehabilitation   programs     and    the reintegration of drug addicts to work and family after rehabilitation and to  manage  any  form of relapsing that might occur. This ensured that the rehabilitation program was complete and effective.
 


 METHODOLOGY

The study employed descriptive research design as it sought to get a description of the situation as it were at the commercial banks. The design is appropriate where a description of “what exists” is necessary. Positivist philosophy was used because it is suitable in conducting the cause - effect analysis and allows for hypothesis testing. Neuman (2014) and Furrer et al. (2008) argue that the philosophy is based on the fact that knowledge is factual and no abstractions of individuals are valued. Through this philosophy, the study became independent of the researcher, objectivity enhanced and biases minimized. It also helped in minimizing human interests in the study by limiting the interactions between the researcher and the respondents.
 
The study used descriptive research design given that some form of wellness programs add research after this exists and helped in providing a description of whether such programs have any effect on performance or not. The design also enabled the study to capture the features of the population and at the same time test the hypothesis (Cooper and Schindler, 2014).
Empirical Model
 
Y = β01X1 + ℇ
 
Where
β0 – Constant
β1 – Coefficient
Y – Employee performance of Commercial Banks
X1 – Employee Counselling Services
ℇ - Error Term
 
Operationalization of variables
 
The study targeted all employees of all commercial banks in Kenya based at their head offices in Nairobi. The unit of analysis was the individual employees of the commercial banks in Kenya. According to the Central Bank of Kenya (2017), there are a total of 30,903 employees in all the 40 commercial banks in Kenya (Table 2). The study employed the Yamane (1967) model as follows:
 
 
n = 394.89 giving an approximate sample size of 395 The sampling was done in all the 42 commercial banks proportionate to their population with the questionnaires being distributed to the banks using the wellness office (r). The wellness office (r) was then to identify 10 employees who utilize the available programs and facilities and those who help run/manage these programs. The questionnaires were collected after 2 weeks. The researcher tested the reliability of the instrument and achieved a 0.889 value which confirmed that the questionnaire was indeed reliable.
 


 RESULTS

The study had targeted all the employees of the commercial banks in Kenya but sampled 395 out of which 279 returned the questionnaire duly filled. This represented 71% response rate which was considered sufficient to enable analysis since Kothari (2004) and Mugenda and Mugenda (2003) argue that a response rate of at least 65% is successful and sufficient to allow for analysis and reporting of the study findings.
 
Majority of the respondents (57%) were male while the remaining 43% responded as being female. In terms of age distribution, 36.2% were aged between 26 and 35 years, 29.4% were aged between 46 and 55 years, 16.1%, were aged between 18 and 25 years, 15.8% were aged between 36 and 45 years; while the remaining 2.5% were above 55 years. In terms of their marital status, 64.2% were married, 30.5% were single and the remaining 5.4% were either divorced or widowed. Regarding the academic qualification of the respondents, 62.7% had a bachelor degree, 31.2% had a Master degree while 5.7% had a Diploma certificate. In terms of experience within the commercial bank, 47% of the respondents had worked for 11- 15 years, 26.9% for less than 5 years, 22.2% had between 6 and 10 years’ experience while 3.2% had worked for between 16 and 20 years. The study sought to know from the respondents the extent to which they agreed or otherwise that counselling on social life matters (family and work related issues) influenced their overall performance in the banks. The majority of the respondents (181 or 64.9%) strongly agreed on this while another 32.2% (90 respondents) agreed that the counselling indeed influenced their overall performance at work. Only 8 respondents differed with this indicating that they disagreed (3), did not know (4) and strongly disagreed (1). On whether they agreed or disagreed that the management of conflicts within workplace influenced the overall performance of an employee, more than half of the respondents (52.7%) strongly agreed while another 46.3% of them agreed, that it did influence employee performance. Only 1.1% (3) of the respondents indicated that they did not know whether it did influence or not. The results gave a mean of 1.41 (strongly agree) and a standard deviation of 0.649, an indication that the respondents were more uniform and strongly agreed that conflict management within the workplace had an effect on the overall performance of the employee.
 
Majority of respondents (162) agreed that the management of VCT and chronic diseases influenced the performance of the employee while another 58 respondents strongly agreed. However, 53 respondents, representing 19%  indicated   that they did not  know whether it influenced the performance of the employees or not. However, on average, the respondents agreed (2.03) that VCT and the management of chronic diseases affected the overall performance of employees with a standard deviation of 0.696, showing that the responses were not varied as such. One hundred and forty respondents strongly agreed that the counselling on accident and trauma for victims influenced the performance of the employees while another 100 (35.8%) agreed. Only 3 respondents disagreed, while 1 strongly disagreed. However, 12.5% of them (35) indicated that they did not know whether the counselling on trauma and accident influenced performance. One hundred eighty two respondents representing 65.2% also agreed to a great extent that counselling accident and trauma victims helped them regain their performance levels and even more, while 28% agreed to some extent. Only 2.9% agreed to a little extent while 3.6% indicated that they did not know if they actually helped them regain their output levels.
 
When the respondents were asked whether the counselling on social life relating to family and work enhanced their individual performance in the bank, the majority of the respondents (52.7%) indicated that it did but to some extent while another 42.7% of them indicated that it did enhance their output to a great extent. Only 2.9% indicated that they did not know whether it enhanced employee performance, 1.4% agreed that it did enhance but to a little extent while only 1 respondent (0.4%) thought that the counselling did not have an effect on their individual performance within the bank. The mean response was 1.64 (agree) and a deviation of 0.646 which implied that the respondents also agreed that the counseling on social matters influenced their individual performance.
 
On the effect of counselling on anxiety and depression helping the individual employee to manage and improve their output, 49.5% of the respondents agreed that it did influence to a great extent while 24.7% of them agreed that it did influence but to some extent. Another 24.7% of the respondents indicated that they did not know if the counselling on anxiety and depression helped the individual employee to management and improve their output. Only 0.7% of the respondents indicated that the effect was to a little extent while only 1 respondent (0.4%) indicated that the counselling did not have any effect on their output. On whether the training and counselling on management of conflicts enhances their individual level of output, majority of the respondents (49.1%) indicated that the effect was there and to a great extent while 33.7% indicated that the effect was to some extent. Only 14.3% indicated that the effect was there though to a little extent and only 2.9% of the respondents indicated that they did not know whether the training and counselling enhanced their level of output.
 
When the respondents were asked whether the education and awareness counselling programs helps the individual employee to produce more, 57.3% of the respondents concurred to a great extent while 39.1% of the respondents agreed to some extent. Only 2 respondents agreed that it does but to a little extent and the remaining 2.9% indicated that they did not know whether the counselling helped improve productivity or not. On whether the counseling on VCT and Chronic Disease Management helped the employees perform better, the majority of them (47.7%) agreed that it did to some extent while another 41.6% of the respondents agreed to a great extent. Only 6.1% indicated that they did not know, while 4.3% agreed that it did but to a little extent. With an average response of 1.72 (great extent) and a mean of 0.785, the respondents agreed that the VCT and Chronic Disease Management helped them perform better in their commercial banks.
 
On financial counselling and its effects in enhancing output levels for the employees, 76% of them indicated that financial counselling enhanced their output levels to a great extent while another 20.8% agreed that the counselling enhanced the output levels to some extent. The respondents on average agreed to a great extent (1.29) that the financial counselling helped them and enhanced their output levels. The standard deviation was 0.592, an indication that the responses were minimally varied. On the regression analysis, the results are shown in Table 3. The results provides the model that Employee Performance = 1.435 + 0.618 (Employee Counselling) implying that the performance of the individual employee is influenced by employee counselling at a change rate of 0.618 (61.8%) for every unit of change in employee counselling.
 


 DISCUSSION

Gerstmanm (2014) opines that the objective of employee counselling is to assist both parties in employment tackle problems at hand through an active problem-solving approach a finding which concurs with the results from the current study showing that counselling is critical for the employees that are interested in enhancing their individual performance within their banks. With a mean of 1.41 (strongly agree) and a standard deviation of 0.649, the study concludes that the conflict management within the workplace had an effect on the overall performance of the employee. This agreed with the findings of Hughes and Kinder (2007) who found out that counselling had a positive and significant effect on the employee performance.
 
The respondents agreed (2.03), on average, that VCT and the management of chronic diseases affected the overall employee performance, with a standard deviation of 0.696. These findings concurs with the findings of Hughes and Kinder (2007) that the workplace counselling helped organizations produce the intended results through productivity enhancement and was a necessity for the employees which agrees with the findings of this study that counselling on VCT and Chronic Diseases Management influences the overall performance of the employee.
 
On the effect of counselling  on  trauma  and  accidents for victims, the findings on average agreed (1.66) and a standard deviation of 0.792, showed that the counselling influence employee performance at the commercial banks. These findings concur with the findings of Chan (2011) who found out that employee counselling in the workplace improves employee well-being; while the intervention helps employees in alleviating symptoms of workplace stress, burnout and depression. The findings on the influence of counselling on social matters on employee performance, the respondents on average agreed (1.64) and a deviation of 0.646 implying that the respondents were more uniform in their response. This result concurs with the works of Izzat (2014) who found that there exists a significant effect of employee counselling within the workplace on their work output, productivity and ultimate performance which is in concurrence with the findings of this study.
 
The respondents in their responses averagely agreed to some extent (1.78) that counselling on anxiety and depression assisted employees in the management and improvement of their output. The standard deviation of 0.870 indicates that the respondents were uniform in their feedback. These findings agrees with the findings of Chan (2011) who found out that workplace counselling improves the well-being of the employee in terms of workplace stress, burnout and depression as well as enhancing the overall employee performance. On average, the respondents agreed that the training and counselling on management of conflicts enhanced their individual level of output to some extent with a mean of 1.82 and a standard deviation of 1.033. In a study by Chan (2011) in the United Kingdom, findings indicated that counselling enhances the employee’s ability to manage workplace stress, burnout and depression which ultimately enhances the employee output. These findings therefore agree with the findings of Chan (2011).
 
The results on whether education and awareness counselling programs helped the employees to produce more agrees with the findings of David et al. (2012) who found that the training and counselling of employees on conflict management played a critical role in enhancing performance which agrees with the findings of the current study. It also agrees with the works of Pickerell (2011) who found argued that counselors help employees find and maintain work that utilizes their skills, talents, and attributes in order to support their career engagement and advancement. The responses on whether counselling on VCT and chronic diseases management enhanced employee performance, agrees with the findings of Roy (2011) who found out that counselling services are usually offered to provide assistances to employees and enable them overcome challenges which could keep individual employees disturbed and drop in performance unless resolved.
 
These findings of whether financial counselling influenced performance of employees concurs with the findings by Ajila and Adetayo (2013) who found out employee counselling enable them resolve problems and issues and enable them manage such challenges including financial matters in a better way. The findings also concurs with the works of Marcolin and Abraham (2006) who opined that financial wellness programs enhances job satisfaction, low employee turnover and enhanced productivity and at the same time arguing that challenges on finances can increase stress levels and anxiety that are often carried with them to the workplace.


 CONCLUSION

The study findings provide a conclusion that employee counselling on various matters and perspectives is a welcome activity among them. From the findings, it can be concluded that employee counselling affect their performance and that conflict management within workplace influences the overall employee performance at the commercial banks. They also agreed that the management of VCT and chronic diseases influenced the performance of the employee and can be concluded that indeed the employers needed to help in the management of the chronic diseases so as to influence positively the performance of their employees. With majority of the respondents strongly agreeing that counselling on accident and trauma for victims influenced the performance of the employees, the study can conclude that the counselling on trauma is fundamental and employers should implement such counselling so as to enhance performance.
 
The commercial banks also need to implement counselling on social life relating to family and work enhanced the output of the employees given that 95.4% agreed that indeed it did affect performance and enhance their output to a great extent. About counselling on anxiety and depression helping the individual employee to manage and improve their output, 74.2% agreed that performance was influenced by the counselling as it was key in helping the management of such anxieties and depressive tendencies within the workplace. The employees also agreed that counselling on management of conflicts enhanced individual level of output.
 
More than half of the employees also agreed that education and awareness counselling programs helps the individual employee to produce more while many other employees also agreed that counselling on VCT and Chronic Disease Management helped the employees perform better. On financial counselling, majority of the respondents (76%) agreed that financial counselling enhanced their output levels to a great extent implying that the counselling needs to be enhanced so as to achieve more output as was the issue on counselling accident and trauma victims helped them regain their performance levels and even more.


 RECOMMENDATIONS

The study recommends that the employee counselling on various elements need to be enhanced so as to guarantee employee stability and performance including counselling on management of conflicts within the workplace, management of chronic diseases including provision of VCT services need to be used to support employee wellness. Counselling on accident and trauma for staff also need to be facilitated more, counselling on social life and family matters also should be increased so as to enable the employer achieve employee stability and engagement since if not handled, it drains the employee’s energy and concentration. Counselling on anxiety and depression is also fundamental for employers since it helps the employee concentrate within the workplace and enhance performance once the anxiety or any form of depression is dealt with. The study also found out that some employees are not aware of the wellness programs, specifically the counselling services; implying that the commercial banks should be able to enhance education and awareness about counselling services available.


 SUGGESTION FOR FURTHER RESEARCH

The results showed that the 61.8% of the variations in employee performance can be explained by the changes in employee counselling programs which leave 38.2% of the variations that cannot be explained by employee counselling. Therefore, future studies should seek to find out the other parameters of wellness programs that influence employee performance other than employee counselling programs.


 CONFLICT OF INTERESTS

The authors have not declared any conflict of interests.



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