STAFF DEVELOPMENT PROGRAMME AND EMPLOYEE PERFORMANCE IN BANKING INDUSTRY. (A CASE STUDY OF FIRST BANK PLC, INISHA BRANCH)

CHAPTER ONE

1.0       INTRODUCTION

The competitive paradigm facing the retail banking industry has shifted. the proliferation of retail branches, coupled with changes which have allowed banks to expand their product lines, has resulted in a dynamic environment in which bank are seeking to differentiate them in order to create a source of sustained competitive advantage. Technological developments and organizational redesign have also changed the types of work being performed by bank employees. A noted by Bartel (2004) bank tellers have traditionally several more of a clerical role by simply processing customers transactions. in today’s competitive landscape, the job of a bank teller has been enlarged. Beyond the normal expectation of providing excellent customer service, tellers are also evaluated on their ability tell various financial products or make referrals to the proper sales personnel. due to these industries dynamic, banks can no longer rely on traditional sources of competitive advantages such as technology or superior efficiency based upon economic of scale to be successful these changes have forest many retail banking operations. 

According to the resources-based theory of the firm, organizations can develop sustained competitive advantage only be developing value creating resources and capabilities which are rare and difficult for competitors to imitate. (Barney 1995).

Although traditional sources of competitor advantages such as technological supremacy, patent protections, and economics of scale and scope ands favorable government regulations create value, the resources-based view would argue that these sources are increasingly easy to replicate. Therefore, these traditional from of competitive advantage can no longer leverage for long-term success. Instead firms must now consider developing other forms of intangible and more difficult to imitate strategic resources in order to sustain their advantages over time.

Many have argued that the implementation of a progressive set of a progressive set of human resources management policies and practices collectively known as a high performance work system can lead to the development of a sustained competitive advantage. consistent with a resource-based view a conceptual argument can be made that the development of human capital within organization creates value and is an “invisible assert” which might be especially difficult for competitors to replicate for example Becker and Gerhart (1996) have argued that human resource (HR) systems consist of policies and practices. Which have been implemented over time and cannot simply be purchased by industry competitors.

Beyond the conceptual argument a large amount of empirical evidence would also suggest a strong linkage between high-performance work systems and firm performance. probably one of the most visible works connecting human resources management and bottom line results was huselid’s (1995) research related to the positive impact of high performance work practices (HPWPS)” on organizational performance. Specifically, house lid (1995) found that the standard deviation increase in the proportion of employees involved in high performance work practices (e.g comprehensive recruitment and selection procedures, job design, training and participation programs) reduced turnover by 7 percent and increased sales per employee by more than $27000 per year.

In addition, the study revealed that the impact of a one standard deviation increase in the use of high performance work practices enhanced profitability by more than $4,000 per employee and increased the firm markets value by more than $18,000 per employee.

there is also research to suggest a strong linkage between height performance work systems and firm performance on the banking industry for example Delary and Dety (1996) sampled 1050 banks in order to examine the relationship between hp practices and two key measures of financial performance including return on average assets (ROA) and return on equity (roe). Controlling for the size, age and fort the Federal Reserve district in which the bank was located, the authors found or significant relationship between a system of hr practices and financial performance. in particular the results of the study indicated the hr practices were able to explain an additional 12.55 percent variance.

Several experts (Thomas 1878) Gronroos. 1990: Kotter of serve marketing as the have consecutively proposed a conceptual frame work of service marketing known as the “service triangle” to incorporate the concepts of internal marketing, external marketing and interaction marketing into more intensive concepts in developing these marketing strategies, attention shall be given to the conventional marketing strategies with the aim of providing sources that are vnigue and acceptable to the external customer to will their loyalty.

Attention shall also be given to the value of employees with the goal of determine them to be a contributory to the over all” organizational capital” of the business.

Kotler (2(xx) explains that internal marketing is more important than conventional external marketing.

1.1       BACKGROUND OF THE STUDY

The People’s Republic of China (PRC) is currently seen as a new growth engine and an indispensable participant in global economy (Qu & Leng, 2006).

since the adoption of the door – open policy and market reforms in 1978, the PRC has witnessed a rapid economics development with GDP growth averaging around 10 percent per year (Liu, Liu, Jing & Huang 2005) concurrently, the financial growth developing from one financial institute, the people’s bank of china to the separation of the central and commercial banks consequently, the banking industry has evolved into a competitive market. however, the banking sector still holds a majority stake in the PRC’S financial industry with asserts accounting for 85 per cent of the whole industry in 2001 (Lieut al 2005).

In recent years following china’s assession to the WTO, foreign banks have explored opportunities in the financial markets of main land china, which has resulted in intensified overseas competitions.

As the success of the banking industry relies on highly motivated and committed personnel, the new competitive environment has brought structural changes (tie, 2001) changes have been enacted through deregulation, technological development and globalization where by the competitor emphasis has changed from being largely market  based to a more resource based model (Pere z & falcon 2004). As a result employee’s performance and the way they are appraised, requires greater attention. Thus the current study seeks to explore the process of performance appraisal in Chinese state owned banks.

1.2       PURPOSE OF THE STUDY

This study is aimed at analyzing the effect of staff development program and rate of labour turnover making reference to first bank of Nigeria plc certain effort that are also made by the bank through induction training, symposium workshop, seminal etc. ensure that employee are trained and developed towards their field of specialization and the effect of those programmes on their rate of turnover will be articulacy analyzed.                                                                                          

1.3       SIGNIFICANCE OF THE STUDY

Staff development programme in the banking industry is very significant in the existence and continuity of the organization. There are lots of benefits accrued from training the staff (both junior and senior) of an origination on the job. These are as follows: -

• • It brightens promotion prospect of employees.

• • It stimulates and boost the morale of employees members of staff e.g self confident on their areas of specialization.

• • It reduce staff turnover on the job training help an employee to acquire more knowledge with their employees.

• • It ensures uniformity of operation on the same types of job with in the origination.

• • It makes employee to be more effective and efficient on the job and towards achieving organizational objectives.

1.4       SCOPE OF THE STUDY

The scope of this study is limited to first bank of Nigeria plc, with particular reference to the banks staff training center at the head office. hence your thoughtful appraisal on “staff development programme and employees job performance in banking industry as per case study strategies used in the first bank Nigeria plc.

1.5       LIMITATION OF THE STUDY

this study was carried out to review the strategies being in used in first bank of Nigeria plc head office training centre, Lagos and Ibadan.        

1.6       DELIMITATION OF THE STUDY

The researcher(s) encountered some constraints while carrying out this thesis which were discussed as follows:

Financial Constraints: - Due to financial constraints some staff first bank of Nigeria plc could not be reached while some were always in the filed.

Time Factor / Limited Time for the Researcher: - Did not permit the researchers to cover a large scope in such a way that other micro financial bank in the state could not be visited for additional information.

Inadequate Data / Information: - These are some problem on the part of the people invested. These were communication gap as some people would not understand the language we are using.

Uncooperative attitudes of the Personnel Officers of the Bank (FBN Plc): - who through the questionnaire were directed towards exposing their.

Uncooperative Attitudes of the Respondents Regard the Returning of the Questionnaires: - Research faced many other problems that served as.

1.7       RESEARCH HYPOTHESIS

The following hypothesis will be tested for in this research work.

Ho: There is significant relationship between staff training and employee performance.

Hi:  there is significant relationship between staff training and employer performance.

Ho: Staff training has no positive impact on worker’s morale at work..

Hi: staff training has positive impact on the worker’s morale at work.

1.8       DEFINITION OF TERMS

In the section, the need to define some concept used in the study for clarity and avoid once of ambiguity could not be over emphasized.     

Introduction: - This is the process of rending new employee conducing him around the organization and giving him basic information needed to settle him down quickly and become integrated into the system.

Staff Development: - Is the development to a broad range of ability based on appropriate knowledge attitude and skill to enable individual scope with a large variety of types.      

Employment Job Performance: - In the settling of performance standard expected.

Hypothesis: - This is an assumption and in there to draw out test and a logical and emphatically statement.