The Effect of Motivation on Employee Performance (a case study of Bank PHB Plc)
Banking industry in Nigeria started in 1892 by the expatriates and later in 1945 it was handed down to the Nigerians and African bank owners. Ever since, bank failures have been observed in this sector, where there have been no enough liquid assets to meet the clients’ demands. In the same token, banking sector has been not efficient and effective financial system along with any enough financial mechanisms for further investments. Over all, banking sector has been no organized real assets in order to operate effectively the banking industry. As a result, the Central Bank of Nigeria (CBN) had revoked the licenses of Bank PHB among other banks for not showing serious commitments to meeting the recapitalization deadline set some months ago. The Nigerian Stock Exchange believes that Nigerian banking sector has to cooperate with the ongoing long-term development and stabilization policies being put in place by the Security Exchange Commission (SEC) in order to bring the Nigerian capital market to world class standard. In view thereof, the new NSE boss thereby putting his effort to promote business discipline, integrity reform, innovation and motivation in the banking sector in Nigeria. This banking condition now in Nigeria is a result from the failure and weak employee management system; as well as the poor capital base of the Nigeria banking sector. The questionable financial stability and economic development in Nigeria has been an endless issue until now in the banking sector. The Central Bank of Nigeria (CBN) recently made a reform to be able to consolidate the banking sector by increasing N25 billion minimum capital bases that resulted too many closure of many banks in the country; as well as changed their manner of operation and contribution to the Nigeria’s economy. The effect of the consolidation on numerous banks and Nigeria economy led to the modification of structure of the banking sector; as ell as it was able to increase the efficiency and reliability of the banks and provide great opportunities for numerous financial institutions. This type of financial reform is one of the ways to improve or enhance the financial stability and sustainable development among banks. In the same manner, it promotes efficiency in the banking industry; so as it helps to motivate bank employees to do better on their jobs.
(http://arinzehope.hubpages.com/hub/impact-of-bank-consolidation)
Furthermore, the re-orientation and re-positioning of banking industry in Nigeria helps the country and majority of the employees in the banking sector to attain effective and efficient performance and productivity. The significant improvement made also gave positive impact to the functioning of the financial institutions and for the growth and achievement of main objectives in order to enhance and sustain economic and social importance of the bank employees, clients, government institutions and even private enterprises. Therefore, banking reforms really helps along with the global dynamic constraint and international business emergence. Consequently, the financial landscape for Bank PHB PLC is really in need for reorganization to be able to improve the employee competitiveness as well as the bank competitiveness in the banking industry. By doing this, the bank will have the chance to play an essential role in the economic development and in financial investments of many business enterprises in the country. In addition to that, bank consolidation was seen as one of the ways to reform the banking sector. Bank consolidation is said to be the process of increasing the sizes of bank that could cause potential increase in bank returns through revenue and cost efficiency gains. Correspondingly, the current bank consolidation is a boost to many enterprises to follow the success achieved by the Central Bank of Nigeria through the revamp of the manufacturing sector. In the past, banking facilities were only in the range of 25 to 30 percent interest rate. But nowadays, it is totally different with an increase of 15 percent. The CBN is more confident now that the banking sector these days is heading forward to a better direction. The consolidation of banks opened many doors to financial assistance to many businesses. At the same time, revenues will tremendously increase due to repay of loans. Also, businesses today have the chance to advertise their business in the media and even have an opportunity to hire more employees. In the final note, the Nigerian government aims to participate the Nigerians in the oil industry. And, consolidation will help Nigerian economy to help many banks to take part in the oil and gas sector. This will make banking industry stronger and promote stability and effectiveness in doing business.
(http://www.cowryasset.com/uploads/reports/NIGERIAN%20BANKING%20REPORT.pdf)
References:
http://arinzehope.hubpages.com/hub/impact-of-bank-consolidation
http://www.cowryasset.com/uploads/reports/NIGERIAN%20BANKING%20REPORT.pdf
Credit:ivythesis.typepad.com
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