1.0 Introduction
1.1 Background Of The Study
In Nigeria, Financial Institution are those institutions that make available to customers short term, long term and other credit instruments for investments and other purposes.
They also accept deposit, valuables and perform other functions. An excellent example is the Banking Industry.
The Nigerian Banking Industry started in 1892 when the Africa Banking corporation was Incorporated. This was followed by the establishment of Barclays Bank of Nigeria Plc.
The Union bank of Nigeria Plc is among the First generation Banks in Nigeria. It was incorporated In Nigeria Companies and Allied Matter’s Decree of 1990 as other many public liabilities Companies. The Union Bank of Nigeria Plc is the first of the First generation Banks to be wholly own by the Nigerian public. At present, there are about 300 branches all over Country with the headquarters at Broad Street Marina Lagos.
The role of Union Bank in economic development of the Nation cannot be over emphasized. These services rendered by Union bank manager from Ordinary Mobilization of saving to the more sophisticates and not too common business advisory services, Bank generally are regarded as provides of loans which indirectly entails the creation of money and extention of credit facilities. An organisation that that trades principally in money requires honesty as a watch − ward.
Union Bank is tailored towards customers satisfaction in the rendition of new services.
An organisation such as Union Bank Plc that thrives on trust and honesty of this staff for discharge of new services must seek an effective and impactial way of rewarding its employees. Also the efficiency of the service rendered by the Bank depends on the management approach adopted by the Bank.
One management concept that encourages efficiency is management by Objectives. Drwcker (1974), Looked at (MBO) as a system whereby the objectives for the company as a whole are decided upon by the management and subordinates to archive the organisational goal. When this is applied in targets setting the managers and subordinates alike receive regular feed back through performance review and are closely involved in the settings their own targets.
The top management approach has been in existence for a greater in part of the distance of the bank.
The subordinates are only given a line of action for following the course of attaining the set targets with increasing awareness f the part of the employees through in services training, furtherance to their education, exposure to what is obtained in other banks and the deregulation of he economy, with de-emphasis in profit making, the bank has started making in roads in modern management practices such as management By Objectives (MBO).
This research work is to investigate the extent to which all cadre of employees are involved in target setting and evaluate its application in light of the forgone. The Organisational structure of Union Bank Plc is divided into three distinct segments for effective discharge of her services to customers.
a. The Head Office:
The Corporate Head Office is situated at Marina Street, Lagos.
b. The Area Offices:
The area Offices are located in the Northern region, Eastern region and Western region o the Country.
c. The Branches:
The branch offices are scattered all over the Country
This research work is picking at the many branches of the Bank.
This is the Okpara Avenue Branch Enugu.
1.2 Statement Of Problem
An organisation such as Union Bank Okpara Avenue Branch with numerous employees needs an effective and practical management approach to allow for integration f various personal objectives of the employees and that of the organisational objectives in order to achieve the organizational goals.
This study will focus on the following problems.
- Presently in Union Bank Okpara Avenue Branch formulation of polices is exclusively reserved for the top management. As a result subordinates and employees do not understand and finds it difficult to adhere to these policies.
- The difference and conflicts encountered in policies, execution by subordinates and employees because of non-participation in policies formulation demoralized the middle and bottom levels of management consequently initiatives are relegated to the background.
- With the application of (MBO), can the employees at all levels in the bank see each other’s view as aiming towards the achievement of he overall organisational objectives and generally efficiency of the Bank.
- Finally, how can (MB)) cushion the effects f the existing problems in the management approach with the general efficiency of the branch as well as self actualization of both the employees and the branch in mind.
1.3 Research Questions
This study will be designed to find answers to the following research questions.
- In the setting f the Union Bank Plc Okpara avenue Branch goals both short and long un are the employees involves and to what extent ?
- Are the employees aware of /or have pre-knowledge about goals of the branch.
- Are supervisors always after faults no complimenting any good job alone, provided staff annual benefits are granted, do he staff feel satisfied ?
- How effective is the application of (MBO) in the Union Bank Okpara Avenue Branch?
1.4 Scope Of Study
The scope of this study will attempt to evaluate he effective application of MBO in Union Bank Okpara Avenue, Enugu, within the lost decade there has been an interesting development in the field of management. Drwckers, (1974) has stressed that management is the consequences; Management By objectives has gained much momentum only in recent year’s, it cannot be said that it is quite a new phenomenon on management development. It is only in recent times that its importance and relevance has come to be highly appreciated.
Thus study will therefore attempt to establish the linkage between the subordinate and management in contributing to the organisational objective and to what extent MBO affects the overall efficiency of the Union Bank Plc.
The scope covered by this study will be limited to Union Bank of Nigerian Plc, Okpara avenue branch, this study will serve as representative of almost all the branches of Union Bank of Nigeria Plc.
1.5 Purpose Of Study
The proliferation of commercial Banks in the Country has placed employers of the generation bank in high demand. Also the deregulation of the economy in recent times is affecting the fortunes of Banks Cowpled with employees in recent desires to development their talents to the higher degree, that is self actualization.
Moreover, the dominant management approach, top bottom concept in practice is not motivation the moral o the employees good enough to achieve the desired results. Similarly, the MBO concept which the Bank is blending with the old practice is to be evaluated and examined how its application is contributory tot he performance of he Bank given the aforementioned constraints.
Umoh (1994) postulates, that management is the process of getting this done by using some other people to achieve a set objective. One management concept that is widely applied for this purpose is MBO and policy markers are making a more conscious effort to popularize this concept.
It is therefore the objective of this study to :-
- Study the role of management by objective in Union Bank Plc Okpara Avenue Branch, Enugu.
- Examine the extent, the MBO is applied in the activities of the Union Bank Okpara Avenue, Enugu.
- Find out the relationship between the application of MBO and level o efficiency in the bank.
- Taking cognizance of related problems facing the effective application of MBO.
- Educating the existing personnel on the applicability of MBO.
1.6 Research Hypothesis
The following hypothesis will be tested in the course of the study.
- H1 The management staff and the subordinates are often not aware of the organisation target.
- H2 Involving Subordinates in setting organization goal has no relationship with employee’s productivity level.
- H3 Encouragement and recognition has no positive effect on moral and Job satisfaction as would a pay rise.
- H4 The organization’s goals attainment and direct is dependent on the application of MBO.
1.7 Significance Of Study
This study is primarily interested in explaining how an effective application of management by objective will enhance employee moral and increase productive as well as general efficiency of the Bank in question.
Umoh (1994) paints a true picture of the wide range of benefits to be gained in the application of MBO.
Attention will be focused in the deployment of personnel to various department of the Bank at Okpara Avenue, Enugu.
1.8 Definition Of Terms
i. Mbo:
Management By Objective
ii. Appraisal:
Evaluation, or to evaluate
iii. Financial Institutions:
Those Institution that make available to Customer’s short term,. long term and other credit Instruments for investment purposes.
iv. Management By Objective:
A System whereby the objectives for the Company as a whole are decided upon by the Management and subordinates to achieves the organisational goal.
