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PROJECT TOPIC- A STUDY OF THE EFFECTIVENESS OF CUSTOMER RELATIONS AND EMPLOYEE MOTIVATION PRACTICES OF SELECTED NEW GENERATION BANKS (A CASE STUDY OF DIAMOND AND INLAND BANKS)

PROJECT TOPIC- A STUDY OF THE EFFECTIVENESS OF CUSTOMER RELATIONS AND EMPLOYEE MOTIVATION PRACTICES OF SELECTED NEW GENERATION BANKS (A CASE STUDY OF DIAMOND AND INLAND BANKS)

 

ABSTRACT

Banks in Nigeria today are engaged in a “war” with new gen xation banks I seemingly having the upper hand for customers and market share. ‘ t is generally believed that good customer relations practices carried out by adequately motivated staff play a major role in this war. This study was therefore embarked upon primarily tc confirm or disconfirm the following:

1. Whether customer relations practices of these banks meal:: an enabling environment required for more efficient and reliable service I ielivery.

2. Whether motivation practices of banks, especially the n:w generation banks, satisfy the intrinsic and extrinsic needs of their staE
To provide answers to the abave problem, this research \~ork has as its major objectives:
1. Critically assess effectiveness of customer relations practices of new generation banks.
2. Identify motivators for staff and determine if these motive~to rs serve their purpose.
3. Identie shortfalls in customer relations and motivators of new generation banks and make recommendations based on findings.
Two new generation banks Diamond and Inland Banks were selected as case studies. Six research questions and six hypotheses wer: posed and
formulated to guide the study.
Questionnaires were prepared for staff and customers of the banks and based ott responses to the questions, the research questions were inalyzed using tables and charts. Hypotheses were tested using the Chi-square for nula Results obtained from data analysis and testing showd that while
customer relations practices of both banks me achieving desired results motivational practices of the banks are yet to fully satisfjr extrin! ic and intrinsic
needs of employees. Recommendations on how to improve upon lapses or short BIls observed in customer relations and motivators of both banks were proffered based on available data collected from questionnaires and personal interviewer ws.

CWTER ONE
1 1 LNTRODUCTlON

In recent times, good customer and public relations hns come to be recognized as an element of primary importance in bank operations, an
element without which individual banks and indeed the entire banking system as we know it, cannot survive.
Custotner relations in banks means “Programmes and activities carried out among the many sectors of the public by banking institutions to create a
good will and understanding of the bank’s role in their lives” (Adikwu, M.A. 1982).
Banks exist to serve the financial needs and wants of people, people as individuals, as business, as institutions and as government. Public or customer
relations are also concerned with creating, promoting and sellins bank services – Marketing. Banks have no vested right to existence as private institutions. They are operated under Iaw which can be changed by people In the planned economy, as opposed to fiee enterprise system, people believe that banking should not be a private function but rather a fimction of government.

Public or customer relations for banks means consequenttly, that banks must perfonn to the satisfaction of people and persuade people that banks are :m essential part of a fiee enterprise economy operating for the greatest number of people. A bank is people. It is the bank’s people who represent the bank to the people of the bank’s many customers or public. It is the bank’s people who provide the services or who do not; it is the bank’s people who make the bank a good citizen of the community or who do not; it is the bank’s people who make bank ‘A’ a better bank with which to do business than bank ‘B’ or who do not.
It is the bank’s people who assure the bcmk’s progress or who do not. The staff of any bank is the heart of its public or customer relations
activities. Without the full support and active participation of those who work for the bank, its customer relations activities will not be fully successful.
Participation extends beyond the hours the employee spends inside the bank, for all his outside activities he is regarded as a representative of the bank and should conduct himself in such a way that he brings credit both to himself and to his bank.
Management’s attitude should not be to employ hands to run machines or balance books but to select people who may be entrusted with the business
and goodwill of the bank’s customers and this is where the personnel policy of any bank should be closely correlated with its public or customer relations policy. Employees are the substance out to which any bank’s future success is built. Hence they require training and experience irl clerical tasks and getting , along with people.
‘Therefore, all bank personnel sliould be imbued with the importance of good customer relations, and training employees in the art of getting along
with people should be part of every bank’s customer relations programme. In addition, employees must be adequately motivated so as to actively participate and support customer relations activities of their respective barks and perform other tasks which would facilitate the smooth operations of heir respective banks.
Banks employees, like most other Nigerian workers have for themselves a very high evaluation, such as self respect, achievemerit f i ,m his ability,
status recognition, knowledge and sense of being wanted and appreciated by their employees, not being exploited. The continuous sati#,faction of an
employee or employees offers the way to motivating them to better job performance, thus utilizing the human element to achieve the ol,jectives of the
bank.

PROJECT TOPIC- A STUDY OF THE EFFECTIVENESS OF CUSTOMER RELATIONS AND EMPLOYEE MOTIVATION PRACTICES OF SELECTED NEW GENERATION BANKS (A CASE STUDY OF DIAMOND AND INLAND BANKS)

 

1.2 STATEMENT OF THE PROBLEM

Nigeria’s banking system has suffered for too long from lack of confidence from the banking public, a situation which aro~: fiom losses incurred by depositors in the various liquidated banks as a result of the distress syndrome which left the industry in tatters.
To restore public confidence, compete effectively in a highly competitive industry, build up a positive corporate image and s rategically reposition
tl~emselvesto meet the major challenges of the banking ndustry in the next rnillenni~un, banks, especially the new generation banks r#:ly heavily on
efficient and reliable service delivery. To create an enabling e environment to allow for efficient service, the banks in turn rely on custr mer relations
practices.
The success of any bank’s customer relations activities del ends largely on the bank’s staff who must be adequately motivated in orde. to be fully
cornmi tted to the banks customer relations activities. The problem now arises in ascertaining whether:

1 . Customer relations practices of these new generation ban cs create the I enabling enviroriment required for efficient and reliable ser .ice delivery;
2. Motivatiori practices of new generation banks satis@ the intrinsic and extrinsic needs of their staff thus allowing for total comm itment to the
success of customer relations in their respective banks.
To this effect, two (2) new generation banks namely: Di amond bank and lnland bank respectively have been selected as ca ;e studies to
ascertain the effectiveness of customer relations an 1 Employee Motivation Practices in new generation banks.

1.3 RESEARCH OBJECTIVES

The Long-range goal of the banking industry is to continue to operate as an element of a private enterprise economy and the goal of evr ry individual
bank i s to grow and prosper. To achieve this goal i.e. growth at d prosperity, banks anticipate and create customer needs and wants and orgzlnize all their resources to satisfy them at greater total profit to the bank and to 1 le customer.

To do this effectively, banks have to influence the climate and environment in which it carries on its business. Thus good custcmer relations is very vital because it influences the climate and the environme it in which a bank carries on its business and thus makes the bank’s marketin!, finctions of creating and selling services at a profit to the public easier. Tl us, it can be clearly seen that customer relations activities and marketing actil ities of every individual bank compliment each other.
A cursoqr look at the activities of banks in Nigeria today v ith regards to customer relations and motivation of employees, reveal quite cle xly that most
banks have poor customer relations. It is a common sight in most banking halls lo see agitated and fn~stratedc ustomers complaining bitterly of 1o or customer relations and services. Responses from an informal survey of so me customers and staff of some old and new generation banks in Enugu Metro1)olis – Union, UBA, First and Diamond banks respectively revealed some intert sting facts.
The respondents were of the view that: Most Nigerian banks have poor customer relations. Re= ons given for this negative public image include poor customer service s, discourtesy and insensitivity of staR ineficiency and ineffectivenec s and lack of information; New generation banks have better customer relations t?mn their first generation counterparts; Employees of new generation banks enjoy better working conditions than their counterparts in first generation banks and he1 ce, are better motivated and more committed to all aspects of their b mks activities including customer relations.
To validate the veracity of these claims, it became necess iry to conduct a shidy in order to have or make an in-depth assessment of the effectiveness of
customer relations and employee motivation practices of new generation banks in Nigeria using Diamond Bank and lnland Bank Ltd., as case studies. Thus, the major objectives of this research are as follows: To critically assess customer relations practices/activi tie s of Diamond Bank Ltd and Inland Bank Ltd so as to determine whet1 er they create conducive environment which will enable the banks to effectively carryout their marketing fiinctions;
To identify the practices/measures implemented by the r iai~agement of Diamond and Inland Banks to motivate their personnel and determine
whether these practicedmeasures adequately satis@ intrinsic and extrinsic needs of their employees; To identi@ any shortfalls in employee motivation and customer relations practices of both banks, and to proffer sol rtiorls and or recommendations where necessary.

RESEARCH OUESTIONS 

1. What practices/activities do Diamond Rank and In land Bank Ltd engage in to ensure good customer relations?
2. Do these customer relations activities crea :e conducive environment that allows effective marketing of ba Iking services to the public?
3. Do the customer relations activities of the banks be tow on tfiem a good corporate image?
4. What are the motivational factors present in the banks that are designed to motivate their personnel?
5. Do these motivational factors satis$ the intrinsic and extrinsic needs of their employees?
6. Do these motivational factors adequately motivate the employees to achieve the desired level of job performance?

1.5 HYPOTHESES

PROJECT TOPIC- A STUDY OF THE EFFECTIVENESS OF CUSTOMER RELATIONS AND EMPLOYEE MOTIVATION PRACTICES OF SELECTED NEW GENERATION BANKS (A CASE STUDY OF DIAMOND AND INLAND BANKS)

 

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