THE EFFECT OF TRAINING AND DEVELOPMENT ON CUSTOMER SERVICE DELIVERY AMONG NIGERIA BANKS (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)


Content

 

 

ABSTRACT

Training is an integral part of the success of any organization. The training and retraining of employees enable them to meet up with the rapidly changing trends in the business environment which in turn reflects positively on the efficiency, productivity as reflected in customer service of the organization. This study’s main objective was finding out the Effect of Training on customer service delivery among Nigerian Banks using First Bank of Nigeria Plc as a case study. Customer service is the heart beat of any organization. The efficient handling and management of customers go a long way to ensure customer loyalty that effectively translates to organizational productivity using a descriptive statistics, cross tabulations and Chi square tests on the data gathered by a well designed questionnaire, this study was able to critically review the Effect of Training on customer service delivery among Nigerian Banks. It discovered that there was a positive and significant relationship between training and efficient service delivery in banks. Furthermore, by training workers periodically and equipping them with new skills, add as an impetus to their motivational levels and loyalty to the organization. This study concludes that a highly training motivated workforce is the key to the survival of any enterprise in a highly volatile economic environment through its customer service practices.


TABLE OF CONTENTS

Pages

Title page

Certification                                                                                     i

Dedication                                                                              ii

Acknowledgement                                                                           iii

Abstract                                                                                            iv

Table of Contents                                                                             v

 

Chapter One  

1.1       Introduction                                                                           1

1.2       Problems Statement                                                              3

1.3       Purpose of Study                                                                   4

1.4       Research Questions                                                               4

1.5       Research Hypotheses                                                            5

1.6       Historical Background of First Bank of Nigeria Plc.           6

1.7       Significance of Study                                                             7

1.8       Scope of Study                                                                       9

1.9       Limitation of Study                                                                12

1.10    Definition of Terms                                                                12

 

Chapter Two: Literature Review   

2.1       Meaning of Training and Manpower Development              19

2.2       Importance of Training Manpower                                       20

2.3       Level of Training                                                           22

2.4       Motivation and Job Satisfaction                                           26

2.5       How to achieve Organizational Objective through              

Well Motivated  Employees                                                    30

2.6       Expectancy Theory of Motivation                                          33

2.7       Administration of Wages and Salaries                                  37

2.8       Organisation Development Policy                                         40

2.9       Control                                                                                   42

2.10    The Concept of Training                                                        45

2.11    Objective of training                                                               46

2.12    Principles of Training                                                             47

2.13    Identifying the Training Needs                                              47

2.14    Training Methods and Techniques                              48

2.15    Implementation of the Training Programmes                       52

2.16    Evaluation and Validation of Training Programmes 54

 

Chapter Three: Research Methodology           

3.1       Introduction                                                                           56

3.2       Restatement of research Questions                                      56

3.3       Restatement of Research Hypotheses                                   57

3.4       The Research Design                                                             58

3.5       Characteristics of the Study Population                     58

3.6       Sampling Procedure                                                              59

3.7       Data College Instruments                                                     59

3.8       Standardization of Data Collection Instrument                   59

3.9       Scoring and Data Collection                                        60

3.10    Procedures for Analyzing Collected Data                             60

3.11    Limitations of the Study                                                        62

 

Chapter Four:  Data Presentation and Analysis

4.1       Introduction                                                                           63

4.2       Data Presentation                                                                  63

 

Chapter Five:  Summary of Findings, Conclusions and Recommendation           

5.1       Summary of Findings                                                            75

5.2       Conclusions                                                                           77

5.3       Recommendation                                                                   78

References                                                                              80

Appendix  

CHAPTER ONE

1.1    INTRODUCTION

In modern corporate environments, the training of employees has continued to enjoy considerable attention of management of organization as a positive correlation has been established to exist between training and organizational performance.

 

More so, in this insatiable environment of technological advancement, it is very important for organizations to create an adaptable labour force that can meet the ever changing technological environment. It is important that a new employee be properly training by his organization for to perform his job effectively.

 

Training is directed towards changing the behaviours and attitude of employees to achieve an acceptable result more especially in the performance of employee’s jobs and satisfaction. This on the part of the organization if effective, it leads to higher production, fewer mistake, lower labour turnover, goal and growth achievement.

To the employees it leads to emergence of new carried opportunity, promotion, change in status and acquisition of knowledge and skills.

In the past, little or no attention was given to training of employees but now it is evident to management and National leaders that training of staff is very vital if the organization is to justify its existence hence the establishment of various institutions and bodies helping organization to train their employees.

 

The origin of training in Nigeria industries dated back to year 1970. it was brought to the light of day at the 14th Annual General meeting of the Nigeria employers consultative Association (NECA) when Chief Anthony Enahoro, the then Federal Commissioner of labour and productivity commented on the importance and role of employers in training their employees.

 

Other institution and bodies are: The Industrial Training Fund (ITF) which was established to ensure that there is adequate trained manpower to run industry and commerce in the country under Decree No 47 of 1971 as amended by Decree No 37 of 1973 and the budget speech of 1975.

 

The Nigeria Centre for Management Development (NCMD) was established in 1972 to give proper direction to institution engaged in the education, training and retraining of management manpower in Nigeria.

The Administrative Staff College of Nigeria (ASCON) by Decree No 39 of Nigerian Institute of Management (NIM)

Financial Institution of Training centre (FITC)

The Chartered Institute of Banking of Nigeria (CIBN)

 

However, plan must be developed to state clearly what training is to be provided and how, by whom, where and at what cost. The evaluation of training programme is also important as it enables the management to know whether or not the training goal is achieved.

 

1.2       PROBLEM STATEMENT

Some  of  the problems inherent in  this study could  be  traced  to  the employees  themselves and  the  management attitude towards  training.  The problem is centered on the effectiveness or the impact on the performance of the employees. Why is it that some employees are still not performing up to expectation?  Does it mean that employees are not sent on the right type of training or could it be because employees are not putting into practice what they leant during training. What are the factors that contributed to the negligent attitude of most organizations towards training activities.

1.3       PURPOSE OF STUDY

The study will look into the training of workers in the Banking industry as practiced in First Bank of Nigeria PLC, and how it impacts on customer service delivery standards and practices.

Also the purpose of the study includes:

1.      To know the impact and importance of training on productivity and profitability    

2.      To Identify the training needs of the employees

3.      To examine training methods and techniques

4.      To know if it necessary to evaluate and validate training programme after implementation

 

1.4    RESEARCH QUESTIONS

1.      Is a well planned training programme given adequate importance in the organization?

2.      Does training of sufficient duration provide an excellent opportunity for employees to learn comprehensively about the organization?

3.      Are employees helped to acquire technical knowledge and skills through training that is periodically evaluated and improved?

4.      Is training given adequate importance in the organization such that employees are sponsored for training programmes on carefully identified development needs?

5.      Do employees take the training programme seriously such that they participate in determining the training they need? 

 

1.5    RESEARCH HYPOTHESES

Hypotheses 1

H0:    There is a positive and significant relationship between human relations competencies in the organization and its managerial capabilities.

H1:     There is a positive and significant relationship between human relations competencies in the organization and its managerial capabilities.        

Hypotheses II

H0:    There is a positive and significant relationship between management policy to develop junior workers through training and customer service delivery.

H1:    There is no positive and significant relationship between management policy to develop junior workers through training and customer service delivery.

 

1.6       HISTORICAL BACKGROUND OF FIRST BANK OF NIGERIA PLC  

First Bank of Nigeria was founded in 1894 by a shipping magnate from Liverpool, Sir Alfred Jones. It was incorporated as a limited Liability company on March 31, 1894 with office in Liverpool.

 

It started business under the corporate name of the British West African (BBWA). A branch was opened in Accra, old coast (now Ghana) in 1896 and anther in Freetown, Sierra Leone in 1898.

 

In the early years of Operations, the bank worked closely with the colonial Government in performing the Traditional function of a central Bank. In 1957, it change its name from Bank of British West African to bank of West Africa.

 

In 1969, the bank was incorporated locally as the standard Bank of Nigeria Limited in line with the companies Decree of 1968. The Bank commenced as a small operation in the office of elder Dempster and company in Lagos. Change in the name of the bank also occurred in 1979 and 1991 to first Bank of Nigeria limited and first bank of Nigeria PLC respectively.

In 1985, the bank introduced a decentralized structure with five regional administrations and this was reconfigured into sixteen area office in 2003.

In 2001, the bank began the process of transforming its corporate identify to reflect its rejuvenated focus.

The process gained momentum in 2003 and was launched on Tuesday April 27, 2004 with the introduction of a new corporate identity.

 

To satisfy the need of its customers, first Bank has diversity into a wide range of activities and service. These include corporate, retail and mortgage Banking, Registrarship, private equity financing, trusteeship and insurance Brokerage.

 

FBN got listed on the Nigerian Stock Exchange (NSE) in March 1971 and has won the NSE president’s Merit Award ten times for the best financial report in the banking sector.

 

Currently, with 358 branches spread throughout the federation, the bank maintains the largest branch network in the industry.  The number of staff is over 7,000. Over the years, the Bank has experienced phenomenal growth. With a share capital of N55.6 million in 1980, the Bank’s share capital grew to N1.751 billion.  The Bank’s total assets were N312.5 billion while its deposit base stood at N981.41 billion.

In conclusion, the Bank track record of profitability and reliability in sound banking has continually placed it in its leadership position.

 

1.7   SIGNIFICANCE OF STUDY

The significance of this study cannot be over emphasized.  This research work would be of great assistance to different people in different ways. In the first instance, First Bank of Nigeria PLC will better appreciate the need for manpower training.

 

This study shall therefore be very useful to employers of labour in the financial sector who will get to know the importance of training to the efficiency of customer service delivery.

 

The study is also significant in that is would give an insight into how employees can be effectively  deployed  to practice what they have acquired from a successful training course in order to meet organizational  goals of effective service delivery.

 

The study would also be beneficial to management of financial institutions and indeed other service delivery organizations, in performance appraisal techniques and in the determination of the fact that training and development of employees aimed that improving customer service delivery is a good investment that pay off in the future.

 

1.8       SCOPE OF STUDY

As the title of this research shows, it is meant to cover the impact of training on the performances of workers in First Bank of Nigeria PLC and to highlight the importance of training on the attainment of the goals and objectives an organization.

 

Customer service improvement requires understanding, commitment, time and effort. Companies or organizations that manage customer service the best are those who develop a policy and then stick to it.  This may seem easy, and this manual will help you along in this process, but in an age of political transition, mergers and acquisitions, regulation and de-regulation, rapid management turnover and global competition, adhering to sound customer service policy can be quite a challenge.

 

What Customer Service Means

As mentioned earlier, customer service means providing a quality product or service that satisfies the needs/wants of a customer and keeps them coming back. Good customer service means much more-it means continued success, increased profits, higher job satisfaction, 2 Bailey, Keith and Leland, Karen. Customer Service for Dummies, New York, 2001.

One commonality among all companies or organizations that provide good service is the development of a system and attitude promoting customer friendly service is the development of a system and attitude promoting customer friendly service. By “customer friendly” we mean viewing the customer as the most important part of your job. The cliché, “The customer is always right” is derived from this customer friendly environment. Two critical qualities to the “Customer Friendly Approach”:

1.      Communications

2.      Relationships

The two main tasks of successful customer relations are to communicate and develop relationships. They don’t take a huge effort, but don’t happen instantaneously either. Positive dialogue/communication with your customers and developing ongoing relationships with your customers are perhaps the two most important qualities to strive for in customer service.

Think about it places where you enjoy doing business-restaurants, stores, petrol stations, suppliers, banks, etc. why,  aside  from  the  actual product or service  they provide, do you like  doing business with  them?  You probably find them courteous, timely, friendly, flexible, interested, and a series of other exemplary qualities. They not only satisfy your needs and help you in your endeavors but make you feel positive and satisfied.  You come to rely on their level of service to meet your needs and wants.

On the other hand, let’s review a business you dislike patronizing maybe even hate utilizing but in some cases do so out of necessity. Maybe it is the Ministry of Transport when you need a new driver’s license or maybe it is the local department store that carries a product you need but who offers lousy service when you purchase. In both of these cases we are willing to hypothesize that the customer experience is marred by long lines, gruff service, inefficient processing, impolite and unfriendly clerks or salespeople, lack of flexibility, and no empathy for your customer plight. In these cases you feel abused, unsatisfied, and taken advantage of-in essence, your experience is wholly negative.

Unfortunately,  in the  cases we outlined  above there is no  competition for the service/products offered or you  would  gladly not  consider using  either  the Ministry of  Transport or  the rude department store. This is the advantage of a monopoly on a good or service because in a competitive marketplace, the unsatisfied customer shops elsewhere.

 

Remember, good customer service results in consumer satisfaction and return customers and growth in business. Poor customer service, except for monopolistic strongholds, generally results in consumer dissatisfaction, lack of returning customers and swindling business.

Customer Service Qualification

Customer Service = Accountability + delivery  

Customer service is:

1.      Fundamental

2.      Simple

3.      Daily

4.      Time oriented

5.      Persevering

6.      Specific

 

1.9       LIMITATION OF STUDY

Time and finance constitute constraint on this research.

 

1.10    DEFINITION OF TERMS

Activity: A sub-component of a service. A group of activities make up a service. The lowest level at which data is collected to measures cost or performance.

 

Aligned: The state in which all of the services and activities of an  organization accomplish the Mission.

Alignment: The process by which an organization and/or its functions becomes aligned. During the Alignment process, mission and service are reexamined throughout an entire organization for consistency, to make sure the services roll up to accomplish the mission.

Benchmarking: Comparing activities and business processes and cost internally or externally with competitors or acknowledge “best practice”.

Charter: A document where by the purpose, outcomes, resources and authority of a team are defined.

Coaches (citywide): A centralized group of staff assisting departments with their alignment effort.  Coaches will work with department facilitators and the department implementation  team to assist them in accomplishing  the process. Coaches are also  responsible for ensuring cross organization communication,  capacity and consistency.

Managed competition: A tool to achieve highest qualities services in the most cost-effective manner. A process in which public and private entities compete through an RFP process to provide specific services and achieve results.       

 

Continuous Improvement: A systematic, consistent, integrated method that continually improves the quality of processes, products and /or services delivered by the organization.

Core Service: A primary deliverable of an organization. Core Service are often what the customer sees. The successful accomplishment of core service results in the organization achieving mission.                                                                     

Cost: One of four key measurement areas used to assess the performance of a service. Typical cost performance measures are a ratio of cost to budget or cost per  unit of service, My include  financial aspects a revenue, debt,  reserves or fund balances, labor, materials, overhead and equipment.

Customer: Anyone who directly or indirectly is a recipient of a service/product.

Customer Perception: One of four key measurement areas used to asses the performance of a service (satisfaction). Typical customer service surveys measure perception of quality, timeliness, cost, etc.

Cycle Time/Response Time: One of four key measurement areas used to assess the performance of a service, time from request for a service to delivery of a service, activity, program, etc.

 

Facilitator (s): (Department) Individual (s) dedicated to facilitate the department’s implementation of investing in results. They will lead or co-lead the department implementation team, create the implementation plan, ensure other department facilitators are trained and will ensure the outcomes of the raining, workshops and retreats are met.

Gap Analysis:     A process during which the difference between  actual performance/results is  compared to desired performance/results or between the  services the  customer  wants and the  service delivered.

Input: Resource that contributes to the delivery of an activity or service or a product. Some inputs may include: personnel, labor hours, supplies or equipment.

Key Functional Player: A cross-functional, multi-level group of staff in a department who are responsible for the oversight and/or delivery of service, and who have peer respect.

Key Measurement Areas: A group of indicators that, when measured together, give a balanced picture of how well an activity is performed and whether a service or product is meeting customer needs.

 

Meaningful Prerequisite characteristic of a good performance measure. A meaningful measure provides information that those collecting and using the measurement data believe is necessary to present an accurate picture of their performance.

Mission: A statement describing the reason for the existence of a department or organization.

Operational Service: Operational Services roll-up to accomplish the core services of the organization. A front-line level of an organization that is primarily concerned with day-to-day work.

Outcomes: The results of producing an output or delivering a service or product.

Out-put:  The product of an activity or a product created by people using resources.

Performance Based Budget: A type of budgeting that focuses on results and sues performance information to drive operations.

Performance Measures: Indicators used to assess, improve and communicate the results of services, products.

Process: A combination of people, technology, supplies, methods and/or environment that produce a given service.

 

Program: One or more activities that contribute to the accomplishment of a service.

Purpose:  The statement describing the reason for the existence of a division, program, section or functional area.

Quality (accuracy): One of the four key measurement areas used to asses the condition or accuracy of the service which is being provided.

Service Groups: A collection of core services that share a larger or common result or outcome.

Stakeholder: Anyone who directly or indirectly is affected by a service/product and who has an interest in how the service is performed or product is delivered.

Strategic: Long term in nature, concerned with achieving the mission.

Sustainable: Cost Effective to continue over a long period of time.

Tactical Task: A unit of work or effort undertaken to accomplish an activity.

Team (department): People working together to achieve a goal.

Useful

Prerequisite c characteristic of a good performance measure. A  measure  must provide information  to those  who collect the  data on  the measure, while reflects an accurate picture of how well a  service/ product is being performed and can be used to performed a  gap analysis on  the service/product. Vision

A description of a preferred future state.

TRAINING: This refers to the act of assisting a learner to acquire skill, knowledge, attitude or behaviour necessary for performing a particular job.

SKILL: The ability to do something expertly and well.

PERFORMANCE: This is the physical and mental efforts exhorted towards the accomplishment of a particular task or derived goal by an individual or organization.

MANAGEMENT: This is a group of individuals occupying the top position of an organization and in whom the power and authority of administration of the organization is vested.

TRAINEE:            This is a person that is being trained on a job.

TRAINER:             This is people who train others on a job.

EMPLOYEES:      These are the human resources employed to carryout the day to day organizational activities in consideration of some agreed remunerations.

LABOUR TURNOVER:  This is a term to describe the change in labour force of an organization which is measured in terms of the ratio of the number of employee leaving the organization and the average number of employee during a specified period (usually a year).           

 

 

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