AN APPRAISAL OF THE RECRUITMENT AND SELECTION PROCESS IN BANKING INDUSTRY (A CASE STUDY OF UNITED BANK FOR AFRICA PLC)

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Product Category: Projects

Product Code: 00005802

No of Pages: 103

No of Chapters: 5

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TABLE OF CONTENTS

Title page                                                                                i

Certification                                                                 ii

Dedication                                                                              iii

Acknowledgement                                                            iv

Table of contents                                                                    v

 

1.0   CHAPTER ONE: INTRODUCTION

        Background information                                        1-10

        Statement of the problem                                        11

        Purpose of study                                                     12

        Relevant research questions                                   12

        Research hypothesis                                               13

        Significance of study                                               14

        Limitation of study                                         14

        Definition of terms                                         15 -16

 

2.0   CHAPTER TWO: LITERATURE REVIEW

2.0    Introduction                                                   17

2.2    Recruitment and selection defined          18

2.3    Systematic approach  to recruitment and selection 19-31

2.4    Stages of staff recruitment                      32-46

2.5    Internal perspective on recruitment and selection  47

2.6    Infrastructure and government support                    48

2.7    Government regulation and legislation             49

2.8    Culture of the individual country                      50

2.9    Foreign ownership of large organisation           50 

2.10  Recruitment method                                           51-51

 

3.0   CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Research design                                                  53

3.2       Area of study                                                       53

3.3       Study population and sample size                              54

3.4       Instrumentation                                                  54

3.5       Validity of instruments                                                55

3.6       Methods of data collection                                 55

3.7          Methods of data analysis                                             57-59


4.O   CHAPTER FOUR: DATA ANALYSIS 

4.1    General Characteristics of the respondents               60-66

4.2    Test of hypothesis                                               77-80


5.0       CHAPTER FIVE: SUMMARY, DISCUSSION

 AND RECOMMENDATION                                          81    

5.1    Summary                                                            81

5.2    Discussion of findings                                        82-83

5.3    Recommendation                                                         84-85

Bibliography                                                                 86-87

 

 

LIST OF TABLES

Fig. 4.1                           Age Distribution of Worker                                   55-56

Fig. 4.2                           Sex and Marital Status of Workers              56

Fig 4.3                            Academic Qualification of Respondents                57

Fig. 4.3a-4.3x                 Research Questions and Answers               58-71

Fig. 5.1-5.3                    Research Hypothesis Stables                      71-73



CHAPTER ONE

1.0       INTRODUCTION

1.1   BACKGROUND INFORMATION

Within the context of the work place staffing is an umbrella term  used to describe the following inter-related activities; job analysis and description, human resources planning recruitment and selection, placement, transfer and promotion.

 

Staffing is the responsibility of all managers although the personnel manager has overall coordinating role. Since the job has to be done, he must look for employees who are capable of working effectively. In some formal sector, there are trade unions representatives who may need to be consulted. Therefore, recruitment can be defined as the process of attracting personnel from inside and outside and challenging them through jobs within the organisation. The first   step of recruitment is to define the job that is vacant and define the sort of person likely to fill the vacancy. The information must be thoroughly and completely described i.e. job analysis and job description are often required and hence the  following information may emerge.

a.           Duties to be carried out

b.           Knowledge or previous experience required

c.            Academic, technical or professional qualification required

d.           Skills required e.g. typing, computing etc.

e.            What age-group is appropriate.

f.             The salary grade

 So job analysis and description is asset in the recruitment process and care must be taken not to employ a mediocre or even the highest achiever in determining the standard required of all applicants.


HISTORICAL BACKGROUND

United Bank for Africa Plc was established in Nigeria in the year 1949, as a branch of the British and French Bank London, an affiliate of Banque Nationale de Paris. Their issued share capital =N= 4million and the under listed banks subscribed to it.

a.           British and French Bank

b.           AMRO Bank (Amsterdam & Rotterdam Bank Holland, which pulled out of shareholding in 1973)

c.            Bankers Trust Company New York

d.           Banca Nazionale del lavolo Italy.

 

These five banks were represented on the board and they have their staff working here in Nigeria. She became incorporated on the 23rd February 1961 and then changed its name to the United Bank for Africa Limited, inconformity with Nigerian companies Incorporation act, 1960. The bank was among the first international banks to be registered under Nigerian Law and it has been playing a leading role in the implementation and achievement of Government objectives.

The bank was among the first expatriate banks to sell its shares to the Nigerian public in 1971.

 

With the indigenisation of the bank, it started integrating Nigerians into management positions. There were about 55 expatriates and 16 Nigerian Officers.

 

From its inception, UBA has had the capital support of several major overseas banks as earlier mentioned and these banks contribute their technical expertise to UBA’s operations. The share capital holdings were revised on the 30th September 1976, and a number of revisions have since been made.


Table 1.1 shows UBA’s share capita holdings by percentage.

S/N

HOLDER

NOMINAL VALUE

% HELD

1

Nigerian citizen & associate

360,000.00

60%

2

Banque Nationale Depasis (intercontinental France)

31,372,560

5.23%

3

Banque Nationale Depasis Plc

152,827,440

25.49%

4

Banker International Corp New York

27,000,000

4,50%

5

Banca Nazionale del Lavolo Italy

14,400,000

2,40%

6

Montel dei Paschi di seina Italy

14,400,000

2,40%

 

Total

6000,000,000

100%

 

UBA has witnessed phenomenal growth and expansion since its inception. Below are a few comparative statistics showing the rate of growth of the bank since 1961.

Table 1.1: Below shows the growth rate by providing some growth indicator.

UBA’s GROWTH INDICATORS – 1961

No of Branches             10

Capital Base                 =N=4.0

Total Assets                  =N=4.9

Pre-Tax Profit               =N=2.2

Profit after tax               =N=2.2

 

Within three decades of its inception, UBA became one of the three leading commercial banks in the country. In 1978. In UBA also was the first Nigerian bank whose assets reached the billion naira marl. UBA’s outstanding performance in the past 39 years is in part, attributable to the willingness to innovate the dual objectives of providing first class banking services, and being a good corporate citizen.

 

In 40 years of its existence, the bank has been taken a great giant stride to become the number one bank in black Africa. This achievement has been acknowledged worldwide. For instances, the July 1986 issue of the bankers’ magazine (an international finance journal based in London) published its annual ranking of the top 500 Banks is world, UBA was 360th, the highest for any Nigerian Bank. UBA Plc is structured into six sectors each overseen by an Executive Director.

 

a.     Treasury and Consumer Banking

The Treasury and consumer-banking sector is geared towards deposit mobilization and treasury management. It is charged with leverage the bank’s franchise to grow deposits and fees in the retail areas. To achieve this, it places reliance innovative product development and marketing to achieve customers loyalty. Such products include UBA money-gram, Easy card, Value Card and Save for school.

 

The treasury arm of the sector is charged with the effective management of interest, funding and exchange rate as well as trading of local and foreign currencies. While the financial institutions, treasury, marketing and federal Government deposits mobilization units, are responsible for generating wholesale deposits.  

 

a.     Corporate  Banking

The Corporate Banking sector comprising four divisions, is responsible for on-going prospecting and management of relationships at the high end of the market selling an entire range of products services to leading corporate. The multinational, energy and national corporate divisions service their customer through relationship managers while a transaction service utilizes product managers.

 

The energy division focuses specifically on the oil an gas industry exploring segment specific competencies in service delivery in the upstream, downstream and oil service sectors. The achievements of the division have confirmed the bank’s position as a leading energy bank I Nigeria.

 

c.     Commercial Banking

This sector is responsible for the development of relationships in the middle market. It enhances the development of its key relationship, using pricing, development of new high yield products and value driven relationship management hinged on target market definition and structured credit offerings.

 

Through these means and its presence in major market centers, the sector has contributed to the growth of many indigenous businesses allover the country. The sector has also contributed to the bank’s position as the dominant player in the official and autonomous foreign exchange markets and has supported the overall growth of the deposit drive of the bank.

 

d.     Credit Risk Management

The credit bank management sector is possible for the overall management of the risk assets by ensuring prompt review, analysis and approval of credit facilities. The sector also ensures compliance with regulatory requirements and with the bank’s own credit policies and guidelines. 

e.     Operations & IT

The primary vision of the operations and information technology sector is to drive customer service delivery. The operations division delivers the bank’s products to customers through the branch network. The division has put in place automated clearing processes and has centralized certain processes e.g. BA & CP processing and cash sorting in Lagos. it has linked additional branches directly to the money gram center in Denver, USA. It has also implemented a new general ledger and improved the closure and reporting of its operations, the information technology division continues in the modernization of the bank’s systems and processes. The division intends to deploy SAP applications to the head office and branches from October 1999. The division will also formalize polices and standards that will ensure that IT projects embarked upon by the banks are implemented based on acceptable standards and procedures.


 

f.      Management Services.

The management services sector comprises human resources management and training, industry relations, medical services, classified assets management, legal services and the registrars department.

The managing director coordinates these six sectors. He also oversees divisions such as financial control, inspection and strategic management, which are responsible for assessing compliance with, controls, performance management, financial and management reporting, as well as decision and information support.


OUTLOOK

Despite the challenging economic environment the bank poised to reap the gains of restructuring and is well positioned to maintain its leadership position in the banking industry by leveraging on its size, client base, market goodwill, and customer confidence, in concert with the increasing interest in Africa, recent developments such as deregulation, liberalization, privatization as well as micro economy stability have made the business environment. In Nigeria more attractive. UBA Plc as a modern and forward-looking bank is an ideal strategic business partner for investment and trade.


NUTURE OF BUSINESS

 The nature of banks business is basically that of funds mobilization and creation of asset from these polls of funds in form of loans and advances. These banks generally mobilize funds from individual groups, organisation and government agencies and channel these funds to profitable investments, the banking industry is a very dynamic one, and one essential characteristics of the modern day bank is the emergence of several products and numerous services. It is a change that has brought banking to the doorstep of customers and phased out aim’s length banking. The nature of business of banks generally if focused on this development. The recent emphasis on the principle and application for this concepts in banking has rather been forced on other environment changes.


PRODUCT AND SERVICES OPERATION

Intense competition amongst bans, deregulation, market share and profitability has led to the introduction of new products, improved services, and relationship marketing. In recent times, banks regulation and technological innovation have made customers to alter the services and products they desire. This has compelled banks to come up with products and services that meet these needs. Such products in UBA Plc includes; easy card, money gram, save for school, dial up e.t.c.


MANAGEMENT STRUCTURE

The management structure of the bank has under gone rationalization and reconstruction over the years to meet the achievements of the bank’s objectives and mission. For better and more effective management decision making, the revised organisational structure for the bank is as stated above.

 

Turnover and profitability: The bank’s growth, both in the terms of turnover and profitability over the years ahs been attributed to the bank’s willingness to innovate, with the dual objective of providing first class banking services and being a good corporate citizen.

 

1.2       STATEMENT OF THE PROBLEMS

Recruitment and selection procedures can consciously or unconsciously affect the job performance and commitment of a prospective employee. This study is therefore aimed at assessing the impact of an organisation’s method of recruitment and final selection on prospective job applicants, and how these methods goes a long way in affecting the commitment of the employee on the job.


1.3   PURPOSE OF THE STUDY

It is believed that unless and until an organisation stop hiring bad and incapable hands, organisation development remains a mirage e.g. the wrong man on the wrong job would only retard his/her growth as well as the progress of the organisation, so the purpose of this study is to find a suitable and profitable method of recruitment and selection, so as to avoid the danger inherent in it.

 

1.4   RELEVANT RESEARCH QUESTIONS

This would serve as a guide to the solution of the problem being investigated.

a.           What can make an employee resign from his job: is his reason related to his disbelief, in and non-acceptance of the recruitment and selection procedures?

b.           After the recruitment and selection exercise: Does the employee have a strong desire to maintain membership of the organisation/

c.            Is there a relationship between a successful or near perfect recruitment and selection exercise and ones performance at work?

d.           Does the employee believe in the recruitment and selection process embarked by their banks?

e.            What factors would determine a successful recruitment and selection exercise?

f.             Does the source through which an applicant was recruited affect his/her job commitment level?

g.            Does the employee ordinarily be willing to exert effort on be half of the organisation without being cajoled to do so or having prior knowledge about the job types before recruitment affects his/her job performance.

 

These are just a few questions that have to be addressed and would be needed subsequently for the construction of the questionnaire.

 

1.5       RESEARCH HYPOTHESIS

In order to meet our goal in this research work the following hypothesis s guides.

1.      Ho: That having accurate and complete information about a job type before recruitment affects job performance.

Hi: Having accurate and complete information about a job does not necessarily affect subsequent job performance.

2.      Ho: The source through which an employee was recruited affects his/her job performance and commitment.

Hi: The source through which an employee was recruited does not affects/her job performance and commitment.

3.      Ho: The mismatching of persons and job tends to affect job commitment.

Hi: The mismatching of persons and job does not affect job commitment.

 

1.6       SIGNIFICANCE OF STUDY

1.           To ensure the optimum use of the human resources currently employed.

2.           To provide for the future personnel needs in terms of skills, number and ages.

 

Hence, an organisation must ensure that it has the right quality and quantity of staff at the right time, doing the right jobs for which they are economically most useful.

 

1.7       LIMITATION OF STUDY

1.           Inadequate information as to the true method used in the selection process of the individual employees.

2.           This limited to some low level officers of the bank under study.

3.           The non-uniformity of the process being employed on individual employees especially during interviews.

4.           The non-uniformity of the processes being employed by various banks is its restrict and the extents to which generalizations based on the work can be enacted.

5.           This study is only limited to the different methods of recruitment and does not dwell on the training processes employed by these banks which determine performance.

 

1.8       DEFINITION OF TERMS

1.           Recruitment: This refers to a process of searching for prospective candidates for a particular job offer and stimulating them to apply for such job(s).

2.           Staffing: It is an umbrella term used to describe the following interconnected activities: job analysis and description, human resources planning, selection and placement, then transfers and promotions.

3.           Selection: It is a process whereby the most suitable candidate is selected from a pool of applicants.

4.           Selection ratio: Refers to the numbers of applicant for job opening.

5.           Entrants: New  employees in an organisation.

6.           Job Application: The expression on the part of the potential job candidate of the willingness either in writing or oral from to work for a specific organisation.

7.           Job Commitment: It is the willingness and determination to hold on to ones job, given all-known negative environmental influences.  

8.           Job Analysis: It is a complete study of all the rudimentary task  elements that make up a job.

9.           Job Description: Is a summary of the functions of job analysis.

10.       Job Requirement:  They are the physical, educational and experimental qualifications necessary for job success.



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