CRISIS MANAGEMENT IN THE BANKING INDUSTRY (A CASE STUDY OF ECOBANK PLC AUCHI BRANCH)

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Product Category: Projects

Product Code: 00001739

No of Pages: 45

No of Chapters: 5

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Abstract

This project on crisis management. A case for the survival of Ecobank in Nigeria talk about what will be likely to happen to Ecobank when crisis are managed. Having consulted various materials, it was revealed that Ecobank in Nigeria, are being owned millions of Naira by its customers. There has been rapid growth in the area of crisis between the management and the workers stoppage, cash flow problem etc. The management and workers tends to know and understand the principles of crisis management same to the major causes of industrial crisis in the banking industry in Nigeria include non implementation of labour agreement, management and the rate of occurrence. Ecobank was examined with a view of reaching a conclusion on how crisis can be resolved. 

 

 

 

 

 

 


TABLE OF CONTENTS

          Title Page                                                                      

Certification                                                                  

Dedication                                                           

Acknowledgement                                                         

Abstract                                                                        

Table of Contents                                                

Chapter One: Introduction

1.1     Background of the Study                                              

1.2     Statement Problem                                                        

1.3     Research Questions                                                      

1.4     Objectives of the Study                                        

1.5     Statement of Hypothesis (es)                                

1.6     Significance of the study                                               

1.7     Scope of the Study                                                        

1.8     Limitation of study                                                        

1.9     Definition of terms                                     

Chapter Two: Literature Review              

2.1     Introduction                                                                  

2.2     Concept of Banking                                                      

2.3     Concept of crisis management                                      

2.4     Types of crisis situation                                       

2.5     Crisis management strategies                              

2.6     Crisis management in the banking industry                 

2.7     Problem in crisis management in the

Banking industry                                                          

 

Chapter Three: Research Method and Design 

3.1     Introduction                                                                  

3.2     Research Design                                                  

3.3     Description of Population of the Study                

3.4     Sample Size                                                         

3.5     Sampling Technique                                                     

3.6     Sources of Data Collection                                   

3.7     Method of Data Presentation                               

3.8     Method of Data Analysis                                               

Chapter Four: Data Presentation and Analysis

4.1     Introduction                                                                  

4.2     Presentation of Data                                            

4.3     Data Analysis                                                                

4.4     Hypotheses Testing                                                       

Chapter Five: Summary of Findings, Conclusion and Recommendations

5.1     Introduction                                                                  

5.2     Summary of Findings                                          

5.3     Conclusion                                                          

5.4     Recommendations                                                         

References                                                                     

Appendix I                                                           

Appendix II                                                          


CHAPTER ONE

INTRODUCTION

 

1.1    Background to the Study

One of the key elements in modern management is the reality of crisis un organizations and management efforts at their resolution.

In recent times there has been rapid growth in the area of crisis between the management and the workers in the banking industry leading to work stoppage, cash flow problems, bankrupting, inefficiency and low productivity.

The problem of strikes due to crisis between the management and the workers is more frequent in the banking industries in Nigeria compared with
what is obtained in the advanced or developed countries where things are a bit easier. In the advanced countries the management and workers tends to know and understand the pririp1e of crisis management.

The American Management Association (AMA) recently sponsored a survey of managerial interest in the area of crisis management. The respondents spent about 24% percent of their time dealing with crisis, all in the process of avoiding crisis.

Through the survey of the executives and managers, it was revealed that crisis within the organization such as the banking industries are because of the following reasons.

a.            Misunderstanding (communication failure)

b.           Personal clashes

c.            Substandard performance

d.           Delegation of power

e.            Unfair labour policies in respect of promotion and transfer.

f.             Unjust dismissals and retrenchment         

Yusufu (1973) identified the cause of Bank crisis include the lackadaisical attitude of management to workers needs, aspiration and desire of workers.

Ubeku (1976) identified other major causes of industrial crisis in the banking industry in Nigeria to include Non-implementation of labour agreement and management’s poor attitude to workers needs.

This study tend to research into and review the problems of the crisis management, their causes, the re of occurrences, the effect in the overall productivity and efficiency and the likely ways of avoiding crisis, where and when possible and also to suggest better methods of crisis resolution.

1.2       Statement of Problem

Crisis management is at the core of the operation of the banking industry it account largely for the sadness of the industry. It represents the money spinning activity and the bank of the same organization. Thus the survival or failure of the industry depends. A critical examination of the financial statement of most banks in negative will be technically in solvent, if they were required to reserve interest on non-performing assets. In fact, some of the banks are already in serious problems.   

1.3    Research Questions

This project work tends to examine the major causes of crisis between management and the workers in the banking industry.

The major problem identified in this project work is as following.

1.       What are the major crisis between workers and workers between management and workers?

2        How does management react to crisis when they occur?

3.       Does all conflict lead to strike in the banking industry?

4.       Does all crisis affect the overall management of the bank and its subsequent effort in productivity and if so to what extent?

1.4    Objective of the Study

In the context, the researcher almost investigating into crisis management in the banking industry in business organization and its management action to minimize crisis.

Ecobank is used as a case study. The bank was examined with the view of reaching a conclusion on how crisis can be minimized or managed.

 

 

1.5    Statement of Hypotheses

Hypothesis one

Ho:    Crisis management does not enhance effective performance in the baking industry. .

HI:     Crisis management enhances effective performance in the banking industry.

Hypothesis 2

Ho:    Bank crisis does not have effects on the level of customer’s service.

HI:     Bank crisis have effect on the level of customer service.

 

1.6    Significance of the Study

1.       The significance of the study is to identify the major causes of crisis between workers and the management, the effect of such crisis

2.       In addition to help the management and workers to recognize the destructive nature of crisis carried too far, too long and also the positive and negative value in crisis.

3.       To educate the manager on what should be their attitude at such a time when there is interpersonal crisis so that they might use the best method of compromise with workers to enable them meet some degree of satisfaction.

4.       This project work will also help the managers in the banking industry to have effective control and co-ordination over their workers and subordinates which will eventually lead to maximum and efficient productivity.

5.       This work will be of immense value to students of management as it tends to provide a clue on how crisis can be managed in the banking industry.

 

1.7    Scope of the Study

The project work covers crisis management in the banking industry and its implication on customers, as they determine the existence of the
bank.

1.8    Limitation of Study

The limitation of this research work rest on the following.

a.       Fund Inadequacy: Fund inadequacy as the highest percent of occurrence amongst all other limitations. In a research of this kind, a large pool of resource is needed for a very thorough and detailed study to be carried out for example ECO-BANK, transportation and material expenses required to visit the bank almost every week. However, we had limited resources at our disposal.

b.       Time:  North Corte partisan theorizes that work expends to fill time available for its completion. A Corollary of this is that limited time made for the contraction be what to fit into available time.

This project work was carried out at the same time with other series academic activities force the research more time would have facilities a better research work.

Operation Altitude of Respondents

Some of the workers interviewed were very reluctant to giving out information sought from them probably to avoid being quoted. Ignorance of the purpose of this research may have also contributed to then refused by case, these constraints did not destroy the perment of this work.

1.9       Definition of Relevant Terms

Crisis: Crisis as defined by idiomatic and syntactic English dictionary means a turning point or better or worse, a time of great danger, difficulty and anxiety in politics, finance etc e g financial crises.

Crisis can be defined as a controversy or dispute between workers and workers, workers and management in order to open up an issue in which the end result may either be positive of negative, Thomas W.K (1976) saw crisis to include fighting between’ employers as a result of non-implementation of employment terms.

Compromising: This is the searching for solution that brings same degree of satisfaction to the conflicting parties.

Forcing: Exerting ones viewpoint at the potential expenses of another often-open competition and a win-lose situation.

Confrontation: Addressing a disagreement directly and in a problem solving mode the affected parties work through their disagreement.

Withdrawal: Retrenching from an actual or potential crisis situation.

Productivity: This is defined as the measurement of output of labour per hour during a production process.
Competing: This style of crisis is power oriented and approaches, crisis in terms of a win-lose strategy.

Avoiding: An avoiding style may appear to have’ no value as mode of managing crisis. An avoiding style reflects a failure to address important
issues and a tendency to remain natural when there is need to have a position.

Strike: Strike according to Trade Dispute (Emergency provision) decree, (1968) is a cessation of work and it includes deliberately working at less than usual efficiency.

Osagi (1994) saw strike as a concerted with folding of labour supply in order to bring economic pressure to bear upon the employer to cause him in granting employers demand.

Lock Out: This involves the short of a place of business by management in the cause of labour dispute with employers for the purpose of forcing workers to accept management terms of agreement.

Management of Agreement: The conditions of agreement already exist between the management and the workers. 


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