Moses Project

8/6/2019 Moses Project

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CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Human resources management is a distinctive approach to

employment management which seeks to achieve competitive

advantage through the strategic deployment of highly committed

and capable workforce, using an integrated array of cultural,

structural and personnel techniques (Storey, 1995). Human

resources management has become an important consideration for

all organizations in an age of global competition in which all large-

scale organizations must compete for resources whether they are in

the public or private sector or are non-governmental organizations.

Increasing assertiveness and visibility of customers in the delivery

of goods and services by these various organizations has also made

it even more essential to secure and manage human resources as

the most critical resource of any organization.

Effective organizational management, from an HR viewpoint,

focuses on openness in management between senior management

and employees, resulting in improved employee engagement and

productivity. In a cross-cultural environment, building and

maintaining rapport for business relationships depends on the

effective use of language and understanding differing management


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styles. These and other aspects are discussed to bring awareness to

opportunities to foster better management at all levels of the

organization.

Management needs a lot of tools to be able to administer effectively

in the day to day running of the business. Management by

objectives is one of such techniques. It is a way of getting improved

results in managerial action. Management by objectives can be

described as a managerial method where by the superior and the

subordinate managers in an organization identify major areas of

responsibility, in which they will work, set some standards for good

or bad performance and the measurement of results against those

standards Derek (2005:156).

Management by objective is also called Managing by Objectives by

the managers of an organizational success. However, there have

been certain individuals who have long placed emphasis on

management by objectives and by so doing have given impetus to

its development as a system. Management by objectives refers to a

structured management technique of setting goals for any

organizational unit to achieve its objectives and success in the

organization.


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Human Resources Management (HRM) is a strategic and

comprehensive management area that involves establishing

policies, practices and administrative structures that focus on an

organizations most valuable resource-its people that integrated

the use of systems, policies, and management practices to recruit,

maintains, and develops employees in order for the organization to

meet its desired goals. Effective human resource management

should help employees find meaningful work and provide them

with career satisfaction. It can also help an organization, program,

or facility to improve its level of performance and increase its

success.

George S. Odiorne (1981:1) in his book management by objectives

defined this concept as a system of management whereby the

superior and subordinate jointly identify objectives, define

individual ,major areas of responsibility in terms of results

expected, and use these objectives and expected results as guides

for operating the unit and assessing the contribution of each of its

member. Besides, Odiorne points out that management by

objectives is a system of management an overall frame work used

to guide the organizational unit and outline its direction. He went

further to point out that the superior and subordinate jointly

identify objectives. In other words, it is a participative


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management procedure that requires commitment and co-

operation. The definition deals with identifying the results that

are expected. Thus management by objectives concentrates on the

output of the organization evaluating people by assessing their

contribution to this output.

Management by objectives is a strategy where in the management

sets specific goals for the employees to accomplish within a fixed

time period. Management by objective is a dynamic system which

seeks to integrate the company a need to clarify and achieve its

profit and growth goals with the managers need to contribute and

develop him. It is a demanding and rewarding style of managing a

business.

Management by objectives can work in any size of organization if

the procedures are understood and managers are patient in letting

the system set in Oceanic. Management by objective is an effective

planning, control and development system.

Management by objective was defined by Koontz and ODonnell

(1968:485) as a technique or system or method of management

where by the superior and subordinate managers of an

organization agreed on its broad goals, translate these goals into a

chain of specific short term goals, defined each individuals major

areas of responsibility in terms of result expected, continually


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reviewed the accomplishment as the sole basis of assessing and

rewarding them.

Management by objectives gives the employee the opportunity to

participate in decision making, the limits within these limits. It

assumes that the employee has been properly selected and trained,

and is informed that the employee will be responsible for achieving

the desired results in the organization.

Organizations are ubiquitous. According to Mullins (2005:256),

organizations are designed by people to overcome individual

limitations and achieve individually. Hence, organization become a

means of survival for the people and exerts an important daily

influence on the life of the people and the way they live. The major

decider for the survival of any organization is the presence of

capable men and women with the right technique to combine the

organization resources (man, machine, materials and money) to

achieve organization goals.

It is appropriate to note that management of organization in

Nigeria lack sufficient techniques to make them manage

effectively. Some of these tools are not used and when used they

are not properly utilized. Management by objective is not only a

managerial strategy to achieve a well co-ordinate managerial goal,

but it is also a popular management technique that cut across or


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pervades all human activities namely business areas, educational,

government, health care and non profit organization.

Most of the techniques, system, tools of management are hardly

understood resulting in losses and damages to the organization.

Besides, it is the wrong use of technique and unwillingness of top

management to utilize the right tool to solve the management

problems.

It is on these trends that the researcher intends to find out the

prospect and problems of effective utilization of management by

objectives by organizations in Nigeria. In order to investigate some

of the above problems, one of the leading financial institutions in

the country, Oceanic Bank of Nigeria Plc Okere Road Warri, Delta

State has been chosen.

1.1 STATEMENT OF THE PROBLEM

It is pertinent to note that management of organizations in Nigeria.

Lack sufficient technique to make them manage well. Some of

these tools are not used and when used they are not properly

utilized. Management by objective if not only a managerial strategy

to achieve a well co-ordinate managerial goals, but it is also a

popular management technique that cut across or pervade all

human activities namely; business areas, educational, government,

health care and non-profit organization.


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Most of these objectives are hardly understood resulting in losses,

breakages and on so. The worse are business in the medium range

where most banks fall. Most organizations hand down objectives to

subordinates without adequate explanation, hence failure of

management by objectives in such cases. Management by

objectives will remove all of these problems mentioned above and

subordinates will now formulate objectives, set targets according to

their strength and weaknesses, no stoppages, no delays, no losses

to the organizations. This will help subordinates to formulate

realizable goals.

1.2 RESEARCH QUESTION

In pursuit of the research objective of the study, the following

research questions have been formulated.

What are the problems militating against effective utilization

of management by objective in an organization.

To what extent do both managers and employees participate

in the setting of goals to be achieved in the organizational

success?

To what extent are employees given appropriate authority

and responsibilities for effective management by objective?


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To what extent do motivation determines employees

performance towards achieving the objectives of the

organization.

1.3 OBJECTIVE OF THE STUDY

The broad objective of the study is to find out the prospects and

problems of strategies management to achieve organizational

success in Nigeria.

The specific objective of the study includes: -

To determine problems affecting the effective utilization of

management by objectives in an organization.

To determine the level of managers commitment to achieving

organizational objectives.

To find out the level of participation of both managers and

employees in the setting of goals to be achieved in the

organization.

To determine whether employees are given appropriate

authority and responsibility for achieving the set objective.

To recommend techniques for management for their staff

motivation.


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1.4 SIGNIFICANCE OF THE STUDY

Practicing management by objective will make the management of

Oceanic Bank of Nigeria to be move assertive in their decision

making. It will assist the subordinate in Oceanic Bank of Nigeria to

be able to identify themselves with the objectives of the company

and the role they will play.

It will assist subordinates to be able to formulate their individual

or group objectives, which are reliable. This will result in total

commitment to objective and efficiency and effectiveness will

result.

1.5 SCOPE AND LIMITATION OF THE STUDY

This research work is limited to some and how different

organization can be managed better by the managers setting the

goals and all the company members working towards achieving the

goals.

There are many factors that act as constraint to the effort of the

researcher in the course of writing this project. Most prominent of

the factors are:

a. TIME: The research work is a big task and as such

requires time and energy, which was not on the

researchers side.


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b. FINANCE: This is another limiting factor. Due to

limited financial resources available, the researcher

cannot procure all the needed material is for this

project. For instance, to get books from the library the

researcher has to pay library, which the researcher does

not have all the time.

c. COST: The cost of transportation to and from Oceanic Bank

of Nigeria Plc Effurun Sapele Road, Effurun Delta State very

high for the researcher.

d. SECRECY: Nigerians dislike activities that tend to

probe them. They tend to avoid researcher because

they feel their activities that are not meant for public

consumption would be exposed through research work.

1.6 DEFINITION OF TERMS

a) MBO: Management by objectives.

b) WAEC: West Africa Examination Council

c) SSCE: Senior Secondary Certificate Examination

d) OND: Ordinary National Diploma

e) B.Sc: Bachelor of Science.

f) PLC: Public Limited Company

g) OBN: Oceanic Bank of Nigeria


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1.8 ORGANIZATION OF THE STUDY

The research work will be made up of five chapters as follows:

CHAPTER ONE: This consists of the introduction, statement of

the problem, purpose of the study, research questions, research

hypothesis, significance of the study, limitations of the study,

organization of the study and definition of terms.

CHAPTER TWO: This section consists of reviews of relevant

literature of renowned authors in the field of this study.

CHAPTER THREE: This section entails the methodology

selected by the researcher of the study. It entails research design,

sample procedure, data collection, operational measure of the

variables, and data analysis technique.

CHAPTER FOUR: This consists of a vivid presentation and

analysis of data collected from relevant sources for the study.

CHAPTER FIVE: This is the last section of the work and it

consists of discussion, conclusion and recommendations made by

the researcher.


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REFERENCES

Koontz O. Donnel and weihrich (1980) Management New York:

McGraw Hill Book Company.

Mullins, L.J. (2005) Management and organizational Behaviour

London: Pitman Publishing Imprint.

Derek, Laura et al (2005) Human resource management London:

prentice Education Limited.

George S. Odiorne (1981) Strategic Management and

Management by objective New York: Delay Constancy

Services, INC.


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CHAPTER TWO

LITERATURE REVIEW

INTRODUCTION

Human Resource Management (HRM) provides an effective work

force in order to meet the goals of an organization.

Effective Human Resource Management by objective is traceable

to the period prior to the middle of this century but it was not until

1954 that it was well articulated and publicized by one of the

worlds leading management thinkers in the person of Peter

Drucker. Management by objective goes beyond setting annual

objectives for organizational units to setting performance goals for

individual employees (Stoner, 2000: 361). Management by

objectives has become a great deal of discussion, evaluation and

research and inspired many similar programs.

The effective human resources (HRM) management by objectives

refers to a formal set of procedures that begins with goal setting

and continues through performance review. Managers and those

they supervise act together to set common goals. Each persons

major areas of responsibility are clearly defined in terms of

measurable expected results or objectives, used by staff members

in planning their work, and by both staff members and their


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managers for monitoring progress. Performance appraisals are

conducted jointly on a continuing basis, with provisions for regular

periodic reviews.

The heart of management by objective is the objectives, which spell

out the individual actions needed to fulfill the units functional

strategy and annual objectives. Management by objectives provides

a way to integrate and focus the efforts of all organization members

on the goals of higher management and overall organizational

strategy.

Another key to management by objective is its insistence on the

active involvement of managers and staff members at every

organizational level. Drucker (1979:256) insisted that managers

and staff members sets their own objectives or at the very least, be

actively involved in the objective setting process. Otherwise people

might refuse to co-operate or make only half-hearted efforts to

implement someone elses objectives.

2.0. EXAMINING HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is the integrated use of

systems, policies, and management practices to recruit, maintain,

and goals. Effective human resources management should help

employees find meaningful work and provide them with career


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satisfaction. It can also help an organization, program or facility to

improve its level of performance and increase its success.

Achieving a high level of performance is essential for organizations

at a time when national governments are implementing health-

sector reforms, and non-governmental organizations (NGOs) are

striving to be more sustainable. These conditions increase the

pressure on organizations to use resources wisely and reduce the

size of the workforce. At the same time, clients are demanding that

health service providers improve the quality of their services.

A comprehensive human resource system provides managers with

a framework and tools to achieve higher levels of staff performance

and employee satisfaction on a sustainable basis. At the national

level, this involves developing health-sector strategies, policies,

and practices to ensure a workforce that is balanced in numbers of

staff, qualifications, and placement.

At the organizational level, which is the focus of this issue of The

Manager, HRM involves linking management and the development

of human resources to an organizations strategic plan, goals, and

objectives. Establishing these links is an essential management

strategy.


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Primary Functions of Organizational Management

In the management literature, researchers in the 20th century

highlight both theoretical and practical functions of management

in society. Historically, an early theoretical perspective that has

guided the dialogue about management is a technical theory often

attributed to Claude E. Shannon and Warren Weaver (1949). In his

role as an engineer at Bell Laboratories, Shannon viewed

management as a mechanistic system. This theory proposes that

management begins with an information source/ message, is

transmitted with a "noise" source and becomes a received message

upon reaching its destination. This early management theory is

still a valid view from which to discuss organizational

management. Another key theoretical perspective is that of the

contextual approach to management. This concept is broader than

an exchange of information or meaning. Rather, this aspect focuses

on both verbal content and nonverbal cues and considers cultural/

social contexts. Thus, writers and researchers of past decades set

the foundation for the study and practice of organizational

management in today's world.

In the world of work, the practical function of management is an

exchange of information, viewpoints and feedback. At die same

time, one of the key purposes of organizational management is to


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manage uncertainty and perceptions during organizational change.

A recent study examined die role of different sources of

management to address employee change-related uncertainty. The

findings revealed that employees prefer to hear from their direct

supervisors for implementation-related and job-relevant

information, with senior management providing updates on

strategy.

Ideally, employees should not feel uncomfortable or afraid to pose

questions, suggestions or concerns to management. Organizations

should ask themselves, "Can employees question the decisions of

management without fear of repercussion?" There are various

mechanisms that can be used to encourage feedback and

management from employees to senior management (bottom-to-

top), such as employee attitude surveys. Employees can also meet

with their supervisors to discuss any matters regularly or as

needed, and this process can be used as a means of upward

management.

On the other hand, it is important that senior management

communicate directly with employees, so that employees

understand the organization's business goals, policies and vision,

and arc appraised about what is going on in the organization. It


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can be particularly challenging for large organizations to keep me

lines of management clear and employees in the loop. Senior

management can reduce these potential obstacles by keeping

employees well-informed through companywide meetings and the

use of technology in top-to-bottom managements (e.g., CEO chat

rooms, intranet mechanisms and e-mails). Thus, effective

organizational management is a key issue where HR professionals

can provide guidance.

2.1 THEORETICAL FRAME WORK OF THE STUDY

Drucker (1979:255) began by identifying certain inherent

structural variable in the work environment that is capable of

misdirecting the efforts of management towards the realization of

corporate goals.

The sources of these are mentioned below:

a) Over-emphasis on workmanship vis-a-vis goal

attainment, so much that professional rivalry and

empire building may result.

b) Opposing views at various level of management arising

from differentials in their scope of jurisdiction and

pursues corporate goals.

Participation is an essential component of an effective

management by objective programs. Managers and employees


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should agree on objectives and should meet periodically to review

progress toward the objective. The objective set in the process of

management by objectives help provide a yardstick for appraisal,

compensation and control.

Once the objectives are agreed upon, every one knows what is

expected of him, thereby making appraisal and reward easy and

known what is more, it facilitates control of organizational

operations as deviations can be easily identified and corrections

made.

Sir Alfred Jones, predating the birth of the Nigerian nation,

acquired African Banking Corporation, established Oceanic Bank

of Nigeria Plc in 1894, head quartered in Lagos. Oceanic Bank has

international presence through its subsidiary Oceanic Bank (UK)

in London and Paris and its offices in Johannesburg and Beijing.

With about 1.3 million shareholders across several countries,

Oceanic Bank is quoted on the Nigeria stock exchange and has an

unlisted Global Depository Receipt (GDR) programme.

Drawing from experience that spans 115 years of dependable

service, the bank has continued to strength its relationships with

customers, consolidating alliances with key sectors that have been

strategic to the well being and growth of Nigeria. Oceanic Bank,

unarguably the countrys most diversified financial service group,


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serves more than 4.2 million customers through 536 locations in

Nigeria.

The bank provides a comprehensive range of retail and corporate

solutions and through its subsidiaries contributes to national

economic development in capital market operations.

The Business of Oceanic Bank Nigeria covers the whole value chain

in financial services specifically the group is organized into the

following line of business:

Retail and corporate Banking

Investment and capital market operation

Asset management and trusteeship

Mortgage Banking.

Insurance Brokerage

Micro-finance which provide financial service to the poor,

low income earners etc

Private equity and venture capital

The Oceanic Bank of Nigeria Plc mission statement is to remain

true to our name by providing the best financial services possible.

Its vision statement is to be the clear leader and Nigerias bank of

choice.


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OCEANIC BANK OF NIGERIA PLC ORGANISATION

CHART

Source: Oceanic Bank of Nigeria Plc, Annual report and Accounts

2009.

2.2 APPLICATION OF HUMAN RESOURCES

MANAGEMENT BY OBJECTIVE

To understand how management by objectives can be applied, it is

necessary to look at the parts of the process. Management by

objective can be divided in multiple steps in many combinations,

but three main one will be discussed: organization objective

Area Manager

Branch Manager

Head BranchOperations

Head OperationsSupport

Retail MarketingTeam

Customer servicesCash & TellerForeign Operations

Western Union

Accounts & ClearingAdminSystem Operator


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setting, manager objective setting and objective review. (Mullins

2005: 605).

Organization Objective Setting: Setting objectives is the most

difficult step in management by objective. Objective setting looks

beyond day-to-day activities to answer the question what are we

trying to accomplish? This step requires the top managers of an

organization to review the purpose for which the organization

exists. In the military, this may require the view of the mission

statement and a discussion of its meaning. This is an important

requirement, for periodic review re-emphasizes the continuing

need for the existence of the organization. With this mission in

mind, the commander or supervisor and his staff must then set

organizational objectives in areas where the unit will concentrate

its efforts during the approaching objective setting period. These

objectives are:

1) To provide direction to the entire organization and

2) To provide guidelines for subordinate-level managers

to formulate their objective.

As a result of this organizational objective setting step, Air Force

managers showed realize that a mission statement is a goal that

defines the continuing purpose of an organization. That mission

statement, however, does not define specific methods of


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accomplishing the goal stated. Management by objectives helps

formulate these specific methods that are necessary to accomplish

the mission.

Manager Objective Setting: Each individual manager in the

organization must now determine the objectives for his business.

This procedure takes place in three general steps: identifying key

result areas, writing objectives, and negotiating with the boss.

Oceanic the manager must identify the key result areas of

responsibility that are assigned to this unit. In other words, just as

the commander reviewed the whole organization in order to set

organization objective, the manager reviews his part of the

organization in order to set his objectives. It is important for the

individual business manager to identify the areas of his unit where

most of the results are obtained. He will usually find that 20

percent of his area of responsibility will produce 80 percent of his

results. It is important that he identify and zero in on these key

result areas for management by objective to be effective.

After a manager has identified his key areas of responsibility, he is

ready to sit down and write his objectives. The main criteria that he

should remember in writing objectives are that they should be

specific, measurable, realistic, and result oriented. They should be

specific in that there can be no confusion about what is expected.


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They must be measurable for later accountability. They must be

realistic but still challenging. The objectives should be result

oriented, concentrating on the output of the organization and not

on its internal activities or procedures.

After the managers objectives have been written, he enters the

participative management phase of this technique. The

subordinate manager sits down with his boss and they agree on the

subordinates objective. This requires a realistic commitment on

the part of both individuals. The agreement on the objective

signifies the approval of the expected results (output) required of

the subordinate. Progress toward these results can now be pursued

by the subordinate until the requirement is reached or the goal is

changed.

Objective Review - After the setting of objectives has been

agreed upon by the subordinates, manager and his boss, the stage

is set for managing by these objectives. This managing process is

responsibility of the subordinate manager, and it is interrupted

only by mutually arranged, formal review sessions with the

commander. In other words, management by objective requires

that each individual have the freedom to perform a well-defined

task without interference.


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There are two types of objective reviews intermediate and final.

The purpose of the intermediate review is to determine progress

and identify problems that stand in the way of accomplishing

objectives. Most problems are not for seeable at the time objectives

are written; they appear only when action is taken to accomplish

the objectives. The result of this intermediate session should be

either to agree on a plan that resolves the blockage of objective

accomplishment or change the objectives.

The final review is to determine objective accomplishment. In this

session the subordinates objectives are reviewed for the entire

period. In addition, the session concentrates on the renewal of the

objective- setting cycle by establishing a basis from which to plan

the objectives for the next period. The superior gains an additional

benefit from this session since it provides him with input on which

to evaluate the subordinates performance. If the focus of the

session is on the objectives and it does not break down into

personal recrimination of the individual, then the review will be

true appraisal of performance, not personality.


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2.2. HISTORY AND GROWTH OF HUMAN RESOURCE

MANAGEMENT

Key principles and practices associated with HRM date back to the

beginning of mankind. Mechanisms were developed for the

selection of tribal leaders, for example, and knowledge was

recorded and passed on to youth about safety, health, hunting, and

gathering. More advanced HRM functions were developed as early

as 1000 and 2000 B.C. Employee screening tests have been traced

back to 1115 B.C. in China, for instance. And the earliest form of

industrial education, the apprentice system, was started in ancient

Greek and Babylonian civilizations before gaining prominence

during medieval times.

The need for an organized form of HRM emerged during the

industrial revolution, as the manufacturing process evolved from a

cottage system to factory production. As the United States shifted

from an agricultural economy to an industrial economy,

organizations were forced to develop and implement effective ways

of recruiting and keeping skilled workers. In addition,

industrialization helped spur immigration, as the country opened

its borders to fill industrial positions. Filling these jobs with


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immigrants, however, created an even greater need for adequate

management of employees.

Between the 1880s and the 1940s, immigration rose significantly

and remained robust until World War II. Advertisements

circulated throughout the world depicting the United States as the

land of opportunity where good-paying industrial jobs were

plentiful. As a result, the country had a steady stream of low-skill,

low-cost immigrant workers who occupied manufacturing,

construction, and machinery operation positions. Even though

these employees performed largely routine tasks, managers faced

serious obstacles when trying to manage them since they spoke

different languages.

Early human resource management techniques included social

welfare approaches aimed at helping immigrants adjust to their

jobs and to life in the United States. These programs assisted

immigrants in learning English and obtaining housing and medical

care. In addition, these techniques promoted supervisory training

in order to increase productivity.

While some organizations paid attention to the "human" side of

employment, however, others did not. Therefore, other factors

such as hazardous working conditions and pressure from labor
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unions also increased the importance of effective management of

human resources. Along with the manufacturing efficiencies

brought about by industrialization came several shortcomings

related to working conditions. These problems included:

hazardous tasks, long hours, and unhealthy work environments.

The direct cause of employers seeking better HRM programs was

not poor working conditions, but rather the protests and pressures

generated by workers and organized labor unions. Indeed, labor

unions, which had existed as early as 1790 in the United States,

became much more powerful during the late 1800s and early

1900s.

There were two other particularly important contributing factors to

the origination of modem HRM during that period. The first was

the industrial welfare movement, which represented a shift in the

way that managers viewed employeesfrom nonhuman resources

to human beings. That movement resulted in the creation of

medical care and educational facilities. The second factor was

Frederick W. Taylor's (1856-1915) Scientific Management, a

landmark book that outlined management methods for attaining

greater productivity from low-level production workers.
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The first corporate employment department designed to address

employee concerns was created by the B.F. Goodrich Company in

1900. In 1902 National Cash Register formed a similar department

to handle worker grievances, wage administration, record keeping,

and many other functions that would later be relegated to HRM

departments at most large U.S. organizations.

HRM as a professional discipline was especially bolstered by the

passage of the Wagner Act in 1935 (also known as the National

Labor Relations Act), which remained the basic U.S. labor law

through the 1990s. It augmented the power of labor unions and

increased the role and importance of personnel managers.

During the 1930s and 1940s the general focus of HRM changed

from a focus on worker efficiency and skills to employee

satisfaction. That shift became especially pronounced after World

War II, when a shortage of skilled labor forced organizations to pay

more attention to workers' needs. Employers, influenced by the

famous Hawthorne productivity studies and similar research,

began to emphasize personal development and improved working

conditions as a means of motivating employees.

In the 1960s and 1970s the federal government furthered the HRM

movement with a battery of regulations created to enforce fair


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treatment of workers, such as the Equal Pay Act of 1963, the Civil

Rights Act of 1964, the Employee Retirement Income Security Act

of 1974 (ERISA), and the Occupational Safety and Health Act of

1970. Because of these acts, organizations began placing greater

emphasis on HRM in order to avoid lawsuits for violating this

legislation. These regulations created an entirely new legal role for

HRM professionals. Furthermore, during the 1970s, HRM gained

status as a recognized profession with the advent of human

resource programs in colleges.

By the end of the 1970s, virtually all medium-sized and large

organizations and institutions had some type of HRM program in

place to handle recruitment, training, regulatory compliance,

dismissal, and other related issues. HRM's importance continued

to grow during the 1980s for several reasons. Changing workforce

values, for example, required the skills of HRM professionals to

adapt organizational structures to a new generation of workers

with different attitudes about authority and conformity. Shifting

demographics forced changes in the way workers were hired, fired,

and managed. Other factors contributing to the importance of

HRM during the 1980s and 1990s were increasing education

levels, growth of service and white-collar jobs, corporate

restructuring(including reductions in middle management), more
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women in the workforce, slower domestic market growth, greater

international competition, and new federal and state regulations.

2.3. HRM IMPLEMENTATION ACTIVITIES

To fulfill their basic role and achieve their goals, HRM

professionals and departments engage in a variety of activities in

order to execute their human resource plans. HRM

implementation activities fall into four functional groups, each of

which includes related legal responsibilities: acquisition,

development, compensation, and maintenance.

Acquisition

Acquisition duties consist of human resource planning for

employees, which includes activities related to analyzing

employment needs, determining the necessary skills for positions,

identifying job and industry trends, and forecasting future

employment levels and skill requirements. These tasks may be

accomplished using such tools and techniques as questionnaires,

interviews, statistical analysis, building skill inventories, and

designing career path charts. Four specific goals of effective human

resource planning are:

1. Sustaining stable workforce levels during ups and downs in

output can reduce unnecessary employment costs, liabilities
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and increase employee morale that would otherwise suffer in

the event of lay-offs.

2. Preventing a high turnover rate among younger recruits.

3. Reducing problems associated with replacing key decision

makers in the event of an unexpected absence.

4. Making it possible for financial resource managers to

efficiently plan departmental budgets.

The acquisition function also encompasses activities related to

recruiting workers, such as designing evaluation tests and

interview methods. Ideally, the chief goal is to hire the most-

qualified candidates without encroaching on federal regulations or

allowing decision makers to be influenced by unrelated

stereotypes. HRM departments at some organizations may choose

to administer honesty or personality tests, or to test potential

candidates for drug use. Recruitment responsibilities also include

ensuring that the people in the organization are honest and adhere

to strict government regulations pertaining to discrimination and

privacy. To that end, human resource managers establish and

document detailed recruiting and hiring procedures that protect

applicants and diminish the risk of lawsuits.
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Development

The second major HRM function, human resource development,

refers to performance appraisal and training activities. The basic

goal of appraisal is to provide feedback to employees concerning

their performance. This feedback allows them to evaluate the

appropriateness of their behavior in the eyes of their coworkers

and managers, correct weaknesses, and improve their

contribution. HRM professionals must devise uniform appraisal

standards, develop review techniques, train managers to

administer the appraisals, and then evaluate and follow up on the

effectiveness of performance reviews. They must also tie the

appraisal process into compensation and incentive strategies, and

work to ensure that federal regulations are observed.

Training and development activities include the determination,

design, execution, and analysis of educational programs.

Orientation programs, for example, are usually necessary to a

climate new hires to the company. The HRM training and

education role may encompass a wide variety of tasks, depending

on the type and extent of different programs. In any case, the HRM

professional ideally is aware of the fundamentals of learning and

motivation, and must carefully design effective training and


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development programs that benefit the overall organization as well

as the individual. Training initiatives may include apprenticeship,

internship,job rotation, mentoring, and new skills programs.

Compensation

Compensation, the third major HRM function, refers to HRM

duties related to paying employees and providing incentives for

them. HRM professionals are typically charged with developing

wage and salary systems that accomplish specific organizational

objectives, such as employee retention, quality, satisfaction, and

motivation. Ultimately, their aim is to establish wage and salary

levels that maximize the company's investment in relation to its

goals. This is often successfully accomplished with performance

based incentives. In particular, HRM managers must learn how to

create compensation equity within the organization that doesn't

hamper morale and that provides sufficient financial motivation.

Besides financial compensation and fringe benefits, effective HRM

managers also design programs that reward employees by meeting

their emotional needs, such as recognition for good work.

Maintenance

The fourth principal HRM function, maintenance of human

resources, encompasses HRM activities related to employee


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benefits, safety and health, and worker-management relations.

Employee benefits are non-incentive-oriented compensation, such

as health insurance and free parking, and are often used to transfer

no taxed compensation to employees. The three major categories

of benefits managed by HRM managers are: employee services,

such as purchasing plans, recreational activities, and legal services;

vacations, holidays, and other allowed absences; and insurance,

retirement, and health benefits. To successfully administer a

benefits program, HRM professionals need to understand tax

incentives, retirement investment plans, and purchasing power

derived from a large base of employees.

Human resource maintenance activities related to safety and

health usually entail compliance with federal laws that protect

employees from hazards in the workplace. Regulations emanate

from the federal Occupational Safety and Health Administration,

for instance, and from state workers' compensation and federal

Environmental Protection Agency laws. HRM managers must work

to minimize the company's exposure to risk by implementing

preventive safety and training programs. They are also typically

charged with designing detailed procedures to document and

handle injuries.


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Maintenance tasks related to worker-management relations

primarily entail: working with labor unions, handling grievances

related to misconduct such as theft or sexual harassment, and

devising systems to foster cooperation. Activities in this arena

include contract negotiation, developing policies to accept and

handle worker grievances, and administering programs to enhance

communication and cooperation.

2.4. PERFORMANCE OF MANAGEMENT AND

ORGANIZATIONAL SUCCESS

Performance management goes far beyond merely ensuring that

employees understand day-to-day tasks. It affects pay, strategy,

and the company's long-term success. An outgrowth of the human

resource function, performance management is generally within

the scope of managers, and can be a critical factor in a company's

success.

Human resource management is a critical function within an

organization, and one that is concerned with five main areas:

staffing, development, employment relations, compensation and

evaluation (Mondy, Noel & Premeaux).
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Human resource planning is thus concerned with the effective and

efficient use of human resources within an organization, more

satisfied and more developed employees, and more effective equal

employment opportunity planning. Its direct relationship to the

employment process is determining what types of employees are

needed, how many of those employees are needed and the best way

to find those employees for the organization. Once employees have

been hired, effective human resource managers ensure that

employees and their supervisors have appropriate training in the

evaluation process so that the organization receives the maximum

benefit from employees and the employees enjoy a high level of

morale, resulting in increased productivity (Hernan 94).

2.5. TWO MAJOR SCHOOL OF THOUGHT

There are two major schools of thought on how effective human

resources management by objective should be implemented in an

organization, although there is an agreement on its usefulness.

The Oceanic school of thought, who follows the Drucker analysis,

looks at management by objective as an administrative planning

tool. The second school of thought, who follows the McGregor

emphasis, views management by objective as a method of

employee participation, development, and supervision. The

Drucker School bases their appropriate goals in light of the


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demands of its client and the needs of a changing world. The

McGregor School views the implementation of management by

objective as a way to provide participation, direction and

motivation to employees. There reasons include providing for

improvement in supervision.

An effective human resources management by objective is a

systematic approach to management planning and supervision

that establishes common goals and objectives that must be

achieved and gives the authority and responsibility for achieving

the objectives to those who must do the work.

The two major interpretations of management are the human

relations and the systems orientations are at least three subsets:

management by objectives as a result- oriented administers,

administers development approach and unique sensitivity training

program.

The systems-oriented conceptualization of management by

objectives does not neglect the human relations interpretation,

but sees this as only one compound incomplete organization. The

entire organization is perceived as being a goal- seeking

mechanism. It is important that all such out comes be identified,

classified and expressed in measurable terms. Management by


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objectives becomes the main device in the overall planning and

control of all dimensions of the organization.

The relevance, clarity, measurability and feasibility of the

statement of objectives are all important to such management

systems. It is not only top management that operates in this mode,

but also the commitment extends to all administrative levels, from

organization goals to division objectives to operational objectives

to performance objectives down to the very specifically targeted

objectives where the detail work must be accomplished.

The human resources (HRM) management by objectives is a

participative management style. The manner in which objectives

are arrived at can be as important as their quality and reliance.

Objectives can and should be jointly determined with full

participation from all administrators and other appropriate

professional personnel at all levels in the hierarchy.

2.6. EFFECTIVE MANAGEMENT BY OBJECTIVES AND

RESULTS MODEL

The general systems mode for management by objectives and

results is as follows: Drucker (1979:260)

1. Define organizational goals

2. Identify performance indicators and standards (for goal)


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3. Set division objectives consistent with goals.

4. Identify performance indicators and set standard (for

objectives)

5. Define operational objectives for units or individuals set

performance indicators and standards

6. Performance objectives A: Performance objectives B.

7. Assess feasibility of performance objectives (time)

8. Determine alternative strategies for performance objectives.

9. Analyze feasibility of strategy.

10. Select operational strategy

11. Refine work plans and tasks.

12. Design results management subsystems.

13. Monitor operations

14. Evaluate performance and audit results.

15. Recycling: Redefine goals, objectives, performance indicators

and standards, assignments, alternatives, strategies and

results management.

It can be seen that neither goals nor objectives are set once and

then never modified or changes to any degree. Objectives are

subjective to the test of feasibility. If not feasible in terms of times,

money, personnel available or other factors. Further more another

test of feasibility comes to play when the strategic or alternatives


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for realizing objectives must be generated. If there is no know

realistic way to complete an objective given the existing state of the

act, the once more there is recycling to generate the kind of

objective that has a high probability of accomplishment.

The traditional systems of performance appraisal require

managers to set objectives for their subordinates and evaluate their

ability in accomplishing them. In other words, standards of

performance are unilaterally set by superiors. Such appraisal

system does not encourage subordinates participation in taking

decision on those organizations issues that affect them, the

traditional systems or performance appraisal therefore give

employees little or no sense of commitment and belonging.

Effective Management by objectives gives the employee the

objective of what to be done, the decision making data needed, the

limits within which to operate, and the freedom to operate within

these limits. Effective Management by objectives assumes that the

employee has been properly selected and trained, and is informed

that he or she cone be responsible for achieving the desired result.

From the foregoing therefore, management by objective is

participative management.


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2.7. PSYCHOLOGICAL BACKGROUND OF AN EFFECTIVE

HUMAN RESOURCES MANAGEMENT BY OBJECTIVES

In order to understand clearly and benefit significantly from

management by objectives, all subordinates or employees included

in the program should understand the psychological principles

upon which it is based. It becomes essential, when introducing

management by objectives into a company, to give a training

course to explain mallows hierarchy of needs, Herzbergs theory of

motivational hygiene, and Douglas Mcgregors assumptions of

theory x and y. To be included in such a discussion are the merits

of the problem solving appraisal interview. All these will emphasize

the virtues of employees level of participation in objective

formulation and the increase in job satisfaction, which occurs

when the employee feels a sense of belonging, achievement and

involvement. If management by objectives is not approached with

this spirit, it easily and merely becomes another method of

controlling the subordinates.

2.8. STEPS OF MANAGEMENT BY OBJECTIVES PROCESS

Management by objective is in effect a joint process of objectives

setting and a joint appraisal or review of achievement or non-

achievement by an executive or manager and his subordinate.


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The detains of the process are as follows: Riggs J.L et al

(1980:502).

a) Clarification and review of the companys objectives by

the top management of the organization. This implies

that the objective might have been set in general terms

perhaps by the board of directors. Then the top

management must understand clearly what the

objectives may be.

b) Further clarification at the departmental level. This

involves getting each department to know exactly what

is expected to contribute towards the achievement of

the corporate objective. This is necessary so as to

maintain consistency between the departments and the

entire organizational objectives.

c) The manager or supervisor who is equally involved in

the process will interview the subordinate or employee

to discuss and clarify the purpose of the subordinates

job, the key re-suit he must achieve, and the

performance standard expected of him to reach.

d) Both of them the manager and the subordinate will

jointly agree on the action plan that the subordinate


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must follow in trying to reach the goal already set in (c)

above.

e) The manager evolves a plan for control information to

flow to him to enable him monitor the performance of

the subordinate with reference to the agreed objectives.

To do this effectively a review period must be set. E.g.

three or six months, etc.

f) At the end of the review period set in (e) above both of

them will meet again to discuss in a problem-solving

manner and examine to what extent the subordinate is

achieving his objective.

g) The manager will advise the subordinate on how to

build on the strengths revealed in part (f) above, and

how to circumvent and overcome the weaknesses if

any.

h) On the basis of what has been achieved so far, the key

results, action plan, and performance standards will be

agreed upon for the forthcoming period.

The above explained steps can equally be illustrated

diagrammatically.


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THE PATH OF (HRMBO) STEPS

Source: Riggs J.L. et al (1980:502).

From the diagram it can be seen that management by objectives

shows a feed back process that requires the definition of corporate

objectives from which are derived unit or departmental objectives.

The next stage is the discussion and agreement of individual

subordinates key result areas, objectives and action plans. This is

followed by review of subordinate, departmental and corporate

objectives.

Corporate Objectives

Review of corporatePerformance

Unit / DepartmentalObjectives

Review of Unit /Departmental Performance

Subordinate PreparesObjectives

Manager Setsdown Objective

Review of Unit /Departmental Performance

Subordinate and Manageragree on Objective.


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Management by Objectives Objective Setting

Setting objectives is the most difficult step in MBO. Objective

setting looks beyond day-to-day activities to answer the question

what are we trying to accomplish? objective setting involves

employees at all levels. Top managers set overall corporate

objectives that define priorities for middle managers. Middle

managers define objectives for the departments and divisions for

which they are responsible. Corporate and departmental objectives

are used to set objectives for individual employees.

Objectives may be both quantitative and qualitative depending on

whether outcomes are measurable. Quantitative goals typically are

described in numerical terms, such as obtain 16 new sales

account, Hire 3 new financial analysis, or Increase the

occupancy rate to 80 percent. Qualitative objectives use terms

such as improve customer service, file report promptly, and

increase minority hiring. The qualitative statements must be

sufficiently precise to permit realistic appraisal and evaluation.

EZE J.A (2002:298)

Developing Action Plans: An action plan defines the action needed

to achieve the stated objective. Action plans are made for both

individuals and for departments. A department may undertake an

entirely new work activity because of a new corporate objective.


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If a university decides to raise 5 million in donations, the college of

arts and sciences will have to start fund raising activities. The

action plan would define exactly how fund raising should be

performed to achieve the objectives. Likewise, each employee must

develop and action plan for achieving his or her personal

objectives. Of a marketing manager is given the objective of

increasing the sales volume by 6 percent, the following action plan

might be undertake:

1) Start a sales discount program for high-volume buyers;

2) Work with sales people to increase sales performance

by 5 percent.

3) Seek a 10 percent increase in the advertising budget

and

4) Hire one additional sales person.

Reviewing progress: A periodic review is important to insure

that action plans are working. This review can occur in formally

between managers and the subordinates, or the organization may

wish to conduct three, six, and nine. Month reviews during the

year. This periodic check up allows managers and employees to see

whether they are on target and whether corrective action is

necessary. If the sales manager finds that quantity discounts are

having no impact on sales, that idea may be dropped and the


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resources transferred to advertising. Managers and employees

should not be locked into predefine behaviour and must be willing

to undertake whatever actions are necessary to produce

meaningful results. The point of MBO is to achieve objectives. The

action plan can be change whenever objectives are not being met.

Appraising overall performance:The final step is MBO is to

evaluate whether annual objectives have been achieved for both

individuals and departments. This appraisal carefully evaluates

whether 16 new sales account were obtained, 3 new financial

analysts were hired, or the organization achieved 80 percent

occupancy rate. Qualitative objectives, such as filling reports in a

timely fashion or increasing minority hiring, also are carefully

appraised success or failure to achieve objectives can become part

of performance appraisal system and the designation of salary

increases and other rewards. The appraisal or departmental and

overall corporate performance shapes objectives for the next year.

The management by objective cycle repeats itself on an annual

basis. The specific application of MBO must fit the needs of each

company.

Management by Objectives Characteristics

Management by objectives starts with the development of overall

goals, which are parceled through the organization in a top-down


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sequence until middle managers and other employees have been

assigned some portion of these objectives as their own. The

hierarchy of objectives can be developed through a systematic

MBO-type system. Each organization can modify MBO to suit its

own needs, but most systems involve the following steps:

1) Overall goals for the organization are established.

2) Major objectives are parceled among department and

managers in a hierarchical fashion and specific objectives in

a collaborative manner.

3) Action plans for achieving those objectives are specified

and agreed upon by managers and subordinates.

4) The action plans are carried out.

5) Progress toward achieving objectives is periodically

reviewed.

6) Overall performance is appraised at the end of a

specified time period generally one year and new goals are

established.

A special advantage of the MBO system is that subordinates are

given the latitude to determine how to achieve their objectives.

Thus, even if goals are established in a top down fashion,

employees have discretion in determining the work behaviours


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needed to reach those goals, freeing them to use their skills and

creativity.

Strengths and weaknesses of MBO system

The key strengths of MBO area followings: Koontz and Co

(1976: 452)

1) It focuses employees on desired results.

2) It facilities communication between managers and

subordinates regarding goals and action plans.

3) Job satisfaction is increased.

4) Allowing individual discretion in achieving goals,

enhance as their growth.

5) Both quality and quantity or performance seems to

improve.

6) It provides a vertical linkage between top and lower

level goals.

However, management by objective systems sometimes has

drawbacks. One is a large amount of paperwork and record

keeping. If goal setting becomes detailed and extensive, managers

may want to assign goals to subordinates rather than collaborate

and employees may wish to set minimal objectives that they can

easily exceed. Moreover, in a large organization MBO system may

stress the paperwork needed to turn in a completed set of goals but


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after few monetary or other rewards, there by discouraging people

from achieving goals.

The value of a management by objectives type system is illustrated

by the California State agency responsible for helping people.

Assessing MBO Effectiveness

Research findings have reported no dramatic increases in

performance by organizations that use management by objectives.

However, many organizations have adopted management by

objectives and most managers feel that MBO is effective. Managers

believe they are better oriented towards goal achievement when

MBO is use. Like any system, MBO has many benefits when use

properly and is associated with management problems when used

properly.

2.9. IMPORTANCE OF MBO IN FINANCIAL INSTITUTIONS

Major benefits to organizations that use MBO include the

following: Mullins (2005:608)

1) Corporate objectives are achieved by focusing manager

and employee efforts on specific activities that will lead to

their attainment.


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2) Performance can be improved at all company levels

because employees are committed to attaining objectives.

3) Employees are motivated because they know what is

expected and are free to be resourceful in accomplishing

their objective.

4) Departmental and individual objectives are aligned

with company objectives. Objectives at lower levels enable

the attainment of objectives at top management levels.

5) Relationships between managers and subordinates are

improved by having explicit discussions about objectives,

defining activities that will help achieve them and assigning

responsibility.

6) The involvement of employees in setting objectives

gives them psychological satisfaction and ultimately gingers

them to be more committed to achieving the objectives which

they take part in setting than the ones imposed on them

(increased motivation).

7) It helps in the identification of training needs. The

periodic review of performance may highlight inadequacies

or lag in subordinates performance so that appropriate

training programs are designed to help him acquire the

relevant skills for thorough job performance.


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8) The periodic superior subordinate discussion may

highlight or reveal abnormalities in the organizations

structures from corrective measures to be taken.

9) The periodic discussion between the superior and the

subordinate faster mutual understanding of each other. It

therefore helps them to work harmoniously and

cooperatively towards the attainment of the corporate goal.

10) Better identification of training of training needs. Many

managers at times make serious mistakes by sending their

subordinate for training courses just for the sake of training

without knowing the type of training needed by the

subordinates and which will be of benefit to the company.

11) It helps to develop effective control: In the some way

that managing by objectives sparks more effective planning,

it also aids in developing effective controls. Control, it will be

recalled, is measuring activities and to assure desired

accomplishment. One of the major problems knows what to

watch. A clear set of verifiable goals is the best guide to

knowing.

2.10. WEAKNESSES IN MANAGING BY OBJECTIVES

With all its advantages, a system of managing by objectives has a

number of weakness and shortcomings some are found in a


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system. Others are due to shortcomings in applying it. Here are

some formulated by Koontz and Co. (1979:454).

1) Failure to teach the philosophy: As simple as

managing by objectives may seem, there is much to be

understood and appreciated by managers who would put it

into practice. This requires patient explanation of the entire

program, what it is, how it works, why it is being done, what

part it will play in appraising managerial performance, and

above all, how participants can benefit.

2) Failure to give setters guidelines: Managing by

objectives, like any other kind of planning, cannot work if

those who are expected to set goals are not given needed

guidelines. Managers must know what corporate goals are

and how their activity fits in with them. If corporate goals are

vague, unreal or inconsistent, it is virtually impossible for

managers to tune in on them.

3) Goals are difficult to set: It should not be

overlooked that truly verifiable goals are difficult to set,

particularly if they are to have the right degree to stretch or

pull, quarter in and quarter out, year in and year out. This

may not be much more difficult than any kind of effective

planning, although it will probably take more study and work


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to establish verifiable objectives that are formidable but

attainable than to develop most plans, most of which tend

only to lay out work to be done.

4) Goals Tends to be Short-Run: In almost all

systems of operating under management by objectives, goals

are set for the short term, seldom for more than a year, and

often for a quarter or less. There is clearly the danger of

emphasizing the short run, perhaps at the expense of the

longer range. This means, of course, that superior must

always assure themselves that current objectives, like any

other short-run plan, are designed to serve long-range goals.

5) Failure to ensure network of Goals: In the

obsession to set goals, there is ever the danger that one

persons objectives may be inconsistent with those of

another. The production managers goals for low cost might

be non supportive to the marketing managers goal of

product availability or quality, of the financial managers of

low inventory. An enterprise is a system. If goals, like all

other plans, are not interconnected and mutually supportive,

people will tend to pursue path that seem best for their own

operations but may be detrimental to the company as a

whole.


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6) Setting Arbitrary Goals: One of the sure causes of

failure is for the boss to set arbitrary goals for subordinates.

While superiors must take final authority for approving the

objectives of those who report to them, if they force goals on

subordinates, they will destroy the feeding of commitment on

the part of those who must achieve them. As a matter of fact,

arbitrary and pressured goals represent one of the major

causes of complaint expressed by managers, particularly at

the middle and lower levels. The superior who does it is

deprived of the intelligence, experience and often the know-

how of problem solution that subordinates almost always

have. Experience with cooperative goal setting sessions has

led most of us to have considerable respect for the useful

knowledge that often lies at lower levels in an organization.

2.11. DANGERS AND PRECAUTIONS OF MANAGEMENT BY

OBJECTIVES

Although managing by objectives has been very successful in some

organizations, leading to increase in profit, yet it still has some pit

falls as has been proven by experience. KOONTZ et al (1976:456)

There is always the danger in a system of managing by objective

that, once objectives are agreed upon, the superior will not


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adequately monitor progress toward goal accomplishment. one of

the major advantages of using objectives is that a person has a

charter for accomplishment, the appropriate resources and

discretion are allocated and any subordinate can be given a high

degree of freedom to work toward goal achievement. One would

not expect a superior to meddle or constantly took over a

subordinates shoulder. By the same token, however, a superior

should not sit back and assume that everything is going well and

not check on progress until the date of goal achievement is due.

Superiors as well as subordinate should have regular information

available to them as to how well a subordinates goal performance

is progressing. Superiors goal performance is progressing.

Superiors should regularly review progress through this

information and through personal consultation and should make

them available for counseling to help subordinates in meeting

goals. This is not, and should not be taking over tasks from

subordinates; it is merely following through with the job of

manager. Most subordinates will welcome follow-up, counseling,

and assistance with their problems and aid in removing

obstructions to their successful performance.

Management by objectives is a process by which the members of a

work unit individually meet with their supervisors to establish


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performance related goals. Each member with the assistance and

guidance of his supervisor, defines his area of responsibility

evaluates, the current handling of these duties, Set objectives for

improved results, develop a plan of action to achieve the objectives,

implement this action plan, and periodically hold performance

review.

Management by objective planning process in a nutshell involves

determination and specification of objectives by superior and

subordinate managers, periodic discussion or subordinates

activities (Obstacles encountered and opportunities existing /

anticipated) and tutorial on how to channel efforts for optimal

performance.

2.12. ELEMENTS OF THE MANAGEMENT BY OBJECTIVE

SYSTEM.

Stoner (2000:363) listed out the following six elements of

management by objective system: -

1) Commitment to the Program: At every

organizational level, managers commitment to achieving

personal and organizational objectives and to the


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management by objectives process is required for an effective

program.

2) Top-Level Goal Setting: Effective management by

objective programs usually start with the top managers, who

determine the organizations strategy and set preliminary

goals that resemble annual objecting in their content and

terms.

3) Individual Goals: In an effective management by

objective program, each manager and staff members has

clearly defined job responsibilities and objectives. The

purpose of setting objective in specific terms at every level is

to help employee understand clearly just what they are

expected to accomplish and to help each individual plan

effectively to achieve his or her targeted goals.

4) Participation: As a general rule, the greater the

participation of both managers and employees in the setting

of goals, the more likely the goals will be achieved. One of the

hallmarks of successful quality management programs is the

joint participation in setting goals.

5) Autonomy in Implementation of Plans: One the

objectives have been agreed upon the individual enjoys wide


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discretion in choosing the means for achieving them, without

being second-guessed by higherranking manager.

6) Performance Review: Managers and employees

periodically meet to review progress towards the objective.

REFERENCE

Drucker .P. (1979) The practice of management, London,

Heinemann Publishers.

Drucker .P. (1974), An Introductory view of management, New

York, Harpers College Press.

Koontz et al (1976), Management Tokyo, MC. Graw Hill.

Stoner J. A. et al (2000), Management, New Delhi, Prentice Hall.

Riggs .J. L. ET al (1980), Industrial Organisation and

management, Manila, Cacho Hermanos, INC.

Oceanic Bank of Nigeria Plc, Annual Report and Accounts, 2009.

Laurie J. Mullins (2005) Management and organizational

Behaviour Seventh edition P.C.M.

EZE J.A (2002) Business policy and strategic management issues

and trends, Enugu. Kinsman publishers.


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CHAPTER THREE

3.0. RESEARCH DESIGN AND METHODOLOGY

3.1 RESEARCH DESIGN

This chapter deals with the design and methodology employed for

the research. Essentially describes the research design, population

and sample size determination, sources of data, questionnaire

design and administration.

A design is generally referred to as a formulated framework, as a

plan of action which as given piece of work is expected to follow. A

research design is therefore a plan for a research work, which aims

at providing guidelines, which the research work is being

conducted.

Most especially, the sensitive nature of the topic contributed to

basis for the formulation of the research design. The study has a

descriptive survey research design.

The method of questionnaire and interview are used in data

collection. Data are presented in tables and a descriptive method is

adopted in analysis. As Nwana (1981:19) puts it, the research

design is a term used to describe a number of decisions which need

to be taken regarding the collections of data before every data are

collected. This study is going to adopt and descriptive method of

survey.


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3.2 SOURCES OF DATA

In carrying out this research project the researcher collect data

from two main sources.

3.2.1 Primary sources of Data

This Source provided Oceanic hand information in relation to the

study. Its sources include questionnaires and direct oval

interview, which was conducted among the staff of Oceanic bank

of Nigeria, Okere Road Warri.

3.2.2 Secondary Sources of DataThe theoretical framework of this study was formal from secondary

source of data. The researcher obtained data through text books,

Journal, magazine, newspapers, national library and internet from

related literature.

3.3 POPULATION OF THE STUDY

This is generally taken to be the totality of all the elements, subject

or number which posses a common and specific characteristic

within a given geographical location.

Ugochukwu (1994: 27) define population as the aggregate or

totality of the units in the universe. In line with this definition,

Okeke (1995:10) defined population as the collection of elements,

units or individuals for which information is sought


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The population was restricted to only the staff of Oceanic bank of

Nigeria Plc, Okere Road Warri Delta State. They form the units of

analysis for this study and their nature is determined by the

survey objective. On the basis of this definition, the elements in

the subject matter under review are drawn for the following:

S/N DEPARTMENT NO OF STAFF

1 Accounts and clearing 15

2 Customer service 13

3 Retail and marketing 20

4 Foreign operation 9

5 Technical support department 5

6 Western Union 14

7 Cash and Teller 26

Total No of Staff 102

3.4 SAMPLING DESIGN AND DETERMINATION OF SAMPLE

SIZE.

This implies a proportion of the population, which was taken as a

representation of the whole population and on which conclusion

made on them based on the data, which they give, was taken to be

peculiar to all members of the whole population.


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In relation to this study, the researcher decided to study the entire

population of one hundred and two (102) respondents since it is

manageable. Therefore there is no need for sample size

determination and sampling design.

3.5 METHOD OF DATA COLLECTION

The research instrument that will be used by the researcher in

collecting useful information on this is questionnaire. A

questionnaire by definition is a list of question or statement to

which individuals are asked to respond by answering the

questions. It is used when factual information is needed.

In this study, the questionnaire designed by the researcher was

highly structural questions. The questionnaire is the major

instrument used in the data collection process. It contains only

relevant information for the study in order to make sure that

adequate numbers of the respondents were reached through

questionnaires; the population of the study was put into

consideration. The researcher deems it appropriate at this

Juncture to adopt Bowlys Allocation formula, which is started

below as follows:


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n1= (n1)(n)N

nI = (Account and Clearing) = 102 (15) = 1530

102 102

= 15

n2 = (Customer Service) = 102 (13) = 1326102 102

= 13

n3 = (Retail and marketing) = 102 (20) =2040102 102

= 20

n4 = (Foreign operation) = 102(9) = 918102 102

= 9

n5 = (Technical Support department) = 102(5) =510102 102

= 5

n6 (Western union) = 102(14) = 1428102 102

= 14

n7 ( Cash & teller) = 102(26) =2652102 102

= 26


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Total of all departments

n1 (Accounts and Clearing) = 15

n2 (Customer Service) = 13

n3 (Retail and marketing) = 20

n4 (Foreign Operations) = 9

n5 (Technical support department) = 5

n6 (Western Union) = 14

n7 (Cash and Teller) = 26102

3.5.1 Questionnaire Design, Distribution and Collection

of Responses.

The questionnaire was carefully designed to accommodate two

sections. The Oceanic section is personal data (Demographic

characters) which will generate proper data regarding the

respondent characteristics like sex, age, educational background,

e.t.c while the other deals on relevant aspects of the topic under

study.

3.5.2Secondary Method of Data Collection

The methods of secondary collection used are: Review of related

literature using; textbooks, magazines, journals, newspaper,

Internet.


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3.6 METHOD OF PRESENTATION AND ANALYSIS

The essence of data collection is to make something good out of it.

The data collected have to be treated and analyzed by the

researcher so that it would serve its purpose. In analyzing the data

collected using the questionnaire; the researcher will use the

descriptive simple percentage table. The sample statistical

technique or frequencies and percentage used were shown below.

Thus % F x 100N 1

Where f = frequency of a particular response.

N = total response


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REFERENCE

Nwana C. (1981) Research Methodology and Statistic for Beginning

Research Student. Awka, Christian printing and

publishing.

Uzochukwu, B. (1994) Management Problems in Selected Public

Utility Organizations in Enugu State (Unpublished

Post Graduate Diploma Research Project ESUT,

Enugu).

Okeke, A. O. (1995) Foundation Statistics for Business Decision;

Enugu. High mega system Limited.


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CHAPTER FOUR

DATA PRESENTATION AND ANYLYSIS

4.0 Data Presentation

This chapter deals with presentation of the data; this is referred to

as the heart of the research work. The data is analyzed in tabular

form consisting of different responses. A total number of one

hundred and two (102) samples were used and simple percentage

was used as statistical data.

4.1 DEMOGRAPHIC CHARACTERISTIC

Table 4.1.1: Distribution of respondents according to age.

RESPONSES FREQUENCY OF

RESPONSE

PERCENTAGE

18-30 years 46 45.131 45 years 40 39.246 and above 16 15.7Total 102 100Source Field survey 2010

The tables 4.1.1.indicates that 46 respondents representing 45.1%

are between 18-30 years of age, 39.2% of the respondents fall

between 31-35 years of age while 15.7% of the respondents are 46

years and above.

Table 4.1.2: Distribution of Respondents Based on sex

RESPONSES FREQUENCY OF PERCENTAGE


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RESPONSE

Male 54 52.9

Female 48 47.1Total 102 100Source: Field Survey 2010.

In the above table 4.1.2, it shows that 52.9% of the respondents are

males while 47.1% of the respondents are females.

Table 4.1.3: Distribution of respondents based on educational

qualifications

RESPONSES FREQUENCY OF

RESPONSE

PERCENTAGE

WASE/GCE/SSC 16 15.7

OND/NCE 30 29.4HND/Bsc 45 44.1Masters and above 11 10.8Total 102 100SOURCE: FIELD SURVEY 20

Moses Project

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