INFLUENCE OF ORGANISATIONAL BEHAVIOUR ON THE MANAGEMENT OF EMPLOYEES IN SELECTED COMMERCIAL BANKS IN SOUTHEAST, NIGERIA

0
55

Abstract

In all the areas of organisational behaviour, the handling and management of emotions and behaviour seem neglected. These are required for organisations to survive otherwise personal tensions and conflicts may result. People experience great difficulties in copying with fierce even outrageous impulses. Researches have been conducted on organisational behaviour, managing behaviour and challenges/prospects of managing behaviour in organisations. Such researches provide general guideline to managers on ways of structuring organisations for effective management of behaviour. Literature is less clear on the extent to which organisational behaviour can influence employee behaviour and management in the banking sector. This has become a problem for business managers on how to determine and encourage positive behaviour in banking industry where relationship between customers and workers are more personal and direct-oriented. This study summarised the literature on the selected organisational behaviour variables and employee management and the findings connecting the two concepts. The empirical study focused on the selected organisational behaviour variables. Methodology adopted for the research was survey system that involved the application of questionnaires and interviews to generate data on the subject of study. The study was done in nine (9) money deposit banks in SouthEast Nigeria. The population of the study was 2,571 and using Freund Williams’ formula, a sample size of 553 was established and proportionally allocated through the aid of Bowley’s method. Analysis of data was done first through the determination of frequency distribution of the variables. Regression analysis was used to test the hypotheses to determine the relationship/influence each organisational behaviour variables of motivation, communication, leadership style, group membership and organisational culture has on employee behaviour and management generally and job satisfaction, creativity, absenteeism, group norms and socialisation respectively. Probability level ofacceptance was 0.05. Pearson-Product Moment Correlation Coefficient was used to test the reliability of instrument using Likert 5 – point scale; the population mean (µ) cut-off point of 3.00 was established and the findings revealed that motivation, leadership style, communication, group membership and organisational culture had positive significant relationship with job satisfaction, creativity, absenteeism, group norms and socialisation respectively and consequently affect employee behaviour and management. In conclusion, the study suggested that managers in the Nigerian banking sector should strive to identify the role each independent variable plays in employee management having established the existence of positive relationship between the two variables. The study recommended that managers in the Nigerian banking sector should encourage innovation and creativity as motivators, embrace transformational leadership style, transferring and operationalization of information should be effectively done, encourage group formation and adopt flexible and adaptive culture so that the gap between enacted and actual culture is bridged. This research has contributed to knowledge by submitting that the management of the banking sector and other service and non-service organisations can use the results of this study as a guide in behaviour management.

TABLE OF CONTENTS

Declaration      –           –           –           –           –           –           –           –           i

Approval         –           –           –           –           –           –           –           –           ii

Dedication      –           –           –           –           –           –           –           –           iii

Acknowledgements    –           –           –           –           –           –           –           iv

Abstract          –           –           –           –           –           –           –           –           vi

List of tables   –           –           –           –           –           –           –           –           xii

List of figures –           –           –           –           –           –           –           –           xiv

CHAPTER ONE

INTRODUCTION    –           –                       –           –           –           –           1

1.1 Background of the Study –           –           –           –           –           –           1

1.2 Statement of Problem       –           –           –           –           –           –           6

1.3 Objectives of the Study                            –           –           –           –           6

1.4 Research Questions           –           –           –           –           –           –           7

1.5 Research Hypotheses     –           –           –           –           –           8                     

1.6 Significance of the Study –           –           –           –           –           –           8

1.7 Scope of the Study           –           –           –           –           –           –           9

1.8 Profile of Selected Service Organisations used for the Study     –           9

1.9Contextual Definition of Terms     –           –           –           –           –           13

REFERENCES          –           –           –           –           –           –           –           16

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.0 Introduction          –           –           –           –           –           –           –           18

2.1 Conceptual Framework     –           –           –           –           –           –           18

2.1.1 Over View of Organisational Behaviour           –           –           –           19

2.1.1.1 Individual Level of Organisational Variables –           –           –           20

2.1.1.2 Implications for Managers      –           –           –           –           –           20

2.1.1.3 Group Level Organisational Behaviour Variables      –                       21

2.1.1.4 Implication for Managers        –           –           –           –           –           22

2.1.1.5 Organisational Level of Organisational Behaviour Variables 22

2.1.1.6 Implication for Managers        –           –           –           –           –           23

2.1.1.7 Performance Management      –           –           –           –           –           23

2.1.1.8 Implication for managers        –           –           –           –           –           24

2.2.1 Concept of Motivation  –           –           –           –           –           –           25

2.2.2 Concept of Group          –           –           –           –           –           –           27

2.2.2.1 Types of Groups         –           –           –           –           –           –           27

2.2.2.1.1 Formal Groups         –           –           –           –           –           –           27

2.2.2.1.2 Informal Groups      –           –           –           –           –           –           28

2.2.2.2 Why do People Join Groups? –           –           –           –                       28

2.2.2.3 Group Cohesiveness   –           –           –           –           –           –           29

2.2.2.4 Sources of Group Cohesiveness         –           –           –           –           30

2.2.2.5 Group Norms  –           –           –           –           –           –           –           32

2.2.2.6 Why Norms are Strongly Enforced    –           –           –           –           33

2.2.2.7 Balance Theory of Group Formation  –           –           –                       33

2.2.3 Overview of Leadership Style   –           –           –           –           –           34

2.2.4 Concept of Communication       –           –           –           –           –           35

2.2.5 Concept of Organisational Culture        –           –           –           –           37

2.2.6 Implication for Managers           –           –           –           –           –           39

2.2.7 Challenges of managing behaviour        –           –           –           –           40

2.3 Theoretical Framework     –           –           –           –           –           –           42

2.3.1 History of Nigerian Banking Industry   –            –           42       

2.3.2 Theory of Leadership     –           –           –           –           –           –           43

2.3.2.1 The Nature of Leadership       –           –           –           –           –           44

2.3.2.2 Sources of Leader Influence on Followers     –           –           –           45

2.3.2.3 Sources of Influence on Leader’s Behaviour –           –           –           46

2.3.3 Theory of Group Conformity and Deviance     –           –           –           47

2.3.3.1 Group Conformity      –           –           –           –           –           –           47

2.3.3.2 Group Deviance          –           –           –           –           –           –           48

2.3.3.3 Theory of Sociotechnical Systems Approach to Work Design           49

2.3.3.4 Theory of Social Psychological Approach to Work Design for

            Groups            –           –           –           –           –           –           –                       50

2.3.3.5 Factors Influencing Work Group Effectiveness         –           –           51

2.3.3.6 Individual versus Group Work Design           –           –           –           53

2.3.3.7 Group Performance and Decision Making     –           –           –           54

2.3.3.7.1 Group Performance  –           –           –           –           –           –           54

2.3.3.7.2 Group Decision Making       –           –           –           –           –           56

2.3.4   Theory of Motivation and Performance                                  –           57

2.3.4.1 Motivation      –           –           –           –           –           –           –          57

2.3.4.2 Nature of Human Needs         –           –           –           –           –           59

2.3.4.3 Maslow’s Need Hierarchy Theory      –           –           –           –           60

2.3.4.4 Herzberg’s Two-Factor Theory of Motivation           –           –           64

2.3.4.5 Vroom’s Expectancy Theory  –           –           –           –           –           65

2.3.4.6 Equity Theory of Motivation  –           –           –           –           –           67

2.3.4.7 Methods of Restoring Equity –           –           –           –           –           67

2.3.4.8 Money as a Motivator –           –           –           –           –           –           68

2.3.4.9 RensisLikert Theory of Motivation    –           –           –           –           69

2.3.4.10 Linking groups in organisations        –           –           –           –           69

2.4 Empirical Review            –           –           –           –           –           –           70

2.4.1Managing Behaviour and motivation                 –           –           –           71

2.4.2 Group Membership and Managing Behaviour   –           –           –           73

2.4.3 Leadership Style and Behaviour Management  –           –           –           75

2.4.4 Communication and Behaviour Management   –           –           –           76

2.4.5 Organisational Culture and Behaviour of Employees   –           –           78

2.5 Summary of the Review of the Related Literature          –           –           79

REFERENCES          –           –           –           –           –           –           –           82

CHAPTER THREE

METHODOLOGY  

3.1 Introduction          –           –           –           –           –           –           –           87

3.2 Research Design   –           –           –           –           –           –           –           87

3.3 Types and Sources of Data           –           –           –           –           –           87

3.4 Tools for Data Collection –           –           –           –           –           –           87

3.5 Population of the Study    –           –           –           –           –           –           88

3.6 Sample size Determination           –           –           –           –           –           89

3.7 Techniques for Data Analysis       –           –           –           –           –           90

3.8 Validity of Research Instrument  –           –           –           –           –           91

3.9 Reliability of the Research Instrument     –           –           –           –           91

3.10 Summary –           –           –           –           –           –           –           –           93

REFERENCES          –           –           –           –           –           –           –           94

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation  –           –           –           –           –           –           –           95

4.2 Data Analysis        –           –           –           –           –           –           –           96

4.3 Test of Hypotheses           –           –           –           –           –           –           108

4.4 Discussion of Findings     –           –           –           –           –           –           121

MANAGERIAL IMPLICATIONS  –           –           –           –           –           129

REFERENCES          –           –           –           –           –           –           –           132

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary of Findings       –           –           –           –           –           –           134

5.2 Conclusion            –           –           –           –           –           –           –           135

5.3 Recommendations      –           –           –           –           –           –           136

 Contributionto Body of Knowledge –           –           –           –           –           137

Areas for Further Studies       –           –           –           –           –           –           139

BIBLIOGRAPHY     –           –           –           –           –           –           –           140

APPENDICES           –           –           –           –           –           –           –           146

LIST OF TABLES

Table 3.1    Population of the Study   –     –           –           –           –           88`      

Table 3.2    Sample Size of the Study –             –           –           –           90

Table 3.3    Pearson – Product+ Moment Correlation Coefficient

                 Indicating the reliability of research instrument    –           92

Table 4.1.1 Demographic characteristics of the Respondents      –           95

Table 4.2.1    Determination of the extent to which motivation leads to

    Desirable behaviour of employees in Nigerian banking industry-  96

Table 4.3   Mean and Standard Deviation for table 4.2.1   –           98

Table 4.2.2 Determination of the effect of leadership style on employee

            Behaviourin Nigerian banking industry         –           –           99

Table 4.4   Mean and Standard Deviation for table 4.2.2.           –           100

Table 4.2.3   Establishment of the effect of communication on employee

                Behaviourin Nigerian banking industry         –           –           101

Table 4.5   Mean and Standard Deviation for table 4.2.3      –           –           –           103

Table 4.2.4 Determination of the effect group membership has on employee

                  Behaviour in Nigerian banking industry       –           –           104

Tale 4.6   Mean and Standard Deviation for table 4.2.4        –           –          –           105

Table 4.2.5 Determination of the effect organisational culture ha on the

                  Behaviour of employees in Nigerian banking industry    –           106

Table 4.7 Mean and Standard Deviation for table 4.2.5              –           107

Table 4.8 Descriptive Statistics of Employee Job satisfaction  –           108

Table 4.8.1 Correlation    –           –           –           –           –           109

Table 4.8.2 Model Summary   –          –           –           –           –           109

Table 4.8.3 ANOVA  –                –           –           –           –           –           109

Table 4.8.4 Coefficient                –           –           –           –           –           110

Table 4.9 Descriptive Statistics of Employee Absenteeism   –           111

Table 4.9.1 Correlation                 –           –           –           –           –           111

Table 4.9.2 Model Summary   –         –           –           –           –           111

Table 4.9.3 ANOVA  –                –           –           –           –           –           112

Table 4.9.4 Coefficient               –           –           –           –           –           112

Table 4.10 Descriptive Statistics of Employee Creativity      –  –           113

Table 4.10.1 Correlation          –           –           –           –           –           114

Table 4.10.2 Model Summary –           –           –           –           –           –           114

Table 4.10.3 ANOVA        –           –           –           –           –           –           114

Table 4.10.4 Coefficient         –           –           –           –           –           115

Table 4.11 Descriptive Statistics of Employee Group Norms     –           116

Table 4.11.1 Correlation      –           –           –           –           –           117

Table 4.11.2 Model Summary –           –           –           –           –           –           117

Table 4.11.3 ANOVA       –           –           –           –           –           –           117

Table 4.11.4 Coefficient           –           –           –           –           –           118

Table 4.12.2 Model Summary –           –           –           –           –           –           119

Table 4.12.3 ANOVA         –           –           –           –           –           –           –           120

Table 4.12.4 Coefficient         –           –           –           –           –           –           –           120

LIST OF FIGURES                                                

Figure 2.1 A Job Performance Model of Motivation –             –           26

Figure 2.2 Factors contributing to Group Cohesiveness       –           31

Figure 2.3 Balance Theory of Group Formation               –           –           34

Figure 2.4 Self-managing Work- Group Model         –           –           51

Figure 2.5 Model of Interpersonal/Relationship Factors among

  Group Members        –           –           –           –           –           –           –           53

Figure 2.6 Circular Process of Motivation of Employees   –           58

Figure 2.7 Maslow’s Hierarchy of Needs       –           –           –           –           –           61

Figure 2.8 Continuum of Satisfaction – Dissatisfaction     –           65

Figure 2.9 Likert’s Linking-Pin Model            –           –           70                               

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

In all the areas of organisational behaviour, the handling and management of emotions seem more neglected. This is needed for organisations to survive otherwise personal tensions and conflicts may result. People experience great difficulties in copying with fierce even outrageous impulses. The Dutch historian Huizinga (1924) writes about the more ferocious and rather unpredictable shifts of behaviour in Medieval Europe. There undoubtedly were norms and agreements to regulate behaviour and mutual interactions. Bernard du Rosier (1404 – 1475) in his effort to propagate other rules of conduct in organisations emphasised on keeping behaviour, emotions and temper under control continuously. Van(1994) noted that during the period of capitalism, the problems of organisationswere discipline, behaviour management and coordination of employees. Factory regimes were based on a tangled combination of coercion from the side of organisations and willingness or motivation on the workers’ part. Bringing people together in one space implied the danger that they would get in each other’s way, that arguments could erupt as a result of differences in behaviour or that they would over indulge in other activities detrimental to the growth of the organisation. Conformance with the individual regime was indirectly threatened by corruption of the moral in the free time (Van, 1994).

However, with the emergence of Scientific Method by Taylor, the founder of Scientific Organisational Design (1856 – 1915) emphasis shifted to imposition of discipline on the activities of subordinates. He explained how employees managed to restrict production by ‘soldiering and loafing’. He contended that applying individual training, better communication pattern, desirable organisational culture, forum for interaction and association and other measures could gradually overcome the tendencies of soldiering and loafing. His experience provided a good impression on how personal power can be replaced by more ‘neutral’ mechanisms of control.

In today’s increasing interdependent companies and organisations – within the context of the global free-market economy, managers need to understand the synergistic roles played by organisational behaviour forces in influencing behaviour.Multinationals are reorganising in response to the changing environment, hoping to capitalise on opportunities for growth. With emphasis on international business and global economy, there is a search on for a new breed of employees and managers. Such employees know how to conduct business across international borders, is often multilingual, thinks with a world view and is able to map out strategies that keep organisations on business track.

 Competition in banking businesses today has made managers in the sector to realise that managing behaviour is complex and challenges innovation, economic growth and corporate sustainability. Consequently, Susmeta (2013) states that managers need to know individual differences among employees since individual differences have direct effect on behaviour stressing that  people who perceive things differently behave differently; people with different attitudes respond differently to directives and that people with different personalities interact differently with bosses, co-workers, subordinates and customers. He further states that knowledge of individual differences helps to explain why some people embrace changes and eventually become successful and others are fearful of it; why some employees are productive only when they are closely monitored while others are naturally productive; why some employees learn new tasks more effectively than others and how organisational behaviour variables can be applied to explain the influence they impact on behaviour and performance.

In this context therefore and considering the critical role of banks in the economy, attempts are made to evaluate how these individual differences impact on the behaviour of workers in this important sector. An understanding of employee behaviour may be required for optimising corporate objectives of the organisation. Attainment of corporate objectives is a function of the effectiveness and efficiency of organisation members. In this context, Bagraim, Cunningham, Potgieter&Viedge(2007) submit that the effectiveness of any organisation is determined by the quality of its members and therefore the procedure adopted in deciding the quality of employees required, establishing those with requisite experience and qualifications to apply and eventually selected are critical.  Consequently, Feldman and Arnold (1983) agree that the process of selecting new organisation members is thought of as a matching process with two simultaneous goals. The organisation seeks to match as closely as possible its own needs with the capabilities of the prospective member. This assertion justifies the rigorous recruitment exercise often experienced in Nigerian banking industry.

Managers are team players empowered by the willing and active support of others who are driven by conflicting self-interests. Acting on those conflicting self-interests are divergent and unpredictable behaviours influenced by certain variables. Organisational behaviour is concerned with the study of behaviour for better understanding, prediction and control, Fieldman and Arnold (1983). Naturally, behaviour of organisation members is influenced by a combination of organisational variables of individual, group, organisational and environmental factors such as motivation, communication, leadership style, group membership, organisational culture among others. Employees are complex combination of attitudes, beliefs and needs. Their minds and brains are complex and have parallel processes running at the same time and driven by some proxies that directly or indirectly compel them to behave in a particular direction.

Fieldman and Arnold (1983) also observe that managing behaviour in organisation is a lot more difficult because future managers are not prepared for the world they will enter, and that new manager’s expectations often exceed reality, displaying feelings of frustration, anxiety, under-utilisation and disappointment. Emphases are on theory rather than the synthesis of theory and practice that prepare managers for the challenges of the actual world. Social systems and social behaviour (and in the case of organisations, individual and group behaviour) can be defined and explained in terms of values, norms, communities and ensuring individual roles. In this context, Fararo, (2001), highlights a number of theoretical propositions derived from behavioural psychology thus:

    i.      Behaviour is the result of the benefits it yields. This means that a set of actions taken         in an environment describe our behaviour which therefore are modelled in line with     the outcomes of earlier made decisions.

   ii.      Social behaviour is an exchange process.  From this perspective, it is defined as a   social interaction between behavioural systems.  It is termed “action and reaction”        (Fararo, 2001). It is grounded in the benefits by an individual from another          individual’s behaviour and it takes the form of sociability, cooperation and             competition.

The theoretical principles accounting for individual and group behavioural differences that have continued to pose challenges to managers especially in service organisations in the words of Homans as cited by Schneider (1995) are formulated thus:

i.          The success principle: the more frequent an action’s reinforcement, the greater the likelihood of that action being repeated.

ii.         The principle of stimuli similarity: similar situations yield general reinforcing effects.          In effect, if a certain stimulus was used in an action reinforce previously, the more           future stimuli resemble that specific stimulus, the greater the chances of identical or         similar performance actions to the one previously reinforced.

    iii.    The value principle: the more the results of an action are valued, the greater the      chances of repeating that very action.

    iv.    The deprivation/sufficiency principle: this means that the more frequent a reinforce is        applied, the less valuable the latter becomes to an individual.

    v.     The aggressive/approval principle: if the reward or punishment received for certain action contradicts the individual’s expectation, there may be emotional reaction and          the likelihood of increase in aggressive behaviour. However, at the end, the results   may be positively valued – the aggressive principle. On the other hand, if the reward   for a specific action meets or even exceeds the individual’s expectations or an action         is not punished as expected, the chances of valuing the results of the resultant      behaviour and,            hence, of repeating it increases – the approval principles.

All these variations, differences and dynamism in behavioural pattern of organisation members are serious challenges to management as well as attainment of corporate objectives of organisations most especially banking industry considering the pivotal role it plays in economic development of a country. Bagraim, Cunningham, Potgieter&Viedge (2007) explain that the study of organisational behaviour provides a guideline that both managers and workers can use to understand the many forces that influence behaviour, and make correct decisions about how to motivate and coordinate people and other resources to achieve optimum performance. It leads to better understanding of peers, supervisors and subordinates within the organisation. Better still, the understanding of the dynamic interaction between the various components leads to personal growth and knowledge for one’s own benefit. Robbins and Judge (2010) agree that organisations consists of components that are independent of each other and are grouped into three levels of individual, group and the structure and design of the formal organisation.  Understanding how these levels influence behaviour is relevant in banking industry where customer relationship is presumed to be more on one-on-one basis. Nigerian banking sector has been undergoing series of transformation and consolidation to strengthen it and since the behaviour of the workers is critical to the survival of the industry, it becomes important to evaluate the influence certain behaviour variables have on the behaviour of bank workers in the Nigerian banking sector.

On the performance and growth of banking industry in Nigeria, Ekanem (2003) asserts that the banking industry in Nigeria has expanded rapidly with productivity rising sharply since 1996. This growth over the years in the sector has been organically and intrinsically linked with the growth of employees who are veritable source of competitive advantage (Omojafor, 2012). In the midst of this expansion and rapid growth of the banking sector are the challenges of managing the diverse workforce associated with the complexity of behaviour to sustain the growth. These behaviours have significant impact on performance and productivity. The first task of a manager is to identify the critical behaviours – the 5% to 10% of the behaviours that may account for up to 70% or 80% of the performance in the area in question (Luthans, 1985).

In a 4-P model of strategic results (people, product, process and productivity) Kreitner and Kinicki (2003) stress the importance of day-to-day continuous improvement in all aspects of organisational endeavour to cope with the more demanding customers and stiffer competition. The banking industry in Nigeria has been faced with enormous challenges that affect performance, management and reliability. The 24 banks in Nigeria today that are referred to as consolidated banks emerged after the recapitalisation initiative of the Central Bank of Nigeria in 2005 after raising the minimum capital requirement for each bank to N25 billion. Banks constitute an important vehicle for economic growth and sustainable development in Nigeria. To sustain this important role requires effective management of their employees which can be made possible by understanding their behaviour. Management is the process of working with and through others to achieve organisational objectives in an efficient and ethical manner (Kreitner and Kinicki, 2003). From the stand point of organisational behaviour, the central feature of this definition is ‘working with and through others’.

Considering the importance of behaviour management to the survival of organisations, there is a dearth of empirical studies on the influence of organisational behaviour on the management of employees in the Nigerian Banking Industry. There is a problem of the difficulty in establishing the extent to which employees in the Nigerian banking sector can be managed through the application of organisational behaviour variables to obtain desirable behaviour. This is the gap this research intends to fill. Therefore, the central focus of this study is to identify the influence organisational behaviour variables of motivation, leadership style, communication, organisational culture and group membership have on managing behaviour in Nigerian Banking Industry. This is critical and therefore supports the objectives of this research.

1.2 Statement of the Problem

INFLUENCE OF ORGANISATIONAL BEHAVIOUR ON THE MANAGEMENT OF EMPLOYEES IN SELECTED COMMERCIAL BANKS IN SOUTHEAST, NIGERIA