AN APPRAISAL OF THE APPLICATION OF MANAGEMENT BY OBJECTIVES IN FINANCIAL INSTITUTION

(A CASE STUDY OF UNION BANK OF NIGERIA PLC OKPARA AVENUE BRANCH ENUGU)

By

NWANNE CHINEDU

Presented To

Department of Accounting

ABSTRACT

The focus of this project is to appraise the application of MBO Programmes in the affairs of Union Bank of Nigeria Plc, Okpara Avenue Branch, Enugu.

The programmes of MBO has been inadequately applied in Union Bank, Okpara avenue branch and his due to ignorance of the employees of the benefits that accrue to such full application.

Four research question and hypothesis guided this study, one hundred and twenty (120) officials comprising the senior ands junior staff were interviewed.

The questionnaires were structural in such a way as to elicit information for the stated hypothesis in the study.

Despite the benefits of MBO Union Bank Plc Okpara Avenue has not come to grip with this concept., Results of the study shows a clear abandonment of MBO y Union Bank Plc Okpara Avenue staff.

Conclusions also arrived at indicating that Union Bank do not apply MBO in carrying out organisational policies.

PROPOSAL

The focus of this project is to appraise the application of Management by objective (MBO) Programmes in Financial Institutions in Nigeria.

Management by Objective is a system whereby the Objective for company as a whole is dedicated upon by the management and subordinates to achieve the Organisational goal.

The Scope of this study will attempt to evaluate the effective application of management By Objective in Union Bank Okpara Avenue Branch, Enugu

Research questions and hypothesis will guide this study. Also Officials comprising the senior and juniors staff will be interviewed. Thus will be done through random section. The volume of this work will be up to eighty pages (80).

The questionnaires will be structured in such a way as to elicit information for hypothesis. Thus work will be structures into five chapters.

TABLE OF CONTENTS

Title Page … … … … … … … … i

Approval Page … … … … … … … … ii

Acknowledgment … … … … … … … iii

Abstract … … … … … … … … iv

Table of Content … … … … … … … v

CHAPTER ONE

10 INTRODUCTION

11 Background of Study

12 Statement of Problems

13 Research Question

14 Scope of Study

15 Purpose of Study

16 Research hypothesis

17 Significance of Study

18 Limitation of Study

9 Definitions Terms

110 References

CHAPTER TWO

20 REVIEW F LITERATURE

21 Historical review

22 MBO Approaches

23 Steps in MBO process

24 The development of MBO

25 Advantages or Benefits of MBO

26 Disadvantage of MBO

27 Experience with MBO

28 Other Organisational Development Intervention Strategies/Approaches

29 Summary of review of Literature

210 References

CHAPTER THREE

30 RESEARCH METHODOLOGY

31 Area of the study

32 Identification of Survey Population

33 Sample and Sampling Procedure

34 Instrument for Data Collection

35 Questionnaire Design

36 Questionnaire Assumption

37 Validation of Research Instrument

38 Reliability of the research Instrument Administered

39 Reference

CHAPTER FOUR

40 DATA PRESENTATION AND ANALYSIS

41 Presentation of Questionnaire

42 Data Analysis

43 Testing of Research Question

44 Summary of Results

45 Interpretation And Results

CHAPTER FIVE

50 SUMMARY OF STUDY

51 Discuss of Findings

52 Implication of the research

53 Conclusion

54 Recommendation

55 Suggestion for the Research

Bibliography

Appendix A Questionnaire

Questionnaire

Appendix B Interview Schedule

CHAPTER ONE

10 INTRODUCTION

11 BACKGROUND OF THE STUDY

In Nigeria, Financial Institution are those institutions that make available to customers short term, long term and other credit instruments for investments and other purposes

They also accept deposit, valuables and perform other functions An excellent example is the Banking Industry

The Nigerian Banking Industry started in 1892 when the Africa Banking corporation was Incorporated This was followed by the establishment of Barclays Bank of Nigeria Plc

The Union bank of Nigeria Plc is among the First generation Banks in Nigeria It was incorporated In Nigeria Companies and Allied Matter's Decree of 1990 as other many public liabilities Companies The Union Bank of Nigeria Plc is the first of the First generation Banks to be wholly own by the Nigerian public At present, there are about 300 branches all over Country with the headquarters at Broad Street Marina Lagos

The role of Union Bank in economic development of the Nation cannot be over emphasized These services rendered by Union bank manager from Ordinary Mobilization of saving to the more sophisticates and not too common business advisory services, Bank generally are regarded as provides of loans which indirectly entails the creation of money and extention of credit facilities An organisation that that trades principally in money requires honesty as a watch -ward

Union Bank is tailored towards customers satisfaction in the rendition of new services

An organisation such as Union Bank Plc that thrives on trust and honesty of this staff for discharge of new services must seek an effective and impartial way of rewarding its employees Also the efficiency of the service rendered by the Bank depends on the management approach adopted by the Bank

One management concept that encourages efficiency is management by Objectives Drwcker (1974), Looked at (MBO) as a system whereby the objectives for the company as a whole are decided upon by the management and subordinates to archive the organisational goal When this is applied in targets setting the managers and subordinates alike receive regular feed back through performance review and are closely involved in the settings their own targets

The top management approach has been in existence for a greater in part of the distance of the bank

The subordinates are only given a line of action for following the course of attaining the set targets with increasing awareness f the part of the employees through in services training, furtherance to their education, exposure to what is obtained in other banks and the deregulation of he economy, with de-emphasis in profit making, the bank has started making in roads in modern management practices such as management By Objectives (MBO)

This research work is to investigate the extent to which all cadre of employees are involved in target setting and evaluate its application in light of the forgone The Organisational structure of Union Bank Plc is divided into three distinct segments for effective discharge of her services to customers

a The Head Office: The Corporate Head Office is situated at Marina Street, Lagos

b The Area Offices: The area Offices are located in the Northern region, Eastern region and Western region o the Country

c The Branches: The branch offices are scattered all over the Country

This research work is picking at the many branches of the Bank

This is the Okpara Avenue Branch Enugu

12 STATEMENT OF PROBLEM

An organisation such as Union Bank Okpara Avenue Branch with numerous employees needs an effective and practical management approach to allow for integration f various personal objectives of the employees and that of the organisational objectives in order to achieve the organizational goals

This study will focus on the following problems

1 Presently in Union Bank Okpara Avenue Branch formulation of polices is exclusively reserved for the top management As a result subordinates and employees do not understand and finds it difficult to adhere to these policies

2 The difference and conflicts encountered in policies, execution by subordinates and employees because of non-participation in policies formulation demoralized the middle and bottom levels of management consequently initiatives are relegated to the background

3 With the application of (MBO), can the employees at all levels in the bank see each other's view as aiming towards the achievement of he overall organisational objectives and generally efficiency of the Bank

4 Finally, how can (MB)) cushion the effects f the existing problems in the management approach with the general efficiency of the branch as well as self actualization of both the employees and the branch in mind

13 RESEARCH QUESTIONS

This study will be designed to find answers to the following research questions

1 In the setting f the Union Bank Plc Okpara avenue Branch goals both short and long un are the employees involves and to what extent ?

2 Are the employees aware of /or have pre-knowledge about goals of the branch

3 Are supervisors always after faults no complimenting any good job alone, provided staff annual benefits are granted, do he staff feel satisfied ?

4 How effective is the application of (MBO) in the Union Bank Okpara Avenue Branch?

14 SCOPE OF STUDY

The scope of this study will attempt to evaluate he effective application of MBO in Union Bank Okpara Avenue, Enugu, within the lost decade there has been an interesting development in the field of management Drwckers, (1974) has stressed that management is the consequences; Management By objectives has gained much momentum only in recent year's, it cannot be said that it is quite a new phenomenon on management development It is only in recent times that its importance and relevance has come to be highly appreciated

Thus study will therefore attempt to establish the linkage between the subordinate and management in contributing to the organisational objective and to what extent MBO affects the overall efficiency of the Union Bank Plc

The scope covered by this study will be limited to Union Bank of Nigerian Plc, Okpara avenue branch, this study will serve as representative of almost all the branches of Union Bank of Nigeria Plc

15 PURPOSE FO STUDY

The proliferation of commercial Banks in the Country has placed employers of the generation bank in high demand Also the deregulation of the economy in recent times is affecting the fortunes of Banks Cowpled with employees in recent desires to development their talents to the higher degree, that is self actualization

Moreover, the dominant management approach, top bottom concept in practice is not motivation the moral o the employees good enough to achieve the desired results Similarly, the MBO concept which the Bank is blending with the old practice is to be evaluated and examined how its application is contributory tot he performance of he Bank given the aforementioned constraints

Umoh (1994) postulates, that management is the process of getting this done by using some other people to achieve a set objective One management concept that is widely applied for this purpose is MBO and policy markers are making a more conscious effort to popularize this concept

It is therefore the objective of this study to :-

i Study the role of management by objective in Union Bank Plc Okpara Avenue Branch, Enugu

ii Examine the extent, the MBO is applied in the activities of the Union Bank Okpara Avenue, Enugu

iii Find out the relationship between the application of MBO and level o efficiency in the bank

iv Taking cognizance of related problems facing the effective application of MBO

v Educating the existing personnel on the applicability of MBO

16 RESEARCH HYPOTHESIS

The following hypothesis will be tested in the course of the study

H₁ The management staff and the subordinates are often

not aware of the organisation target

H₂ Involving Subordinates in setting organization goal has 
no relationship with employee's productivity level

H₃ Encouragement and recognition has no positive effect 
on moral and Job satisfaction as would a pay rise

H₄ The organization's goals attainment and direct is

dependent on the application of MBO

17 SIGNIFICANCE OF STUDY

This study is primarily interested in explaining how an effective application of management by objective will enhance employee moral and increase productive as well as general efficiency of the Bank in question

Umoh (1994) paints a true picture of the wide range of benefits to be gained in the application of MBO

Attention will be focused in the deployment of personnel to various department of the Bank at Okpara Avenue, Enugu

18 LIMITATION OF STUDY

Certain factors limited against this project and these were all predominant constraints:

1 Time constraint come out distinctly, the researcher had problms of using the limited time available in writing this work is grossly inadequate

2 Finance was another constraints that made the researcher not to better than the present quality of he work The researcher found it difficult to be transporting herself to and from her research place, home and the school

3 The in co-operative attitude and uncompromising behaviour of some principal officers also hindered the production of this work

19 DEFINITION OF TERMS

i MBO: Management By Objective

ii APPRAISAL; Evaluation, or to evaluate

iii FINANCIAL INSTITUTIONS: Those Institution that make available to Customer's short term, long term and other credit Instruments for investment purposes

iv Management By Objective: A System whereby the objectives for the Company as a whole are decided upon by the Management and subordinates to achieves the organisational goal

110 REFERENCES

J ORJIH (1996) Business Research Methodology: 
Enugu: Meteson Publicity Company

Drucker P (1954) The Practice of Management: New York: 
Harper and Row Publishers Inc