Communication As A Tool For Effective Management In The Banking Industry
(A Case Study Of Union Bank Of Nigeria Plc)
Effective communication is indispensable in the banking sector, serving as a linchpin for successful management practices. Within this dynamic industry, where precision, transparency, and timeliness are paramount, adept communication strategies facilitate seamless collaboration among stakeholders, from executives to frontline staff and customers. Clear and concise communication fosters alignment with organizational goals, ensuring that everyone is working towards a common purpose. Whether conveying complex financial information to clients, articulating strategic directives to employees, or coordinating interdepartmental initiatives, effective communication cultivates cohesion and cultivates trust. Moreover, in an industry characterized by regulatory complexities and rapid technological advancements, proactive communication plays a pivotal role in mitigating risks, addressing compliance requirements, and adapting to evolving market landscapes. By leveraging various communication channels such as meetings, memos, digital platforms, and interpersonal interactions, banking institutions can navigate challenges, capitalize on opportunities, and uphold their reputation for reliability and professionalism.
This work is aimed at critically examining communication as a tool for effective management in the Banking Industry. Union Bank of Nigeria Plc Eastern Area Office was used as a case study.
Literature related to the subject were reviewed. Primary and secondary data were collected through the use of questionnaire, interview and from texts, journals and the company’s records.
From the data collected and analysed, it was found among others that:
1. Face to face communication is not common between the top management and the subordinates.
2. For communication to be effective in an organization that the following factors must be observed or maintained.
a. Management must maintain good employee management relationship
b. A common language should be used for betters understanding of communication intents.
c. Subordinates views should be sought before making decision.
We therefore recommend that to be facilate instruction, the employee responsible for execution should be involved in the formulation of the problem to be solved. Management should therefore, encourage upward communication to obtain information and contribution from subordinates. Management should try to maintain good relationship with the workers in order to have effective communication in an organization.
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE:
INTRODUCTION
1.0 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Scope of the study
1.5 Hypothesis research
1.6 Significance of the study
1.7 Definition of term
Reference
CHAPTER TWO:
LITERATURE REVIEW
2.1 Review of related literature for clear understanding and
Comprehension on communication, this chapter has sub-divided
Into followings headings
2.2 Communication channel
2.3 Communication process
2.4 Barriers to effective communication
2.5 Importance of communication in organization
2.6 Summary of literature review
Reference
CHAPTER THREE:
RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
3.2 Area of the study
3.3 Population of the study
3.4 Sample and sampling procedures and techniques
3.5 Instrument of data collection
3.6 Validation of the instrument
3.7 Reliability of the instrument
3.8 Methods of data collection
3.9 Method of data analysis
Reference
CHAPTER FOUR:
DATA PRESENTATION AND ANALYSIS
4.1 Presentation and analysis of data
4.2 Testing of hypothesis
4.3 Summary of result
Reference
CHAPTER FIVE:
DISCUSSION, RECOMMENDATION AND CONCLUSION
5.1 Discussion of result findings
5.2 Conclusions
5.3 Implications of the research finding
5.4 Recommendation
5.5 Suggestion for further study
5.6 Limitation of the study
Bibliography
Appendix A and B
BACKGROUND OF THE STUDY
Despite the vital role communication plays in the day-to-day running of an organization there are still numerous cases of ineffective communication in many organization.
The causes of communication problems in the organization could be attributed to the following factors of variables.
When the management of an organisation are friendly and have a good working report, communication tends to be effective but as soon as members of the organisation gossips, or when there is feelings of incompetence and insecurity, there is bound to be ineffective communication.
Moreover ineffective communication in an organisation could as well be a deliberate action of the receiver of the sender. Inability of the sender to properly encode and transmit the message situation about where the subordinate failed to carry out a directive because he thought the superior was not serious.
Ineffective communication could be due to overloading of information. Too much communication bogs down the entire system. Judicious selection of information helps to avoid dogging the entire system with irrelevant memoranda floating around the management from the habit of not reading their mails, and therefore refers to those mails as Junki.
Meanwhile mechanical inefficiency loads to ineffective our organisation. Lack of proper facilitates like telex, telegraphs and fax, telephones etc which is being used for sending and as well as receiving infant business information causes breakdown in communication process.
1.1 STATEMENT OF THE PROBLEMS
Inadequacy and distortion of information to gross inefficiencies. This may result from labour management problems, high morale of workers, lack of workers contribution on decision making etc.
Moreover, inadequate communication can also lead to great financial looses important information reporting immediate crucial decision often arrived late when by looses may have been incurred. Delays in communication have endangered management effectiveness where there is a poor information system the result has been that rumour or gossip arose and often inadequate communication brings misunderstanding and conflicts which possibly lead to industrial strikes and interruption in production operations.
Furthermore, information overload brings breakdown in the communication process. Judicious selection of information helps to avoid dogging the entire system with irrelevant information. In organizations where there are too many memoranda floating around, the managers may form the habit of not reading their mails which he may refer to as (Junk) or of no value.
Another problem of communication in filtering it occurs when the sender sieves the information and transmits only the favourable aspect of it. When the whole picture is not presented there scarcely can the real intention of the message be achieved.
1.2 PURPOSE OF THE STUDY
This study is aimed at:
1. Identifying the factors that lead to in effective communication in an organization.
2. And possibly, recommending strategies that would ensure that effective communication is been promoted in the organization.
1.3 SCOPE OF THE STUDY
Communication is a very broad topic no consensus has been reached about. The concept but is believed that every human activity involves communication. The scope of this research project will therefore be limited to evaluating the effectives of communication of Union Bank of Nigeria (UBA) Plc. It will also focus on factors that aid or impede effective communication in organizations in addition to highlighting the incidence of participative communication on workers/management relations. The study will also be extended to find out whether communication process has any effect on workers performance and productivity.
1.4 HYPOTHESIS RESEARCH
1. NULL HYPOTHESIS H0
That effective communication process has no effect on workers performance and productivity.
ALTERNATIVE HYPOTHESIS
That effective communication process has an effect on workers performance and productivity.
H0: That effective communication in organization does not exchange democratic or participatory style of leadership.
ALTERNATIVE HYPOTHESIS H1
That effective communication in organization does encourage democratic or participating style of leadership.
Hi: By encouraging feedback mechanism that finding of superiority by top management cannot be controlled or minimized.
1.5 SIGNIFICANCE OF THE STUDY
The important of effective communication in an organization cannot be over emphasized the research work will be a good help to both the general public, the organization and as well the researchers.
1.6 OTHER RESEARCHERS
This study will be of great help to the researchers because it may form a source of information for them. They will also gain from the research study since it will expand their knowledge of the subject area.
1.7 THE ORGANISAITON
This study will also benefit the organization because based on the findings and recommendations they will have an unbelieved in sight into the communication process of the enterprise with a view to identify problems areas. The recommendation will also benefit them since their implementation may be a solution to the identified problems. Other organizations that have similar communication problems will also benefit from the study.
1.8 DEFINITION OF TERMS
Communication – Has been variously defined by different authorities, but the one adopted for this research work is that of Nwachukwu communication is the transfer of ideas from the sender to the receiver.
Organization – According to Rogers and Rogers 1976, organization is a stable system of individuals who work together to achieve through a hierarchy of rank and division of labour, common pals.
Communication Process: Is the means of transmitting message from sender to receiver it describes the means of passing message from sender to the receiver of the message.
Management – Is a social process entailing responsibility for the effective and economical planning and regulations of operation of an enterprise, in fulfillment of a given purpose or task.
Worker – This refers to those who are working the organization to improve standard of living now.
Feedback – Response by a message received & which indicate whether or not the message has been understood.
Encoding – The translation mental perception in some sort of communication code.
Grape Vine – The grape vine is the positive counterpart of rumour in an informal system. But the person who gives out information may not be easy to find.
Rumour – This refers to unofficial and unconfirmed information sent through interpersonal channels there is no clear out evidence to where the information is carried from.
Communication As A Tool For Effective Management In The Banking Industry:
Communication is a critical tool for effective management in the banking industry, just as it is in any other sector. Clear and efficient communication helps ensure that all levels of the organization are aligned, informed, and working toward common goals. In the banking industry, where precision, accuracy, and trust are paramount, effective communication becomes even more crucial. Here’s how communication serves as a tool for effective management in the banking industry:
- Internal Communication:
- Team Coordination: Effective communication helps managers coordinate activities among different teams and departments, ensuring that everyone is working together seamlessly to achieve organizational objectives.
- Task Allocation: Clear communication allows managers to assign tasks and responsibilities to employees based on their skills and expertise, optimizing workforce utilization.
- Feedback and Performance Evaluation: Regular communication enables managers to provide feedback on employee performance, helping them improve and align with organizational goals.
- Leadership Communication:
- Vision and Strategy: Effective managers communicate the bank’s vision, mission, and strategic objectives to their teams. This helps employees understand the bigger picture and motivates them to work toward common goals.
- Change Management: Banking is an industry that evolves rapidly due to technological advancements and regulatory changes. Managers need to communicate changes effectively to ensure smooth transitions and minimize resistance.
- Crisis Communication: In times of crisis, such as financial downturns or security breaches, managers must communicate transparently with both internal teams and external stakeholders to manage the situation and maintain trust.
- Customer Communication:
- Trust Building: Clear and transparent communication with customers helps build trust, a crucial aspect of banking relationships. Whether it’s explaining account terms or discussing financial products, effective communication fosters credibility.
- Customer Education: Banking services can be complex. Managers need to ensure that customer-facing employees can explain products, services, and procedures clearly, helping customers make informed decisions.
- Regulatory Compliance:
- Policy Communication: The banking industry is highly regulated. Managers must communicate compliance requirements to employees to ensure that all operations are conducted within legal boundaries.
- Documentation: Effective communication ensures that internal policies and procedures are documented accurately and comprehensively. This documentation is essential for audits and regulatory inspections.
- Cross-Functional Collaboration:
- Interdepartmental Communication: Banking involves various departments, such as operations, risk management, marketing, and IT. Effective communication ensures that these departments work together harmoniously to achieve common objectives.
- Innovation and Development: Communication between departments facilitates the development of new financial products, services, and technologies, allowing banks to stay competitive.
- Performance Metrics and Reporting:
- Data-driven Decisions: Effective communication of performance metrics allows managers to make data-driven decisions, optimizing processes and improving overall efficiency.
- Stakeholder Reporting: Managers must communicate financial performance and strategic progress to stakeholders, including shareholders, regulatory bodies, and investors.
In summary, effective communication is a foundational tool for successful management in the banking industry. It promotes teamwork, trust, compliance, customer satisfaction, and strategic alignment. Given the dynamic nature of banking and its impact on individuals’ financial well-being, mastering communication skills is essential for managers to lead their teams and organizations toward sustainable success.