The Effect of Human Relation Practices on Employee Performance: a Case Study of United Bank for Africa(Uba)
Abstract
This study employed a quantitative survey research design to investigate the impact of communication practices, leadership styles, and organizational culture on employee performance, productivity, and job satisfaction within United Bank for Africa (UBA). The research aimed to provide insights into the relationships between these factors in a multinational banking context. A structured questionnaire was designed to gather data from a sample of 120 respondents, comprising employees from various departments and hierarchical levels within UBA. Data collection involved the administration of the questionnaire, and responses were coded and input into SPSS27 for analysis. The software facilitated the presentation of findings through descriptive statistics and supported the application of a one-sample t-test to examine hypotheses related to communication practices, leadership styles, and organizational culture. The hypotheses were tested with an assumed mean of 0, and a critical table value of 2.92 was used for the one-sample t-test. Findings indicated that effective communication practices significantly impacted employee performance (M = 73.00, SD = 8.76, p < .05). Similarly, leadership styles within UBA demonstrated varying effects on employee productivity (M = 66.00, SD = 4.08, p < .05). Furthermore, the organizational culture significantly influenced employee job satisfaction (M = 89.75, SD = 2.99, p < .05).In conclusion, the study revealed that communication practices, leadership styles, and organizational culture play crucial roles in shaping various aspects of employee performance, productivity, and job satisfaction within UBA. These findings contribute valuable insights to the existing literature on human resource management practices in multinational banks. Based on the results, it is recommended that UBA considers enhancing its communication strategies, adopting effective leadership styles, and further developing its organizational culture to foster a positive work environment. These recommendations aim to improve overall employee satisfaction, productivity, and performance within the organization. Future studies could delve deeper into specific aspects of communication, leadership, and culture to provide a more nuanced understanding of their impacts on employee outcomes.
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CHAPTER ONE
INTRODUCTION
Background to the Study
In the dynamic and competitive landscape of the banking industry, the role of human relations practices in shaping employee performance is underscored by various studies. Akpa, Akinlabi, and Magaji (2019) highlighted the relevance of work-life balance in selected deposit money banks in Lagos State, Nigeria, emphasizing the direct impact on employee performance. This aligns with the broader understanding that effective human relations practices contribute significantly to employee well-being and, consequently, their performance. The United Bank for Africa (UBA), as a prominent player in the financial sector, serves as an ideal case study to delve into these intricacies.
The banking sector, as illuminated by Olaoye and Afolalu (2020), is marked by constant innovation, technological advancements, and stringent regulatory requirements. These factors create a unique and challenging environment where human relations practices play a pivotal role in navigating complexities. The study on the effect of human capital accounting on earnings per share of equity owners in deposit money banks in Nigeria underscores the importance of human resources in the financial sector. In this context, the effectiveness of human relations practices becomes not only a strategic advantage but also a critical factor in attracting and retaining top talent.
UBA, being a key player in the financial sector, necessitates a comprehensive understanding of human relations practices. Awoyemi and Akinfolarin’s study (2018) on the impact of Human Resource Management on employees’ sustainability development in Ado-Ekiti, Nigeria, provides a lens through which to view the relevance of HR practices in enhancing employee performance. UBA’s human relations practices, encompassing communication, leadership, and organizational culture, are crucial components in creating a work environment that fosters sustainability and development.
Wege, Ngige, and Dieli (2019) delved into the relationship between Human Resource Management (HRM) and organizational performance in Nigeria, shedding light on the broader implications for the banking sector. This study establishes a link between effective HRM practices and organizational success, emphasizing the need for a strategic approach to human relations. In the context of UBA, understanding how HRM practices align with organizational goals and contribute to employee performance becomes imperative.
In the banking sector, organizational culture is a significant factor influencing employee behaviour and performance. Islam, Sarker, and Islam (2018) explored the influence of HRM practices on employee job satisfaction in private commercial banks in Bangladesh. The study underscores the impact of organizational culture on employee satisfaction, which is directly linked to performance. Applying this insight to UBA, an exploration of its organizational culture and how it resonates with employees becomes crucial in understanding the dynamics of human relations within the institution.
Miranda and Fernando’s study (2020) on the impact of Human Resource Management practices on perceived organizational performance in Sri Lanka provides a global perspective. While cultural contexts may differ, the study emphasizes the overarching impact of HRM practices on organizational success. This global perspective is valuable when examining UBA, which operates in diverse geographical locations. It necessitates a nuanced approach to human relations practices that considers the cultural diversity inherent in the multinational organization.
Al-Abbadi’s research (2018) on the impact of HRM practices on organizational commitment in commercial banks in Jordan offers insights into the psychological aspects of employee relations. Understanding the emotional and psychological commitment of employees is crucial for UBA, especially in a sector where trust and commitment play a significant role. Examining how UBA’s human relations practices contribute to organizational commitment becomes integral to optimizing employee performance.
Statement of Problem
In the context of the United Bank for Africa (UBA), a critical issue arises concerning the impact of human relations practices on employee performance. Despite the plethora of studies emphasizing the significance of these practices in various industries, there remains a notable gap in understanding how the specific human relations practices within UBA influence the performance of its diverse workforce.
The problem is further compounded by the dynamic and competitive nature of the banking industry, as highlighted by Olaoye and Afolalu (2020), which demands a strategic approach to human resources. The banking sector’s constant innovation, technological advancements, and stringent regulatory requirements necessitate a nuanced understanding of how human relations practices within UBA align with the industry’s evolving dynamics.
While studies such as Akpa, Akinlabi, and Magaji (2019) underscore the relevance of work-life balance in influencing employee performance, there is a lack of specificity in addressing the unique challenges and opportunities present within UBA. The specific context of UBA, operating as a multinational financial institution, introduces complexities related to diverse cultures, varying regulatory landscapes, and a broad spectrum of job roles that require tailored human relations strategies.
Additionally, the literature on HRM practices in Nigeria by Awoyemi and Akinfolarin (2018) and Wege, Ngige, and Dieli (2019) emphasizes the broad impact of human resource management on organizational success. However, there is a gap in understanding how these practices translate into tangible outcomes within UBA, given its distinctive organizational structure and operational scale.
Hence, the statement of the problem revolves around the need to bridge these gaps in knowledge and understanding. Specifically, it involves investigating how communication practices, leadership styles, and organizational culture within UBA directly impact employee performance in the context of the dynamic banking industry. By addressing this gap, the study aims to provide actionable insights for UBA’s management, human resource professionals, and leaders to optimize human relations strategies and enhance overall employee performance within the unique context of the banking sector.
Objectives of the Study
The specific objectives of this study, within the context of UBA, are as follows:
- To evaluate the effectiveness of communication practices within UBA and their influence on employee performance.
- To assess the leadership styles adopted by UBA and their impact on employee productivity.
- To analyze the organizational culture at UBA and its relationship with employee job satisfaction.
Research Questions
To guide the investigation, the following research questions were explored:
- How do communication practices within UBA contribute to or hinder employee performance?
- What leadership styles are prevalent within UBA, and how do they correlate with employee productivity?
- How does the organizational culture at UBA affect the job satisfaction of its employees?
Research Hypotheses
The research hypotheses to be tested in the UBA case study are as follows:
Null Hypotheses (H0):
- Effective communication practices within UBA do not have a significant impact on employee performance.
- Different leadership styles at UBA do not have varying effects on employee productivity.
- The organizational culture at UBA does not directly impact the job satisfaction of its employees.
Alternative Hypotheses(H1):
- Effective communication practices within UBA have a significant impact on employee performance.
- Different leadership styles at UBA have varying effects on employee productivity.
- The organizational culture at UBA directly impacts the job satisfaction of its employees.
Justification of the Study
The justification for conducting a study on the effect of human relations practices on employee performance within the United Bank for Africa (UBA) is rooted in the pivotal role that human capital plays in the success of organizations, particularly within the highly competitive banking industry. This comprehensive examination is imperative for several reasons, encompassing organizational sustainability, talent management, and strategic adaptation to industry dynamics.
First and foremost, UBA operates in an industry characterized by relentless competition, rapid technological advancements, and evolving regulatory frameworks. In such a dynamic landscape, the effective management of human relations practices emerges as a critical factor for maintaining a competitive edge. This study seeks to unearth the specific intricacies of how UBA’s human relations strategies impact employee performance within the unique context of the banking sector. Understanding these nuances is essential for UBA to not only stay ahead of industry trends but also to proactively position itself as an employer of choice in a talent-driven market.
The financial industry’s reliance on knowledge workers and the intangible assets they bring to the organization underscores the importance of human capital. The findings of this study will contribute to a deeper understanding of how UBA can strategically leverage its human resources to enhance employee performance. By pinpointing the aspects of human relations practices that most significantly influence employee productivity, job satisfaction, and overall performance, UBA can fine-tune its strategies to align with organizational goals and industry demands.
Furthermore, the study is justified by the potential to provide actionable insights for UBA’s management, human resource professionals, and leaders. The banking sector’s fast-paced nature demands agility in responding to workforce challenges and opportunities. The research outcomes will not only shed light on the current state of human relations practices within UBA but also offer pragmatic recommendations for improvement. This actionable knowledge can be instrumental in refining policies, implementing targeted training programs, and fostering a workplace culture that catalyzes employee success.
Employee engagement and satisfaction are critical elements for organizational success, and they are intricately linked to human relations practices. As emphasized by studies such as Akpa, Akinlabi, and Magaji (2019) and Olaoye and Afolalu (2020) in related contexts, an organization’s commitment to work-life balance and effective human capital accounting significantly influences the well-being and performance of its workforce. By conducting this study within the UBA framework, we aim to generate insights that are not only academically valuable but also directly applicable to the practical challenges faced by the organization.
Moreover, the study is justified by its potential impact on UBA’s sustainability and long-term development. Awoyemi and Akinfolarin (2018) established a connection between Human Resource Management (HRM) practices and sustainability development. As UBA aims to navigate through future challenges and capitalize on emerging opportunities, a robust understanding of how human relations practices contribute to sustainability becomes indispensable.
Scope of the Study
This research focused exclusively on the United Bank for Africa (UBA) as a case study. The scope encompasses various departments, levels of hierarchy, and geographical locations within UBA, offering a comprehensive view of the organization’s human relations practices and their impact on employee performance.
 Operational Definition of Terms
To ensure clarity within the context of the UBA case study, the operational definitions of terms align with the specific dynamics of the organization:
Human Relations Practices at UBA: The array of strategies and activities implemented by UBA to enhance interpersonal relationships, including communication channels, leadership approaches, and organizational cultural initiatives.
Employee Performance at UBA: The measurable outcomes and contributions of employees at UBA, spanning productivity, job satisfaction, and overall effectiveness in fulfilling their roles within the organization.
Communication Practices at UBA: The methods and protocols employed by UBA for internal communication, encompass formal channels, team collaboration, and feedback mechanisms.
Leadership Styles at UBA: The diverse approaches and behaviours exhibited by leaders at UBA in guiding and influencing their teams, including but not limited to transformational, participative, and transactional leadership styles.
Organizational Culture at UBA: The shared values, beliefs, and behavioural norms that define the work environment at UBA, influence the overall experience of employees and shape their interactions within the organization.
REFERENCES
- Sajjad, H. (2017). The impact of HRM on organisational performance: evidence from selective service sectors of Bangladesh. International Journal of Human Resources Management, 6(3), 1-14.
- Saunders, M., Lewis, P., & Thornhill, A. (2019). Research Methods for Business Students (8th ed.). Harlow: Pearson Education.
- Tashakkori, A., & Teddlie, C. (Eds.). (2017). Handbook of Mixed Methods in Social and Behavioral Research. Thousand Oaks: Sage.
- Wege, L. G., Ngige, C. D., Dieli, O. J. (2019). Human Resource Management (HRM) and Organizational Performance In Nigeria. International Journal of Management and Entrepreneurship (IJME), 1(1), 52-67. https://ijmecoou.org/index.php/ijme/article/download/4/5/
- Yin, R. K. (2018). Case Study Research and Applications: Designs and Methods (6th edition). Los Angeles: Sage Publications.
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