THE IMPLICATIONS OF RISK MANAGEMENT IN THE NIGERIAN FINANCIAL SERVICE SECTOR

THE IMPLICATIONS OF RISK MANAGEMENT IN THE NIGERIAN FINANCIAL SERVICE SECTOR

ABSTRACT

Businesses in the Nigerian financial services sector are continuously and relentlessly seeking the best and appropriate risk management strategies and/or techniques to be adopted, which would enable them to operate effectively and successfully within the harsh business terrain, surrounded by, and filled with risks and risk factors.

This study took a critical examination at the risk management strategies adopted in the Nigerian financial service sector, while studying selected financial institutions within the sector. These selected financial institutions included two banks and one insurance institution located within Enugu metropolis. On the one hand, risk is defined as the prospect of financial loss attributable to unforeseen changes in underlying risk factors. On the other hand, risk management is defined as a series of measures under taken by a business towards managing or controlling risk or likely risk occurrence, by averting it or minimizing its overall impact on the organization.

          The Objectives that were set out be achieved by this research study included the following:

  • To determine the implications of risk management in the Nigerian financial service sector.
  • To determine the risk management strategies and /or techniques adopted is the Nigerian financial sector.
  • To identify the various types of risks that occur in the Nigerian financial sector.
  • To identify areas where risk management is applied in the Nigerian financial sector.

The sample size for this research was set at 190, and the researcher employed the tools of physical interviews and questionnaires to source for primary data. The secondary data was gotten via journals and publications on related topics. This researcher also used the chi-square and correlation analysis in testing the formulated hypotheses.

          The findings from this research work reliably revealed that almost all the respondents who responded to  the questions in the questionnaires agreed  to the fact that; there are several implications of risk management in the Nigerian financial service sector, both positive and negative; there are several risk management strategies and /or techniques adopted in the Nigerian financial sector which help to eliminate or minimize risk or likely risk occurrences; there are  various types of risks that occur in the Nigerian financial sector; and finally, there are several areas where risk management is usually applied in the Nigerian financial sector.

          Based on the findings, appropriate recommendations were made to the targeted audience, and a conclusion was drawn.                       

CHAPTER ONE/INTRODUCTION

1.1   BACKGROUND OF STUDY

Business firms all over the world today, Nigeria in particular operate successfully in a harsh business terrain, owing to the fact that consumers have come to accept and embrace them and what they offer. The fact that there are usually two or more firms competing and offering similar goods and/or services, notwithstanding; the difference however between one firm and the other(s) is seen in the quality of the goods and services being offered. Nevertheless, these firms in their efforts to meet their customer needs are often faced with a lot of challengers, what is widely known today as risks. Thus, the concept of risk management as the best way of tackling this problem was developed. Risk and risk management are the results of intensive study on the causes and effects of business success and failure today, especially in the Nigerian financial sector.

The International Organization for Standardization (ISO) has defined risk management as the identification, analysis, evaluation, treatment (control), monitoring, review and communication of risk and risk factors.

On the other hand, risk can be defined as the prospect of financial loss attributable to unforeseen changes in underlying “risk factors”. These risk factors are the key drives affecting business and their financial results. Such risk factors can be equity prices, interest rates, exchange rates, share values, commodity prices etc.

Risk is inherent in every business and every organization has to manage it according to its size and nature of operation because without it no organization can survive in the long run. Risk management is only appropriate for the simple verity that one cannot envisage the future. Risk management however, can do very little to reduce variability since markets will continue to fluctuate no matter how advanced risk management gets. It can be very powerful in reducing uncertainty for those involved in risk taking decisions and actions

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The Effect Of Recruitment And Selection On Organizational Performance

The Effect Of Recruitment And Selection On Organizational Performance

CHAPTER ONE/INTRODUCTION

1.1 Background of the Study

The success and achievement of the objective of an organization depends on the performance and caliber of human resources that make up such organization. This fact influenced the recruitment, and selection practices with special emphasis on Dozzy group of companies.

Since the industrial revolution economies started growing speedily in the developed countries and later on this process of growing industries and markets expanded to the whole world which turned into large completion among big companies operating in both public and private sectors. The world turned into global village which encouraged movement of Knowledge, Skills and Abilities across the cultures in the different countries in the world that caused the researchers focus towards the human resource management field to address different aspects related to the employees behavior particularly recruitment and selection. Most organizations focus more on human assets rather than physical assets.  An organization can be readily purchase equipment, manufacturing facilities, and most technologies, but the human talent are much hard to come by. Candidates who are able add value to their clients’ businesses shows the ability of a good recruitment company in searching talents. Human Resource may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas such as recruitment and selection.

There are two phases to make new selection of employees needed by the organizations, the first one is to generate a large pool of applicants and then make the best selection out of them. Recruitment is equally important to study because effectiveness of the selection directly depends on the how large and qualitative is the pool of applications.  Djabatey (2012) opined that this scenario lends credence to the increasing attention being paid to the people aspect of organizational assets because the development of people, their competencies and the process of the total organization are the pivot of human resource management. Similar to this development is the contention in National University of Ireland (2006) that the continued growth and development of an enterprise depends on its ability to recruit and select high quality personnel at all levels in respective of the cost of such action.The position to be filled must be defined in terms of job description and job specification. Thus, according to Ekwoaba, etal(2015), recruitments and selections have become essential in organizations because individuals need to be attracted on a timely basis, in sufficient numbers and with appropriate qualifications.The more effectively organizations recruit and select candidates, the more likely they are to hire and retain satisfied employees. In addition, the effectiveness of an organization’s selection system can influence bottom-line business outcomes, such as productivity and financial performance.The need for recruitment and selection in any organization depends on the existing vacancies to be filled or new post to be created, human resource department makes some decisions before considering if the company should recruit, decisions like the number of vacancy to be created, the profit the company makes which determines if the company would be able to pay the workers to be recruited, the number of workers needed. According to Gary (2009), the recruitment and selection process starts with employment or personnel planning. It is the process of deciding what positions the firm will have to fill and how to fill them. It is therefore very glaring that managements must be trained, and advised in recruitment and selection matters especially interviewing. It is often claimed that selection of workers occurs not just to replace departing employees or add to a workforce but rather aims to put in place workers who can perform at a high level and demonstrate commitment (Ballantyne, 2009).

Bratton and Gold (2012), differentiate the two terms while establishing a clear link between them by stating that recruitment is the process of generating a pool of capable people to apply for employment to an organization. Selection is the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons more likely to succeed in the job(s), given management goals and legal requirements. Recruitment and selection forms a core part of the central activities underlying human resource management: namely, the acquisition, development and reward of workers. It frequently forms an important part of the work of human resource managers – or designated specialists within work organization. Using the right selection methods one can ensure that the candidate does not only has the right skills for the job, but also possesses the right personality to fit into the existing organizational culture. Once that “right” person has been employed, the company has to ensure that the right incentives are put in place. However, recruitment and selection is characterized by potential difficulties. Generally speaking, the conducts of recruitment, selection processes are cost involved and such could be advertising cost, testing cost, interviewing, and training cost, placement cost. In view of these, there is much need for any ideal organization to exhibit the concept of seriousness, commitment, merit selection and organizational diplomacy in the conduct of recruitment and selection exercises.

Recruitment according to Stoner et al(2009), is a systematic and organized procedure where potential employees are obtained for selection and placement in the organization through a variety of sources. Sources of candidates like educational establishment or Institutions e.g. universities, polytechnics, colleges of education and Recruitment agencies, such as Author Andrew, Omoloye and Associate and online recruiting, advertising, outsourcing providers.After recruitment, selection process is the next step. The main purpose of selection is to choose individuals who are fit or qualified for the job from those that are available or responded to the advertisement or limitation to apply for the job vacancies, selection procedure involves the screening of candidates according to the progressive series of steps designed to eliminate those who in some ways are unsuitable. It involves submitting information or data on the applicant, aptitude test, interview and reference checks on the applicant and conducting physical or medical examination. Once an individual has been deemed fit to be employed, the person is offered an appointment letter and given the conditions of his/her appointment and responsibilities. The individual’s acceptance of the appointment is a contract to seal and accept the obligation of his/her appointment and perform his/her duties that assigned to him/her for certain remuneration. Orientation is the next process after selection. The candidates chosen are oriented on how things are done in the organization, the culture, philosophy, policy, mission , objectives of the organization , working hours, place of work, performance standards, benefits and facilities, and names of the immediate and other officers.Recruitment can be said to be effective if the strategy or method used by the organization works out for them perfectly well. The effect of recruitment can be measured by how many applicants generated from each of the recruitment sources. If more applicants are generated than there are positions to fill, the firm can be more selective. The problem is that more is not always better; the employer needs qualified, talented and hirable applicant.

1.2     Statement of the Problem

Recruitment and selection is a difficult task for organizations, it is difficult for them to search, recruit, and select talented people in today’s tight labor market because ofthe problem faced such as human errors, favoritisms and bias in their decision and which is also seen among the top management which has become a major problem to the management and also fewer qualified talents available. This shortage leads to absolutely essential for organizations to conduct effective recruitment, selection, and retain quality talents.

Acquiring the right talent is becoming an increasingly complex and challenging activity. It is expensive, time consuming, and high cost of employee turnover in time, money, and lost productivity.

The cost of finding the right person to hire can be hefty. Business advisor, William G. Bliss names various potentially high costs in the process: advertisement, time cost of internal recruiter, time cost of recruiter’s assistant in reviewing resumes and performing other recruitment-related tasks, time cost of the person conducting the interviews, drugs screens and background checks, and various pre-employment assessment tests. The company finds it difficult because of the cost involvedand also they don’t follow the policy. They frequent personal connection more than professional means. Some of the employees that came into the organization are partial, disloyal, not committed and their obedience lies only to the people that brought them in and this affect the success of the organization.

The success of a business or an organization is directly affected by the performance of those who work for that business. There is a linkage between Human Resource practices, competitive strategy and performance. Underachievement can be a result of workplace failures because hiring the wrong people can be costly, it is important that conscious efforts are put into human resource planning.

Therefore, it is the problem of this study to look into the recruitment and selection policy and practices of Dozzy group of companies in order to find the extent to which is a divergencebetween the policy and practice to know whether they are doing what is in line with the policy and getting the right kind of person for the job.

1.3     Objectives of the study   

  1. To identify if external sources of recruitment strengthens diversity of talent within the organization.
  2. To identify the recruitment practices used in selecting qualified talents in Dozzy Group of Companies.
  3. To examine the extent of bias in recruitment and selection exercise and its effect on employee productivity.

1.4     Research Questions

  1. Do external sources of recruitment strengthen diversity of talent within the organization?
  2. What are the various recruitment and selection practices in selecting qualified talents in Dozzy Group of Companies?
  3. Is there any significant relationship between bias in recruitment and selection exercise on employment?

1.5     Statement of the Hypotheses

This project is an attempt to find out how recruitment, selection and procedure is conducted in Dozzy group of companies. In this regard, the researcher formulated hypotheses. These hypotheses have null and alternative hypothesis.

Hypothesis 1

Ho: External sources of recruitment have no significant relationship on diversity of talents in the organization.

Hi: External sources of recruitment have significant relationship on diversity of talents in the organization.

Hypothesis 2

Ho:A recruitment and selection practice has no significant relationship on organizational productivity.

Hi:A recruitment and selection practices have significant relationship on organizational productivity.

Hypothesis 3

Ho:Bias in recruitment and selection exercise has no significant relationship on employment

Hi:Bias in recruitment and selection exercise has significant relationship on employment

1.6     Significance of the study

This study is highly significant as the main focus of this study is to investigate the effectiveness of recruitment and selection practices in Dozzy Group of Companies. Recruiting staff is a very costly exercise. It is an essential part of any business and it pays to do it properly. When organizations select the right people for the job, train and treat them well, they tend to produce good results and also tend to stay with the organization longer. In such circumstances, the organization’s initial and ongoing investment in them is well rewarded. An organization may have the best resources, but if it does not have the right people, it will struggle to achieve the results it requires. Significance of this study will help firms especially Dozzy group of companies to adopt measures in the context of human resource in relation to recruitment, selection, and the productivity. The firm will have the opportunity to identity the benefits of these practices and challenges facing their recruitment and selection practices in their organization and find lasting solutions to them.

The importance of this study stems from the fact that employment of workers involves first of all a deliberate process of manpower planning to determine the right kind of workers and right number of workers required for efficient and effective operation of the organization work.

1.7     Scope and Limitations of the study

Every research has its own challenges. Notwithstanding, this research had its own limitations. The geography of this research work is confirmed to Dozzy Group of Companies Onitsha. The study was focused on the investigation of recruitment, and selection practices in Dozzy Group of Companies Onitsha. This study covers two areas of the organization’s strategy for recruitment, and selection practices. These areas include the recruitment process, and the selection process. There are specific steps used to implement the organization’s recruitment process, and selection method in these areas. Job Analysis, Job Description, Job Specification, Selection Method, Interview Test, Recruitment Source, Internal source, External source, and Talents Qualification.Procedures will be assessed and several issues are found such as instruments of job analysis, recruitment process, internal and external recruitment and selection methods. These steps will be further discuss and analyze in this study.

In writing this research thus, one is bound to be confronted by certain constraints like time constraints, school schedules and financial handicap. At the company, getting the attention of the management, and other staff readiness to divulge information often turns difficult as most are completely engaged in their duties. Equally, the preparation and administering questionnaires all attracts cost which constituted to limit its spray.     Due to the combination of studies and work the researcher also did had limited time, but these limitations did not affect the validity of the study.

1.8 Definition of key terms

To make a research work such as this comprehensive to even an average reader, it is every important to define some salient features involved in the theme. These salient terms are defined as follows:

  • MANAGEMENT: The term management is defined as a process of planning, organizing, directing, coordinating and controlling material and non-material, or technology and physical resources toward achieving organizational objectives.
  • RECRUITMENT: Is the process of finding and attempting to attract job candidates who are suitably qualified and therefore capable of filling vacancies in job positions effectively.
  • SELECTION: it is the process of determining which job candidate or applicants suit the needs of the organization best.
  • POLICY: A plan of action agreed or chosen.
  • PRODUCTIVITY: Unit of output per work machine hour or total output/total input. It is the measure of how well resources are brought together in organization and utilized for accomplishing a set of results
  • EFFECT: the state being operative, functional. It also means to go into operation, begin to function, to produce result.
  • ORGANIZATIONAL: Structure of relationship so as to get the work done

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PROBLEMS OF RECRUITMENT IN THE NIGERIAN CIVIL SERVICE: (A STUDY OF ANAMBRA STATE)

CHAPTER ONE

INTRODUCTION

  • BACKGROUND OF THE STUDY

The word civil service in Oxford Dictionary means the government in a country.  The civil service handbooks (1976:15) also defines “Civil Service as a body or an organ of government, which enjoys continuity of existence and they all work on pensionable appointment, it comprises of all servants of the state other than holders of political and judicial officers who are employed in a civil service and whose remuneration is wholly and entirely out of money voted by parliaments.  Based on the above postulation, the recruitment into the civil services is vested in the federal civil service commission or State Civil Service Commission as provided by in the Nigeria Constitution.  With the civil service rule (1978), direct appointment to state public service may be made in any of the following as trainee on pensionable post hold or based on contract against a pensionable or post for specified period etc.

The availability of a competent and labour force does not just happen by chance but through an organized and articulated recruitment exercise.  Recruitment is a process or a set of activities used to obtain a sufficient number of the right people at the right time from the right place (Nicels et. Al 1999).  Its purpose is to select those who best meet the needs of the work

place, and to develop, maintain a qualified and adequate workforce through which an organization can fulfill its human resource plan.  The efficiency and effectiveness of any workplace (whether the private or the public sector) largely depend on the individual in the work. A recruitment process begins by specifying Human Resource requirements (numbers, Skill mix, levels, time and frame), which are the typical result of job analysis and human resource planning that activates the next phase in the recruitment process, which is attracting potentially qualified candidates to apply for vacant positions in an organization (Baid 1999) says recruitment is a process to do with quality of people, a company/organization can attract.  This can be done through (internal sources) and (external sources) which is within and out organization.  After the phase, the organization should device means of selection to help sort out the relative qualification of the job applicants and examine their potentials for being goods performers in a particular job (Jones 2000).  Those tools include applications and interviews which go into reference cheeks and test.  The essence of these recruitment activities is for the organization to appoint/employ the best applicant with the right ability, temperament and willingness for the job.  Recruitment of personnel for civil services is one of crucial tasks of modern government and it les in the heart of the problems of

personnel administration (Basil 1994).  The State and Federal Civil Service Commissions serve as employment agents for the Civil Services in Nigeria and they control the recruitment without a fee (Nwachukwu2000).  Specifically, the authority for recruitment into the State Civil Service is the State Civil Service Commission.  However, the Commission delegates powers to State Ministry and extra-ministerial departments to recruit junior staff to posts graded GL 01 – 06 (Gazali, 2006).

The state civil service system emphasizes uniformity, standardization and transparency (Babaru, 2003) in recruiting competent applicants.  Before the military takeover of government in 1966, the civil service has played a Central Role and a very important role that has sustained the system for a very long time and in that it has given the military that legitimate instrument or instructions it needed. The military was able to carry all Nigerians along in spite of their weakness and autocratic leadership.  For instance, in 1988, the then President and Commander-in-Chief of the Armed Forces of Nigeria, General Ibrahim Badmosi Babangida carried out some fundamental changes in the civil service in his 1988 Budget speech to the nation.  Incidentally, what appeared as a mere budget turned out to a major Structural Civil Service Reforms.  The Reforms touches many areas in civil service.  Remember the

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EFFECTS OF STAFF TRAINING ON EMPLOYEE PERFORMANCE IN THE PUBLIC SECTOR 2016-2021

Training is an essential component in ensuring that library customers have great experiences while they are there. According to Banjoko (2002), training is an organized process by which individuals learn information or skill for a specific goal; it is a method of equipping the employees, particularly the non-managerial personnel, with specialized talents. According to Abikoye (2002), training is the process of systematically altering the behavior, knowledge, and/or motivation of employees in a manner that is directed toward increasing the efficacy of the trainer and the achievement of organizational goals. According to Paradise (2007), training is defined as a structured way of learning and development that increases the productivity of individuals, groups, and organizations. Training, as defined by the Economic and Social Commission (2003), is a method for transferring information, fostering the development of skills, and bringing about changes in attitudes and behaviors. Training comprises improving one’s knowledge, abilities, and attitudes. These are the three most fundamental aspects that may be developed. According to Azino (2014), training in librarianship may be seen of as an organized planning process that is given to staff members of the library in order for them to develop technically useful abilities. Training, in the context of this study, refers to the process by which librarians learn new skills or procedures and, as a result, experience a shift in both their behavior and their attitude.
At its most fundamental level, training and development can be understood as any action that influences the behavior of individuals. It is frequently stated that increased productivity is the most essential justification for investing in training and development. Training and development are essential not only to increase productivity but also to motivate and inspire workers by letting them know how important their jobs are and giving them all of the information they need to perform those jobs, and librarians and library staff are not exempt from this requirement. Training and development are essential not only to increase productivity but also to motivate and inspire workers. According to Olaniyan and Ojo (2008), training and development of library employees has the potential to tackle a variety of manpower difficulties that inhibit institutions’ ability to achieve their maximum level of production. These can be summed up as follows: increasing productivity, increasing the quality of work, and raising morale of personnel; helping to develop new skills, knowledge, understanding, and attitudes for work; using rightly new tools and machines, processes, and methods; reducing waste, accidents, turnover, lateness, absenteeism, and other overhead costs in organizations; implementing new or changed policies or regulations; fighting obsolescence in skills and technologies; increasing p.o.s.t. (production output per hour worked
Employees development is a true instrument that institutions have at their disposal to enable them to make the most of the potentials possessed by their staff. According to The National Staff Development Council (2001), staff development offers direction for the creation of a professional development experience that ensures educators acquire the appropriate knowledge and abilities. [Citation needed] According to Treep (2012), staff development is a program that guides and encourages employees to acquire knowledge, increase their skills, and develop their abilities on an ongoing basis. Additionally, staff development is a coordinated effort to help employees learn to do their job better, and it also contributes to the continuous improvement of the organization through the growth and development of the individual in order to increase the effectiveness of all staff members.

An efficient program for staff development attempts to establish a discernible connection between the personal and professional development of staff members. According to Khan, Idress, and Khan (2013), the process of library staff development is one that focuses on the individual and professional development of employees and other professionals. Every organization strives to achieve the highest possible level of productivity by making the best use of the people and resources at its disposal. Without well-planned and executed staff training and development programs that are oriented toward enhancing the status and capabilities of employees, it will be difficult, if not impossible, to achieve optimal levels of productivity.

The purpose of the selection process is to locate candidates who have the knowledge and capabilities essential to successfully carry out the obligations of the position. However, new employees typically require some more training before they can truly contribute to the success of a firm. They have a duty to educate themselves on the nature of their workplace as well as the particular duties associated with their position. Additionally, it is necessary for them to become familiar with the policies and processes of the organization, as well as learn how they individually fit into the work group.

Azino (2014) argues, in support of the thesis made above, that human lifestyle can be significantly altered through the implementation of training and development programs. When someone refuses to be brought up to date, they risk falling behind the times. As a result of this, the following has been compiled as a summary of the benefits that come as a result of training and development: Increased knowledge, skills, and the development of positive behaviors and attitudes to work, increased organizational productivity and quantity products, improved workers’ moral, reduced turnover rate among workers, brings about sense of belonging among employee and reduces the rate of absenteeism, brings about better coordination of both human and non-human resources within the organization as it helps to save supervisors’ time and enhances employee’s chance for promotion.Download Full Material-N5000