THE NEGATIVE EFFECTS OF LACK OF EFFECTIVE TOOLS ON PRODUCTIVITY- A CASE STUDY OF FIDELITY BANK PLC

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THE NEGATIVE EFFECTS OF LACK OF EFFECTIVE TOOLS ON PRODUCTIVITY- A CASE STUDY OF FIDELITY BANK PLC

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Every business organization is established with the primary aim of producing economic goods and their service to maximize certain objectives (e.g profits, staff and stakeholders interests). The relationship that exists between organizations and resource input (e.g. trainings and development, negotiation for industrial peace, information technology, adequate marketing and financing as well as production facilities) is mutual in that they benefits from one another (Siegrist, 1990). This is because effective tools in the form of efficient resources in an organization booster performance or productivity. In other words, Inadequate or negative supply in a effective tools adversely affect productivity of an organization. For example when a marketing officer in an organization as bank is not properly trained with adequate information technology facilities (e.g.Mobile telephone and official car) not given, performance will likely fall short of expectations from him/her. Similarly, when necessary tools as computer, calculating machine, conducive working environment are not available for staff in an organization, productivity is bound to drop. Thus absence or invariably low attention in acquisition of skills and other necessary resources for an organization results into poor or ineffective qualitative and standardized performance either in goods or services.

In the words of Olise (2003) adequacy of effective tools for the running of an organization (i.e present and future expectation of business) allows for their efficient contribution to the production of goods and services. To him however, negative effect of non availability of needed tools for productivity is distress, liquidation, bank failure. To this effect, regular review of policies and program in the banking industries is a strong weapon curbing waste and losses in the relationship between resource input and output. It is so important and benefiting to effectively manage working tools if an organization wants to flourish.

Contributing Onuoha (1997) acknowledged that human resource training and development are indispensable aspect of effective organizational activities and have the following specific benefits to:

  1. Improve the quality and quantity of output.
  2.  Lower costs (error, production, services, etc).
  3.  Lower turnover and absenteeism by increasing employee job satisfactions through self esteem.

However, Kost and Rosenzweing (2002) argued that organizations failure of resource control and management development could lead to constant reduction in output which eventually may end in the form of loss as against profit. Moreover, if human resources are not motivated in an organization, there could be reported cases of negative attitude towards the organization, accidents may be frequency in production, hence the production people may have more scrap and wastage, more labour turnover owing to helpless induction. This may mean greater losses all rounds and it may result in a negative productivity for such an organization. In brief, training and development human resources of an organization (as an effective tool) according to Sherman (1992) have five basic benefits:

  1. It improves employee, team and corporate performance in terms of output, quality and speed.
  2. Improves operational flexibility by extending the range of skills possessed by an individual, thus aiding succession planning.
  3. Help to manage change by increasing understanding of the reasons and necessity for change and proving people with the knowledge and skills needed to adjust to new situations.
  4. Provide higher level of service to customers.
  5. Finally, it serves as a means of job satisfaction through skill enhancement and competence development.

On the contrary or as a demerit Wendell (1998) stated that organizational resource has fallen short of efficiency due to lack of necessary tools to improving efficiency in marketing, production, engineering and administration as well as in non-human recourses factors such as machines, methods, tools, equipment, etc.

  1. Statement of the Problem

The negative effect of lack of effective tools (staff welfare, training, acceptable leadership, style, adequacy of resource inputs, etc) has continue to pose a threat in the process, procedures and over all efficient performance and productivity of organizations, industries and Nigerian economy. Similarly, the challenges from the recent global economic meltdown has forced organizations and industries to neglect basic motivational factors to the employees and the provision of working tools (e.g. machine information/communication technology, adequate financial resources, experts or trained personnel, etc), hence production in goods and services are either below capacity or out rightly delayed. 

1.3       Objectives of the Study

The broad purpose of this study is to assess the negative effect of lack of effective tools on productivity in organizations a study of Fidelity Bank Plc, Lagos.

However, the specific objectives are;

  1. To determine if lack of effective tools lead to organizational failure.
  2. To examine if inability of organizations to develop given assets to given tasks and position results in poor performance.
  3. To determine if bureaucratic practice of organizations in determining resources adoption and application results into losses and error.
  4. To evaluate if there exists any relationship between organizational performance and improve welfare scheme of staff   
  5. To identify if the broad policy on organization growth is pursued by Fidelity Bank Plc reduce or eliminate job dissatisfaction.
  1.   Research Questions

Considering statement of the problem and purpose of the study, the following research questions were formed;

  1. Does lack of effective tools lead to organizational failure?
  2. Does inability of organizations to develop given assets to given tasks and position results in poor performance?
  3. Does bureaucratic practice of organizations in determining resources adoption and application results into losses and error?
  4. Is there any relationship between organizational performances and improve welfare scheme of staff?

Could it be true that the broad policy on organization growth being pursued by Fidelity Bank Plc reduce or eliminate job dissatisfaction?