ABSTRACT
The study has its objectives, to examine corporate
communication as a tool for change management-A study of First Bank of Nigeria
and Unity Bank. In addition, the study deepens in analyzing the effect of
change management as a tool to corporate communication. In the banking
industry, communication ensures the cooperation and support required to
successfully manage its organization and implement its change agenda.
The study
sketches a conceptional framework of organizational change and change
management and outline the empirical review as well a theatrical framework of
analysis, survey design was used and data were collected using histogram, mean,
and likert scale rating. Hypotheses were formulated to guide the study and were
tested using ANOVA test and reliability coefficient at 5% level of
significance. The result of the two hypotheses tested using ANOVA and
reliability test at 5% level of significance should that public relations
determine change management within First Bank and Unity Bank. It went further
to show that communication strategy employed by First Bank and Unity Bank
affect management change. The researcher recommends that workshops and
trainings should be giving to First Bank and Unity Bank staff to enable them
meet up with the challenges facing them.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Change denotes the transition that occurs when something goes from
being the same to being different. For example, water in the liquid state is
not the same as water in the frozen state. At some point, it underwent a
transition and became different. Change involves the introduction of new
procedures, people or ways of working which have a direct impact on the various
stakeholders within an organization. It entails moving from one state to another,
specifically, from the problem state to the solved state in a planned, orderly
fashion. However, as the 21st century is preoccupied with the concept of change;
the role of communication in actualizing change is gradually dawning on
organizations.
At the heart of change management lie the change problems – the
organized process for getting from the current state to be left behind and the
future state to be realized. The change problem might be large or small in
scope and scale, and it might focus on individuals or groups, on one or more
divisions or departments, the entire organization, or on one or more aspects of
the organization’s environment. Uncertainty and fear of the unknown are common
factors for resistance during change – employees do not always understand why
change is occurring and tend to be wary of moving away from the old. This is
where communication proves invaluable because people seem to move along the
change adaptability curve faster if they know what is happening to them.
One of the critical areas of successful change management therefore, is
communication, which involves consulting with stakeholders throughout the
change process, Communication is highly sensitive and crucial in building
trust, maintaining loyalty and productivity, and ensuring the cooperation and
support required to successfully implement the change. Strategic communication
is “a deliberate and planned approach to all communication activities, both for
internal and external audiences” (Sue, 2005). It is essential as it impacts on
the success of change. Strategic planning provides a mechanism for ensuring
that the right decisions are being made, and for the right reasons. Strategic
communication plan enables an organization to be proactive and be prepared for
any communication challenge or opportunities, which may arise from the
introduction of change.
Communicating change intent once by memo, therefore, is never enough,
it includes allowing time and resources for the transition itself – that in
–between stage when people involved are letting go of the old and embracing the
new. The ability to effectively and consistently keep an organization
top-of-mind and visible to all stakeholders is a critical component of success.
One aspect of business that is constant is that business processes will
constantly change as technology opportunities evolve. However, introducing new
technologies to advance business goals is usually unsettling, understanding and
acting upon inherent pitfalls in the process through communication can make the
process empowering.
Public relations help
an organization and its public adapt mutually to each other. Often, it is a
term used to describe both, a way of looking at an organization’s performance
and a program of activities. Public relations function takes many forms in
different organizations, including public information, investor relations,
public affairs, corporate communications, employee relations, marketing or
product publicity, and consumer service or customer relations.
Basic to all public relations, however, is communicating. Well-planned,
effectively handled communications are increasingly seen as essential to the
success and even existence of organizations in today’s changing world. Every
organization-government, business, labour, professional trade, health,
cultural, financial, recreational, educational and public service-depends on
people. Their attitudes, attention, understanding, and motivation can be
critical to the success or failure of an organization or idea.
Public relations, at its best, not only tells an organization’s “story”
to its publics, but also helps shape the organization and the way it performs.
Through research, measurement and evaluation, public relations professionals
determine the concerns and expectations of the organization’s publics and
explain them to management. A responsible and effective public relations
program is based on the understanding and support of its publics.
1.2 STATEMENT
OF PROBLEM
Effective organization is structured around two types of management
agendas. The ‘sustaining agenda’ which includes ongoing operational activities
related to programme delivery, human resources, finance and corporate services,
and this occupies about 90 per cent of an organization’s time and resources.
The other agenda which occupies the remaining 10 per cent of time and resources
is the “change agenda’. It includes activities designed to transform or
innovate the way business is accomplished by improving or changing elements of
the sustaining agenda. Crucial to those two agenda is Communication.
Communication ensures the cooperation and support required to
successfully manage an organization and implement its change agenda. Our daily
lives, are inundated with information. However, the world is moving beyond the
information age(in terms of data, facts) into the knowledge age (in terms of
comprehension, expertise, technical know-how). The information age is well
immersed and what is really needed is a way to sift and sort this information,
a way to gauge what is useful and what is not. Effective change management
occurs only if a change initiative is properly communicated to all and sundry
among other things, using the right communication strategies.
1.3 RESEARCH
OBJECTIVES
The main objective of
the research work is to, Examine the corporate communications as a tool for
change management-A study of First Bank of Nigeria and Unity Bank. More
specifically
1. To
investigate the extent public Relations can be regarded as an organ in change
management within First Bank and Unity Bank.
2. To
ascertain how public Relations practices employed by First Bank and Unity Bank
help in managing change.
3. To
examine how communication strategy employed by First Bank and Unity Bank brings
about management change.
4. To
find out the extent strategic communication affects organizational change
management of First Bank and Unity Bank.
1.4 RESEARCH
HYPOTHESES
Having formulated the study
objectives, the study will be guided by the following hypotheses.
1. Public
relations do not determine change management change within First Bank and Unity
Bank.
2. Communication
strategy employed by First Bank and Unity Bank affect management change.
1.5 RESEARCH
QUESTIONS
The study will be
guided by the following research questions
1. To
what extent could public Relations be regarded as an organ in change management
within First Bank and Unity Bank, Enugu.
2. To what extent will Public Relations
practices employed by First Bank and
Unity Bank help in managing change?
3. To
what extent will communication strategy employed by First Bank and Unity Bank
bring about management change?
4. To
what extent will strategic communication affect Organizational change
management of First Bank and Unity Bank?
1.6 SIGNIFICANT
OF STUDY
The study among other things will justify the essential role of public
relations in change management, as well as highlight the various communication
strategies that could be used during change intent. It will also serve as a
basis for future researchers who would like to explore similar subject, as well
as a reference point for those willing to equip themselves with the knowledge
the finding of the study will eventually generate and for the benefit of the organization
concerned.
1.7 PURPOSE
OF STUDY
Change is inevitable in any social set up or organization yet most
people and organizations detest it like leprosy. What will be the focus of this
study therefore is how communication and public relations practices could be
used in managing change.
1.8 SCOPE
OF STUDY
The study is delimited to the employees of the organizations under
study. Consequently, data are collected from the members of staff of Enugu
branches of the organizations.
1.9 PROFILE
OF STUDY ORGANIZATION
1.9.1 FIRST
BANK OF NIGERIA PLC.
Since the establishment of First Bank of Nigeria Plc. In 1894, the Bank
has consistently met growing market demands for financial services through a
process of Continuous reinvention. Its current customer centered architecture
combines service delivery through the traditional branch outlet with ease of
the automated delivery channel to create a customer service experience that is
strong choice, convenience and mass customization.
Since its establishment, the Bank has been strategic to the well being
and growth of the Nigeria economy. Consequently, it has remained the most
portable banking franchise in Nigeria, with group profit after tax of NGN 36.54
billon in the financial year ended March 31, 2007. Under pinning this success
is the Bank’s strategy, with its focus on the two critical imperatives of
modernization and growth.
With 453 business locations as at March 31, 2007 the Bank has one of
the largest domestic sales net works in Nigeria, all online in real time. As a
market leader in the financial services sector, First Bank pioneered
initiatives in international money transfer, master card, inters witch and ATM
consortium. It is the industry leader in terms of value and volume of ATM
transactions in the country.
1.9.2 UNITY
BANK PLC
Unity Bank Plc was incorporated in May 1945 as a private limited
liability company and commenced business operations as a commercial bank in the
same year. The Bank was converted to a public limited liability company in
April 1987 and was subsequently listed on the floor of the Nigeria stock
exchange in January 1990. On February 5, 2001, the Central Bank of Nigeria
granted a Universal banking License to the Bank, thus allowing the Bank to
undertake a wide range if financial services to its numerous customers across
the country.
The Bank has witnessed tremendous growth and development in branch
network, quality of service delivery and overall financial performance in the
last two decades. It embarked on a process of cooperate transformation that has
resulted in the emergence of a restructured Unity Bank Plc, strategically
positioned to fully optimize opportunities in the industry. Unity Bank Plc is
adequately capitalized, shareholders’ funds is in excess of N25 billion and
asset base is N165 billion. Presently, Odu’ a Investment Company Limited holds
10% equity stake in the Bank, while private individual investors and staff of
the Bank own the remaining 90%. The authorized share capital of the Bank is N7,
000,000,000.00 divided into 14,000,000,000.00 ordinary share of 50kobo each.
With banking operations spanning sixty-two years, Unity Bank Plc is
reputed to be the longest surviving indigenous bank in Nigeria. Unity Bank Plc
is a customer-focused bank. We take delight in learning the intricacies of our
customers business and preferences, thus the byline “taking you to greater
heights”.
1.9.3 PRODUCTS
AND SERVICES
· Corporate Finance
o
Corporate finance
packages include:
o
Capital Market
operations
o
Mergers and
acquisitions
o
Capital
Restructuring
o
Venture Capital
o
Project Finance
o
Investment
services/Advisory
o
Portfolio
Management
These products are available to customers and non- customers of the
Bank alike. The guiding philosophy is to proffer value-adding solutions to
“customers” debt/equity management problems.
1.9.4 Commercial
Banking
The Commercial Banking department manages the relationships of middle
level companies, small businesses and trading clients. The department, which is situated at the head
Office, has the following sectors under it.
Key Distributorship Schemes- Guinness Nigeria Plc, Nigerian Breweries, Flour Mills
Plc. Etc. Unity Bank Plc was officially approved in September 2003 by Guinness
Nigeria Plc to participate in the key distributorship scheme along with six
other banks. Apart from Guinness Nigeria Plc, credit facilities are also
granted to key distributors of other producing companies in Nigeria e.g.
Nigeria breweries Plc and Flour Mills Plc.
Agricultural Services - The sector is one of the real sectors of the
economy. The bold step of the present civilian government has brought about a
great boost in agricultural production in the country. The sector has in its
agric portfolio, various companies in the areas of fish farming, animal
production, cash crop production etc.
SMIES - The
sector identifies investment opportunities and, deal flow/ screening and
investment structuring
1.9.5 PUBLIC
SECTOR
The Public sector Group provides a one-stop market for customers and
prospects in the three tiers of Government, Parastatals, Commissions and
Institutions of higher learning. It provides the following services. Current Account Plus overdraft Facility
(Capof) - designed for Local Government Councils to assist them in bridging
the gap between payment of salaries and receipt of their monthly statutory
allocation.
Higher Institutions Funding Account (Hifa) - designed for higher institutions of learning to
facilitate the completion process of capital projects pending the receipts of
its grant.
1.9.6 Revenue
Collection Services
Federal Inland revenue
Services Collection:
1. Value Added Tax
2. Company Income Tax
3. Capital Gain Tax
4. Stamp duty
5. Withholding Tax
6. Personal Income Tax
7. Pre-operational Tax
8. Petroleum Taxes
9. International Taxes - Payment via Swift
instruction.
State Revenue
Collection
1. Lagos States Taxes - payable Bank wide
2. Ogun State Taxes - payable Bank wide
3. Lagos Water Revenue - All Lagos Branches
4. Lagos Waste Collection
Customs Duty payment
All branches nationwide collect on behalf of the Federal Government of
Nigeria, NITEL and NEPA Bills as well as sell forms of institutions of learning
and professional bodies.
o
Relationship
management.
o
Provision and
administration of Bonds and Guarantees
o
Provision and
administration of loans and advances
1.9.7 RETAIL
BANKING
Retail banking department is a group saddled with the responsibility of
abridging the financial needs of the lower and the middle classes of the
economy by making available financial supports for the creation of retail based
risk assets and liabilities with the ceiling amount of not more that N20million
turnover in six months. Retail Banking issues, amends and pays on performance
bonds given by one party to another against loss or violation of the contract.
This may be used to support a customer’s promise to deliver goods or guarantee
obligation to complete a project.
Overdraft Facility - This facility is structured to augment customer’s working capital by bridging the gap that
may arise as a result of the cash inflow and outflow.
Leases –
This is a facility that allows customers to acquire assets like equipment,
plant and machinery while repayment is structured to allow payment of monthly
rentals without undue pressure on the customer’s incomes
Term Loan –
This facility has longer tenor than overdraft. It is used to meet long term
business needs such as business expansion and procurement of large plants.
Import Finance-
This is a facility type that enjoys flexibility of options. Unity Bank
introduces options that meet the need of their customers in relation to
cost-effectiveness. These options include standby letter of credit and
collection obligations, bankers’ acceptance etc.
Export finance
– Unity Bank extends facilities to their customers to meet international
transactions at various stages; from production to shipping of the goods to
buyers and collection of the proceeds.
1.9.8 INSTITUTIONAL
BANKING
Institutional Banking activities are specifically structured to provide
excellent services to multinationals and corporate clients. In adding to
quality services, it place premium on mutual business relationship built around
in-depth understanding of client’s business so as to tailor products and
efficient services to meet their precise business needs. Businesses are
segregated into groups and products are packaged to take care of financial
needs. The Directorate provides first class financial services and advice to
the following clients:
1. Conglomerates & Multinationals.
2. Corporate institutions
3. Energy Companies
4. Telecoms Operators
1.9.9 TRADE
FINANCE
The department relates
with the Pre-Shipment Inspection Agents, Nigerian Customs and other relevant
authorities in the processing of import documents such as
1. Approved Form ‘M’
2. Original Final Attested invoice
3. Bill History
4. Bill of Exchange
5. Bill of Lading
6. Exchange Control Documents i.e. customs
clearing documents
7. Clean Report of Inspection (CRI) and
Customs Duty Receipts.
8. Customer’s Authority to pay.
Documentary Credits:
Establishment of
Letters of Credit such as:
o
Irrevocable Clean
Confirmed Letter of Credit
o
Irrevocable Cash
Confirmed Letter of Credit
o
Irrevocable
Unconfirmed Letter of Credit
o
Discounting
Letter of Credit Facility
Invisible Trade Transactions:
o
Business &
Personal Travel Allowance
o
Subscriptions,
School Fees & Maintenance Allowance
o
Dividend &
Royalties Payment
o
Medical Expenses
o
Technical
services Agreement
o
Management Fees
o
Capital
importation/Repatriation
o
Personal Home
Remittance
o
Foreign Cheque
Clearing
o
Collection of
Funds Overseas
Export Services & Domiciliary Accounts
o
Maintenance of
Domiciliary accounts both in cash and inflow basis.
o
Processing of N
& P forms for Exportation business.
TREASURY
Unity Bank treasury department specializes in placement and deposits of
funds amongst banks usually dominated in local currency - Naira and foreign
currencies. Treasury department also specializes in the management of accounts
of other financial institutions.
Unity Open Plan Account (UOPA)
. Share Acquisition Savings Account
(SASA)
. Artisan/Apprentice Savings Account
(ASSA)
. Marital Savings Account (MASA)
. XMAS/Sallah Savings Account (XSSA)
. Pilgrimage Savings Account (PISA)
. Household Appliances Target Savings
Account (HATSA)
. Save and Grow Education Savings
account (SAGESA)
. Retirement Savings Account (RESSA)
. Home Ownership Savings Account (HOSA)
. Vacation Savings Account (VASA)
UAAS
Unity Assets Acquisition Scheme was introduced to ease the financial
burden of customers and non-customers alike wanting to acquire various assets
and house hold equipments. The product is targeted primary at salary earners
wanting to acquire personal assets like cars, satellite dish, gas cookers,
personal computers, refrigerators, washing machines, air-conditioner,
generating set, electronics, deep freezers etc.
Unity Inland Funds
Transfer – for easy local money transfer. Unity inland Transfer (UIFT) is for
both account and non-account holders
Western Union Money Transfer – Foreign currency is received by customers from any
part of the world in a reliable, fast and efficient manner. Money sent to
Nigerian from any part of the world can conveniently be cashed at any of the
branches nationwide. This service made possible by Western Union enables
millions of people all over the world to remit money to their friends,
relatives and family.
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