EFFECTSOFMOTIVATIONONEMPLOYEEPERFORMANCE:ACASESTUDY

OF GHANACOMMERCIALBANK,KUMASIZONE.
BY
THOMASOWUSU

AReportsubmittedtotheKhadimAliShahBukhariInstituteofTechnologyinPartial
fulfillmentoftherequirementsforthedegreeof

MASTERSINBUSINESS
ADMINISTRATION
KhadimAliShahBukhariInstituteofTechnology

April,2012

DECLARATION
IherebydeclarethatthissubmissionismyownworktowardsthecommonwealthExecutive
MastersinBusinessAdministrationandthat,tothebestofmyknowledge,itcontainsno
materialpreviouslypublishedbyanotherpersonnormaterialwhichhasbeenacceptedforthe
awardofanyotherdegreeoftheUniversity,exceptwheredueacknowledgementhasmadein
thetext.

ThomasOwusu
.................................
.................................
StudentID:PG3086609
Signature
Date

Certifiedby: .................................
Mr.YinLuu Signature

.................................

Date

(Supervisor)

Certifiedby:
Prof.I.K.Dontwi
DeanIDL,

.................................

Signature

Date

.................................

ii

ABSTRACT
Theintroductionofuniversalbankinglawhasbroughtchangesovertheyears,withitstiff
competitioninthebankingindustry.Commercialbanksarenoexceptiontothemodern
changesinensuringstaffmotivationtowardstheirorganisationalgoals.Thestudyseeksto
assessthemotivationalpackagesavailableatGhanaCommercialBankandhowitaffects
employee performance towards the Banks corporate objectives. The survey research design

wasusedforthestudy.Thestudyrevealedthat,managementcanmakeuseofdifferent
strategiesandpoliciestomotivateemployeesinthebankingenvironment.Employeesare
interestedinenhancedsalaries,fringedbenefits,promotion,andcarloansasmotivating
elementssufficienttopushemployeesofthebanktogiveouttheirbest.Theresearchalso
revealedthatthecoredutyofthebankisnormallycarriedoutbyclericalswhoaremorethan
thesupervisorsandassuchmotivationalpackagesshouldbegearedtowardstheclerical
workerstoensurethattheydelightthecustomers.Promotionhasbeenaworrytomoststaff;
measuresshouldbeputinplacebymanagementtoensurethatthereiscontinuityinthe
promotionofstafftoavoidlowproductivityintermsofdepositmobilisation.Thestudy
revealedthatifmanagementwithdrewmotivationalpackagesitwillhaveserious
repercussions on employees performance. There was a positive relation between employee
performance and corporate performance since employees were able to achieve the bank s

performanceindicatorsintermsofdeposits,loanrecovery,profitabilityandalsoensuringthe
liquidityofthebanks.Theconducivenessoftheofficeenvironmenthasfirsttimeimpression
onthecustomersandthewelfareoftheemployees.Managementcandevelopnewtheories
suchasequity,macllendtheory,AbrahamMaslowandHertzbergtwofactorstoensure
employeesachieveworktargets.

iii

ACKNOWLEDGEMENT
MysincerethanksgototheAlmightyGodformakingitpossibleformetofinishthisproject
work.Iamverygratefultomysupervisor,Mr.YinLuuofUniversityforDevelopment
Studies,forallthenecessarysupportaccordedduringtheproject.Iwanttothankallmy
friendsespeciallyMr.S.KwakuAdjeioftheBusinessSchoolofUniversityofCapeCoast,
MissKwaraBintu,Mr.OwusuSekyereandMr.KwameSiaw.

iv

DEDICATION
Idedicatethisworktomywife,MissPriscillaAzumahmyson,JuniorKofiOwusuandthe
entireOwusufamily.

TABLEOFCONTENT

CONTENT

PAGE

DECLARATION

ii

ABSTRACT iii
ACKNOWLEDGEMENT iv
DEDICATION

TABLEOFCONTENT

vi

LISTOFTABLES ix
LISTOFFIGURES ix

CHAPTERONE
INTRODUCTION

Pages

1.1Backgroundtothestudy 1
1.2Statementoftheproblem 3
1.3Objectivesofthestudy

1.4ResearchQuestions

1.5SignificanceoftheStudy 5
1.6ScopeoftheStudy

1.7OrganisationoftheStudy
CHAPTERTWO
LITERATUREREVIEW

2.1Introduction
vi

2.2HistoryoftheBankingindustryandGhanaCommercialBankin
Ghana 7
2.3Motivationandcorporateperformanceinthebankingsector
2.4PerformanceMeasurement

11

25

2.5ChapterSummary 33
CHAPTERTHREE
METHODOLOGY
3.1Introduction

35

3.2ResearchDesignofthestudy

35

3.3Population,SampleSizeandSamplingTechniquesforthestudy
3.4DatafortheDesign

36

3.5DataAnalysisandPresentation 37
3.5.1Motivation

37

3.5.2JobSatisfaction 37
3.6OrganisationalStructureofGhanaCommercialBankLimited 38
CHAPTERFOUR
PRESENTATION,ANALYSISANDDISCUSSIONOFDATA

35

4.1Introduction

40

4.2SocioDemographicstatusofRespondents
vii

40

4.3MotivationalPackagesinGhanaCommercialBank

47

4.4EffectsofMotivationalpackageonEmployeePerformance
4.5EffectsofMotivationalpackagesonGhanaCommercialBank
Performance 58

5.0CHAPTERFIVE
SUMMARY,CONCLUSIONANDRECOMMENDATIONS
5.1Introduction

69

5.2SummaryofMajorFinding
5.3Conclusion

69

72

5.4Recommendation 74
REFERENCES

77

APPENDIX A Questionnaire

84

APPENDIX B List of tables

88

APPENDIX C MAP OF GCB LTD

94

55

viii

LISTOFTABLES
Table Page
4.1KindsofmotivationalpackagesforrespondentsofGCBLimited
4.2SuggestedAlternativeAdequacyLevelsofPackages

48

53

4.3Selectedbranchesofperformancereportfor2009/201 64
4.4ComparisonofkeyperformanceindicatorofGCBwithotherbanks

67

LISTOFFIGURES
Figure Page
2.1: hierarchy needs of Abraham Maslow ....14

4.1GenderofrespondentsinGCBLimited 42
4.2DesignationofrespondentswithinGCBLimited43
4.3CoredutiesofrespondentsofGCBLimited

45

YearsrespondentshavebeenworkingwithGCBLimited

47

4.5Importanceofmotivationalpackageofrespondents

51

4.6Incorporationofrespondentsviewonmotivationalpackage

52

4.7Arepackagesenoughtomotivateemployeestogivetheirbest 53

4.8Conduciveofofficeenvironmenttoenhanceworkoutput

55

4.9Influenceofmotivationalpackageonemployeeperformance

57

ix

4.10Employeeisabletoachievethesamelevelsofoutputwithoutmotivational
packages

58

4.11Effectsofmotivationalpackagesonrespondentoutput 58
4.12EffectofmotivationalpackagesonGCBperformance 60
4.13FinancialHighlightofGCBAnnualReport

63

CHAPTERONE
INTRODUCTION
1.1Backgroundofthestudy

Thecommercialbanksplayimportantrolesinworldwideeconomiesandtheiremployeesare
thebestsourcesofdeliveringgoodservicestotheircustomers.Excellentservicesprovided
andofferedbyemployeescancreateapositiveperceptionandeverlastingimageintheeyes
of banks customers. The motivationofabanks employeeplaysamajorroleinachieving
highlevelofsatisfactionamongitscustomers(Petcharak,2004).
Thefinancialservicesindustryisoneofthemostcompetitiveandhighlyglobalisedsectors
duelargelytotheextensiveuseofinformationtechnologysystemsbyfirmsoperatinginthe
sector.Despitethefactthatinformationtechnologyhasbecomethebedrockofallcompanies
inthefinancialsectoratthegloballevel,humancapitalstillremainsthedrivingforceinthe
highlydigitalfinancialservicesindustry,becausenotallthefunctionsperformedbyfinancial
institutionscanbeundertakensolelybyelectronicdevicessuchasautomatedtellermachines
(ATM),computersorothersimilardevices.Whereevenelectronicdevicescan,the
organizationstillrequireshumanbeingstooperatethem.
Ombatietal.(2010),statedthatservices,bydefinition,areintangibleandcanbedividedinto
hightouchorhightech services. Hightouchservicesaremostlydependentonpeopleinthe
serviceprocessproducingtheservice,whereashightechservicesarepredominantlybasedonthe
useofautomatedsystems,informationtechnologyandothertypesofphysicalresources.For
example,hightechservicesincludeInternet/Telephone/ShortMessagingService(SMS),

ATMswhereashightouchservicesconsistofinstructionsandpersonnelassistanceinusing
theservices.

Evenwiththeprovisionofthesehightechservicesbyelectronicdevices,someamountof
humaneffortisrequiredtoserviceandmonitortheequipmentusedintheprocessof
deliveringtheservice.Therefore,financialinstitutionsstillneedtorecruitandretainsome
levelofqualifiedandselfmotivatedstaffinordertobecompetitiveinthecurrentglobalised
andturbulentfinancialservicesindustry.
Incaseofusinghumanbeingstoprovideservices,itisnotenoughtomerelyrelyonthe
numberofpeopleengaged,theirqualificationandexperienceortheirabilitybutremunerating
themappropriatelyisalsoofparamountimportance.Thepersonnelengagedmustbe
motivatedinordertogetthebestoutputfromthem.Manycaptainsofindustriesbelievethat
thekeytoimprovestaffperformanceandproductivityinanyareaismotivationratherthan
ability.BatemanandSnell(1996),contendthatmotivationistheforcethat
energizes, direct and sustains a persons effort towards the achieve mentofagoal.Ahighly
motivatedpersonwillworkhardtowardstheachievementoforganizationalgoal,giventhe
ability and adequate understanding of the job. Therefore, the challenge for today s

managementistoadministermotivationalprogrammeswhichwillencourageemployeesto
improvetheirworkperformanceandproductivity.Tothisendmoderndaymanagersof
companiesinthefinancialservicesindustriesarethereforeadoptingvariouskindof
motivationalpackagesnotonlytoretainemployeesbutalsohelpthemtoachievecompetitive
advantageinthemarket.

1.2Statementoftheproblem
AccordingtoBankofGhanareport(2009),theintroductionoftheBankingActof2002,Act
612andtheUniversalBankingActof2007,Act673anditsamendments,thebanking
industryhadgrowninnumberswithalotofmultinationalbanksopeningmorebranchesin
Ghana.SincetheenactmentoftheseActs,thebankingindustryinGhanahadbothincreased
innumbersandcapitalbased.Theliberalizationofthebankingindustryhastherefore
engenderedfiercecompetitioninthesector.
AccordingtoMichaelPortersfiveforcesstrategymodel,freeentryandexitofnewfirmsinto
acompetitiveindustryormarketcomeswithitsassociatedopportunitiesandtreats.Therefore
theliberationofthebankingindustrycomeswithitopportunitiesandtreatstoexistingbanks
includingGCBlimited.ThelevelofmotivationstodeterminewhethertheemployeesofGCB
arewellmotivatedtostayinthebankorareleavingthebankandjoiningthenewbanksisof
greaterconcern.
Thiselementofeasyentryandexitofnewfirms,asinMichaelPortersModel,bringssome
challengestotheexitingbanksintheGhanaianbankingindustry.Thesechallengescanbe
categorizedintooperationalandhumanresource.
OperationalChallengesTheseareassociatedwithproductsinnovation,waiverofsome
restrictivepoliciesonsomeservicedeliveries,customersorientedbankingratherthantask
oriented,liberallendingprocessesorfasttrackingofloans/advancedisbursement,improved
technologicalsystem,reductionintheprofitabilityandnewpromotionalstrategy,increased
internalrivalry/competitionamongthebanks,andlossofcustomersanddepositsleadingto
unstableliquidityofthebanks.
HumanResourcechallengesThreatsintheseareasinclude:volatileloyaltyand
commitment, potential defective morale, employees taste for different motivational
packagesandincreaseinthecostofrecruitmentandplacing.
3

Anyofthesecanaffecttheperformanceofthebanksinthebankingindustry.Thelikelihood
ofpotentialandexperiencestaffmovingfromexistingbankstothesenewbanksisasource
ofworrybecausetheyneedtobereplacedatahighercosttofillthegap.Alternatively,the
residualstaffwouldhavetobeappropriatelyremuneratedtoworkextrahardtosustainthe
servicedemandontheirbank.
Theconcernsthisresearchaddressesarethevariousmotivationsthatcanpushemployeesofa
humanresourcechallengedbanktooutperformandraisetheservicedeliverystandardof
theirbank.Inotherwords,howcanGCBpushtheexistingemployeessothatperformance
targetscanbeachieved?Theseissueshavenecessitatedthestudytoassesstheeffectof
motivationalpackagesonemployees performance. The question then is whatmusttop
managementdotoensurethatemployeesperformwellinthebank?
1.3Objectivesofthestudy
Thegeneralobjectiveofthestudyistoinvestigatetheeffectofmotivationalpackageson
employeeperformanceatGCBLimited.Thespecificobjectivesare:
ToassessthevariousmotivationalpackagesforthestaffofGCBLtd.
TodeterminewhichofthesemotivationalpackagesinfluencestaffperformanceatGCBLtd.
ToassesstheeffectofmotivationalpackagesoncorporateperformanceatGCBlimited.
Researchquestions
Theresearchwilladdressthefollowingspecificquestions:
WhataretheemployeemotivationalpackagesatGCBLtd?
WhichemployeemotivationalfactorsaffecttheperformanceofGCBLtd?
4

InwhatwaysdoemployeemotivationalpackagesaffectperformanceofGCBLtd?

Significanceofthestudy
Thestudywillbevitalinsomanyways.Itwouldreveal:
Whetherthesepackagesenhancestaffperformance;and
Howmanagementcanstrategicallymaximizethehumanresourcepotentialsofthe
organizationtothefullestinthemidstofthenewentrants.
Thefindingsofthestudywillthereforeprovidevitalinformationtopolicymakersandhuman
resourcemanagersofthebanktoeitherconsolidateorrethinkwaysofmotivatingstaffofthe
bank.Theresultsofthestudywillalsoaddtotheexistingbodyofknowledgeontheissueof
motivationandproductivityinthebanksector.Finallytheresearchisinpartial
fulfilmentoftheKNUSTSchoolofGraduateStudies requirementsfortheawardofa
postgraduatedegree.
1.6Scopeofthestudy
ThescopeofthestudywaslimitedtotheKumasiZoneofGCBLimited.TheKumasiZone
ofthebankconsistsoftwentytwo(22)branchesandseven(7)divisions.Allthetwenty
branchesanddivisionswerecovered.Mosttheoriesofmotivationandemployeeperformance
conceptswereconsidered.Limitedresourcesandtimeconstraintsaffectedthecompletionof
theprojectontime.Therewaslessparticipationfromrespondentsduetothebusyschedule
duringtheday.
1.7Organizationofthestudy
Thestudyispresentedinfivechapters.Thefirstchapterwhichistheintroductioncoversthe
backgroundofthestudy,problemstatement,objectivesofthestudy,researchquestions,5

significanceofthestudy,aswellasthescopeandlimitationsofthestudy.Thisisfollowed
bychaptertwowhichreviewedextensiverelatedempiricalliteratureonthesubjectmatter.
Amongthevarioustopicstobecoveredincludeconceptsofmotivation,productivityin
relationtojobperformance,depositmobilizationandprofitability,theprofileofGCB
Limited,performanceappraisal,andtherelationshipbetweenmotivationalpackagesand
employeesperformance.
Chapterthreelookedatthemethodologyoftheresearchwhichcomprisestheresearch
design,theresearchpopulation,sampleandsamplingtechnique.Italsoconsideredthe
sourcesofdataanddatacollectioninstruments,methodsofdatacollectionandanalysis.
Chapterfourisdedicatedtodataanalysis,findingsanddiscussions.Finally,chapterfive
dealswithasummaryofthestudy,conclusionsdrawnfromthefindingsand
recommendationsofthestudy.

CHAPTERTWO
LITERATUREREVIEW
2.0:Introduction
Thischapterreviewsrelatedempiricalliteratureonthesubjectmatter.Therelevantliterature
willbereviewedunderthefollowingoutline:Developmentofmodernbanking,motivation
andcorporateperformanceinthebankingsector,levelsofemployeemotivation,performance
measurement,andchaptersummary.
Thepresentationonthisliteraturenowfollows.

2.1:HistoryoftheBankingIndustryandGhanacommercialBankinGhana
AccordingtoBadu(1994),modernbankingsystemoperatingoriginatedfromMediterranean
EuropeandlaterspreadtoNorthernEurope.InEnglandforinstance,thegoldsmithwerevery
influentialintheevolutionofmodernbankinginthecountryduringthemidseventhcentury.
SimilarlyinIran,modernbankingbegantoemergeinthemidnineteenthcentury.Banking
wasintroducedtoAfricabytheearlyEuropeantradersinthelastthreeCenturies.Modern
bankinginAfricancountriesstartedwiththeachievementindependencebythesecountries;
forexample,soonafterindependencein1957,GhanaestablisheditsCentralBank.Thiswas
followedbytheestablishmentofstateownedcommercial,developmentandinvestment
banksinthecountry.NigeriaalsoestablisheditsCentralBankin1960afteritsindependence.
Thebankingsystemperformstwovitalfunctionsinadditiontotheprovisionofcredit.These
arematuritytransformation,andrisktransformation(Badu,1994).
Enewetal.(2007),contendthatcommercialbankingstarteddevelopingsignificantlyfrom
the19thCenturyonwards.Banksgrewinresponsetotheneedforservicessuchasloans,safe
depositandfinancingofconsignmentsofexportedandimportedgoods.Theservices
renderedbybankscanbegroupedintotwobroadheadings:(i)lendingandcredit,and(ii)
7

saving and investing. In simple terms,aloanrepresentsthegrantingofaspecificsumof

moneytoanindividualororganizationforthemtospendpersonallyinrespectofsome
specific,previouslyagreeditem.Credit,ontheotherhand,referstoameansoffinancingan
itemoritemsofexpenditurewherebythefundsaretransferredtotheproductprovider
directlybysourceofcredit.Savingandinvestingarethereciprocaloflendingandcredit.
Savingandinvestingconcernthesacrificingofpresentconsumptioninordertoprovidefor
some future event or requirement. The term savings is used to describe a process
associatedwiththeaccumulationofalargerfundthroughregularcontributions,whiletheterm

investment is used to describe the process of managing a lumpsumforthepurpose

earning recurrentincomeorforcapitalgrowth(Enewetal.,2007).
Beforeindependence,twooverseasbranchesofBritishcommercialbanksdominatedthe
bankingsceneinGhana.Withtheabolitionoftheslavetradebusinesses,economicactivity
shiftedtothegatheringandprocessingofawidevarietyoftropicalproductsincluding
ginger, groundnuts, monkeys skin, palm kernel etc which were in high demand for export to

Britain.Thecolonialmastersthereforesawtheneedtoestablishabanktoofferthebasicbanking
servicesandtoadministertheissuanceofcurrencyfortrading.Inthisdirection,Ghanahassince
thelatenineteenthcenturydevelopeditsbankingsector.ThefirstbankcalledtheBritishBankof
WestAfrica(BBWA),nowStandardcharteredBankwasestablishedinGoldCoastin1896.
(www.standardchartered.com01/02/2011)TheBBWAenjoyedsomelevelofmonopolyuntil
1917whenanothercolonialBank,nowBarclaysBankLtdwasestablishedin
1918(www.barclaysbankofGhana.com01/02/2011).ThemainmotivesoftheseBankswereto
meetthefinancialneedsofthecolonialistsandthemerchants.Becauseofthis,theservices
offeredwereinfavourofthecolonialmasterswithoutregardto
theindigenes.Consequently,anordinancefortheestablishmentofanativebankcalledBank
8

ofGoldcoastwaspassedinOctober1952.ThebankofGoldCoaststartedoperationin1953
withtheaimofmeetingthebankingneedsoftheindigenouspeople.TheBankofGoldcoast
wastaskedwithtwomajorfunctionstoactasacentralbankandacommercialbankaswell.
(www.barclaysbankofghana.com(01/02/2011),www.standardchartered.com01/02/2011).
UntiltheliberalizationoftheGhanaianeconomy,beginningfromtheearly1980,thebanking
industryinthecountrywasdominatedbyafewbankswhichwereeitherforeignor
governmentownedandwerehighlyspecializedandthereforerestrictedintheirareasof
operations.SomeofthesebanksincludedBarclaysBank,StandardCharteredBank,
AgriculturalDevelopmentBank,andGhanaCommercialBank.However,aspartofthe
measuresoftheeconomicliberalizationofthecountry,severalenablingActswerepassedto
promotefreetradeandcompetitioninthesector.TheseActsincludedamongothersthe
BankingActof2002,Act612andtheUniversalBankingActof2007,Act673andtheir
amendments.SincetheenactmentoftheseActsthebankingindustryinGhanahaveboth
beenliberalizedandrevolutionaries.Whilemanynewcommercialbanksenteredintothe
Ghanaianbankingindustry,existingcommercialbanksareincreasinglyexpandingtheir
operationsbyopeningmanynewbusinessofficesalloverthecountry.Currently,all
commercialbanksinthecountryofferuniversalbankingservicesacrossthecountry,with
someevenventuringintomicrofinancing.Thishasledtoablurinthedistinctionbetween
commercial,developmentandinvestmentbankseventhoughsomebanksinthecountrystill
bear commercial, development, or investment as part of theirnames.Currently,
there are27universalbanksand135ruralbanksoperatinginthecountry
(http://en.wikipedia.org/wiki/ListofbanksinGhanaaccessedon19/06/2010).Thus,avariety
ofbankingserviceshavebeenintroducedandbroughttothedoorstepsofboththeordinary
customersandbusinessentitiesinthecountry
9

BeforetheenactmentofthecurrentBankingActsinGhanathemajorbanksoperatinginthe
countrywereclassifiedintothreegroupsaccordingtothefunctionstheyplayedviz:
commercialbanks,developmentbanks,andmerchant/investmentbanks.Thethreepillar
bankingstructureinthecountryhasbeenreplacedwithauniversalbankingsystemwhere
therearenobarriersinthebusinessareasofoperation.IndeedGhanaadopteditscurrent
systemofuniversalbankingfromthedevelopedcountrieswhosebankingindustriesarefar
advanced(BankofGhana,2010).
GhanaCommercialBankLimitedwasestablishedasaresultoftheneedtoprovidefinancial
servicestotheindigenesofthethenGoldCoast.Consequently,anordinanceforthe
establishmentofanativebankcalledBankofGoldCoastwaspassedinOctober1952.The
bankofGoldCoaststartedoperationin1953.
After Ghanas independence in 1957, the Bank of Gold Coast was renamed Ghana
Thestudyseekstoexaminewhetherthevariousmotivationalpackagesforstaffofthebank
haveachievedtheirtargetedobjectivesintheareaoffirstclasscustomerdelivery,job
performance,profitabilityandimprovedshareholdervalue.
Ithasbeenreportedthatthebankhasfulfilleditsmandateandcontinuestoachieve
remarkableproductivityinitsareaofoperations(GCBAnnualReport,2010).Asattoday,
thegovernmentownershipstandat26.14%whileinstitutionalandindividualholdingaddup
to73.86%ofwhichSSNITisthemajorityshareholder(GCBAnnualReport,2010).
Fromthestartofonebranchinthe1950,GCBLtdnowhas157branches,l05ATMsand15
agencies(GCBDiary,2008).GCBisendowedwithhighqualityhumanresourcewhich
standsat2185.Thisisremarkablewhenoneconsiderthatthebankstartedwithstaffstrength
of27andasbranchesincreasedsodidthestaff.Currentlythereareprofessionalsofvarious
disciplineswhoworkintandemtoachievetheobjectivesofthebank.10

Thebankhadgrownthroughthisdivestureeraandhadseveralbranchesacrossthebreadthof
thecountryandalmostoperatesineverydistrictofthecountry.Thebankisnowlistedonthe
Ghanastockexchangemarketin1996.
Thegrowthofthebankhasbeensynonymouswithitscustomerbase,performance,
innovativeproductandservices,profitabilityandcorporatesocialresponsibility.GCBhas
takenadvantageofenhanceinformationtechnologysystemandintroducedinternetbanking,
royalbanking,mobilebanking,smartpaysystemandinternationalremittancelikemoney
gram.GCBLtdisthewidestnetworkedbankinGhana.Allthesehavebeendonetoincrease
profitandenhanceshareholdersvalue.(GCBLimitedDiary(2008),andGCBLimited
AnnualReport,2010).
2.2:MotivationandCorporatePerformanceintheBankingSector
2.2.1TheConceptofMotivation
Rajput(2011),contends that the word motivation is derived from a Latin word Movere
which literally means to move. They defined motivation as the individual s d esireto
demonstratethebehaviourand reflects willingness to expend effort. Motivation can be
dividedintoextrinsicandintrinsicmotivation.Extrinsicmotivationreferstoexternalfactors,
whichcanbemeasuredinmonetaryterms,suchassalaryandbenefits,promotionand
disciplinaryaction.Extrinsicmotivatorscanhaveanimmediateandpowerfuleffect,butitwill
notnecessarilylastlong.Intrinsicmotivationreferstointernalfactorssuchasjobsatisfaction,
responsibility,freedomtoact,scopetouseanddevelopskillsandabilitiesandchallengingwork
andopportunitiesfordevelopment.Intrinsicmotivatorswhichare

concerned with the quality of working life are likely to have a deeper and longer term
effect.Thesetwodifferentaspectsofmotivationareconnectedtoeachotherandcannotbe
seeninisolation.
11

Golembiewski(1973),alsoreferstomotivationasthedegreeofreadinessofanorganization
topursuesomedesignatedgoalandimpliesthedeterminationofthenatureandlocusofthe
forcesinducingthedegreeofreadiness.
Kelly(1974),saysmotivationhastodowiththeforcesthatmaintainandalterthedirection,
qualityandintensityofbehaviour.AccordingtoHoyandMiskel(1987),employee
motivationisthecomplexforces,drivers,needs,tensionstates,orothermechanismsthatstart
andmaintainvoluntaryactivitydirectedtowardstheachievementofpersonalgoals.Inshort,
Dessler(2001),defines motivation as the intensity of a person s desire to engage in some
activity.Fromtheabovedefinitionssomeissuesarebroughttomindthatdealwithwhatstarts
andenergizeshumanbehaviour,howthoseforcesaredirectedandsustainedaswellasthe
outcomestheybringabout(performance).Thelevelofthesedrives,energies,andabilities

caninfluencehowemployees performsattheGCBLimited.

Ifinedo(2003),demonstratesthatamotivatedworkeriseasytospotbyhisorheragility,
dedication,enthusiasm,focus,zeal,andgeneralperformanceandcontributionto
organizationalobjectivesandgoals.
Allorganizationsareconcernedwithwhatshouldbedonetoachievesustainedhighlevelsof
performancethroughpeople.Thismeansgivingcloseattentiontohowindividualscanbest
bemotivatedthroughsuchmeansasincentives,rewards,leadershipand,importantly,the
work they do and the organizations context within which they carry out that work. The aim

istodevelopmotivationprocessesandaworkenvironmentthatwillhelptoensurethat
individualsdeliverresultsinaccordancewiththeexpectationsofmanagement.

12

According to Butkus & Green (1999), motivation is derived from the word motivate,
meanstomovepushorpersuadetoactforsatisfyinganeed.Baron(1983),defined
motivationinhisownrighthesaysthatmotivation is a set of process concerned with a kidof
forcethatenergizesbehaviouranddirectsittowardsachievingsomespecificgoals.Manywriters
haveexpressedmotivationhasagoaldirectedbehaviour.Thisobjectivenatureofmotivationis
alsosuggestedbykreitnerandKinicki(2001p.162)putforwardthatmotivation
represents those psychological processes that cause the stimulation, persistence of voluntary

actions that are goal directed.

Inanotherterm,amotivatedpersonhastheawarenessofspecificgoalsthatmustbeachieved
inspecificways;thereforehe/shedirectsitsefforttoachievesuchgoals(Neletal.,2001)
Mullins(2006),indicatesthat,thestudyofmotivationisconcerned,basically,withwhy
peoplebehaveinacertainway. The basic underlying question is why do people do what
they do? In general terms, motivation can be described as the direction and persistence of

action.Itisconcernedwithwhypeoplechooseaparticularcourseofactioninpreferenceto
others,andwhytheycontinuewithachosenaction,oftenoveralongperiod,andintheface
ofdifficultiesandproblems.
Motivationisoneofthekeyingredientsinemployeeperformanceandproductivity.Even
whenpeoplehaveclearworkobjectives,therightskills,andasupportiveworkenvironment,
theywouldnotgetthejobdonewithoutsufficientmotivationtoachievethosework
objectives(Mullins,2006).Motivationreferstotheforceswithinapersonthataffecthisor
herdirection,intensityandpersistenceofvoluntarybehaviour.Headdedthatmotivated
employeesarewillingtoexertaparticularlevelofeffort(intensity),foracertainamountof
time(persistence),towardaparticulargoalordirection(Mullins,2006).
13

2.2.2THEORIESOFMOTIVATION
2.2.2.1THECONTENT(NEED)THEORIES
Maliketal(2011),discussedtheearlytheoriesofmotivationwhichincludeHierarchyneeds
theory,ERGtheory,HerzbergTwoFactorTheoryandAcquiredneedstheory.Hierarchyof
needidentifiesfivelevelsofhumanneeds:physiological,safety,social,ego,andself
actualizing.Lowerlevelneedsmustbesatisfiedfirstbeforethenexthigherlevelneedsince
thiswillmotivateemployees.
Figure2.1:HIERARCHYNEEDSOFABRAHAMMASLOW'S

Source:("BusinessManagementArticles",April10,2009,http://www.envisionsoftware.com
/articles/accessed15August,2010)

The organization can satisfy its employees various needs. In the long run, physiological
needs may be satisfied by the persons pay check,butitisimportanttorememberthatpay
maysatisfyotherneedssuchassafetyandesteemaswell.Providinggenerousbenefitsthat
includehealthinsuranceandcompanysponsoredretirementplans,aswellasofferinga
measureofjobsecurity,willhelpsatisfysafetyneeds.Socialneedsmaybesatisfiedby
havingafriendlyenvironmentandprovidingaworkplaceconducivetocollaborationand14

communicationwithothers.Providingpromotionopportunitiesatwork,recognizinga
persons accomplishments verbally or through more formalrewardsystemsandjobtitles
are waysofsatisfyingesteemneeds.Finally,selfactualizationneedmaybesatisfiedbythe
provisionofdevelopmentandgrowthopportunitiesonoroffthejob,aswellasbyworkthat
isinterestingandchallenging.Bymakingtheefforttosatisfythedifferentneedsofeach
employee,organizationsmayensureahighlymotivatedworkforce.
TheimportantaspectofMaslow'smodelisthatitprovidesforconstantgrowthofthe
individual.Thetheorymeetstheintroductionneedsofemployeesandthereforeemployees
accomplishedgoalwiththisneedinGCBlimited.Inthelongrun,theseneedsofemployees
maynotbemetastheemployeesrisethroughthebankandthiscanserveasdemotivatingto
theemployees.
("BusinessManagementArticles",April10,2009,http://www.envisionsoftware.com
/articles/accessed15August,2010)
2.2.2.2ERGTheory
ERG theory, developed by Clayton Alderfer, is a modification of Maslow s hierarchy of
needs.Alderferproposedthatbasichumanneedsmaybegroupedunderthreecategories,
Existence,Relatedness,andGrowth.Thenumberofyearsemployeesstaysinanorganization
themoreitsneedskeeponchangingandthistheoryrecognizesthemultipleneedsthatmaybe
drivingemployeesatagivenpointtounderstandtheirbehaviourandmanagementcan
properlymotivatethem.
("BusinessManagementArticles",April10,2009,<http://www.envisionsoftware.com/
articles/accesseddate15August,2010>)

15

2.2.2.3Herzberget al.s Two Factor Theory

Herzberg, Mausner and Snydermans (1959),twofactortheoryisheavilybasedonneed
fulfilmentbecauseoftheirinterestinhowbesttosatisfyworkers.Theycarriedoutseveral
studiestoexplorethosethingsthatcauseworkersinwhitecollarjobstobesatisfiedand
dissatisfied.TheyclassifiedHygieneFactorsasdissatisfiedandmotivatingfactorsas
satisfied.
Thehygienefactorsarecompanypolicyandadministration,technicalsupervision,salary,
interpersonalrelationshipwithsupervisorsandworkconditions;theyareassociatedwithjob
content.Themotivatingfactorsarethosefactorsthatmakeworkersworkharderand
classifiedthemasfollows:achievements,recognition,workitself,responsibilityand
advancement.TheemployeesoftheGCBbankcanassessitmotivationalpackagesand
ensurethatthesemotivatethemtogiveouttheirbestandpackagesthatarenotsatisfied
shouldbedisengaged.
2.2.2.4AcquiredNeeds Theory of David McClellands
AcquiredNeedsTheoryisalsoknownastheThreeNeedTheoryorLearnedNeedTheory.
Accordingtoacquiredneedstheoryindividualsacquirethreetypes
ofneedsasaresultoftheirlifeexperiences.Theseareneedforachievement,needfor
affiliationandneedforpower.Thesereflectthatmanagersinthebankshouldberecognized
andnotmotivatedbymoneyandassuchmotivatedwiththenecessarypowertocarryoutthe
bankduty.Thereistheneedtoencouragegoodrelationshipamongstaff.Allindividuals
possessacombinationoftheseneedsandthedominantneedsarethoughttodriveemployee
behaviour.Heller,J.,Goulet,L.,Mohr,E.,(2004).

16

2.2.2.5PROCESSTHEORIES:
Processtheoriesdescribetheprocessthroughwhichneedsaretranslatedintobehaviour.
Thetwoprocesstheoriestobeconsideredareequitytheoryandexpectancytheory.Equity
theory matches the notions of a fair day s work for a fair day s pay. It really focuses on

perceptionsofinequalityintheoutputratiowhoseeffectmaybesimilartothehygienefactors
ofHerzbergetal.(Naylor,1999).Equityandfairnessintheworkplacehasbeenfoundtobea
majorfactorindeterminingemployeemotivationandjobsatisfaction(Lewisetal.1995).As
such,equitytheoryassumesthatoneimportantcognitiveprocessinvolvespeoplelooking
aroundandobservingwhateffortotherpeopleareputtingintotheirworkandwhatrewards
followthateffort.Thissocialcomparisonprocessisdrivenbyourconcernforfairnessand
equity.McKenna(2000),andSweeney(1990),confirmequitytheoryasoneofthemost
usefulframeworksforunderstandingandhavearoletoplayinthestudyofworkmotivation.
Adams'theorystatesthatemployeesstriveforequitybetweenthemselvesandotherworkers.
Equityisachievedwhentheratioofemployeeoutcomesoverinputsisequaltoother
employeeoutcomesoverinputs.Vroom(1964),theoryisbasedonthebeliefthatemployee
effortwillleadtoperformanceandperformancewillleadtorewardsandrewardsmaybe
eitherpositiveornegative.Themorepositivetherewardthemorelikelytheemployeewillbe
highlymotivated.Conversely,themorenegativetherewardthelesslikelytheemployeewill
bemotivated.Skinner'stheorysimplystatesthoseemployees'behavioursthatleadtopositive
outcomeswillberepeatedandbehavioursthatleadtonegativeoutcomeswillnotberepeated.
Thereforemanagersshouldpositivelyreinforceemployeebehavioursthatleadtopositive
outcomesandnegativelyreinforceemployeebehaviourthatleadstonegativeoutcomes.
AccordingtoLewisetal.(1995),expectancytheoryisthemost
comprehensivemotivationalmodelthatseekstopredictorexplaintaskrelatedeffort.17

Vrooms expectancy model is based on three key variables: valence, instrumentality and

expectancy.
Valencereferstothefeelingaboutspecificoutcomes.
Instrumentalityreferstotheprobabilitythataparticularperformancelevelwillleadtoa
specificoutcome.
Expectancyisthebeliefthataparticularbehaviourwillorwillnotbesuccessful.Gilmore
andWilliams(2009),discussedthevarioustheoriesofmotivation.Goaltheoryofmotivation
statesthatforgoalstobeeffective,managersshouldconsiderfivefactorswhendesigning
andimplementinggoals,namely:Goaldifficulty;Goalspecificity;Goalcommitment;
Participationinsettinggoals;and,Feedback.Managersalsoneedtotakeintoaccountthe
perceivedvalueofgoalstoindividualemployeesasthiswillinfluencemotivationand
behaviour,anditwilldifferfromonepersontoanother.Jobenrichmentisoftencitedasan
importantfactorinimprovingmotivation,satisfactionandperformance.Acomprehensive
modelofjobenrichmentfeaturesfivecorejobdimensions:Skillvariety;Taskidentity;Task
significance;AutonomyandFeedback.Theapplicationofintegratedpeoplemanagement
policy and practices, termed bundling or High Performance Work Practices (HPWPs),

namely;HighInvolvement,HumanResourcePractices,andRewardandCommitment
positivelyinfluencescommitmentandjobsatisfaction,whichinturn,encouragespositive
employee behaviour based on free will, i.e. discretionary behaviour, which in turn produces

improvedperformance.
Wanyama(2010),notesthatemployeeproductivitydependsontheamountoftimean
individualisphysicallypresent at a job and also the degree to which he or she is mentally
present or efficiently functioning while present at a job. Companies must address both of

theseissuesinordertomaintainhighworkerproductivity,andthismayoccurthrougha
varietyofstrategiesthatfocusonemployeesatisfaction,health,andmorale.Highlysatisfied
18

groupsofemployeesoftenexhibitaboveaveragelevelsofthefollowingcharacteristics:
customerloyalty(56%),productivity(50%),employeeretention(50%),safetyrecords(50%),
andprofitability(33%).Thepracticeofmaintainingacollegial,flexibleworkplaceis
associatedwiththesecondlargestincreaseinshareholdervalue(ninepercent),suggesting
thatemployeesatisfactionisdirectlyrelatedtofinancialgain.Humanresourcespracticeslike
employeesatisfaction,motivation,andpunctualityleadtopositivefinancialoutcomes.
Therefore,fororganizationstoachievehighperformance,theinterestsofcustomersand
employeesshouldbetakenintoaccountlikesatisfaction,motivation,product,qualityand
manpowercompetence.
FrimpongandFan(2009),definesperformancemanagementastheprocessthroughwhich
managers ensure those employees activities and outputs are congruent with the
organizations goal. Therefore it is the organizations priority to ensure that motivational

toolswhichencouragesinitiativeandstimulateseffortsfromtheemployeesareputinplace
forabetterperformanceanddeliveranceofqualityservice.Motivationreferstotheforces
eitherwithinorexternaltoapersonthatarouseenthusiasmandpersistencetopursuea
certain course of action. Employee motivation affects productivity, and part of a manager s
jobistochannelmotivationtowardstheaccomplishmentofbothpersonalandorganizational
goals.TheyconcludethatMotivationandmotivationalfactorshaveapositiveeffectonteam
performancewithinthebanks.
Hameedetal.(2009),investigatedtherelationshipbetweenofficedesignandproductivity
usingsubjectiveproductivitymeasurementmethod.Theperformanceofanemployeeis
measuredbytheoutputthattheindividualproducesanditisrelatedtoproductivity.
Productivity is defined variously as (i) that which people can produce with the least effort; (ii)
output per employee hour, quality considered (iii) the increased functional and
organizational performance, including quality (iii) a ratio which measures how well an

19

organization(orindividual,industry,country)convertsinputresources(labour,materials,
machinesetc.)intogoodsandservices.Themeasuresofsubjectiveproductivitymeasurement
method are based on personnels subjective assessments and not based on quantitative
operationalinformation.Subjectiveproductivity/performancemeasureasanindicatorused
to assess individuals aggregated perceptions, attitudes or assessments toward an
organizationsproductorservice.Subjectiveproductivitydatawhichcanbedescriptiveor
qualitativeisusuallycollectedusingsurveyquestionnairesorbyinterviews.Subjective
productivitydataisgatheredfromemployees,supervisors,clients,customersandsuppliers.
Inthecase,ofbankingsectorthereareincreasesinperformancewhenthereisless
absenteeism,feweremployeeleavingearlyandlessbreaks;whereasinafactorysetting,
increaseinperformancecanbemeasuredbythenumberofunitsproducedperemployeeper
hour.
Khanetal.(2010),analyzedtherolerewardplaysinmotivatingemployeesofcommercial
banksofKohat,Pakistan.Theyspecificallyanalyzedthevarianceexplainedbypredictor
variables(payment,promotion,benefitsandrecognition)incriterionvariable(employee
motivation).Theynotethatcommercialbanksplayimportantroleinworldwideeconomyand
theiremployeesarethebestsourcesofdeliveringgoodservicestotheircustomers.Excellent
servicesprovidedandofferedbyemployeescancreateapositiveperceptionandeverlasting
image in the eyes of banks customers. The individual motivation of a commercial bank
employeeplaysamajorroleinachievinghighlevelsatisfactionamongitscustomers.With
increaseinthegrowthoftheserviceindustry,thecommercialbanksatpresentstrugglefor
retainingemployeespossessingthecapabilitiesofqualityservice.Satisfactionof banks
customersdependsonthequalityofservicesandthewaycommercialbanksemployees
render these services to their customers. Commercial banks employees satisfaction, loyalty,

20

commitmentandmotivationensurethesatisfactionofcustomers.Thenotethatmotivationis
aprocessinwhichpeopleareconvincedtomoveforwardforperformingsomethingspecial
tofulfiltheirneedsandgetsatisfaction.Theyfoundthatemployeeworkmotivationin
commercialbanksofPakistanintheformofpayment,promotion,recognitionandbenefits
ledtohigherproductivityandthatamongthefourindependentvariablespromotionhas
greatereffectinproductivity.
AlAamri(2010),heexaminedemployeemotivationinprivateorganization,withtheviewto
identifythefactorsthatpromotepositivesmotivationalbehaviouramongemployees.He
arguesthatbusinessallovertheworldtodayisverychallenging.Internalandexternal
operatingenvironmentalfactorscontinuetochallengecorporateperformanceandrevenue
growth.Tostayprofitableinthehighlychallengingandcompetitiveglobalmarketeconomy,
allthefactorsofproductionmen,machineandmaterialsshouldbewiselymanaged.
Amongthefactorsofproduction,humanresourceconstitutesthebiggestchallengebecause
unlikeotherinputsemployeemanagementcallsforskilfulhandlingofthoughts,feelingsand
emotionstosecurehighestproductivity.Employeemotivationdeliverslongtermbenefitsin
theformofhighproductivity.Amotivatedemployeeisavaluableassetwhichdelivers
immensevaluetotheorganizationinmaintainingandstrengtheningitsbusinessandrevenue
growth.Whilecompensationandgeneralworkingconditionsareagreedinsomewayatthe
time of employment, the employees actual contribu tion,intermsofvolumeandqualityof
output, remains largely unspecified. Much depends on employees willingness to invest their

skillsandknowhowintheproductionprocess.Inturn,suchcommitmentisbuilton
organizationalarrangement,wellacceptedworkingconditionsandcooperativerelations
moregenerally.
21

Khanetal.(2010),investigatedtheroleplayedbyrewardsintheprocessofmotivating
employeesofcommercialbanksinPakistan.Theachievementsofindividualsand
organizationalgoalsareindependentprocesslinkedbyemployeeworkmotivation.
Individualsmotivatesthemselvestosatisfytheirpersonalgoals,thereforetheyinvestand
directtheireffortsfortheachievementsoforganizationalobjectivestomeetwiththeir
personalgoalsalso.Itmeansthatorganizationalgoalsaredirectlyproportiontothepersonal
goals of individuals. The managers job is to ensure that the employees are self motivated

towardsworkratherdirected.Themajorissueinallservicesorganizations,including
commercialbanks,isthemotivationofemployees(whethertheyareskilled,unskilledor
professionals) especially in todays competitive world. The level of employees motivation,
theirenthusiasmandenergeticbehaviourtowardstaskfulfilmentplaykeyroleinsuccessesof
anorganization.
2.3.1ImportanceofMotivation
Theachievementsofindividualsandorganizationalgoalsareindependentprocesslinkedby
employeeworkmotivation.Individualsmotivatesthemselvestosatisfytheirpersonalgoals,
thereforetheyinvestanddirecttheireffortsfortheachievementsoforganizationalobjectives
tomeetwiththeirpersonalgoalsalso.Itmeansthatorganizationalgoalsaredirectly
proportiontothepersonalgoalsofindividuals.
Robert(2005),reportedthatthemanagersjobistoensuretheworkdonethroughemployees
aresatisfiedandtheemployeesareselfmotivatedtowardstheirworkratherthanjustbeing
directed.Themanagersinvolvementisnotsomuchimportantinthemotivationof
employees.Theemployeesshouldmotivatethemselvestoworkhard.
Themajorissueinallservicesorganizationsisthemotivationofemployeeswhethertheyare

22

skilledorunskilledorprofessionals.Employeemotivationisalsoamajorissueforthe
commercialbanks.It is a todays challenge for the management in this competitive world to
motivateemployeestoofferefficientandgoodservicesthatcustomersexpectsofor.The

employees motivation, their enthusiastic and energetic behaviourtowardstask

fulfilment playkeyroleinsuccessesofanorganizationtobenefit(Cheng,1995).
AccordingtoPetcharak(2002),oneofthefunctionsofhumanresourcemanagerisrelatedto
ensure employees workplace motivation. The human resource managers function should be

toassistthegeneralmanagerinkeepingtheemployeessatisfiedwiththeirjobs.Anothergoal
inorganizationisthegoalfortheservicesmanageristodevelopmotivatedemployeesand
encouragetheirmoraleregardingtheirrespectiveworks.Theemployeeworkmorale,suchas
supervisors,peers,organization,andworkenvironmentcanbedefinedinasensethatthe
employeehasthefeelingandbeconsciousaboutallaspectsofthejob.Theperformanceis
pooriftheemployeeisnotsatisfiedandhappy.
Workplacedissatisfaction often leads organization and its employees poor performance.

2.3.2LevelsofEmployeeMotivation
AccordingtoresearchconductedbyMosley,Megginson,andPietri(2001),therearethree
levels of employees motivations.
Thedirectionofan employees behaviour.Itrelatestothosebehaviourswhichthe
Individualschoosetoperform.
Thelevelofeffort.Itreferstohowhardtheindividualiswillingtoworkonthebehavior.
The level of persistence. It refers to the individuals willingnesstobehavedespite
obstacles.Theyfoundthatmanagementcanmakeuseofdifferenttactics,strategiesand
policiestomotivateemployeesinworksettings,butdifferenttactics,strategiesandpolicies
wouldhaveadifferentmotivationalimpactondiversepeople.23

DaschlerandNinemeier(1989),conductedresearchandinvestigatedwhatemployeesmay
seekfromtheworkenvironment.Theirdiscussionreviewssomeofemployeerelated
concerns that can be found in the venue of strategies to employees motivation.
Employees are individuals that come from different backgrounds, they have different
educationwithdifferentexperiencesandtheirdifferentfamilyclassesareallthefactors
inwhichtheirneedsbelocated.
The primary interest of employeesistosatisfytheirpersonalneeds,ambitions,desires
andgoals.
An employee wants to satisfy its basic needs, linked to survival and security concerns and

desiretobelong,togeneratepositivefeelingsfromwithinandfromothers,andtobe
selffulfilled.
Most employees want (a) fair and consistent company policies in matters affecting them;

(b)managementtheycanrespectandtrust;(c)adequateworkingrelationshipswithmanagers
andcoworkers;(d)acceptablesalariesandworkingenvironment;(e)appropriatejobsecurity
assurance;(f)favourablejobstatus.
The other important factors that can fulfilandmotivateemployeesare:challenging
work,workthatyieldsasenseofpersonalaccomplishment,expressionofappreciationfor
goodperformance,increasedresponsibilityandthechancetogrowinthejob,thefeelingof
importanceandmakingacontributiontotheorganization,andparticipationinjobrelated
mattersthataffecttheemployees.
TheresearchconductedbyDr.Kashifurrehmanetal.(2007),inPakistanmeasuringtheeffect
ofHuman Resource Strategies like pay, promotion and training on job satisfaction. Their
studywasfocusedonworkforceofservicebasedcompaniesinPakistan.Theyconcludedfrom
theirresearchthatpay,promotionandtraininghadpositiveandsignificantimpacton

24

jobsatisfaction.TheyarguedandsuggestedthatemployeesinPakistangivemoreimportance
topayandpromotionthantraining.
AlJenaibi(2010),exploredthesenseofjobsatisfactionandthestrugglesemployeesfacein
governmentorganizationsbyusingacasestudyofdifferentorganizationsintheUAE.Job
satisfactionoccurswhensomeonefeelshe/shehasproficiency,value,andisworthyof
recognition. Therefore, job satisfaction is a worker s senseofachievementandisgenerally
notedtobedirectlyassociatedwithimprovedefficiencyaswellastopersonalwelfare.Job
satisfactionisthebeliefoftheemployeethathe/sheisdoingagoodjob,enjoyingtheprocess,
andbeingsuitablyrewardedfortheeffort.Jobsatisfactionisameasureofhowhappyworkers
arewiththeirjobsandworkenvironment.Keepingmoralehighamongworkersisoffabulous
benefittoanycompany,ascontentworkerswillbemorelikelytoproducemoreresults,take
fewerdaysoff,andremainloyaltothecompany.Jobsatisfactionisanessential
factor that affects employees initiative and enthusiasm. A lack of job satisfaction can lead to

increasedabsenteeismandunnecessaryturnoverintheworkplace.Jobsatisfactionincreases
thedegreeofhappinessintheworkplace,whichleadstoapositiveworkapproach.A
satisfiedworkeriscreative,flexible,innovative,andloyal.Jobsatisfactioningeneralmeans
theworkforceismotivatedandcommittedtohighqualityperformance.Improvingthe
qualityofworkinglifewillhelpemployeestoincreaseproductivity(thequantityandquality
ofoutputperhourworked).Themainfindingoftheirresearchisthatjobsatisfactionisbased
oneffectivemanagement,communication,facilities,andbenefits,includingsalaries,
technologies,andfuturejobdirections.
2.4PerformanceMeasurement
ChenandSilverthorne(2008),identifythreetypesofperformance.Oneisthemeasureof
outputrates,amountofsalesoveragivenperiodoftime,theproductionofagroupof25

employeesreportingtomanager,andsoon.Thesecondtypeofmeasureofperformance
involvesratingsofindividualsbysomeoneotherthanthepersonwhoseperformanceisbeing
considered.Thethirdtypeofperformancemeasuresisselfappraisalandselfratings.Asa
result,theadoptionofselfappraisalandselfratingtechniquesareusefulinencouraging
employeestotakeanactiveroleinsettinghisorherowngoals.Thus,jobperformance
measuresthelevelofachievementofbusinessandsocialobjectivesandresponsibilitiesfrom
theperspectiveofthejudgingparty(HerseyandBlanchard,1993).
2.4.1PerformanceAppraisal
Employeeswanttoknowhowwelltheyperformontheirjobs.Asimplestatement,almost
axiomaticinanyorganization,yetithasprobablycausedmorecontroversy,appliedresearch
andpracticaladvicethananyotherassertioninthehistoryofmanagementwritingand
thinking(Kavanagh,1997).Employeeswanttohowwelltheyperformingandinterestedin
gettingfeedbacktoensurethattheyworktowardsgoalsofthebusiness.Theassessmentof
employeeshelpsthebusinesstogrow,fillinvacantposition,preparedemployeesfortraining
anddevelopment.
Performanceappraisalisaprocesswithintheoverallperformancemanagementprocess
(Dowling et al., 1999), and is defined as the evaluation of an individual s work performance

in order to arrive at objective personnel decisions (Robbins et al., 2000).

2.4.2PerformanceAppraisalPurpose
TaylorandWherry(1951),proposedthatratingscollectedforadministrativepurposeswould
bemorelenientthanratingscollectedforresearchordevelopmentalpurposes.Themajority
oftheresearchonperformanceappraisalpurposehasfocusedontherater,someworkhas
alsobeenconductedonratereffects(Boswell&Boudreau,2000,2002).26

There are numerous methods to measure employees performance appraisal but some of these

methodsarenotsuitableinsomecases.Effectiveappraisalsystemsshouldaddressclarity,
openness,andfairness;recognizeproductivitythroughrewards;andbecognizantofappraiser
leadershipqualities(Winston&Creamer,1997).
2.4.3PerformanceAppraisalMethods
DecenzoandRobbins(2002),denominatethattherearethreeexistentapproachesfor
measuringemployeesperformanceappraisal.Theseare(1)absolutestandards(2)relative
standardsand(3)objectives.
2.4.3.1AbsoluteStandards
Itreferstoasituationthatemployeesarecomparedtoastandard,andtheirevaluationis
independentofanyotheremployeeinaworkgroup(Dessler,2000).Thisabsolutestandardis
alsoknownastheoldmethodofperformanceappraisalofemployees.Includedinthisgroup
arethefollowingmethods:theessayappraisal,thecriticalincidentappraisal,thechecklist,
thegraphicratingscale,forcedchoiceandbehaviorallyanchoredratingscales.Theessay
appraisal:Itisthesimplestevaluatingmethodinwhichevaluatorwritesan
explanation about employees strength and weaknesspoints,previousperformance,
positionalandsuggestionforhis(her)improvementattheendofevaluationterm.Thiskind
ofevaluationsusuallyincludessomepartsofothersystemstocausetheirflexibility.This
methodoftencombineswithothermethods.Inessayappraisal,weattempttofocuson
behaviors(Mondy,2008).
Thecriticalincidentappraisal:Itfocusesonkeyfactorswhichmakedifferenceinperforming
ajobefficiently.Thismethodismorecrediblebecauseitismorerelatedtojobandbasedon
individuals performancethancharacteristic.Thenecessityofthissystemistotryto
measure 27

individuals performanceintermofincidentsandspecialepisodeswhichtakeplaceinjob
performance.Theseincidentsareknownascriticalincident.Inthismethod,themanager
writesdownthepositiveandnegative individuals performance behavior in evaluation term
(Mondy,2008).
Thechecklist:Inthismethod,theevaluatorhasalistofsituationsandstatementsand
comparesitwithemployees.Thechecklist is a presentation of employees characteristics and
performance.Theresultscanbequantitativeandgiveweighttocharacteristics.Answersof
checklist are often Yes or No (Decenzo, 2002).

Thegraphicratingscale:Thisisthemostcommonlyusedmethodofperformanceappraisal
becausetheyarelesstimeconsumingtodevelopandadministerandallowforquantitative
analysisandcomparison.Itisascalethatlistssomecharacteristicsandrangofperformance
ofeachindividual.
Therefore,employeesarerankedbydeterminingascorewhichshowstheirperformance
level.Theutilityofthistechniquecanbeenhancedbyusingitinconjunctionwiththeessay
appraisaltechnique(Mondy,2008).
Behaviorallyanchoredratingscales(BARS):Thismethodreplacestraditionalnumerical
anchorstoolswithbehavioralprototypesofrealworkbehaviors.BARSletevaluatortorank
employeebasedonobservablebehavioraldimension.Theelementsofthismethodareresult
ofcombinationofmajorelementsofcriticalincidentandadjectiveratingscaleappraisal
methods(Wiese,1998).BARShavefivestages(Decenzo,2002):1)GenerateCritical
Incidents,2)Developperformancedimensions,3)Relocateincidents,4)Ratingoflevelof
performanceforeachincidentand5)Developmentofthefinalinstrument.
2.4.3.2RelativeStandards
Inthesecondgeneralcategoryofappraisalmethods,individualsarecomparedagainstother
28

individuals.Thesemethodsarerelativestandardsratherthanabsolutemeasuringdevice.The
mostpopularoftherelativemethodaregrouporderranking,individualrankingandpaired
comparison.
Grouporderranking:Inthismethod,employeesareplacedintoaparticularclassification,
suchas top one-fifth. For example, if a rater has 20 employees,only4canbeinthetop
fifthand4mustberelegatedtothebottomfifth(Decenzo,2002).
Individualranking:Inthistypeofappraisal,individualsarerankedfromhighesttolowest.It
isassumedthatthedifferencebetweenthefirstandsecondemployeeisequaltodifference
between21stand22ndemployee.Inthismethod,themanagercompareseachpersonwith
othersthanworkstandards(Dessler,2000).
Pairedcomparison:Inthismethod,employeesarecomparedwithallothersinpairs.The
numberofcomparisonisfollowedas(1)2NNinwhichNshowsthenumberof
employees.Afterdoingallcomparisons,thebestpersonisdeterminedforeachcharacteristic
(Mondy,2008).
2.4.3.3Objectives
Thethirdapproachtoappraisalmakesuseofobjectives.Employeesareevaluatedonhow
welltheyaccomplishedaspecificsetofobjectivesthathavebeendeterminedtobecriticalin
thesuccessfulcompletionoftheirjob.ThisapproachisfrequentlyreferredtoasManagement
byObjectives(MBO).Managementbyobjectivesisaprocessthatconvertsorganizational
objectivesintoindividualobjectives.Itconsistsoffoursteps(Ingham,1995):goalsetting,
actionplanning,selfcontrolandperiodicreviews.

29

360DegreeFeedbackAppraisal
360degreeevaluationsarethelatestapproachtoevaluatingperformance.Itisapopular
performanceappraisalmethodthatinvolvesevaluationinputfrommultiplelevelswithinthe
firmaswellasexternalsources.Therearenumerousauthorswhoproposedefinitionsofthe
360degreefeedbackprocess.
Feedback from multiple sources or 360 degree feedback is a performance appraisal
approachthatrelies on the input of an employees superiors, colleagues, subordinates,
sometimescustomers,suppliers and/or spouses (Yukl and Lepsinger, 1995). In a special
editionofHumanResourceManagementon360degreefeedback,Tornow(1993),observes
thatin360degreefeedbackprogrammes,feedbackaboutatargetindividualissolicitedfrom
significantothersusingastandardizedinstrument.JonesandBearley(1996),referto360
degreefeedbackasthepracticeofgatheringandprocessingmultiraterassessmentson
individualsandfeedingbacktheresultstotherecipients.
Hoffman(1995)explainsthat360degreefeedbackisanapproachthatgathersbehavioral
observationsfrommanylayerswithintheorganizationandincludesselfassessment.
The360degreeevaluationcanhelponepersonberatedfromdifferentsides,differentpeople
thesecan give the wider prospective of the employees competencies (Shrestha, 2007).It
hasbeenusedforhumanresourcedevelopment,appraisalandpaydecisions(Armstrong,
1998;Stone,2002).
GCB Bank uses employees performance appraisal to assess the individual performance for

thebank.Thissystemensuresthatsupervisor/managersassesstheemployeesattheendof
theyearandareportissenttoHeadOfficeforonwardpromotionornonpromotionforthat
particularyear.Themanagersusethegraphicratingscaleapproachandeasyappraisal
methodtoassesstheperformanceoftheemployees.Thisformgivesaqualitativeand
quantitativeworkdonebyemployeesfortheyear.Themanagersarecalltoassessment30

centreforinterviewsandgroupworkandassessed,andaftermathwhethertobepromotedor
not.(Source:GCBHumanresourcedivision,HeadOffice)
Thebranchalsousesbudgetestimationtoassessthefinancialyearofthebranch.Whenthe
groupbankdeclaredprofitattheendoftheyear,eachstaffisgivenperformancerewardand
thosewhodonotperformedwellaresanctionbyforfeitingtheirrewards.(Source:GCB
ResearchandPlanningDepartment,HeadOffice)
Productivityineveryorganizationorcompanydependsonmanyvariables.Someofthese
variablesareassociatedwithamoreadequatemanagingandplanningofstructuralissues
(e.g.productioncapacity),whereasotherfactorsarerelatedtomoreinfrastructuralaspectsof
the organization or companys operations (e.g. workforce motivation). They added that,
traditionaltheoriesofhumanbehaviourandmotivationstatethatjobperformanceisoftenthe
resultofatleasttwoaspects:theabilitiesandskills(naturaloracquired)thatanemployee
possesses,andhis/hermotivationtousetheminordertoperformabetterjob(Sarmientoand
Beale,2007).
Aguinis(2005),arguesthatperformanceinanyorganizationisdeterminedbythreemajor
factorsnamely:(i)Declarativeknowledgewhichisinformationaboutfactsandthings

including information regarding a given tasks requirement, labels, principles; (ii) Procedural

knowledgewhichisacombinationofknowingwhattodoandhowtodoitandincludes
cognitive,physical,perceptual,motorandinterpersonalskills;and(iii)Motivationwhichalso
involvesthreetypesofchoicebehaviours:Choicetoexpendeffort,Choiceoflevelofeffort
andChoicetopersistintheexpenditureofthatlevelofeffort.Heestablishesanequationfor
performanceastheproductofthesethreedeterminantsas:
Performance=DeclarativeKnowledgeProceduralKnowledgeMotivation

31

Thereforeifanyofthevariablesiszero,thenperformanceiszeroandlowscoreinanyof
thesevariableswilldefinitelyleadtolowperformance.
AccordingtoEncyclopediaofBusiness(2011),improvementinindividual,group,or
organizationalperformancecannotoccurunlessthereissomewayofgettingperformance
feedback.Feedbackishavingtheoutcomesofworkcommunicatedtotheemployee,work
group,orcompany.Foranindividualemployee,performancemeasurescreatealinkbetween
theirownbehaviourandtheorganization'sgoals.Fortheorganizationoritsworkunit's
performancemeasurementisthelinkbetweendecisionsandorganizationalgoals.
Measurementisthereforethefirststepinimprovement.Butwhilemeasuringistheprocessof
quantification,itseffectistostimulatepositiveaction.Performancemeasurescanbegrouped
intotwobasictypes:thosethatrelatetoresults(outputsoroutcomessuchascompetitiveness
orfinancialperformance)andthosethatfocusonthedeterminantsoftheresults(inputssuch
asquality,flexibility,resourceutilization,andinnovation).Thissuggeststhatperformance
measurementframeworkscanbebuiltaroundtheconceptsofresultsanddeterminants.
Measuresofperformanceofabusinessusuallyembracefivefundamental,butinterlinking
areas:Money,usuallymeasuredasprofit;Output/inputrelationshipsorproductivity;
Customeremphasissuchasquality;Innovationandadaptationtochange;andHuman
resources.Withintheoperationsarea,standardindividualperformancemeasurescouldbe
productivitymeasures,qualitymeasures,inventorymeasures,leadtimemeasures,preventive
maintenance,performancetoschedule,andutilization.Specificmeasurescouldinclude:
Costofquality:measuredasbudgetedversusactual.
Variances:measuredasstandardabsorbedcostversusactualexpenses.
Periodexpenses:measuredasbudgetedversusactualexpenses.
Safety:measuredonsomecommonscalesuchasnumberofhourswithoutan
32

accident.
Profitcontribution:measuredindollarsorsomecommonscale.
Inventoryturnover:measuredasactualversusbudgetedturnover.
Whilefinancialmeasuresofperformanceareoftenusedtogaugeorganizationalperformance,
somefirmshaveexperiencednegativeconsequencesfromrelyingsolelyonthesemeasures.
Traditionalfinancialmeasuresarebetteratmeasuringtheconsequencesofyesterday'sactions
thanatprojectingtomorrow'sperformance.Therefore,itisbetterthatmanagersnotrelyon
onesetofmeasurestoprovideaclearperformancetarget.Manyfirmsstillrelyonmeasures
ofcostandefficiency,whenattimessuchindicatorsastime,quality,andservicewouldbe
moreappropriatemeasures.Tobeeffective,performanceyardsticksshouldcontinuously
evolveinordertoproperlyassessperformanceandfocusresourcesoncontinuous
improvementandmotivatingpersonnel.Inordertoincorporatevarioustypesofperformance
measuressomefirm'sdevelopperformancemeasurementframeworks.Theseframeworks
appearintheliteratureandvaryfromKaplanandNorton'sbalancedscorecardtoFitzgerald's
frameworkofresultsanddeterminants.
KaplanandNorton'sbalancedscorecardapproachoperatesfromtheperspectivethatmore
thanfinancialdataisneededtomeasureperformanceandthatnonfinancialdatashouldbe
includedtoadequatelyassessperformance.
Similar,alesserknown,performancemeasurementframeworktitledthe"performancematrix"
ismoreflexible,asitisabletointegratedifferentdimensionsofperformance,andemploys
generictermssuchasinternal,external,cost,andnoncost.
2.5CHAPTERSUMMARY
ThedevelopmentofbankinginGhanaandthestartofGhanaCommercialbankLimitedis
muchappreciated,thetheoriesandconceptsofmotivation,thelevelsofemployees
33

motivation,performanceappraisalmethodsandcorporateperformancemeasurementwere
discussed.Thisshowswhetherthemotivationofemployeesreallyaffectperformanceinthe
bankingsector.

34

CHAPTERTHREE
RESEARCHMETHODOLOGYANDPROFILEOFSTUDYAREA
3.1:Introduction
Thischapterdescribesthemethodologyusedforthestudy.Themainissuesdiscussedhere
aretheresearchdesign,researchpopulation,sampleandsamplingtechnique,sourceofdata
anddatacollectionmethods,andmethodofdataanalysis.
3.2:ResearchDesign
Saundersetal.(2007),definesresearchdesignasthegeneralplanofhowtheresearch
questionswouldbeanswered.Itistheconceptualstructurewithinwhichresearchis
conducted.Itconstitutesablueprintforthecollection,measurementandanalysisofdata.
Asurveyisamethodofcollectingdatainwhichpeopleareaskedtoansweranumberof
questions(usuallyintheformofaquestionnaire).Thereliability of a surveys results
dependsonwhetherthesampleofpeoplefromwhichtheinformationhasbeencollectedis
freefrombiasandsufficientlylarge(Encarta,2009).
Theresearchdesignforthisstudywasthesurveyresearchdesigntoassesstherelationship
betweentheeffectofmotivationalpackagesandstaffperformance.Thisistherefore
qualitativeandquantitativeinoutlook.
Researchtoolsarethemethodsofdatacollection(e.g.questionnaire,observation,document
analysis).Theresearchtoolsusedforthestudywerequestionnairesandinterviews.
3.3:Population,SampleSizeandSamplingTechniquesfortheStudy
Alltheitemsunderconsiderationinanyfieldofinquiryconstituteapopulation.Itcanbe
presumedthatinsuchaninquirywhenalltheitemsarecoverednoelementofchanceisleft
35

andhighestaccuracyisobtained.Sekeran,(1990)reportedthatpopulationreferstotheentire
groupofpeople,eventsorthingsofinterestthattheresearcherwishestoinvestigate.
Quiteoftenweselectonlyafewitemsfromthepopulationforourstudypurposes.Theitems
soselectedconstitutewhatistechnicallycalledasample.Sekeran,(1990)definesasample
asaportionofthepopulationthathasattributesastheentirepopulation.
ThetargetpopulationforthestudyconsistsofallstaffofGCBLimitedworkinginthe22
branchesoftheKumasiareazoneofthebank.Thetotalnumberofpeopleformingthe
populationisaboutonehundredandfiftythree(153).Thus,allthe153employeeswere
givenquestionnairesand95respondedrepresentingabout(62%).Thatis,allwereofferedthe
chancetoparticipateinthestudybutsomeabout(38%)inevitablypartiallydeclined.
3.4:DatafortheStudy
Thestudydependedonprimarydatacollectedfromthestaffandsomesecondarydata.The
primarydatawascollectedfromthefieldsurveyusingquestionnairesandinterview
schedules.Thequestionnairescomprisedbothcloseendedandopenendedquestions.These
formedthebasisoftheanalysisofthestudy.TheresearcherwenttothevariousGCBLtd
branchesintheKumasiareaandhandedthequestionnairestothevariousrespondents.The
researcherthenexplainedhowthequestionnairesweretobefilledandtwodayslaterhewent
backtocollectthefilledcopies.
Thesecondarydatawassourcedfromtheauditedannualreportsandfinancialstatementsof
thebankandotherselectedbanks.

36

3.5:DataAnalysisandPresentation
Thedatacollectedwasprocessedusingthestatisticalpackageforsocialscience(SPSS).The
resultsofthestudyareshownintables,percentagechartsandgraphs.Bothqualitativeand
quantitativemethodsofdataanalysiswereusedforthestudy.Thevariablesofinteresttothe
researcherweremotivationandjobsatisfactionandthesewereanalyzedafteranalyzingthe
demographicdescriptionofrespondents.
3.5.1Motivation
Maliketal.(2011)identifiedsomeantecedentsofmotivation.Inthisstudyfivecategoriesof
antecedentswereconsidered:selfactualization,esteemneeds,socialneeds,securityand
safetyneeds,andphysiologicalneeds.Again,motivationwasmeasuredusinganinstrument
developedbyKhanetal.(2010),whoanalyzedtherolerewardplaysinmotivating
employeesofcommercialbanksofKohat,Pakistan.Theyspecificallyanalyzedthevariance
explainedbypredictorvariables(payment,promotion,benefitsandrecognition)incriterion
variable(employeemotivation).Hameedetal.(2009),investigatedtherelationshipbetween
officedesignandproductivityusingsubjectiveproductivitymeasurementmethod.The
performanceofanemployeeismeasuredbytheoutputthattheindividualproducesanditis
related to productivity. Productivity is defined variously as (i) that which people can
producewiththeleast effort; (ii) output per employee hour, quality considered (iii) the
increased functional and organizational performance, including quality (iii) a ratio which

measureshowwellanorganization(orindividual,industry,country)convertsinputresources
(labour,materials,machinesetc.)intogoodsandservices.
3.5.2Jobsatisfaction
AlJenaibi(2010),exploredthesenseofjobsatisfactionandthestrugglesemployeesfacein
governmentorganizationsbyusingacasestudyofdifferentorganizationsintheUAE.Job37

satisfactionoccurswhensomeonefeelshe/shehasproficiency,value,andisworthyof
recognition.Thevariablesusedtomeasurejobsatisfactionwereearlyreportingtowork,
stayingonthejob,delighttocustomers,respectamongstcolleagues,innersatisfaction,
loyaltytothebank.
3.6OrganisationalStructureofGhanacommercialBankLtd
After Ghanas independence in 1957, the Bank of Gold Coast was renamed Ghana
CommercialBank.Later,theBankofGhanawasbornoutofcommercialbankwhencentral
bankswereseparatedfromthecommercialbankfunctions.GhanaCommercialBankLtd
thenfocusedoncommercialbankingservicessuchasmobilizationofdepositandgrantingof
loans.
ManagementstructureofGhanaCommercialBankLtd
TheBankhassincebeenmanagedbyBoardofDirectors,managementcommittee,senior
officersandemployeesunion.TheheadofficeofthebankissituatedinAccra.
MissionofGhanaCommercialBankLtd
ThemissionofGCBLtdistobetheestablishedleaderinbankingsatisfyingtheexpectations
ofcustomersandshareholdersprovidingafullrangeofcostefficientandhighquality
servicesnationwidethroughtheoptimizationofinformationtechnologyandefficientbranch
network.Fortheachievementofthismissionthebankiscommittedto;
Theprovisionoffirstclasscustomerservice
Ensuringthatstaffarewellmotivatedandhaveaconduciveworkingenvironment.
Recruitingandretainingthebesthumanresourcestocarryoutthebankmandate.
Constantimprovementinshareholdervalue.
38

Applyingthebestpracticesininternalpolicies,procedures,processesandservicedelivery.
Constantimprovementintheuseofinformationtechnology.

39

CHAPTERFOUR
ANALYSIS,FINDINGSANDDISCUSSIONOFDATA
4.0Introduction
Thepreviouschaptersofthestudyaddressedthecontextual,theatricalanddescriptiveaspects
ofthestudy.Thefocusofthispresentchapteristoanalysethefielddataandexaminethe
findingsinthelightoftheobjectivesofthestudy.Thequantitativedatacollectedunderthe
surveywascodedfortheanalysis.SPSSwasusedtoanalysethequantitativedata.The
qualitativedatawasalsothoroughlydiscussedinrelationtotheobjectivesofthestudy.
Analysesofthefielddataandthediscussionofthefindingsthereinhavebeenpresentedin
thefollowingstructure:
ProfileofRespondents;
Motivationalpackagesforstaff;
Effectsofmotivationalpackagesonemployeesperformance;
Effectsofmotivationalpackagesoncorporateperformance
Theanalysisanddiscussionsofthestudywillnowproceedaccordingly.

4.1ProfileofRespondents
Perry(2000),contendsthat,personalattributeslikegender,education,familylifestatusand
agehadsignificanteffectonmotivationattheworkplace.Thesociodemographicdescription
ofrespondents,presentedforanalysisincluded
a.
40

Genderofrespondent,

coredutiesofrespondent,
Department and various branches and number of years respondents have been
working,anddesignationofrespondentovertheyears.
4.2.1:GenderofRespondents.
Thesamplesizeofthisstudywasuniquebecausethe95respondentsweremoreofvolunteers
forthestudyandisinterestinglymadeupof48%maleand52%femalewhichcoincidentlyis
thenationalpopulationgenderrepresentationofGhana(figure4.1).Thisissobecausethe
numberofbankspositionintheKumasizonearea,whichisabriskbusinessandin
commercialareamorefeministsareneededthanmentoprovidegoodandfastroutine
servicestothecustomers.Thisideawoulddrawnewmorecustomerstothebank.Thisistrue
andsupportedbytheassertionfoundedbyNaffandCrum(1999),studiedemployeesfrom
thepublicsectorandfoundthatthelevelofmotivationforwomenwashigherthanformenin
thepublicsectorthussuggestingtheroleofgenderinmotivation.Whateverthemotivation
womenappreciateitmorethanmen.Womenareeasilymotivatedandthereforegiveuptheir
bestwithanylittlemotivationgiventhem.Thestudytriedtogiveequalgenderbalanceto
bothmalesandfemales.

41

Figure4.1:Genderofrespondents

Source:FieldSurvey,2011

4.2.2TheDesignationofemployeesofGCBLimited
Ideally,aholisticviewofthedesignationofemployeesofGCBlimitedrevealedthree
differenttitlesandtheyareclericals,supervisorsandmanagers/manageress.Therespondents

ofthestudyconsistof13.7%managers,40%supervisorsandtheremainingmajorityof
46.3%beingclericalstaff.

42

Figure4.2:DesignationofrespondentswithinGCBLimited.

Source:FieldSurvey,2011

4.2.3:TheCoreDutiesofrespondentsatGCBlimited.
Realistically,acomparativeview(offigure4.2and4.1)revealedthatthecoredutiesof

employeesofthebankaredependent on employees designation. Nevertheless, 45 (47.4%) of

theemployeesperformcustomerservicedutiesandthisisequivalent(eventhoughitis+1)tothe
frequencyanditscorrespondingpercentagevaluefortheclericalstafftitle.Also,38(40.0%)of
theemployeesperformdutiesasloanofficersandsystemadministratorsandthisisdirectlyequal
tothefrequencyanditspercentagevaluefortheofficer/supervisorytitle.

Consequently,12(12.6%)employeesperformmanagerialandoperationaldutiesandthisalso
43

(eventhoughitis1)totheequivalentfrequencyanditscorrespondingvalueforthe
managerialtitle.
Mostofthecoredutiesareperformedbyclericalsandthelinemanagersandsupervisors
dutiesaretoensuretheemployeesachievedthegoalsofthebank.Theemployeesensurethat
thecustomersaresatisfiedandmostofthecustomersinterruptwithemployeesinevery
workingdayandsoiftheemployeesaredemotivateditwouldhaverepercussiononthe
performanceofthebank.Themanagers role is to achievethetargetforthebank,andsothat
makesthemanagerachievable.ThisconfirmswhatHeller,J.,Goulet,L.,Mohr,E.,(2004),in
theirresearchonAcquiredNeedsTheoryofDavidMcClelland.Accordingtotheacquiredneeds
theory,individualsacquiretypesofneedsasaresultoftheirlifeexperiences.Someneedscould
belearned;theachieverseekstoappreciatefrequentrecognitionofhowwelltheyaredoingrather
thanmoneybeingpaidtothem.Abranchmanagerwouldbehappyto

realizehisbankstargetsbeforetheyearends.Toachievethesetheyensurethatevery
employeedeliversdelightservicetocustomersandalsoperformtheroleofhumanresource
managementateachbranch.ThisconfirmswhatCheng(1995),viewsthatthebiggest
challengeforbanksmanagementtodayistomotivateemployeesforlackofproficientoffer
andbetter services according to customers expectations. One of the major functions of a
human resource manager is to enhance and maintain employees work motivation. Human
resource managements function is to assist the general manager or line management in
keepingtheemployeessatisfiedwiththeirjobsbyprovidingmotivationofdifferentkinds.
Branchmanagersthusdoubleasbothhumanresourceandgeneralmanagerstopropeljob
satisfactionthroughmotivationsoastogeneratehighperformance(Petcharak,2004).

44

Figure4.3:CoredutiesofrespondentsatGCBlimited.

Source:FieldSurvey,2011
4.2.4:YearsRespondentshavebeenworkingwithGCBLimited.
Majorityoftherespondentsthatis,(54.7%)haveworkedwiththebankfor16yearsand
above.Theremainingfew(4.2%)haveworkedbetweentheyearrangeof15years.This
meansinanycasethatmajorityoftheemployeesareentitledtoandhavereceived
motivationalpackagesinonewayortheotherifonlyitisawardedonthebasisoftimescale
(Figure1).Thoseclericalemployees must havereceivedcarloanbynowsincetheyworked
formorethansixteenyearsandabove.Themanagersmaybeheadingtowardretirementwould
beexpectinghousingloan.Theproblemisthatthesestaffmightnothavereceivedthehousing
loanorcarloanwhichisasourceofextrinsicmotivationforthemtostayonthejob.The

numbersofyearsanemployeeremainintheemploymentofthebankenhancehis/her
45

chancesofgettingmotivatedinwayoneortheother.Thegoodwillnatureofthebank
ensuringthatemployeestayinthejobforlongyearsbeforemotivatedwithapackagemust
beathingofthepast.Theeducationalqualificationoftheemployeesandtheir
responsibilitiesshouldbeconsideredinthecourseofpromotingemployeesintakingup
higherresponsibilityanalsograntingthemextrinsicmotivationalpackages.
Thenewstaffswhohaveworkedfor15yearsthebankshouldhelpthemsettleontheirbank
needssoastogivethempeacefulmindtostayonthejobwithsatisfaction.Thosewhohave
workedfor16yearsandabovemostlyrequirehousingloanandcarloanastheirextrinsic
motivationcomponent.Mostoftheemployeeswhoqualifyforthislongtermpackagesare
givenitandtheyintendnormallygiveuptheirbestinthedischargeoftheirscheduletasksin
thebank.Longservingemployeesexhibitahigherdegreeofselfmotivation.Thiscande
motivatetheemployeeswhodidnotworkinthebankformorethan5yearsandcantherefore
affecttheirperformance.WhereasGCBlimitedpolicyisforemployeestostayonthejobfor
morethanfive(5)yearswhichisdemotivatingforayoungfreshgraduateemployed.Some
staffhasstayedontheirgradeformorethanseventotenyearswhichdidnotpromote
successionplanforthebankandsomedonothaveaccesstotrainingprogrammesorganized
bythebank.ThemotivationpackagesthatexistedinGCBweresmallascomparedtothe
otherbanksforinstanceADBBankgiveGHS15,000GHS25,000forclericalsandGCB
th

givesGHS10,000.00ascarloan(www.intranet.gcb.gh.com.accesseddate20 May,2010
5:30pm)Eventhoughthereisapolicyforrevieweverytwoyears,moststaffdonotgetiton
timesinceothershadnotreceivedyet.Thesystemwouldberunningalrightbutdeepdown
mostofthestaffweredemotivatedandalsocouldnotgivetheirbest.

46

Figure4.4:YearsrespondentshavebeenworkingwithGCBLimited

Source:FieldSurvey,2011

4.3MOTIVATIONALPACKAGESFORSTAFFATGCBLIMITED
Motivationcangenerallybelookedatasbeingextrinsicorintrinsic.Forthepurposeofthese
analysesthemotivationsofGCBtoitsstaffwouldbeconsideredinbothcategories.
Extrinsicmotivation:
Theextrinsicelementsofmotivationencapsulatealleconomicbenefitsmadeavailableto
compensatestafffortheirservices,effortand/orachievements.Someoftheseelements
accordingtoKhanetal.(2010),includesalary,promotion,retirementandotherworking

rewardbenefits.

47

GCBsrangeofextrinsicmotivationalpackagesforitsemployeeslikemostorganizationsin
Ghana,coversperiodicenhancedsalariestoemployees,fringebenefits,promotionsandmany
others.(Table4.2)Thesemotivationalpackages,asamatterofpolicy,arereviewedevery
twoyearsbyemployeesunion,managementandboardofdirectors.GCBrangeofintrinsic
motivationalpackagesforitsemployeeslikemostorganizationsinGhana,coverstraining
anddevelopment,jobsatisfaction,responsibility,freedomtoact,scopetouseanddevelop
skillsandabilitiesandchallengingworkandopportunitiesforgrowth.Theintrinsicfactor
seekstoachievethelongtermgoalsforthebankwhilestheextrinsicachievedashortertime
goalforthebank.Theconsequenceoftheextrinsicisthatintheshortrun,itenticesthe
employeestodeliverandtoaugmentinachievingthelongtermgoalofthebank.The
employeeswhowantenhancedsalaryhasthetendencytomovetoanewbankwherethe
enhancesalaryismuchhigherthantheexistingonce.Managersshouldbeinterestedin
employeeswhoareachieversandtrytoensurethatallemployeesworktotheirfullpotential,
soastomovethebankforward.Thebankhasproventhatemployeeswhenmotivatedwith
enhancesalaryisstillabletoachievethebranchtargetandtheoverallcorporateperformance
(GCBEaglenewsletter2008).
Table4.1:KindsofMotivationalPackagesforrespondentsofGCBLIMITED.

Source:FieldSurvey,2011

48

Whenemployeeswereaskedtochoosefromarangeofmotivationalpackages,themost
importantonetoeachofthem,majorityoftherespondents,34.7%recognizedenhancement
ofsalariestoemployeesasthemostimportanttothem(table4.3).Thenextwasfringe
benefits(15.8%)andthenthethirdmostpreferredwaspromotions.Thusallthecategoriesof
staffinthebankareclerical,supervisorsandmanagerschoseenhancesalariesastheirfirst
priority.Wellpaidemployeesarenormallycommittedtotheirjobsandhardlyindulgein
fraudasagainstleanlypaidemployees.
Thechoiceofenhancedsalarybyemployeesraisessomebasicconcernsonthebankers
needsinthecompany.Thesaidchoiceisnecessarysoastoenablethemfinancetheir
physiologicalneedswhicharefundamentalinhumansasidentifiedbyMaslowinhis
hierarchyofneedsmodel.Theresearch,tothisextend,isconcernwiththerelativityof
satisfyingemployeesneedstotheirworkingtoachievecorporateobjectives.
Thesecondbestpackageforemployeeswasfringebenefit.Thefringebenefitsconstitute
foodallowance,fuelandmaintenanceallowance,rentallowance,riskallowanceand
responsibilityallowance.Asperfigure4below,employeesreceivedfringebenefitson
monthlyorquarterlybasis.Thesebenefitsareeasilyearnedbyallemployeesthantheother
benefitssuchascarandhousingloansthatareonlygiventolongservingemployees.These
benefitsgoalongwaytosupportthesalariespaidtoemployees.Thesepackagesaregivento
employeesbasedontheeducationqualificationandresponsibilitiesasidehowlongthe
personhasbeenworkingwiththebank.Thisisinlinewithgoaltheorywhereequitytypes
aregiventoemployeesbasedonfairpayforequalwork.
Thethirdispromotionwhichensuresthatemployeesadvanceintheircareerdevelopmentas
abanker.Promotionis technically the enrichment of ones job and its associated
remuneration.Thus,whenemployeesarepromoted,theyaregivenhigherpaytocompensate
49

fortheincreasedorhigherresponsibilitiesassignedthemtocarryoutthebankmandates.
Sinceeachbranchhaslimithastowhomanagesitandresponsibilitiesassigntoit.Thebank
policyforpromotioniseveryfouryearsanddependsonthenumberofvacancyavailableat
eachposition.Theemployeeswouldliketobepromotedinthebanktoensurecontinuityand
survivaloftheoperations.ThisisconsistentwithasimilarstudyinPakistanbyKalimUllah
Khan(2010).Thestudylookedatrewardsandmotivationofemployeesincommercialbank.
Inthestudy,majorityoftheemployeesselectedpaymentasthefirstmotivationpackage
whichcanaffecttheirperformanceinthebankinPakistan.ThisistrueasincaseofGCBs
inKumasizone.Wilson(1994),arguesthattheperformancemanagementprocessisoneof
theprimaryelementsofthetotalrewardsystem.Itistheprocessthatimpactsperformance
betweenwagesorsalariesandprovidesthebasisonwhichindividualresultsaremeasured
andcalculated.
PromotionwasthirdinthisstudybutwassecondinthePakistancommercialbanks case.
Thisimpliesthatthereisastrongrelationbetweenmotivationpackagesandemployees
performance.ThisisalsoinsupportofFredrick HerzbergsTwoFactorTheory.The
motivationalfactorsarefactorsthatareintrinsictothejob,suchasachievement,recognition,
interestingwork,increasedresponsibilities,advancement,andgrowthopportunities.

50

Figure4.5:Importanceofmotivationalpackagetorespondents

Source:FieldSurvey,2011
4.3.2TimescaleforrespondenttobenefitfrompackagesandAdequacyofPackages
Table4.4isaclearindicationthatall(100%)theviewsoftheemployeeswasincorporatedin
themotivationalpackages.Respondentsrepresenting(90.5%)wasoftheviewthatthe
packagestheirreceivedareenoughtomotivatethemtogivetheirbesttothebank.Onlya
fewrespondentsof(9.5%)saidthepackagesarenotenough(table4.5).Theemployees
believethatittakesalongertimeforthemtobenefitfrommajorpackagesofthebank.For
example,thehousingloanschemetakesupto1020yearsbeforeapersonqualifytobenefit
fromsuchpolicies.Theemployeesbelievethatifsuchpolicyisreducedfrom1020yearsto
fiveyearscontinuesservicewiththebankitwouldstimulateemployeesstayinginthebank.

51

Oncethesepackagesareputinplaceandarereviewedeverytwoyearsthereisarelationship
betweenmotivationandemployeesperformances.Whentheextrinsicpackagesarereviewed
anditispositiveandemployeesarehappysotheygiveuptheirbestforthebank.Thisis
becausemostofreviewedpolicyaddressissuedthataffectemployeeswelfare.Other
packageslikescholarshipforstaffcanbeputinplaceforemployeeswhowanttodevelop
theirbankingcareer.Thispolicymustnotbebondedwiththenumberofyearsanemployee
hastoservethebankbeforequalifyingforit.Thereshouldbeautomaticpromotionfor
employeeswhopassesthebankingcoursesexaminationwiththecharteredinstituteof
bankers.
Figure4.6:Incorporationofrespondentsviewonmotivationalpackage

Source:FieldSurvey,2011

52

Figure4.7Arepackagesenoughtomotivateyougiveyourbest?

Source:FieldSurvey,2011

Table4.2:Suggestedalternativeadequacylevelsofpackages

Source:FieldSurvey,2011
53

4.3.3ConduciveofOfficeEnvironmenttoenhanceWorkOutput
Morethanhalf(84.2%)oftheemployeesgavetheirviewsthattheirofficeenvironmentis
conduciveenoughtoenhancetheirworkoutput,leavingtheveryfew(15.8%)tosuggestthat
theirofficeenvironmentisnotconduciveduetouncomfortableswivelchairs,branchesnot
builduptotheultramodernstandard,notmuchfloorspacetosatisfycustomers,fluctuating
lighteningsystemandairconditionsnotingoodshape.Thisisshowninfigure(4.5diagram).
Hameedetal.(2009),investigatedtherelationshipbetweenofficedesignandproductivity
usingsubjectiveproductivitymeasurementmethod.Theperformanceofanemployeeis
measuredbytheoutputthattheindividualproducesanditisrelatedtoproductivity.
Productivity is defined variously as (i) that which people can produce with the least
effort; (ii) output per employee hour, quality considered (iii) the increased
functional and organizationalperformance,including quality (iii) a ratio which
measures how well anorganization(orindividual,industry,country)convertsinput
resources(labor,materials,machinesetc.)intogoodsandservices.Thisisconfirmedbythe
(84.2%)respondentanditisinagreementwithhameedetal.(2009)researchthatthereisa
relationbetweenofficedesignandemployeesproductivity.Oncetheofficeenvironmentis
conduciveforbusinessmorecustomerswouldbewillingtodobusinesswiththebank.The
longruneffectisthatemployeeswouldbehealthyandprofitabilitywouldbehigh,therateof
sickleaveswouldbedownanditbooststheimageofthebank.Theambienceofthebank
premisesmustbethebestandshouldportraythebankorganizationalculture.The
environmentofthebankmustintherelaxedmood,attractiveandbusinesslike.

54

Figure4.8ConducivenessofOfficeEnvironmenttoenhanceworkoutput

Source:FieldSurvey,2011

4.4EffectsofMotivationalPackageonEmployeePerformance
From(Table4.6),itiscertainthatthemotivationalpackages,irrespectiveofthetypeorkind
hasapositiveinfluenceontheemployeesinonewayortheother.Effectivemotivation
influencesloyalty,jobsatisfactionandthemanyassociatedworkingnovelties.Thestudy
revealedthatanevendespairingofmotivationinfluenceinemployee.Itrangesfrom(20%),
foremployeesloyaltyto(14.7%)beingpunctualityatwork.Innersatisfactionisthesecond
mostinfluencedworkcharacteristicsrepresentedby(17.9%)ofrespondents.Stayingonthe

job,delighttocustomersandrespectamongcolleagueseachattracted(15.8%)ofrespondent.
ThetheoryofAbrahamMaslowisagreedwiththeinnersatisfactionoftheemployees
55

becauseateachpointofrespondentsyearswiththebankaneedismetperthepolicyofthe
bank.Theloyalty(20%)oftheemployeesismostappreciatedsincemostoftheemployees
haveworkedinthebankformorethansixteenyearsandabove.Thisindicatesthatthereisa
goodrelationbetweenmotivationandemployeesperformanceforthebank.Thissupports
DaschlerandNinemeier(1989),findingsthatemployeesareworkingtosatisfytheirbasic
needs,forsurvival,beeconomicallysecured,getselffulfillingamongothers.Their
discussionreviewssomeofemployeerelatedconcernsthatcanbefoundinthevenueof
strategies to employees motivation.
An employee wants to satisfy its basic needs, linked to survival and security concerns and

adesiretobelong,togeneratepositivefeelingsfromwithinandfromothers,andtobe
Selffulfilled.
Most employees want (a) fair and consistent company policies in matters affecting them;
(b)managementtheycanrespectandtrust;(c)adequateworkingrelationshipswithManagersand
coworkers;(d)acceptablesalariesandworkingenvironment;(e)

Appropriatejobsecurityassurance;(f)favourablejobstatus.Therespectamongstcolleagues
alwayspromotestheemployeecoexistingintheofficeandthispromotescordialrelationship
withcustomers.Inthelongrun,customerscontinuetodobusinesswiththebankandthe
employeesperformingthebankmandatesachievethebanktargets.
However,irrespectiveofthedirectionoftheimpactorinfluenceofthepackagesonthe
employees,itpositivelyaffectsallstaffandtheirworkoutput(Figure4.7)confirmsthatmore
ofthestaffswouldhavebeenabletoachievehis/hercurrentperformancelevelifcurrent
motivationalpackageswerenotavailabletohim/her.

56

ThisshowsthatifGCBwithdrawsitsmotivationalpackagesitsteedanegativeimpactonthe
bankperformance.Theemployeeswouldbelackadaisicaltowardstheirworkeventhough
theircoreremunerationwillbepaid.

Figure4.9:Influenceofmotivationalpackageonemployeeperformance

Source:FieldSurvey,2011

Figure4.10:Employeeisabletoachievethesamelevelsofoutputwithoutmotivational
packages.

57

Source:FieldSurvey,2011
Figure4.11Effectsofmotivationalpackagesonrespondentoutput

Source:FieldSurvey,2011
4.5EffectofpackagesonGCBLimitedPerformance.
TheyalsobelievethatthepackageshavealsoimpactedpositivelyonGCBlimitedinthearea
ofefficiency(29.5%),depositmobilization(22.1%)andmanyothersthroughthemasaresult
58

oftheinfluenceonthem(Table4.8).Asthispackagetriggerthebranchtoachieveitsgoalsin
thelongrunthebankasagroupperformwellandleadtotheattainmentofthecorporate
performancetarget.Theassetsofthebankhasincreased,theprofitabilityishigh,deposit
levelgoodandloan/advancealsorepayable.Amongthefourselectedlistedbanks(thus
SCB,ECOBANKGhana,SGSSB,andCALbank)atGhanastockexchange,GCBLtdtopall
intermsofcustomerdeposits,bankassetsandloanandadvancesgivenouttopopulaceand
institution.(www.ghanastockexchangefinancialreport).Theperformanceindicatorisgood
butthereisstillroomforimprovement.Thiscanbedonebyintroducingmorenewproducts,
trainandretrainemployeestobeuptothetask.Theshareholdersvaluehasincreasedandthe
capitalgainoftheshareishighcomparetothebanksintheindustrythusfrom20062010the
sharevaluehasincreasedfromGHS0.60toGHS2.50overtheperiod.GCBLtd.Shareprice
hasincreasedfortheyear2010asagainstthefourlistedbanksintermsofsharepricerising
uptoGHS2.50(www.ghanastockexchangepriceindexofshare.
th

Accessedon20 December,2010)ThedividenddeclaredbyGCBLtdisGHS0.07whichtop
SGSSBandCALBankdividendvaluesof(GHs0.045and0.036respectively)but
ECOBANKANDSCBtopGCBLTDintermsofthedividenddeclaredfortheyear2010
(ECOBANKGHS0.20andSCBGHS3.75).

59

Figure4.12:EffectofmotivationalpackagesonGCBperformance.

Source:FieldSurvey,2011
Wanyama(2010)findsthat,highlysatisfiedemployeesshowaboveaveragelevelsintheir
employeeproductivityandprofitability.Thiswouldreflectthatthebankwillcontinueto
surviveinitoperations.Wanyama(2010)notesthatemployeeperformancedependsonthe
amountoftimeanindividualisphysicallypresentatajobandalsothedegreetowhichheor
she is mentally present or efficiently functioning while present at a job. Companies must

addressbothoftheseissuesinordertomaintainhighworkerperformance,andthismay
occurthroughavarietyofstrategiesthatfocusonemployeesatisfaction,health,andmorale.

Highlysatisfiedgroupsofemployeesoftenexhibitaboveaveragelevelsofthefollowing

60

characteristics:customerloyalty(56%),productivity(50%),employeeretention(50%),safety
records(50%),andprofitability(33%).
Fortheperiod20062010,thebankdepositlevelhasgrownfromGHS634,573GHS
1,575,281.Theachievementofthisresultisaconcertedeffortfrommanagement,supervisors
andclericals.Thedepositofthebankmeanscustomershaveincreasedtheirsavingsand
investmentwiththebankandareconfidentitisbeingsafeaspertheanalyseddata.Fromthe
findingtheprofitabilityofthebankindicatesthatthebankisperformingwelleventhoughit
hasthelowestpercentage(10.5%).Banksmajorsourceofincomeisinterestreceivedfrom
thelendingofmoneythatisadvancestocorporateinstitution,smallbusinessandindividuals.
Thebanksloanportfoliohasover5years(20062010)increasedfromGHS364,539GHS
1,003,682attractingapercentageof(171.15%).Theyear2006,profitaftertaxwasGHS35.7
millionasagainsttheyear2010profitaftertaxwasGHS56.1millionshowthatboth
increasesinincomeonloaninterestandmiscellaneousbusinessaremajorrevenueaspectof
thebank.TheAssetsofthebankhasincreasedovertheyearsandthisexpansionofthebank
assetinthefuturebringsaboutfutureprofitofthebank.Theassetsoverthefiveyears,has
grownfromGHS779,202toGHS2,112,822.Thisrepresentsapercentagechangeof
108.03%overthefiveyearsperiodofbanksactivities.

FINANCIALPERFORMANCEOFGCBFROM2006TO2010
Fromfigure4.7,thebankachievedmuchimprovedfinancialresultsin2010asagainsteach
ofthepastfiveyearsbeginningfrom 2006. In 2010, the groups profit before tax of GHS
91.313millionswas 133 percent above that of 2006. This shows that group s profit is not
badandanimpairmentchargeofGHS455millionpaidbygovernmentaspartTORdebtmade

61

the groups to make profitthantheyear2006.Thismadethebanktoplacethirdinterms

profitwhencomparedwiththefourselectedbanksfortheanalysis.Thisimpairmentoccurred
in2006asaresultofletterofcreditissuedforTemaOilRefinery(TOR)toliftcrudeoilinto
thecountry.ThegovernmentofGhanamadepartpaymentinthefinancialyearof2010.This
loanrecoveredmadetheincometorise.In 2010, the banks distributable profit after tax was
GHS56.1millionwhichwas175percenthigherthantheaftertaxprofitofGHS35.7million
inyear2006.Theearningspersharehavealsoincreasedby13.1percentfortheyear2010.
Thecustomerdepositalsoincreasedby67.45percentthusfrom2006to2010.Thisshows
morecustomersincluding;individuals,smallscalebusiness,companiesandgovernments
organizationsopenedaccountswiththebankandalsoincreasedtheirdepositswiththebank.
Bothmanagersandemployeesplaytheirrolebyensuringthatnewcustomersstaywiththe
bank.Theshareholdersfundhasincreasedby18.75percent.Thismeansthatthesharevalue
atthegoingmarketpricehasincreased.The2010goingmarketpriceisaboutGHS3.00
whichwashigherthan2006priceof0.50GHSpershare.Thedividendpaidtoshareholders
was0.07GHSpershareandthiswashigherthanwhatwaspaidin2006whichwas0.035
GHSpershare.Totalloansandadvancesincreasedby175.00percentwhichmeansthatmore
loansweregivenin2010thanin2006.Thismeansthatmoreincomewillbegeneratedin
2010thanin2006.Totalassetsalsoincreasedby171.15percent.Thismeansthattheassets
wouldbeconvertedtomakemoreprofitsforthebank.Theseemployeesperformancecannot
berelegatedtothebackgroundhencemotivationshouldbedirectedtowardstheemployees.

62

Figure 4.13FinancialhighlightsofGCBannualreportfor20062010

Source:GCBAnnualReport,2010
ThebranchesintheKumasizonecontinuallyimprovedupontheirbranchperformance
budget.Theperformanceofthebranchesofthebankinthefaceofstiffcompetitionfromthe
rivalrybankbringstobeartheenormouscontributionofthestafftosustainthegrowthofthe
bank.Eachbranchscontributionsmakeupthetotalfinancialperformanceindicatorofthe
groupbank.Theindividualbranchesasindicatedintable4.10showsthattheincreasethe
depositlevelofthebranchesincreasedfrom2009to2010signifiesthatmorecustomersare
jointhebankinthemidstofstiffcompetitionfromtheircompetitors.Thisshowsthatthereis
increaseindemandforcustomerstosavewiththebankandalsoenjoyrelativecompetitive

interestrateandmoresmallscalebusinessandcompaniesarepartakingintheserviceofthe
63

bankandthisbuttressthepointthatemployeesaregivingouttheirbestintermsoffirstclass
servicedelivering.
Theloansandadvancesmeanthatasmoredepositisreceivedbythebankthisdepositcanbe
givenloanstocustomerssoastogeneratealotofincometothebranches.Theloansgivenoutto
customersmustberecovered,whilessomebranchesloanlimitswereincreasedtogivemore
individualsloanandcorporateadvancestomeettheincreaseddemandforloans.Theloansare
themajorincometothebankandifmoreoftheloansarerecoveredthenitmeansthatmore
incomecanbeearnedwhichtranslateintomoreprofitbeingmadebythebank.Theefficiency
levelofthebrancheswouldhelpmanagerstocutdowncostonoperatingactivitiesmeaningthat
moreprofitwouldmakebythebranches.The2009/2010indicatesthatthebranchesaredoing
wellandthestaffmustbetrainwellandmotivatedbyequitytheoryofmotivation.
Table4.3Selectedbranchesofperformancereportfor2009/2010
Bank
Deposit
Deposit
2010Loans
2009
Profit
Branches
2010
2009
Loans
2010
2009
#1
13,765,197
7,897,884
986,727
724,696
297,015
618,714
#2
32,694,819
26,663,845
10,078,701
8,017,762
2,557,058
1,111,967
#3
8,033,656
3,256,598
33,609

68,000
544,997
48,517
#4
20,747,950
18,829,675
15,185,064
1,372,410
2,031,451
1,837851
#5
9,899,561
7,491,683
673,264
893,444
199,883
31848
GCBLTDBANKFINANCIALPERFORMANCECOMPAREDWITHOTHER
BANKSINTHEINDUSTRY.
ThefourselectedbankswhichhavebeenlistedontheGhanastockexchangemarketareas
follows:EcobankGhanaLimited,SocietalGeneralandSocialSecurityBank(SGSSB),
StandardCharteredBank(SCB)andCalBank.

64

ThesebanksareperformingwellinthebankingindustryaswellGCBLtd.EcobankandCal
Bankarenewbanksintroducedintothebankingindustrywiththeintroductionofthe
universalbankinglaw.SCBandSGSSBarebankswhichhavegrownovertheyearslike
GCB.Whenrankedinthebankingindustryintermsofthecorebankingperformance
indicators,GCBisnottoppinginalltheindicatorsbutitisperformingwellintermsofits
networkofbranchesacrossthelengthandbreadthofthecountry.Theoldestofthesebanks
arearrangedasfollows;SCB,GCB,SGSSB,EcobankandCalbank.
Theperformanceindicatorstobecomparedareasfollows:Customerdeposits,Loansand
advances,totalassets,theprofitafter tax and shareholders value.
GCBtopsfirstamongstthebanksintermsofcustomerdepositsfortheyear2010.Thisisasa
resultofbranchesineverydistrictandregionalcapitalandthemotiveofservingthe
indigenousGhanaiansbothrichandpoor,literatesandilliterates,pensioners.Ecobankranked
secondintermsofcustomerdeposits.EcobankGhanaLimitedismovingintonewmarket
segmentsinitsoperations.Currently,ithasopenedanewbranchinTamale.SCBclosed
mostofitsbrancheswhichwerenotmakingprofitintheregionalcentres.Itisthirdinterms
ofcustomerdeposits.SCBhasanichemarketsegmentinitsoperationswhileGCBhasa
mixedmarketsegment(focusandniche).GCBismakingheadwayintermsofits
technologicalproductsbyintroducingintothemarket,mobilebanking,internetbankingand
plasticcards(GCBAnnualreport2010).Fromtable4.4thechangesinpercentageforthe
periodfrom2006to2010SGSSBtopfirst,Ecobankissecond,CALBankisthirdandGCB
isfourthandSCBisthelastbank.Thisshowthatovertheperiodallthebankshavemade
significantincreasedintermsofcustomersbased.
GCBTotalloansandadvancescomparedwiththefourlistedbanksarerankedfirst.Thetotal
loansgrantedbyGCBfrom2006to2010haverisenfromGHS364,539toGHS1003,682in
65

thousands.GCBfigurecomparedwith EcobanksloansandadvancefigureofGHS496,043
in2010isrelativelybiggerinthebankingindustry(EcobankGroupAnnualReport).SCB
recordedafigureofGHS467,152fortheyear2010(StandardCharteredBankAnnual
Report,2010).GCBgivesallkindsofloansandensuresthat,theloansgivenarerepayable
withinthestipulatedtime.Withtheimprovedtechnologyandnationwidenetwork,customers
canapplyforaloanatanyplaceoftheirchoicewithoutnecessarilygoingtotheirdomicile
branches.MajorityoftheloansaregiventoTemaOilRefinery(TOR)andso,when
governmentpaidfortheTORdebtin2010,GCBmadehugeprofit(GCBAnnualreport
2010).Ecobanks rank first in terms of changes in the loans and advances for the year 2006 to

2010by205.73%againstGCBwhichisthirdwithafigureof175.32%.Thismeansthatmore
loans and advance are given by both banks but Ecobanks is topallthebank.Inthelight
of GCBhastodomorebygivenoutloansandensurethattherecoveryrateishighandused
theirimprovedtechnologytoattractnewcustomerspatronageintheloanfacilityofthe
bank.CALbankissecondintermofloansandadvances.
ThetotalassetsofGCBarerankedfirstcomparedwiththeotherbanks.Thetotalassetsover
thefiveyearsperiod(2006to2010)hasrisensteadilyfromGHS779,202to2,112,822(GCB
AnnualReport2010).Morebrancheshavebeenopenedforthepastsixyears.GCBhasa
total number of branches up to 157, 106 ATMs and 15 agencies. SCB is second with an
amountofGHS1,667,882for2010.EcobankisthirdwithanamountofGHS1,521,229for
2010,www.gse.com,browsed10/11/2011.TheassetsofGCBaremorethantheotherbanks.
GCBLimitedshouldchannelitsefforttoensuremoreprofitsarederivedfromtheassetsand
moreespecially,thehumanresourcewhichisthemostcrucialaspectofthebankmustbe
motivatedtodeliverandservecustomerswell.SCBandEcobankassetsareatkeygeographic
locationswhichappreciateinvaluewithtime.TheassetsofGCBareunder
66

utilizedtoitmaximumoperation.Intermsofchangesinpercentageovertheperiod,SGSSB
isfirst,Ecobankissecond,Calbankisthird,GCBisfourthandSCBisfifth.
GCBLimitedismakingprofitinitsoperations.GCBplacedthirdintherankingwithother
banksprofitaftertaxisdeclaredfortheyear2010.GCBprofitfigureisGHS56.1million
comparedwithEcobankthattoppedwithGHS60.117million(EcobankAnnualReport,2010
andGCBAnnualReport2010).SCBalsomadeaprofitaftertaxofGHS57.4million(SCB
AnnualReport,2010).ThisshowsthatassetsofGCBareunderutilizedtoitsfullcapacityand
thechargeofthebankislowercomparedwiththetwobanks.
ThesharepriceofGCBin2006wasGHS0.60andhasrisentoGHS2.50for2010.This
meansthat,shareholdersvaluehasquadrupledintermsofthepricesinthestockexchange
market.MoreofGCBsharesaretradedinthestockexchangemarketthananyotherbank.
AmongthefivebanksGCBplacedthirdinthedeclaringofdividendstoitsshareholders.
GCBdeclaredadividendofGHS0.07(GCBAnnualReport,2010).SCBdeclaredadividend
ofGHSofGHS3.75(SCBAnnualReport,2010).EcobankalsodeclaredadividendofGHS
0.20(EcobankAnnualReport,2010).SCBdividenddeclaredismorethanthesharepriceof
GCB.Employeesaremadetobeownersofthebankbybuyingmoreofthesharesofthebank.
Thisstrategyhashelpedthebanktoincreasethesharepriceanddeclaredthehighestdividend
toitsshareholders.GCBalsohasthispolicy,butitisnotenforcedtothecore.
Table4.4:ComparisonofkeyperformanceindicatorsofGCBwithotherbanks.
LOANS
AND
YEAR
YEAR
%
ADVANCES
2006
2010
Change

GHS000
GHS000
ECOBANK
162,245.40

496,043
205.7362

SGSSB
175,484
298,750
70.24344

SCB
239,918
467,152
94.71319

CALBANK
85,680.10
256,634
199.5258

67

GCB
364,539
1,003,682
175.3291

CUSTOMERDEPOSIT

ECOBANK
335,637.20
1,116,332
232.6008

SGSSB
58,046.00
495,327
753.3353

SCB
445,544
1,092,442
145.1928

CALBANK
85,039.20
275,543
224.0188

GCB

634,573
1,575,281
148.2427

TOTALASSETS

ECOBANK
431,861.20
1,521,229
252.2495

SGSSB
123,829
685,912
453.9187

SCB
711,011
1,667,882
134.5789
CALBANK
157,008.4
499,751
218.2957

GCB
779,202
2,112,822
171.152

PROFITAFTERTAX

ECOBANK
10,936.70
60,117
449.6813

SGSSB
9,994.40
19,370
93.80853

SCB
30,748
57,497
86.99428

CALBANK
4,550.20
20,251
345.0574

GCB
35,700
56,100
57.14286

Source:www.ghanastockexchange.PDF.
SummaryDiscussion
Theroleofrespondents,motivationalpackages,effectsofmotivationalonemployees
performance,effectsofmotivationoncorporateperformanceandcomparingGCB
performancewithotherbanksintheindustryhavebeendiscussed.Theanalysisofeachsub
headinghasbeendiscussed.Iwouldproceedswithchapterfivetodiscussedthemajor
findings,conclusionandrecommendation.

68

CHAPTERFIVE
SUMMARY,CONCLUSIONANDRECOMMENDATIONS
5.0Introduction
Thechaptercoversthesummaryofmajorfindings,conclusionbasedonthefindingsandthe
recommendations.
5.1SummaryofMajorFindings.
5.2.1

ASSESSING THE MOTIVATIONAL PACKAGES AT

GCB:

ThetwocategoriesofmotivationalpackageswhichwereidentifiedinGCBarenamely
extrinsicandintrinsicmotivationalpackages.Theelementsidentifiedundertheextrinsic
motivationalpackagewereenhancedsalary,fringebenefit(variousallowances),carloan,
housingloanandthatoftheintrinsicwerepromotion,recognition,rolesandresponsibility,
traininganddevelopment,growthandopportunity.TheClericalsareinterestedinextrinsic
motivationparticularlyenhancesalaryandfringebenefits.Thisshowsthatclericalstaff
desireshorttermrewardstomeettheirphysiologicalneedsandaresatisfiedwhenrewarded
tosteedonachievingtheirtargets.Themanagersontheotherhandareinterestedinintrinsic
motivationsuchasrecognitionandpromotion.ThisisinconformitytoMacllendTheoriesof
achievement,powerandaffiliation.Themanagersensuredthattheclericalstaffachieved
theirroutinescheduledtargetswhichconsolidateto the banks targets and finally the
corporateconglomerategoalofthegroup.Attheendoftheday,thesemanagersare
appreciatedbyandrewardedaccordinglybytheBoardofDirectors.Therewasgreater
numberofemployeeswhohaveworkedwiththeorganizationforthansixteenandabove,
whichcallfortheattentionofmanagementtoputsuccessionplaninplacefornewemployees
toberecruited.
69

Managementhadpolicyinplacetoensurethatdisciplinaryactionsaretakenagainstanyone
whocausedfinanciallosstothebank.ManagementpolicyisinconformitytoFrederick
Herzbergstwofactortheoriesbymakingsurethatstaffsandmanagerscomplywiththe
bankpolicy.Theyrewardemployeeswhentheyperformedandpunishedthemwhenthey
commitfraudoroffence.
5.2.3EFFECTSOFMOTIVATIONALPACKAGEONEMPLOYEE
PERFORMANCE
Thejoyofeveryemployeewouldproduceaconduciveandfriendlybusinessenvironmentfor
customerstobeserved.Theinnersatisfactionproducessomehighmoralforthecore
employeestogiveouttheirbestintermsofservicedelivery.Theservicedeliverytimewould
befastforthebranchtomakemoreprofitsincetheturnoverrateforservicingcustomersis
high.
Wededucethatmotivationalpackageshadinfluencedsomeemployeestocometowork
early,staylongertowork,servecustomerscheerfullywithgreatjoy.Thisreduced
absenteeismandensuresthatthedailyactivitiesofthebankaredischargedwithease.The
rateofcomingtoofficewouldgiveroomformanagerstostrategicallyplanaheadinsteadof
saddlethemselveswithtacticaloroperationalissues.
Fromtherespondents,Ifindouttheyshowaveryhighlevelofloyaltytobank,andwhichis
goodforthebank.Thelongeranemployeeremainsintheemploymentofthebank,themore
likelyisitthatmostcustomerswillbeusedtosuchapersonandmayfinditeasytodivulge
theirservicewishesorexpectationsfromthebank.Suchbitsofinformationmaybevery
usefulforrestructuringtheservicedeliverystrategiesofthebank.Theaccumulated
experienceofsuchaloyalstaffcouldalsoinfluenceanincreaseinthedepositsofthebankas
70

wellasreduceloanrepaymentdefault.Bothofthesecanpositivelycontributetoanincrease
intheprofitabilityofthebank.
Themajorityoftherespondents,indicatethattheyofficeenvironmentposesagoodimage
aboutthebanktoitscustomers.Ultramodernbuildingsattractnewcustomerstodobusiness
withthebank.Thegoodfurnitureandgoodatmospheretodobusinesswouldalsoattract
morebusinessandincreasethebankperformance.Thehealthandoccupationalhazardof
workersisaddressedbymakingtheofficeattractiveforbusiness.Onlyafewrespondents
indicateotherwise.
Theideasofemployeesaretakennoteofinthedecisionmakingofthebranch.Thereforethe
branchisabletostressontheirchallengesintermsofmotivationalissuestomanagers.The
managerisabletoensurethatthebranchoperatessmoothly.100%oftheemployeesindicate
thatwithoutmotivationalpackagesinplaceforthem,thedesiredresulttobeachievedatthe
branchlevelwouldbedifficult.
5.2.4

EFFECTSOFMOTIVATIONALPACKAGESONCORPORATE

PERFORMANCE.
Thebankdepositlevelhasgrownovertheyearsfrom20062010.Theachievementofthis
resultsinaconcertedeffortfrommanagement,managersandclericals.Thedepositofthe
bankmeansmorecustomerscanbesurethattheirsavingsandinvestmentwiththebankis
secure.
Profitabilityofthebankisgoodanditisanindicationthatthebankisperformingwelland
canembarkonnewproductsandgiveemployeestrainingprogrammes.Butmoreneedtobe
donebythebankwhenprofitiscomparedwiththeothercompetitorbanks.
71

Loans/Advancesthebankgivesloanstocorporateinstitution,smallbusinessandindividuals
thisismajorrevenueaspectofthebankasidetheothermiscellaneousbusinessofthebank.
TheAssetsofthebankhasincreasedovertheyearsandthisexpansionofthebankassetin
thefuturebringsaboutfutureprofitofthebank.Theassetsofthebankisunderutilisedin
relationwiththeotherbanks.
ThepackageshavealsoimpactedpositivelyonGCBlimitedinitsareaofoperationsinterms
ofefficiency(29.5%).Thismeansthatmanagerscanmanageitsoperatingexpenseswithinits
rangeandthereforeincreaseprofits.Thebranchachieveditsgoalsinthelongrun,thebank
asagroupperformedwellandalsothecorporateperformanceisattained.Theshareholders
valuehasincreasedandthecapitalgainoftheshareishighcomparedtothebanksinthe
industry.
CONCLUSION
5.3.1ASSESSINGTHEMOTIVATIONALPACKAGESATGCB
ItcouldthereforebeconcludedthatGCBstaffenjoysboththeintrinsicandtheextrinsic
motivationalpackages.Theclericalsprefermoreoftheextrinsicmotivationalpackages
whichthebankshouldprovideandthemanagerspreferintrinsictypesofmotivation
packages.
AlsomanagementhadtoputinplaceboththeMaslowtheoriesandMacllendtheoriesand
ensurethatemployeesandmanagersarewelltogiveouttheirbesttoachievethebank
targets.Thequantityofthepackagesshouldbeincreasedbymanagement.
Itcouldbesaidthattheemployees(especiallythosewhoperformthecoreduty)ofthe
servicehavespentmorenumberofyearswiththeorganizationwhichmeansthatworkers
72

hadacquiredthenecessaryskillstocarryouttheroutineworkofthebankandthishasthe
tendencytoaffectperformancepositively.Macllendtheoryisinsupportoftheviewthat,at
certainpoint,moneyisnotallbutratherthanrecognitiontomanagersisparamount.Thegoal
theoryisrelevantandappreciatedinthebanksincethebankworkswithtargetsandthedrive
andeffortofemployeesmustbesustainedtoachievethegoalofthebank.
5.3.2

THEEFFECTSOFMOTIVATIONALPACKAGESONEMPLOYEES

PERFORMANCE
Itisagreedthatthejoyofemployeesinservingcustomersisveryvitalinthebanking
industry.Theofficepremisesmustbeconduciveforboththecustomersandtheemployeesto
enhancesmoothbusinessandbuildagoodimageintheeyesofthepublic.
Managementmustensurethatmostemployeesneedsmustbeidentifiedandsatisfiedto
enhanceperformance.Besidesthat,everyneededresourcemustbeprovidedtothemanager
andideasfromemployeesobjectivelyevaluatedandifrelevant,usedtoassistoperationsand
pushthebranchtoachieveitsperformancetargetandoverallthebankgoals.
5.3.3

THEEFFECTOFMOTIVATIONALPACKAGESONCORPORATE

PERFORMANCE
Theresearcherconcludedthatwhenemployeesaremotivatedtheyareabletoturnthe
fortunesofthebankintermsofincreaseddeposit,loan/advancesandprofitability.Also,the
shareholdervalueisincreasedintermsofthecapitalgainsanddividendsresultingfrom
increasedprofitability.Itpromotesefficientutilizationofassetsforthegenerationofhigher
returns.A highly motivated employees agility can effectively reduce operational cost
withoutcompromisingservicequalityandprofitability.

73

Finally,thereisasignificanteffectofmotivationonemployeeperformanceandifthe
motivationpackagesarewithdrawntherewouldbezeropercent(0%)ofemployees
performancelevel.Achangeinthelevelofmotivationwillresultinthesameproportional
changeinthelevelofperformance.Thereforethecorporateperformanceofthebankwould
reportnegativereturns.
5.4RECOMMENDATIONS
Thefollowingrecommendationshavebeenmadebasedonthesummary:
ASSESSINGTHEMOTIVATIONALPACKAGESOFGCBLTD
Thereshouldbemorerecruitmenttoreplaceoldexperiencestaffinthebanktoensure
continuitysincemostoftheemployeeshavespentmorethansixteenyearsintheservice.
Theclericalemployeesshouldbemotivatedwithmeritoriouspromotions,jobrotationandjob
enrichmenttoreduceboredomandchallengedtobeinnovative.Supervisorsandmanagerial
staffshouldbetrainedtodevelopsharperskillssothatemployeescanbeuptothetaskwhen
giventheopportunity.Traininganddevelopmentofemployeesmustnotbedownplay.
Theperiodforextrinsicmotivationalpackagestolongservingstaffcouldberevieweddown
orreducedsothatmeritoriousstaffwithlesserperiodofservicemayalsobenefitfromit.This
canhelptomaintainsomestafffromleavingGCBtootherbanksandthequantumofthe
levelmustincreasedtomeetthelevelsinbankindustry.
EFFECTOFMOTIVATIONALPACKAGESONEMPLOYEEPERFORMANCE
BoardofDirectorsandmanagementshouldapproveofnewmotivationalpackageswhich
influenceperformanceatthebank.Thenewemployeeonclericalschedulecanbegivencar
74

loanandenhancedsalariestomotivatehim/hertostaylonger.Thesupervisorsandmanagers
canbegivenhousingloanandrecognition,suchasbestloanrecovery/depositmobilising
officerfortheyear,etctocontinuouslyseekandworkforhigherachievements.Management
candowellbyincreasingthevalueofthemotivationalpackageswhichisalreadyinexistence
toenhanceperformance.
Furthermore,theinnovationsofemployeesmustbeacceptedandarticulatedinorderto
enhancemotivationandforthatmatterperformance.
Besidesthis,thefewBrancheswhicharenotinconduciveenvironmentmustbeputintobest
modernstandardandmanagersmustensurethatemployeestakedelightinservingcustomers
allthetimewithimprovedstrategies.
EFFECTSOFMOTIVATIONONCORPORATEPERFORMANCE
Theresearcherrecommendsthatmanagementmustensurethatallbranchesareresourced
andcontinuetotakestrategichumanresourcedecisionsthat would solidify the employees
potentialsandfinallyincreasethedepositandprofitofthebank.
Theequitytheorymustcontinuetoexistinthebankandmanagementmustexecuteittothe
lattersinceemployeesarealsoonthemovetoachievetargetsandfollowinstructionsfrom
managers.Itmustnotbethetopmanagementonlywhoshouldenjoybenefitsbutthe
employeesandshareholdersmustbesatisfied.Thetargetsetforbranchesmustberealisticto
ensurethattheyareachievableandemployeesmustbetrainedandretrainedtosellthebanks
producttocustomerstoachievetheoverallcorporateperformance.
Finally,emphasisshouldbeplaceontheMacllendtheorywhenpunishmentsaretobe
executedonemployeesandmanagers,whohaveservedthebankforaverylongtime,to
75

ensurethatthisdoesnotdemotivatethedriveanddesirousofachievinggreatnessforthe
bank.

FurtherResearch
ItisrecommendedthatfurtherstudycanbeextendedtoTamalezoneofthebanktoassessthe
effectsofmotivationonemployeeperformance.Thesamplesizecanbeenlargedinthoseregions
anddifferentstatisticaltoolcanuseintheresearch.Thisfindingcouldbringrelativedifferent
motivationalpackagesthatcouldbeimplementedintheseregionsbymanagement.Thatapart,
mostprivatecommercialbankcanalsoinvestigatelevelsofmotivationthatcan
enhance their employees performance.Theirfindingwouldhelpthebankstodetermine
which packages their employees desire most for the bank to grow in this dynamics banking

environment.

76

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83

APPENDIXA
KWAMENKRUMAHUNIVERSITYOFSCIENCEANDTECHNOLOGY,KUMASI
INSTITUTEOFDISTANCEOFDISTANCELEARNING
QUESTIONNAIRE
ThisstudyisbeingconductedaspartoftherequirementsfortheawardofaCommonwealth
ExecutiveMasterinBusinessAdministrationDegreebytheSchoolofGraduateStudies,
KwameNkrumahUniversityofScienceandTechnology,Kumasi.
The research topic is AssessingtheEffectofMotivationonEmployeesPerformance:
ACaseStudyofGhanaCommercialBank Limited, Kumasi Zone

Theinformationyouprovidewillthereforebeusedforacademicpurposesonlyandwillbe
treatedwithconfidentiality.Pleaseanswerthequestionswhicharestatedbelow
SECTIONA:SocioDemographicCharacteristics
Name of Branch .
What is your designation at GCB Limited? .
3.Gender

Male[]

Female[]

HowmanyyearshaveyoubeenworkingatGCBLimited?......................................
Please state your core duties at GCB Limited
..
SECTIONB:MotivationalPackagesforStaffatGCBLimited
PleaseindicatewhichofthefollowingisamotivationalpackageforemployeesoftheBank?
(Multipleresponses)
Yes

No.

i.

EnhanceSalariestoemployees

84

[]

[]

ii.
Employeecarloanscheme
[
]
[
]
iii.
Employeehousingloanscheme
[
]
[
]
iv.
Fringebenefits(i.e.allowances)
[
]
[
]
v.
Promotions
[
]
[
]
vi.
Recognition
[
]
[
]
Others (specify)..

Byrankingtheminorderofprioritywhichpackageismostimportanttoyou?(Please
beginwiththemostfrom1to6)
i.
Enhancedsalariestoemployees
[
]
ii.
Employeecarloanscheme
[
]
iii.

Employeehousingloanscheme
[
]
iv.
Fringebenefits(i.e.allowances)
[
]
v.
Promotions
[
]
vi.
Recognition
[
]

8.Howoftendoyoubenefitfromthesepackages?

Monthly
Yearly
Other
i.
EnhanceSalariestoemployees
[]
[]
.
ii.
Employeecarloanscheme
[]
[]
..
iii.
Employeehousingloanscheme
[]
[]

iv.
Fringebenefits(i.e.allowances)
[]
[]
.
v.

Promotions
[]
[]
.
vi.
Recognition
[]
[]
..

85

9.Aretheviewsofemployeesincorporatedinthesepackages?
(i)Yes[]

(ii)No[]

10.DoyouthinkthesepackagesareadequateenoughtomotivateemployeesofGCBtogive
outtheirbesteffortattheirworkplaces?
(i)Yes[]

(ii)No []

11.Ifnopleasesuggestalternativesadequacylevelsofpackagesformanagementofthe
bank.

12.Isyourofficeenvironmentconducivetoenhanceyourworkoutput?
Yes[]No.[]
SECTIONC:EffectofMotivationalPackagesonEmployeePerformance
13.Inwhatwaysdothesepackagesinfluenceyou?

Yes
No
i.
Earlyreportingtowork
[]
[]
ii.
Stayingonthejob
[]
[]
iii.
Delighttocustomers
[]
[]
iv.
Respectamongstcolleagues
[]
[]
v.
Innersatisfaction

[]
[]
vi.
Loyaltytothebank
[]
[]
14.Whatistheeffectofthesepackagesonyourworkoutput?Excellent[]VeryHigh[]
High[]Cannottell[]
15.Wouldyoubeabletoachievethesameleveloutifthesepackageswerenotintroducedor
werewithdrawnbymanagement?(i)Yes
86

[]

(ii)No []

16. In your view what is the effect of these packages on GCB s performance in the following

Areas
High
Average
Low
Cannottell
i.
Profitability
[
]
[
]
[
]
[
]
ii.
Depositmobilization
[
]
[
]
[
]
[
]
iii.
Loandefault
[
]
[
]
[
]
[
]
iv.
Staffretention
[
]
[
]
[
]
[
]
v.

Customerbase
[
]
[
]
[
]
[
]
vi.
Efficiency
[
]
[
]
[
]
[
]
THANKYOUFORANSWERINGTHEQUESTIONS.

87

APPENDIXB
LISTOFSTATISTICALTABLES

4.1 Gender of respondent.

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Male
46
48.4

48.4
48.4

Female
49

51.6
51.6
100.0

Total
95
100.0

100.0

4.2 Designation of respondent within GCB limited.

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Manager
13
13.7
13.7
13.7

Officer/Supervisor

38
40.0
40.0
53.7

Clerical Staff
44
46.3
46.3
100.0

Total
95

100.0
100.0

4.3 Core duties of respondents at GCB limited.

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Customer Service
45
47.4
47.4
47.4

Representative

Loans Officer & System

38
40.0
40.0
87.4

Administrator

Managerial & Operational Role

12

12.6
100.0

12.6

Total
95
100.0
100.0

88

4.4 Importance of motivational packages to respondents

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Enhanced Salaries to Employee
33
34.7
34.7
34.7

Employee Car Loan Scheme

12
12.6
47.4

12.6

Employee Housing Loan Scheme

10
10.5
10.5
57.9

Fringe Benefits
15

15.8
73.7

15.8

Promotion
14
14.7
14.7
88.4

Recognition
11
11.6
100.0

11.6

Total
95
100.0

100.0

4.5 Time scale for benefiting from motivational packages

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Years
80
84.2
84.2
84.2
Months
15
15.8
15.8
100.0
Total
95
100.0
100.0

4.6 Incorporation of respondents view in packages

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Yes
95

100.0
100.0
100.0

4.7 Are packages enough to motivate you give your best?

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Yes
86

90.5

90.5
90.5

No

9.5
9.5
100.0

Total
95

100.0
100.0

89

4.8 Conduciveness of office environment to enhance work output

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Yes
80
84.2
84.2
84.2

No
15
15.8
15.8
100.0

Total
95
100.0
100.0

4.9 Number of years respondents have been working with GCB.

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
11-15 Years
25
26.3
26.3

26.3

16 Years & Above

70
73.7
73.7
100.0

Total
95
100.0
100.0

4.10 Influence of motivational package on respondents

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Early Reporting to Work
14

14.7

14.7
14.7

Staying on the job

15
15.8
15.8
30.5

Delight to Customers
15
15.8
46.3

15.8

Respect amongst colleagues

15
15.8
15.8
62.1

Inner Satisfaction
17
17.9
80.0

17.9

Loyalty to the Bank

19
20.0
20.0
100.0

Total
95
100.0

100.0

4.11 Effects of motivational package on respondents work output.

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
High
95
100.0
100.0
100.0

90

4.12 Ability to achieve same level without motivational packages.

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
No
95
100.0
100.0
100.0

4.13 Effect of motivation package on GCB.

Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Profitability

10.5

10
10.5
10.5

Deposite Mobilization
21
22.1
22.1
32.6

Loan Default
10
10.5
10.5
43.2

Customer Base
26
27.4
27.4
70.5

Efficiency
28
29.5
29.5
100.0

Total
95
100.0
100.0

4.14Selectedbranches,performancereportofGCBfor2009/2010
Bank
Deposit
Deposit
2010Loans
2009
Profit
Branches
2010
2009
Loans
2010
2009
#1
13,765,197
7,897,884
986,727
724,696
297,015
618,714
#2
32,694,819
26,663,845
10,078,701
8,017,762
2,557,058
1,111,967

#3
8,033,656
3,256,598
33,609
68,000
544,997
48,517
#4
20,747,950
18,829,675
15,185,064
1,372,410
2,031,451
1,837851
#5
9,899,561
7,491,683
673,264
893,444
199,883
31848

4.15Suggestedalternativeadequacylevelsofpackages

91

4.16KindsofMotivationalPackagesforrespondentsofGCBLIMITED.

17. Comparison of key performance indicators of GCB with other banks.

LOANS AND ADVANCES
YEAR
2006
YEAR 2010
GHS000
GHS000

ECOBANK
162,245.40
496,043

SG-SSB
175,484
298,750

SCB
239,918

467,152

CAL BANK
85,680.1
256,634

GCB
364,539
1,003,682

CUSTOMER DEPOSIT

ECOBANK
335,637.2
1,116,332

SG-SSB
58,046.0
495,327

SCB
445,544
1,092,442

CAL BANK
85,039.2
275,543

GCB
634,573
1,575,281

TOTAL ASSETS

ECOBANK
431,861.2
1,521,229

SG-SSB
123,829
685,912

SCB
711,011
1,667,882

92

CAL BANK
15,700.84
499,751

GCB
779,202
2,112,822

PROFIT AFTER TAX

ECOBANK
10,936.70
60,117

SG-SSB
9,994.40
19,370

SCB
30,748
57,497

CAL BANK
4,550.2
20,251

GCB
35,700
56,100

93

APPENDIXC

SOURCE:GCBDiary2010
ALL THE BRANCHES IN THE KUMASI ZONE IS INDICATED BY
THE YELLOW COLOUR

94