Background to the Study

Armstrong (2006) opines that Human Resources have been tagged the most valuable assets of any business organization. Hence, for an organization to succeed there is the idea resource and human resource to be capable of moving the organization towards a competitive advantage.

Performance in the banking industry therefore, concerns with employees and organizational performance development through which better result can be achieved by understanding and managing performance with an organization agreed framed work planned goals, standard and competency requirement. It aims at establishing a high responsibility performance culture in which individuals and teams take responsibility for the continuous improvement of business process and for their own skills and contributions within the framework provided by effective leadership.

Strategic planning on the other hand project changes in the scale and types of activities copied out by the organization.

Knight (2000), identifies the core competencies the organization need to achieve its goals and therefore its skills requirement. It determines the vision, mission and goals, of the organization and the strategies to achieving those goals.

Strategic planning therefore entails the follows:

1)           To get stakeholders to be more highly committed to performance outcome/goals of organization.

2)           To link budget and resources requirements to perform outcomes.

3)           Organization goals and objectives are integrated with human resource performance and the demands of the external environment.

The assumptions underpinning the practices of strategic planning within an organization as key to performance in the banking industry cannot be over-emphasized as it influences the business strategy drawing attention to ways and manner in which employees could be developed and deployed more effectively to further the achievement of business goals as well as impact positively on their performance to ensure that employees are capable of making the necessary contributions.

Moreso, Knight (2000), states that strategic planning take broad and long term view about how human resource policies and practices can support the achievement of business strategic. It reflects the analysis of the vision, role statement and mission statement including the analysis of the environment, strength, weakness, opportunities and threats (SWOT), planning therefore, should be done strategically since long term thinking is required to effectively in the banking overtime. If you consider the complexity of any human resource, it seems obvious that the process needs to be strategic in nature which is geared at enhancing the allocation of time and resource in achieving organizational goal.

The importance therefore of studying the impact of strategic planning on employees performance in the banking industry cannot be measured, as it makes it necessary to understand the need for top level in the banking to consider employees impact and contribution in terms of skills, potentials and knowledge to the success of the organization at large.

1.2    Statement of the Problem

The choice of this topic “The impact of strategic planning on employees’ performance in the banking industry”.

Basically, human resources have gained a permanent role within the organization, it is pertinent to note that unless policies and programmes support employees performance management, the success of the organization (Banking industry), may just be a façade.

This research work will therefore address the following problems:

i)            Problem of margin compression

ii)          High operating expenses

iii)        Activities of new competitors

iv)         Challenges of channel disruption

v)           Improvement of the customer experience

These and other related problems are what the researcher intends to investigate. It is also pertinent to state here that one of the fundamental problems of employees’ performance in banking industry with reference to First Bank Nigeria Plc, Kaduna main branch.

However, opportunities still holds for firms to change this situation, which would be looked at the aims of trying to recommend the impact of strategic planning on employees performance in the banking industry (First Bank main branch).

1.3    Objectives of the Study

The following below are the objectives of the study:

  1. To assess the impact of strategic planning on employees’ performance.
  2. To proffer solution and recommendation to organization in the importance of strategic planning on employees’ performance.
  3. To serve as a guide for organizations in their strategic planning or in strategic implementation
  4. To highlight some of the strategic planning to help the organization improve on employees performance.

1.4    Statement of Hypothesis

The following hypotheses are formulated by the researcher to serve as the framework for drawing conclusions:

H0:    Strategic planning has no significant impact on employees’ performance in the banking industry.

H1:    Strategic planning has a significant impact on employees’ performance in the banking industry.

1.5    Significance of the Study

The significance of this study is an effort to present a highlight of strategic planning on employees’ performance, which will ensure improved work performance of the employees in the banking industry. It can also be applicable to other private and public organization, this work would also be of great help and importance to future researchers. It is also paramount because it is a pre-requisite for the award of Higher National Diploma (HND) in human resource management (HRM).

Moreso, the important of this research work will go a long way to improving managerial and employees performance, strategic repositioning, change in managerial and employees attitude towards work and gaining a highly competitive advantage over equally competitive and commercially oriented firms (financial institutions).

1.6    Scope of the Study

This research project is basically to expanciate on the topic “The impact of strategic planning on employees performance in the banking industry”, case study of First Bank Nigeria Plc, Kaduna main branch. This research will help financial institution to achieve highly competitive advantages in the external and internal environment.

The investigation will cover from 2005 – 2013. This inquiry will try to identify the staff strength as well as their operational areas. This research work base on the strength shall take 5 months to be completed.

1.7    Limitations of the Study

i)            Inadequate literatures that should be used for the research work.

ii)          Financial constraints is one of the difficulties faced by the researcher.

iii)        Other challenges beyond human control such as sickness, insurgency, strike etc were also encountered by the researcher.

iv)         Tussling with both relevant and irrelevant materials.

v)           Inaccessibility to certain confidential materials

1.8    Historical Background of First Bank Nigeria Plc

First Bank of Nigeria Plc for over a century has distinguished itself as a leading financial institution and a major contributor to the economic advancement and development of Nigeria. The bank was incorporated as a limited liability company on March 31, 1894. With head office in Liverpool by Sir Alfred Jones, a shilling magnate.

It started business in the office Dempster and Company in Lagos under the corporate name of the Bank for British West Africa (BBWA). With a paid up capital of 12,000 pounds sterling, after absorbing its predecessor, the African banking corporation, which was established and worked closely with the colonial government in performing the traditional functions of a central bank, such as issue of spec in the West African sub-region.

To justify its West African coverage a branch was opened in Accra, Ghana 1896, and another in Freetown Sierra Leone in 1898. These marked the genesis of the bank’s international banking operations. The second branch of the bank in Nigeria was in the old Calabar to Northern Nigeria.

In order to reposition and take advantage of opportunities in the changing environment, the bank had at various time, embarked on restructuring initiatives. In 1957, it changes its name from Bank of British West Africa. In 1969, the bank was incorporated locally as the Standard Bank of Nigeria Limited in line with the Companies Decree 1968, changes in name of the bank also occurred in 1976 and 1999 to First Bank of Nigeria Limited and First Bank of Nigeria Plc respectively. In 1985, the bank introduced a decentralized structure with five regional administrations. To further enhance the bank’s operational efficiency, this reconfigured into sixteen areas offices in 2003. In view of the following, it was therefore a national progression when in 2001, the bank began the process of transforming its corporate process which began in earnest in 2001, gained momentum in 2003 and was launched in April 27, 2004. With the introduction of new corporate identify. First Bank of Nigeria Plc got enlisted on the Nigeria Stock Exchange (NSE) in March 1971 and has won the NSE Presidents Merit award eleven times for the best performing financial report in the banking sector.

In line with the bank’s mission statement “remain true to our name by providing the best financial services possible and its brand essence”, dependably dynamic the bank will consistently transform itself as it forges ahead in its second century of qualitative banking of the nation (en.wikipedia.org/wiki/First_ Bank_of_Nigeria).

1.9    Definition of Terms

  • Human Resources: Human resources are human beings who are characterized by creative ability to make contribution as human capital or intellectuals in enterprises and societies and as a result a traditional role of specialist parties who claim that value is primarily created by their activities and accordingly justify a longer claim of profit reliefs from these enterprise or societies.
  • Strategic Planning: Is an organizational process of defining its strategy and making decisions and allocating its resources to pursue this strategy including its capital and people, that is human resources.
  • Organization: Organization are primarily complex goal seeking units which in order to survive must accomplish secondary task. Organization is an assemble of experts and non-experts alike for the purpose of achieving a common goals and objectives.
  • Objectives: Objectives are specific goals which are established for the organization as a whole and requires cooperative effort between all levels of management and their subordinate in order to achieve the set goals and objectives.
  • Performance Management: This is defined as a systematic process for improving organizational performance by developing the performance of individuals and teams.
  • Impact: A strong impact or effect on something/someone. That the powerful effect that something has on somebody or something.