Supervision and Instructional Leadership on Effective Bank Management

SUPERVISION AND INSTRUCTIONAL LEADERSHIP ON EFFECTIVE BANK MANAGEMENT

Banking act (1969) defined banking, as the business of receiving money from outside sources as deposit inspective of the payment of interest, and grant loans and acceptance of credits or the purchase and saves of securities for account of others or in assumption of guarantees and other warranties for others or the effecting of transfer.

And other transaction as the ministry make on the recommendation of the central bank by order published in the federal gazette design as banking business.The Nigeria Banking system is made up of Central Bank, Development bank, People Bank, Commercial bank etc. The people banks and community bank recently developed or established by decree of the federal ministry government. Banking as a profession has been exist for many decades now but unfortunately, there was no generally accepted statutory defective of a bank until 1969.

(1982) described bank as a person or company carrying out the business of receiving money and collecting draft from customers subject to the obligation of honouring cheque drawn upon them from time to time by customers to the extent of the amount written on the cheque or in the account.

The banks are closely monitored and requite by the government through the central bank of Nigeria. This is the ensure that they render service to their customers in a manner consistent. Safe bank is extracted with honour, reputable and hard working personnel. Function of bank management is decision making, the rational selection alternative course of action.
It is at the core or point of planning; A plan cannot be said to extent or exist unless a decision has been reached (Koontz 1984)

The personnel management of the bank establishes internal control procedure for the effective discharge of the major function in order to attain their corporate objectives. In closing this, special attention must be given to communication problem. The structure of the bank organization should have a line and staff structure, so that there will be flow of information from the top management to the lower level. The lower staff can give advice to the top level management whom might accept it or reject it. The free flow information will be a real basis for effective decision making.

Therefore, a need to establish a follow up department to know whether the action is going according to plan and polices, if not correction can be made before it is too late. It is in the light of the above factors that the management function of controlling becomes very desirable.

1.2    STATEMENT OF PROBLEM
Despite the creation of supervisor unit or department in the bank for internal control, it is not clear on the adequacy of human and non human resources for efficient operation of banking industry. This is because bank managers still grant credits (loans) beyond their power limit without collateral. Secondly, there are cases of bad debts resulting from loan given to customers that has not been recovered. Hence the CBN (1990) prudent guideline has not been obeyed and the effect is reported loses or minimal profit. Thirdly, there have been cases of computer frauds, defection and outright removal of physical cash by some employee and outside, this has created unbalanced books, keeping and records.

1.3    PURPOSE OF THE STUDY
The sale purpose of carrying out this research is to identify the impact of supervision on effective bank management in Nigeria economy, particular reference will be made to United Bank of Africa Plc. (UBA) station road, Enugu Supervision the bank manager can now monitor their subordinate and also receive advice from the lower staff of the organization. The bank management has now introduced supervision department. The purpose of this study is to improve the speed or rate of supervision in the banking system thus reducing he cash or money bring lose.

1.4    SCOPE OF THE STUDY
Due to the fact that it is difficult to monitor fraud, etc; it is now wise to develop effective supervision in a banking system. The research has been limited to the creation of effective supervision in United Bank of Africa Plc.

1.5    SIGNIFICANCE OF THE STUDY
The result of this project work may help create the awareness required for effective and efficient auditing of the bank on a regular basis or the supervision from this project work to embrace commitment and objective reporting for accurate record keeping. It is hope that report from this work may draw the customer and the bank together.

The result of the project will help worker to deserve policies and procedures of the banking ethnic to strengthen the job security of staff for efficient growth and development restructure. The suggestions made will earn the bank more customer co-operation among staff trust and confidence on the follow workers to achieve the set objective of the banking industry.

1.6    RESEARCH QUESTION
To guide this study, four (4) research questions are formulated as follow: –
1.    To what extent are human and non human resources adequate for efficient inspection in the banking system?
2.    What are the control measures against the bad debt in the banking system?
3.    To what extent has bank provision against customer’s fraud being checked?
4.    To what extent are the workers being assured of job security and satisfactory

1.7    LIMITATION OF THE STUDY
In this course of the research of the impact of supervision of effective bank management, the problem encountered includes the following

a.    Finance: – This was however, a set bank to the actualization of this project bearing in mind the financial capacity of the student, as a result of present economy situation, in the country, the researcher encountered serious, most civil servant in Enugu – State were not paid salary and as such no financial support was made by anybody.

b.    Time: – It is an uphill task for the researcher in the writing of the project. It was not easy in combining the academic studies with the research work. finally the semester was very short and this has hindered to a great extent the collection of information and data because of lack of time.

c.    Biased Respondents: – Most of the question asked were not effectively and efficiently answer because of security reasons, due to high competition of the bank business with other banks’. Further more, some of the question were not answered from the original source some officials contacted were unwilling to say something or anything unless the researcher got clearances from the top management of the bank. These made them to be afraid to take the researcher were necessary data for this study are kept, because of security reason.

1.8    DEFINITION OF TERMS
i.    Supervision: – The act of supervising, to keep watch over a job or activity or the people doing it as person in charge of other.
ii.    Management: – As a social process entice the responsibilities for an effective planning and regulations of operation of an enterprise in fulfillment of a given purpose or task such responsibilities involve the following.
a.    Judgment and decision in determining plan and progress against plan.
b.    The guidance, integration, motivation and supervision of personnel composing the enterprise and carrying out its operation. Broch (1975).
iii.    Banking: – Bank as a person or company carrying on the business of receiving money and collecting draft from customers subject to obligation of honour cheque drawn upon from time to time by customer to the extent of the amounts available on the current account. Hart (1982) effective; producing the desired result, for the set goals and objectives.

REVIEW OF RELATED LITERATURE
2.1    CONCEPT AND PURPOSE OF SUPERVISION
The concept of this project is design toward providing good leadership in improvement of group services. A programme to serve education, co-ordinate and guide continued growth of workers; Oliver (1976).

He further opinion that in banking industry, both individually and collectively assistance in the development of a better instrument and bearing and service situation and a mean of maintaining existing programme of institution as well as improving them.

Hanes, (1978) categories the supervisory tasks as preliminary operational and development (PD). Hanes, (1950) Keriezzrich, (1962) Mesher, (1972) and Oliver (1976) described a supervisor as a person who comes in all professional contact influences the quality of performance and change.

They further agreed that the supervisor through their experience provide an intellectual stimulating perm for the change of concept and technical skills and a confronting participants which with alternative roles, such leadership roles has its source of authority from the board delegation, fellow workers, special group and government; Oliver (1979). He further listed out types of supervision as follows: –

i.    Democratic Supervision
ii.    Training and guidance supervision
iii.    Laisser-faire supervision
iv.    Coversine supervision
v.    Inspection

Oliver (1976) reiterates that the techniques of supervision include the following
i.    Office observation
ii.    Visits to office
iii.    Problem solving
iv.    Staff meeting
v.    Demonstration service
vi.    Individual conference
vii.    Workshops and seminars
viii.    Clinical supervision interaction between the workers, supervisor during instructional period. Etc.
He further opinion that for all these techniques, the supervisor should be able to understand the few general roles expected of him such as
A.    Leadership Function
B.    Co-ordination Function
C.    Resource Function
D.    Service Function

Leadership function is a democratic method that involves: –

•    Exerting initiatives
•    Helping in setting goal
•    Change agent
•    Follow up group commitment
•    Evolution
•    Stabilization
Co-ordination function involves the task of local thing and organizing resources and making them available to those who need them.
•    Resource function is where the supervisor himself is a resource person from whom knowledge is taped. He is will skilled strained and experienced and all are place at the disposal of the management.
•    Service function refers to where the supervisors acquaintance with the result, current experience. Professional expert and skill in human reaction helps in the effect of solving problem facing activities and development. He also interprets aims and procedures and resolves official programmes to the public.
Mesher (1972) and Oliver (1976) Affirm that a good supervisor should be courteous, gracious friendly, good listener, helper, time and skillful.

They further gave sit personality trait of a desired supervisor.

i.    Concept of human worth and dignity
ii.    Recognition
iii.    Participation
iv.    Freedom
v.    Co-operation
vi.    Communication

•        The concept of human worth and dignity shows that in democracy, man is considered as of high value and as such supervisor should realize that others can make useful suggestions. This shows that two head are better than one.

•    Recognition of one worth is the beginning of psychological disposition and wisdom e.g a child who seek for recognition from his parents, peer group etc. hence during staff meeting recognition of ones worth will provide fro satisfaction and which build status participation is democratic support of people to be effect rely committer to such organization. It is through participation that 2 child initially becomes part of the society. Thus this brings administrative convenience with efficiency in banking industries anywhere in the world.

•    Freedom to work, think, learn, explore, invent to make mistakes and correct some must exists, if actual service is to occur. This underline individual growth, development, self acquisition and leadership growth, self actualization and leadership. This shows that rule of leave and its feature must be reported to be bear. Having notions of reality, quality and liberty as the rosary of freedom
•    Co-operation is what many people call democratization approach, which is bared upon the idea of human worth and dignity. This implies both follower-ship and leadership.

•    Communication: – This is very important in banking industries and it includes word symbols, structure postures and attitudes. Ability to communicate effectively is the major determinant of the success of human and social activities. The purpose of those functions is to guard against achieving effectiveness without achieving efficiency and vice versa.

•    Ogili (1993) reiterates that the significance of such derived supervisor is to many effectiveness with efficiently so as to achieve the following: –
a.    Achievability of balance in effectiveness & efficiency
b.    Ability to win staff participation or capitalize in their service
c.    Promotion of good working relation through the cultivation of desirable temperament.
d.    Adoption delegation as supervisory strategy in which one can be professionally in touch despite his physical remoteness in all sectors of the establishment.

Historically supervision started in Boston USA in 1909 when school built grew to an extent that after monitoring the activities a discovery of effective method surfaced. But with the integration of organizational and personal dimension of social system in a more realistic and practical forum. This human resources supervision demands that you trust your staff, delegate duties share idea through staff meeting etc.

It also view a job satisfaction as a means of measuring effectiveness and believe, it is only when one feels a sense of accomplishment that he feed satisfied, self control, self ability and direction for realistic growth capability and insight. Ogili (1930)

2.3    ORGANIZATION AND MANAGEMENT OF SUPERVISION  IN BANKING INDUSTRY
A supervisor is an overseen and a person responsible for the well being of his staff, puts his men in good heat, a captain of his term not a visitor from higher authority. Paroton (1984) he furthers affirmed that supervision is more than leader. A leader is one who shows the way by going in front “or” together with others in an important idea movement or action.

The element of going together with is to be preferred in going to the front since the later might indicate a leader as one who leaves his colleagues behind, thus reducing them to mere followers. Where as the former implies a sharing of ideas and view points especially in an age of specialization where the supervisor must have the intellectual humility as necessary datum in dealing with staff who are expects in their professional area; Cogan (1973).

Historically United Bank Plc was established in Nigeria in 1917 as Barclay bank Doc/ Dominion, Colonial limited. It has been as subsidiary of the overseas which later changed it name to Barclays bank until the banking decrees of 1960, when it was locally incorporated with the Barclay bank of Nigeria Ltd with its head quarter at 40 Marina Lagos. This name was again changed in 1979 by its board of directors as 80% Nigeria owned and 20% Barclay’s bank instructional.

The 20% shareholding of the bank was later sold to the Nigeria public and their reflected in the current mine of the bank to united bank of Nigeria plc. Although it was the federal government action of ordering parastatal and public corporations to withdraw their account from the bank because of a statement credited to the chairman of (BBI) purportedly supporting apart in South Africa, since the establishment of the bank more than 10 years ago, it has lived up to its logo of been a big, strong and reliable bank.

The areas it has distinguished itself include the winning of 7 years of the Nigeria stock exchange merit award for quality and depth information in their annual account report, it is also the first bank to record one million Naria in its saving account balance.

Today, the bank has more than twelve thousand staff and has a network of branches totally two hundred and forty four (244). The bank has also introduced pastime in terms of profiteering and has also introduced computer for improving customer service. The organ gram of the bank will be attaches at appends.

Deputes, et al (1970) and Howard (1978) stressed the fact that effective strategies in policing banking industry must involve feathers of supervising
1.    Understanding
2.    Open Communication
3.    Mutual Trust
4.    Mutual Support
5.    Effective Conflict Management
6.    developing and selection appropriate team concept
7.    Utilizing appropriate member still
8.    exerting appropriate leadership disposition

They further contended that psychological comfort resulting from the supervisory efficiency includes the following for growth and development of banking industry

i.    Able to get along
ii.    Pragmatism
iii.    Service oriented
iv.    Dedication to duty
v.    Modesty and rational
vi.    Respected etc.

Harris (1973) opinion that one cannot use the tools of yesterday job and hope to remain in business tomorrow that is why Harris further affirmed that banking industry need (OPD) operational task, laity toward positive direction.

Preliminary task involves essential tasks, like prevailing staff, developing schedule and provision of facilities. This is because the tomorrow will planned for yesterday is today. Development task involves arranging for in service education on the staff, co-ordinating role, evaluating activities and offering functions is to guard against achieving effectiveness without achieving efficiency and vice versa.

Ogili (1993) reiterates that the significance of such desires supervisors is to achieve the following
1.    Achievability of balance ineffectiveness and efficiency.
2.    Ability to win staff participation or capitalize in their service
3.    Promotion of good working relation through the cultivation of desirable temperament
4.    Adopting delegation as a superiority strategy in which one be professionally in touch despite his physical remoteness in all.

2.3    DEVELOPING EFFECTIVENESS IN SUPERVISION
Anikpo, (1993) admitted that for effective supervision, there must be effective communication.

The steps and characteristic of effective communication are as follows: –
1.        Keep it simple
2.        Write as much as possible
3.        Repeat key term often
4.        Explain why indecision are made
5.        Avoid notices: They are to audience non specific
6.        Briefs lower supervision thoroughly
7.        Never allow new information to come from other     source than down the line
8.        Set up regular feedback meeting
9.        Set up regular communications down meetings
10.    Put communication in everyone’s performance     appraisals
11.    Don’t allow in consistency of value
12.    lead by example
13.    Walk around to check progress and allow success.

Harris (1975) affirmed that motivation is supervisory effacing and give guideline for effective supervision in hospitality of banking industry as follow: –
i.    Recognize and base rewards on performance naturally high performance can bring financial reward, or some worker but a quiet word of praise or thinks an extra half- day of, it related to performance; it can also help to encourage and motivate.

ii.    Practice loyalty towards subordinate: – Most of the supervisors grumbles about loyalty of workers but never cared to see the mistake of a subordinates and his own. Reporting to 2 higher authority is never the best instead carrying the cane and standing loyalty from them.

iii.    Be employee centered not task centered: – Human relation are not a question of being nice to people rather being interest in them. Hence, speaking to peoples or your staff every day with funniness politeness as well as sad dressing each by name best liked by him.

iv.    Be concerned about employee’s safety and welfare: – Remember to say well in any compliant of ill health “health first”, your concern about the health and safety of staff makes you human and empathetic.

v.    Meet individual needs: – If motivation is to be sufficient to give satisfaction at work such as: –

a.    Sense of personal achievement in the job one is doing.
b.    Feeling that the job itself is worth doing as in checking challenging and demanding the best of responsibility from him to match the capacity.
c.    Adequate recognition by others for his effort especially reflecting his pay packet.
d.    Have control are aspect of the job which have been delegated to him.
e.    Should have feeling of advancing in expressed and ability of the job one is doing. According to

Harris (1975) an effective supervision is one who
1.    Give subordinate feedback on their performance
2.    Looks after the needs and welfare of his group
3.    disciplines by persuasion rather than punishment
4.    Allows particular, group discussion and decision making (About desks in hand)

They further stressed that the best supervisor is the one that
i.    Stick to the knitting ie stay with what they know best
ii.    Operate a smile form of hierarchies to allow communication.
iii.    Are all hands on value driven keep close to close to the employees and encourages strong, corporate identity with form leadership.

iv.    Allow autonomy entrepreneurship ie structure themselves to allow employees independence.

v.    Should act instead of over-analyzing options.

vi.    Are simultaneously loose and light ie have dedication to central value but tolerate latitude surround those value

vii.    Achieve productivity through people ie instill a sense of shared purpose into employees; thanking these (8) eight criteria by Peter and Waterman (1989) reiterated that people and Athos found seven features the (755) prevalent in successful Japanese Companies as: –

1.    Strategy (close to customers, stick to knitting)
2.    System (Ranks and value driven )
3.    Structure (Simple form)
4.    Style (Autonomy entrepreneurship)
5.    Skills (simultaneous loose tight)
6.    Shared purpose (productivity through people)

They further asserted that the main steps of ensuring efficient and effective supervision are specialty industries which include: –

i.    Encouraging innovation: – Don’t punish failure, but try to learn from it.
ii.    Acting to touch: – Wander about, use simple methods of control to look for feedback and work in small task groups
iii.    Staying close to the customer: – listens to them, innovate with them, don’t break promise’s showing your own commitment crest and delegates share information and recognize, there is very little that can’t in still unique values provide clear vision, measure performance, having fun, celebrates success and find champions.

2.5    DUTIES OF SUPERVISOR
Supervisors are managers of operating employees. They are usually well below middle managers in executive authority. The frequently supervise work that is not complex and that rarely requires longer – term policy decisions.

They rely on rules and procedures. The received daily reports on direct and indirect labour, material usage, scrap, production counts and machine down time.

The supervisor is expected to deliver according to objectives set for him by other. Supervisory role consists of putting the right man in the right place, seeing that he is suitably rewarded for his efforts, giving out all the information needed, making decision on the innumerable occasions which are not covered by the standard practice and continuously inspiring all his term to work willingly and well.

2.5    NEEDS FOR SUPERVISION IN BANKING INDUSTRY
Supervision can be closed or general. It is closed when supervisor does his job without allowing the workers know that he is being supervised.

In genial supervision every subordinate knows how he will be supervised and in most case, the results are made known. Agbo (2000)
He affirms that closed and general supervision are necessitated by certain factors some of which are: –

i.    Nature of the work: – The nature of the work being performed determined whether the supervision will be closed or general.

ii.    Intelligence of the worker: If the workers are bright and are willing to accept responsibilities general supervision can be applied but if they are new initiative closed supervision is most desirable.

iii.    Nature of the organization at all level while manufacturing and financial institution may prefer a combination of closed and general supervision.

iv.    Urgency of the job: – When the completion time is fastly required or the work is urgency needed, may be a customer will be lost if the job is not urgently completed either closed or general supervision or a mixture of both may be applied.

v.    Type of supervisors: – There are supervisors who naturally would like closed supervision while some prefer general supervision. No matter the time and effort required they would always like to lean more towards their preferred style.

2.6    SUMMARY OF THE RELATED LITERATURE
Dynamic supervision in banking industry dreads conscientious effort to discontinue existing practices that are less desirable for desirable change.

This strategy in banking industry creates competence profit which works on the symmetrical best, despite the fact that most of the supervisors and managers are not excellent some are considered competent or adequate at best there is need for every professional to expose his professional equal or colleagues so that their criticism can stimulate him a improve performance.

It is dishearten that despite the increase in banking industries of which supervision in the industry has made significant mark. This is because there are never of fraud here and there are extents to which it creates embracement and is veined as a betrayed to hope unless something is done on it; Drucker (1974).

4.1    DATA PRESENTATION AND ANALYSIS
The essence of this chapter is to present and analysis the finding of result revealed by the response to the questionnaires and personal interviews administered in other works, it the findings that would help in drawing meaningful confusion and possibly make some recommendation were necessary.

In this research work, therefore data collected through the administering the collection of questionnaires in tabulated and analyzed. It should be noted that employees of the chosen organization provided the information, which has been analyzed, it have to arrive at a logical conclusion of the study; the standard organization of Nigeria.

5.1    DISCUSSION OF RESULT FINDING
In this section, major finding will be discussed for clarity table 4.1 reveals that there are males than females in United Bank of Africa (UBA) Plc Enugu. This suggestion that domestic role to woman, few of them especially the married ones are preferable.

Tables 4.2    indicates that majority are married. This may not be supervising because as wages are higher and the condition of services are also good, the tendency of the fulfilling certain social obligation in table 4.3.

It shows the majority of the staff are holders of WAEC/ GCE, this suggest services of middle level manpower to save cost hence enough orientation are given to them.

As the evidence in table 4.4, the majority of the staff had served the bank for upward of (6 – 10) six to ten years, followed by those within 11 – 15 years, this analysis proves that the United Bank of Africa (UBA) is from there, and have experienced staffs hence the bank was not found wanting by the central bank of Nigeria (CBN) like other bank.

The data on table 4.5 indicate vividly that of all the resources items listed only regular payment of allowance and existence of intercommunication are adequate; this analysis that resources in it entirely are not adequate.

Table 4.6 reveals that last majority of staff showed that bad debt occurred some time. This could be part of percussion one takes as a resources of previous experience lost in the bank.
This could be the reason the bank is not experiencing bad debt always. It also indicates that computer fraud has not been experienced in the bank as claimed by the majority. It is possible that the effect of computer fraud is enormous and adequate care should be taken to avert it. The higher remuneration ranked highest out of the item listed.

On the extent of the bank check, computer fraud. This analysis indicate that the strategy of United Bank of Africa (UBA) checking computer fraud is not enough, and requires more efforts if they are to survive the computer age. Also the majority of the staff agreed that undue interference job/position insecurity of inspectors affect the objectivity report and recommendation they made. This is possible because most of the workers in the bank come in through God Father and adverse report on them may not be taken serious rather the report will turn to be lamed and perhaps suffer for making such report.

Hence the inspectors must be respected if honesty should be involve in banking industry. Lastly all the listed items on how job security and satisfaction are assures the majority viewed claimed that only payment of salary and allowances and regular bases and house, vehicle loans, are alright. This analysis indicate that all is not well with the bank, it should be intensify the effort to ensure that other items are considered appropriately in the interest of efficiency and effectiveness of the staffs and the growth of the bank.

5.2    CONCLUSION
This study is necessitated by the societal demand on the banking industries. This is because it appears the security is loosing confidence in the financial institution base on (1994) experience, staff however had dynamic suspicions in banking demands efforts to discontinue existing practices that use desirable for desirable change.

The strategy competence profile more on sequence for the combined realization of objectives, despite the fact that most inspectors are not excellent, some are considered competent or adequate at best. There is need for every professional to expose the work of the professionalism on insecurity of the equal so that criticism can stimulate improvement. This is to restore the lost hope on banking industry by an average Nigerian.

5.3    IMPLICATION OF THE RESEARCH FINDINGS

This section of the research will present the summary of the finds as follows: –
1.    Male Staffs are mandatory in United Bank of Africa (UBA) Plc Enugu.
2.    Greater majority of staff are married
3.    Majority of the UBA staff are holders of WACE/GCE followed by HND/BSC holders.
4.    Most of the UBA staff have served for up ward of sex to ten years (6 – 10), followed closed by those between eleven to (15) years of services.
5.    Majority claimed that regular payment of allowances by intercom services in the office are all right.
6.    Vest majority affirmed that bad debt occurred some times.
7.    Most of the staffs agreed that inspectors department insures compliance to rules before loans are given.
8.    Majority of the staff of UBA said that they have experienced computer fraud.
9.    Majority of the respondent suggest that higher remuneration to rank first with 2 mean of 3.0.
10.    Majority of the staffs indicates that undue interference and job / position insecurity of insepectors affect a objectivity report and recommendations they supply.
11.    Majority of the staffs claimed that non implementation of the previous report affect inspectors present functioning.
12.    Giving the list of items on job security and satisfactory assurance, the majority that only regular payment of salaries and allowance followed by house loan and vehicle advances meet the required level.

5.4    RECOMMENDATION
With regards on the summary of findings on discussion with relevant conclusion drawn from major findings the following recommendations are made: – The banking industries should ensure significant contribution to the growth of the bank.

1.    Motivation of workers by giving them recognition and basing reward and performance.
2.    Loyalty must be practical towards the subordinate, this is because if you demand loyalty, you must show it first so that they could be carried along and should by this check all the check able ages without complaints.
3.    Staff and welfare should be adequately insured
4.    Meet individual needs if motivation is to be sufficient to give satisfaction at work.
5.    Leadership function co-ordinating resources and services are vital to the development of modern banking industry.
6.    In services training should be giving to staffs on regular bases to get a breath with demands of the time.
7.    Seminars, staff meetings, individual conferences, demonstration services, provision of office bulletin and visit to staffs create knowledge and make people closer.
8.    Involve delegation as a supervisory work to be in professional touch, despite physical absent in all section of the work.

SUPERVISION AND INSTRUCTIONAL LEADERSHIP ON EFFECTIVE BANK MANAGEMENT