Drivers of Employer Motivation in Banking Sector
Although
the use of technology in banks has revolutionized the working of banks by
transforming them into a technology intensive and customer friendly
institution, yet the importance of human capital is not reduced. Human Resource
Management is important for banks because banking is a service industry.
Management of people and management of risk are two key challenges facing
banks. How you manage the people and how you manage the risks determines your
success in the banking business. Efficient risk management may not be possible
without efficient and skilled manpower. Banking has been and will always be a
People Business (Chakraborty, 2012). It, therefore, follows from this that
organizational goals cannot be achieved without committed and motivated
employers in the organization. In the words of Allen, “poorly motivated people
can nullify the soundest organization (Grewal & Ahluwalia, 2008).
Banks,
therefore, need motivated employers who, through their followers, are able to
produce extraordinary results and bring high value to the Bank. This strongly
underscores the need to motivate the people in charge of the branches of Banks
so that they, in turn, can motivate their staff to face the severe competition
and challenges of the modern banking sector. In order to have a cutting edge in
this area, the right kind of technology is not sufficient – rather a proper
organizational climate and the right people competencies become more critical (Rai &Vinod, 2008).
The
most banks in Sri Lanka now adopting modern technology, including new delivery
channels. But technology no longer remains a major differentiator among banks.
It must remember that the key differentiator amongst the banks in the decade
ahead will be the ability to harness the human Capital and building a
competitive advantage on the strength of their human resources (Rai, Vinod & Ibid 2008).
Middle
Managers
According
to Subramanyam (2019)
Middle managers, in any organization, act as the lynchpin between the
Top Management and the employees by themselves being facilitators, nurturers
and motivators. They translate the organizational goals and strategy of the Top
Management into concrete, comprehensive and recognizable business actions by
performing a clever act of balancing the changing dynamics of the employees.
Middle managers, who supervise the majority of employees, are key to bringing
engagement back (BCG, 2010). Most of the Branch or Middle Managers, many Branch
Managers successfully manage the business of the branch even when they do not
get adequate support and encouragement from the top management in Sri Lanka. A
Study of business performance of these Branch Managers of banks, show they are
able to produce, sometimes amazing but unheralded results, by improving
productivity and performance of their employees.
Role
of Branch Managers of Banks: According to Subramanyam
(2019)
•
Shape and sharpen the skills of the employees to business needs of the bank and
make them perform at their best.
• Act as effective facilitators and nurturers
enabling their staff to provide excellent, courteous and pinpointed customer
service to create ‘a Wow! Customers’ in the branches.
•
Encourage the staff to come out with new and innovative ideas to cut down the
unnecessary procedural delays to further improve business prospects of the
branch.
•
Engage, connect and motivate the employees to work willingly and happily by
adopting a healthy, positive and flexible leadership style.
•Explore
newer business opportunities for the bank branches in order to increase the
bottom line of the bank branches
Drivers
of Motivation: Based on the foundational theory of
motivation and habits of effective people, 8 drivers of motivation have been
identified by Subramanyam (2019), which influence the organizational
performance. Seven of these drivers are based on the Stephen Covey’s famous
“Seven Habits of Highly Effective People”. One more driver - Influence - has
been added, making the total Drivers of Motivation (DM) to eight. All these
eight drivers are detailed as below:
· Power of Informing: These attributes will influence an employee to perform better in an organization.
· Understanding the Mysteries of the Mind: These attributes or trait that facilitates functional efficiency.
· Basic Instincts and its Influence: Basic Instincts are that part of the personality drawn from inheritance or derived from experience, which makes performance easy and effective.
· Employee’s Characteristics: Attributes present in an employee, which are pronounced or exhibited in an operational situation.
· Self-Belongingness: This is an ‘inherent’ desire present in a person which persuade a person to perform better.
· Workplace Habits: These are beneficial practices, which facilitates harmonious, proactive, healthy relationships leading to continuous improvement in the quality of work.
· Acquiring Mastery over Skills: That skills set, mastery of which will make a person stand out from all others in an organization.
· Synergy: The ability to release the potential, but hidden energy, to work together with enthusiasm and coordination, even under adverse and unfavorable situation and discomfort criticisms.
Strategies (Subramanyam, 2019)
· The Top Management support, which is currently happening at the branches, must continue in the form of frequent meetings, performance enabling workshops, short-term seminars, conclaves, and consortiums.
· The Branch managers should be continuously motivated for effective transmission at the Branch level.
· Continuous up-dating of knowledge and skills should be a part of the training centers under each bank.
· New Skills sets, based on usage of internet technology, need to be introduced on a continuous basis.
· Cluster approach to empower Branch managers, in order to train them in the case of decision making may be attempted.
· Regional specific strategies should be evolved to empower Branch managers.
· The personality of Branch managers should be assessed regularly by changes in demographics and psychographics. This will lead to strategic thinking of changing personalities of the Branch managers.
According
to my experience following strategy also used in the Sri Lankan banking sector
effectively to motivate middle level managers.
· Frequent meetings with top management, performance enabling workshops, short-term seminars, conclaves, and consortiums.
· Frequent branch visit by the top management short term meetings.
· Consolidation and strengthening the role of Chief Employee Experience Officer.
· Implementation of leadership development modules
· Implementation of an organization wide ‘Service Excellence’ initiative
· Creation of the organizational competency key to define competency and trainings for identified roles.
· Cutting edge Performance Management System Talent analytics and HRIS
· Implementation of self-development training modules that add value to life in general.
· Rolling out the centralized operations to the network
· Introduced award winning products
· strengthen the environment and social management system
· The Bank has strengthened its credit risk management processes and set up a Centre of Aspiration to improve recovery processes, supporting improvement of this key indicator.
· Implementation of increment system to enhance the performances.
List of References
Akhtar, Jamal and Kushwaha, AKS 2015, Occupational Stress Levels of Male and Female Employees in Public Sector Banks. Indian Journal of Applied Research,5(10). pp.460-462.
Alalade, Samson, Y, Oguntodu, James, A 2015, Motivation and Employees’ Performance in the Nigerian Banking Industry: A Survey of Selected Banks. International Journal of Economics, Commerce and Management. 3(4), pp.1-14.
Kumarasinghe, Sriya, Hoshino and Yasuo 2010, Role and Perceptions of Middle Managers and Their Influence on Business Performance: The Case of Sri Lanka. International Business Research, 3(4), pp.1-16.
Sekaran, U 1989, “Paths to the Job satisfaction of bank employees”, Journal of Organizational Behaviour,10(4), pp.347-59.
Subramanyam, MJ 2019, Drivers of Employer Motivation in Banking Sector - A Radar Design Approach International Journal of Business from Bharatiya Vidya Bhavan's M P Birla Institute of Management, Bengaluru .13(1) pp 48-78. ISSN 0974-0082.
Whetten, David, A, Cameron and Kim, S 1998, Developing Management skills. Addison-Weley educational Publishers Inc., Massachusetts. Fourth Edition. pp.289.
Approaches to motivation an employee could be classified under 3 headings;
ReplyDelete1.Valuing People
2.Providing Financial rewards
3.Providing Non-Financial rewards
If organizations understand and work on these 3 drivers motivation employees could be done without difficulty (Armstrong, 2008).
The analysis of the study Drivers of Employer Motivation in Banking Sector - A Radar Design Approach Subramanyam (2019) shows that factors namely “Fair wages and Promotion”, “Health and other services” , “Work environment” , “Job Specification”, “Prestige and Request” , “Management Policies and Style” , “Non-Cash Benefits”, “Sports” and lastly “Setting and Defining Goals” “Company Policy” , “Quality Supervision”, “Relation with worker” , “personal life”, “rate of pay”, “job security” and working conditions” play a significant role in motivating employees in the banking sectors.
DeleteSnell and Bohlander ( 2007 ) ,have critically mentioned regarding Motivation employees through Compensation in the book Human Resource Management. For most employees pay has a direct bearing not only on their standard of living but also on the status and recognition they may be able to achieve both on and off the job. Also described about Pay Equity, Expectancy Theory and pay and Pay Secrecy. ( Snell,S. & bohlander,G.( 2007 ),Human Resource Management, Thompson Higher Education,USA)
ReplyDeleteIn addition to above, Jay (2019) elaborated the relationship with colleagues, Company’s culture, Learning and development opportunities, processes within the organization will have effect on employee motivation.
DeleteMotivated employees play a significant role in the long-term success of any organization, as they substantially contribute to the overall organizational effectiveness and performance. Such employees provide
ReplyDeleteorganizations the sustainable competitive advantage. Therefore, motivating employees becomes critical to individual performance and organizational productivity (Subramanyam, M. 2019)
Malika, as highlighted by Lai (2011), the importance of keeping employees motivated is not only limited to maintain the organisational reputation but also to it is vitally important in the aspect of employee retention. In garment industry employee turnover is significance high (EDB, 2016). Hence these motivational theories should take in to practice to counter the said problem.
DeleteKazaz and Ulubeyli (2007) describes Economic factors and socio-psychological factors affect to the motivation. economic factors are timeliness of remuneration; amount of remuneration; social insurance; incentive payments; job security; and union membership. socio-psychological factors are work discipline; health-and-safety conditions; work satisfaction; creating competition; relations with workmates; giving responsibility; sharing problems and their results; social activity opportunities; cultural differences; worker participation in decision-making.
ReplyDeleteI agree with above post. Along with them, intrinsic factors such as; recognition, skill variety, trust, fairness of treatment, work life balance, meaningful work, empowerment and task significance plays a part in employee motivation (Caroline, 2014).
DeleteAccording to (Subramaniam 2019), the increasing financial rewards have the potential to drive positive employee behaviours and can motivate staff.
ReplyDeleteThank you, But Rewarding employees, who do not fall under the top performers category, depends on their intrinsic or extrinsic motivation triggers. Myriad IT companies, provide monetary benefits and onsite opportunties. It is not imperative that only the best get the career growth, care through training, skip level meets and the compensation to keep them motivated. Stay interviews on this chunk of employees may reveal more (Chan, 2011)
DeleteAs Kalimullah (2010) suggested, a motivated employee has his/her goals aligned with those of the organization and directs his/her efforts in that direction. In addition, these organizations are more successful, as their employees continuously look for ways to improve their work. Getting the employees to reach their full potential at work under stressful conditions is a tough challenge, but this can be achieved by motivating them.
ReplyDeleteYes, Motivation is an essential factor for managers because it, beside with capability and environmental factors, determines individual enactment (Griffin, 2012).
DeleteBuguza (2013) recaches on impact of employee motivation of banking sector in Tanzania and implies that management should approve of new motivational packages which influence performance at the bank. Loans under low interest, Promotion are the key area where the bank should focus in order to improve job performance. This suggestions may can apply to our systems also.
ReplyDeleteMost of the empirical studies found motivation and job satisfaction to be positively correlated, while hostile work environment is seen as a demotivational factor in the work place (Babalola & Nwalo 2013; Kian et al 2014; Oni-Ojo et al 2015).
DeleteAccording to MacMillian (2007) what motivates an individual is difficult to determine as the preferences of vary from one individual to other, thus one of the biggest blunders made by managers is overestimating or underestimating the mind of their employees.But inorder to get efficient and effective work from the employees it is necessary for the managers to determine what are the drivers or factors that motivate emlployees to give their full potential (Hahn and Klenier 2002, Westover 2008). Thus a great amount of time is spent by managers to determine how the employees are motivated but even with such a hard input, they still feel a lack in getting an apparent picture of what motivates their employees (Ahmad el at., 2014).
ReplyDeleteOrganizations core potential lies in its motivated and
Deletesatisfied employees who consistently contribute towards organization goals and objective. Effective HRM system could be a great deal of assistance in keeping employee morale high
(Kumar and Garg, 2011).
There is a positive relationship between job participation and employee commitment, and there is also a positive relationship between employee motivation and commitment. Banks can use incentives as a key component in improving the performance of their employees (Iqbal, 2013).
ReplyDeleteYes, Also Smith and Rupp (2003) stated that performance is a role of individual motivation; organizational strategy, and structure and resistance to change, is an empirical role relating motivation in the organization.
Delete